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HomeMy WebLinkAbout051517_cabs01CAB 615 Sheridan Street )AMM Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org Public Healt May 9, 2017 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: May 15, 2017 SUBJECT: Agenda Request: Authorization and Concurrence for Gallagher and Holt Properties on the Big Quilcene Floodplain STATEMENT OF ISSUE: Environmental Health requests Board approval of an Authorization and Concurrence document for the Gallagher and Holt Properties located on the Big Quilcene Floodplain, APNs 702243019 and 991200407. ANALYSIS/STRATEGIC GOALS: Floodplain protections are necessary to ensure adequate riparian habitat for salmon and to prevent or ameliorate the impacts of flooding. Through the Hood Canal Coordinating Council Lead Entity (HCCCLE) for Salmon Recovery process http://hccc.wa.gov/content/salmon-recover, key properties have been identified for acquisition by Jefferson County and its partners. Environmental Health, in partnership with Public Works, requests approval of an Authorization and Concurrence document to initiate negotiations on the Gallagher and Holt parcels located on either side of Rodgers Street north of the Big Quilcene River. The properties total 2.89 acres. One single family residence and other improvements will be relocated or demolished subsequent to acquisition. Additional acquisitions are anticipated on the Big Quilcene River as part of the overarching effort to complete and implement the Big Quilcene Restoration Plan under development by the Hood Canal Salmon Enhancement Group in partnership with Jefferson County, tribes, stakeholders and local residents. FISCAL E"ACT/COST BENEFIT ANALYSIS: Acquisition of the Holt property is funded by RCO #13-1221 and match has already been satisfied; Acquisition and cleanup of the Gallagher property is funded by RCO # 15-1189. Match is provided by the JC Department of Public Works Quilcene Floodplain Acquisition Account #5533Q.61.000. Community Health Developmental Disabilities 360-385-9400 360-385-9401 (f) Always working for a safer and healthier community Environmental Health Water Quality 360-385-9444 (f) 360-379-4487 RECOMMENDATION: Review the attached valuation information and consider approval of the Authorization and Concurrence document for the Gallagher and Holt properties. REVIEWED BY: 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 Floodplain Acquisition Projects (RCO#s 12-1384 and 15-1189) for Salmon Recovery Gallagher and Holt Properties Based on the restricted appraisal reports value as of April 7, 2017 and the authority granted below, we hereby establish just compensation and authorize you to make the first offer on the following parcel: Parcel Number Just Compensation (Offer) 991200407 - Gallagher $100,000 702243019 - Holt $10,000 Reco n stion an royal: cinders P.E., is"rks DirectorlCounty Engineer D e Concurrence and Authorization: The Board of County Commissioners of Jefferson County does hereby establish just compensation as stated above. The Board does hereby indicate 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 Duckabush Floodplain Acquisition Project — Gallagher and Holt the Departments to execute the documentation to close said transactions and coordinate with the approved funding sources to pay for acquisition expenses. Approved By: SEAL: ATTEST: Carolyn Avery Deputy Clerk of the Board JEFFERSON COUNTY BOARD OF COMMISSIONERS Kathleen Kler, Chair Kate Dean, Member David Sullivan, Member Date Duckabush Floodplain Acquisition Project — Gallagher and Holt APPRAISAL REPORT of HOLT PROPERTY XXX RODGERS STREET QUILCENE, WA 98376 as of April 7, 2017 Prepared for Tami Pokorny Jefferson County Environmental Health Department 615 Sheridan Street Port Townsend WA 98368 Prepared by George A. Brooks, Appraiser ComPraise 425 Ericksen Avenue NE, Suite 215 Bainbridge Island, Washington 98110 Ref. 1703 ComPraise 425 Ericksen Avenue NE, Suite 215 Bainbridge Island, WA 98110 George A. Brooks (206) 201-3557 Email: george@compraisexom April 17, 2017 Tami Pokorny Environmental Health Specialist/Project Manager Jefferson County Environmental Health Department 615 Sheridan Street Port Townsend, WA 98368 RE: Jefferson County Tax ID No. 702243019 Quilcene, WA Dear Ms. Pokorny: At your request, I have prepared an appraisal of the above -referenced property that is described in the attached report. As directed, I have estimated the fee simple market value of the subject. This report has been prepared in conformance with the current Uniform Standards of Professional Appraisal Practice (USPAP), as formulated by the Appraisal Foundation. Additionally, it conforms to the Washington State Recreation and Conservation Office (RCO). The report format presented meets the reporting requirements of USPAP and RCO. This appraisal will be used in consideration of the potential acquisition of the subject by the Jefferson County Environmental Health Department. It is subject to the assumptions and limiting conditions that are stated in this report. As a result of my investigation and analysis, I have concluded with the following fee simple market value of the subject as of April 7, 2017, which is the most recent date of inspection: Fee Simple Market Value...................................................................................... $10,000 Respectfully submitted, George A. Brooks, Appraiser Ref: 1703 General Assumptions and Limiting Conditions This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. 5. All engineering studies are assumed to be correct. The plot plans and illustrative material in this report are included only to help the reader visualize the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless a non -conformity has been identified, described, and considered in this appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in this report is based. 10. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. 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 and other potentially hazardous materials may affect the value of the property. The value estimated 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 such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. This appraisal report has been made with the following general limiting conditions: 1. If the subject is improved: Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate values allocated to the land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. Job No. 1703 ComPraise Holt Property 3. The appraiser, by reason of this appraisal, is not required to give further consultation or testimony or to be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent of the appraiser The following assumptions and limiting conditions may apply to this assignment: 1. Any opinions of value provided in the report apply to the entire property, and any proration or division of the total into fractional interests will invalidate the opinion of value, unless such proration or division of interests has been set forth in the report. 2. In the case of proposed developments: If only preliminary plans and specifications were available for use in the preparation of this appraisal; the analysis, therefore, is subject to a review of the final plans and specifications when available. 3. In the case of proposed developments, and the assignment of values to a property at the completion of construction, all proposed improvements are assumed to have been completed unless otherwise stipulated, so any construction is assumed to conform with the building plans referenced in the reports. 4. In the case of improved property: The appraiser assumes that the reader or user of this report has been provided with copies of available building plans and all leases and amendments, if any, that encumber the property. 5. If no legal description or survey was furnished, the appraiser used the county tax plat to ascertain the physical dimensions and acreage of the property. Should a survey prove this information to be inaccurate, it may be necessary for this appraisal to be adjusted. If a legal description has been provided, the appraiser is not responsible for the accuracy of the description. The property appraised is assumed to be as delineated on county maps, as noted in this appraisal. 6. The forecasts, projections, or operating estimates contained herein are based on current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes with future conditions. 7. If the subject is improved: The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey or analysis of any improvements on the property to determine whether or not it is in conformity with the various detailed requirements of ADA. It is possible that a compliance survey of the property and a detailed analysis of the requirements of the ADA would reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative impact upon the value of the property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not considered in estimating the value of the property- Job No. 1703 ComPraise Holt Property APPRAISER'S CERTIFICATION I certify that, to the best of my knowledge and belief: ♦ The statements of fact contained in this appraisal are true and correct; ♦ The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conclusions, and are the personal, unbiased professional analyses, opinions, and conclusions of the appraiser; ♦ The appraiser has no present or prospective interest in the property appraised, and no personal interest or bias with respect to the parties involved; ♦ The compensation received by the appraiser for the appraisal is not contingent on the analyses, opinions or conclusions reached or reported; ♦ My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Appraisal Foundation's Uniform Standards for Professional Appraisal Practice (USPAP) and the requirements of the Washington State Recreation and Conservation Office (RCO); ♦ The appraiser made a personal inspection of the property appraised and the property owner or his/her designated representative was given the opportunity to accompany the appraiser on the property inspection; ♦ Persons providing significant professional assistance to the appraiser in preparing this report are identified herein. Mr. Tom Hanson of American Forest Management, Inc. provided a timber valuation report which was used in the valuation of the subject; ♦ The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; ♦ This appraisal has been made in conformity with the appropriate State and Federal laws and requirements, and complies with the contract between the agency and the appraisers; ♦ I have not performed appraisal services regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment; ♦ The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. ♦ As of the date of this report, I have completed the requirements under the continuing education requirements of the Washington State Department of Licensing. Name: George A. Brooks Washington State Certification # 1102323 Date Signed: April 17,2017 -tv- Signature: aT Job No. 1703 ComPraise Holt Property TABLE OF CONTENTS Letter of Transmittal i General Assumptions & Limiting Conditions ii Appraiser's Certification iv Tableof Contents.......................................................................................................................................... v Summaryof Appraisal.................................................................................................................................. 1 Introduction................................................................................................................................................... 7 Neighborhood Data & Market Analysis..................................................................................................... 11 SiteData...................................................................................................................................................... 17 Highestand Best Use.................................................................................................................................. 25 LandValuation............................................................................................................................................27 ADDENDA Title Report Appraiser's Experience Data -v- Job No. 1703 ComPraise Holt Property SUMMARY OF APPRAISAL -1- Job No. 1703 ComPraise Holt Property SUMMARY OF APPRAISAL Identification of Subject Property The subject of this appraisal is Jefferson County tax parcel 702243019 which totals approximately 2.01 acres of vacant land. Summary of Appraisal Problem The Jefferson County Environmental Health Department has an interest in acquiring the entire property for floodplain restoration and salmon recovery purposes. Determination of the property's fee simple market value is necessary to provide a basis for any potential purchase of the subject. Location The subject tax parcel borders Rodgers Street but has no physical address. The subject is located in the small village of Quilcene in the east central portion of Jefferson County, WA. The general location is in the northeastern portion of the Olympic Peninsula in northwest Washington. Property Description The subject property consists of one Jefferson County tax parcel that totals about 2.01 acres of vacant land. The subject can be accessed from Rodgers Street which is adjacent to the east boundary or from Quilcene Avenue adjacent to the north boundary. The subject is identified as being partially covered by high hazard channel migration zone, wetlands and flood hazard area. Highest & Best Use The highest and best use of the subject is for recreational purposes. Final Value Estimates FEE SIMPLE VALUE.................................................................................................................... $10,000 Date of Valuation April 7, 2017 (date of most recent property inspection). Date of Appraisal This appraisal was prepared in April of 2017. -2- Job No. 1703 ContPraise Holt Property SUBJECT PHOTOGRAPHS -3- Job No. 1703 ComPraise Holt Property +� p 4 r IL 9912004 7,02243017 017 4.._ 9 ..y 702243019 _;s r 9912 k %-p Photo 1 - A view of an access driveway into the subject from Rodgers Street. ulugwpi� Photo 2 - A view of the Rodgers Street with the subject on the left facing north. -5- Job No. 1703 ComPraise Holt Property Photo 3 - A view of the central portion of the subject from Rodgers Street facing west. Photo 4 - A view of the south portion of the subject from Rodgers Street facing west. -6- Job No. 1703 ContPraise Holt Property r Photo 4 - A view of the south portion of the subject from Rodgers Street facing west. -6- Job No. 1703 ContPraise Holt Property INTRODUCTION -7- Job No. 1703 ComPraise Holt Property INTRODUCTION Identity of Property and Legal Description The subject is one Jefferson County tax parcel with the tax ID number 702243019. The legal description of the subject is provided in the title report that is included in the addenda of this appraisal. Property Rights Appraised This is an appraisal of the fee simple interest in the subject property. Purpose of Appraisal The purpose of this appraisal is to provide an opinion of market value of the subject property as of the date of this appraisal report. The Washington State Recreation and Conservation Office (RCO) recommends the use of the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) market value defmition for RCO funded acquisitions. The term "market value" is defined in the UASFLA as: Market value is 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. Per this definition, the market value estimate of the subject provided in this report is not linked to a specific exposure time. Although USPAP does require such a linkage, the omission of a specific market time estimate is allowable under the UASFLA as a Jurisdictional Exception. Intended User/Use of Appraisal The intended use of this appraisal is to determine the subject's fee simple value for purposes of funding the potential acquisition of the subject by the client. The intended users of this report include the client, Tami Pokorny of the Jefferson County Environmental Health Department, as well as her authorized associates, employees, representatives or agents. Additional intended users include individuals associated with the Washington State Recreation and Conservation Office who have an interest in the subject property. No other use or user of this appraisal is intended by the appraiser. Scope of Appraisal Appraisal Content The scope of work performed in this appraisal is in compliance with the specific guidelines of the Uniform Standards of Professional Appraisal Practice (USPAP) to produce a credible value opinion that meets the Job No. 1703 ComPraise Holt Property expectations of parties who are regularly intended users of similar appraisal assignments and is also in accord with the analysis that the appraiser's peers would perform in a similar appraisal assignment and the Washington State Recreation and Conservation Office (RCO). The subject has been valued through the direct sales comparison approach. This approach to valuation is based upon sales data obtained from public records including data from the Jefferson County Assessor's Office as well as a private database, the Northwest Multiple Listing Service. All sales comparisons have been inspected and verified with one or more parties to the transaction when possible. The most typical appraisal methodology is the direct sales comparison approach that is based on recent comparable data available for a given property type. The cost approach is not used because the subject includes no improvements. The income capitalization approach is not used because the subject is not income producing property. Appraisal Format This appraisal is presented as a comprehensive narrative report that is intended to comply with the reporting requirements of USPAP and RCO. Ownership History The USPAP requires a three-year record of sales for the subject. The subject property was transferred to the present owner, Norlene W. Holt, who acquired title as Norlene Wurden, on February 9, 1984 from Fred Wurden by a Quit Claim Deed for no monetary compensation. To the best of my knowledge, the subject has been under the sole ownership of Ms. Holt since that time. To the best of my knowledge, the subject is not for sale at this time or part of any pending transaction. However, it is known that the Jefferson County Environmental Health Department has an interest in acquiring the subject property for floodplain restoration and salmon recovery purposes. Inspection of Property/Notice of Contact with Property Owner I inspected the subject property on April 7, 2017 without any accompaniment. The owner, Norlene W. Holt was notified by mail prior to the inspection and did not respond to my invitation. The subject was inspected from the adjacent public Right -Of -Way since the owner did not respond to my letter. This inspection is considered to be adequate for appraisal purposes since the subject includes only about 2 acres and is partially cleared. Covenants, Conditions, Restrictions and Easements I have been provided with a title report of the subject by Jefferson Title Company as of December 1, 2016. The report states a number of special exceptions that are discussed as follows. The entire report is provided in the addenda of this appraisal. The title report notes a mineral reservation over the subject. However, to the best of my knowledge there has never been any excavation of minerals in this area. Therefore, it appears that this reservation would not impact the subject's highest and best use. M Job No. 1703 ComPraise Holt Property • The title report indicates that the 2015 and 2016 real estate taxes for the subject may not have been paid. It would be typical in a market based transaction for the seller to pay all outstanding taxes prior to any sale of the property. Extraordinary Assumptions & Hypothetical Conditions The conclusions drawn by this appraisal have been arrived at with the no hypothetical conditions or extraordinary assumptions. Qualifications of Appraiser The undersigned has extensive prior experience in the appraisal of this property type and are competent to undertake this appraisal. Please see the experience data included in the addendum for specifics concerning the appraiser's background and experience. -10- Job No. 1703 ContPraise Holt Property NEIGHBORHOOD DATA/MARKET ANALYSIS -11- Job No. 1703 ComPraise Holt Property Ch � r c C r -------------------------_, 1 f , m ' 1 AREA MAP -1z- Job No. 1703 ComPraise Holt Property NEIGHBORHOOD DATA/MARKET ANALYSIS Location/Population As shown on the map on the previous page the subject is located in the village of Quilcene and about 21 miles south of the city of Port Townsend in Jefferson County. With a total land area of 1,808 square miles and an additional 369 square miles of water it is the 18' largest county in the state. Natural landforms divide the county into three distinct areas: Western (along the Pacific Ocean); Central (Olympic National Forest and Olympic National Park, which is mostly uninhabited); and Eastern, the portion which lies along the Straits of Juan de Fuca and Port Townsend Bay, which is the most heavily populated area of Jefferson County. The Olympic National Park is a vast wilderness area encompassing temperate rain forests, mountains, and protected coastline; it is ringed by Highway 101 and is accessible from all sides. It is one of the primary attractions within the Puget Sound region and is a significant tourist destination. According to the most recent (April 2016) population estimate by the State of Washington Office of Financial Management, all of Jefferson County included 31,090 people. Port Townsend is the only incorporated city in the county and has a population of 9,485. With a population density of only around 16 inhabitants per square mile, Jefferson County is a very rural county. Economic Conditions Jefferson County has historically had the characteristics of a resource-based economy, with a heavy dependence on timber -related industries and tourism. But the timber industry has been in decline for at least the past two decades, and the local work -force has had to adapt accordingly. As recently as 1993, the major employers in the county were all associated with timber. By 1998, the economy had diversified to revolve around five broadly defined industries: local government, food service, paper and allied products, tourism and recreation, and legal and health services. In recent years economic growth has benefited from successful industry clusters including arts and culture, maritime and boat building, small scale manufacturing, tourism and entertainment, and food and farming. Agriculture is experiencing rapid growth with the most successful farmers market west of Seattle, with summer sales of nearly $1 million, a local food coop with sales over $10 million, an award winning cheese processor plant, and many small value added farm businesses. Jefferson County's brightest prospects lie in the promotion of its scenic and natural environment. The rain - shadowed northeastern panhandle, along with Sequim area to the west in Clallam County, has proven to be an attractive retirement area, with the influx of outside dollars in the form of retirement incomes being an important component of the local economy. The second -home market has also become an important component of the local economy; however, this has seen a slump over the past couple of years along with the overall decline in the local and regional housing market. The tables on the following page illustrate the trends in unemployment rates the past three years in Jefferson County and the entire State of Washington. In February 2017, unemployment stood at 7.2% for Jefferson -13- Job No. 1703 ContPraisc Holt Property County compared to the 5.3% overall rate for the State of Washington. This compares with a rate of 7.9% in February 2016, and reflects the recent improvement of the local job market. The per capita income for Jefferson County was estimated to be $47,111 while the state as a whole was estimated to be $51,146 in 2015 (Office of Financial Management). Cnernplotznent rales. nr3t seasanstlr a€lausted, in Jefferson Count• 4�Ss 9 -CFA i 0'K s,ia .ttft IF 2A1S �41T 6.3X. �— 21117 JIM Feb Mar A*r May Jun Jul Aug Se -p Ocq Nov Doc F ita A 'q D. _ il. f.'. i. :a.'s.. �.=.'r'o 6. Y. " d. "'¢o. -. U:Lf3."�d{ K!Jkft,' el!!f _'X 4..y Drppw,' #rJ 1.74;}-jie rG Nr Prim r -d 44;�: _ UnemplaYrnent rates, not searmnal1Y adj"ted' in Washington State S.d'L Jam Frttp KMAr Apr M]} Run IV315 I F cad &;-c 5 s'LI 'S "ao. .. 5S'4 ! 11:r; 5 -'N s Vi4 i.'_`A .. i -w us lAFla.- Single Family Residential Market J"aLY=•= itf 6 The primary residential market areas in proximity to the subject include the communities of Quilcene, Brinnon, Coyle Road, and Port Hadlock, as well as the more affluent areas of Port Townsend, Kala Point, Marrowstone Island, and Port Ludlow. The Port Townsend area is a noted retirement destination as it is located on Juan de Fuca Strait and Port Townsend Bay, and is also within the rain -shadow of the Olympic Mountains. The influx of relatively affluent residents, who are not dependent on the somewhat erratic local economy for employment, serves as a mainstay of demand within the local housing market. Consistent -14- Job No. 1703 ComPraise Holt Property 4�Ss i 0'K s,ia 2A1S ¢- 41916 �— 21117 S.d'L Jam Frttp KMAr Apr M]} Run IV315 I F cad &;-c 5 s'LI 'S "ao. .. 5S'4 ! 11:r; 5 -'N s Vi4 i.'_`A .. i -w us lAFla.- Single Family Residential Market J"aLY=•= itf 6 The primary residential market areas in proximity to the subject include the communities of Quilcene, Brinnon, Coyle Road, and Port Hadlock, as well as the more affluent areas of Port Townsend, Kala Point, Marrowstone Island, and Port Ludlow. The Port Townsend area is a noted retirement destination as it is located on Juan de Fuca Strait and Port Townsend Bay, and is also within the rain -shadow of the Olympic Mountains. The influx of relatively affluent residents, who are not dependent on the somewhat erratic local economy for employment, serves as a mainstay of demand within the local housing market. Consistent -14- Job No. 1703 ComPraise Holt Property with home price trends in the central areas of Western Washington, the Jefferson County housing market posted significant pricing gains experienced over the years from 2004 into 2008. However, this pricing trend moderated after that time as a consequence of the overheated market of the previous two years. Subsequently, in accordance with the demise of the overall housing market, the area experienced a significant decline in sales activity and prices for both homes and residential land. The table below and the graph shown on the following page are based upon sales data from the Northwest Multiple Listing Service and show the trends in residential real estate pricing for selected areas of Jefferson County over the past eight years. In general, the data shows a steady rise in home prices starting in 2012 and continuing into 2016. The data for the first two months of 2017 is not considered reliable due to the few sales which have occurred during that period. Since 2012, the housing market has stabilized as the region recuperated from a severe economic recession and the backlog of housing inventory, including a large number of foreclosures, was significantly reduced. The more populous Port Townsend and Port Ludlow areas have experienced very healthy price appreciation on the order of 4%-16% annually since that time. There has been more vacillation in the outlying Quilcene and Brinnon areas but the overall trend has been positive over the past few years. The upward trend in home prices has continued through 2016, with the average price of a home in the subject's Quilcene sub- market rising to about $300,000, which is a 12% increase over the previous year. Conclusion and Summary Although the subject property is located in an attractive rural setting, the Quilcene area is not a primary destination for residential development. The reason is that it is too far from established commercial centers offering services and jobs. Nevertheless it is an appealing location for home buyers with less conventional lifestyles or whose jobs do not require commuting to a city including retirees. The area also has appeal to those who have an interest in taking advantage of the extensive nearby recreational opportunities available in the Olympic Mountains and marine activities in Quilcene Bay and Hood Canal. -15- Job No. 1703 ComPraise Holt Property Average House Price Trend Analysis Average House Prices Name Dec -09 Dec -10 Dec -11 Dec -12 Dec -13 Dec -14 Dec -15 Dec -16 Feb -17 480 Pt. Townsend $309,996 $298,244 $251,923 $267,462 $278,186 $295,818 $303,498 $351,349 $292,882 485 Port Hadlock $177,686 $195,672 $174,535 $196,079 $165,794 $176,780 $173,417 $204,228 $175,666 489 Port Ludlow $355,503 $314,232 $285,657 $258,966 $297,726 $330,076 $343,868 $386,295 $445,613 492 Quilcene $126,070 $177,199 $185,179 $199,136 $209,000 $207,943 $228,121 $298,017 $525,000 493 Brinnon $135,590 $171,627 $242,490 $169,961 $170,617 $220,337 $224,680 $264,614 $316,000 Jefferson County $300,139 $301,870 $264,073 $270,933 $282,091 $290,751 $311,361 $341,342 $362,433 Increases in value Name 2010 2011 2012 2013 2014 2015 2016 2017 480 Pt. Townsend -3.8% -15.5% 6.2% 4.0% 6.3% 2.6% 15.8% -3.5% 485 Port Hadlock 10.1% -10.8% 12.3% -15.4% 6.6% -1.9% 17.8% 1.3% 489 Port Ludlow -11.6% -9.1% -9.3% 15.0% 10.9% 4.2% 12.3% 29.6% 492 Quilcene 40.6% 4.5% 7.5% 5.0% -0.5% 9.7% 30.6% 130.1% 493 Brinnon 26.6% 41.3% -29.9% 0.4% 29.1% 2.0% 17.8% 40.6% Jefferson County 0.6% -12.5% 2.6% 4.1% 3.1% 7.1% 9.6% 16.4% Conclusion and Summary Although the subject property is located in an attractive rural setting, the Quilcene area is not a primary destination for residential development. The reason is that it is too far from established commercial centers offering services and jobs. Nevertheless it is an appealing location for home buyers with less conventional lifestyles or whose jobs do not require commuting to a city including retirees. The area also has appeal to those who have an interest in taking advantage of the extensive nearby recreational opportunities available in the Olympic Mountains and marine activities in Quilcene Bay and Hood Canal. -15- Job No. 1703 ComPraise Holt Property Average House Price Trends $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 �— $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 —0 --Pt. Towgv and PortHadlock —MP—PortLudlow Jefferson County—Quilcene —Brinnon Summary and Conclusion After several years of depressed sales and significant price depreciation it appears that there has been a recovery in the local housing market as the economy of the greater Puget Sound area continues to improve and the spate of foreclosed houses and depressed sales has been cleared out of the housing inventory. This has resulted in rising home prices in the subject's market area. Nevertheless, home prices near Quilcene remain a bargain relative to the more populous areas of Jefferson County and other parts of the greater Puget Sound region. The subject is well positioned to capture demand from the segment of the rural housing market that may not be inclined to compete in higher priced markets for rural land. -16- Job No. 1703 ContPraise Holt Property SITE DATA -17- Job No. 1703 ComPraise Holt Property Job No. 1703 STREET MAP -18- ComPraise Holt Property a-� `7 y i! P Job No. 1703 STREET MAP -18- ComPraise Holt Property J+J +i Job No. 1703 STREET MAP -18- ComPraise Holt Property . Y p 1 4n1 . Al• Job No. 1703 STREET MAP -18- ComPraise Holt Property SITE DATA Site Area Referring to the map on the previous page the subject is located west of Rodgers Street in the village of Quilcene. The subject is accessed from this road which is a paved public road that connects to State Highway 101. The main portion of the subject can also be accessed from an estimated 25 foot strip of land that borders Quilcene Avenue on the north boundary. State Highway 101 links the Olympic Peninsula to the Kitsap Peninsula. Washington State ferry terminals in Bremerton, Kinston and Bainbridge Island provides access to downtown Seattle and the Seattle area. However, the distance to these ferries from the subject is well beyond the typical commute for employment. Land Area The general layout of the subject property may be visualized from the aerial photograph on page 4. The subject includes a total of about 2.01 acres. I have not been provided a survey of the entire property and assume that the acreage provided by the Jefferson County Assessor is an accurate indication of the subject's size. This is typically acknowledged to be the case as it is based upon data provided by the county's geographic information service. Zoning The subject has a Jefferson County zoning designation of Rural Residential (RR 115). The Jefferson County Municipal Code notes: This district provides a transitional area between the rural residential one per five -acre district and the rural residential one unit per 20 -acre district. Its intent is to preserve open space, protect critical areas, provide for the continuation of small-scale agricultural and forestry, and preserve and retain the rural landscape and character indigenous to Jefferson County. The primary allowable use in the RR 115 zone is single-family residential development. Multi -family use is not allowed except for residential care facilities up to 5 persons. In general, commercial uses are not allowed in this zone; however, home businesses are allowed. Soils I have not been provided a soils survey of the subject by a qualified soils engineer. In general, the primary issues associated with soils are the ability to support septic systems and residential improvements. While this could only be determined though a survey by a soils engineer, the residential improvements and septic systems on nearby parcels indicate that the subject can accommodate residential use. Historic and Present Use The subject has historically and presently used for recreational purposes. -19- Job No. 1703 ComPraise Holt Property Environmentally Sensitive Areas & Flood Zone Although I am not a critical areas specialists, during my inspection of the subject I did observe areas of standing water on the property. I investigated the environmentally sensitive areas map provided by the Jefferson County JMAP database that is provided on the following page. This map indicates that about 90 percent of the subject is within the High Risk Channel Migration Hazard Zone (highlighted in red) of the nearby Big Quilcene River and has wetlands on about 30 percent of the property. A representative of the Jefferson County Planning Department noted that the county's critical areas map is not intended to be a definitive survey of channel migration potential. However, the county's land use permitting process would require a further study to determine if portions of the property are considered to be located in the channel migration hazard area and contain wetlands. Jefferson County typically does not allow buildings to be constructed in the High Risk Channel Migration Hazard Zone, wetlands or wetland buffer areas. Determination of wetland buffers is based upon a combination of the category of wetland and the impact of land use. The table on the page 22 indicates that single-family residential development on parcels one acre or larger is considered to be a moderate impact. Since the subject's wetlands have not been assessed points for characteristics it not possible to assign buffers. However, the table notes that the range of buffer widths for Category I wetlands is 75'-225'. Regardless of the final classification of the wetlands it is obvious that the wetlands and their buffers would significantly impact the buildable area. Flood Zone As illustrated on the flood hazard map on page 23, about 95 percent of the subject is located in the flood hazard area (crosshatched) of the Big Quilcene River. This flood map was provided by the Jefferson County JMAP system that is based upon FEMA flood maps. Because detailed analyses are not performed for such areas; no depths or base flood elevations are shown within this zone. The Jefferson County Code requires that any new residential construction have the lowest floor, including basement, elevated one foot or more above base flood elevation. Other specific requirements apply to crawlspaces for structures built in a flood hazard area. Topography The subject property is generally level and at an elevation of around 20' throughout the property. The property has a territorial view. Vegetation Referring to the aerial photograph on page 4, the subject is mostly cleared with trees scattered throughout the property. Hazardous Materials I am unaware of any toxic contaminating materials either in the subject soils or within any of the subject premises. This appraisal assumes that the subject property is free and clear of all contamination that may be associated with any hazardous material. However, this assumption should not be construed as a guarantee that this is the case. -20- Job No. 1703 ContPraise Holt Property F-9 LA CRITICAL AREAS MAP Job No. 1703 ComPraise Holt Property Jefferson County Code Title 18 UNIFIED DEVELOPMENT CODE Chapter 18.22 CRITICAL AREAS 18.22°170 Protection standards. Table 15,12.330(1) WETLAND .4TE.GORIE S, RATLti G SCORES .SND BUFFER RIiTHS FOR MODERATE IMP#CT LA D USES Moderate impact land uses shall include the following: Single-family,' residential use on parcels of one acre of larger; Private roads of driveways serving three of more residential parcels; Paved trails= Passive feefeation afeas: Utility. Conidofs (private of public) with a maintenance road: Clas s B—Genefal forest conversions. including conversion Option harve st plans. Wetland Category- R°edand Characteristics: Buffer Width wah an - _An Additianal Distance Habitat (M Identified Ivetlaud B Dundary- from an _Apparent Water QuahlT (V Q) (DeUneated) Wedand Boundary- 0-ot Delineated) Ilk' [Total of scores less than 30 points] 4 u feet +20 feet (Total of scores for all functions is less than 30 points) III [W,rthH score 20-25 points] 11 i feet -30 feet (Total of scores for all functions [Not meeting above characteristic] 60. feet is 30- 50 points) 11 [WQ score 2--32 points and score 75 feet --: fees (Total of scores for all functions less than 20 points] is 51- 69 points of having [H score 29 - 36 points] 225 feet "'special characteristics" [H score 20-2.5 points] llUfeet identified in the rating form) [Estuarine] 110 feet [Interdunal 110 feet ] [Not meeting above characteristies] 75 feet I ['VQ score 2--32 points and score 75 feet -5: feel (Total of scores for all functions less than 20 points] is more than 70 points of having [H score 29 - 36 points] 225 feet "special characteristics" [H score 20-28 points] 110 feet identified in the rating fort) [Coastal Lagoon] 150 feet [Estuarine] 150 feet [Natural Heritage Wetland] 190 feet [Bog] 190 feet [Forested] Buffer width based on [`rot meeting above Characteristics] score for H functions Of WQ functions 75 feet Note: Wetlands shall be classified using the 220U Washington State Department of Ecoloes Wetland Rating System for Western Washington (Ecology Publication No. 04-(6-025'. Or as amended. -22- Job 2 - Job No. 1703 ContPraise Holt Property FLOOD HAZARD MAP -23 - Job No. 1703 ComPraise Holt Property Minerals To the best of my knowledge there are no commercially valuable mineral deposits on the subject. Utilities The property has electrical power along Rodgers Street adjacent to the subject. There is no sewer district serving this area and waste from the subject's improvements is treated by an on-site septic system. Water for the residence can be provided by a community water system which runs along Rodgers Street. Real Estate Taxes and Assessments By statute, properties in the state of Washington are to be assessed at 100% of market value. The current Jefferson County assessment and tax statement for the subject's parcel is noted below. This is consistent with the estimate of the subject's market land value based upon the analysis of this appraisal. Parcel Number Land Assessment Imp. Assessment Total Assessment Taxes 702243019 $13,000 $0 $13,000 $151.02 -24- Job No. 1703 ContPraise Holt Property HIGHEST AND BEST USE -25- Job 2s - Job No. 1703 ComPraise Holt Property HIGHEST AND BEST USE Highest and Best Use "Highest & Best Use" is defined by The Appraisal Institute as: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. The our criteria the highest and best use must meet are: legal permissibility, physical possibility, financialfeasibility and maximum profitability. " Source: The Dictionary of Real Estate Appraisal, Third Edition, Copyright 1993, published by the Appraisal Institute. The highest and best use analysis provides the foundation for a value conclusion by identifying the specific market position of a subject and thereby specifying appropriate market comparisons for it, as well as the relevant approaches to value. It is governed by consideration of the property's legal, physical and economic potential. If the property is improved, the process requires separate analysis of the land as though vacant and the land as improved. This provides the basis for a conclusion as to whether the improvements adequately contribute to overall value as to continue to be the preferred use, or whether an alternate use would better support the land value. In this instance, the subject is vacant. Highest and Best Use The highest and best use of the subject as if vacant is guided by its Jefferson County zoning designation of Rural Residential 115, which requires a minimum lot size of 5 acres for new development lots. Although the subject parcel is less than 5 acres it nominally qualifies for one residential development right as legally platted non -conforming parcel. Although I am not a certified critical areas specialist, during my site inspection of the subject I did observe areas of standing water on the property. I also consulted a map that was provided by the Jefferson County Assessor, which indicates wetlands, high hazard channel migration zone and flood hazard area covering much of the subject property. It should be noted that this map is based upon aerial photographs and historic documentation regarding the presence of critical areas rather than an on-site survey of the property, but it is nevertheless considered to provide a good general indication. With respect to physical feasibility the subject has good access to a paved road with available electrical power. The critical areas have been identified on the subject and there appears to be insufficient land outside of these areas to support residential development. Based on an informal conversation with a representative of the Jefferson County Planning Department, there is a very low likelihood that their department would approved a permit for residential development of the subject property due to the critical areas identified on the subject property. The property is located in an attractive rural area near the Hood Canal shoreline and Olympic National Park that provide positive amenities for rural recreational use. As to the economic feasibility for recreational use there is a historically active market for rural recreational land parcels in the greater Quilcene area, and this is considered to be a very feasible use of the subject land. -26- Job No. 1703 ComPraise Holt Property LAND VALUATION -27- Job No. 1703 ComPraise Holt Property LAND VALUATION Introduction The appraisal approach utilized in the following analysis is the direct sales comparison approach, which is the most typical appraisal methodology relevant to vacant land. The following pages include a map showing the location of five sales of vacant land as well as individual data sheets providing details of each property's physical characteristics and sales transaction. Comparable Data The land sales comparison analysis identifies the relevant elements of comparison between a given subject and the sale comparison properties. Any significant differences most be adjusted either quantitatively or qualitatively in the analysis. USPAP allow for quantitative as well as qualitative adjustments between a subject and sales comparables. In this instance, all adjustments are qualitative except for site improvements and expenditures after the sale. If a comparable property has a superior attribute to the subject this warrants a downward adjustment, and vice versa. In the Sales Adjustment Grid on page 37 the quantitative adjustments are made first and then followed by all of the qualitative adjustments. The analysis first considers adjustments for all of the elements of comparison that can be quantified in order to derive an adjusted sales price. Qualitative adjustments are then considered in order to further refine the value indication of each comparable relative to the subject. If a comparable property has a superior attribute to the subject this warrants a downward adjustment, and vice versa. The appropriate unit of comparison in the analysis is the gross sales price since the subject and all of the comparables are relatively small parcels that have no reasonable potential for subdivision. Expenditures after the sale refer to costs incurred by the buyer immediately after the transaction. Typically this pertains to costs to correct issues of deferred maintenance that were known to need attention at the time of sale and therefore would be considered a cost of acquiring the property. In this case the subject and all of the comparables had no expenditures after the sale so no adjustments are warranted. The subject and all of the comparables contained —improvements sono adjustments are warranted in this regard. Since all of the transactions pertain to the fee simple interest in the properties there are no adjustments warranted for property rights. Similarly, all of the comparables transacted on a cash equivalent basis, which would be similar to the subject, and there are no adjustments for financing. Conditions of sale pertains to the motivation of the buyer and seller. Typical market transactions are at arm's length in which both parties are inclined to maximize their economic gain and have no unusual influences or motivations. This in the case for all comparables and no adjustments are warranted in this regard Job No. 1703 Y311e C..P-ki Holt Prgp y Job No. 1703 peer Park Grren �rr¢ory B��araY,��m�a ISUBJECT Bangor Tridgnl k�asg i nla • kep I &innun ' orym` Picwaw ,I The Bralllcra fig` Veil wademeaa r� tCen �lral a Wpey I SP r Sea0eck /.... �$Ilwfda _ •'rr ► f r,r �s Falrwl w • �' ieao-L-0k— _ Cam➢1M1'aarcy Hanh Kava9Aaamretpn, i ChkG aT on 1e' - ErlanAs. • Reap' P&M Knsap Lake" _Bra ' HORy Havy Yard (Ziy Puy�Se �' -Eldgn • Port'OF ;' -i•Q •r �.OFCY1artl J+ _ . _ } IStlnnySl(pa,� Bethe HaCurveF LI1 mavp _ LakE + 1 SALES COMPARISON MAP -z9- co.p,.ke Holt Prq—ty i p1 Rawer Vasey Port LuukJw i y '9 •efand.� - smne i Qulkwe 1 `i r Breldabi 90- . I s � 5- fC2 na Bangor Tridgnl k�asg i nla • kep I &innun ' orym` Picwaw ,I The Bralllcra fig` Veil wademeaa r� tCen �lral a Wpey I SP r Sea0eck /.... �$Ilwfda _ •'rr ► f r,r �s Falrwl w • �' ieao-L-0k— _ Cam➢1M1'aarcy Hanh Kava9Aaamretpn, i ChkG aT on 1e' - ErlanAs. • Reap' P&M Knsap Lake" _Bra ' HORy Havy Yard (Ziy Puy�Se �' -Eldgn • Port'OF ;' -i•Q •r �.OFCY1artl J+ _ . _ } IStlnnySl(pa,� Bethe HaCurveF LI1 mavp _ LakE + 1 SALES COMPARISON MAP -z9- co.p,.ke Holt Prq—ty _ _ Prq�, \ ) ) ( { \ ;, & , � ( _ Prq�, _ _ Prq�, ( / >>> \..\)\ ' } oo ;=e: M}1f - -- 4/® \{ \ \)))§2>;::: ) \/\)) _ _ Prq�, Job No. 1703 ComPf i,e Holt Prge y Sales Comparable 3 A 601334129 XXX F— Road, Qvilc 501334130 A-- Paved Poblk Road 1. Seller Linda Nelson b. Ilse at Sale: Vacant Laud m. B.,c : Michael & J—iff Si. H & B Ilse: R—final n. Tax p—I #: 601334129 d. Zoning: RR -5 0. C.fi—ed: Jeff son CowtyAssessor Land Asea: 0.20 acp. Topography: Mosfly Level £ Development Potential: None Doe To Small Size q. View Tent. .1 g. SaleDate: Jnly2,2015 c. cndAazeas: None h. Rice: $7,500 Ri—/C—k N.— i.Inst—Typo S—to Warranty Deed L Nove j. Tama: Cash k Documwt# 592390 Job No. 1703 ComPf i,e Holt Prge y Job No. 1703 ComPxmis Holt Prape y Sales Comparable 4 111'w s XXX N. Robnaa— Road, LHlawaup a. Access: Paved Public Road L SeRer: Bob & N—a Mae Peters b. Useat Sale: Varant Land m. Buyer Toay R Adams H & B Use: R—atioval v. Tax parcel M 323305258001 d. Zovivg: RR 1/10 0. Covf ed: Ji. Leonard, West Really Company, . Land Area: 0.10 ac (360) 877-5236 t Development Prat—til: Nove Due To SmaH Size NWML S, Mason County Assessor g. Sale Date: June 16, 2016 p. Topography: Sfigbdy Sloping h. Price: $4,500 q. View: Hood Caval . Instrument Type: SWWWry Warranty Dced r. Critical areas: Bisected by Fish Bearing Stream j. T—: Cash a. RivedC—k Unvemmed Stream k. Document# 2056444 t Improvements: Nove ComPxmis Holt Prape y _ Prq�, ) I ) \ \ \)\)\\)\)\) | u . ..... .:,, __.,. § { \)) 2\ } ) f \ } \\\)/)/)/)) _ Prq�, With regard to market conditions, two of the comparables transacted in 2016, two in 2015 and one in 2014. A market adjustment is not actually based upon the passage of time, but rather upon appreciation or depreciation that may have occurred. Appreciation is the result of positive changes with respect to a property that results in increased demand for it (by means other than a change in the utilization of the property), whereas depreciation is the opposite. Given the recessionarymarket and difficult environment for financing real estate over the past few years, it is very reasonable to consider a factor for depreciation. The best way to document changes in market conditions for land is through matched pair analysis of the sale and resale of the same property or the sale of two very similar properties at different times. In my examination of land sales similar to the subject, I did not find any reliable matched pairs from which to derive an appropriate market conditions adjustment. However, referring back to the discussion in the market analysis section of this report on pages 14,15 and 16, it appears that after significant depreciation in the local housing market through 2011, this has since appreciated annually since that time. Based on this information, I consider all of the comparables which sold within the past 12 months to be similar to the subject, sales which occurred between 13 to 24 months prior to the date of value to be somewhat inferior and the sales which occurred more than 24 months to be inferior to the subject. Location considers the proximity of the subject and the comparables to small towns and larger commercial centers. The subject is located in the small village of Quilcene. This is a rural location that is not a very convenient commute to stores, services or jobs. All comparables except for number 4 are considered similar to the subject since they are located similar distances from stores, services and jobs and no adjustments are warranted. Comparable 4 is considered inferior to the subject since it is located about 18 miles south of Brirnon in Mason County. The next adjustment is for the quality of road access. Despite the subject's rural location, it borders a paved road All of the comparables except for number 3 have generally similar access and no adjustments are warranted in this regard. Comparable 3 is located on a private gravel road and is considered somewhat inferior to the subject in this regard. The topography of property can affect its usability. The subject is mostly level which is also the case for comparable 4. Comparables 1, 2 and 5 have mostly steep slopes and are considered inferior to the subject. Comparable 3 is moderately sloping and is considered somewhat inferior to the subject in this regard. Ground cover on a property is a relevant element of comparison in that the presence of trees may afford residential lots some merchantable timber value or a buffer screen for privacy. Whereas open pasture requires expensive landscaping and time for vegetation to grow in order to create to create privacy, a heavily treed lot may be selectively harvested in order to gamer timber value and to create privacy. With this in mind, the sale properties that had heavy tree cover require downward adjustments relative to the subject, which is considered to have partial tree cover. The next element of comparison considers critical areas that may negatively impact the overall utility that can be derived from a property due to legal and physical limitations. The subject is substantially impacted with critical areas since about 95 % in the property is classified as inside of a flood hazard area, 90% is identified as being in a high hazard charnel migration zone and 30% is identified as being wetlands. All comparables except for number 4 are not impacted by critical areas and are considered superior to the subject. Comparable 4 is bisected by a fish -bearing stream and is considered somewhat superior to the subject in this respect The benefit of a good view will have a positive impact upon value. The subject and comparables 2 and 3 have territorials views. The views of the other sales comparables are described on the adjustment grid and appropriate adjustments are made. The benefit of waterfront imparts value as it is well acknowledged among buyers and sellers of residential property (as well as real estate agents) that this brings a price premium over non -waterfront property. The subject and all comparables except for number 1 have no waterfrontage and no adjustments are warranted Comparable 1 has about 100 feet of medium to high bank frontage on Quilcene Bay and is considered to be superior to the subject in this regard. The category for extraordinary site conditions considers unusual physical conditions, both positive and negative, that are not accounted for in the other elements of comparison that would impact the highest and best use of a property and therefore its value. The subject and all comparables except for numbers 2 and 3 had no such conditions and no adjustments are warranted for these comparables. Comparable 2 is impacted by highway noise and is considered somewhat inferior to the subject. Comparable 3 has access rights to join a Hood Canal marina and boat launch and is therefore considered somewhat superior to the subject in this regard- The egardThe adjustment grid shows aline item for development potential of the subject and the comparables. Since the subject is significantly impacted by critical areas development is considered very unlikely. The development potential of numbers 1, 2 and 5 are considered very unlikely due to the extent of very steep slopes on the parcels. Comparable 3 and 4 are considered to have no potential for development due to the lack of available land area. Therefore all comparables are considered similar to the subject in this respect. The adjustment grid shows a fine item for the size of the parcels. All other things being equal, a typical buyer will consider a property that is larger in size to be superior to a smaller parcel. The subject consists of about 2.01 acres. Comparable 1 is considered to be somewhat inferior to the subject at 0.72 acres. Comparables 2 and 5 are considered similar to the subject at 2.27 and 1.90 acres, respectively. Comparables 3 and 4 are are considered inferior to the subject at 0.20 and 0.10 acres, respectively. mom Job No. 1703 Com mra Holt Prgp y Value Conclusion The various quantitative and qualitative adjustments for each comparable are shown on the adjustment grid on the following page. In this analysis, the gross sale price is the most relevant unit of comparison because the subject cannot be subdivided and therefore prospective buyers would consider its value on a total property basis. At the bottom of the grid the "Quantitative Adjusted Sale Price" is shown for each comparable. The final step in the analysis is to apply the qualitative adjustments to these values as is noted on the adjustment grid. The resulting "Overall Value Indication" column shows how each comparable's adjusted sale price fares as a relative value indication for the subject based upon the cumulative impact of the adjustments. Job No. 1703 I" Com mra Holt Prgp y Job No. 1703 -37- Com mrd Holt Prgp y SALES ADJiJSTNTENT GRID Lomrion Sale Price Date Quitcene Appraisal Apr -17 01304003 Quitcene $29,000 Aug -14 Quitcene $10,000 Nov -16 _133412V South CoyteP®insula $1,500 Sut-15 l log;. Littawaup $4,500 May -16 Quilcene $15,000 Nov -15 F peadi[ure After Sale None None None N- N- None Adjustment � I In � L_ Adj $ $29,000 $10,000 $7,500 $4,500 $15,000 Site Zmprovemeazts Adjustment Nane Nane 1_0 Nove 10 Nove 1_0 Nane 1_0 Nove 10 Adj $ $29,000 $10,000 $7,500 $4,500 $15,000 Property Rights Comparison Fee Simple Fee Simple Similar Fee Simple Similar Fee Simple Similar Fee Simple Similar Fee Simple ­­ Adj­ Fir�mrcng Comparison Cash Equi No AT, Cash EquiCash Similar v No Adj Equiv Similar No Adj Cash Equiv Similar No Adj Cash Equi Similar v No Adj Cash Equi Similar v Adjustment Condition afsolz Comparison Adjustment Arm's Length No Adj Arm's Length Similar No AT, No Adj Arm's Length Similar No Adj No Adj Arm's Length Similar No Adj No Adj Arm's Length Similar No AT No Adj Arm's Length Similar No Adj M kat CoMinorzr Comparison Adj Location Comparison Adjustment Apr -17 Quilcene 31 mos Inferi Upward Adi 2 mi SE of Quitccne Similar No Adj 5 mos similar No Adj 9 3 mi N of Quitcene Similar No Ad 21 mos somewhat Inferior somewhat Upward 9 3 mi SE -Q-- Similar No Adj 11 mos similar No Adj 18 mi S of Brinnon Inferi Upward Adj 17 mos Somewhat I—— Somewhat Upward 2 mi SE of Quilccne Similar No Adj Access Comparison Adjustment T pagr¢phy Comparison Adj.­ GrovM Cover Paved Public Road Levet Partially Forested Paved Public Road Similar No AT Mostly Steep Stopes I—I— Adi Heavily Forested Paved Public Road similar No Adj Mostly Steep Stapes Upward Adj Heavily Forested C vel Privaze Road Somewhat Inferior Somewhat Upward Sloping somewhat Inferior Somewhat Upward Heavily Forested Paved Public Road Similar No AT Levet similar No AT, Partially Forested Paved Public Road similar No Adj Mostly Steep Stopes I— Upward Adj Heavily Forested Comparison Adjnstmevt En vironmerually Crincad Areas95% Comparison Channel Flood Hazard Area, 90% High Migration Zane lr 30% WetlandsD somewhat Superior Somewhat Downward Hazard Nane SuSu a somewhat Superior Somewhat Downward Nane Su�aa Adj Somewhat Superior Somewhat Downward None Summar Adj similar No Adj Bisected by Fish -Bearing Stream Somewhat Superiord Somewhat Su e Somewhat Downward Nove S__ . Adi Adjustment 1 rew Comparison Temtoriat ownwa_j Q.- ­Bay & O1y k MIs_ Su a Downwara Temtoriat similar Downward Temtoriat similar somewhat Downward Hood Canal somewhat S—erinr D Partial Q.Ht Bay. Olympic Mts. somewhat Su era Adjustment Waterfro,.r Comparisongo Adjustment Extraordi�ry Site CoMinorzr Comparison Adjustment Dovnlopm Potential Comparison Adjustment Lot Size Comparison Adjustment None NoveNane Very Unlikely 2 Ol ac Downward Adj Medi Migh Bank, QuHl Summar Downward Adj Similar No Adj Very Unlikely Similar No AT, 072-227— somewhat I_ Somewhat Upward No Adj Bay None Similar No Adj Highway Noise Access to Somewhat Inferior Somewhat Upward Very Unlikely Similar No Adj similar No Adj No Adj None Similar No Adj Hood Caval Marina � Boaz Loran ch Somewhat Superior Somewhat Downward None Due To Small Size Similar No Adj 020— Infai U__ Ad, Somewhat Downward Small Stream Similar No Adj N. similar No AT None Due To Small Size Similar No AT, 0.10 ac Inferi Upward Adj Somewhat Downward None Similar No Adj Nove similar No Adj Very Unlikely Similar No Adj 1 90 — similar No Adj Property Rights Finn Condition of Sate Market Conditions Location Access Topography Ground Cover Environmevtatly Critical Areas View WazaEontage Extraordinary Site Conditions Development Potential Lot Size No Adj No Adj No Adj Upward Adj No Adj No Adj Upward Adj Somewhat Downward Downward Adj Downward Adi Downward Adj No Adj No Adj Somewhat Upward No Adj No Adj No Adj No Adj No Adj No Adj Upward Adj Somewhat Downward Downward Adj No Adj No Adj Somewhat Upward No Adj No Adj No Adj No Adj No Adj Somewhaz Upward No Adj Somewhat Upward Somewhat Upward Somewhat Downward Downward Adj No Adj No Adj Somewhat Downward No Adj Upward Adj No Adj No Adj No Adj No Adj Upward Adj No Adj No Adj No Adj Somewhat Downward Somewhat Downward No Adj No Adj No Adj Upward Adi No Adi No Adi No Adj --Upward No Adj No Adj Upward Adj Somewhat Downward Downward Adj Somewhat Downward No Adj No Adj No Ad No Ad Job No. 1703 -37- Com mrd Holt Prgp y Below the quantitatively adjusted sales prices all of the qualitative adjustments are shown. Applying the composite qualitative adjustments to the adjusted sale price provides an indication of the relative adjusted value of each comparable to the subject. For example, comparable 1, which has an adjusted sale price of $29,000 is noted as a high value indicator for the subject owing to the preponderance of downward adjustments. Comparable 2 is noted as a balanced value indicator at $10,000. Comparable 3 is noted as being a somewhat low value indicator at $7,500. Comparable 4 is noted as being a low value indicator at $4,500. Comparable 5 is noted as being a somewhat high value indicator at $15,000. Based upon the foregoing analysis I have concluded with a value opinion for the subject at $10,000 which is well bracketed by the comparables. Fee Simple Market Value Date of Value April 7, 2017. -38- Job No. 1703 ComPraise $10,000 Holt Property ADDENDA Title Report Commitment for Title Insurance ISSUEO BY First American Title Insurance Company Commitment FIRST AMERICAN TITLE INSURANCE COMPANY, a Nebraska corporation ("Company"), for a valuable consideration, commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the Proposed Insured named in Schedule A, as owner or mortgagee of the estate or interest in the land described or referred to in Schedule A, upon payment of the premiums and charges and compliance with the Requirements; all subject to the provisions of Schedules A and B and to the Conditions of this Commitment. This Commitment shall be effective only when the identity of the Proposed Insured and the amount of the policy or policies committed for have been inserted in Schedule A by the Company. All liability and obligation under this Commitment shall cease and terminate 180 days after the Effective Date or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue the policy or policies is not the fault of the Company. The Company will provide a sample of the policy form upon request. In Witness Whereof, First American Title Insurance Company has caused its corporate name and seal to be affixed by its duly authorized officers on the date shown in Schedule A. First American Title Insurance Company —//,e �- Dennis J. Gilmore President Av� 4�- 7 - Timothy Kemp Secretary (This Commitment is valid only when Schedules A and B are attached) This Jacket was created electronically and constitutes an original document Copyright 2006-2009 American Land Title Association. All rights reserved. The use of this form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Form 5011600 (8-1-09) Page 1 of 2 1 ALTA Commitment (6-17-06) CONDITIONS 1. The term mortgage, when used herein, shall include deed of trust, trust deed, or other security instrument. 2. If the proposed Insured has or acquired actual knowledge of any defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commitment other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such knowledge to the Company, or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to paragraph 3 of these Conditions. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies committed for and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or create the estate or interest or mortgage thereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions and Conditions and the Exclusions from Coverage of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this Commitment except as expressly modified herein. 4. This Commitment is a contract to issue one or more title insurance policies and is not an abstract of title or a report of the condition of title. Any action or actions or rights of action that the proposed Insured may have or may bring against the Company arising out of the status of the title to the estate or interest or the status of the mortgage thereon covered by this Commitment must be based on and are subject to the provisions of this Commitment. 5. The policy to be issued contains an arbitration clause. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. You may review a copy of the arbitration rules at< http.//www.alta.orq/>. Form 5011600 (8-1-09) Page 2 of 2 ALTA Commitment (6-17-06) Frrst American ritle Privacy Information We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our subsidiaries we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information that you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means, • Information about your transactions with us, our affiliated companies, or others, and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. Information Obtained Through Our Web Site First American Financial Corporation is sensitive to privacy issues on the Internet. We believe it is important you know how we treat the information about you we receive on the Internet. In general, you can visit First American or its affiliates' Web sites on the World Wide Web without telling us who you are or revealing any information about yourself. Our Web servers collect the domain names, not the e-mail addresses, of visitors. This information is aggregated to measure the number of visits, average time spent on the site, pages viewed and similar information. First American uses this information to measure the use of our site and to develop ideas to improve the content of our site. There are times, however, when we may need information from you, such as your name and email address. When information is needed, we will use our best efforts to let you know at the time of collection how we will use the personal information. Usually, the personal information we collect is used only by us to respond to your inquiry, process an order or allow you to access specific account/profile information. If you choose to share any personal information with us, we will only use it in accordance with the policies outlined above. Business Relationships First American Financial Corporation's site and its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites. Cookies Some of First American's Web sites may make use of "cookie" technology to measure site activity and to customize information to your personal tastes. A cookie is an element of data that a Web site can send to your browser, which may then store the coolie on your hard drive. FirstAm.com uses stored cookies. The goal of this technology is to better serve you when visiting our site, save you time when you are here and to provide you with a more meaningful and productive Web site experience. Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public record and emphasize its importance and contribution to our economy. Use We believe we should behave responsibly when we use information about a consumer in our business. We will obey the laws governing the collection, use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect, use and disseminate. Where possible, we will take reasonable steps to correct inaccurate information. When, as with the public record, we cannot correct inaccurate information, we will take all reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services, our employees and others in our industry about the importance of consumer privacy. We will instruct our employees on our fair information values and on the responsible collection and use of data. We will encourage others in our industry to collect and use information in a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain. Form 50 -PRIVACY (9-1-10) Page 1 of 1 1 Privacy Information (2001-2010 First American Financial Corporation) Commitment No. 83097 _0000'���F4..- JEFFERSON TITLE COMPANY 2205 Washington Street, PO Box 256, Port Townsend, WA 98368 Phone: (360) 385-2000 / Fax: (360) 385-6967 SCHEDULE A Commitment No.: 83097 Seller : Holt Buyer : Jefferson County Effective Date of Commitment: December 1, 2016 at 8:00 A.M. Prepared For: Jefferson County Health Department Tami Pokorny 615 Sheridan Street Port Townsend, WA 98368 Inquiries Should be Directed to: Jefferson Title Company, Inc. Researched By: Susan Brandt Pagel of 5 Your title officer for this transaction is Susan Brandt. If you have any questions concerning this title commitment, please do not hesitate to call me at (360) 385-2000 or e-mail Susan@jeffersontitlecompany.com By: Susan Brandt, Title Officer 1. Policy or Policies to be issued: Cancellation Fee (a) ® ALTA Owners Policy Standard Amount $ TBD Premium $ 60.00 Proposed Insured: Tax $ 5.40 Jefferson County, a municipal corporation 2. The estate or interest in the land described or referred to in this Commitment and covered herein is Fee Simple. 3. Title to said estate or interest in said land is at the effective date hereof vested in: Norlene Holt, who acquired title as Norlene Wurden, as her separate estate Commitment No. 83097 Page 2 of 5 4. The land referred to in this Commitment is located in the County of Jefferson, State of WA, and described as follows: The East'/4 of the Southeast'/4 of the Northwest '/4 of Section 24, Township 27 North, Range 2 West, W.M.; Excepting therefrom the South 788 feet of said Tract, and except the following described Tract, to -wit: Beginning at the Northeast corner of the Southeast '/4 of the Northwest '/4 of said Section 24; Thence running South 293 feet; Thence West 308 feet; Thence North 293 feet, and thence East 308 feet to the Place of Beginning, said excepted Tract being designated on the County Assessor's Plat and description book as Tax Nos. 27, 36 and 37 in said Section 24. Situate in the County of Jefferson, State of Washington. Commitment No. 83097 Page 3 of 5 SCHEDULE B Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company. A. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records B. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry or persons in possession thereof. C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public record. E. (A) Unpatented mining claims; (B) reservations or exceptions in patents or in acts authorizing the issuance thereof, (C) water rights, claims or title to water; Whether or not the matters excepted under (A), (B), or (C) are shown by the public records; (D) Indian tribal codes or regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes. F. Any lien, or right to a lien, for services, Labor or Material therefore or hereafter furnished, imposed by law and not shown by the public records. Any lien, or right to lien, for services, labor materials or medical assistance theretofore or hereafter furnished, imposed by law and not shown by the public records. G. Any service installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity. H. Defects, liens encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value the estate or interest or mortgages thereon covered by this Commitment. LPB Commitment No. 83097 Special Exceptions: Page 4 of 5 1. Lien of the real estate excise sales tax and surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate is 1.78%. Tax code RCW Chapter 82.45. Delinquent General Taxes. Year: 2016 Amount Billed: $ 146.31 Amount Paid: $ 0.00 Amount Due: $ 146.3 1, plus interest and penalty Tax Account No.: 702 243 019 Property ID No.: 18443 Assessed Value: $ 13,000.00 Delinquent General Taxes. Year: 2015 Amount Billed: $ 198.07 Amount Paid: $ 99.06 Amount Due: $ 99.01, plus interest and penalty Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records. 4. Any instrument should be executed in the name of Norlene Holt, formerly (or "who acquired title as" or "who also appears of record as") Norlene Wurden, in order to impart constructive notice. End of Special Exceptions Notes: A. The legal description in this commitment is based on information provided with the application and the public records as defined in the policy to issue. The parties to the forthcoming transaction must notify the title insurance company prior to closing if the description does not conform to their expectations. B. Abbreviated Legal Description: Ptn. SE NW 24-27-2W C. According to the application for title insurance, title is to vest in Jefferson County. Examination of the records discloses no matters pending against said parry. LPB Commitment No. 83097 Schedule C The following are the requirements to be complied with: Page 5 of 5 1. Instruments necessary to create the estate or interest or mortgage to be insured must be properly executed, delivered and duly filed for record. 2. Investigation should be made to determine if there are any service, installation, maintenance or construction charges for sewer, water or electricity. In the event this transaction fails to close, a cancellation fee will be charged for services rendered in accordance with our rate schedule. I l QUIT CLAIM DEED I ii FOR A VALUABLE CONSIDERATION, recei t whereof i ereby :I acknowledged on this � day of F rt/ , 19 4, the :undersigned FRED WURDE , o Box 507,ney, ont n 9 70, 71 hereby remise, release and forever quitclaim RL NE ! 1WURDEN, of 2057 Sunflower Lane, Apt. E3, Sidney, na 27 ; ;Ithe hereinafter described real estate situat n effe so County, Washington, to -wit. The East Quarter of the Southeast Quarter f 1 Northwest Quarter of Section 24, T i 2 North, Range 2 West, W.M.,; except g the a om the South 788 feet of said tract, a d ex p th following described tract, to -wit: gInn n at the Northeast Corner of the ea t t r of the Northwest f)uarter of s d S ctta 24; hence running South 293 feet; ce Wes feet; thence North 293 feet, an hence a t 308 feet ji to the place of beginnin said e c pted tract J; being designated on the un A e sor's Plat and description book as Tax S. 5 and 37 in said Section.24. i , IN WITNESS WHEREOF, he eleasor has executed this instru- ment the day and year first bo written. `a FRED WURDEN 'i STATE OF MONTA 1 S. j County oRic la d is ay of F4ru , 1984, before me, a Nota y P c, ersonally appeared RDEN, known to me to u be ,t e p so wh se name is subscribed tothe within instrument b acYd a now dae o me that he executed the same. W rff:t04;;:'C'.q[:S_[F__.. Notary Public for the State of �r, ai y �, !.,:; VT Montana. Residing at Sidney, 0-- Montana. My Commission Expires: • ?;+ 12. up = K sr9 N. vj;opp �vice�EEa_��wetro_.rk a:anY T. R. lU.LV__ ATTORNEY AT LAW 111V, WEST YAIN P. .l1 CONEY, ,49 t CONEY, MONTANA A.170 I` jM1r.161984 -1 RECOEOE1 II MUME.,� 8' CUTIAL P.FN?7S_IF— r� e=venus a m PIONEER NATIONAL PuaCsR¢+ri'iilei[eo,ntuust J TITLE_ INSURANCE AMM COMPAlrY M1= SknDM m12 IRMA= 9% ' - - _ . Filed for at Request of sT6 JUN -,29 PFi 3 BETTY J. frroLF to AFTER RECORDING MAIL Tfls dEFi ?CR " "II AtlOITdP FRED WURDEN • uTY P.O. BOX 241 IFCAti[0_lltkEfEl�flj7rf �Ifd_ nu QUILCENE, WA 98376 235428 Statutory Warranty Deed THE GRANTOR CHARLES, C. MC CLANAHAN. AND MARTHA A. MC CLANAHAN, HIS WIFE, foraadinconsiderationafTEN DOLLARS AND ANY OTHER VALUABLE CONSIDERATION, in handcon paid veys and warrants to FRED WURDEN AND NORLENE WURDEN-)' HIS ,WIFE, the following descrr'bed real estate, situated in the County of - JEFFERSON State of Washington: `1 THE EAST QUARTER OF THE SOUTHEAST -QUARTER -OF THE NORTHWEST QUARTER OF SECTION 24, TOWNSHIP 27'NORTH, RANGE 2:WEST, W.M.,•;.EXCEPTING THEREFROM THE SOUTH 788 FEET OF SAID TRACT, AND EXCEPT -THE FOLLOWING DESCRIBED Ij E TRACT, TO–MIT: BEGINNING AT THE NORTHEAST'CORNER OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 24; THENCE RUNN114G_ SOUTH 293 FEET; THENCE WEST 308 FEET; THENCE NORTH'293 FEET, AND r { THENCE EAST 308•FEET TO THE PLACE OF.BEGINMING, SAID EXCEPTED TRACT tCJ .BEING DESIGNATED ON THE COUNTY ASSESSOR'S PLAT AND DESCRIPTION BOOK AS TAX -NOS. 27, 36, AND 37 IN SAID SECTION 24. V ' Alf - 0 lt-Da:e re esus a !!� Dated this 1'0TH day of JUNE, 1976 STATE OF WASHINGTON, _ Countyof Jry�CR Sa n as On this day1personallyappeared -before me CHARLES C: MCtt{{CSLANtAHAN AND MARTHA A. to me known to he the individual S describedM�T a%6A.1ho eAsehcdted TLe mfilhFn and foregoing imttvtrunl, and acknowledged that .THEY signed the•same 2.1 THE i R • free and voluntuy act and deed, for the use and purposes therein mentioned. ' GIVEN under my hand and official seal this / aZ �' day of [a r. e. jilt - t&y Public in Qad fo, tke State of Wsrkingfos; 7 re ' ' I of :211' , 1976 June• 29, @ This sketch is provided, without a charge, for your information. It is not intended to show all matters related to the property including, but not limited to, area, dimensions, easements, encroachments or / location of boundaries. It is not a part of, nor does it O modify, the commitment or policy to which is 7 attached. The Company assumes NO LIABILITY for any OLD CHURCH RD. matter related to this sketch. Referenced should be made to an accurate survey for further information. 2 0 3-- o LINGER LONGER RD. I. 702242018 TAX 54(ENLG BY TAX 59) 8,97 010 702242013 TAX 62 PTN 119.32' 70224201 a 035 a2 1.62 o. Baa' � � 166.16' 166.16' 100' 108' TAX 27 M in 100' rn v N m 702243017 v n d TX 27& 36 1.41 0, 00 M ^ to It N C � , ci co ,n 100' 208' Lo `' w L FLO N x ,Na 'Cr N x ON N N N N 702243019 _rn -i " TX 49 N o 2 .00 o. N Ln o 0 to X N o W 332.65' rn a a Qx MS Ld N M 166,36' 166.36' 665.44' �^ rn 702242012 n E1/4 SE NW (LESS TX 14.27.36.&49) 4.16 0. 702242018 TAX 54(ENLG BY TAX 59) 8,97 010 702242013 TAX 62 PTN 119.32' 70224201 a 035 a2 1.62 o. Baa' � � Appraiser's Experience Data ComPraise 425 Ericksen Avenue NE, Suite 215 Bainbridge Island, WA 98110 George A. Brooks (206) 201-3557 Email: george@compraisexom In September of 2015, George A. Brooks established the firm ComPraise. Prior to that he worked with Stephen Shapiro Commercial Appraisal, LLC from 2011-2015 Mr. Brooks has held a variety of professional positions throughout his career, including environmental engineer, hazardous waste engineer, environmental consultant, environmental manager and general contractor. Prior to becoming a certified general appraiser he managed his own contracting company, Sound Earth Services. Mr. Brooks has a broad range of appraisal experience over a variety of property types including office and industrial buildings, commercial land, residential subdivision property, natural resource and habitat land, timberland and high-end estate homes. He has appraised numerous properties for conservation easements as well as right of way acquisitions under eminent domain. Mr. Brooks is licensed as a certified general real estate appraiser by the State of Washington (License no. 1102323). He has successfully completed the following courses approved by the State of Washington: ■ Basic Appraisal Principles ■ Basic Appraisal Procedures ■ Standards of Professional Appraisal Practice, Parts A and B ■ General Appraisal Market Analysis Highest and Best Use ■ General Appraisal Sales Comparison Approach ■ General Appraisal Site Valuation and Cost Approach ■ General Report Writing and Case Studies ■ Commercial Appraisal Review - Subject Matter Elective ■ General Appraisal Income Approach ■ Expert Witness for Commercial Appraisal - Subject Matter Electives ■ Statistics, Modeling and Finance ■ Uniform Appraisal Standards for Federal Land Acquisitions ■ Appraisal of Assisted Living Facilities Education: West Virginia University, M.S., Chemical Engineering, 1974; Virginia Military Institute, B.S. Civil Engineering, 1973. Mr. Brooks has performed appraisal services for a wide variety of clients, and a partial client list follows: Municipal and Public • City of Bainbridge Island • WA State Department of Natural Resources • WA State Department of Fish & Wildlife • Kitsap County Dept. Parks and Recreation • Kitsap County Department of Public Works • Edmonds Park, Recreation & Cultural Services • King Count Dept. Natural Resources & Parks • City of Poulsbo • Colville Confederated Tribes • Jefferson County Environmental Health Department • City of Gig Harbor • Clallam County Public Works Department • Jamestown S'Klallam Tribe Private Companies • Pope Resources, Inc. • Green Diamond Resources Company • Voyager Montessori Elementary School • Fowler Creek LP • The Pazooki Group • Gary Merlino Construction Company • Gray & Osborne, Inc. • Northwest Investment Company • Whidbey Institute • Port Gardiner Processing, LLC • Dock Street Bldg LLC Banks • Kitsap Bank • Union Bank • Parkside Financial Bank & Trust • Financial Funding LLC Conservation Organizations • Trust For Public Land • The Nature Conservancy • Bainbridge Island Land Trust • Forterra • Great Peninsula Conservancy • Whidbey Camano Land Trust • Methow Conservancy • Northwest Watershed Institute • Capitol Land Trust • Jefferson Land Trust • Nisqually Land Trust • North Olympic Land Trust • Center for Natural Lands Management • Heernet Environmental Foundation • Northwest Rangeland Trust • Chehalis River Basin Land Trust • Coastal Watershed Institute Law Firms • Rodgers Deutsch & Turner • Lee Smart, P.S., Inc. • Williams & Williams PSC • Law Office of Richard B. Shattuck • Miller Nash LLP • Skadden, Arps, Slate, Meagher & Flom LLC Epic Land Solutions, Inc. I'` 111 W. North River Drive, Suite 201 Spokane, WA 99201 Phone: (509) 315-1687 Cell: (509) 934-6024 Email: jarney@epicland.com May 3, 2017 Ms. Tami Pokorny, Environmental Health Department Jefferson County 615 Sheridan Street Port Townsend, WA 98368 RE: Review of Appraisal of the Holt Property Located on Richards Street, Quilcene, WA Epic Project Code: Jefferson County - Holt -Gallagher 20170406 Dear Ms. Pokorny, At your request and authorization Epic Land Solutions, Inc. Appraisal Region (Epic) has prepared an analysis of the appraisal report prepared by George A. Brooks of ComPraise. The appraisal report was completed for you on behalf of Jefferson County Environmental Health Department for the potential acquisition of the subject property for floodplain restoration and salmon recovery. The report is dated April 17, 2017 with a valuation date of April 7, 2017. My conclusions are contained in the following review report. This review report conforms to Standard 3 of the Uniform Standards of Professional Appraisal Practice, 2016-2017 Edition (USPAP). In addition, the service provided conforms to the Code of Ethics of the Appraisal Institute. The conclusions contained within are limited to the client, Jefferson County and Washington State Recreation and Conservation Office (RCO). They are considered to be the only intended user of these opinions and conclusions. This review report is prepared to determine the reasonableness of the appraisal report's methodology, analysis and conclusions considering the Uniform Standards of Professional Appraisal Practice (USPAP), 2016-2017 Version and the guidelines of Washington State Recreation and Conservation Office (RCO), and if it was acceptable to fulfill its intended purpose. By virtue of this review I am not expressing my own opinion of value. The appraisal report included a cover page and 38 numbered pages and an Addendum. The fee simple interest of the subject property was valued. This review was prepared as of the date of this letter, May 3, 2017, and my opinions are effective as of that date. There are no extraordinary assumptions or hypothetical conditions for my review. SCOPE OF REVIEW ASSIGNMENT The review conducted is identified as a "field review", meaning John W. Arney, MAI, did inspect the subject property and an exterior inspection of all the comparable market data. I did not independently check any of the facts contained in the report, unless specifically identified in this review report, and the information, as presented, was assumed to be accurate. Furthermore, I did not re -verify the market data which was used in the analysis. I am qualified by education and experience to perform this Jefferson County Appraisal Review of Holt Property Page 2 appraisal review competently. This appraisal review provides a determination as to the reasonableness of the appraisal's methodology, analysis and conclusions. Property Overview: The subject property is located in the small unincorporated village of Quilcene in the east central portion of Jefferson County, Washington. The property has frontage and access from Rodgers Road along the eastern boundary of the site or from Quilcene Avenue on the northern boundary of the site. The subject property is located in a rural area within Quilcene village and the surrounding land uses in the area include a variety of large and small land tracts including single family rural acreage sites, recreational dwellings and unimproved sites and commercial uses along Highway 101 in Quilcene. The subject property is an unimproved rural acreage site consisting of 2.01 acres of land area that is "L" in shape with the majority of street frontage along Rodgers Street and a 25 -foot strip along Quilcene Avenue. The site is mostly level along the road frontage and about 90% of the site is within the High Risk Channel Migration Flood Hazard Zone of the nearby Big Quilcene River with 30% of the site consisting of wetlands according to the Jefferson County JMAP database. The property currently has a Rural Residential 1/5 (RR 1/5) zoning designation under the auspices of Jefferson County allowing one residential unit per 5 -acres of land area. However due to the majority of the site being located within a flood zone the Highest & Best Use of the site as if vacant is for recreational use. Appraisal Overview: The appraisal report under review was completed by George A. Brooks of ComPraise. The appraisal report was completed for Tami Pokorny with the Jefferson County Environmental Health Department. The report is dated April 17, 2017 with a valuation date of April 7, 2017. One approach to value, the sales comparison approach, was utilized to value the subject property in the appraisal report. The cost approach was not considered since the subject is unimproved. The income approach was also not considered since the subject property would not be purchased for its income producing capabilities. Overall, the appraisal followed the proper methodology in valuing the subject property. Market Overview: The subject property is located in the central eastern portion of Jefferson County within the small unincorporated village of Quilcene, WA. The subject property is located in a rural area consisting of vacant land and rural and recreational housing on small to large tracts. Population in the county consists of 31,090 people with only one incorporated city in the county, Port Townsend, with a population of 9,485. Like elsewhere, Jefferson County's housing market declined during the recent recession but it has recovered since 2012 with healthy house appreciation of between 4 and 16% annually over the past several years. Valuation Overview: In the Sales Comparison Approach, five sales of vacant tracts of land were utilized to value the whole subject property. These sales occurred between August 2014 and November 2016. These sale properties ranged in size from 0.10 to 2.70 acres. The sales prices ranged between $4,500 and $29,000. These sales were then rated for inferior, similar and superior characteristics and provided reasonable Jefferson County Appraisal Review of Holt Property Page 3 support, as adjusted, for the concluded whole property value of $10,000 by the Sales Comparison Approach. Conclusion: In the reviewer's opinion, the appraiser followed the proper methodology for the valuation of the subject property. In summary, the appraisal report is concluded to provide a sufficient amount of data and analysis to adequately support the indicated market value of the subject property. As a result, the appraisal is accepted by the review appraiser. Overall the appraisal is considered to be good in quality. This appraisal review report is subject to the following assumptions and limiting conditions. Thank you for the opportunity to be of service. Respectfully submitted, EPIC LAND SOLUTIONS, INC. in/WW. ey, MAI Senior Appraiser Washington Certified General Appraiser 1100473 Jefferson County Appraisal Review of Holt Property Page 4 CERTIFICATE OF REVIEW APPRAISER I certify that, to the best of my knowledge and belief: • The facts and data reported by the reviewer(s) and used in the review process are true and correct. • We have both the experience and the knowledge to perform this appraisal review competently. • 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 (our) personal, impartial, and unbiased professional analyses, opinions, and conclusions. • 1 have no present or prospective interest in the property that is the subject of the work under review and no personal interest with respect to the parties involved. • 1 have no bias with respect to the property that is the subject of the work under review or to the parties involved with this assignment. • I, John W. Arney, MAI have not performed any professional services with respect to the property that is the subject of this assignment in the previous three-year period. • The engagement in this assignment was not contingent upon developing or reporting predetermined results. • The 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 the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice, as set forth by the Appraisal Standards Board of the Appraisal Foundation. • My analyses, opinions, and conclusions were developed, and this appraisal has been prepared, in conformity with the appropriate state and federal laws, regulations, policies, and procedures applicable to the appraisal right-of-way for such purposes. • 1 John W. Arney, MAI have made a personal inspection of the subject property of the work under review. • No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the persons signing this certification. Jefferson County Appraisal Review of Holt Property Page 5 • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report I, John W. Arney, MAI have completed the continuing education program for Designated Members of the Appraisal Institute. 1 John W. Arney, MAI Senior Appraiser Washington Certified General Appraiser 1100473 Jefferson County Appraisal Review of Holt Property Page 6 APPRAISAL REVIEW ASSUMPTIONS & LIMITING CONDITIONS This review is made expressly subject to the conditions and stipulations following: 1 It is assumed that the legal description contained in this appraisal under review is correct. No responsibility is assumed for matters which are legal in nature, nor is any opinion on the title rendered herewith. This review report assumes good title, responsible ownership and competent management. Any liens or encumbrances which may now exist have been disregarded and the property has been analyzed as though free of indebtedness unless otherwise stated. 2 Any plot plans, sketches, drawings or other exhibits contained in the report under review are assumed to be correct. I have made no survey for this report under review and assume no responsibility for such. 3 Unless otherwise noted herein, it is assumed that there are no encroachments, zoning or other violations of any regulations affecting the subject property that were not clearly disclosed in the appraisal under review. 4 Except as noted, this review assumes the land to be free of adverse soil conditions which would prohibit development of the property to its highest and best use. 5 The reviewer assumes no liability for structural conditions not visible through ordinary, careful inspection or a review of the plans and specifications, if the inspection is proposed. The reviewer has made no inspection for toxic or carcinogenic materials, nor has he detected any subsurface problems or hazardous waste conditions. The reviewer is not qualified to detect such substances. An expert in this field should be retained if desired. 6 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 7 Disclosure of the contents of this review report is governed by the bylaws and regulations of The Uniform Standards of Professional Practice. 8 Neither all nor any part of the contents of this review report, especially any conclusions as to value, the identity of the appraiser or the firm which he/she is connected, or any reference to any organization or license shall be disseminated to the public through the advertising media, public relations media, news media, sales media or any other public means of communication without prior written concept and approval of the analyst. 9 This review shall be used only in its entirety with the original appraisal under review and no part shall be used in conjunction with any other study and is invalid if so used. 10 Employment to perform this review does not require testimony in court, unless mutually satisfactory arrangements are made in advance. 11 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 else but 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. Jefferson County Appraisal Review of Holt Property Page 7 12 Neither all, nor any part of the content of this review report, or copy thereof (including conclusions as to property value, the identity of the appraiser, professional licenses, reference to any affiliation with professional organizations, or the firm with which the appraiser is connected), shall be used for any purpose by anyone but the client specified in the report, the borrower if the appraisal fee paid by the same, the mortgage or its successors and assigns, mortgage insurers, consultants, professional appraisal organizations, any state or federally approved financial institution, any department, agency, or District of Columbia, without the written consent of the review appraiser; nor shall it be conveyed by anyone to the public through advertising, public relations, news media or sales without the written consent and approval of the review appraiser. 13 Information, estimates, and opinions furnished to the reviewer and contained in the report were obtained from sources considered to be reliable and believed to be true and correct. However, the reviewer can assume no responsibility for accuracy of such items furnished to the reviewer. 14 It is assumed that the public project which is the object of this review will be constructed in the manner proposed in the reasonably foreseeable future. 15 Acceptance and/or use of this review constitutes acceptance of the foregoing assumptions and limiting conditions. Jefferson County Appraisal Review of Holt Property Page 8 John W. Arney, MAI, Senior Appraiser John W. Amey has over 35 years of appraisal experience in commercial, industrial, Total Years of special use and complex residential properties. He has completed appraisals Experience: s35 throughout the Pacific Northwest in Washington, Idaho and Oregon as well as in Alaska, California, Nevada and Arizona. John has appraised properties for major Years with Firm: [1 I projects including the 1-405 ex ansion project between Tukwila and Bothell, the SR - j Education: Bachelor of 167 expansion project between Renton and Kent, the US -99 Beautification project Business Administration, for the Cities of Federal Way, Des Moines, Sea -Tae, Tukwila and Shoreline and the Real Estate, Boise state Seattle Monorail project. He has over 14 years of experience in eminent domain University valuations. John has valued total and partial acquisitions, temporary and permanent Registrations/Certifications: easements and determined property damages resulting from acquisitions and Certified General Real Estate Appraiser, easements. He also has experience valuing large, multi -property valuation projects. Idaho, License #CGA -3630 John has qualified as an expert witness in Superior Court of Washington in and for Certified General Real Estate Appraiser, King County. He holds a BBA in Real Estate from Boise State University and is a Washington, License #1100473 designated MAI member of the Appraisal Institute. MAI Designated Member, Appraisal Institute Please note: The appraisal group works independently within the Epic organization Associations/organizations: to ensure complete objectivity and impartiality for all appraisal opinions and Member, International Right of Way conclusions. Association (IRWA) Education in Real Estate Appraisal: Relevant Experience Appraisal Institute Classes Government Clients. Expert Witness: + Real Estate Appraisal Principles • City of Auburn • Superior Court of Washington + Basic Valuation Procedures City of Bellevue in and for King County • Rural Valuation • City of Coeur d'Alene Financial Institution Clients: + Hotel/Motel Valuation City of Des Moines • Bank of America • Capitalization Theory & • City of Federal Way • Cathay Bank Techniques, Parts A.& 6 . City of Issaquah • KeyBank + Reviewing Appraisals seminar • Cityf Kirkland oan• Northwest Bank + Case Studies in R. E. Valuation + Valuation Analysis Report Writing City of SeaTac . Seattle Bank • Standards of Professional Practice, • City of Shoreline • Umpquah Bank Parts A& B • City of Spokane • US Bank * Understanding Limited Appraisals City of Spokane Valley . Washington. Trust Bank + 6usIness VaIuadon • City of Snohomish • Washington Federal Bank + Condemnation Appraising: Basic + WSDCIT • Wells Fargo Bank Principles & Applications Attorney, LPA and Corporate Clients: + Condemnation Appraising: • 6H Partnerships • Indonesian Development Co. Advanced Topics & Applications • American Pacific Fisheries • Lane Powell PC + Separating Real, Personal & • Bancshares Mortgage • Lilak Construction Intangible Property Center Mortgage Livengood Fitzgerald & Alskog Uniform Appraisal Standards for Federal Land Acquisitions . CH2M Hill • Malapor Development Co. • Litigation Appraisal: Specialized • CityFed Mortgage • McConkey Dev. Co., Inc. Topics &Applications Coast Mortgage Exchange • McDonough's Law Office • Uniform Standards of Professional • Columbia Valuation Group • Money Store Appraisal Practice CWA Construction • Pen -Mar Investment Services • Business Practices &Ethics • Diversified Apt. Realty Co. • Preston Gates and Ellis • Fisher Properties • Reed Smith LLP IAAO Classes: Foster Pepper • Witherspoon Kelley + Property Taxation & Income • GNA (Division of Valuation Weyerhaeuser) + Personal Property Valuation . Graham and Dunn + Leasehold Valuation • Harmon & Associates, R.E_ Jefferson County Appraisal Review of Holt Property Page 9 STATE OF WASHINGTON DWARTMENT OF LICENSING — BUSINESS AND PROFESSIONS DIVISION THIS CERTIFIES THAT THE PERSON OR BUSINESS NAMED BELOW IS AUTHORIZED AS A CERTIFIED GENERAL REAL ESTATE APPRAISER JOHN W ARNEY PO BOX 699 COEUR D ALENE ID 83816 1100473 12/11/1991 04/04!2019 License Number Issued Dsw Expiration Date PL -630-158 0116) Pei Kohler. uirrsmr Jefferson County Appraisal Review of Holt Property APPRAISAL REPORT of GALLAGHER PROPERTY 161 RODGERS STREET QUILCENE, WA 98376 as of April 7, 2017 Prepared for Tami Pokorny Jefferson County Environmental Health Department 615 Sheridan Street Port Townsend WA 98368 Prepared by George A. Brooks, Appraiser ComPraise 425 Ericksen Avenue NE, Suite 215 Bainbridge Island, Washington 98110 Ref. 1707 ComPraise 425 Ericksen Avenue NE, Suite 215 Bainbridge Island, WA 98110 George A. Brooks (206) 201-3557 Email: george@compraisexom April 14, 2017 Tami Pokorny Environmental Health Specialist/Project Manager Jefferson County Environmental Health Department 615 Sheridan Street Port Townsend, WA 98368 RE: Jefferson County Tax ID No. 991200407 Quilcene, WA Dear Ms. Pokorny: At your request, I have prepared an appraisal of the above -referenced property that is described in the attached report. As directed, I have estimated the fee simple market value of the subject. This report has been prepared in conformance with the current Uniform Standards of Professional Appraisal Practice (USPAP), as formulated by the Appraisal Foundation. Additionally, it conforms to the Washington State Recreation and Conservation Office (RCO). The report format presented meets the reporting requirements of USPAP and RCO. This appraisal will be used in consideration of the potential acquisition of the subject by the Jefferson County Environmental Health Department. It is subject to the assumptions and limiting conditions that are stated in this report. As a result of my investigation and analysis, I have concluded with the following value estimate for the subject, as of the effective date of valuation, April 7, 2017: FEE SIMPLE VALUE.................................................................................................................. $100,000 Respectfully submitted, _ C?_ La-� George A. Brooks, Appraiser Ref: 1707 General Assumptions and Limiting Conditions This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. 5. All engineering studies are assumed to be correct. The plot plans and illustrative material in this report are included only to help the reader visualize the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless a non -conformity has been identified, described, and considered in this appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in this report is based. 10. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. 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 and other potentially hazardous materials may affect the value of the property. The value estimated 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 such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. This appraisal report has been made with the following general limiting conditions: 1. If the subject is improved: Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate values allocated to the land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. Job No. 1707 ComPraise Gallagher Property 3. The appraiser, by reason of this appraisal, is not required to give further consultation or testimony or to be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent of the appraiser The following assumptions and limiting conditions may apply to this assignment: 1. Any opinions of value provided in the report apply to the entire property, and any proration or division of the total into fractional interests will invalidate the opinion of value, unless such proration or division of interests has been set forth in the report. 2. In the case of proposed developments: If only preliminary plans and specifications were available for use in the preparation of this appraisal; the analysis, therefore, is subject to a review of the final plans and specifications when available. 3. In the case of proposed developments, and the assignment of values to a property at the completion of construction, all proposed improvements are assumed to have been completed unless otherwise stipulated, so any construction is assumed to conform with the building plans referenced in the reports. 4. In the case of improved property: The appraiser assumes that the reader or user of this report has been provided with copies of available building plans and all leases and amendments, if any, that encumber the property. 5. If no legal description or survey was furnished, the appraiser used the county tax plat to ascertain the physical dimensions and acreage of the property. Should a survey prove this information to be inaccurate, it may be necessary for this appraisal to be adjusted. If a legal description has been provided, the appraiser is not responsible for the accuracy of the description. The property appraised is assumed to be as delineated on county maps, as noted in this appraisal. 6. The forecasts, projections, or operating estimates contained herein are based on current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes with future conditions. 7. If the subject is improved: The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey or analysis of any improvements on the property to determine whether or not it is in conformity with the various detailed requirements of ADA. It is possible that a compliance survey of the property and a detailed analysis of the requirements of the ADA would reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative impact upon the value of the property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not considered in estimating the value of the property- Job No. 1707 ComPraise Gallagher Property APPRAISER'S CERTIFICATION I certify that, to the best of my knowledge and belief: ♦ The statements of fact contained in this appraisal are true and correct; ♦ The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conclusions, and are the personal, unbiased professional analyses, opinions, and conclusions of the appraiser; ♦ The appraiser has no present or prospective interest in the property appraised, and no personal interest or bias with respect to the parties involved; ♦ The compensation received by the appraiser for the appraisal is not contingent on the analyses, opinions or conclusions reached or reported; ♦ The appraisal report was prepared in conformity with the Appraisal Foundation's Uniform Standards for Professional Appraisal Practice (USPAP) and the requirements of the Washington State Recreation and Conservation Office (RCO); ♦ The appraiser made a personal inspection of the property appraised and the property owner or his/her designated representative was given the opportunity to accompany the appraiser on the property inspection; ♦ Persons providing significant professional assistance to the appraiser in preparing this report are identified herein; ♦ This appraisal has been made in conformity with the appropriate State and Federal laws and requirements, and complies with the contract between the agency and the appraisers; ♦ I have not performed appraisal services regarding the property that is the subject of this report within the past three years. ♦ I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by authorized representatives. ♦ As of the date of this report, I have completed the requirements under the continuing education program of the Appraisal Institute. Name: George A. Brooks Washington State Certification # 1102323 Date Signed: April 14, 2017 Signature: + ,``' Job No. 1707 ComPraise Gallagher Property TABLE OF CONTENTS Letter of Transmittal i General Assumptions & Limiting Conditions ii Appraiser's Certification iv Tableof Contents.......................................................................................................................................... v Summaryof Appraisal.................................................................................................................................. 1 Introduction................................................................................................................................................. 11 Neighborhood Data & Market Analysis.....................................................................................................15 SiteData...................................................................................................................................................... 21 Highestand Best Use.................................................................................................................................. 29 LandValuation............................................................................................................................................ 32 ADDENDA Title Report Appraiser's Experience Data -v- Job No. 1707 ComPraise Gallagher Property SUMMARY OF APPRAISAL -1- Job No. 1707 ComPraise Gallagher Property SUMMARY OF APPRAISAL Identification of Subject Property The subject of this appraisal is Jefferson County tax parcel 991200407 which totals approximately 0.88 acres of land that includes a single-family residence. Summary of Appraisal Problem The Jefferson County Environmental Health Department has an interest in acquiring the entire property including the land and improvements for floodplain restoration and salmon recovery purposes. Determination of the property's fee simple market value is necessary to provide a basis for any potential purchase of the subject. Location The subject tax parcel has the physical address of 161 Rodgers Street. The subject is located in the small village of Quilcene in the east central portion of Jefferson County, WA. The general location is in the northeastern portion of the Olympic Peninsula in northwest Washington. Property Description The subject property consists of one Jefferson County tax parcel improved with a 1,608 square foot single- family house. The subject parcel totals about 0.88 acres. The subject is accessed from Rodgers Street which is adjacent to the west boundary. The entire subject is identified as being inside of the high hazard channel migration zone. About 95 percent of the subject is inside of the flood hazard zone of the Big Quilcene River located to the south. Highest & Best Use The highest and best use of the subject is for continued utilization of the existing improvement for residential purposes after completion of the current remodeling project. Final Value Estimates FEE SIMPLE VALUE.................................................................................................................. S100,000 Date of Valuation April 7, 2017 (date of most recent property inspection). Date of Appraisal This appraisal was prepared in April of 2017. -2- Job No. 1707 ContPraise Gallagher Property SUBJECT PHOTOGRAPHS -3- Job No. 1707 ComPraise Gallagher Property �. ILs AL h. w � w e cn I *IF IL I Photo 1 - A view of the subject improvement from Rodgers Street facing east. Photo 2 - A view of the rear of the subject house showing one of the covered porches. -5- Job No. 1707 ComPraise Gallagher Property � ,� VAT -•�"1• % � ._ - Photo 3 - A view of the south side of the house showing the wood single -paned windows. Photo 4 - A view of the front entry from inside the house. -6- Job No. 1707 ContPraise Gallagher Property Photo 5 - A view of the wood stove in the dining room of the house. Photo 6 - A view of the kitchen in the house with the newer wood cabinets. -7- Job No. 1707 ComPraise Gallagher Property Photo 7 - A view from the front entry showing the dining room showing the remodeling in progress. Photo 8 - A view of the downstairs bedroom adjacent to the living room. Job No. 1707 ContPraise Gallagher Property Photo 9 - A view of the bathroom in the house. Photo 10 — A view of the upstairs hallway showing the remodeling in progress. Job No. 1707 ComPraise Gallagher Property Photo 11 - A view of one of the upstairs rooms with a closet in the background. Photo 12 — A view of one of the upstairs rooms with the closet in the background. -10- Job No. 1707 ComPraise Gallagher Property INTRODUCTION -11- Job No. 1707 ComPraise Gallagher Property INTRODUCTION Identity of Property and Legal Description The subject is one Jefferson County tax parcel with the tax ID number 991200407. The legal description of the subject is provided in the title report that is included in the addenda of this appraisal. Property Rights Appraised This is an appraisal of the fee simple interest in the subject property. Purpose of Appraisal The purpose of this appraisal is to provide an opinion of market value of the subject property as of the date of this appraisal report. The Washington State Recreation and Conservation Office (RCO) recommends the use of the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) market value defmition for RCO funded acquisitions. The term "market value" is defined in the UASFLA as: Market value is 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. Per this definition, the market value estimate of the subject provided in this report is not linked to a specific exposure time. Although USPAP does require such a linkage, the omission of a specific market time estimate is allowable under the UASFLA as a Jurisdictional Exception. Intended User/Use of Appraisal The intended use of this appraisal is to determine the subject's fee simple value for purposes of funding the potential acquisition of the subject by the client. The intended users of this report include the client, Tami Pokorny of the Jefferson County Environmental Health Department, as well as her authorized associates, employees, representatives or agents. Additional intended users include individuals associated with the Washington State Recreation and Conservation Office who have an interest in the subject property. No other use or user of this appraisal is intended by the appraiser. Scope of Appraisal Appraisal Content The scope of work performed in this appraisal is in compliance with the specific guidelines of the Uniform Standards of Professional Appraisal Practice (USPAP) to produce a credible value opinion that meets the -12- Job No. 1707 ComPraise Gallagher Property expectations of parties who are regularly intended users of similar appraisal assignments and is also in accord with the analysis that the appraiser's peers would perform in a similar appraisal assignment and the Washington State Recreation and Conservation Office (RCO). The subject has been valued through the direct sales comparison approach. This approach to valuation is based upon sales data obtained from public records including data from the Jefferson County Assessor's Office as well as a private database, the Northwest Multiple Listing Service. All sales comparisons have been inspected and verified with one or more parties to the transaction when possible. The most typical appraisal methodology is the direct sales comparison approach that is based on recent comparable data available for a given property type. I have utilized that approach in this appraisal. Although the cost approach may be appropriate in the valuation of improved property I have not utilized it in this instance. The reason is that it is difficult to accurately apply a market-based rate for depreciation for an older house that has been upgraded. USPAP and RCO considers the direct sales comparison approach to provide the best indication of market value when there is adequate market data available. As this is the case for the valuation at hand, I have concluded that reliance upon the cost approach is not warranted. The income capitalization approach could potentially be used for the subject if the improvement is rented. However, this approach is not used because there were very few rental properties discovered in the area to provide reliable market information. Appraisal Format This appraisal is presented as a comprehensive narrative report that is intended to comply with the reporting requirements of USPAP and RCO. Ownership History The USPAP requires a three-year record of sales for the subject. The subject property was transferred to the present owner, Michael T. Gallagher on September 3, 1996 from Ronald D. Shea and Connie J. Templin by a Statutory Warranty Deed for $52,000. To the best of my knowledge, the subject has been under the sole ownership of Mr. Gallagher since that time. To the best of my knowledge, the subject is not for sale at this time or part of any pending transaction. However, it is known that the Jefferson County Environmental Health Department has an interest in acquiring the subject property for floodplain restoration and salmon recovery purposes. Inspection of Property/Notice of Contact with Property Owner I inspected the subject property on April 7, 2017 in the presence of the Wade Johnson, a local realtor and representative of the owner. The owner, Michael T. Gallagher was contacted prior to the inspection and declined to attend. Covenants, Conditions, Restrictions and Easements I have been provided with a title report of the subject by Jefferson Title Company as of December 14, 2015, a Supplemental #1 To The First Commitment dated April 10, 2017 and Supplemental #2 To The First -13- Job No. 1707 ComPraise Gallagher Property Commitment. The report states a number of special exceptions that are discussed as follows. The entire report is provided in the addenda of this appraisal. • The title report notes a mineral reservation over the subject. However, to the best of my knowledge there has never been any excavation of minerals in this area. Therefore, it appears that this reservation would not impact the subject's highest and best use. • The title report indicates that the 2014, 2015 and 2016 real estate taxes for the subject may not have been paid. It would be typical in a market based transaction for the seller to pay all outstanding taxes prior to any sale of the property. Extraordinary Assumptions & Hypothetical Conditions The conclusions drawn by this appraisal have been arrived at with the no hypothetical conditions or extraordinary assumptions. Qualifications of Appraiser The undersigned has extensive prior experience in the appraisal of this property type and are competent to undertake this appraisal. Please see the experience data included in the addendum for specifics concerning the appraiser's background and experience. -14- Job No. 1707 ContPraise Gallagher Property NEIGHBORHOOD DATA/MARKET ANALYSIS -Is- Job No. 1707 ComPraise Gallagher Property Ch � r c C r -------------------------_, 1 f , m ' 1 I AREA MAP -16- Job No. 1707 ComPraise Gallagher Property NEIGHBORHOOD DATA/MARKET ANALYSIS Location/Population As shown on the map on the previous page the subject is located in the village of Quilcene and about 21 miles south of the city of Port Townsend in Jefferson County. With a total land area of 1,808 square miles and an additional 369 square miles of water it is the 18' largest county in the state. Natural landforms divide the county into three distinct areas: Western (along the Pacific Ocean); Central (Olympic National Forest and Olympic National Park, which is mostly uninhabited); and Eastern, the portion which lies along the Straits of Juan de Fuca and Port Townsend Bay, which is the most heavily populated area of Jefferson County. The Olympic National Park is a vast wilderness area encompassing temperate rain forests, mountains, and protected coastline; it is ringed by Highway 101 and is accessible from all sides. It is one of the primary attractions within the Puget Sound region and is a significant tourist destination. According to the most recent (April 2016) population estimate by the State of Washington Office of Financial Management, all of Jefferson County included 31,090 people. Port Townsend is the only incorporated city in the county and has a population of 9,485. With a population density of only around 16 inhabitants per square mile, Jefferson County is a very rural county. Economic Conditions Jefferson County has historically had the characteristics of a resource-based economy, with a heavy dependence on timber -related industries and tourism. But the timber industry has been in decline for at least the past two decades, and the local work -force has had to adapt accordingly. As recently as 1993, the major employers in the county were all associated with timber. By 1998, the economy had diversified to revolve around five broadly defined industries: local government, food service, paper and allied products, tourism and recreation, and legal and health services. In recent years economic growth has benefited from successful industry clusters including arts and culture, maritime and boat building, small scale manufacturing, tourism and entertainment, and food and farming. Agriculture is experiencing rapid growth with the most successful farmers market west of Seattle, with summer sales of nearly $1 million, a local food coop with sales over $10 million, an award winning cheese processor plant, and many small value added farm businesses. Jefferson County's brightest prospects lie in the promotion of its scenic and natural environment. The rain - shadowed northeastern panhandle, along with Sequim area to the west in Clallam County, has proven to be an attractive retirement area, with the influx of outside dollars in the form of retirement incomes being an important component of the local economy. The second -home market has also become an important component of the local economy; however, this has seen a slump over the past couple of years along with the overall decline in the local and regional housing market. The tables on the following page illustrate the trends in unemployment rates the past three years in Jefferson County and the entire State of Washington. In February 2017, unemployment stood at 7.2% for Jefferson -17- Job No. 1707 ContPraisc Gallagher Property County compared to the 5.3% overall rate for the State of Washington. This compares with a rate of 7.9% in February 2016, and reflects the recent improvement of the local job market. The per capita income for Jefferson County was estimated to be $47,111 while the state as a whole was estimated to be $51,146 in 2015 (Office of Financial Management). Cnernplotznent rales. nr3t seasonstlr ar _justed, in Jefferson Count• 4�Ss 9 -CFA 8.3SC. —. a-ttfc IF 7.3z a 2419 �41T 6.3X. �— 21117 JIM Feb Mar Apr MaV Jun Jul Aug Sep QC1 Nov ae€ ? . 7U4 + 19e a.G , iia "2% f . 9 _ G ¢� I -.L3',{�2:.:"Ny.Cr,.�,"d{�!ij.l7�'�I!!P_'#+ff 4..`y �}fpA••,'r,#rJ 1,74�.�,'dl G.iSrR.•R:iN!_d 4Pt6;i, _ UnemplaYrnent rages, not searmnal1Y adj"ted' in Wasbington State S.d'L Jam Frttp hMAr Apr M]} Run Jul Aug Saba �c =, R,,,.,,. IV315 I F cad d ;-c 5 s'LI 'S "ao. .. 5S'4 ! 11:d 5 -'N s Vi4 i.'_`A . i -w us lAFla.- Single Family Residential Market J"aLY=•= The primary residential market areas in proximity to the subject include the communities of Quilcene, Brinnon, Coyle Road, and Port Hadlock, as well as the more affluent areas of Port Townsend, Kala Point, Marrowstone Island, and Port Ludlow. The Port Townsend area is a noted retirement destination as it is located on Juan de Fuca Strait and Port Townsend Bay, and is also within the rain -shadow of the Olympic Mountains. The influx of relatively affluent residents, who are not dependent on the somewhat erratic local economy for employment, serves as a mainstay of demand within the local housing market. Consistent with home price trends in the central areas of Western Washington, the Jefferson County housing market -18- Job No. 1707 ComPraise Gallagher Property 4�Ss i 0'K s,ia 2A1S ¢- 41916 �— 21117 S.d'L Jam Frttp hMAr Apr M]} Run Jul Aug Saba �c =, R,,,.,,. IV315 I F cad d ;-c 5 s'LI 'S "ao. .. 5S'4 ! 11:d 5 -'N s Vi4 i.'_`A . i -w us lAFla.- Single Family Residential Market J"aLY=•= The primary residential market areas in proximity to the subject include the communities of Quilcene, Brinnon, Coyle Road, and Port Hadlock, as well as the more affluent areas of Port Townsend, Kala Point, Marrowstone Island, and Port Ludlow. The Port Townsend area is a noted retirement destination as it is located on Juan de Fuca Strait and Port Townsend Bay, and is also within the rain -shadow of the Olympic Mountains. The influx of relatively affluent residents, who are not dependent on the somewhat erratic local economy for employment, serves as a mainstay of demand within the local housing market. Consistent with home price trends in the central areas of Western Washington, the Jefferson County housing market -18- Job No. 1707 ComPraise Gallagher Property posted significant pricing gains experienced over the years from 2004 into 2008. However, this pricing trend moderated after that time as a consequence of the overheated market of the previous two years. Subsequently, in accordance with the demise of the overall housing market, the area experienced a significant decline in sales activity and prices for both homes and residential land. The table below and the graph shown on the following page are based upon sales data from the Northwest Multiple Listing Service and show the trends in residential real estate pricing for selected areas of Jefferson County over the past eight years. In general, the data shows a steady rise in home prices starting in 2012 and continuing into 2016. The data for the first two months of 2017 is not considered reliable due to the few sales which have occurred during that period. Since 2012, the housing market has stabilized as the region recuperated from a severe economic recession and the backlog of housing inventory, including a large number of foreclosures, was significantly reduced. The more populous Port Townsend and Port Ludlow areas have experienced very healthy price appreciation on the order of 4%-16% annually since that time. There has been more vacillation in the outlying Quilcene and Brinnon areas but the overall trend has been positive over the past few years. The upward trend in home prices has continued through 2016, with the average price of a home in the subject's Quilcene sub- market rising to about $300,000, which is a 12% increase over the previous year. Conclusion and Summary Although the subject property is located in an attractive rural setting, the Quilcene area is not a primary destination for residential development. The reason is that it is too far from established commercial centers offering services and jobs. Nevertheless it is an appealing location for home buyers with less conventional lifestyles or whose jobs do not require commuting to a city including retirees. The area also has appeal to those who have an interest in taking advantage of the extensive nearby recreational opportunities available in the Olympic Mountains and marine activities in Quilcene Bay and Hood Canal. -19- Job No. 1707 ContPraise Gallagher Property Average House Price Trend Analysis Average House Prices Name Dec -09 Dec -10 Dec -11 Dec -12 Dec -13 Dec -14 Dec -15 Dec -16 Feb -17 480 Pt. Townsend $309,996 $298,244 $251,923 $267,462 $278,186 $295,818 $303,498 $351,349 $292,882 485 Port Hadlock $177,686 $195,672 $174,535 $196,079 $165,794 $176,780 $173,417 $204,228 $175,666 489 Port Ludlow $355,503 $314,232 $285,657 $258,966 $297,726 $330,076 $343,868 $386,295 $445,613 492 Quilcene $126,070 $177,199 $185,179 $199,136 $209,000 $207,943 $228,121 $298,017 $525,000 493 Brinnon $135,590 $171,627 $242,490 $169,961 $170,617 $220,337 $224,680 $264,614 $316,000 Jefferson County $300,139 $301,870 $264,073 $270,933 $282,091 $290,751 $311,361 $341,342 $362,433 Increases in value Name 2010 2011 2012 2013 2014 2015 2016 2017 480 Pt. Townsend -3.8% -15.5% 6.2% 4.0% 6.3% 2.6% 15.8% -3.5% 485 Port Hadlock 10.1% -10.8% 12.3% -15.4% 6.6% -1.9% 17.8% 1.3% 489 Port Ludlow -11.6% -9.1% -9.3% 15.0% 10.9% 4.2% 12.3% 29.6% 492 Quilcene 40.6% 4.5% 7.5% 5.0% -0.5% 9.7% 30.6% 130.1% 493 Brinnon 26.6% 41.3% -29.9% 0.4% 29.1% 2.0% 17.8% 40.6% Jefferson County 0.6% -12.5% 2.6% 4.1% 3.1% 7.1% 9.6% 16.4% Conclusion and Summary Although the subject property is located in an attractive rural setting, the Quilcene area is not a primary destination for residential development. The reason is that it is too far from established commercial centers offering services and jobs. Nevertheless it is an appealing location for home buyers with less conventional lifestyles or whose jobs do not require commuting to a city including retirees. The area also has appeal to those who have an interest in taking advantage of the extensive nearby recreational opportunities available in the Olympic Mountains and marine activities in Quilcene Bay and Hood Canal. -19- Job No. 1707 ContPraise Gallagher Property Average House Price Trends $600,000 $500,000 $400,000 $300,000 $200,000 V - - $100,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 —O—Pt. Townsend Port Hadlock —NO—Port Ludlow (Jefferson County —Quilcene —Brinnon After several years of depressed sales and significant price depreciation it appears that there has been a recovery in the local housing market as the economy of the greater Puget Sound area continues to improve and the spate of foreclosed houses and depressed sales has been cleared out of the housing inventory. This has resulted in rising home prices in the subject's market area. Nevertheless, home prices near Quilcene remain a bargain relative to the more populous areas of Jefferson County and other parts of the greater Puget Sound region. The subject is well positioned to capture demand from the segment of the rural housing market that may not be inclined to compete in higher priced markets. -20- Job No. 1707 ContPraise Gallagher Property SITE DATA -21- Job No. 1707 ComPraise Gallagher Property I _ 1 e .3 - Iy� j I I .I = Aj STREET MAP -22- Job No. 1707 ComPraise Gallagher Property SITE DATA Location and Access Referring to the map on the previous page the subject is located east of Rodgers Street in the village of Quilcene. The subject is accessed from this road which is a paved public road that connects to State Highway 101. This state highway links the Olympic Peninsula to the Kitsap Peninsula. Washington State ferry terminals in Bremerton, Kinston and Bainbridge Island provides access to downtown Seattle and the Seattle area. However, the distance to these ferries from the subject is well beyond the typical commute for employment. Land Area The general layout of the subject property may be visualized from the aerial photograph on page 4. The subject includes a total of about 0.88 acres located in the village of Quilcene. I have not been provided a survey of the entire property and assume that the acreage provided by the Jefferson County Assessor is an accurate indication of the subject's size. This is typically acknowledged to be the case as it is based upon data provided by the county's geographic information service. Zoning The subject has a Jefferson County zoning designation of Rural Residential (RR 115). The Jefferson County Municipal Code notes: This district provides a transitional area between the rural residential one per five -acre district and the rural residential one unit per 20 -acre district. Its intent is to preserve open space, protect critical areas, provide for the continuation of small-scale agricultural and forestry, and preserve and retain the rural landscape and character indigenous to Jefferson County. The primary allowable use in the RR 115 zone is single-family residential development. Multi -family use is not allowed except for residential care facilities up to 5 persons. In general, commercial uses are not allowed in this zone; however, home businesses are allowed. Soils I have not been provided a soils survey of the subject by a qualified soils engineer. In general, the primary issues associated with soils are the ability to support septic systems and residential improvements. While this could only be determined though a survey by a soils engineer, the existing residential improvement and the septic system on the subject indicate that the subject can accommodate residential use. Historic and Present Use The subject has an existing residential improvement and has historically been utilized for residential purposes since 1920 when the improvement was constructed. Minerals To the best of my knowledge there are no commercially valuable mineral deposits on the subject. -23- Job 23 - Job No. 1707 ComPraise Gallagher Property Environmentally Sensitive Areas & Flood Zone Although I am not a critical areas specialists, my inspection of the subject did not reveal any obvious indications of wetlands or significant streams on the property. I investigated the environmentally sensitive areas map provided by the Jefferson County JMAP database that is provided on the following page. This map indicates that the entire subject is within the High Risk Channel Migration Hazard Zone (highlighted in red) of the nearby Big Quilcene River. A representative of the Jefferson County Planning Department noted that the county's critical areas map is not intended to be a definitive survey of channel migration potential. However, the county's land use permitting process would require a further study to determine if portions of the property are considered to be located in the channel migration hazard area. Jefferson County typically does not allow buildings to be constructed in the High Risk Channel Migration Hazard Zone. It appears that the residential improvements fall within the High Risk Channel Migration Hazard Zone. However, since it was constructed prior to the enactment of the county's critical areas regulations it is considered to be legally non -conforming. The current Jefferson County regulations would allow replacement of the house as long as the new structure remains in the existing footprint. While it may be permissible to increase the height of a new improvement, this would need to be in accord with the requirements of the Jefferson County zoning and building codes. Flood Zone As illustrated on the flood hazard map on page 26, about 95 percent of the subject is located in the flood hazard area (crosshatched) of the Big Quilcene River. This flood map was provided by the Jefferson County JMAP system that is based upon FEMA flood maps. Because detailed analyses are not performed for such areas; no depths or base flood elevations are shown within this zone. The Jefferson County Code requires that any new residential construction have the lowest floor, including basement, elevated one foot or more above base flood elevation. Other specific requirements apply to crawlspaces for structures built in a flood hazard area. Topography The subject property is generally level and at an elevation of around 20' throughout the property. The property has a territorial view. Vegetation Referring to the aerial photograph on page 4, the subject is mostly cleared with trees along the north and south boundaries providing some privacy. Hazardous Materials I am unaware of any toxic contaminating materials either in the subject soils or within any of the subject premises. This appraisal assumes that the subject property is free and clear of all contamination that may be associated with any hazardous material. However, this assumption should not be construed as a guarantee that this is the case. -24- Job No. 1707 ContPraise Gallagher Property HIGH RISK CHANNEL MIGRATION ZONE MAP -25- Job 25 - Job No. 1707 ComPraise Gallagher Property Improvements FLOOD HAZARD MAP -26- Job No. 1707 ComPraise Gallagher Property The subject is improved with a stick -framed house described as follows: The house was built in 1920 and totals 1,608 square feet based on my measurements. It should be noted that the Jefferson County Assessor reports that the house totals 1,364 square feet. The assessor's area appears to not include closets and a dormer in the upper floor of the house. The basic layout of the house is illustrated on the following page as provided by the Jefferson County Assessor. The exterior of the house has painted Cedar siding. The foundation is partially concrete perimeter walls and piers. The roof has asphalt composition shingles. • The house has 3 bedrooms and lfull bathroom. The house has several additional rooms without closets. The house is partially remodeled with mostly unpainted wall and unfinished floors. The interior of the house has predominately painted drywall ceilings and walls. The floors are presently unfinished wood. The bathroom and kitchen have ceramic tile floors. The kitchen has new wood cabinets and laminate countertops. The windows are single -paned wood. There is a free-standing wood stove in the living room and electric wall heaters elsewhere for heating. There is a dining off the living room. There is a small laundry room off the bathroom. • There is a covered 224 square foot wood porch at the entry on the west side of the house. • There is a covered 72 square foot wood porch on the north side of the house. • Overall, the house is considered to be in fair condition. Utilities The property has electrical power to serve the existing improvement on the subject. There is no sewer district serving this area and waste from the subject's improvements is treated by an on-site septic system. Water for the residence is provided by a community water system. The property also contains an on-site well which is presently not used. Real Estate Taxes and Assessments By statute, properties in the state of Washington are to be assessed at 100% of market value. The current Jefferson County assessment and tax statement for the subject's parcel is noted below. This is somewhat higher than the estimate of the subject's market value based upon the analysis of this appraisal. This discrepancy may be due to the fact that the subject improvement is presently being remodeled and the market value would most likely be higher once the remodeling is complete. Parcel Number Land Assessment Imp. Assessment Total Assessment Taxes 991200407 $54,000 $65,415 $119,415 $1,829.43 -27- Job No. 1707 ComPraise Gallagher Property MA [Area. ` 1'2% ftl 1 ft [Area: 336 ftj IA P B L y° v_ 2 24 HOUSE LAYOUT -28- Job 28 - Job No. 1707 ComPraise Gallagher Property HIGHEST AND BEST USE -29- Job No. 1707 ComPraise Gallagher Property HIGHEST AND BEST USE Highest and Best Use "Highest & Best Use" is defined by The Appraisal Institute as: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. The our criteria the highest and best use must meet are: legal permissibility, physical possibility, financialfeasibility and maximum profitability. " Source: The Dictionary of Real Estate Appraisal, Third Edition, Copyright 1993, published by the Appraisal Institute. The highest and best use analysis provides the foundation for a value conclusion by identifying the specific market position of a subject and thereby specifying appropriate market comparisons for it, as well as the relevant approaches to value. It is governed by consideration of the property's legal, physical and economic potential. If the property is improved, the process requires separate analysis of the land as though vacant and the land as improved. This provides the basis for a conclusion as to whether the improvements adequately contribute to overall value as to continue to be the preferred use, or whether an alternate use would better support the land value. Highest and Best Use as if Vacant The highest and best use of the subject as if vacant is guided by its Jefferson County zoning designation of Rural Residential 115, which requires a minimum lot size of 5 acres for new development lots. Although the subject parcel is less than 5 acres it nominally qualifies for one residential development right as legally platted non -conforming parcel. Although I am not a certified critical areas specialist, during my site inspection of the subject I did not observe any obvious indications of environmentally sensitive areas on the subject. I also consulted a map that was provided by the Jefferson County Assessor, which indicates high hazard channel migration zone and flood hazard area cover much of the subject property. With respect to physical feasibility the subject has good access to a paved road with available electrical power. The critical areas have been identified on the subject and there appears to be insufficient land outside of these areas to support residential development. Based on an informal conversation with a representative of the Jefferson County Planning Department, there is a very low likelihood that their department would approved a permit for residential development of the subject property due to the critical areas identified on the subject property. The property is located in an attractive rural area near the Hood Canal shoreline and Olympic National Park that provide positive amenities for rural recreational use. As to the economic feasibility for recreational use there is a historically active market for rural recreational land parcels in the greater Quilcene area, and this is considered to be a very feasible use of the subject land as if vacant. -30- Job No. 1707 ComPraise Gallagher Property Highest and Best Use As Improved Since the land is improved with a residence and associated outbuildings it is necessary to consider whether they provide a viable economic contribution. While the house is rather small at 1,608sf, it is of sufficient size to support residential use and is also in fair condition such that it would be expected to function for decades after completion of the current remodeling project. The residence appears to be inside the environmentally critical areas previously discussed in this report. However, it is considered to be a legally non -conforming use since it was constructed well before the enactment of Jefferson County's critical areas regulations. Although the footprint of the house may not be expanded, an additional story could be added. Thus, the ability to create a typically sized residence is not constrained. There is good road access and electrical power to the site. The property is served by a functional septic system and community water system. The house is presently being remodeled and requires cleanup and completion of several projects prior to use. Given the upgrades which have been completed or are partially completed, the house is considered to be in fair condition. With these factors in mind the maximally productive highest and best use of the subject is concluded to be for single-family residential use of the existing improvement, which appear to have many years of remaining useful life after completion of the current remodeling project. Highest and Best Use Conclusion With the foregoing considerations in mind, it is my conclusion the highest and best use of the entire subject property is concluded to be for single-family residential use of the existing improvement, which appears to have many years of remaining useful life after completion of the current remodeling project. -31- Job No. 1707 ComPraise Gallagher Property LAND VALUATION -32- Job No. 1707 ComPraise Gallagher Property PROPERTY VALUATION Introduction Identifying differences in the relevant elements of comparison between a given subject and the sale comparison properties is essential in the valuation process and any significant differences must be adjusted either quantitatively or qualitatively in the analysis. Therefore, it is important to have a good understanding of the comparable properties' attributes. On the following pages I have provided maps showing the location of the 6 comparables relative to the subject. Following that are individual data sheets providing details of each property's physical characteristics and sales transaction and photographs of the comparables. Comparable Analysis Analysis of the comparable sales is based upon the elements of comparison noted on the adjustment grid on page 46. These are the various property characteristics as well as the variables inherent in property transactions that determine the difference in prices paid for comparable properties relative to a given subject. The appropriate unit of comparison in the direct sales comparison analysis is gross sales price, since this is the basis upon which both the typical buyer and seller would base their transaction of a residence. The adjustment grid provides specific data and descriptions of each comparable as well as the subject and then makes appropriate adjustments. The adjustments are based upon the appraiser's investigation of each property that included data provided by the Jefferson County Assessor, Northwest Multiple Listing Service, and discussion with a party involved in the various transactions when possible. It should be noted that the comparables are adjusted to correspond to the subject. Thus if the comparable has a superior attribute to the subject the adjustment is negative, and vice versa. The grid focuses on attributes pertaining to physical and location characteristics. There are, however, other important elements of comparison that have been considered but not detailed on the grid because there are no significant differences between the subject and the comparable sale properties. To be specific the property rights of the subject as well as the sales of comparable are of the fee simple interests. The Uniform Standards of Professional Appraisal Practice allows for quantitative as well as qualitative adjustments between a subject and sales comparables. In general it is acknowledged that the preferred method of adjusting comparable sales is through the use of quantitative adjustments whenever adequate market data exists to support them. However, it is also well acknowledged in appraisal practice that market data is often too imprecise to support specific quantitative adjustments for most elements of comparison and therefore qualitative adjustments are often justifiably relied upon. I have performed adjustments for the various relevant elements of comparison on a qualitative basis that weighs the impact of the respective attribute upon the total property value with a plus (+) and minus (-) system. While it is also common for residential property to be appraised with quantitative adjustments applied to account for differences in the elements of comparison, in my opinion this does not result in a more credible value conclusion and often results in a less credible conclusions. 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U O rl N Gallagher Property i Job No. 1707 04;11512013 -45 - ComPraise Gallagher Property Job No. 1707 04;11512013 -45 - ComPraise Gallagher Property IMPROVED SALES COMPARISONS DATA Sebjat Comparabkl Compmabk2 Comparable3 Comparabk4 Comparables Comparable6 T.ID#:991200407 T. M H: 702213001 T.ID#:702231011 T.M#'.956100014 T. M H'. 956100006 702133021 T. M V. 702134031 161 Rodgers WM 29'!542 Highway 101 63D—a Smakmv Road 14870 C®tor Road 14740 C®ter Road 50 Walken Strvi 450Fravk Bak Road A.ftt. Q.2— Q.fl— Adj Qv0— Adj Qa0cene Adj Qe0— Adj Qa0cene Adj Qv0— Adj (Sale Dme)D -16 3—, (SamDate)Sep-14 31mm (SamDm)Sep-15 18mm (SamDate)D -15 15mm (Sale Date)Jul-16 Senna (SamDme)Avg-13 44mas Sale Price 550,000 Saleprlce 565,000 Sale Price 585,6110 Saleprlce $92,59 Saleprl. 5156,000 S.Iepi. 5119,900 D—iptiov/Feartums H—C— Softwood Floc Cwa: Carpet, Vivyl Floor Cwa: Cvarvrc Tile Floor Cwen: Vioyl,Carpet FI—Ca: Carpe[&Vinyl Floor Cwa: Hardwood,Softwood. Floor Cwa: Hardwood,Capa&Vivyl A,li.. : WashaIDryv Aenb..: RavgaW ., Ah,, : Nene !,H... Ravg. ., A¢pH..: Dishwasher & Vivyl Ah,, : Ravg&W. Ioteia F.Nms: Swgle-Pa &Woad Re,*—ta Iotaia FwNres:C tml A/C Washa/Dya,Refrigaator Intens F.Nres: Cealivg Ams: Raogel�®, Int F�:D .g Ra Single Wmdows,Waad Stwe,D'mmg Rvav mteior Feabv.: Dmble Sit F.hv.: Not RTpv d Iota-Feativ.: Diivg Fay. SmgleP .dWmd— Reftigemtor, Washa/Drya Pav M..d Windows, 1.g Fav, Sit F.hv.:T .Cw—dP h. P.M/Stmv Wivd— Ra S.glePaved/Wood Site F.hv.: Patio, P.P.a, rata-Feabv.: Dmivg Ro Landry Ra Walk -IV C7met Sik F.mr.: WtbOdmgs Wivdwvs,Lsmdry Room Ah6M Garage, Hat Tvb, Dwble-Peved&S.gleP .d Sit F.mr.: Wtbvlldmgs, Partrally Site F.hv.: Dd he d Wth fidmgs,Partia0y Wivdovs Fenced Garage Fenced Sit F.mr.: Pact, De he d Garage, Fu0y F..d Quality Fav Fair = Fair = Avvage - Fair = Avvage - Avvage - Y.rB.lkCmdkin 19201Fair 1940/Fair = 1940/Pas + 1950/Avvage - 1968/Fav = 1951/Avvage - 1920/Good -- R.IrvpSize(FmishM) 1,w8sf 1,2Wd + 1,092.E ++ 1,260.E + 1,584.E = 1,024 = 1,99Ssf - Bedmvva 3Bedravm 2M— + 3Bedray. = 3Bdray. = 4Bdravva - 4Bedray. - 3M— = Bathmays 1 Full 1 Full = 1 Full = 1 Full = 1 Full = 1 Full = 1 Full = Dmivg Ravv/Dm Di ivg Rave Nme + + D .g Raav = Nme + Di ivg Rave = Nme + Fireplace 1 Waodsmve 1 W.As = 1 Waodskwe = 1 Fireplace Ivsert = 1 F.Tl—l.sat = 1 Waodskwe = 1 Woodstwe = Dak,/m Cwaed229sfWood Porch& C—d 148sfP &. + Nme + Cwaed 9&fpr h. + C—d2000.tm = CWaed 60sfG —v Pack + C—d 144sfP &. + Cwaed72 M.dPor h GamgecC . Nme Nme = Nme = Dehched44090amge - Afta6ed4SNfG.p - Dehchd 74sfGamge = Aft.&d 564sfCarpvt - W h.ffdmgspaml Nme 256sfShed - e = Nme = 500sfShp - Nme = S-1 SmallWh fldip - Lot Size O.SSac O.SSac = 3.00ac - 0.33ac + 0.69ac = 0.94ac = O.81. = Vilma Frmmge Nme Nme = e = Nme = Nme = Nme = Nme = Viv Ta -.l Ter —1 = Ter -.l = Terkaml = Ta k ial = Glympic Mommms - GTympic Mommms - Privacy private private = private = Nearby Neighbors + Nearby Neighbors + Nearby Neighbors + private = Critical Areas 95% Fm Hazard Zme Nme — Nme — Nme — Nme — Nme — 5% Flood Hazard Z- 10 .Iligh Rink Cb-1Mgretim Zme 104 MmdemteRiek Cbme1 NLgretiov Zove E.t—denary SkeCmditims Nme Highway Ni, Wkff&Sept ++ Highway Noise + Highway Noise + Road Noise&Adjacent ++ Nme = Neu High Voltage Pmva Liv. + SyA—Na'd Repl—t T.N kYard L—ti.. Qudcene 2.6M0.SW ofQuilcene + 1.OMd.SW ofQuilcene + Quilcene = Qudcene = Quilcene = Qudcene = CmditimsofSale Fee Simplelvtve.2 Fce Shvplemff4 = Real Est@Cmtiact - Bk Sale + HUD Sale + Fee Simplelvtvest = Bk Sale + MmkH Adjustrment (Dat—N.Iuatm)Apr-17 3— = 31mm + 18mm + 15mm + 8— = 44 mm ++ AppraisalValve Coaclesiov ( mll Adpu t i -i -F Dvaall Adjustrvent i -i -F I Wvall Adjushvent + Wvall Adjushvent + Dvaall Adjustrvent --- Omll Adjushvent -- SIOO,OW CavW.WVakf Mi. Low(W) Cvvparable Vame lvdiratm Low(W) CvvW.WVame Miratim L-+(+2) Cavy—WVameMintim Low(+I) Cvvparable Vamelvdi.tim High (4) Cvvparable V.teldicatm High( -2) Job No. 1707 -46 - Com mra WBaghe pmty is that, as noted above, for most (but not all) elements of comparison it is very difficult to derive an appropriate quantitative adjustment. The first challenge is to accurately derive the replacement cost of the particular attributes such as a bathroom or bedroom. The next challenge is to accurately account for the impact of both physical and functional depreciation that may exist between each comparable and the subject in dollar terms. The difficulty of accurately performing such an analysis is underscored by the fact that while some appraisers may attempt to value residential property through a series of quantitative adjustments to the various components, typical buyers in the marketplace do not. Rather, they more commonly make qualitative comparisons and compare the total price of various properties to derive relative value conclusions among them. Alternately, the use of a weighted measure such as plus and minus designations readily reflects differences in the utility of a particular attribute of a given comparable relative to the subject. Equally important, it is easy to see whether such adjustments have been performed consistently among all of the comparables. The adjustment grid show the different weighted adjustments performed to the comparables to account for the various differences in the value impacting elements of comparison with the subject. The Overall Adjustment provides a composite weight for the cumulative adjustments and thereby shows how each comparable's sale price fares as a relative indication for the subject. Referring to the grid on the previous page the Overall Adjustment provides a composite weight for the cumulative adjustments and thereby shows how each comparable's adjusted sale price fares as a relative indication for the subject. The range of adjusted sale prices for the comparables is $50,000 to $156,000. Among these, numbers 1 and 2 are noted as being low value indicators (+4) for the subject at $50,000 and $65,000, respectively. Comparable 3 is noted as a low value indicator (+2) at $86,600. Comparable 4 is noted as a low value indicator (+1) at $92,500. Comparable 5 is noted as a very high value indicator (4) at $156,000. Comparable 6 is noted as a high value indicator (-2) at $119,900. The foregoing comparable analysis supports a value conclusion for the subject at $95,000, which is well bracketed by the range of the comparable data. FEE SIMPLE VALUE.................................................................................................................. $100,000 Date of Value April 7, 2017. -47- Job No. 1707 ComPraise Gallagher Property ADDENDA Title Report CONDITIONS 1. The term mortgage, when used herein, shall include deed of trust, trust deed, or other security instrument. 2. If the proposed Insured has or acquired actual knowledge of any defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commitment other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such knowledge to the Company, or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to paragraph 3 of these Conditions. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies committed for and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or create the estate or interest or mortgage thereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions and Conditions and the Exclusions from Coverage of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this Commitment except as expressly modified herein. 4. This Commitment is a contract to issue one or more title insurance policies and is not an abstract of title or a report of the condition of title. Any action or actions or rights of action that the proposed Insured may have or may bring against the Company arising out of the status of the title to the estate or interest or the status of the mortgage thereon covered by this Commitment must be based on and are subject to the provisions of this Commitment. 5. The policy to be issued contains an arbitration clause. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. You may review a copy of the arbitration rules at< http.//www.alta.orq/>. Form 5011600 (8-1-09) Page 2 of 2 ALTA Commitment (6-17-06) Frrst American ritle Privacy Information We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our subsidiaries we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information that you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means, • Information about your transactions with us, our affiliated companies, or others, and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. Information Obtained Through Our Web Site First American Financial Corporation is sensitive to privacy issues on the Internet. We believe it is important you know how we treat the information about you we receive on the Internet. In general, you can visit First American or its affiliates' Web sites on the World Wide Web without telling us who you are or revealing any information about yourself. Our Web servers collect the domain names, not the e-mail addresses, of visitors. This information is aggregated to measure the number of visits, average time spent on the site, pages viewed and similar information. First American uses this information to measure the use of our site and to develop ideas to improve the content of our site. There are times, however, when we may need information from you, such as your name and email address. When information is needed, we will use our best efforts to let you know at the time of collection how we will use the personal information. Usually, the personal information we collect is used only by us to respond to your inquiry, process an order or allow you to access specific account/profile information. If you choose to share any personal information with us, we will only use it in accordance with the policies outlined above. Business Relationships First American Financial Corporation's site and its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites. Cookies Some of First American's Web sites may make use of "cookie" technology to measure site activity and to customize information to your personal tastes. A cookie is an element of data that a Web site can send to your browser, which may then store the coolie on your hard drive. FirstAm.com uses stored cookies. The goal of this technology is to better serve you when visiting our site, save you time when you are here and to provide you with a more meaningful and productive Web site experience. Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public record and emphasize its importance and contribution to our economy. Use We believe we should behave responsibly when we use information about a consumer in our business. We will obey the laws governing the collection, use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect, use and disseminate. Where possible, we will take reasonable steps to correct inaccurate information. When, as with the public record, we cannot correct inaccurate information, we will take all reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services, our employees and others in our industry about the importance of consumer privacy. We will instruct our employees on our fair information values and on the responsible collection and use of data. We will encourage others in our industry to collect and use information in a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain. Form 50 -PRIVACY (9-1-10) Page 1 of 1 1 Privacy Information (2001-2010 First American Financial Corporation) Commitment No. 81863 _0000'���F4..- JEFFERSON TITLE COMPANY 2205 Washington Street, PO Box 256, Port Townsend, WA 98368 Phone: (360) 385-2000 / Fax: (360) 385-6967 SCHEDULE A Commitment No.: 81863 Seller : Gallagher Buyer : Jefferson County Public Works Reference 991 200 407 Effective Date of Commitment: December 14, 2015 at 8:00 A.M. Prepared For: Jefferson County Public Works Will Butterfield 623 Sherdian Street Port Townsend, WA 98368 Inquiries Should be Directed to: Jefferson Title Company Researched By: Susan Brandt Pagel of 5 Your title officer for this transaction is Susan Brandt. If you have any questions concerning this title commitment, please do not hesitate to call me at (360) 385-2000 or e-mail susan@jeffersontitlecompany.com By: Susan Brandt, Title Officer 1. Policy or Policies to be issued: Cancellation Fee (a) ® ALTA Owners Policy Standard Premium $ 60.00 Proposed Insured: Tax $ 5.40 Jefferson County, a municipal corporation 2. The estate or interest in the land described or referred to in this Commitment and covered herein is Fee Simple. 3. Title to said estate or interest in said land is at the effective date hereof vested in: Michael T. Gallagher, as his separate estate Commitment No. 81863 Page 2 of 5 4. The land referred to in this Commitment is located in the County of Jefferson, State of WA, and described as follows: Lots 16, 17, 18, 19 and 20 in Block 4 of Quilcene, as per plat recorded in Volume 2 of Plats, page 33, records of Jefferson County, Washington; TOGETHER WITH that portion of vacated Fremont Avenue, as vacated under Resolution 957-00 of the County Commissioner of Jefferson County, that would attach by operation of law. Situate in the County of Jefferson, State of Washington. Commitment No. 81863 Page 3 of 5 SCHEDULE B Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company. A. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records B. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry or persons in possession thereof. C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public record. E. (A) Unpatented mining claims; (B) reservations or exceptions in patents or in acts authorizing the issuance thereof, (C) water rights, claims or title to water; Whether or not the matters excepted under (A), (B), or (C) are shown by the public records; (D) Indian tribal codes or regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes. F. Any lien, or right to a lien, for services, Labor or Material therefore or hereafter furnished, imposed by law and not shown by the public records. Any lien, or right to lien, for services, labor materials or medical assistance theretofore or hereafter furnished, imposed by law and not shown by the public records. G. Any service installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity. H. Defects, liens encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value the estate or interest or mortgages thereon covered by this Commitment. LPB Commitment No. 81863 Special Exceptions: Page 4 of 5 1. Lien of the real estate excise sales tax and surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate is 1.78%. Tax code RCW Chapter 82.45. Delinquent General Taxes. Year: 2015 Amount Billed: $ 1,104.95 Amount Paid: $ 0.00 Amount Due: $ 1,104.95, plus interest and penalty Tax Account No.: 991 200 407 Property ID No.: 41691 Assessed Value: $ 115,619.00 Delinquent General Taxes. Year: 2014 Amount Billed: $ 953.96 Amount Paid: $ 0.00 Amount Due: $ 953.96, plus interest and penalty Tax Account No.: 991 200 407 Property ID No.: 41691 Assessed Value: $ 115,619.00 Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records. 4. Record of surveys recorded September 9, 1997, April 17, 1998 and May 10, 2002 under Recording Nos. 403559, 409810 and 455721, said survey discloses the following matters: Encroachment of a rail fence 5. 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. Terms and conditions contained in Vacation Resolution No. 57-00 recorded under Auditor's File No. 434764, as follows: Utility rights, private easements, or other rights or interests may still exist. Affects that portion of said premises lying within vacated Fremont Street. LPB Commitment No. 81863 Notes: Page 5 of 5 The land described in this commitment appears to be residential in nature and may be subject to the provisions of RCW 6.13.010, et seq. (homestead statute) if the land is occupied as a primary residence. If the land is occupied as a primary residence, RCW 6.13.060 requires that all documents conveying or encumbering the land must be executed by each spouse or domestic partner, individually. Alternatively, the company will accept a deed identifying the non -vested spouse occupying the property as the Grantor and the vested spouse as the Grantee. In the event that the company receives documents to insure that are not executed as required, the company may be unable to record or to insure the transaction. Please contact your Title Officer if you have any questions. End of Special Exceptions A. The legal description in this commitment is based on information provided with the application and the public records as defined in the policy to issue. The parties to the forthcoming transaction must notify the title insurance company prior to closing if the description does not conform to their expectations. B. Abbreviated Legal Description: Lts 16 - 20 Blk 4 Quilcene C. According to the application for title insurance, title is to vest in Jefferson County Public Works. Examination of the records discloses no matters pending against said party. Schedule C The following are the requirements to be complied with: 1. Instruments necessary to create the estate or interest or mortgage to be insured must be properly executed, delivered and duly filed for record. 2. Investigation should be made to determine if there are any service, installation, maintenance or construction charges for sewer, water or electricity. 3. In the event this transaction fails to close, a cancellation fee will be charged for services rendered in accordance with our rate schedule. :E.FEMSON MUNTY EXCISE M Ad. Nolt a pmt. V 0P. G If 1 U s n co; ':JS f3sta :; A wan C? 107 AFTER RECORDINGMAIL TO: L DR! JGc J c F E2S0.'. v •'"OiTOR Name QIWIs YW1�l i _ E?UTY Address P Q BOX Ba WA MMI City, State, Zip Filed for Record at Request of 4115095 r STATUTORY WARRANTY DEED ' l THE GRAN'rOR S Ronald D. Shea and Connie J. Terrplin, fonTerly k as n' J. Shea, as Tenants in eamm— For and in conside2tionofore Dollar and Other Valuable Considerat'6n ( in hand paid, conveys, and wart -auras to MICHAEL T. Gallagher, a Sing n ; c i the following described real estate, situated in the County of Jefferson state of Washington: s Cots 16, 17, 18, 19 and 20 in block 4 of Quilcene, as orded in Vol. 2 of Plats, z page 33, records of Jefferson County, Washington. St16JECi TO matters disclosed by survey under recording No. 403559, in Vol 19 of survey-, page 38, Jefferson County, Wash c Situate in the County of Jefferson, State of _ hi n. p 17 O Assessor's Prooerry Tax Parcei/Accoun.,N . ber. 991 2DO 407 Dated th- day y By / By to alti /R aid D. nme By By - -- --- - MUM AR - - --- - r statsofwashnato ) ATE /WASHINGTON Stare ofwashirsdoto 4i=ft iBt}d—•-Jl�(lON 0 Y—•— PUBLIC A MIS � County ofJeffe n } co 10!1 DO'l1iES M1 -i4 -m County of Jefferson N: LUM V N3VVX 1 I certify that tet w or h� ve ati5factory evidence 1 certify that I know or have sadsfarrory evidenm s E4athat Q=ip 1=1 in (rs/are) n appeared before me. (rsJare) the persons) who appeared before me, and d ns wledged that (he/she/they) and said persons) acknowledged that (he/she/they) sio a and acknowledged it to be signed this instrument and acknowledged it [o be �r/ Crce and voluntary act for the uses (Ftis/her/their) free and voluntary act for rhe rises p e e boned in this ins[ anent, and purposes men in this instrument. Dated: -9 i No lie ire and for [fee Bate of WasFtirracon Notary) Public in and for the State of Washington Cpn expires 10-14-01 ComrnL4on expires //,7 'OCT 9 1998 R y0.3f,�9 DRAWING NUMBER DRAWING NUMBER I D Vol 19 ps 38 101 p� C (9 0 m W • � 0 o z N rn N m S C.1 ° o K V O { m RODGERS STREET _ w L 125.20 i F o' 'P 125.20 o Z SO'55'35"W Z Z n - 50'55' 34'1! 40. 35 Ii D 0 > t o 7$' LX 1 9 V J _ o i mz o P a 30 z z I Z 2 a acox r ID � %4\0\ ✓' m v 11K 0 y o mea f 80 CD� 2 Cl) Z- F m O m N P 3 T P m 125.21 SI09 "u Dw TRAIL m0 m OR HOUSEZ 9 r m a <C, O 0 v o� T I C + cri I r oroO c m c z m cT m I z =woo Im m > wr - m ZOO M ul o G7 m m Cl) Z CA Z 0 N • V W N � OI UI >@ Do m W \ M ti C C Z m 4 o= cocpm <o n �Jr p >Im Z Aa C - Ic5 g m oIm rn rn o Z N / Z - m - 47 N z n o ru NZ m r I o li 3 e m m' 1 DRAWING NUMBER DRAWING NUMBER ems' Lo 9.098!0 ,. a.'�;.�;�'�" v\o °'1D vT1 S Z a o ems' Lo v\o °'1D vT1 = y `. ZL Z 2 N m Fm1 _ - nio ulN� 0 y J 0 r r P a o N ly I r L_ s o a s RI 70.00 to _ A a z fE t V C � ( � 13A Si S l-o(r- 13 EAf2r.l c>S Se 3s" 2 (e 4 3, 9,- M cs._ 3z19e -t�V a i T RODGERS STREET I� _ r y 125.20 A - Y SO'S8'35'4 40.75 \119.65 r A ° C) a n [4 OD (n o I li D 0 r W 0 m 0 0 �' IR) I I�y O s o I y°�S O n O u t� �I�� r r CI a O W .1 I I �T 3 J BEARINGS ASSUMED PER ..�� £'6 m I ➢ M 0 1,0 � 00 m VOL.19 OF SURVEYS PAGE 38 0 `� uo�"-�n 0roq '° I m !n-+� r o o j 125.22 so 55 35-u I I z 0 -1 I Z r r D D Z N ° I iRA I=16LOR H OUSE I W e� I J I f» rvT 0i (� _ U7 % o � Z r rn rn-0 1" x D 0 0 1 V' + rmi PlOx Ol�-� 1\ I I y D l I 0 O mmc3 O 1� D cm Tiro- moa^moues i 0 p 1 I ml Ui ` v rP Lei Z r L 9 nI TCCwov0 ml'' N Z90 `7-r4 I 00rrt� c.a..a�ro o I G G7 rnn I 0Tp Z p I j D~ I a L SPI 0 +�mxm•�rm+ v 3 COW O r z I rlNlvD 1 2 0 0 ��m£A T1 l 1r aTt�lZvi mm vm. r� O Z I F > ( 'Tf I T m —I '� C n C im'miou� o$v~'1„o c m OO O m ml I I= O T D s m Z r. rNyr mD 1$ ° p, Z commo V m O RJ .r Z I � � CD "0 � 'Iii DO z KFoz-=c `) O Z I V C a i d J� 0 CW ZLA a �rc"'v� C• j Tj C.!) I �\ .--. i !n C to 1Z tnm c m=Nimzm Yl I rl ml TV r' OOL 0tI U10 O(O zv .Wr. m,vrn t D 1 I I Z g m `,11 m� v m OAK>r zmmmoyp - ^� Om C of � of m D 90 pppi�-r11m�/ z N� Cf) p a ImlD ZD 3 lel x 0 �1� my p TI O �J�pv* m�In �_ o D C o f Z Iv Im r r 1pm£0 y 0 Mr- .� 1 �Ia 3 �p L o I T I p �p0 )> nd<�ii o c c° N ~ m 3n C4 C7 M z l I ^.� °a m o N ° I L 3 - z W Z �I 1 1 HA Zf, mZ AL.i0 m5 m I / 0 Z J rnA P1n n9 my + �� 0rl � co -.t IS I o �Ic N co.00 cool �D m�^o�100 < =iT - 9 mZPZ oZTS Z n -� r j G 0� "Z rN _ ala ru ala r r o z m N� r 0 M nP� r n i r V f'ril uJ A D 125-25 In a = So 5a, J3 -w L 0 0. HAMILTON AVE o 'vO 25.z3 1 N \\'•1 ____ —_�_________________.__. \ V N 1'II 02'E + C 1292. 33 S Z a �13Z1.98� O✓ 993.72 r __ _ 328.26 _—_____— _ - — No�S8'3S-E NO'58'35•'E NdSE'33 �� m _�_—______ u _�— _ ___ _ w 111• RODGERS STREET° � — 125.20 125.20 0 \ NO'58'35"E NO'58'35"E 40.35 Y79.6 r m m O L I I II Z° o m ? 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BEARING ARE ASSUMED PER ate`•' _ � I � ry PER VOL. 19 OF SURVEYS PAGE 38 zr� m> = i `r "I J � I IIIIII VIII IIIIIII VIII (III IIIIII VIII Ill VIII IIII ILII 434764 Jefferson County, WA JEFFERSON COUNTY ROA RESO 8.00 2.14P When recorded return to Jefferson County Public Works STATE OF WASHINGTON COUNTY OF JEFFERSON In the matter of x RESOLUTION NO. 57-00 Vacation of a Portion of Fremont Ave. x Plat of Quilcene x WHEREAS, the Jefferson County Board of Commissioners has reviewed a road vacation petition submitted by Tim Gallagher; and WHEREAS, the Jefferson County Hearing Examiner held a public hearing on the road vacation petition on June 15, 1999; and WHEREAS, the Jefferson County Hearing Examiner considered testimony of the public, comments from applicable departments, agencies and offices, and recommendation from the Jefferson County Public Works Department 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 considered 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, THEREFORE BE IT RESOLVED that the following be vacated and abandoned pursuant to RCW 36.87.140 and Jefferson County Road Vacation Ordinance No. 01-0102-96: That portion of platted, unopened Fremont Ave. being approximately 60 feet in width and 225 feet in length, adjoining Lots 16-20 of Block 4 and Lots 1-5 of Block 3, all located in the Plat of Quilcene, recorded in Volume 2 of Plats, Page 33, Section 24, Township 27 North, Range 2 West, records of Jefferson County, Washington. This vacation affects parcel numbers: 991200407 and 991200301 & 991200302. . Utility rights, private easements, or other rights or interests may still exist. ADOPTED THIS DAY OF �uYl �_ 12000. JEFFERSON BOARD OF a r W t len ,tin'g SEAL: J Dan Harpole, ATT ST: Lorna L. Delaney Clerk of the Board � v Q JLil 1 2 3 4 5 8 7 8 9 10 z 1 2 3 1\. 5F.FF-i9ii- 1 2 3 4 5 6 7 8 9 10 > 111111111 111011111 � v Q JLil 1 2 3 4 5 8 7 8 9 10 z 1 2 3 1\. 5F.FF-i9ii- 1 2 3 4 5 6 7 8 9 10 > [ . r '•7 •7 � J ['z Ir This sketch is provided, without a charge, for your information. It is not intended to show all matters related to the property including, but not limited to, area, dimensions, easements, encroachments or location of boundaries. It is not a part of, nor does it modify, the commitment or policy to which is attached. The Company assumes NO LIABILITY for any matter related to this sketch. Referenced should be made to an accurate survey for further information. du Vag-. rr- r6- Jj h AN I h k du Vag-. rr- r6- Jj L ru Ff� M 0 N T kill,'�illl ATTAN006 h AN k L ru Ff� M 0 N T kill,'�illl ATTAN006 All 'NC r 20 /7116 13 J2 6o s s•+ ! s' 4a 6, r S AE DW LL, All Till`ii.4 F.i7 tis 1 r - -101 /F�GZ.��fI�Clr ��: rf: ��` fll J t�• �a. ��r ��i�/ rr IM011 r.W/• C�c A� AN All 'NC r 20 /7116 13 J2 6o s s•+ ! s' 4a 6, r S AE DW LL, All Till`ii.4 F.i7 tis 1 r - -101 /F�GZ.��fI�Clr ��: rf: ��` fll J t�• �a. ��r ��i�/ rr IM011 r.W/• C�c A� - .00� JEFFERSON TITLE COMPANY Jefferson Title Company, Inc. 2205 Washington Street PO Box 256 Port Townsend, WA 98368 Phone: (360) 385-2000 Fax: (360) 385-6967 SUPPLEMENTAL #1 TO THE FIRST COMMITMENT Attention: This Supplemental contains changes which impact Title to Property set forth in the above referenced commitment. Prepared For: Jefferson County Public Works Will Butterfield 623 Sherdian Street Port Townsend, WA 98368 Commitment No.: 81863 Reference No. : 991 200 407 Seller : Gallagher Buyer : Jefferson County Public Works Schedule "B" ® Paragraph 2 of the preliminary commitment is amended as follows: 1. General Taxes. The first portion $ 609.84 becomes delinquent after April 30th. The second portion $ 609.75 becomes delinquent after October 31St Year 2017 Amount Billed: $ 1,219.59 Amount Paid: $ 0.00 Amount Due: $ 1,219.59, plus interest and penalty, if delinquent Tax Account No.: 991 200 407 Property ID No.: 41691 Assessed value: $ 119,415.00 Delinquent General Taxes. Year: 2016 Amount Billed: $ 1,142.12 Amount Paid: $ 0.00 Amount Due: $ 1,142.12, plus interest and penalty Tax Account No.: 991 200 407 Property ID No.: 41691 Assessed Value: $ 119,415.00 Delinquent General Taxes. Year: 2015 Amount Billed: $ 1,104.95 Amount Paid: $ 0.00 Amount Due: $ 1,104.95, plus interest and penalty Tax Account No.: 991 200 407 Property ID No.: 41691 Assessed Value: $ 115,619.00 Delinquent General Taxes. Year: 2014 Amount Billed: $ 953.96 Amount Paid: $ 0.00 Amount Due: $ 953.96, plus interest and penalty Tax Account No.: 991 200 407 Property ID No.: 41691 Assessed Value: $ 115,619.00 ® Except as the matters reported hereinabove, the title to the property covered by this order has NOT been reexamined. Dated as of April 10, 2017 at 8:00 A.M. Jefferson Title Company, Inc. By: Susan Brandt, Title Officer '0000 JEFFERSON TITLE COMPANY Jefferson Title Company, Inc. 2205 Washington Street PO Box 256 Port Townsend, WA 98368 Phone: (360) 385-2000 Fax: (360) 385-6967 SUPPLEMENTAL #2 TO THE FIRST COMMITMENT Attention: This Supplemental contains changes which impact Title to Property set forth in the above referenced commitment. Jefferson Title Company, Inc. 2205 Washington Street Port Townsend, WA 98368 Danielle Ferrero Commitment No.: 83098 Seller : Bowers Buyer : Jefferson County Schedule "A" ® All future correspondence and billing is to be directed to the above shown address Schedule "B" ® Except as the matters reported hereinabove, the title to the property covered by this order has NOT been reexamined. Dated as of April 14, 2017 at 8:00 A.M. Jefferson Title Company, Inc. By: Susan Brandt, Title Officer Commitment for Title Insurance ISSUEO BY First American Title Insurance Company Commitment FIRST AMERICAN TITLE INSURANCE COMPANY, a Nebraska corporation ("Company"), for a valuable consideration, commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the Proposed Insured named in Schedule A, as owner or mortgagee of the estate or interest in the land described or referred to in Schedule A, upon payment of the premiums and charges and compliance with the Requirements; all subject to the provisions of Schedules A and B and to the Conditions of this Commitment. This Commitment shall be effective only when the identity of the Proposed Insured and the amount of the policy or policies committed for have been inserted in Schedule A by the Company. All liability and obligation under this Commitment shall cease and terminate 180 days after the Effective Date or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue the policy or policies is not the fault of the Company. The Company will provide a sample of the policy form upon request. In Witness Whereof, First American Title Insurance Company has caused its corporate name and seal to be affixed by its duly authorized officers on the date shown in Schedule A. First American Title Insurance Company —//,e �- Dennis J. Gilmore President Av� 4�- 7 - Timothy Kemp Secretary (This Commitment is valid only when Schedules A and B are attached) This Jacket was created electronically and constitutes an original document Copyright 2006-2009 American Land Title Association. All rights reserved. The use of this form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Form 5011600 (8-1-09) Page 1 of 2 1 ALTA Commitment (6-17-06) Appraiser's Experience Data ComPraise 425 Ericksen Avenue NE, Suite 215 Bainbridge Island, WA 98110 George A. Brooks (206) 201-3557 Email: george@compraisexom In September of 2015, George A. Brooks established the firm ComPraise. Prior to that he worked with Stephen Shapiro Commercial Appraisal, LLC from 2011-2015 Mr. Brooks has held a variety of professional positions throughout his career, including environmental engineer, hazardous waste engineer, environmental consultant, environmental manager and general contractor. Prior to becoming a certified general appraiser he managed his own contracting company, Sound Earth Services. Mr. Brooks has a broad range of appraisal experience over a variety of property types including office and industrial buildings, commercial land, residential subdivision property, natural resource and habitat land, timberland and high-end estate homes. He has appraised numerous properties for conservation easements as well as right of way acquisitions under eminent domain. Mr. Brooks is licensed as a certified general real estate appraiser by the State of Washington (License no. 1102323). He has successfully completed the following courses approved by the State of Washington: ■ Basic Appraisal Principles ■ Basic Appraisal Procedures ■ Standards of Professional Appraisal Practice, Parts A and B ■ General Appraisal Market Analysis Highest and Best Use ■ General Appraisal Sales Comparison Approach ■ General Appraisal Site Valuation and Cost Approach ■ General Report Writing and Case Studies ■ Commercial Appraisal Review - Subject Matter Elective ■ General Appraisal Income Approach ■ Expert Witness for Commercial Appraisal - Subject Matter Electives ■ Statistics, Modeling and Finance ■ Uniform Appraisal Standards for Federal Land Acquisitions ■ Appraisal of Assisted Living Facilities Education: West Virginia University, M.S., Chemical Engineering, 1974; Virginia Military Institute, B.S. Civil Engineering, 1973. Mr. Brooks has performed appraisal services for a wide variety of clients, and a partial client list follows: Municipal and Public • City of Bainbridge Island • WA State Department of Natural Resources • WA State Department of Fish & Wildlife • Kitsap County Dept. Parks and Recreation • Kitsap County Department of Public Works • Edmonds Park, Recreation & Cultural Services • King Count Dept. Natural Resources & Parks • City of Poulsbo • Colville Confederated Tribes • Jefferson County Environmental Health Department • City of Gig Harbor • Clallam County Public Works Department • Jamestown S'Klallam Tribe Private Companies • Pope Resources, Inc. • Green Diamond Resources Company • Voyager Montessori Elementary School • Fowler Creek LP • The Pazooki Group • Gary Merlino Construction Company • Gray & Osborne, Inc. • Northwest Investment Company • Whidbey Institute • Port Gardiner Processing, LLC • Dock Street Bldg LLC Banks • Kitsap Bank • Union Bank • Parkside Financial Bank & Trust • Financial Funding LLC Conservation Organizations • Trust For Public Land • The Nature Conservancy • Bainbridge Island Land Trust • Forterra • Great Peninsula Conservancy • Whidbey Camano Land Trust • Methow Conservancy • Northwest Watershed Institute • Capitol Land Trust • Jefferson Land Trust • Nisqually Land Trust • North Olympic Land Trust • Center for Natural Lands Management • Heernet Environmental Foundation • Northwest Rangeland Trust • Chehalis River Basin Land Trust • Coastal Watershed Institute Law Firms • Rodgers Deutsch & Turner • Lee Smart, P.S., Inc. • Williams & Williams PSC • Law Office of Richard B. Shattuck • Miller Nash LLP • Skadden, Arps, Slate, Meagher & Flom LLC Epic Land Solutions, Inc. I'` 111 W. North River Drive, Suite 201 Spokane, WA 99201 Phone: (509) 315-1687 Cell: (509) 934-6024 Email: jarney@epicland.com May 5, 2017 Ms. Tami Pokorny, Environmental Health Department Jefferson County 615 Sheridan Street Port Townsend, WA 98368 RE: Review of Appraisal of the Gallagher Property Located at 161 Richards Street, Quilcene, WA Epic Project Code: Jefferson County - Holt -Gallagher 20170406 Dear Ms. Pokorny, At your request and authorization Epic Land Solutions, Inc. Appraisal Region (Epic) has prepared an analysis of the appraisal report prepared by George A. Brooks of ComPraise. The appraisal report was completed for you on behalf of Jefferson County Environmental Health Department for the potential acquisition of the subject property for floodplain restoration and salmon recovery. The report is dated April 14, 2017 with a valuation date of April 7, 2017. My conclusions are contained in the following review report. This review report conforms to Standard 3 of the Uniform Standards of Professional Appraisal Practice, 2016-2017 Edition (USPAP). In addition, the service provided conforms to the Code of Ethics of the Appraisal Institute. The conclusions contained within are limited to the client, Jefferson County and Washington State Recreation and Conservation Office (RCO). They are considered to be the only intended user of these opinions and conclusions. This review report is prepared to determine the reasonableness of the appraisal report's methodology, analysis and conclusions considering the Uniform Standards of Professional Appraisal Practice (USPAP), 2016-2017 Version and the guidelines of Washington State Recreation and Conservation Office (RCO), and if it was acceptable to fulfill its intended purpose. By virtue of this review I am not expressing my own opinion of value. The appraisal report included a cover page and 47 numbered pages and an Addendum. The fee simple interest of the subject property was valued. This review was prepared as of the date of this letter, May 5, 2017, and my opinions are effective as of that date. There are no extraordinary assumptions or hypothetical conditions for my review. SCOPE OF REVIEW ASSIGNMENT The review conducted is identified as a "field review", meaning John W. Arney, MAI, did inspect the exterior of the subject property and an exterior inspection of all the comparable market data. I did not independently check any of the facts contained in the report, unless specifically identified in this review report, and the information, as presented, was assumed to be accurate. Furthermore, I did not re -verify the market data which was used in the analysis. I am qualified by education and experience to perform Jefferson County Appraisal Review of Gallagher Property Page 2 this appraisal review competently. This appraisal review provides a determination as to the reasonableness of the appraisal's methodology, analysis and conclusions. Property Overview: The subject property is located in the small unincorporated village of Quilcene in the east central portion of Jefferson County, Washington. The property has frontage and access from Rodgers Road along the eastern boundary of the site or from Quilcene Avenue on the northern boundary of the site. The subject property is located in a rural area within Quilcene village and the surrounding land uses in the area include a variety of large and small land tracts including single family rural acreage sites, recreational dwellings and unimproved sites and commercial uses along Highway 101 in Quilcene. The subject property is a single family rural acreage site consisting of 0.88 acres of land area that is rectangular in shape with street frontage along Rodgers Street. The site is mostly level along the road frontage and 95% of the site is within the High Risk Channel Migration Flood Hazard Zone of the nearby Big Quilcene River according to the Jefferson County JMAP database. The property currently has a Rural Residential 1/5 (RR 1/5) zoning designation under the auspices of Jefferson County allowing one residential unit per 5 -acres of land area. However due to the majority of the site being located within a flood zone the Highest & Best Use of the site as if vacant is for recreational use. However, the existing use of the subject site, improved with a single family residence, is considered a legal and non- conforming use. As such the Highest and Best Use of the site as improved is for the continuation of its existing use. The subject is currently improved with a one and a half story 1,608 square foot wood -frame house that was original constructed in 1920 and periodically upgraded over the years. The building includes three bedrooms and one bathroom, a kitchen, dining room, living room in addition to two covered porches. The building consists of average quality construction and is in fair condition overall. The only public utilities available to the subject site are water, electricity and telephone service. The site is improved with a septic and drain field sewage disposal system Appraisal Overview: The appraisal report under review was completed by George A. Brooks of ComPraise. The appraisal report was completed for Tami Pokorny with the Jefferson County Environmental Health Department. The report is dated April 14, 2017 with a valuation date of April 7, 2017. One approach to value, the sales comparison approach, was utilized to value the subject property in the appraisal report. The cost approach was not considered since the subject is unimproved. The income approach was also not considered since the subject property would not be purchased for its income producing capabilities. Overall, the appraisal followed the proper methodology in valuing the subject property. Market Overview: The subject property is located in the central eastern portion of Jefferson County within the small unincorporated village of Quilcene, WA. The subject property is located in a rural area consisting of vacant land and rural and recreational housing on small to large tracts. Population in the county consists of 31,090 people with only one incorporated city in the county, Port Townsend, with a population of 9,485. Like elsewhere, Jefferson County's housing market declined during the recent recession but it has recovered since 2012 with healthy house appreciation of between 4 and 16% annually over the past several years. Jefferson County Appraisal Review of Gallagher Property Page 3 Valuation Overview: In the Sales Comparison Approach, six sales were utilized to value the whole subject property. These sales occurred between August 2013 and December 2016. These sale properties ranged in land size from 0.81 to 3.0 and finished floor areas ranging in size from 1,092 to 1,948 square feet and were constructed between 1920 and 1968. The sales prices ranged between $50,000 and $156,000. These sales were then rated for inferior, similar and superior characteristics and provided reasonable support, as adjusted, for the concluded whole property value of $100,000 by the Sales Comparison Approach. Conclusion: In the reviewer's opinion, the appraiser followed the proper methodology for the valuation of the subject property. In summary, the appraisal report is concluded to provide a sufficient amount of data and analysis to adequately support the indicated market value of the subject property. As a result, the appraisal is accepted by the review appraiser. Overall the appraisal is considered to be good in quality. This appraisal review report is subject to the following assumptions and limiting conditions. Thank you for the opportunity to be of service. Respectfully submitted, EPIC LAND SOLUTIONS, INC. in/WW. ey, MAI Senior Appraiser Washington Certified General Appraiser 1100473 Jefferson County Appraisal Review of Gallagher Property Page 4 CERTIFICATE OF REVIEW APPRAISER I certify that, to the best of my knowledge and belief: • The facts and data reported by the reviewer(s) and used in the review process are true and correct. • We have both the experience and the knowledge to perform this appraisal review competently. • 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 (our) personal, impartial, and unbiased professional analyses, opinions, and conclusions. • 1 have no present or prospective interest in the property that is the subject of the work under review and no personal interest with respect to the parties involved. • 1 have no bias with respect to the property that is the subject of the work under review or to the parties involved with this assignment. • I, John W. Arney, MAI have not performed any professional services with respect to the property that is the subject of this assignment in the previous three-year period. • The engagement in this assignment was not contingent upon developing or reporting predetermined results. • The 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 the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice, as set forth by the Appraisal Standards Board of the Appraisal Foundation. • My analyses, opinions, and conclusions were developed, and this appraisal has been prepared, in conformity with the appropriate state and federal laws, regulations, policies, and procedures applicable to the appraisal right-of-way for such purposes. • 1 John W. Arney, MAI have made a personal inspection of the subject property of the work under review. • No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the persons signing this certification. Jefferson County Appraisal Review of Gallagher Property Page 5 • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report I, John W. Arney, MAI have completed the continuing education program for Designated Members of the Appraisal Institute. 1 John W. Arney, MAI Senior Appraiser Washington Certified General Appraiser 1100473 Jefferson County Appraisal Review of Gallagher Property Page 6 APPRAISAL REVIEW ASSUMPTIONS & LIMITING CONDITIONS This review is made expressly subject to the conditions and stipulations following: 1 It is assumed that the legal description contained in this appraisal under review is correct. No responsibility is assumed for matters which are legal in nature, nor is any opinion on the title rendered herewith. This review report assumes good title, responsible ownership and competent management. Any liens or encumbrances which may now exist have been disregarded and the property has been analyzed as though free of indebtedness unless otherwise stated. 2 Any plot plans, sketches, drawings or other exhibits contained in the report under review are assumed to be correct. I have made no survey for this report under review and assume no responsibility for such. 3 Unless otherwise noted herein, it is assumed that there are no encroachments, zoning or other violations of any regulations affecting the subject property that were not clearly disclosed in the appraisal under review. 4 Except as noted, this review assumes the land to be free of adverse soil conditions which would prohibit development of the property to its highest and best use. 5 The reviewer assumes no liability for structural conditions not visible through ordinary, careful inspection or a review of the plans and specifications, if the inspection is proposed. The reviewer has made no inspection for toxic or carcinogenic materials, nor has he detected any subsurface problems or hazardous waste conditions. The reviewer is not qualified to detect such substances. An expert in this field should be retained if desired. 6 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 7 Disclosure of the contents of this review report is governed by the bylaws and regulations of The Uniform Standards of Professional Practice. 8 Neither all nor any part of the contents of this review report, especially any conclusions as to value, the identity of the appraiser or the firm which he/she is connected, or any reference to any organization or license shall be disseminated to the public through the advertising media, public relations media, news media, sales media or any other public means of communication without prior written concept and approval of the analyst. 9 This review shall be used only in its entirety with the original appraisal under review and no part shall be used in conjunction with any other study and is invalid if so used. 10 Employment to perform this review does not require testimony in court, unless mutually satisfactory arrangements are made in advance. 11 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 else but 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. Jefferson County Appraisal Review of Gallagher Property Page 7 12 Neither all, nor any part of the content of this review report, or copy thereof (including conclusions as to property value, the identity of the appraiser, professional licenses, reference to any affiliation with professional organizations, or the firm with which the appraiser is connected), shall be used for any purpose by anyone but the client specified in the report, the borrower if the appraisal fee paid by the same, the mortgage or its successors and assigns, mortgage insurers, consultants, professional appraisal organizations, any state or federally approved financial institution, any department, agency, or District of Columbia, without the written consent of the review appraiser; nor shall it be conveyed by anyone to the public through advertising, public relations, news media or sales without the written consent and approval of the review appraiser. 13 Information, estimates, and opinions furnished to the reviewer and contained in the report were obtained from sources considered to be reliable and believed to be true and correct. However, the reviewer can assume no responsibility for accuracy of such items furnished to the reviewer. 14 It is assumed that the public project which is the object of this review will be constructed in the manner proposed in the reasonably foreseeable future. 15 Acceptance and/or use of this review constitutes acceptance of the foregoing assumptions and limiting conditions. Jefferson County Appraisal Review of Gallagher Property Page 8 John W. Arney, MAI, Senior Appraiser John W. Amey has over 35 years of appraisal experience in commercial, industrial, Total Years of special use and complex residential properties. He has completed appraisals Experience: s35 throughout the Pacific Northwest in Washington, Idaho and Oregon as well as in Alaska, California, Nevada and Arizona. John has appraised properties for major Years with Firm: [1 I projects including the 1-405 ex ansion project between Tukwila and Bothell, the SR - j Education: Bachelor of 167 expansion project between Renton and Kent, the US -99 Beautification project Business Administration, for the Cities of Federal Way, Des Moines, Sea -Tae, Tukwila and Shoreline and the Real Estate, Boise state Seattle Monorail project. He has over 14 years of experience in eminent domain University valuations. John has valued total and partial acquisitions, temporary and permanent Registrations/Certifications: easements and determined property damages resulting from acquisitions and Certified General Real Estate Appraiser, easements. He also has experience valuing large, multi -property valuation projects. Idaho, License #CGA -3630 John has qualified as an expert witness in Superior Court of Washington in and for Certified General Real Estate Appraiser, King County. He holds a BBA in Real Estate from Boise State University and is a Washington, License #1100473 designated MAI member of the Appraisal Institute. MAI Designated Member, Appraisal Institute Please note: The appraisal group works independently within the Epic organization Associations/organizations: to ensure complete objectivity and impartiality for all appraisal opinions and Member, International Right of Way conclusions. Association (IRWA) Education in Real Estate Appraisal: Relevant Experience Appraisal Institute Classes Government Clients. Expert Witness: + Real Estate Appraisal Principles • City of Auburn • Superior Court of Washington + Basic Valuation Procedures City of Bellevue in and for King County • Rural Valuation • City of Coeur d'Alene Financial Institution Clients: + Hotel/Motel Valuation City of Des Moines • Bank of America • Capitalization Theory & • City of Federal Way • Cathay Bank Techniques, Parts A.& 6 . City of Issaquah • KeyBank + Reviewing Appraisals seminar • Cityf Kirkland oan• Northwest Bank + Case Studies in R. E. Valuation + Valuation Analysis Report Writing City of SeaTac . Seattle Bank • Standards of Professional Practice, • City of Shoreline • Umpquah Bank Parts A& B • City of Spokane • US Bank * Understanding Limited Appraisals City of Spokane Valley . Washington. Trust Bank + 6usIness VaIuadon • City of Snohomish • Washington Federal Bank + Condemnation Appraising: Basic + WSDCIT • Wells Fargo Bank Principles & Applications Attorney, LPA and Corporate Clients: + Condemnation Appraising: • 6H Partnerships • Indonesian Development Co. Advanced Topics & Applications • American Pacific Fisheries • Lane Powell PC + Separating Real, Personal & • Bancshares Mortgage • Lilak Construction Intangible Property Center Mortgage Livengood Fitzgerald & Alskog Uniform Appraisal Standards for Federal Land Acquisitions . CH2M Hill • Malapor Development Co. • Litigation Appraisal: Specialized • CityFed Mortgage • McConkey Dev. Co., Inc. Topics &Applications Coast Mortgage Exchange • McDonough's Law Office • Uniform Standards of Professional • Columbia Valuation Group • Money Store Appraisal Practice CWA Construction • Pen -Mar Investment Services • Business Practices &Ethics • Diversified Apt. Realty Co. • Preston Gates and Ellis • Fisher Properties • Reed Smith LLP IAAO Classes: Foster Pepper • Witherspoon Kelley + Property Taxation & Income • GNA (Division of Valuation Weyerhaeuser) + Personal Property Valuation . Graham and Dunn + Leasehold Valuation • Harmon & Associates, R.E_ Jefferson County Appraisal Review of Gallagher Property Page 9 STATE OF WASHINGTON DWARTMENT OF LICENSING — BUSINESS AND PROFESSIONS DIVISION THIS CERTIFIES THAT THE PERSON OR BUSINESS NAMED BELOW IS AUTHORIZED AS A CERTIFIED GENERAL REAL ESTATE APPRAISER JOHN W ARNEY PO BOX 699 COEUR D ALENE ID 83816 1100473 12/11/1991 04/04!2019 License Number Issued Dsw Expiration Date PL -630-158 0116) Pei Kohler. uirrsmr Jefferson County Appraisal Review of Gallagher Property