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
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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
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Job No. 1703 ComPraise Holt Property
SUMMARY OF APPRAISAL
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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.
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Job No. 1703 ContPraise Holt Property
SUBJECT PHOTOGRAPHS
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Job No. 1703 ComPraise Holt Property
+� p
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9912004
7,02243017
017 4.._
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702243019
_;s r 9912
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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.
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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.
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Job No. 1703 ContPraise Holt Property
r
Photo 4 - A view of the south portion of the subject from Rodgers Street facing west.
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Job No. 1703 ContPraise Holt Property
INTRODUCTION
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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.
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Job No. 1703 ContPraise Holt Property
NEIGHBORHOOD DATA/MARKET ANALYSIS
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Job No. 1703 ComPraise Holt Property
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AREA MAP
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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
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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•
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UnemplaYrnent rates, not searmnal1Y adj"ted' in
Washington State
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Single Family Residential Market
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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
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Job No. 1703 ComPraise Holt Property
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Single Family Residential Market
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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.
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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
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Job No. 1703
STREET MAP
-18-
ComPraise Holt Property
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Job No. 1703
STREET MAP
-18-
ComPraise Holt Property
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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
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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
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B��araY,��m�a
ISUBJECT
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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:
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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
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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
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Job No. 1707 ComPraise Gallagher Property
SUMMARY OF APPRAISAL
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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.
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Job No. 1707 ContPraise Gallagher Property
SUBJECT PHOTOGRAPHS
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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.
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Job No. 1707 ComPraise Gallagher Property
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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.
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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.
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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.
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INTRODUCTION
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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
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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
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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.
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Job No. 1707 ContPraise Gallagher Property
NEIGHBORHOOD DATA/MARKET ANALYSIS
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AREA MAP
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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
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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•
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Single Family Residential Market
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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
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Job No. 1707 ComPraise Gallagher Property
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Single Family Residential Market
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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
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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.
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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.
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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.
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Job No. 1707 ContPraise Gallagher Property
SITE DATA
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STREET MAP
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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.
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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.
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Job No. 1707 ContPraise Gallagher Property
HIGH RISK CHANNEL MIGRATION ZONE MAP
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Job No. 1707 ComPraise Gallagher Property
Improvements
FLOOD HAZARD MAP
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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
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Job No. 1707 ComPraise Gallagher Property
MA
[Area. ` 1'2% ftl
1 ft
[Area: 336 ftj
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HOUSE LAYOUT
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Job No. 1707 ComPraise Gallagher Property
HIGHEST AND BEST USE
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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. The primary reason for this
-33 -
Job No. 1707 ComPraise Gallagher Property
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SALES COMPARISON MAP
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Job No. 1707
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-45 -
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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
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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
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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
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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.
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.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