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HomeMy WebLinkAbout070119_cabs01�e elmn Public Heealt CABS 615 Sheridan Street Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org June 25, 2019 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Stuart Whitford, Environmental Public Health Director Tami Pokorny, Natural Resources Program Coordinator DATE: July 1, 2019 SUBJECT: Agenda Request: Authorization and Concurrence for the Bochat Property on the Big Quilcene River Floodplain STATEMENT OF ISSUE: Environmental Public Health (EPH) requests approval of an Authorization and Concurrence document for the Bochat property on the Big Quilcene Floodplain. ANALYSIS/STRATEGIC GOALS: Approval of the Authorization and Concurrence document will allow EPH, in partnership with Public Works, to initiate negotiations to purchase the 0.66 -acre Bochat property north of the Big Quilcene River. This acquisition has been discussed with the Board previously in the context of grant agreements and project updates. It is necessary in order to provide adequate space for the river's channel to function naturally, to improve salmon habitat, and to reduce flood risk. FISCAL IMPACT/COST BENEFIT ANALYSIS: Acquisition of the Bochat property is funded by RCO # 16-1480. Match is provided by the Department of Ecology's Terry Husseman Account (SEATHA-VER3-JeCoPH-00037). RECOMMENDATION: EPH management recommends approval of the Authorization and Concurrence document for the Bochat property on the Big Quilcene Floodplain. REVIEWED BY: Philip Morley, County Adr'hinistrator Date 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 AUTHORIZATION TO PROCEED WITH REAL PROPERTY ACQUISITION Big Quilcene River Floodplain Salmon Recovery Project Bochat Property (RCO #16-1480) Based on the review appraisal report of June 13, 2019 and the authority granted below, we hereby establish just compensation and authorize you to make the first offer on the following property: Parcel Numbers Just Compensation (Offer) APNs 991200505 & 991200503, $155,000 Recommendation and Approval: 6v -W- /2 Mon emders P.E., Public Works Director/County Engineer Date 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 Public Health to proceed with the offer, negotiation and acquisition of the above designated property in accordance with Right of Way Acquisition Procedures Resolution 05-11, approved February 7, 2011 and the policies of the Recreation and Conservation Office and the Washington Department of Ecology. Big Quilcene River Floodplain Salmon Recovery Project — Bochat This authorization further directs the Departments to execute the documentation to close said transactions and coordinate with the approved funding sources to pay for acquisition expenses. Approved By: JEFFERSON COUNTY BOARD OF COMMISSIONERS Kate Dean, Chair David Sullivan, Member Greg Brotherton, Member SEAL: ATTEST: Carolyn Gallaway Date Deputy Clerk of the Board Big Quilcene River Floodplain Salmon Recovery Project — Bochat REVIEW APPRAISER'S CERTIFICATE NO. 1 Agency: Jefferson County Public Health Parcel No. 991200505 and 991200503 Owner: Brian Bochat Federal Aid No. N/A Project: N/A Map Sheet: N/A Map Approval Date: N/A Date of Last Revision: N/A From: Richard F. Duncan, MAI, RF Duncan and Associates, Inc. To: Jefferson County Public Health Date of Review: June 13, 2019 The following appraisal has been made on the subject largerparcel: Appraiser Valuation Fair Market Fair Market Value Value of Damages Date Value — Value — Difference Property Before After Rights Project Project Acq uired Chad C. Johnson, 5-16-19 $155,000 -0- $155,000 -0- -0- MAI WA Gen. Cert. No. 1101662 and Leslee A. Gilmore Cert. No. 1101840 Appraisal Review Comments and Conclusions Appraisal #1 is referred to as "the appraisal" herein. The appraisal is an Appraisal Report as defined by USPAP, and is prepared consistent with the Uniform Standards for Federal Land Acquisitions. The agency proposes a total acquisition of the subject parcel. Description of Subject - The subject is located at 151 Fremont Avenue Quilcene, WA, southeasterly of Highway 101 in Jefferson County. The subject property consists of two rectangular shaped, non-contiguous parcels. The two parcels of the subject property are separated by a parcel containing an area of 0.13 acres which is owned by Jefferson County. Parcel 991200505 contains an area of 0.52 acre and is improved with a single-family residence. The second parcel (Parcel 991200503) contains an area of 0.14 acre and is unimproved. The area of the combined ownership is approximately 0.66 acre. According to the Jefferson County GIS mapping system, all of Parcel 991200503, the smaller parcel, is located within a floodway. Additionally, all of Assessor's Parcel 99120503 and the approximately one- half of the easterly portion of Parcel 991200505 is impacted by potential wetland areas. All of the improvements located on the subject property are located on Parcel Number 991200505. Because the Richard F. Duncan, MAI Page I RF Duncan & Associates, Inc. smaller parcel cannot accommodate independent development, it is included with the main parcel as one larger parcel for this ownership, which is reasonable and appropriate. The sites are mostly level in topography and electrical and telephone service are extended to the subject property. The subject site is not served by public water or sanitary sewer service. However, the site is served by a private well and septic system. The subject property is improved with a three-bedroom, one -bathroom single-family home containing a total finished area of 970 square feet. The home is wood frame with a concrete foundation, wood siding and a composition shingle roof. The home has a living room, a dining area, the kitchen, three bedrooms, and a full bathroom. In addition to the home, the property is also improved with a detached storage shed with an area of 216 square feet. County records indicate that the home was originally constructed in 1948. The home has been updated several times and has been well maintained. After recently purchasing the property, the owner cured some deferred maintenance on the house including removing moss and completing some repairs to the roof. In addition, the owner completed some updating on the landscaping that was not maintained prior to the purchase of the property. The appraisers indicate that currently, the interior of the home is in need of some updating. The kitchen needs a new stove/oven and refrigerator/freezer. Also, the flooring in the bathroom needs to be replaced, the countertops in the kitchen need to be updated, and the kitchen cabinets need to be re -painted. In addition, the home needs new windows. The owner of the subject property is a contractor and estimated that it would cost approximately $10,000 to complete this work. With entrepreneurial profit, the appraisers estimated a total cost for the needed improvements of approximately $11,000. The subject is zoned Rural Residential (RR -5), per the Jefferson County zoning ordinance. The base zoning allows for one dwelling unit per five acres. Because the subject was a legally created site prior to the zoning being adopted, it is considered to be a legal non -conforming application with respect to its size of under 5.0 acres. As indicated earlier, the smaller parcel of approximately 0.14 acres cannot be developed. The appraisers estimated a highest and best use for the site as vacant for development of one home and a highest and best use as improved is to apply the repairs as indicated and for continued use as a residence. In my opinion, the appraisers' conclusions of highest and best use are reasonable and well supported. Valuation The appraisers employed the Sales Comparison Approach in valuing the subject parcel. Neither the Cost nor the Income Approaches were considered to be applicable and they were not performed. The appraisers analyzed four improved sales in supporting the value of the subject which ranged from approximately $150,000 to $230,000. After being adjusted for sales concessions and market appreciation, the sales ranged from $153,375 to $231,725. After comparing and contrasting the comparables to the subject for major value influencing characteristics including location, site and improvement size, outbuildings and condition and quality of improvements, the appraisers concluded a value for the subject toward the low end of the range at approximately $165,000, assuming the improvements to the appliances, bathroom flooring, kitchen countertops, and the kitchen cabinets had been repainted, and the windows had been replaced. The appraisers deducted approximately $11,000 as the cost for the required repairs/improvements, to reach a value "as is" of approximately $155,000, Richard F. Duncan, MAI Page 2 RF Duncan & Associates, Inc. ($165,000-$11,000) which is within the range of comparable sales analyzed and considered to be reasonable. No land valuation was included in the appraisal. Recent site sales in the subject market have ranged from $24,000 to $48,000, for allocation purposes I have allocated the site value at approximately $45,000. The reviewer accepts the appraisal's ordinary assumptions and limiting conditions as being typical for appraisals in Washington State. There are some minor typographical errors in the appraisal; however, correction of these would not alter its value conclusions. Any personal property items in the residence will be addressed outside the scope of the appraisal and this review. There are no tenant -owned realty items taken or affected. The appraisal and this review use the correct methods and techniques. The market data in the appraisal are adequate and appropriate to solve the appraisal problem. The conclusions of value reached in the appraisal and in this review are reasonable and fit the market evidence. In my opinion, the appraisal report which is under review complies with the Uniform Standards of Professional Appraisal Practice (USPAP), The Uniform Standards for Federal Land Acquisitions (Yellow Book), and the Standards of the Washington State Recreation and Conservation Office (RCO). Richard F. Duncan, MAI Page 3 RF Duncan & Associates, Inc. REVIEWER'S DETERMINATION OF VALUE NO. 1 DETERMINED VALUE BEFORE PROJECT DETERMINED VALUE AFTER PROJECT: VALUE DIFFERENCE DETERMINED: ESTIMATED JUST COMPENSATION IS- AS OF 6-13-19: Reviewer's Allocation of Just Compensation Acquisition: Land Acquired in Fee 0.66 acre: Improvements Acquired: Damages: Special Benefits: Total Just Compensation: $155,000 -0- $155,000 $155,000 $45,000® $110,000 -0- -0- $155,000 Richard F. Duncan, MAI Page 4 RF Duncan & Associates, Inc. APPRAISAL REVIEW SALIENT INFORMATION Property Rights Appraised Unless specified otherwise in this review, the property rights appraised constitute the fee simple interest. Date of Value The effective date of the value opinion for the property in this review is 5-16-19 per Appraisal #1. Competency of Reviewer The undersigned reviewer has the knowledge and experience required to competently perform this review; detailed resumes are available upon written request. The undersigned reviewer is approved by the Federal Highway Administration (FHWA) and the Washington State Department of Transportation (WSDOT), lead agency for all eminent domain appraisal matters, to perform fee appraisal reviews for all public agencies and quasi -public agencies in Washington State. The undersigned reviewer is a state certified appraiser holding the General classification #1100496 and is on the WSDOTListofApproved Fee Reviewers Purpose of this Review Overall, the purpose is to estimate the total Just Compensation due the owner for the taking of privately - owned real property for the public project identified. For a partial taking, this is done by: estimating the Fair Market Value of the subject Larger Parcel in the Before Situation; estimating the Fair Market Value of the subject Larger Parcel in the After Situation; then subtracting the latter from the former. When a larger parcel's major improvements are unaffected by the taking/project other than simple cost to cure, the jurisdictional exception allows a Strip Appraisal Procedure wherein said improvements need not be valued. Use of this Review This review estimates Just Compensation due the owner and will be used to establish the first offer amount to be made to the owner by the Jefferson Land Trust (client). Scope of this Review The commonly recognized valuation methods and techniques most appropriate for valuing the subject Larger Parcel were performed in this review. This review involved a reasonably detailed inspection of the subject property, the subject neighborhood, and surrounding/competing neighborhoods. Sales and listings of competing properties were investigated before any conclusions of value were made. Unless otherwise stated above, the Income and Cost Approaches to value were not employed in this review because the Sales Comparison Approach is sufficient to solve the subject appraisal problem. Definition of the Larger Parcel The "Larger Parcel" is the parent parcel; it is the real property that is the subject of this review. It is that real property that has Unity of Use, Unity of Ownership, and Contiguity. Richard F. Duncan, MAI Page 5 RF Duncan & Associates, Inc. Definition of Market Value Market Value, as defined by the Uniform Appraisal Standards for Federal Land Acquisitions, 2000 Edition, 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." Definition of Cash Equivalent A price expressed in terms of cash (money) as distinguished from a price which is expressed all or partly in terms of the face amount of notes or other securities which cannot be sold at their face amount. Market data in this review are compared to the subject on an all cash basis to satisfy the definition of Fair Market Value. Richard F. Duncan, MAI Page 6 RF Duncan & Associates, Inc. APPRAISAL REVIEW ASSUMPTIONS and LIMITING CONDITIONS 1. The property description supplied to the reviewer is assumed to be correct; 2. No surveys of the properties have been made by the reviewer and no responsibility is assumed in connection with such matters. Title is assumed merchantable and vested as noted herein; 3. No responsibility is assumed for matters of a legal nature affecting title to the properties, nor is any opinion of title rendered; 4. Information furnished by others is assumed to be true, correct, and reliable. A reasonable effort has been made to verify such information; however, no responsibility for its accuracy is assumed by the reviewer; 5. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so specified in review. The property is assumed to be under responsible ownership and competent management; 6. It is assumed that there are no hidden or unapparent conditions of the property, its subsoil, or its structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering or testing which may be required to discover them; 7. Unless otherwise stated, the existence of hazardous material, which may or may not be present in or on the property, was not observed by the reviewer. The reviewer has no knowledge of the existence of such materials on or in the property. The reviewer, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea - formaldehyde foam insulation, or other potentially hazardous/toxic materials may affect the value of the property. The value estimate in this review is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for the expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field if desired; 8. Unless otherwise stated, no environmental impact studies were either requested or made in conjunction with this review, and the reviewer hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based upon any subsequent environmental impact studies, research, or investigation; 9. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is specified, defined, and considered in this review; 10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been specified, defined, and considered in this review; 11. It is assumed that all required licenses, consents, or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this review are based; 12. The reviewer will not be required to give testimony or appear in court because of having made this review unless arrangements have been previously made therefore, 13. Possession of this review or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the client without the written consent of the reviewer and in any event, only with properly written qualification and only in its entirety; 14. Neither all nor any part of the contents of this review, or copy thereof, shall be conveyed to the public through advertising, public relations, news, sales, or any other media without written consent and approval of the reviewer. Nor shall the reviewer, client, firm, or professional organization of which the reviewer is a member be identified without the written consent of the reviewer; 15. The liability of the reviewer, employees, and subcontractors is limited to the client only. There is no accountability, obligation, or liability to any other party. If this review is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The reviewer is in no way responsible for any costs incurred to discover or correct any deficiencies in the properties; 16. It is assumed that the public project which is the object of this review will be constructed in the manner proposed and in the reasonably foreseeable future. It is also assumed herein that the taken landscaping will not be required to be replaced on the remainder; 17. Acceptance and/or use of this review constitutes acceptance of the foregoing assumptions and limiting conditions. Richard F. Duncan, MAI Page 7 RF Duncan & Associates, Inc. CERTIFICATE OF REVIEW APPRAISER I, the review appraiser, certify to the best of my knowledge and belief: 1. The facts and data reported by the review appraiser and used in the review process are true and correct. 2. The analyses, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional analyses opinion, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved; 4. I have no bias with respect to the property that is the subject of this report or to the parties involved in this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this review report. 7. My analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), with the Uniform Appraisal Standards for Federal Land Acquisitions (USFLA, the "Yellow Book') and with 49CFR Part 24. 8. I personally inspected the subject property of the appraisal under review and the comparable sales analyzed in the report. No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the persons signing this certificate. I further certify that if this review is to be used in conjunction with a Federal Aid Highway Project or other federally funded project, none of the approved just compensation herein is ineligible for Federal reimbursement_ Signature: Date Signed: 6-13-19 Richard F. Duncan, MAI, Review Appraiser, Washington State Certified Real Estate Appraiser: General, # 1100496 Richard F. Duncan, MAI Page 8 RF Duncan & Associates, Inc. CONCURRENCE and AUTHORIZATION for PAYMENT of JUST COMPENSATION Jefferson County Public Health does hereby indicate concurrence with the above certification and does authorize further action to proceed according to established procedures with the acquisition of the property. 1. I have no present or prospective personal interest in the property that is the subject of this report. 2. I have no personal interest or bias with respect to the parties involved. 3. My compensation is not contingent on an action or event resulting from this report. Authorized Representative of Jefferson County Public Health Date Richard F. Duncan, MAI Page 9 RF Duncan & Associates, Inc. Review Appraiser's Qualifications Richard F. Duncan, MAI Experience: • Partner, The Granger Company • President, R.F. Duncan and Associates, Inc. Fee Appraiser, Anderson Appraisal, Inc., Olympia, Washington • Real Estate Appraiser, Clark County, Department of Public Works Real Estate Appraiser/Right-of-Way Agent, Washington State Department of Transportation • Real Property Manager, Phoenix Properties, Inc. Education: The Evergreen State College, Olympia, Washington Bachelor of Arts, Major — Business Management, 1987 Appraisal Education: Real Estate Courses: "Real Estate Law" "Real Estate Finance" "Real Estate Practices" "Principles of Real Estate Appraisal P" "Principles of Real Estate Appraisal II" "Uniform Standards of Professional Appraisal Practice" Appraisal Institute Courses: Successfully challenged "Real Estate Appraisal Principles" Successfully challenged "Basic Valuation Principles" "Capitalization Theory and Techniques Part A" "Capitalization Theory and Techniques Part B" "Report Writing and Valuation Analysis" "Advanced Applications" "Standards of Professional Practice Part A" "Standards of Professional Practice Part B" International Right -of -Way Association Courses: "Appraisal of Partial Acquisitions" "Principles of Real Estate Acquisition" "Engineering Plan Development and Application" Richard F. Duncan, MAI Page 10 RF Duncan & Associates, Inc. "Ethics and the Right -of -Way Profession" "Communication in Real Estate Acquisition" "Bargaining Negotiations" "Relocation Assistance" "Land Titles" National Highway Institute Courses: "Appraisal and Appraisal Review for Federal Aid Highway Programs" "Moving Cost Estimating" Business and Professional Organizations: • Member, Appraisal Institute • Certified Real Estate Appraiser (General) — State of Washington #1100496 Types !)f Appraisal Assignments: Apartments Eminent Domain Takings — Strip and Before/After Reports Funding Feasibility Studies for Governmental Projects (roads, parks, bike trails, etc.) Office Buildings Retail Special Benefit Studies Subdivisions Undeveloped Land Warehouses Wetlands/Open Space Appraisal Review Richard F. Duncan, MAI Page II RF Duncan & Associates, Inc. SH&H ,/ALUATION AND CONSULTING APPRAISAL REPORT BOCHAT PROPERTY 151 FREMONT AVENUE QUILCENE, WASHINGTON 98376 PARCEL NO. 991200505 AND 991200503 EFFECTIVE DATE: MAY 16, 2019 REPORT DATE: JUNE, 2019 SH&H FILE NUMBER CHAD C. JOHNSON, MAI LESLEE A. GILMORE, ASSOCIATE SH&H VALUATION AND CONSULTING 6419 LAKEWOOD DRIVE WEST TACOMA, WASHINGTON 98467 s SH&H June 3, 2019 Tami Pokorny Natural Resources Program Coordinator Environmental Public Health Jefferson County Public Health 615 Sheridan Street Port Townsend, Washington 98368 Re: Bochat Property 151 Fremont Avenue Quilcene, WA 98376 SH&H File 14700-19-A Dear Ms. Pokorny: At your request, we are providing you with an appraisal relevant to the above referenced property. The property is legally described within this report. The report is prepared with the intent to be in accordance with the current Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA), the current Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Foundation, and the appraisal guidelines provided by the client. This report is prepared for the client, Jefferson County Public Health. Washington State Recreation and Conservation Office (RCO) is identified as an intended user. The subject property was inspected in the company of the owner, Brian Bochat, on May 16, 2019. The subject of this appraisal is a property consisting of two non-contiguous Assessor's parcels. Assessor's parcel 991200505 contains an area of 0.52 acres and is improved with a single-family residence. Assessor's parcel 991200503 contains an area of 0.14 acres. This vacant site is located 100% within a floodplain/floodway and according to the property owner is "wet" most of the year. The subject property is located along Fremont Avenue. The single family home located on the subject property is a 3 bedroom/1 bathroom home with a total area of 970 square feet. There is also a storage shed located on the property with an area of 216 square feet. 6419 Lakewood Drive West I Tacoma, Washington 98467 1 p. 253.564 3230 1 f 7.53.564.3143 As per the unit rule as stipulated in the Uniform Appraisal Standards for Federal Land Acquisitions (2016, Page 97), the property is appraised as a whole, owned in fee simple, subject to the easements and restrictions appurtenant to the title (a copy of which is included in the Addenda of this report). The title report indicates that there are no easements located on the property. The purpose of this appraisal is to prepare and submit a supported opinion of the market value of the fee simple interest in the subject property as of the date of appraisal. This report and the value conclusion reached is based on information provided to, or obtained by, the appraisers during our appraisal process, including research we conducted of the subject's competing market area. Jurisdictional Exceptions The analysis of the property is subject to a Jurisdictional Exception. A Jurisdictional Exception is defined as "{i}f any applicable law or regulation precludes compliance with any part of USPAP, only that part of USPAP becomes void for that assignment, " Further a Comment in the Jurisdictional Exception Rule states, in part, "When an appraiser properly follows this Rule in disregarding a part of USPAP, there is no violation of USPAP. "l Jurisdictional Exceptions are required when federal law relating to the valuation of real estate for just compensation precludes compliance with USPAP standards. The Uniform Standards of Professional Appraisal Practice (USPAP) requires that exposure time must be estimated and reported when exposure time is a component of the definition of market value. However, the definition of market value as per the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) dictates that market value estimates must not be linked to a specific exposure time. Therefore, the appraisers have invoked the use of the Jurisdictional Exception Rule as outlined in USPAP as it relates to linking market value to a specific exposure time. The estimated Market Value of the fee simple interest in the subject property as of the date of inspection, effective as of May 16, 2019, is: ONE HUNDRED FIFTY-FIVE THOUSAND DOLLARS $155,000 1 Uniform Standards of Professional Appraisal Practice, 2018-2019 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C., Ibid., p. 14. The appraisal report that follows summarizes the assignment, describes the area and the subject property, and explains the valuation techniques and reasoning leading to the final opinion of market value. As in the case of any narrative appraisal, your attention is directed to the Assumptions and Limiting Conditions which are included in the accompanying report. Respectfully submitted, Chad C. Johnson, State of Washington Certification 1101662 CCJ-4'1"U J?�'� -- Leslee A. Gilmore, Associate State of Washington Certification 1101840 TABLE OF CONTENTS TitlePage........................................................................................................................... i Letterof Transmittal......................................................................................................... ii Tableof Contents.............................................................................................................. v SubjectPhotographs......................................................................................................... vi Factual Description PropertyIdentification...................................................................................................... 1 InterestAppraised............................................................................................................. 3 Purpose/Function of the Appraisal.................................................................................... 3 Intended Use and User of the Appraisal........................................................................... 4 LegalDescription.............................................................................................................. 4 Scope................................................................................................................................. 5 SalesHistory..................................................................................................................... 6 Identification of Larger Parcel.......................................................................................... 6 LocationDescription......................................................................................................... 9 SiteDescription............................................................................................................... 13 Zoning............................................................................................................................. 22 Taxesand Assessments................................................................................................... 23 Description of Improvements.......................................................................................... 25 Analysis of Data and Opinions of Appraisers Highestand Best Use...................................................................................................... 28 PropertyValuation.......................................................................................................... 32 SalesComparison Approach........................................................................................... 33 Reconciliation................................................................................................................. 52 Certification.................................................................................................................... 53 Qualifications.................................................................................................................. 55 Assumptions and Limiting Conditions........................................................................... 60 Extraordinary Assumptions and/or Hypothetical Conditions ......................................... 64 SUBJECT PHOTOGRAPHS PHOTO ANGLES MAP PHOTOS TAKEN BY LESLEE A. GILMORE, MAY 16, 2019 PHOTO 1: SOUTHERLY VIEW OF FREMONT AVENUE, SUBJECT PROPERTY ON LEFT PHOTO 2: EASTERLY VIEW OF FREMONT AVENUE, SUBJECT PROPERTY ON RIGHT PHOTO 3: SOUTHEASTERLY VIEW OF SUBJECT PROPERTY FROM FREMONT AVENUE PHOTO 4: NORTHWESTERLY VIEW OF SUBJECT PROPERTY FROM FREMONT AVENUE -a s 13 PHOTO 7: EXTERIOR VIEW OF SINGLE-FANHLY RESIDENCE PHOTO 8: EXTERIOR VIEW OF STORAGE SHED 9 PHOTO 9: INTERIOR VIEW OF RESIDENCE - LIVING ROOM AREA PHOTO 10: INTERIOR VIEW OF RESIDENCE - KITCHEN AREA PHOTO 11: INTERIOR VIEW OF RESIDENCE - TYPICAL BEDROOM PHOTO 12: INTERIOR VIEW OF RESIDENCE - BATHROOM FACTUAL DESCRIPTION EXECUTIVE SUMMARY Property Identification: Bochat Property 151 Fremont Avenue Quilcene, Jefferson County, Washington 98376 Owner of Record: According to the title report provided, ownership of the subject property is vested with Brian Bochat. Property Location: The subject site is located in Quilcene along Fremont Avenue, southeasterly of Highway 101 in Jefferson County, Washington. Property Type: The subject property consists of two non-contiguous parcels. Parcel 991200505 contains an area of 0.52 acres and is improved with a single-family residence. The second parcel (Parcel 991200503) contains an area of 0.14 acres and is unimproved. Assessor's Parcel Number: 991200503 & 991200505 Site Area: According to Jefferson County records the subject property contains a total area of 0.66 acres. Parcel 991200505 contains an area of 0.52 acres and Parcel 991200503 contains an area of 0.14 acres. Real Estate Taxes: $902.39 / 2019. Taxes are reported to be paid current as of the date of inspection. Zoning: Rural Residential (RR -5), per the Jefferson County zoning ordinance. The base zoning allows for one dwelling unit per five acres. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 1 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Flood Insurance Zone: According to the Jefferson County GIS mapping system, effective as of May 15, 2019, portions of the subject property is located within Zone AE and within a Floodway. All of Parcel 991200503 is located within a Floodway. The southeasterly portion of parcel 991200505 is located in Zone AE and Floodway. Zone AE is defined as "an area inundated by 1% annual chance flooding, for which BFEs have been determined." A Regulatory Floodway is defined as "the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than a designated height." The subject property owner, Brian Bochat, stated that the area roughly corresponding to the floodway boundary has periodically flooded in the past but that the water has never flooded the structures located on the property. Flooding in the community is common and most of the structures with livable finished areas are built above the base flood elevation, which according to Jefferson County, is at 20.1 feet above sea level in this area. According to the Jefferson County Code states that "construction or reconstruction of residential structures is prohibited within designated floodways, except for (i) repairs, reconstruction, or improvements to a structure which do not increase the ground floor area; and (ii) repairs, reconstruction or improvements to a structure, the cost of which does not exceed 50 percent of the market value of the structure." Thus, it appears that the ability of a property owner to either redevelop or substantially repair/remodel may be restricted. Improvements: The subject property is improved with a three bedroom/one bathroom single-family home containing a total finished area of 970 square feet. In addition, there is a storage shed located on the property that has an area of 216 square feet. Highest and Best Use: The Highest and Best Use of the subject property is for residential use with a single home site. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 2 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Most Probable Buyer: The most probable buyer of the subject property is an owner/user. Interest Appraised: Fee simple interest, subject to existing easements and reservations in the title report. The fee simple estate is defined as: "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. "2 Purpose/Function of the Appraisal: The purpose of this appraisal is to prepare and submit a supported opinion of the market value of the fee simple interest in the subject property as of the date of appraisal. Date of Inspection: The subject property was inspected on May 16, 2019. Effective Date of Value: May 16, 2019 Date of Appraisal Report: June 3, 2019 Market Value Indication: $155,000 INTENDED USE AND USER OF THE APPRAISAL Client: Jefferson County Environmental Public Health. A Client is defined as: "The party or parties who engage, by employment or contract, an appraiser in a specific assignment. "3 Intended Users: This report is prepared for the client, Jefferson County Environmental Public Health. The Washington State Recreation and Conservation Office (RCO) is also identified as an intended user. Intended User is defined as: "The client and any other party as identified, by name or type, as users of the appraisal or appraisal review report, by the appraiser based on communication with the client at the time of the assignment. -4 2 The Dictionary of Real Estate Appraisal, 61h Edition, Appraisal Institute, Chicago, 2015, p. 90 3 Uniform Standards of Professional Appraisal Practice, 2018-2019 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C., p. 4. 4 Ibid., p. 5. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 3 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Intended Use: The intended use of the appraisal is to determine the current fee simple market value. Intended Use is defined as: "The uses) of an appraiser's reported appraisal or appraisal review assignment results, as identified by the appraiser based on communication with the client at the time of the assignment. -5 LEGAL DESCRIPTION A legal description relevant to the subject property is included in a Commitment for Title Insurance issued by Jefferson Title Company, effective date March 19, 2019. A copy of the title report is included in the Addenda section of this report. DEFINITION OF MARKET VALUE "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 value, 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. The value conclusion herein is predicated on the assumption that the property will be exposed to the market for a reasonable amount of time. The Uniform Standards of Professional Appraisal Practice (USPAP) requires that exposure time must be estimated and reported when exposure time is a component of the definition of market value. However, the definition of market value as per the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) dictates that market value estimates must not be linked to a specific exposure time. Therefore, the appraisers have invoked the use of the Jurisdictional Exception Rule as outlined in USPAP as it relates to linking market value to a specific exposure time. 5 Ibid., p. 5. 6 Uniform Appraisal Standards for Federal Land Acquisitions, Interagency Land Acquisition Conference, Washington, D.C. 2016, Section 1.2.4, page 10. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 4 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION DEFINITION OF AS IS MARKET VALUE "The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. "7 MOST PROBABLE BUYER The most probable buyer of the subject property is an owner/user. SCOPE The scope of the appraisal assignment relates to the field work, inspection, research, and analysis conducted for preparation and valuation of the subject property's estimated Market Value. This appraisal assignment involved an inspection of the subject property and the comparables. The property was inspected by the appraisers on May 16, 2019. We were accompanied on the inspection by the current owner, Brian Bochat. Financial, statistical, and demographic data was gathered using various informational systems such as the Jefferson County GIS database, the Northwest Multiple Listing Service, and various other authoritative sources. Information regarding comparable sales was confirmed with parties involved in the respective transactions. Descriptive information relating to the subject property was obtained through County public records as well as our physical inspection of the property and information provided by the client. Within this appraisal we have considered all applicable approaches to the valuation of the property. The Highest and Best Use of the subject property is for continued residential use. The improvements were built over a period of years. In this instance the Sales Comparison Approach is used to value the subject as this is the method used by buyers and sellers for this property type. After assembling and analyzing the data, as defined within this appraisal development process, the final estimates of value are made. The report is prepared with the intent to be in accordance with the current Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA), the current Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Foundation, and the appraisal guidelines of the Washington State Recreation and Conservation Office (RCO). 7 The Dictionary of Real Estate Appraisal, 6T, Edition, Appraisal Institute, Chicago, 2015, p. 13. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 5 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION USE HISTORY The subject property has historically been used for residential purposes. It is our understanding that this residential use has been in place on the property for more than ten years. RENTAL HISTORY The property has no known rental history within the last ten years. SALES HISTORY According to the title report provided, ownership of the subject property is vested with Brian Bochat, as his separate estate. Mr. Bochat purchased the subject property from Robert J. Wilbur Trustee for $65,000 on June 27, 2017. Our "as is" value conclusion for the subject property of $155,000 is higher than this historical sale price due the fact that the current owner completed some deferred maintenance repairs to the property after his purchase and also due to the appreciation that has occurred in the market since the purchase. We are aware of no other transfers of ownership of the subject property during the previous ten years. It is our understanding that this appraisal, in part, will be utilized to establish the value of the property in order to facilitate a sale to Jefferson County. IDENTIFICATION OF THE LARGER PARCEL A part of the appraisal process is to identify the larger parcel for valuation purposes. In defining the larger parcel there are three basic conditions that need to be established. 1. Unity of Ownership 2. Contiguity 3. Unity of Highest and Best Use The subject property is comprised of Jefferson County Assessor's parcel numbers 991200503 and 991200505. Based on a review of Jefferson County records, none of the other surrounding/adjacent properties are under similar ownership as the subject. Thus, from a "unity of ownership" perspective, the larger parcel consists of these two parcels, containing an area of 0.66 acres. The second category, "contiguity," normally requires that physical contiguity be present for a larger parcel to exist. However, this condition is not always mandatory. In the case of the subject property, a parcel owned by Jefferson County, containing an area of 0.13 acres, separates the two subject parcels. The question that needs to be answered would be, is it probable that the separated tracts would be utilized as an integrated single entity, even with the separation? The Jefferson County owned parcel and Parcel 991200503 are BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 6 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION 100% located within a floodway area. In addition, the southeasterly portion of subject parcel 991200505 is also impacted by a floodway area. As these areas cannot be developed due to their location in a floodway area, the impact of the separation between the two subject parcels is minimal. Overall, from the perspective of "contiguity" the subject property could either be defined as two separate larger parcels or as a singular larger parcel due to the fact that the separation between the two areas of the site is negligible. In considering the third category, "unity of use," one of the main considerations is that the properties have an integrated Highest and Best Use. As the subject property has two physically distinct sections on either side of a Jefferson County owned parcel, the question arises: would the Highest and Best Use be achieved by dividing the subject property into two separate parcels? Subject Parcel 991200503 is a smaller parcel containing an area of 0.14 acres. In addition, the entire parcel is impacted by floodplain, floodway, and potential wetland/buffer issues. Because of these issues, it is not anticipated that Parcel 991200503 could be developed separately from Parcel 991200505. Thus, although Parcel 991200503 is a legal parcel that is separated by a county owned property, it is unlikely that it could support independent development. Thus, in regards to "unity of use", the larger parcel is concluded to be the two non-contiguous Assessor's parcels. UNAVAILABILITY OF INFORMATION The appraisers were not provided with any soils, wetlands, or environmental studies relevant to the subject property. We are not aware of any improper soils or environmental issues that would negatively impact the Highest and Best Use of the subject property. The Jefferson County GIS mapping system does indicate that portions of the subject property are impacted by both wetland and flood issues. SUMMARY OF THE APPRAISAL PROBLEMS ENCOUNTERED Within this assignment, the appraisal problems encountered are primarily relevant to the location of the subject site within the rural town of Quilcene. Thus, we have researched and endeavored to utilize comparable properties with similar characteristics as it relates to residential use potential, focusing on private, non -agency transactions. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 7 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION U r -' Sedro-Woolley Lopez Island Burlington s Saanich Fidalgo island Victoria tuft Vernon 74`I La Conner 0 Oak Harbor Stanwood Q eoupeville Camano Island Arlin Por: Ange`es Port Townsend 14T $ACJll+frl f Iwha Port Marysvill Biyn Hadlock-li-andale {25 Whidbey npic Island Everett Brings Olympic Jational Park Olympic National Forest Grisdale it9 Iia, Lili,waup Hoodsport Union tai Shelton -, Por, Ludlow t" ® 5no Lynnwood 51113 iECT PROPERTY �.� C3 acs Bothell Poulsbo 30'5 Br -.neon 3 lZf'f�' Seabeck Bainbridge tsland Seattle Bremerton }' (D 1060 Beliair SeaTac ,i Vashon Island Kent Allyn-Grapeview Federal Way Tacoma r sa' Lakewoodll�up 0.1 iGZ AREA MAP BOCHAT PROPERTY,151 FREMONT AVENITE, QUILCENE, WASHINGTON 98376 Page 8 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION LOCATION DESCRIPTION A neighborhood is defined as a group of complementary land uses. Neighborhoods are affected by social, economic, governmental, and environmental forces which influence property values in the vicinity of the subject property which, in turn, directly affect the value of the subject property itself. The subject is located in the community of Quilcene within Jefferson County. For reference, an area map showing the subject property's location relative to metropolitan areas within the Puget Sound Region is presented on the previous page. A location map showing the subject property's immediate neighborhood is presented on the following page. The overall subject neighborhood is rural in nature, with a mixture of forestry uses, agricultural uses, and residential development in evidence. The site is located on the easterly side of Fremont Avenue, southeasterly of U.S. Highway 101, in the community of Quilcene in unincorporated Jefferson County, Washington. The subject is located approximately 0.75 miles westerly of Hood Canal. The Quilcene area includes some limited services, with a greater level of commercial services available in Port Townsend, the county seat of Jefferson County, approximately 20 miles to the north. Hood Canal is located easterly of the subject property. Hood Canal is a saltwater fjord forming the western lobe of Puget Sound. This waterway is long and narrow with an average water width of 1.5 miles and a mean depth of 177 feet and has over 200 miles of shoreline. The Hood Canal area is a popular recreation spot for area residents. Boating, fishing, swimming, and hiking are all popular activities enjoyed by residents within the area. Port Townsend represents the only incorporated area in Jefferson County. Population increase for Jefferson County between 1990 and 2000 was dramatic in terms of the percentage increase, estimated at nearly 27%, but relatively small in terms of the total number of persons involved, raising the total of 20,406 in 1990 to 25,953 for the 2000 Census, an increase of 5,547 persons. The 2010 Census resulted in a county population of 29,872. This small population base reflects the rural nature of the county, and the resource-based economy. The majority of the population is concentrated in the eastern part of the county which includes the city of Port Townsend, and the communities of Port Hadlock, Chimacum, and Port Ludlow. Port Townsend is home to approximately one- third of the county population, with an estimated 2018 population of 9,545 individuals, compared to 8,334 in the 2000 Census and 9,113 in the 2010 Census. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 9 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Leland a o, Quillche East C}uflcene Qu�IG ne SUBJECT PROPERTY IF LOCATION MAP Camp Discovery BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 10 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION By most accounts, it is likely that future population growth for Jefferson County will continue at a slow to moderate pace. Port Townsend is also expected to continue to be the primary area of growth, which may be channeled by the pressures imposed by the Growth Management Act. In summary, the subject property is within a rural area of eastern Jefferson County, with most surrounding uses being resource-based uses and single family residential development. Demographic Analysis The map on the following page shows three rings surrounding the subject property, delineating a one -mile radius, a three-mile radius, and a five -mile radius. Population trends within the three radii are summarized in the exhibit below. POPULATION SUMMARY ONE -MILE RADIUS Total Average Annual Year Source Population Change (%) Change (%) 2010 Census 300 N/A N/A 2018 Estimate 317 5.67% 0.81% 2023 Projection 331 4.42% 0.88% THREE-MILE RADIUS Total Average Annual Year Source Population Change (%) Change (%) 2010 Census 1,054 N/A N/A 2018 Estimate 1,105 4.84% 0.69% 2023 Projection 1,151 4.16% 0.83% FIVE -MILE RADIUS Total Average Annual Year Source Population Change (%) Change (%) 2010 Census 1,486 N/A N/A 2018 Estimate 1,548 4.17% 0.60% 2023 Projection 1,607 3.81% 0.76% Source: Esri As indicated, the area has generally exhibited slight growth over the survey period, although the total real change in population was relatively low, predictable for this rural area. The largest growth on a percentage basis is anticipated to occur within the one -mile radius. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 11 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION DEMOGRAPHIC STUDY MAP In summary, the subject property is within a rural area of Jefferson County near the community of Quilcene, with most surrounding uses being resource/agricultural-based uses, recreational uses associated with Hood Canal, and single-family residential development. BOCHAT PROPERTY,151 FREMONT AVENITE, QUILCENE, WASHINGTON 98376 Page 12 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION PROPERTY DESCRIPTION Site Description The subject of this appraisal is a property consisting of two Jefferson County Assessor's parcels. According to Jefferson County records the main parcel (Assessor's Parcel Number 991200505) contains an area of 0.52 acres. The second parcel (Assessor's Parcel Number 991200503) has an area indicated by county records of 0.14 acres. Thus, the subject property contains a total area of 0.66 acres (0.52 acres + 0.14 acres). The subject property is located along Fremont Avenue in the community of Quilcene in unincorporated Jefferson County. The subject property is located southeasterly of Highway 101 and just northerly of the Big Quilcene River. The two parcels of the subject property are separated by a parcel containing an area of 0.13 acres which is owned by Jefferson County. A portion of the main parcel and all of the second parcel of the subject property are impacted by floodway and potential wetland/buffer issues. All of the improvements located on the subject property are located on Parcel Number 991200505. The improvements on this parcel are located on the northeasterly portion of the site, outside of the floodway and potential wetland areas. These improvements include a single-family home containing a total finished area of 970 square feet as well as a storage shed containing an area of 216 square feet. Parcel Number 991200503 is unimproved. An aerial view of the subject site is shown on the following page, with the approximate boundaries of the subject property outlined in red. Further details regarding the subject site are provided below. Location: The subject property is located along Fremont Avenue in the community of Quilcene in unincorporated Jefferson County. The subject property is located southeasterly of Highway 101 and just northerly of the Big Quilcene River. According to Jefferson County records, the site address is 151 Fremont Avenue, Quilcene, Washington, 98376. Shape: Both parcels are rectangular in shape. Site Area: According to Jefferson County records, the main parcel (Assessor's Parcel Number 991200505) contains an area of 0.52 acres. The second parcel (Assessor's Parcel Number 991200503) has an area indicated by county records of 0.14 acres. Thus, the subject property contains a total area of 0.66 acres (0.52 acres + 0.14 acres). BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 13 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION AERIAL VIEW OF SUBJECT SITE SUBJECT PROPERTY OUTLINED IN RED BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 14 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Development Density: Rural Residential (RR -5), per the Jefferson County zoning ordinance. The base zoning allows for one dwelling unit per five acres. Access: The subject property is accessed from Fremont Avenue. Fremont Avenue is a two-way, two-lane street. Topography & Coverage: The subject exhibits level topography with an approximate elevation, according to the Jefferson County GIS mapping system, of 20 feet above sea level. A topographic map of the subject site is shown on the following page, with the approximate boundaries of the subject property outlined in red. Coverage on the site includes the improvements as well as a mixture of grass, brush, and tree cover. View Amenity: The subject has typical territorial/neighborhood views. In addition, from the westerly portion of the main parcel there are views of the Olympic mountains to the west. Utilities: Electrical and telephone service are extended to the subject property. The subject site is not served by public water or sanitary sewer service. However, the site is served by a private well and septic system. Timber: The improved portion of the subject property includes minimal tree cover. However, the easterly portion of the site does include some tree cover. This portion of the site is located within a floodway and thus, any commercial harvesting of the subject property would most like not be allowed. In addition, based on market comparables, the vast majority of property owners in the area typically retain most of the trees on a property as it provides an aesthetic amenity. Easements: A title report relevant to the subject property, as prepared by Jefferson Title Company, effective date March 19, 2019, was provided. The title report indicates that there are no atypical easements or encumbrances on the subject property. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 15 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate i F,,.-: Fo¢s; Contours 1 2 TOPOGRAPHIC MAP FACTUAL DESCRIPTION BOCHAT PROPERTY,151 FREMONT AVENITE, QUILCENE, WASHINGTON 98376 Page 16 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Soils: Soils reports or studies for the subject property were not available. Thus, data from the U.S. Department of Agriculture's (USDA) Natural Resource Conservation Service mapping for soils characteristics are utilized. A soils map is presented on the following page for the reader's reference, with the approximate boundaries of the subject site outlined in red. Based on the soils map, the subject site is comprised of two primary soil types. The westerly approximate one-half of the site is comprised of Hoodsport very gravelly sandy loam, 0 to 15 percent (HoC). This nearly level to rolling soil is on glacial terraces. The soil is moderately well drained and permeability is moderately rapid. This soil is used mainly for producing trees and for wildlife habitat and recreation uses. Besides production of tress, another important use is for rural woodland homesites. The easterly half of the site is comprised of Belfast silt loam (BG). The Belfast silt loam is nearly level and typically found on flood plains. This soil is well drained and permeability is moderate. A large portion of this soil type is used for growing hay, fruit, and vegetable crops. Wooded areas are used as a source for woodland products, for wildlife habitat, recreation areas, and rural home sites. Wetlands: According to the Jefferson County GIS mapping system, all of Assessor's Parcel 99120503 and the approximately one- half of the easterly portion of Parcel 991200505 is impacted by potential wetland areas. In addition, during our inspection, the property owner confirmed that these portions of the property are "wet." In order to ascertain the exact location of any wetlands/buffer areas located on the subject site a formal wetland delineation of the site would need to be conducted. A wetlands map is presented on Page 19 for the reader's reference, with the approximate boundaries of the subject site outlined in red. Hazardous Wastes: The appraisers are not qualified to determine the presence of hazardous waste. No unusual conditions or other items suggesting that the site is negatively impacted by hazardous contamination during the inspection of the subject site were observed. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 17 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION HoC Bu enue - SOILS MAP SUBJECT PROPERTY OUTLINED IN RED BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 18 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION —ftWo—'TAnue Wwdandi WETLANDS MAP SUBJECT PROPERTY OUTLINED IN RED BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 19 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Minerals: Ownership of the subject property appears to include the underlying mineral estate. However, there is minimal potential of mineral extraction impacting the subject property's market value in this instance. Flood Insurance Zone: According to the Jefferson County GIS mapping system, effective as of May 15, 2019, portions of the subject property is located within Zone AE and within a Floodway. All of Parcel 991200503 is located within a Floodway. The southeasterly portion of parcel 991200505 is located in Zone AE and Floodway. Zone AE is defined as "an area inundated by 1% annual chance flooding, for which BFEs have been determined." A Regulatory Floodway is defined as "the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than a designated height." The subject property owner, Brian Bochat, stated that the area roughly corresponding to the floodway boundary has periodically flooded in the past but that the water has never flooded the structures located on the property. Flooding in the community is common and most of the structures with livable finished areas are built above the base flood elevation, which according to Jefferson County, is at 20.1 feet above sea level in this area. According to the Jefferson County Code states that "construction or reconstruction of residential structures is prohibited within designated floodways, except for (i) repairs, reconstruction, or improvements to a structure which do not increase the ground floor area; and (ii) repairs, reconstruction or improvements to a structure, the cost of which does not exceed 50 percent of the market value of the structure." Thus, it appears that the ability of a property owner to either redevelop or substantially repair/remodel may be restricted. A soils map is presented on the following page for the reader's reference, with the approximate boundaries of the subject site outlined in red. Channel Migration: According to Jefferson County GIS mapping system, the subject property is located in a high-risk zone for stream channel migration. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 20 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION FLOOD MAP SUBJECT PROPERTY OUTLINED IN RED BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 21 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Zoning The zoning for the subject property is Rural Residential (RR -5), per the Jefferson County Code. The purpose of this district is to provide "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. " This zoning designation allows for a base density of one dwelling unit per five acres. Outright permitted uses include, but are not limited to, single-family residences, duplexes, home businesses, bed and breakfast residences, mineral extraction activities, parks and playfields, recreational facilities, and aquaculture activities and uses. The subject property contains an area of 0.66 acres. Thus, the current single-family use of the site is a legal non -conforming use due to site size. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 22 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Taxes and Assessments The tax and assessment information relevant to the subject property is summarized below, with the parcel highlighted on the Assessor's Map on the following page. 2019 taxes are based on assessed values for the year 2018. Experience has shown the assessed value is often an unreliable indicator of market value, despite the assessor's mandate to assess all property at 100% of market value. This appears to be the case with the subject property with the estimated Market Value herein being higher than the total assessed value. As of the effective date of appraisal, the Jefferson County Assessor/Treasurer's Office indicates that the taxes are paid current. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 23 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate JEFFERSON COUNTY ASSESSOR DATA Land Improve. Total 2019 Parcel Value Value Value Taxes 991200503 $2,200 $0 $2,200 $50.76 991200505 $45,676 $39,000 $84,676 $851.63 Total $47,876 $39,000 $86,876 $902.39 2019 taxes are based on assessed values for the year 2018. Experience has shown the assessed value is often an unreliable indicator of market value, despite the assessor's mandate to assess all property at 100% of market value. This appears to be the case with the subject property with the estimated Market Value herein being higher than the total assessed value. As of the effective date of appraisal, the Jefferson County Assessor/Treasurer's Office indicates that the taxes are paid current. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 23 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION ASSESSOR'S PARCEL MAP BOCHAT PROPERTY,151 FREMONT AVENITE, QUILCENE, WASHINGTON 98376 Page 24 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Description of Improvements The subject site is currently improved with a one-story style single-family residence and a storage shed. The home consists of three bedrooms and one bathroom and contains a total area of 970 square feet. The home has a living room, a dining area, the kitchen, three bedrooms, and a full bathroom. In addition to the home, the property is also improved with a detached storage shed with an area of 216 square feet. County records indicate that the home was originally constructed in 1948. The home has been updated several times and has been well maintained. After purchasing the property, the owner cured some deferred maintenance on the house including removing moss and completing some repairs to the roof. In addition, the owner completed some updating on the landscaping that was not maintained prior to the purchase of the property. Currently, the interior of the home is in need of some updating. The kitchen needs a new stove/oven and refrigerator/freezer. Also, the flooring in the bathroom needs to be replaced, the countertops in the kitchen need to be updated, and the kitchen cabinets need to be re- painted. In addition, the home needs new windows. The owner of the subject property is a contractor and estimated that it would cost approximately $10,000 to complete this work. Added to this is an amount of 10% to account for entrepreneurial profit, for a total cost of $11,000 ($10,000)(1.10). This will be considered in the analysis to follow. Further details of the structures are presented. A sketch of the single-family home is presented on the following page. Building Area: 970 square feet. Design: The home is a three-bedroom, one bathroom home which also includes a living room, dining area, and a kitchen. Foundation: The house has a concrete foundation. Exterior Walls: Wood framed with wood siding. Interior Walls: Painted gypsum wall board. Floor Coverings: Cork, hardwood, and vinyl flooring. Roof: Wood truss structure with a shingle roof cover. Electrical: Adequate. HVAC: The structure is heated with electric baseboard heaters. In addition, the living room is equipped with a wood burning stove. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 25 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION 13.0' .0' 4.5' Bathroom 5.' Bedroom Kitchen Bedroom Dining Area 35.5' Bedroom Living Room 24.0' SINGLE-FAMILY RESIDENCE BUILDING SKETCH BOCHAT PROPERTY,151 FREMONT AVENITE, QUILCENE, WASHINGTON 98376 Page 26 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate FACTUAL DESCRIPTION Plumbing: The structure includes one full bathroom. Fixtures in the bathroom include a toilet, a sink, and a tub/shower combination. In addition, this room is equipped with a full size washer and dryer. The kitchen also includes typical features. Fenestration: The building includes a wood frame main entry door. Currently the windows consist of single pane glass in wood frames. The windows of the home need to be updated. This appraisal assumes that the house will be updated with a new window package that will include double pane windows in vinyl frames. Quality: Average Condition: Average Year Built: County records indicate that the home was originally constructed in 1948. Actual Age: 71 years. Effective Age: 15 years, assuming the needed repairs/updates are completed. Life Expectancy: Fifty-five years (applicable to Average Quality Single Family Residence, Class D construction). The Life Expectancy of the subject improvements has been estimated according to the Marshall Valuation Service Manual, Section 97, Page 11. Remaining Physical Life: Approximately 40 years. Shed Building: In addition, the subject site is improved with a metal sided storage shed that contains an area of 216 square feet. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 27 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS HIGHEST AND BEST USE By identifying and interpreting the market forces that affect a specific property in a local and regional context, the appraisers determine the property's Highest and Best Use. Highest and Best Use is a fundamental concept in real estate appraisal because it focuses market analysis on the subject property and allows the appraisers to consider the property's optimum use in light of market conditions on a specific date. Highest and Best Use reflects a basic assumption about real estate market behavior that the price a buyer will pay for a property is based on his or her conclusions about the most profitable use of the site or property. Therefore, sites and improved properties tend to be put to their Highest and Best Uses. However, the determination of a property's Highest and Best Use set forth in an appraisal may or may not conform to the existing use. The determination of highest and best use must be based on careful consideration of prevailing market conditions, trends affecting market participation and change, and the existing use of the subject property. Highest and best use is defined as: "The reasonably probable and legal use of vacant land or improved property, which is physically possible; appropriately supported, financially feasible and that result in the highest value. "8 This definition introduces the four key criteria that a property use must satisfy to qualify as the highest and best use. These criteria include requirements that a particular use must be: • legal under zoning, building and other codes or other restrictions • physically possible as determined by analysis of access, shape, topography, soils and other considerations • financially feasible in that it produces a positive return on invested capital • maximally productive, whereby the use produces the highest residual land value corresponding to the market return for such use. These criteria must be evaluated in the highest and best use analysis. Because the use of land can be limited by the presence of improvements, Highest and Best Use is determined for the land or site as though vacant and available to be put to its highest and best use, and separately for the property as improved. 8 The Appraisal of Real Estate, 141' Edition, The Appraisal Institute, Chicago: Page 333. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 28 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS The determination of Highest and Best Use as though vacant reflects the fact that land value is derived from its potential use. Land has limited value unless there is a present or anticipated use for it; the amount of value depends on the nature of the land's anticipated use, according to the concept of surplus productivity. Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital and coordination, is generally regarded as the highest and best use of the land as though vacant. In other words, the highest and best use of land as though vacant is the use that brings the highest return to the land after the three other agents of production have been compensated. To determine the Highest and Best Use of the land as though vacant, the appraisers assume that the parcel of land in question has no improvements. Even a site with a large building on it can be made vacant by demolishing the building. The question to be answered is, `If the land were vacant, what improvement will create the most value?" The second determination of highest and best use refers to the optimum use that could be made of the property and all existing structures. Analysis of the highest and the best use of a property as improved implies that any existing improvement should be renovated or retained as is, so long as it continues to contribute to the total market value of the property or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one. An analysis of the Highest and Best Use as though vacant and the Highest and Best Use as improved are discussed below. HIGHEST AND BEST USE, AS THOUGH VACANT The criteria for the determination of the Highest and Best Use of the subject property is based upon legal and physical considerations adjusted for financial feasibility and maximal productivity considerations. Legally Permissible Uses The first test of Highest and Best Use is to determine what is legally permissible, or what can legally be constructed on the property. The zoning for the subject property is Rural Residential (RR -5) which allows for one dwelling unit per five acres. Uses within this designation are primarily residential in nature. Thus, from a legal perspective, being RR - 5 zoning, the subject property can support a relatively narrow range of uses, primarily residential in nature. The subject property consists of two Assessor's parcels containing a total area of 0.66 acres and can be accessed from Fremont Avenue. As the site consists of two Assessor's parcels, legally each parcel could support one residence. However, due to BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 29 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS the fact that Parcel 991200503 is 100% located in a floodway and also impacted by wetland and buffer areas this parcel cannot support development. Thus, the subject property can legally support one homesite. Physically Possible Uses The next test of highest and best use is the physical possibility of constructing an improvement on the site. The site has relatively level topography and although impacted by flood, wetland, and channel migration issues, there is enough land located outside of any critical areas that development of the site with one residence is physically possible. The site may be impacted by wetland/buffer areas and it is anticipated that development of the subject site would require that further studies be completed. Nearby properties located along Fremont Avenue are improved with single family residences on acreage sites. Soils appear to be suitable for residential development and electrical service is available to the property. Water and sewer service would require on-site systems, which is typical for the neighborhood. Based, in part, on the size of the subject property and existing developments on other parcels in the area, the use of the site to support one residence is physically possible. Financially Feasible Uses The third test is for financial feasibility. A project's financial feasibility is measured by whether the project can produce a positive return on its investment. The subject zoning and physical/legal constraints allows residential development of the site with one residence. Most of the surrounding properties are either unimproved or are acreage tracts improved with a single-family residence. The subject has access from Fremont Avenue. The majority of improved sites in the neighborhood represent larger acreage tracts improved with one residence. Thus, the most financially feasible use of the subject property is for residential development of the site with one home site. Maximally Productive The fourth test of Highest and Best Use is maximum productivity. This test is to evaluate which use will generate the greatest rate of return or value for the property. The primary use which has passed the three previous tests is for residential use, specifically development with one home site. Thus, this type of use is concluded to be the maximally productive and the Highest and Best Use of the subject property as though vacant. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 30 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS HIGHEST AND BEST USE, AS IMPROVED As with analyzing the highest and best use of the subject site as though vacant, we will discuss the four key criteria that a property use must satisfy to qualify as the highest and best use, as improved. Legal Use The first test of highest and best use is to determine what is legally permissible, or what can legally be constructed on the property. The zoning for the subject property is Rural Residential (RR -5) which allows for one dwelling unit per five acres. Development with the subject property with a residential use is an allowed use under the RR -5 zoning designation. The subject site is improved with a single-family home. This use represents a legally permitted use of the subject site, albeit legally nonconforming due to site size. Physically Possible The next test of highest and best use is the physical possibility of utilizing the property for the legally permitted uses. The subject site contains an area of 0.66 acres, which is sufficient area to support the legally allowed/current use and appropriate utility systems. The residence needs some updating but once completed this structure will be in average condition. There do not appear to be any physical limitations, once the updates are completed, that preclude the current use of the property. Based on the surrounding development, the subject property is supported on a physical basis. Financially Feasible The third test is for financial feasibility. A project's financially feasibility is measured by whether the project can produce a positive return on the investment. The subject supports a residence and supporting outbuildings. We are not aware of an alternative use that would provide a greater return to the property. Thus, the most financially feasible use is for the continuation of the site in its current configuration, once the needed updates are completed. Maximally Productive The fourth test of highest and best use is maximum productivity. This test is to determine which use will generate the greatest rate of return or value for the property. The primary use which has passed the three previous tests is for continued use in support of a residence. Thus, the maximally productive use, and thus the highest and best use of the subject property as improved, is for its continued use, once the needed updates are completed, as a single-family residence. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 31 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS PROPERTY VALUATION The Income Approach, Cost Approach, and Sales Comparison Approach are the three basic techniques or approaches to value when appraising real property. All three approaches were considered in the valuation of the subject property. The Income Approach to value is a technique whereby the net income of an income producing property is capitalized at a rate that provides a return of interest on the money invested and a recapture of the capital investment in the improvement over a reasonable term of the investment. Another way of stating this, it converts the income stream into value. The Cost Approach requires the appraiser to estimate the reproduction or replacement cost new of the building, subtract the depreciation due to all causes, and then add the value of the land. The Sales Comparison Approach involves direct comparisons of the property being appraised to similar properties that have sold in the same or in a similar market in order to derive a market value indication for the property being appraised. All three approaches were considered. Relative to the Income Approach, it is not typical for single-family residences on similar sized sites to be rented in the area. Properties of this magnitude with the subject's combination of existing improvements are rarely leased. Hence, the Income Approach would not be considered by a market participant and is not utilized. According to Jefferson County records, the residence was originally constructed in 1948. This structure has been updated/remodeled several times since construction was completed. In the subject's instance, the replacement cost of the existing structures would not typically be a consideration of a knowledgeable purchaser; rather, a potential buyer or seller of this property would consider the cost to obtain an existing substitute. Because of these considerations the use of the Cost Approach for valuing the subject property was considered but found not applicable and therefore was not utilized. In addition, purchasers put virtually no reliance on this approach when making buy/sell decisions on existing properties similar to the subject. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 32 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS The Sales Comparison Approach involves direct comparisons of similar properties that have sold in the same or in a similar market to the subject in order to derive a market value indication for the property being appraised. As buyers of this type of property base their purchasing decisions on the cost to obtain an existing substitute property, the use of the Sales Comparison Approach is the only applicable approach in valuing the subject property. Therefore, the Sales Comparison Approach has been used as a basis in arriving at an opinion of value for the subject property, as of the date of inspection, May 16, 2019. The home is in need of some minor updating which would include updating the flooring in the bathroom, replacing the countertops in the kitchen, painting the kitchen cabinets, and replacing the windows. Thus, we will first analyze the subject as if these repairs/updates have been completed. We will then deduct the cost of these needed repairs/updates, which is necessary to determine the market value as of the date of inspection. SALES COMPARISON APPROACH The Sales Comparison Approach involves the process of comparing improved properties which have recently sold with the subject property. The actual comparison process involves adjustments to reflect the degree of similarity between the comparable properties and the subject property in terms of the time of sale, location, physical characteristics (including quality, condition and size), and utility (zoning, topography, and the like). Within this approach, we will evaluate comparable sales data to formulate a value estimate for the subject property. The typical comparison process involves adjustments to reflect the degree of similarity between the comparable sale properties and the subject property. A search was made to locate recent sales of properties similar to the subject in the competing area. The subject is improved with a home with an area of 970 square feet on a site containing an area of 0.66 acres. In this analysis, the comparative methodology utilized is the overall sale price of the property. Based on our research on the NWMLS data base and conversations with real estate brokers active within the Quilcene market, there is a lack of supply of homes or even vacant sites available for sale in the community. Our search of the NWMLS data base indicated that there are currently no listings or either improved properties or vacant land within the "downtown" area of Quilcene. Brokers who were surveyed stated that this lack of supply as well as increased demand from prospective purchasers wanting the rural/small town lifestyle and recreational opportunities that are available in the area has had a positive impact on the real estate market Quilcene and they have seen a large increase in sale prices over the last approximate one year. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 33 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS Although the comparable data varies in terms of site size and improvements, the overall data provides a benchmark from which to value the subject property. Four closed sales located within the "downtown" area of Quilcene are analyzed herein. These sales are delineated in the following chart, arrayed from low to high based on the overall sale price of the property, with a map showing the location of the comparables in relation to the subject following the chart. Detailed analysis, photographs, and individual assessor's maps for each of the improved sales follow the location map. Sale IMPROVED SALE COMPARABLES Living Area Location Sale Date (Sq. Ft.) Site Area (Acres) Analysis Price S-1 90 Washington Street Jul -18 678 0.18 $150,000 Quilcene, WA S-2 21 Bowen Street Aug -17 1,445 0.33 $209,900 Quilcene, WA S-3 101 Washington Street Nov -1 7 1,410 1.76 $219,000 Quilcene, WA S-4 151 Bowen Street Feb -19 2,070 0.39 $230,000 Quilcene, WA BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 34 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS Historical lvtuseum Henery Hardware" Quilcene First Presbyterian Z5 c� f .C' SALE cOMPAi�-pl��� rS - m r. SALE COMPARABLE S - 1 U.S. Bank Branch Ileninstila Food Stor . Quilcene School District SALE COMPARABLE S - 2 SALE COMPARABLE s` -4 Quilcene School !4Y Y 101 Brewery at()E Ru3e Ss S: Twana Road House Quilcene United States Community Center 7 Postai Service er 5_ Landing ro01 1 anger Langer Rd a rti ouilcene Ave SUBJECT PROPERTY rr mint Bruner Drywaii Q COMPARABLE IMPROVED SALES MAP BOCHAT PROPERTY,151 FREMONT AVENITE, QUILCENE, WASHINGTON 98376 Page 35 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS IMPROVED SALE COMPARABLE S-1 Property Identification Record ID 7414 Property Type Single Family Residence Address 90 Washington Street, Quilcene, Jefferson County, Washington 98376 Location Westerly side of Washington Street, southerly of U.S. Highway 101 Assessor's Parcel Number 956100029 Instrument Statutory Warranty Deed Sale Data Grantor Bennet J. & Yasmin C. Armstrong Grantee Benjamin R. Lundahl & Sera N. Carr Sale Date July 20, 2018 Auditor's File Number 618041 Property Rights Fee simple Marketing Time 4 days Financing Cash to seller Verification Bruce Munn, Selling Broker; 360-765-4500, Confirmed by Lee Condition Gilmore Sale Price $155,000 Downward Adjustment $5,000 Seller paid closing costs Analysis Price $150,000 Land Data Land Size 0.18 Acres or 7,841 Sq.Ft. Topography Relatively level Utilities Public power, telephone, private septic & water Shape Rectangular Flood Info Not in a flood zone General Phvsical Data Building Area 678 Sq.Ft. Construction Type Wood frame Roof Type Wood truss/metal cover Foundation Concrete Electrical Assumed adequate HVAC In -wall cadet heaters/wood stove Stories 1 Year Built 1920 Condition Average Indicators Analysis Price $150,000 Highest & Best Use Continued residential use BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 36 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS Remarks This is the sale of a one -bedroom, one bath residence in the community of Quilcene. The property was listed in June of 2018 for $140,0000. A bidding war between two buyers occurred and the final contract price was $155,000 with the seller paying $5,000 in closing costs. The sale closed for this amount in July 2018. The one bedroom/one bathroom home contains an area of 678 square feet and was constructed in 1920. The home has been well maintained and remodeled many times and was in average condition at the time of sale. The property includes a storage shed with an area of approximately 200 square feet. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 37 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS 90 WASHINGTON STREET SINGLE FANHLY RESIDENCE BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 38 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS IMPROVED SALE COMPARABLE S-2 Property Identification Record ID 7415 Property Type Single Family Residence Address 21 Bowen Street, Quilcene, Jefferson County, Washington 98376 Location Southerly side of Bowen Street, westerly of U.S. Highway 101 Assessor's Parcel Number 937200503 Instrument Statutory Warranty Deed Sale Data Grantor Joanne & Todd M. Hudak Grantee Keven M. & Myra E. Gonyo Sale Date August 15, 2017 Auditor's File Number 609972 Property Rights Fee simple Marketing Time 6 days Financing Cash to seller Verification Amanda Zamora, Listing Broker; 917-375-2567, Confirmed by Lee Condition Gilmore Sale Price $209,900 Land Data Land Size 0.33 Acres or 14,375 Sq.Ft. Topography Relatively level Utilities Public power, telephone, private septic & water Shape Rectangular Flood Info Not in a flood zone General Phvsical Data Building Area 1,445 Sq.Ft. Construction Type Wood frame Roof Type Wood truss w/comp cover Foundation Concrete Electrical Assumed adequate HVAC In -wall cadet heaters/wood stove Stories 1 Year Built 1937 Condition Average Indicators Sale Price $209,900 Highest & Best Use Continued residential use Remarks This is the sale of a three-bedroom, 1.75 bath residence in the community of Quilcene. The property was listed in July of 2017 for $209,900. The seller accepted an offer to purchase the property at the list price six days after it was listed and the sale was finalized on August 15, 2017. The three bedroom/1.75 bathroom home contains an area of 1,445 square feet and was constructed in 1937. The home has been well maintained and remodeled many times and was in average condition at the time of sale. The property includes a detached one car garage with an area of 352 square feet and a storage shed with an area of 208 square feet. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 39 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS e . . r E --Li M 21 BOWEN STREET 0 SINGLE FANULY RESIDENCE BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 40 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate fir- M 21 BOWEN STREET 0 SINGLE FANULY RESIDENCE BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 40 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS IMPROVED SALE COMPARABLE S-3 Property Identification Record ID 7416 Property Type Single Family Residence Address 101 Washington Street, Quilcene, Jefferson County, Washington 98376 Location Easterly side of Washington Street, Westerly side of U.S. Highway 101, northerly of Bowen Street Assessor's Parcel Number 956100013 Instrument Statutory Warranty Deed Sale Data Grantor Larry & Lynn Hovde Grantee Fred R. Stern & Beth Stroh -Stern Sale Date November 08, 2017 Auditor's File Number 612155 Property Rights Fee simple Marketing Time 10 months Financing Cash to seller Verification Bruce Munn, Listing Broker; 360-765-4500, Confirmed by Lee Condition Gilmore Sale Price $175,000 Upward Adjustment $44.000 (Remodel/Repairs) Analysis Price $219,000 Land Data Land Size 1.76 Acres or 76,666 Sq.Ft. Topography Relatively level Utilities Public power, telephone, private septic & water Shape Triangular Flood Info Not in a flood zone General Phvsical Data Building Area 1,410 Sq.Ft. Construction Type Wood frame Roof Type Wood truss with comp cover Foundation Concrete Electrical Assumed adequate HVAC Electric baseboard Stories 1 Year Built 1934 Condition Average (after remodel) Indicators Analysis Price $219,000 Highest & Best Use Continued residential use BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 41 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS Remarks This is the sale of a three-bedroom, one bath residence in the community of Quilcene. The property was listed in December 2016 for $219,900. The three bedroom/one bathroom home contains an area of 1,410 square feet and was constructed in 1934. At the time of sale, the property needed to have some septic repairs completed and the home was partway through a remodel. Items that were part of the remodel that still needed to be completed included: repairs to the siding, repairs to the roof, and some minor updates in the interior. The buyer agreed to purchase the property "as is" and complete the repairs themselves and the list price of $219,900 was reduced to $175,000. The actual cost to complete the repairs was approximately $40,000. Added to this is an amount of 10% to account for entrepreneurial profit for an adjusted amount of $44,000($40,000)(1.10). Thus, the sale price is adjusted upward by this amount for an analysis sale price of $219,000 ($175,000 + $44,000). After the repairs were completed the home was in average condition. The property includes a detached two car garage with an area of 840 square feet. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 42 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS d: r aftt. LAdMMWb ,_. 101 WASHINGTON STREET SINGLE FANHLY RESIDENCE BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 43 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS IMPROVED SALE COMPARABLE S-4 Property Identification Record ID 7417 Property Type Single Family Residence Address 151 Bowen Street, Quilcene, Jefferson County, Washington 98376 Location Southerly side of Bowen Street, westerly of Washington Street Assessor's Parcel Number 937201103 Instrument Statutory Warranty Deed Sale Data Grantor Gary M. Hitt Grantee Frank R. & Leslie N. Feltes Sale Date February 04, 2019 Auditor's File Number 622215 Property Rights Fee simple Marketing Time 10 days Financing Cash to seller Verification Gary Stewart, Listing Broker; 360-509-5161, Confirmed by Lee Condition Gilmore Sale Price $175,000 Upward Adjustment $55.000 (Repairs after sale) Analysis Price $230,000 Land Data Land Size 0.39 Acres or 16,988 Sq.Ft. Topography Relatively level Utilities Public power, telephone, private septic & water Shape Rectangular Flood Info Not in a flood zone General Phvsical Data Building Area 2,070 Sq.Ft. Construction Type Wood frame Roof Type Wood truss/comp cover Foundation Concrete Electrical Assumed adequate HVAC Forced air Stories 1 Year Built 1956 Condition Average after remodel Indicators Analysis Price $230,000 Floor Area Ratio 0.09 Highest & Best Use Continued residential use BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 44 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS Remarks This is the sale of a three-bedroom, one bath residence in the community of Quilcene. The property was listed in November 2018 for $195,000. The three bedroom/one bathroom home contains an area of 2,070 square feet and was constructed in 1956. At the time of sale, the property needed to have some repairs and updates completed. Items of deferred maintenance or in need of updating included: new roofs on both the house and garage building, updates to the interior flooring, repairs to the heating system, and repairs to the plumbing. The buyer agreed to purchase the property "as is" and complete the repairs themselves and the list price of $195,000 was reduced to $175,000. The actual cost to complete the repairs was approximately $50,000. Added to this is an amount of 10% to account for entrepreneurial profit for an adjusted amount of $55,000($50,000)(1.10). Thus, the sale price is adjusted upward by this amount for an analysis sale price of $230,000 ($175,000 + $55,000). After the repairs are completed the home will be in average condition. The property includes a detached three car garage with an area of 864 square feet. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 45 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS 151 BOWEN STREET SINGLE FANHLY RESIDENCE BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 46 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS ANALYSIS OF COMPARABLE SALES The comparable properties are located in the subject's general market area and are considered relevant in arriving at a value estimate for the subject property. The comparables have recorded sale prices that range from $155,000 to $175,000. In utilizing the comparables to estimate a value for the subject property, each sale should be adjusted to the subject for dissimilarities. There are six common elements of comparison that should always be considered in sales comparison analysis. These are: Property rights conveyed; Financing terms; Condition of sale; Buyer Expenditures, Date of sale; and Location and Physical characteristics. In analyzing the Location and Physical characteristics, adjustments may be made for some dissimilarities among the comparables, primarily location (general locational attributes), age/quality/condition (the design, appeal and effective age of the residential improvements), total main residence size (with smaller properties tending to command a lower price on a total property basis), site utility, site size, and contribution of any additional outbuildings, and amenities/views. The discussion of the adjustment process follows. Quantitative Adjustments The comparables do not require adjustments for property rights conveyed, financing, or conditions of sale. Comparable S-1 seller paid closing costs and thus, is adjusted downward for this ("other quantitative adjustments"). In addition, S-3 and S-4 were going to have deferred maintenance/repairs/remodel costs that the buyer was going to remedy after the sale closed. Thus, these sales are adjusted upward under "other quantitative adjustments." Date of Sale — The next quantitative adjustment to consider is for market conditions/Date of Sale. In analyzing the influence of the market conditions at the time of sale of the comparables in relation to the market conditions as of the date of appraisal, the key factor is the passage of time. More specifically, the question to be answered in its simplest form is whether there is any trend in general prices through time. The Date of sale for the comparables ranges from August 2017 to February 2019. For residential properties in general, within the Jefferson County, values have shown both upward and downward fluctuations, as illustrated on the exhibit on the following page. However, in general, values have trended upward overall. In recognizing an appreciation of values, an annual adjustment of 3%, or 0.25% per month, is imputed for this category up to the date of inspection of the subject property. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 47 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate $300,000 J $200, DM . -N 11 111 so �^ Sale Price, M 56an ANALYSIS OF DATA AND OPINIONS OF APPRAISERS After the appropriate quantitative adjustments have been applied to the comparables, the indicated adjusted analysis price for the sales ranges from $153,375 to $237,725. Qualitative Adjustments The individual comparable sales are now compared to the subject as it relates to the qualitative adjustments. Location/Adjacent Influences — All of the sales are located within the community of Quilcene and are considered similar to the subject for this aspect. Thus, no adjustment to these sales is needed for this factor. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 48 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS Age/Quality/Condition — S-2, S-3, and S-4 are superior to the subject in this regard and thus, a downward adjustment is necessary for this aspect. S-1 is similar to the subject for this factor and thus, no adjustment for is necessary. Improvement Size — The subject's residence contains an area of 970 square feet. Comparables S-2, S-3, and S-4, with residence areas of 1,445 square feet, 1,410 square feet, and 2,070 square feet respectively, are larger than the subject property residence and thus, a downward adjustment for this factor is appropriate. Conversely at only 678 square feet, S-1 is smaller than the subject property and is adjusted upward. Site Utility — For site utility, the subject property is rectangular in shape and the site is located both in a flood zone and a floodway. In addition, the two parcels of the subject property are not contiguous being separated by parcel owned by Jefferson County. This is not the case for any of the comparables. Thus, all of the comparables are considered superior to the subject in site utility and a downward adjustments are appropriate. Site Size — The subject property has a total site area of 0.66 acres. At 0.18 acres, 0.33 acres, and 0.39 acres S-1, S-2, and S-4 are all smaller in size when compared to the subject and thus, an upward adjustment is needed for this factor. At 1.76 acres, S-3 is larger in site size when compared to the subject property. Thus, a downward adjustment for this aspect is warranted. Contribution of Outbuildings — The subject property is improved with a storage shed containing an area of 216 square feet. S-2, S-3, and S-4 are superior when compared to the subject in this regard and thus, a downward adjustment for this aspect is warranted. S-1 is similar enough for this factor that no adjustment is necessary. AmenitiesNiews — All of the comparables are similar to the subject in amenities/view. Thus, no adjustment for this factor is needed. The following exhibit simulates the thought process involved in comparing the sales comparables to the subject property. The adjustment grid graphically displays the adjustments made to the comparable sales to account for the differences between the comparables and the subject property. These adjustments reflect the market's most probable reaction to these differences. The adjustments are negative or positive, depending on whether a certain characteristic is superior or inferior to the subject property. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 49 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS After quantitative and qualitative adjustments, a unit value between S-1 ($153,375) and S-2 ($220,920) is indicated. S-1 requires slightly fewer net adjustments and thus, is weighted more in the final reconciliation of value. Predicated upon the previous analysis, the opinion of value for the subject property by the Sales Comparison Approach is reconciled at $165,000. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 50 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate COMPARABLE IMPROVED SALE ADJUSTMENT CHART Comparable Number Subject S-1 S-2 S-3 S-4 Sale Price n/a $155,000 $209,900 $175,000 $175,000 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjustment $0 $0 $0 $0 Adjusted Price $155,000 $209,900 $175,000 $175,000 Financing Terms Cash to Seller Cash to Seller Cash to Seller Cash to Seller Cash to Seller Adjustment $0 $0 $0 $0 Adjusted Price $155,000 $209,900 $175,000 $175,000 Conditions of Sale Arms Length Arms Length Arms Length Arms Length Arms Length Adjustment $0 $0 $0 $0 Adjusted Price $155,000 $209,900 $175,000 $175,000 Other Quantitative Adjustments Seller Paid Concession None Remodel/Def Maint. Repairs/Def Maint Adjustment -$5,000 $0 $44,000 $55,000 Adjusted Price $150,000 $209,900 $219,000 $230,000 Date of Sale May -19 Jul -18 Aug -17 Nov -17 Feb -19 Months Since Sale 9 21 18 3 Adjustment 3.00% 225% 525% 4.50% 0.75% Adjusted Price $153,375 $220,920 $228,855 $231,725 Adjusted Price/Unit $153,375 $220,920 $228,855 $231,725 Qualitative Adjustments ` Location/Adjacent Influences Similar Similar Similar Similar Adjustment Age/Quality/Condition of Residential Improvements Similar Superior Superior Superior Adjustment = Size of Residential Improvements 970 sq. ft. 678 sq.ft. _ 1,445 sq. ft. _ 1,410 sq. ft. 2,070 sq.ft. Adjustment + Site utility Superior Superior Superior Superior Adjustment - - - - Site Size 0.66 acres 0.18 acres 0.33 acres 1.76 acres 0.39 acres Adjustment ++ + + Contribution of Outbuildings Similar Superior Superior Superior Adjustment--- Amenities/Views Similar Similar Similar Similar Adjustment Total Adjustment Upward Downward Downward Downward After quantitative and qualitative adjustments, a unit value between S-1 ($153,375) and S-2 ($220,920) is indicated. S-1 requires slightly fewer net adjustments and thus, is weighted more in the final reconciliation of value. Predicated upon the previous analysis, the opinion of value for the subject property by the Sales Comparison Approach is reconciled at $165,000. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 50 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ANALYSIS OF DATA AND OPINIONS OF APPRAISERS In order to conclude an "as is" market value for the subject property, the costs associated with updating/remodeling the residence must be deducted from the value indication above. The total cost to complete the repairs and updates equals $11,000. Deducting this from the value indication above results in an "as is" market value for the subject property, subject to the, as of our date of inspection of $154,000 ($165,000 - $11,000), rounded to $155,000. Market Value Conclusion, by the Sales Comparison Approach, as of May 16, 2019: $155,000 BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 51 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate RECONCILIATION The only applicable approach to value in the case of the subject property is the Sales Comparison Approach. The resultant Market Value indication by the Sales Comparison Approach, as of the effective date of appraisal, May 16, 2019, is $155,000. The analysis by the Sales Comparison Approach methodology involves direct comparisons of the property being appraised to similar properties that have sold in the same or in a similar market in order to derive a market value indication for the property being appraised. A sales search of the surrounding market area was performed to locate single-family home sales similar to the subject. The sales used in this analysis were adjusted for dissimilarities as compared to the subject and set reasonable parameters for valuation of the subject. In summary, the Sales Comparison Approach was the only approach to value applicable to this report, and therefore, it is relied upon solely for the final value conclusion. Based on the preceding analysis, the market value of the fee simple interest in the subject property, as of the effective date of inspection, May 16, 2019, is: ONE HUNDRED FIFTY-FIVE THOUSAND DOLLARS $155,000 BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 52 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate CERTIFICATION We certify that, to the best of my knowledge and belief: 1. The facts and data reported in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the assumptions and limiting conditions stated in this report, and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and have no personal interest with respect to the parties involved. 4. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. Engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. Compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. We have made a personal inspection of the property that is the subject of this report and the owner or his/her designated representative was given the opportunity to accompany the appraisers on the property inspection. 9. No one provided significant professional assistance to the persons signing this report. 10. This appraisal was made and the appraisal report was prepared in conformity with the Uniform Appraisal Standards for Federal Land Acquisitions. 11. This appraisal was made and the appraisal report prepared in conformity with the Appraisal Foundation's Uniform Standards for Professional Appraisal Practice, except to the extent that the Uniform Appraisal Standards for Federal Land Acquisitions required the invocation of USPAP's Jurisdictional Exception Rule, as described in Section D-1 of the Uniform Appraisal Standards for Federal Land Acquisitions. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 53 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate CERTIFICATION 12. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. 13. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 14. We are competent to perform this appraisal. 15. We have not performed services, as appraisers or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 16. The Appraisal Institute conducts a voluntary program of continuing education for its designated members. MAIs and SRAs who meet the minimum standards of this program are awarded periodic educational certification. As of the date of this report, Chad C. Johnson, has completed the continuing education program for Designated Members of the Appraisal Institute. 17. As of the date of this report, Leslee A. Gilmore has completed the requirements of the continuing education program of the Appraisal Institute. Respectfully submitted, Chad C. Johnson, ifor, State of Washington Certification 1101662 Leslee A. Gilmore, Associate State of Washington Certification 1101840 BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 54 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate CHAD C. JOHNSON, MAI GENERAL EDUCATION QUALIFICATIONS BA, Business Administration, Option in Real Estate, Washington State University Relevant Coursework Real Estate Principles Real Estate Finance Real Estate Valuation Real Estate Investment Real Estate Law CERTIFICATIONS Washington State Certified General Real Estate Appraiser Certification 1101662 Issue Date: March 31, 2005 PROFESSIONAL DESIGNATION MAI, Appraisal Institute PROFESSIONAL EXPERIENCE Real Estate Appraiser and Consultant SH&H Valuation and Consulting (formerly Strickland, Heischman & Hoss, Inc.) June 2001 to Present APPRAISAL INSTITUTE COURSES & EXAMINATIONS COMPLETED Course 310, Basic Income Capitalization (February 2002) Course 320, General Applications (December 2004, online course) Course 410, Standards of Professional Practice, Part A (September 2001) Course 420, Standards of Professional Practice, Part B (September 2001) Course 510, Advanced Income Capitalization (December 2002) Course 520, Highest & Best Use and Market Analysis (September 2006) Course 530, Advanced Sales Comparison and Cost Approaches (September 2008) Course 540, Report Writing and Valuation Analysis (August 2003) Course 550, Advanced Applications (January 2009) Uniform Appraisal Standards for Federal Land Acquisitions — Practical Applications (May 2017) Eminent Domain and Condemnation (August 2018) Various Continuing Education Courses BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 55 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate PARTIAL LIST OF PROPERTY TYPES APPRAISED Apartments Agricultural Properties Aquaculture Properties Automobile Dealerships Automobile Repair Facilities Banks Bowling Alleys Business Parks Cardlock Fueling Facilities Carwashes Churches Commercial Land Commercial Subdivisions Condominium Developments Conservation Easements Daycare Centers Food Processing Plants Gas Station/Convenience Stores Golf Courses Health Clubs Hotels/Motels Industrial Properties QUALIFICATIONS Industrial Subdivisions Institutional Properties Leasehold Interests Medical Offices Mineral Extraction Operations Mixed -Use Properties Natatoriums Nurseries Private Schools Professional Offices Recreational Properties Religious Retreats Residential Land Residential Subdivisions Resource and Forest Land Properties Restaurants Retail Properties Right -of -Way Acquisitions Self -Storage Facilities Shellfish Processing Plants Single -Family Residences Waterfront Properties APPRAISAL EXPERIENCE IN THE FOLLOWING WASHINGTON COUNTIES Benton County Kitsap County Clallam County Lewis County Clark County Mason County Cowlitz County Pacific County Franklin County Pierce County Grant County San Juan County Grays Harbor County Skagit County Island County Snohomish County Jefferson County Thurston County King County Whatcom County Yakima County BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 56 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate PARTIAL LIST OF CLIENTS FOR WHICH I HAVE COMPLETED APPRAISALS Alaska USA Federal Credit Union AmericanWest Bank Anchor Savings Bank Bank of America Bank of the Pacific Bank of the West Banner Bank Business Loan Center, Inc. Capital Land Trust Center for Natural Lands Management Christian Community Credit Union CIT Small Business Lending City of Enumclaw City of Kent City of Tacoma Public Works Coastal Community Bank Colliers International Colonial Bank, NA Columbia Bank Commencement Bank Energy Northwest FDIC First Community Bank First Federal First Horizon Corporation First Interstate Bank Grays Harbor County Great Peninsula Conservancy Heritage Bank Jefferson Land Trust KeyBank Business Service Center, Ohio KeyBank National Association Kitsap Bank Kitsap Transit Marquette Business Credit, Inc. Mid Puget Sound Fisheries Enhancement Native American Bank, NA Nature Conservancy of Washington Nisqually Land Trust Northwest Farm Credit Services QUALIFICATIONS Olympic Bank One Pacific Coast Bank Pacific International Bank Pacific Northwest Bank Peoples Bank Pierce Commercial Bank Quinault Maritime Resort Quinault Nation Enterprise Board Rainier Pacific Bank Seacoast Commerce Bank Seattle Savings Bank Security State Bank Sequim School District Skagit State Bank Sound Community Bank South Sound Bank Sportsmen's National Land Trust Sterling Savings Bank Sunwest Bank Suquamish Tribe Thurston First Bank Timberland Bank Trust for Public Land Tukwila School District U.S. Bancorp U.S. Department of Interior Umpqua Bank UniBank Union Bank Valley Bank Viking Bank WA State Department of Fish & Wildlife WA State Department of Natural Resources WA State Department of Transportation Washington First International Bank Wells Fargo Bank Whidbey Camano Land Trust Yakima County Public Services Zions First National Bank Various Attorneys and Private Individuals BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 57 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate LESLEE A. GILMORE GENERAL EDUCATION QUALIFICATIONS University of Washington, Bachelor of Science, Fisheries Biology, School of Fisheries CERTIFICATIONS General Classification - Washington State Certified Real Estate Appraiser Certification 1101840 EXPERIENCE SH&H Valuation and Consulting 2014 — Present formally Strickland, Heischman and Hoss Appraiser with the firm SH&H Valuation and Consulting. Specializing in all types of commercial property valuation. Wilson Appraisal Services 2012-2014 Appraiser with the firm Wilson Appraisal Service. Specialized in all types of commercial property valuation. Strickland, Heischman, & Hoss 2004-2012 Appraiser with the firm Strickland, Heischman, & Hoss. Specialized in all types of commercial property valuation. PROFESSIONAL ASSOCIATIONS Candidate for Designation, Appraisal Institute APPRAISAL INSTITUTE COURSES & EXAMINATIONS COMPLETED Basic Appraisal Principles Basic Appraisal Procedures Course 310, Basic Income Capitalization Course 410, Uniform Standards of Professional Appraisal Practice Course 420, Business Practices & Ethics Course 510, Advanced Income Capitalization Course 520, Highest & Best Use and Market Analysis Course 530, Advanced Sales Comparison & Cost Approaches Course 540, Report Writing & Valuation Analysis Course 550, Advanced Applications BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 58 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate QUALIFICATIONS APPRAISAL EXPERIENCE Clallam County Airplane Hangars Apartment Buildings Auto Dealerships/Car lots Boat Dealership Child/Day Care Centers Leasehold Interests Conservation Easement Diminutions Convenience Store/Fuel Stops Eminent Domain Appraisals Fitness/Health Club Facilities Hotel/Motel Facilities Industrial Properties Commercial Condominium Properties Mobile Home Parks Professional/Medical Office Facilities Religious Facilities Retail Properties Self Storage Facilities Shopping Centers Mineral Extraction Properties Residential Subdivisions Residential Properties WASHINGTON COUNTIES APPRAISED IN Chelan County Clallam County Cowlitz County Grant County Grays Harbor County Jefferson County King County Kitsap County Lewis County Mason County Pacific County Pierce County Skagit County Snohomish County Thurston County Port of Tacoma PARTIAL LIST OF CLIENTS Columbia Bank Kitsap Credit Union Key Bank Westside Community Bank Harborstone Credit Union Capitol Land Trust First Federal Anchor Bank Bank of America The Bank of Washington Wells Fargo Bank Banner Bank Gary E. Milgard Family Foundation JP Morgan Chase Washington State Employee Credit Union Port of Tacoma CIT Small Business Lending Corporation Pierce County Washington State Department of Transportation Pierce Commercial Bank Allegiant Appraisal Management Company Nisqually Land Trust Kitsap Bank Jefferson Land Trust Christian Community Credit Union Heritage Bank Jefferson County Timberland Bank Northwest Commercial Bank Whidbey Camano Land Trust Hood Canal Salmon Enhancement Group North Olympic Land Trust Southsound Bank U.S. Department of Interior BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 59 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ASSUMPTIONS & LIMITING CONDITIONS Unless noted otherwise in the body of the report, this appraisal is subject to the following assumptions and limiting conditions. 1. No responsibility is assumed for legal or title considerations. Title to the subject property is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is assumed to be under responsible ownership and competent management and is assumed available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that impact the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that impact the value of the property. 4. Information, public and private, relevant to sale price indications is assumed to be correct. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. Information, estimates and opinions contained in the report, obtained from others, including third -party sources, are assumed to be reliable and have not been independently verified and no warranty is given for accuracy. 7. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 8. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 9. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 10. When environmental impact studies are not provided in conjunction with the appraisal, we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 60 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ASSUMPTIONS & LIMITING CONDITIONS 11. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 12. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 13. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 14. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and environmental matters. 15. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the person signing the report. 16. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 17. The current purchasing power of the dollar is the basis for the value stated herein. We have assumed that no extreme fluctuations in economic cycles will occur. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 61 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ASSUMPTIONS & LIMITING CONDITIONS 18. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 19. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environmental hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property and the person signing the report shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 20. The person signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 21. It is expressly acknowledged that in any action which may be brought against SH&H Valuation and Consulting, or their respective officers, owners, managers, directors, agents, subcontractors or employees (the "SH&H Valuation and Consulting Parties"), arising out of, relating to, or in any way pertaining to this engagement, the appraisal reports, or any estimates or information contained therein, the "SH&H Valuation and Consulting Parties" shall not be responsible or liable for an incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with gross negligence. It is further acknowledged that the collective liability of the "SH&H Valuation and Consulting Parties" in any such action shall not exceed the fees paid for the preparation of the appraisal report unless the appraisal was fraudulent or prepared with gross negligence. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 62 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ASSUMPTIONS & LIMITING CONDITIONS 22. SH&H Valuation and Consulting, an independently owned and operated company, has prepared the appraisal for the specific purpose stated elsewhere in the report. The intended use of the appraisal is stated in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 23. The conclusions contained in this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer -seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. SH&H Valuation and Consulting and the undersigned are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 24. The value estimate herein is subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 63 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate EXTRAORDINARY ASSUMPTIONS AND/OR HYPOTHETICAL CONDITIONS 1. Extraordinary Assumption: "an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. "9 Extraordinary assumptions assume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in analysis. There are no extraordinary assumptions relevant to this appraisal. 2. Hypothetical Condition: "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. -10 A hypothetical condition assumes conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in analysis. There are no hypothetical conditions relevant to this appraisal. 9 Uniform Standards of Professional Appraisal Practice, 2018-2019 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C., p. 4. 10 Ibid., p. 4. BOCHAT PROPERTY, 151 FREMONT AVENUE, QUILCENE, WASHINGTON 98376 Page 64 SH&H File 14700-19-A Chad C. Johnson, MAI Leslee A. Gilmore, Associate ADDENDA PERSONAL SERVICES AGREEMENT Between SH&H Valuation and Consulting and Jefferson County THIS AGREEMENT is entered into between the County of Jefferson, a municipal corporation, hereinafter referred to as "the County", and the SH&H Valuation and Consulting of Tacoma, WA, hereinafter referred to as "the Subcontractor", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Pijoo cot_Designation. The Consultant is retained by the County to provide appraisal services to support property acquisitions for the purpose of Big Quilcene River floodplain restoration and salmon recovery (RCD #16-1480 and #17-1050 consistent with Washington State Recreation and Conservation Office Manual 3, Acquigidon Projects and Uniform Appraisal Standards of Federal Land Acquisitiow "Yellow Book" standards. 2. Scove of Services. Subcontractor agrees to perform the services, identified on Exhibit A, attached hereto, including the provision of all labor, materials, equipment, and supplies. 3. Time for Performance. This Agreement shall commence upon signature and continues through December 31, 2020 unless termim d as provided herein. Work performed prior to the execution of this contract is hereby ratified. 4. ent. The Subcontractor shall be paid by the County for completed work and for services rendered under this agreement as follows: a. Payment for the work provided by Consultant shall not exceed. $11,400 at a rate of $3,800 per appraisal ivport without express written modification of the Agreement signed by the County. b. Funding for this contract will be provided by a RCO and WA Department of Ecology grants. If finding from RCO or WA Department of Ecology is withdrawn, reduced, or limited in any way after the effective date of this agreement, this contract may be renegotiated or terminated as provided herein. c. The Subcontractor may submit invoices to the County once per month, but not less than Qtly, during the progress of the work for work completed to date. Such invoices will be checked by the County, and upon approval thereof, payment will be made to the Subcontractor in the amount approved. d. Final payment of any balance dare the Subcontractor of the total contract price earned will be made promptly upon ,its ascertainment and verification by the County after the completion of the warp under this agreement and its acceptance by the County. Page 1 of 7 SHM Valuation and Consultl 201 e. Payment as provided in this section shall be full compensation for work performed, services rendered and for all materials, supplies, equipment and incidentals necessary to complete the work. f. The Subcontractor's records and accounts pertaining to this agreement are to be kept available for inspection by representatives of the County and state for a period of nine (9) Yews atter final payments. Copies shall be made available upon request. 5. Own and Use of Documents. All documents, drawings, specifications and other materials produced by the Subcontractor in connection with the services rendered under this agreement shall be the property of the County whether or not the project for which they are made is executed. The Suboontractor shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with Subcontractor`s endeavors. The rights to any documents, drawings, specifications and other materials owned by the Subcontractor prior to entering this agreement and used during the performance of the services are retained by the Subcantrador. S. Compere with Laws. Subcontractor shall, in performing the services contemplated by this agreement, faitbfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services to be rendered under this agreement. 7. Indemnification. The Subcontractor shall indemnify, defend and hold harmless the County, its officers, agents and employees, from and against any aad all claims, losses or liability, or any portion thereeol including attorney's fees and costs, arising from injury or death to Persons, including injuries, sickness, disease or death to Subcontractor's own employees, or damage to property occasioned by a negligent act, omission or failure of the Subcontractor. 9. Insurance. The Subcontractor shall obtain and keep in force during the terms of the Agreement, policies of as follows: If and only if the Subcontractor employs any person(s) in the status of employee or employees separate from or in addition to any equity owners, sole proprietor, partners, owners or shareholders of the Subwaftactor, Worker's Compensation insurance in an amount or amounts that are not less than the required statutory minimum(s) as established by the State of Washington or the state or province where the Subcontractor is located. Cm-mercial Automobile Liabili Insurance providing bodily injury and property damage liability coverage for all owned and non -owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than $500,000 each occurrence with the COUNTY named as an additional insured in connection with the SUBCONTRACTOR'S performance of the contract. a. (Tergal CommercialLiabiliInsurance, in an amount not less than a single limit of one million dollars ($1,000,000) per occurrence and an aggregate of not less than two (2) titres the occurrence amount ($2,000,000 minimum) for bodily injury, including death, and property damage unless otherwise specified in the contract specifications. This Page 2 of 7 SH&H Valuation and Qgnsuftg insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverage: i. Broad Form Property Damage with no employee exclusion; ii. Personal Injury Liability, including extended bodily injury; iii. Broad Form Contractual/Commercial Liability including completed operations; iv. Premises — Operations Liability (I%I&C); V. Independent Contractors and Subcontractors; and A Blanket Contractual Liability. The County shall be named as an additional insured party under this policy. Such insurance coverage shall be evidenced by one of the following methods: * Certificate of Insurance; * Self-insurance through an irrevocable Letter of Credit from a qualified financial institution. Certificates of coverage as required by ibis section shall be delivered to the County within fifteen (15) days of execution of this agreement. Any deductibles or self-insured retention shall be declared to and approved by the County prior to the approval of the contract by the County. At the option of the County, the insurer shall reduce or eliminate deductibles or self insured retention or the Subcontractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. The Subcontractor shall include all subcontractors as insured ander its insurance policies or WWI furnish separate certificates and endorsements for each subcontractor. All insurance provisions for subcontractors shall be subject to all of the requirements stated herein. Failure of the Subcontractor to take out and/or maintain any required insurance shall not relieve The Subcontractor from any liability under the Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification. It is agreed by the parties that insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the parties that the insurance policies so affected shall protect both parties and be primary coverage for any and all losses covered by the above described insurance. It is further agreed by the parties that insurance companies issuing the policy or policies shall have no recourse against the County (including its employees and other agents and agencies) fbr payment of any premiums or for assessments under any form of policy. It is further agreed by the parties that any and all deductibles in the above described insurance policies shall be assumed by Page 3 of 7 SH&H ValuatlQn and [onsultlnrc 2019 and be at the sole risk of the Subcontractor. b. It is agreed by the parties that judgments for which the County may be liable, in excess of insured amounts provided herein, or any portion thereof, may be withheld from payment due, or to become due, to the Subcontractor until such time as Subcontractor shall furnish additional security covering such judgment as may be determined by the County. c. The County reserves the right to request additional insurance on an individual basis for extra hazardous contracts and specific service agreements, d. Any coverage for third party liability claims provided to the County by a "Risk Pool" created pursuant to Ch. 48.62 RCW shall be non-contributory with respect to any policy of insurance the Subcontractor must provide in order to comply with the Agreement. e. If the proof of insurance or certificate of coverage indicating the County is an "additional insured" to a policy obtained by the Subcontractor refers to an endorsement (by number or name) but does not provide the full text of that endorsement, then it shall be the obligation of the Subcontractor to obtain the full text of that endorsement and forward that fall text to the County. f The County may, upon the Subcontractor's failure to comply with all provisions of this contract relating to insurance, withhold payment or compensation that would otherwise be due to the, Subcoir. Tactor 9- Independent Subcontractor. The Subcontractor and the County agree that the Subcontractor is an independent contractor with respect to the services provided pursuant to this agreement. Nothing in this agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Subcontractor nor any employee of Subcontractor shall be entitled to any benefits accorded County employees by virtue of the services provided under this agreement. The County shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to Subcontractor, or any employee of Subcoratrarctor. 10. COCOON t goafinM Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warranty, the County shall have the right to annul this contract without liability or, in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. 11. Discrimination Prohibited. The Subcontractor, with regard to the work performed by it under this agreement, will not discriminate on the grounds of race, color, national origin, religion, Page 4of7 5HM Valuation and Con&ftLru 2019 crood, ale, sax, or the presence of any physical or sensory handicap in the selection and retention of employees or procurement of materials or supplies. 12. Assiannumt. The Consultant shall not sublet or assign any of the services covered by this agreement vithout the express written consent of the County. 13. on Waiver Waiver by the County of any provision of this agreement or any time limitation provided for in this agreement shall not constitute a waiver of any other provision. 14. No Waiver of Soverei b=um :W, By entering into this c ubact the Contractor does not waive its sovereign immunity from Suit and nothing hererin shall be construed as a waiver of any such right. 15. Terni 'aa. The County reserves the right to terminate this contract at any time by giving ten (10) days written notice to the Subcontractor. In the event of the death of a member, partner or officer of the Consultant, or any of its suPi'Y Peel assigned to the project, thesurviving members of the Consultant hereby agree to complete the work under the terms of this amt, if requested to do so by the County. This section shall not be a bar to renegotiations of this agreement between surviving members of the Consultant and the County, if the County so chooses. 16.Notices. Notices to the t ;aunty of Jefferson dmU be sent to the followim address: Tami Pokorny, Nauavi Resources program Coordinator Jefferson County Environmental Public Health 615 Sheridan Street Port Townsend, WA 99368 Ph: 3601379-4498 Email: tpokon,_,y a ojefferson.wa.u.q IT NQUM to Consultma shall be sent to the followingaddress: Chad C. Johnson, MAI Partner SH&H Valuation and Consulting 6419 Lakewood Drive West TACOMA WA 98467 Ph: 253/564-3230 x103 chadi@shhapp.com 18. Irate a ement. This Agreement together with attachments or addenda, represents the entire and integrated agreement between. the County and the Subcontractor and supersedes all prior negotiations, representations, or agreements written or oral. This agreement may be amended only by written instrunmat signed by both County and Subcontractor. Page 5 of 7 S &H Valuadon and Consulting DATED this — day of 2019 By Kate Dean,` Chair Jefferson Board of County Commissioner S 14 - Chad Johnson, MAioo' 1 ate WA State Certified General Real Estate Appraiser Certification #1101662 Expires 12115=0 APPROVED AS TO FORM Chief Civil DPA Philip Hunsucker Attest/Authenticated: eq PL, 44t" a.vt._ Clerk of the Board Page 6 of 7 SH&H Valuation and Consukina 2019 Exhibit A: Scone of Work The Subcontractor is retained by the County to provide appraisal services to support property acquisitions for the purpose of Big Quilcene River floodplain restoration and salmon recovery (RCO #16-1480 and #17-1052) consistent with Washington State Recreation and Conservation Office Manual 3, Acquisition Projects and Lrniform Appraisal Standards of Federal Land Acquisitions "Yellow Book" standards ://www.rco.wa. ov/dgmments/manuals&fo h arciuizu � . Thee order of priority for the first three appraisals is as follows. I. Property 1: APNs 991200505 and 991200503 2. Property 2: APN 991200401 3. Property 3: APNs 991200501 and 702241004 Deliverables: 1 signed hard copy and an electronic copy (PDF) of each separate appraisal Due Dates: 30 Days from Notice to Proceed for each of the reports. Page 7 of 7 PL -630-159 (FV3(16) t-L-OM-1 tw (W:vlb) May 7, 2019 SH&H Valuation and Consulting 6419 Lakewood Drive West Tacoma, WA 98467 Re: Agneeli for Appraisal Services Greetings, 615 Sheridan Street Port Townsend, WA 98368 www.JeffemonCountyPubl!cHealth.org Ertdosad pimse find three copies of above referenced c ontisa Please review and sign all copies and return the Lwv of the copies to my atbention. If you have any questions, I can be reached at (360) 385-9421. Sincerely, Jenny Matber Com Administrator Enclosures: WQ-19-149 Community Public Health Environmental Pubic Health 360-38"400 Environmental 360,3185-9401 iQ Always worldng for a safer and healthier community (t) 36&3794487 JEFFERSON TITLE COMPANY Order Summary Sheet for Commitment No.: 85631 Enclosed: Preliminary Title Commitment The following information is for your convenience and not part of the Preliminary Title Commitment. You should read the attached Preliminary Title Commitment very carefully. If you have any questions about your commitment please contact us at (360) 385-2000 during business hours Monday through Friday from 8:00am to 5:00pm PST or email your contact below. Property Address: 151 Fremont Ave, Quilcene, WA 98376 Seller: Brian A. Bochat Buyer: Jefferson County Your Title Contact: Stacia Haskins Recording Department: Molly Miller Stacia@jeffersontitlecompany.com molly@jeffersontitlecompany.com 2205 Washington Street, Port Townsend, WA 98368 1 phone 360.385.2000 fax 360.385.6967 ' www.jeffersontitlecompany.com 0 }NFR Cy I ; ALTA Commitment for Title Insurance �s FirstAmer-ircan Title ISSUED BY First American Title Insurance Company Commitment COMMITMENT FOR TITLE INSURANCE Issued By FIRST AMERICAN TITLE INSURANCE COMPANY NOTICE IMPORTANT—READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES. ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT. THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE, REPORT OF THE CONDITION OF TITLE, LEGAL OPINION, OPINION OF TITLE, OR OTHER REPRESENTATION OF THE STATUS OF TITLE. THE PROCEDURES USED BY THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY SEARCH AND EXAMINATION, ARE PROPRIETARY TO THE COMPANY, WERE PERFORMED SOLELY FOR THE BENEFIT OF THE COMPANY, AND CREATE NO EXTRACONTRACTUAL LIABILITY TOANY PERSON, INCLUDING A PROPOSED INSURED. THE COMPANY'S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUEA POLICY TO A PROPOSED INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT, THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON. COMMITMENT TO ISSUE POLICY Subject to the Notice; Schedule B, Part I—Requirements; Schedule B, Part II—Exceptions; and the Commitment Conditions, FirstAmerican Title Insurance Company, a Nebraska Corporation (the "Company"), commits to issue the Policy according to the terms and provisions of this Commitment. This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A, only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Policy Amount and the name of the Proposed Insured. If all of the Schedule B, Part I—Requirements have not been met within six months after the Commitment Date, this Commitment terminates and the Company's liability and obligation end. First American Title Insurance Company Dennis J. Gilmore, President ;444� �p /fi� Jeffrey S. Robinson, Secretary If this jacket was created electronically, it constitutes an original document This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule S, Part Requirements; Schedule B, Part Il—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2096 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) 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 ;rand Title Association. Form 5030000 (1-31-17) Page 1 of 11 nMrxer nye AFY (IC'f A'.Yt�N ALTA Commitment for Title Insurance (8-1-16) COMMITMENT CONDITIONS 1. DEFINITIONS (a) "Knowledge" or "Known": Actual or imputed knowledge, but not constructive notice imparted by the Public Records. (b) "Land": The land descrbed in Schedule A and affixed improvements that by iaw constitute real property. The term "Land" does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is to be insured by the Policy. (c) "Mortgage": A mortgage, deed of trust, or other security instrument, including one evidenced by electronic means authorized by law. (d) 'Policy": Each contract of title insurance, in a form adopted by the American Land Title Association, issued or to be issued by the Company pursuant to this Commitment. (e) "Proposed Insured": Each person identified in Schedule A as the Proposed Insured of each Policy to be issued pursuant to this Commitment. (f) "Proposed Policy Amount": Each dollar amount specified in Schedule A as the Proposed Policy Amount of each Policy to be issued pursuant to this Commitment. (g) "Public Records": Records established under state statutes at the Commitment Date for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge. (h) `Title": The estate or interest described in Schedule A, 2. If all of the Schedule B, Part I—Requirements have not been met within the time period specified in the Commitment to Issue Policy, this Commitment terminates and the Company's liability and obligation end. 3. The Company's liability and obligation is limited by and this Commitment is not valid without: (a) the Notice; (b) the Commitment to Issue Policy; (c) the Commitment Conditions; (d) Schedule A; (e) Schedule B, Part I—Requirements; (f) Schedule B, Part II—Exceptions; and (g) a counter -signature by the Company or its issuing agent that may be in electronic form. 4. COMPANY'S RIGHT TO AMEND The Company may amend this Commitment at any time. If the Company amends this Commitment to add a defect, lien, encumbrance, adverse claim, or other matter recorded in the Public Records prior to the Commitment Date, any liability of the Company is limited by Commitment Condition 5. The Company shall not be liable for any other amendment to this Commitment. 5. LIMITATIONS OF LIABILITY (a) The Company's liability under Commitment Condition 4 is limited to the Proposed Insured's actual expense incurred in the interval between the Company's delivery to the Proposed Insured of the Commitment and the delivery of the amended Commitment, resulting from the Proposed Insured's good faith reliance to: (i) comply with the Schedule B, Part €—Requirements; (ii) eliminate, with the Company's written consent, any Schedule B, Part II—Exceptions; or (iii) acquire the Title or create the Mortgage covered by this Commitment, (b) The Company shall not be liable under Commitment Condition 5(a) if the Proposed Insured requested the amendment or had Knowledge of the matter and did not notify the Company about it in writing. (c) The Company will only have liability under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured. (d) The Company's liability shall not exceed the lesser of the Proposed Insured's actual expense incurred in good faith and described in Commitment Conditions 5(a)(i) through 5(a)(iii) or the Proposed Policy Amount, (e) The Company shall not be liable for the content of the Transaction, Identification Data, if any. (f) In no event shall the Company be obligated to issue the Policy referred to in this Commitment unless all of the Schedule B, Part i— Requirements have been met to the satisfaction of the Company. (g) In any event, the Company's liability is limited by the terms and provisions of the Policy. This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to issue Policy; the Commitment Conditions; Schedule A; Schedule 8, Part I—Requirements; Schedule 8, Part II—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2015 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) is restricted to ALTA licensees and I.ANI] Tl al F ALTA members in goad standing as of the date of use. All other uses are prohibited. �spOl IA,IIN Reprinted under license from the American Land Title Association. Form 5030000 (1-31-17) Page 2 of 11 ALTA Commitment for Title Insurance (8-1-16) 6. LIABILITY OF THE COMPANY MUST BE BASED ON THIS COMMITMENT (a) Only a Proposed Insured identified in Schedule A, and no other person, may make a claim under this Commitment. (b) Any claim must be based in contract and must be restricted solely to the terms and provisions of this Commitment. (c) Until the Policy is issued, this Commitment, as last revised, is the exclusive and entire agreement between the parties with respect to the subject matter of this Commitment and supersedes all prior commitment negotiations, representations, and proposals of any kind, whether written or oral, express or implied, relating to the subject matter of this Commitment. (d) The deletion or modification of any Schedule B, Part [I—Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of this Commitment or the Policy. (e) Any amendment or endorsement to this Commitment must be in writing and authenticated by a person authorized by the Company. (f) When the Policy is issued, all liability and obligation under this Commitment will end and the Company's only liability will be under the Policy. 7. IF THIS COMMITMENT HAS BEEN ISSUED BY AN ISSUING AGENT The issuing agent is the Company's agent only for the limited purpose of issuing title insurance commitments and policies. The issuing agent is not the Company's agent for the purpose of providing closing or settlement services. 8. PRO -FORMA POLICY The Company may provide, at the request of a Proposed Insured, a pro -forma policy illustrating the coverage that the Company may provide. A pro -forma policy neither reflects the status of Title at the time that the pro -forma policy is delivered to a Proposed insured, nor is it a commitment to insure. 9. ARBITRATION The Policy contains an arbitration clause. All arbitrable matters when the Proposed Policy Amount is $2,000,000 or less shall be arbitrated at the option of either the Company or the Proposed Insured as the exclusive remedy of the parties. A Proposed Insured may review a copy of the arbitration rules at http://www.alta.o[g/arbitration. This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; Schedule 8, Part II—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2016 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) 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. (1-31-17) Page 3 of 11 ALTA Commitment for Title Insurance (8-1-16) Rrst American ri tic 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 This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule 8, Part I—Requirements; Schedule 8, Part 11—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2016 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) 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. rwr rkN ntitLRix�r qN LANI) TITI F. 4,c� IciN Form 5030000 (1-31-17) Page 4 of 11 ALTA Commitment for Title Insurance (8-1-16) 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 cookie 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. This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy, the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; Schedule B, Part II—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2016 American Land Title Association. All rights reserved. The use of this Form (or any derivative therecf) 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. AMlRf �'1N i.n�n rizc r. ns�ncinrinw Form 5030000 (1-31-17) Page 5 of 11 I ALTA Commitment for Title Insurance (8-1-16) S� AM HRI R Cy �• "^; FirstAmerican Title ALTA Commitment for Title Insurance ISSUED BY First American Title Insurance Company Schedule A I 85631 Transaction Identification Data for reference only; Issuing Agent: Jefferson Title Company, Inc. Issuing Office's ALTA® Registry ID: 400038 Commitment No.: 85631 Property Address: 151 Fremont Ave, Quilcene, WA 98376 1. Commitment Date: March 19, 2019 at 8:OOAM 2. Policy to be issued: (a) ® ALTA® Owner Policy Standard Cancellation Fee Proposed Insured: Jefferson County Proposed Policy Amount: $TBD Premium: $60.00 Sales Tax: $5.40 Issuing Office: 2205 Washington Street, PO Box 256 Port Townsend, WA 98368 SCHEDULE A 3. The estate or interest in the Land described or referred to in this Commitment is Fee Simple 4. The Title is, at the Commitment Date, vested in: Brian Bochat, as his separate estate Your title examiner for this transaction is Stacia Haskins. if you have any questions concerning this title commitment, please do not hesitate to call me at (360) 385-2000 or email stacia@jeffersontitlecompany.com. This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy, the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; Schedule B, Part 11—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2016 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) is restricted to ALTA licensees and AMEk! AA 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 5030000 (1-31-17) Page 6 of 11 ALTA Commitment for Title Insurance (8-1-16) 5. The Land is described as follows: Lots 15, 17, 18, 19 and 20 in Block 5 of Plat of Quilcene, as per plat recorded in Volume 2 of Plats on Page 33, records of Jefferson County. Situate in the County of Jefferson, State of Washington. This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to issue Policy, the Commitment Conditions; Schedule A; Schedule S, Part 1—Requirements; Schedule B, Part 11—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2016 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) 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 5030000-A (1-24-18) Page 7 of 11 E ALTA Commitment for Title Insurance (8-1-16) Schedule A *gt AM If,, t FirstAmerican Title m�•r Schedule B - Part f Commitment No.: 85631 All of the following Requirements must be met: ALTA Commitment for Title Insurance ;SSUED BY First American Title Insurance Company 85631 SCHEDULE B, PART Requirements 1. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions. 2. Pay the agreed amount for the estate or interest to be insured. 3. Pay the premiums, fees, and charges for the Policy to the Company. 4. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records. 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. This applies if the non -vested spouse currently resides in the residence or if the vested spouse resides in the residence and the non -vested spouse doesn't reside in the residence but has lived there within the previous 6 months. 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. This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy, the Commitment Conditions; Schedule A; Schedule B, Part 1-17equirements; Schedule 8, Part 11—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic farm. Copyright 2006-2016 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) 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. E Form 5030000-BI&BII (1-31-17) Page 8 of 11 ALTA Commitment for Title Insurance (8-1-16) Schedule BI & BII •MIN C Fir-stAmerican Title's ALTA Commitment for Title Insurance ISSUED BY First American Title Insurance Company Schedule B - Part II 85631 SCHEDULE B, PART II Exceptions (Continued) THIS COMMITMENT DOES NOT REPUBLISH ANY COVENANT, CONDITION, RESTRICTION, OR LIMITATION CONTAINED IN ANY DOCUMENT REFERRED TO IN THIS COMMITMENT TO THE EXTENT THAT THE SPECIFIC COVENANT, CONDITION, RESTRICTION, OR LIMITATION VIOLATES STATE OR FEDERAL LAW BASED ON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, GENDER IDENTITY, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN. The Policy will not insure against loss or damage resulting from the terms and provisions of any lease or easement identified in Schedule A, and will include the following Exceptions unless cleared to the satisfaction of the Company: 1. Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Pari. (— Requirements are met. 2. 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 3. 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. 4. Easements, claims of easement or encumbrances which are not shown by the public records. 5. 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. 6. (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. 7. 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. 8. Any service installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity. This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company, This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; Schedule S, Part 11—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2016 American Land Title Association. All rights reserved. aw�.n s The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. A;I other uses are prohibited. Reprinted under license from the American Land Title Association. Form 5030000-BI&BII (1-31-17) Page 9 of 11 I ALTA Commitment for Title Insurance (8-1-16) Schedule 131 & 1311 9. Lien of the real estate excise safes 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. 10. General Taxes. The first portion $ 25.42 becomes delinquent after April 30"' delinquent after October 31" Amount Billed: Year 2019 Amount Billed: $ 50.76 Amount Paid: $ 0.00 Amount Due: $ 50.76, plus interest and penalty, if delinquent Tax Account No.. 991 200 503 Property ID No.: 41694 Assessed value: $ 2,200.00 Affects: Lot 15 General Taxes. The first portion $ 425.83 becomes delinquent after April 30cr delinquent after October 31 st Year 2019 Amount Billed: $ 851.63 Amount Paid: $ OM Amount Due: $ 851.63, plus interest and penalty, if delinquent Tax Account No.. 991 200 505 Property ID No.: 41696 Assessed value: $ 84,676.00 Affects: Lots 17 through 20 The second portion $ 25.34 becomes The second portion $ 425.80 becomes 11. 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. This page is only a part of a 2015 ALTA® Commitment for Title Insurance issued by First American Titte Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; Schedule B, Part II—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2016 American Land Title Association. All rights reserved. � The use of this Form (or any derivative thereof) 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 Tit!e Association."„ Form 5030000-BI&Bil (1-31-17) Page 10 of 11 I ALTA Commitment for Title Insurance (8-1-16) Schedule 131 & 1311 INFORMATIONAL NOTES A. Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating to standardization of recorded documents, certain format content requirements must be met (refer to RCW 65.04.045). Failure to comply may result in rejection of the document by the recorder or additional fees being charged, subject to Auditor's discretion. B. Any sketch hereto is done so as a courtesy only and is not part of any title commitment or policy, it is furnished solely for the purpose of assisting in locating the Land and Jefferson Title Company, Inc. expressly disclaims any liability which may result from reliance made upon it. C. The description can be abbreviated as suggested below if necessary to meet the standardization requirements. The full text of the description must appear in the documents(s) to be insured. Lts 15 & 17-20, Blk 5, Quilcene D. 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. E. The situs address of the property herein described is: 151 Fremont Ave Quilcene, WA 98376 F. According to the application for title insurance, title is to vest in Jefferson County. Examination of the records discloses no matters pending against said party. G. As of the date hereof there are no matters against Brian Bochat, which would appear as exceptions in the policy to issue, except as shown herein. NOTE: A FEE MAY BE CHARGED UPON THE CANCELLATION OF THE THIS COMMITMENT PURSUANT TO WASHINGTON STATE INSURANCE CODE AND THE FILED RATE OF THE COMPANY. This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements,' Schedule B, Part II—Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form. Copyright 2006-2016 American Land Title Association. All rights reserved. � The use of this Form (or any derivative thereof) 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. • kfr= Form 5030000-BI&BII (1-31-17) Page 11 of 11 ALTA Commitment for Title Insurance (8-1-16) Schedule BI & BII When recorded return to: Brian Bochat P.O. Box 238 Quilcene, WA 98376 Filed for Record at Request of Jefferson Title Company, Inc. Escrow Number: 83743DF 608940 PGS:1 SWD 11,113012017,1.11. ffien aamiv WR Fu,da toe'�JaEEt.Re�aM RoaaEpnn Carroll. Auditor Statutory Warranty Deed THE GRANTOR Nancy L. Logbry, as Successor Trustee of the Wilbur Family Trust Agreement dated the 27th day of September 1990 for and in consideration of TEN DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERA'T'ION in hand paid, conveys and warrants to Brian Hochat, a single person the following described rea: estate, situa!ed in the County of Jefferson, State of Washington. Abbreviated Legal::.ts 15 & 17-20 Blk 5 Quilcene Tax Parcel Number(s): 991 200 503, 991 200 505 Lots 15, 17, 18, 19 and 20 in Block 5 of Plat of Quilcene, as per plat recorded in Volume 2 of Plats on Page 33, records of Jefferson County, Situate in the County of Jefferson, State of Washington, Subject to: 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. Dated June 27.2017 Wilbur Family Trust dated September 27, 1990yy i1,I sf�cytL.!_ By: Na L. Lofty uccessor Trustee STATE OF a COUNTY OF Aiy6f�:, } SS: i certify that 1 know or have satisfactory evidence that Nancy L. Lothr she is the person who appeared before me, and said person acknowledge that she signed this instrument, an oath stated sbe is authorized to execute the instrument and acknow;edge that as the Successor Trustee of Wilbur Family Trust dated September 27, 1990 to be the free and voluntary act of such party(ies) for the uses and purposes mentioned in this instrument. s _ Dated: w ` �.N�••�� - oary u Ina for the Slate of ' '•6 Residing at f}NMIg My appointmen! expires: t • pdWA,lk1M� . �. • . iiY111.7� � . . gyp; !E�w Page 1 of I 806572 12799,6 *6/30/2017 1,162.00* F� 4s a1 ¢s a5 !« 5 6 d 4S yrs 45 tiv' a s ,r s r a « s y , wS _ Ati5 4v µ5 f s *5 4-5 4*15 41 z 3 56 7 1615/413 12 ! t !9 �� X711 '.S r !3 >� ��IK -00 .a.�. FR EMCiNT 7c C. /1 Bei 3� A f TAluVOG 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, ,7r area, dimensions, easements, encroachments or +C, 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. lax 4U '� v :47 This sketch is provided, without a charge, for your ° Vac. 10-4-76 0-58 information. It is not intended to show all matters t 1 131k 7 �+ — related to the property including, but not limited to, Lot 1 Blk 6 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 Linger Longer Rd. attached. The Company assumes NO LIABILITY for any Lot 1 — - _ matter related to this sketch. Referenced should be made to an accurate survey for further information. Ta7 t'2�x6(S&Wof f Co. Rd.) 1.29 a. Quiicene Ave. 4 6 6 - 8 10 1 2 3 q 5 6 7 8 9 10 i 16 17 16 15 14J 13 12 111 20 19 18 77 16 r 15 13 12 13 " 20 a 6-19-OOf Fremont Ave. 3 1 4 51 6 7 9 8 9 10 r i ! 1 2 1 3 4 5 R 7 $ 9 10 1 r 18 17 18 15 114 1 13 1 12 1. 20 19 18 17 1 i5 14 13 12 11 20 Vac. 11-16-53 Quilcen 3 1 4 5 6 7 1 6 1 9 1 a ;31 6 7 1 8 9 10Tax !8 17 16 15 14 13 12 1120 LO X 20 15 4 13 12 11 f M 3 1 4 .i 5 6 7 $ 9 10 1 2 3 1 t4 5 6 7 8 9 10 J 1 F $ '1 16 15 14 �3 12 11 E 20 k9 18 17 16 15 14 i3 12 11 J F2o,, T' � 4WSH&H VALUATION AND CONSULTING 6419 Lakewood Drive West, Tacoma, WA 98467 p. 253.564.3230 1 f. 253.564.3143