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HomeMy WebLinkAbout030220_ca08�e�e�i�.son c Public Health 615 Sheridan Street Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org February 24, 2020 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Pinky Mingo, Interim Environmental Public Health Director Tami Pokorny, Natural Resources Program Coordinator DATE: March 2, 2020 SUBJECT: Agenda Request: Authorization and Concurrence for the Fitzgerald Property on the Big Quilcene River Floodplain STATEMENT OF ISSUE: Environmental Public Health (EPH) requests approval of an Authorization and Concurrence document for the Fitzgerald 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 willing seller negotiations to purchase the approximately 16,875 square feet Fitzgerald 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 Fitzgerald property is funded by RCO #18-1227. Match is provided by an MOU with the Hood Canal Salmon Enhancement Group to pass through Department of Ecology Floodplains by Design (SEAFBD-2017-HoCSEG-0009). RECOMMENDATION: EPH management recommends approval of the Authorization and Concurrence document for the Fitzgerald property on the Big Quilcene Floodplain. REVIEWED BY: Philip Morley, County lldmimstrator Date Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f) 360-379-4487 Q v U 9 C/1 n uu � E� 4�n 9Q ca ■ ■ ill t8 i w 0 0 t71 0 i 0 0 th ._. 0 CFP - Linger Longer Rd w 991200603 991200602 i Q to Q W 991207103 991201107 j J REVIEW APPRAISER'S CERTIFICATE NO. 1 Agency: Jefferson County Public Health Parcel No. 991200606 Owner: The Heirs and Devises of Jerome Fitzgerald, deceased Federal Aid No. N/A Project: N/A Map Sheet: N/A Map App roval 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: February 7, 2020 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, 1-2-20 $35,000 -0- $35,000 $35,000 -0- MAI WA Gen. Cert. No. 1101662 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 Appraisal Standards for Federal Land Acquisitions. The agency proposes a total acquisition of the subject parcel. Description of Subject - The subject is located at 222 Fremont Avenue, Quilcene, WA, which is the westerly side of Linger Longer Road, northerly of the Big Quilcene River and southerly of Fremont Avenue, in the Quilcene area of Jefferson County. The subject consists of a single tax parcel of approximately 16,875 square feet, which is in an "L" shaped configuration. The subject's topography is mostly level with a covering of native trees and vegetation. The site is at grade with Fremont Avenue, but below grade of Linger Longer Road. The site is improved with a gravel driveway and is permitted to have an RV parked onsite, though not permanently. The site is impacted by two shoreline designations, one of which is the easterly portion of the site which is designated a Natural Shoreline. The second shoreline designation impacts the remainder of the site and is identified as a Conservancy Shoreline. Areas impacted by the Conservancy Shorelines still have development potential, but they require a setback from the river of 150 feet with an additional 10 -foot Richard F. Duncan, MAI Page 1 RF Duncan & Associates, Inc. setback for buildings. According to the Shoreline Master Program, residential use may be permitted in a conservancy environment subject to permit reviews and inspection of the subject property. In addition, the entirety of the subject is located within a Critical Aquifer Recharge Area. Critical Aquifer Recharge Areas are those with geologic and hydrologic conditions that promote rapid infiltration of recharge waters to groundwater aquifers. The groundwater, and thus wells, are susceptible to quality and/or quantity degradation. Sites which fall under this category are subject to the provisions of the protection standards, which primarily limits commercial and industrial uses. The subject site is not currently served by water, gas, electric, or sewage. Electricity is available along Linger Longer Road; however, there would most likely be a new service fee and an electric service box would need to be installed by the property owner prior to any electric service. The appraisal explains that the property contact indicated that attempts were made to be granted a permit for an onsite well from Jefferson County, but that the County denied the permits. Due to the small size of the site, having both a well and septic system on site would be very unlikely to be permitted. The subject property located in flood plain Zone A, an area inundated with 100 -year flooding, as per Flood Insurance Rate Map Number 530310903C, effective date June 7, 2019. This possibly limits development potential, and any residential development would require flood insurance. The subject is zoned Rural Residential 1 Unit/5 Acres (RR 1:5). 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. Based on information provided to the appraiser by Jefferson County personnel, the site has little to no development potential, due to its small size and the various critical area impacts. The site's current use in support of a gravel driveway utilized for RV parking is most likely the only development the site can legally support, and the appraiser concluded a highest and best use for the subject for recreational use. In my opinion, the appraiser's conclusion of highest and best use is reasonable and well supported. Valuation The appraiser 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 appraiser analyzed four comparable sales in supporting the value of the subject site. The sales range from approximately $28,000 to $70,000, prior to adjustments, and from approximately $28,280 to $71,225 after adjusting the comparables for market appreciation since each sale. After comparing the comparables to the subject for major value influencing characteristics, such as location, size, and river frontage/access, the appraiser concluded a value for the subject of approximately $35,000, which is within the range of comparable sales analyzed and considered to be reasonable. 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. Richard F. Duncan, MAI Page 2 RF Duncan & Associates, Inc. There is no personal property acquired. 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 Appraisal 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 2-7-20: Reviewer's Allocation of Just Compensation Acquisition: Land Acquired in Fee- 16,875 square feet: Improvements Acquired: Damages: Special Benefits: Total Just Compensation: $35,000 -0- $35,000 $35,000 $35,000 -0- -0- -0- $35,000 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 1-2-20 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, 2016 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 cant' 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: 2-7-20 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 Lxperience: • 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 IP" "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" "Ethics and the Right -of -Way Profession" "Communication in Real Estate Acquisition" Richard F. Duncan, MAI Page 10 RF Duncan & Associates, Inc. "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 o fAppraisal 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. SHSH VALUATION AND CONSULTING APPRAISAL REPORT FITZGERALD PROPERTY 222 FREMONT AVENUE QUILCENE, WASHINGTON 98376 PARCEL NO. 991200606 A, EFFECTIVE DATE: JANUARY 2, 2020 REPORT DATE: JANUARY 15, 2020 SH&H FILE NUMBER: 14949-19B CHAD C. JOHNSON, MAI SH&H VALUATION AND CONSULTING 6419 LAKEWOOD DRIVE WEST TACOMA, WASHINGTON 98467 L L W t w +may. EFFECTIVE DATE: JANUARY 2, 2020 REPORT DATE: JANUARY 15, 2020 SH&H FILE NUMBER: 14949-19B CHAD C. JOHNSON, MAI SH&H VALUATION AND CONSULTING 6419 LAKEWOOD DRIVE WEST TACOMA, WASHINGTON 98467 40010- S H & H January 15, 2020 Tami Pokorny Natural Resources Program Coordinator Conservation and Strategic Partnerships Jefferson County Environmental Public Health 615 Sheridan Street Port Townsend, WA 98368 Re: Fitzgerald Property (Parcel Number 991200606) 222 Fremont Avenue Quilcene, WA 98376 SH&H File 14949-19 B Dear Ms. Pokorny: At your request, I am 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. The Washington State Recreation and Conservation Office is identified as an intended user. The subject property is located westerly of Linger Longer Road, southerly of Fremont Avenue, and northerly of the Big Quilcene River in the Quilcene area of Jefferson County, Washington. The subject of this appraisal is a residential site consisting of 16,875 square feet, or approximately 0.37 acres, per county records. The site benefits from its proximity to the Big Quilcene River, which is accessed to the south of the subject. The Big Quilcene River and riverbank fall under the ownership of Jefferson County; however, this land can be accessed by the public. Thus, although the subject does not have a fee simple interest in the Big Quilcene River or riverbank, it benefits from its close proximity and easy access to this amenity. 6419 Lakewood Dave West B Tacoma. Washington 98467 R, 253.564.3230 1 C 253.564.3143 However, due to the site's proximity to the river, it is impacted by various critical areas and cannot support conventional development, which is discussed in greater detail within this report. The site can be utilized for recreational purposes. 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 atypical 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 appraiser during the appraisal process, including research I 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: "an assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP. " 1 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. "2 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 appraiser has invoked the use of the Jurisdictional Exception Rule as outlined in USPAP as it relates to linking market value to a specific exposure time. 1 Uniform Standards of Professional Appraisal Practice, 2020-2021 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C., p. 4. 2 Ibid, p. 15. The estimated "as is" market value of the fee simple interest in the subject property as of the date of inspection, January 2, 2020, is: THIRTY-FIVE THOUSAND DOLLARS $35,000 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 underlying Assumptions and Limiting Conditions which are included in the accompanying report. Respectfully submitted, Mad C. Johnson, State of Washington Certification 1101662 TABLE OF CONTENTS TitlePage........................................................................................................................... i Letterof Transmittal......................................................................................................... ii Tableof Contents............................................................................................................. iv SubjectPhotographs.......................................................................................................... v Factual Description PropertyIdentification...................................................................................................... 1 InterestAppraised............................................................................................................. 2 Purpose/Function of the Appraisal.................................................................................... 2 Intended Use and User of the Appraisal........................................................................... 3 LegalDescription.............................................................................................................. 3 Scope................................................................................................................................. 7 LocationDescription......................................................................................................... 8 PropertyDescription....................................................................................................... 13 Zoning............................................................................................................................. 23 Taxesand Assessments................................................................................................... 25 Analysis of Data and Opinions of Appraiser Highestand Best Use...................................................................................................... 27 PropertyValuation.......................................................................................................... 32 SalesComparison Approach........................................................................................... 34 Reconciliation................................................................................................................. 51 Certification.................................................................................................................... 51 Qualifications.................................................................................................................. 53 Assumptions and Limiting Conditions........................................................................... 56 Extraordinary Assumptions and/or Hypothetical Conditions ......................................... 61 SUBJECT PHOTOGRAPHS i' Fnr I • .w w. 991200M � v 991 fly 991200607 its 004000250 000000001 9912 200706 N PHOTO ANGLES MAP PHOTOS TAKEN BY SASHA TURGMAN, JANUARY 2, 2020 PHOTO 1: NORTHERLY VIEW OF LINGER LONGER AVENUE, SUBJECT TO THE LEFT PHOTO 2: SOUTHERLY VIEW OF LINGER LONGER AVENUE, SUBJECT TO THE RIGHT PHOTO 3: WESTERLY VIEW OF FREMONT AVENUE, SUBJECT TO THE LEFT PHOTO 4: EASTERLY VIEW OF FREMONT AVENUE, SUBJECT TO THE RIGHT PHOTO 5: SOUTHERLY VIEW OF SUBJECT FROM FREMONT AVENUE PHOTO 6: NORTHERLY VIEW OF SUBJECT FROM SOUTHERLY BOUNDARY PHOTO 7: SOUTHERLY VIEW OF COUNTY LAND FROM SUBJECT'S SOUTHERLY BOUNDARY PHOTO 8: WESTERLY VIEW OF BIG QUILCENE RIVER FROM COUNTY LAND (PHOTO NOT TAKEN ON SUBJECT PROPERTY) FACTUAL DESCRIPTION EXECUTIVE SUMMARY Property Identification: Fitzgerald Property (Parcel Number 991200606) 222 Fremont Avenue Quilcene, WA 98376 Owner of Record: According to the title report prepared by First American Title Company, dated September 30, 2019, ownership of the subject property is vested in The Heirs and Devises of Jerome Fitzgerald, deceased. A copy of the title report is included in the Addenda. Property Location: The subject is located along the westerly side of Linger Longer Road, northerly of the Big Quilcene River and southerly of Fremont Avenue in the Quilcene area of Jefferson County, Washington. Property Type: Residential land that is currently undeveloped. Assessor's Parcel Number: 991200606 Real Estate Taxes: $259.88 / 2019. Taxes are reported to be paid current. Zoning: Rural Residential 1 Unit/5 Acres (RR 1:5), per the Jefferson County zoning ordinance. Flood Insurance Zone: The subject property is located in a flood plain. Most of the subject is identified as being located in Zone A, an area inundated with 100 -year flooding, as per Flood Insurance Rate Map Number 530310903C, effective date June 7, 2019. Site Area: According to Jefferson County Assessor information, the subject property contains a total combined site area of approximately 16,875 square feet. Improvements: The subject is unimproved. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 1 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION Highest and Best Use: The Highest and Best Use of the subject property is for recreational use. Interest Appraised: Fee simple interest. 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. "3 Purpose/Function of the Appraisal: Date of Inspection Effective Date of Value 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 inspection. The appraisal is intended to assist the client in establishing an offer price for the property relevant to a potential acquisition. January 2, 2020 January 2, 2020 Date of Appraisal Report: January 15, 2020 Estimated Market Value: $35,000 3 The Dictionary of Real Estate Appraisal, 6h Edition, Appraisal Institute, Chicago, 2015, p. 90 FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 2 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION INTENDED USE AND USER OF THE APPRAISAL Client: Jefferson County Environmental Public Health. A Client is defined as: "The party or parties (i.e., individual, group, or entity) who engage an appraiser by employment or contract in a specific assignment, whether directly or through an agent. "4 Intended Users: This report is prepared for the client, Jefferson County Environmental Public Health. The Washington State Recreation and Conservation Office is also identified as an intended user. 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 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. "6 LEGAL DESCRIPTION The legal description for the subject property is provided within a title report, as prepared by First American Title Insurance Company, dated September 30, 2019. A copy of the title report is provided within the addenda of this report. 4 Uniform Standards of Professional Appraisal Practice, 2020-2021 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C., p. 4. 5Ibid., p. 4. 6Ibid., 4. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 3 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION DEFINITION OF MARKET VALUE Market Value is defined as "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. 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. "8 MOST PROBABLE BUYER The most probable buyer of the subject property is an owner/user. USE HISTORY The subject property is a rural residential site which benefits from its close proximity to county -owned waterfront along the Big Quilcene River. The site is vacant land which has historically been used for recreation purposes. RENTAL HISTORY The subject property has no known rental history. 7 Uniform Appraisal Standards for Federal Land Acquisitions, Interagency Land Acquisition Conference, Washington, D.C. 2016, Section 1.2.4, page 10. 8 The Dictionary of Real Estate Appraisal, 6s' Edition, Appraisal Institute, Chicago, 2015, p. 13. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 4 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION SALES HISTORY Based on the title report, ownership of the subject property is currently vested in The Heirs and Devises of Jerome Fitzgerald, deceased. The subject property has been under the same, or related, ownership since 2006. The current ownership purchased the property from Waleed S. Simba in June of 2006 for $30,000 by way of Statutory Warranty Deed. It is the appraiser's 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. The appraiser is not aware of any other recent transfers, arm's length sales or pending transactions relevant to the subject property. 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 Use Based on a review of Jefferson County records, the subject property is comprised of a single parcel (991200606) which is owned by the subject property owner. Thus, from a "unity of ownership" perspective, the larger parcel consists of the subject parcel containing an area of 16,875 square feet. The second category, "contiguity," normally requires that physical contiguity be present for a larger parcel to exist. The subject property is comprised of a single parcel with no other adjacent parcels being under the same ownership. In considering the third category, "unity of use," one of the main considerations is that the properties have an integrated Highest and Best Use. In this instance, the subject property has a singular Highest and Best Use, that of being used for recreation. Thus, from a "unity of use" perspective, the entire subject property, containing a total land area of 16,875 square feet, is indicative of the larger parcel. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 5 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION UNAVAILABILITY OF INFORMATION The appraiser was not provided with any specific feasibility studies relevant to the subject property. Therefore, any issues which might be raised if this information were available are not known or considered. SUMMARY OF THE APPRAISAL PROBLEMS ENCOUNTERED Within this assignment, the appraisal problems encountered are primarily relevant to the physical characteristics of the subject site. The site is undeveloped land which is impacted by various critical areas. The appraiser consulted Jefferson County personnel relevant to the development potential of the subject site. The appraiser has researched and endeavored to utilize comparable properties with similar characteristics as it relates to recreational use potential, focusing on private, non -agency transactions. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 6 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION 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 appraiser on January 2, 2020 relevant to the current assignment. The property contact, Elizabeth Elfering (208-841- 6246), gave the appraiser permission to inspect the property but declined to join the inspection. Financial, statistical, and demographic data was gathered using various informational systems such as 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 the physical inspection of the property and information provided by the client and owner's representative. Personnel of the Jefferson County Department of Community Development provided information regarding the zoning and development criteria for the subject. Within this appraisal all applicable approaches to the valuation of the property were considered. As the Highest and Best Use of the subject property is for recreational uses, and since the site is undeveloped, the Sales Comparison Approach as it relates to land is the only relevant approach to value. After assembling and analyzing the data, as defined within this appraisal development process, the final estimate of value is made. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 7 SH&H File 14949-19 B Chad C. Johnson, MAI 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 boundaries of a neighborhood are typically identified by determining the area within which the forces affect all surrounding properties in the same way they affect the property being appraised. The subject is located within an unincorporated area of 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 following page. A location map showing the subject property's immediate neighborhood is presented following the area map. The subject neighborhood is rural in nature, with a mixture of forestry uses, small-scale agricultural properties and scattered residential development in evidence in the small town of Quilcene. The Quilcene area includes services, with a greater level of commercial services available in Port Townsend, the county seat of Jefferson County, to the north. Port Townsend represents the only incorporated area in Jefferson County. Population growth for Jefferson County between 2000 and 2010 was moderate in terms of the percentage increase, estimated at roughly 9%, but relatively small in terms of the total number of residents, increasing from 25,953 in 2000 to 29,872 in 2010, an increase of 3,919 persons. The population estimate as of April 1, 2019 from the Washington State Office of Financial Management reports a county population of 31,900. 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, Quilcene and Port Ludlow. Port Townsend is home to approximately one-third of the county population, with an estimated 2019 population of 9,610 individuals. 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. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 8 SH&H File 14949-19 B Chad C. Johnson, MAI 11 Victoria Port Angeles Elwha )lympic jonal Park Olympic National Forest insdale FACTUAL DESCRIPTION :;earn-vvoo Lopez Island Burlington Fidalgo island Mt Vernon La Conner 0 Oak Harbor Stanwood Q CaupevMe Camano Island Bort Townsend ao� Sequim Port Marysvill Blyn Hadlock-Irondale szs Whidbey Island Everett til port Ludlow 1 �a jo Snv SUB; IECT PROPERTY Ki ,D Lynnwood Bc=k+SII Poulsbo xas Brinnen ; Scabeek Bainbridge ice. Island Seattle Bremerton 119 tat � 16u �' Lill>waup Renton Belfair SeaTac Hoodsport o Vashon Island Kent Union Allyn-Grapeview Federal 'Way Q Tacoma Shelton (ED C, ODI Lakewood Puyallup 51Z AREA MAP FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 9 SH&H File 14949-19 B Chad C. Johnson, N1AI FACTUAL DESCRIPTION East Quilcene Quiicene SUBJECT PROPERTY LOCATION MAP FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 10 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION Demographic Analysis The map below shows three rings surrounding the subject property, delineating a one - mile radius, a three-mile radius, and a five -mile radius. The study area includes the surrounding unincorporated area of Jefferson County. Population trends within the three radii are summarized in the exhibit on the following page. DEMOGRAPHIC STUDY MAP FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 11 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION POPULATION SUMMARY ONE -MILE RADIUS Total Average Annual Year Source Population Change (%) Change (%) 2010 Census 300 N/A N/A 2019 Estimate 321 7.00% 1.00% 2024 Projection 336 4.67% 0.93% THREE-MILE RADIUS Total Average Annual Year Source Population Change (%) Change (%) 2010 Census 1,054 N/A N/A 2019 Estimate 1,125 6.74% 0.96% 2024 Projection 1,172 4.18% 0.84% FIVE -MILE RADIUS Total Average Annual Year Source Population Change (%) Change (%) 2010 Census 1,476 N/A N/A 2019 Estimate 1,566 6.10% 0.87% 2024 Projection 1,627 3.90% 0.56% Source: Esd The total population during the survey period indicates modest upward trends, both in terms of annual percentage change and total growth. Population growth is estimated to continue at a relatively slow pace in the next five years, which is predictable given the subject's rural location. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 12 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION PROPERTY DESCRIPTION The site description is derived from site maps and observations made during the site inspection. SITE DESCRIPTION The subject site is located along the westerly side of Linger Longer Road, northerly of the Big Quilcene River, and southerly of Fremont Avenue in Quilcene, within unincorporated Jefferson County, Washington. Based on Jefferson County Assessor's information, the subject site contains an area of 16,875 square feet. The subject contains some native trees and shrubs on portions of the property. The subject is relatively flat. The site is at grade with Fremont Avenue, but below grade of Linger Longer Road. The site is improved with a gravel driveway and is permitted to have an RV parked onsite, albeit not permanently. Southerly of the subject is the Big Quilcene River, and its respective riverbank. The bank and river are owned by Jefferson County; however, access is available to the public. Thus, although the subject is not technically a riverfront site, it benefits from its close proximity to the Big Quilcene River. The site is impacted by various critical areas which will be addressed within this section. The appraiser contacted the Jefferson County Planning Department in order to ascertain the development potential of the site. Joel Peterson, Associate Planner (360-379-4457) spoke with the appraiser. According to Mr. Peterson, the site is highly constrained. He indicated that the site has a stormwater permit and a Habitat Management Plan for a private driveway and RV pad. The Habitat Management Plan is included within the Addenda of this appraisal. Based on discussions with Mr. Peterson, it is unlikely the site can support development. Further, flood regulations may limit the amount of time an RV can occupy the property. Thus, the site can be used for recreation purposes. Mr. Peterson will be referenced throughout the report. An aerial depiction of the subject property, with the approximate boundaries of the site outlined, is shown on the next page. Additional information pertaining to the site is as follows: Location: Located along the westerly side of Linger Longer Road, northerly of the Big Quilcene River, southerly of Fremont Avenue in Quilcene, unincorporated Jefferson County. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 13 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION AERIAL VIEW OF SUBJECT SITE SUBJECT PROPERTY OUTLINED IN RED FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 14 SH&H File 14949-19 B Chad C. Johnson, NIAI FACTUAL DESCRIPTION Access: The northerly boundary of the site provides vehicular access from Fremont Avenue to the subject via a gravel driveway. There is a chain strung between two wood poles to prevent unauthorized access to the site. Shape: The subject is "L" shaped. Site Area: The subject sites contain a total area of 16,875 square feet. Topography & Coverage: The subject site is relatively level. The site is at grade with Fremont Avenue, but below grade of Linger Longer Road. View Amenity: Big Quilcene River, located southerly of the subject on county -owned land. Utilities: The subject site is not currently served by water, gas, electric or sewage. Electricity is available along Linger Longer Road; however, there would most likely be a new service fee and an electric service box would need to be installed by the property owner prior to any electric service. The property contact indicated that attempts were made to be granted a permit for an onsite well from Jefferson County, but that the County denied the permits. Based on Permit Case Summary USR16-00039, it appears an application was received on October 17, 2016. The status is listed as "pending" with a note that indicates the application was reviewed. As of the date of inspection, the subject does not have any onsite wells or septic systems in evidence. Further, based on conversations with Mr. Peterson, it is unlikely the site could support a septic system due to its size and location within a flood zone. Mr. Peterson also indicated the site may not be able to accommodate a well, and if the site could support a well it would need to have an elevated casing above the base flood elevation. Timber: A timber cruise relevant to the subject was not provided. The trees contribute aesthetically to the site. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 15 SH&H File 14949-19 B Chad C. Johnson, MAI 1w • "m r 1 �ti T FACTUAL DESCRIPTION SOILS MAP ZI FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 16 SH&H File 14949-19 B Chad C. Johnson, NIAI FACTUAL DESCRIPTION Easements: A title report relevant to the subject property, as prepared by First American Title Insurance Company, dated September 30, 2019, was provided. The title report does not appear to reveal any atypical easements impacting the use of the subject property. There are no known easements or encumbrances that would negatively impact the subject's Highest and Best Use. Soils: Soils reports or studies for the subject property were not available. Instead, data from the U.S. Department of Agriculture's (USDA) Natural Resource Conservation Service soils data. Based on the soils map, the subject site is comprised of one primary soil, BG, Belfast Silt Loam. Per the Soil Survey of Jefferson County Area, Washington, "This nearly level soil is on flood plains. Most of it is subject to overflow about once every 10 to 30 years. Most slopes are I to 2 percent. This soil is well drained. Permeability is moderate. Roots penetrate to a depth of more than 60 inches. This soil holds about 9 to 11 inches of water available for plants. Runoff is very slow, and the hazard of water erosion is none to slight. This soil is subject to overflow in places. About 65 to 75 percent of the acreage of this soil is used for growing pasture, hay, and fruit and vegetable crops. Wooded areas are used as a source for woodland products, for wildlife habitat and recreation areas, and for rural homesites." Overall, it appears that the general soil characteristics of the subject sites' soils are adequate to support the Highest and Best Use of the subject property. Minerals: Based on the title report provided, ownership of the subject appears to include the underlying mineral estate; however, given the size of the site, as well as the presence of critical areas, it is unlikely that any future extraction of mineral reserves could feasibly be pursued. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 17 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION .FIAT Fremont Aire i D Q r• � F S� SUSC CRITICAL AQUIFER RECHARGE AREAS MAP FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 18 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION Hazardous Wastes: No site specific studies were provided. There do not appear to be any environmental issues or hazardous wastes that would negatively impact the use nor the valuation of the subject property. Wetlands: Based on Jefferson County mapping, it does not appear the subject is impacted by wetlands. A site specific study would need to be completed in order to determine if the subject is impacted by wetlands and to what extent. Critical Areas: Critical area maps are reproduced utilizing Jefferson County GIS mapping, as shown throughout this section. The site is impacted by two shoreline designations. The first is located on the easterly portion of the site. This area is designated a Natural Shoreline. The second shoreline designation impacts the remainder of the site and is identified as a Conservancy Shoreline. These designations limit development and further details of these designations will be addressed within the Zoning section to follow. Areas impacted by the Conservancy Shorelines still have development potential. They require a setback from the river of 150 feet with an additional 10 foot setback for buildings. According to the Shoreline Master Program, residential use may be permitted in a conservancy environment subject to permit reviews and inspection of the subject property. In addition, the entirety of the subject is located within a Critical Aquifer Recharge Area. Critical Aquifer Recharge Areas are those with geologic and hydrologic conditions that promote rapid infiltration of recharge waters to groundwater aquifers. More simply put, the groundwater, and thus wells, are susceptible to quality and/or quantity degradation. Sites which fall under this category are subject to the provisions of the protection standards, which primarily limits commercial and industrial uses. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 19 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION RlskMeter Overview Map i 3 • �a p, Flood Zones: X500 or B Zone A Zone V Zone D Zone %odway C BRA FLOOD MAP FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 20 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION The site is also considered to be in a Seismic Hazard zone. This designation suggests the subject's soil has a "liquification" potential in the event of an earthquake. Developed properties surrounding the subject also fall under this designation. In conclusion, the subject's environmental constraints limit the subject's development potential. It is unlikely that the site can support any further development. Flood Plain: The subject property located in flood plain Zone A, an area inundated with 100 -year flooding, as per Flood Insurance Rate Map Number 530310903C, effective date June 7, 2019. This possibly limits development potential, and any residential development would require flood insurance. Environmental Designations/ Shoreline Management: The Big Quilcene River, which traverses southerly of the subject property (on county -owned land), is an inventoried Shoreline of the State and development in the area of the property is subject to the requirements of Shoreline Master Program (Title 18.25 of the Jefferson County Code). Based on information provided by Jefferson County personnel, the site has little to no development potential. The site's current use in support of a gravel driveway utilized for RV parking is, most likely, the only development the site can legally support. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 21 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION Fremont Ave U0 R j rb Cons'C'd8ncy, Natural SMP SHORELINE ENVIRONMENTAL DESIGNATIONS MAP FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 22 SH&H File 14949-19 B Chad C. Johnson, NIAI FACTUAL DESCRIPTION ZONING The zoning for the subject property is Rural Residential 1 Unit/5 Acres (RR 1:5), per the Jefferson County Code. The purpose of this district is to "allow for continued residential development in areas of Jefferson County consisting of relatively high density pre-existing patterns of development, along the county's coastal areas, and within areas within or adjacent to rural centers and rural crossroads. In addition, this district seeks to support and foster Jefferson County's existing rural residential landscape and character by restricting new land divisions to a base density of one unit per five acres. " Outright permitted uses include, but are not limited to, single-family residences, duplexes, home businesses, bed and breakfast residences, mineral extraction activities, and parks and playfields. Shoreline Management As the Big Quilcene River is identified as a Shoreline of the State, development within 200 feet of the Big Quilcene River is subject to the regulations of Jefferson County's Shoreline Master Program. Specifically, the Big Quilcene River is classified as a "Natural" shoreline on the subject's easterly portion, and a "Conservancy" shoreline environment and shoreline for the remainder of the site. Both are described below. The intent of the Natural classification, "protects from harm or adverse impact shoreline areas that are intact, have minimally degraded functions and processes, or are relatively free of human influence." Permitted uses include aquaculture, forest practices, restoration enhancement, and nonstructural stabilization. The intent of the Conservancy classification, "provides for sustained use of resource lands and other relatively undeveloped shorelines while protecting ecological functions, conserving natural, historic and cultural resources, and providing recreational opportunities." FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 23 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION Permitted uses include low density residential and recreational uses, provided these activities do not significantly degrade or deplete resources and respect limiting environmental condition. Other uses include, but are not limited to, agriculture, aquaculture, forest practices, and residential development. According to the Shoreline Master Program (SMP) residential development is subject to a buffer of 150 feet from the shoreline, plus a 10 -foot building setback. These regulations limit the residential development potential and it is unlikely the site can support development. Critical Aquifer Recharge Areas The subject is identified as being located within a Critical Aquifer Recharge Area. As per the Jefferson County Code, Chapter 18.22: "Critical aquifer recharge areas are naturally susceptible due to the existence of permeable soils or a seawater wedge in coastline aquifers. Certain overlying land uses can lead to water quality and/or quantity degradation." Areas identified as the being susceptible to aquifer recharge areas are subject to further provisions of the protection standards. Per discussions with Mr. Peterson with the Jefferson County Land Use Department, it is unlikely that the subject would be permitted for some type of development. The Critical Aquifer Recharge Area Chapter of the Jefferson County Land Use Code has been reproduced within the Addenda of this report. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 24 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION TAXES AND ASSESSMENTS An assessor's parcel map is reproduced on the following page, with the subject property highlighted. The subject property is carried on the Jefferson County tax and assessment roll as follows: JEFFERSON COUNTY ASSESSOR DATA Assessed Improvement Total Assessor Parcel Land Value Value Value 991200606 $24,750 $0 $24,750 2019 Taxes $259.88 The 2019 taxes are based on the 2018 assessed value and the current levy rate. In addition to real estate taxes, the above amount includes, but is not limited to, charges for fire district bonds, regional library taxes, school district bonds, and veteran's relief. Taxes for the subject property are reported to be paid current. Relevant to the 2020 tax year, the assessed value is reported to be $25,988. As of the date of this report, the levy rate for 2020 has not been released. The estimate of market value herein correlates with the assessed value. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 25 SH&H File 14949-19 B Chad C. Johnson, MAI FACTUAL DESCRIPTION ASSESSOR'S PARCEL MAP FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 26 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER HIGHEST AND BEST USE By identifying and interpreting the market forces that affect a specific property in a local and regional context, the appraiser determines 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 appraiser 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 use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. "9 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. 9 Dictionary of Real Estate Appraisal, 6b Edition, Appraisal Institute, 2015, Page 109. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 27 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER 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 appraiser assumes 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 is discussed below. As the subject property does not contain any structural improvements an analysis as improved is not relevant. 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 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 subject property is zoned Rural Residential 1 Unit/5 Acres (RR 1:5), per the Jefferson County Code. Outright permitted uses include, but are not limited to, single-family residences, duplexes, home businesses, bed and breakfast residence, mineral extraction activities, and parks and playfields. Residential development is allowed at a maximum density of one unit per five acres. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 28 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER The subject site is impacted by critical areas, a flood zone and recognized shorelines (identified as a Natural and Conservancy Shoreline Environment) that require adherence to regulatory buffers which severely restrict the development of those areas. With a 150 - foot shoreline management buffer, along with a 10 -foot building setback from the buffer, the regulatory buffers and setbacks impacting the site generally eliminate any feasible use of these specific areas of the site beyond recreational or other low impact uses. Thus, from a legal perspective, being under Rural Residential zoning and recognizing the regulatory buffers and setbacks created by the shorelines and other critical areas on the site, it is unlikely the subject can support development. From a legal perspective, the site can be utilized for recreational purposes, specifically in support of an RV, per flood regulations which may limit the amount of time an RV can occupy the floodway. Physically Possible Use The next test of highest and best use is the physical possibility of constructing an improvement on the site. The subject property contains an area of 16,875 square feet. The site is accessed from Fremont Avenue. The Big Quilcene River is located southerly of the subject's southerly boundary. The site is impacted by various environmental constraints, as previously discussed. It is unlikely the site can support development. Given the physical characteristics of the subject, the most physically possible use of the subject property is for recreational use. Financially Feasible Use 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 factor having the most weight in determining the highest and best use is the feasibility of the use, which is primarily supported by perceived demand. One of the better indications of financial feasibility is the consideration of surrounding uses. Based on the legal and physically possible uses and the surrounding development, the site can be utilized for recreational purposes. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 29 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER The MLS does not report data relevant to vacant land for recreation purposes. However, the following residential market data still provides an overall indication of market trends. The following exhibit is replicated from the Multiple Listing Service (MLS) website. This exhibit focusses on the median sale price of single family residences within Jefferson County, over the past five years. �fl0.000 $400.000 S300,000- $200.000-, $100,000 �0 Sa[e Prig. Median As shown in the following chart, the median sale price was $195,000 in January 2015, as compared to $390,000 in January 2019. Over the time period identified, the information depicts an overall upward trend, punctuated by intermittent movement in a downward direction. Fluctuations notwithstanding, the median price of single family homes within the subject's market area has increased over recent years. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 30 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Overall, the residential market remains healthy, with slight fluctuations in average sale prices. A similar trend can be imputed to the subject, which can support recreational uses. The most financially feasible use of the subject property is for recreational use. Maximally Productive Use 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 recreational use. 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. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 31 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER PROPERTY VALUATION Since the subject site has no improvements the most appropriate valuation technique applicable for the subject property is a land valuation analysis. Land Value Analysis Several procedures for the valuation of land may be available to appraisers depending on available data. These include: I. The Sales Comparison Approach. Sales of similar vacant parcels are analyzed, compared, and adjusted to derive an indication of value for the land being appraised. 2. The allocation (abstraction) procedure. Sales of improved properties are analyzed, and the prices are allocated between land and improvements. 3. The extraction procedure. This is a variant of the allocation method, whereby the value of the contribution to the total value of the improvements are estimated, and then deducted from the total to leave land value. 4. The Income Capitalization procedures are as follows: a. The land residual procedure. The land is assumed to be improved to its highest and best use, and the net income imputable to the land after all expenses of operating and return attributable to the other agents in production is capitalized to derive an estimate of land value. b. The ground rent capitalization procedure. In this procedure the rent paid for the right to use and occupy land is capitalized to yield a value. Capitalization rates are derived from market data. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 32 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER c. The anticipated use (development) procedure. Undeveloped land is assumed to be subdivided, developed and sold. Development costs, incentive costs and carrying charges are subtracted from the estimated proceeds of sale, and the net income projection is discounted over the estimated period required for market absorption of the developed sites to derive an indication of value for the land being appraised. All techniques are considered; however, the most applicable method in the case of the subject property is the Sales Comparison Approach as it relates to the subject's underlying land. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 33 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER SALES COMPARISON APPROACH One of the most reliable indicators of value in an active market is derived by comparing the property being appraised with similar or near similar nearby properties that have recently sold. This approach reflects the principle that a well informed buyer will pay no more for a property than the cost involved in obtaining an equally satisfactory substitute property. A basic principle in the valuation of real estate is that no two properties are identical, thus, adjustments are necessary to reflect the various differences. This formalizes the thought process often followed by buyers and sellers and tends to yield a range of indicated values for the property appraised. A few of the more common factors that may influence value are detailed below: • Location is the primary factor in the valuation of virtually all real estate. As applied to this appraisal, the highest land values are found with those tracts having good access proximity to services. • Size of Tract is often another important factor to consider. As a general rule, on a per site basis, the smaller the parcel, the lower the overall value, all other factors being equal. • Terms and Conditions of Sale: sale prices listed for comparable sales are strongly influenced by sale terms and conditions. Sale prices are affected by the motivations of both seller and buyer. When liberal terms are offered by the seller, such as a low down payment, low rate of interest, and payment over an extended period of time, prices tend to be inflated, when compared to an all cash sale, the condition assumed when estimating Market Value. • Market Conditions: market conditions at the time sale is also important in estimating present land values. This is not only because of the cycles in land values within the community, but also because of market trends that affect the purchasing power of the dollar. • Physical Features: in considering current transactions, a number of physical factors also influence value. These include topography or slope, provision for waterfront access, ground cover and view, among others. When all of these conditions are favorable, a purchaser might reasonably be expected to pay a premium, and when one or more are unfavorable an offer to purchase will most probably be discounted. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 34 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER The subject market was researched in an effort to locate comparable sales data for the analysis of the subject. The research for comparable sales focused on rural properties with use potential primarily focused on recreational uses. Four comparables are selected for the analysis of the subject property. The chart below summarizes the comparables utilized, with a location map shown on the following page. Following the map, more detailed information for the comparables is presented, together with a parcel map and photograph. In this instance, the most appropriate unit of comparison is the price per site. The price per site indicated in the summary chart is after adjustments for quantitative items, including improvements and utilities in place at the time of sale, where applicable. LAND SALE COMPARABLES Sale Location Sale Date Analysis Price Area (Sq.Ft.) Analysis $/Site L-1 111 Cherry Lane Aug -19 $28,000 12,197 $28,000 Quilcene L-2 625 Duckabush Road Apr -19 $40,000 22,152 $40,000 Brinnon L-3 482 McInnis Dec -18 $60,000 94,090 $60,000 Quilcene L-4 200 Kelly Road May -19 $70,000 7,841 $70,000 Brinnon FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 35 SH&H Fite 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Sequim W85hll?, .. ... MarrowslonC H.,11, Island River Road to Bell Hill r'ukey Marrowstone Gardrnee Port E i= Hadlock-Irondale b'yn Chimacum Discovery Bay Eaglemount COMPARABLE L • 1 Leland Dabs ioi C1MPARABLE L ;• i7uil -ne SUBSEpT PRpPERTY C,yrnfr uisccuery tvt Bnnnon COMPARABLE L-2 xa a� rOMPARABLE L - 4 Sealaec Hite Center Crosby Mats Mats Port Ludla:v Port Gal Bridgehaven Lofall Breidahltck 3G7 Q Poulsbo Bangor k Trident Base Lemolo Keypon Coyle Olympic view Sunset Farts Ye Brownsville rox Silverdale Tnkkaia aaa Illahee Tracyton Wildcat Lake Erlands PGinl-Kttsap Lake Shendan Enetai 3 a Brefin Navy Yard Cil COMPARABLE LAND SALES MAP FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 36 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Land Sale No. 1 Pronertv Identification Record ID 13708 Property Type Residential Address 111 Cherry Lane, Quilcene, Jefferson County, Washington Deed Book/Page 98376 Location Snow Creek Ranch Tax ID 995400029 Instrument Statutory Warranty Deed Sale Data Grantor Mathew Chambers Grantee Stephen R Beck Sale Date August 09, 2019 Deed Book/Page 626014 Property Rights Fee simple Verification Patti Morris, Jace Real Estate; 360-461-9008, Confirmed by Sasha Turgman Sale Price $28,000 Land Data Zoning Topography Utilities Shape Land Size Information Gross Land Size Indicators Sale Price/Site Highest & Best Use Remarks RR -5 Level, sloped driveway Power, water, requires new septic Irregular 0.280 Acres or 12,197 SF $28,000 Residential/recreation This is the 2019 sale of a residential site within the Snow Creek Ranch community in the Quilcene area of Jefferson County. The site sold for a consideration of $28,000. At the time of sale, the site included power and water. In addition, the site included an unpermitted septic holding tank. The agent familiar with the details of the sale indicated the unpermitted tank was decommissioned after the property was listed and Jefferson County personnel inspected the site. The site was improved with gravel for RV parking, and a small outbuilding. The site includes access to Crocker Lake and is situated within close proximity to DNR land. The agent was not informed as to what the buyers intended to do with the site; however, the property was listed as being able to support a homesite, which is further supported by the fact that the majority of lots in the Snow Creek Ranch neighborhood are developed with single family residences. As of the survey date, an RV was situated on the site. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 37 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER SNOW CREEK RANCH 111 CHERRY LANE FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 38 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Land Sale No. 2 Pronerty Identification Record ID 13710 Property Type Recreational Address 625 Duckabush Road, Brinnon, Jefferson County, Washington 98320 Location S of River Road, N of river Tax ID 982201813 Instrument Statutory Warranty Deed Sale Data Grantor Colleen A Smith Grantee Patrick and Lori Devine Sale Date April 15, 2019 Deed Book/Page 623459 Property Rights Fee simple Verification Jeri Jacobson, Johnston Realty, Listing/selling agent; 360-796- 4603, Confirmed by Sasha Turgman Sale Price $30,000 Upward Adjustment $10,000 (seller motivation) Adjusted Price $40,000 Land Data Zoning RR -5 Topography Level, terraced at riverfront Utilities Water, power, septic not allowed Shape Rectangular Land Size Information Gross Land Size 0.509 Acres or 22,152 SF Indicators Adjusted Price/Site $40,000 Highest & Best Use Recreation Remarks This is the 2019 sale of a riverfront lot located in Brinnon, Washington. The site contains an area of 22,152 square feet and is generally level with some terracing along the riverfront. The site was improved with a shed and a dog kennel. The site cannot support development as Jefferson County will not approve an onsite septic system due to the proximity of the shoreline. The site was originally listed for $75,000 before being reduced to $59,000. The site ultimately sold for $30,000. The agent involved with the transaction indicated the sellers were highly motivated. She opined a more market-oriented sale price would have been $40,000. Thus, an upward adjustment of $10,000 has been made to this comparable to accurately reflect a typical market transaction. In addition to the riverfront, a $70 annual fee provides community members access to the beach which includes an oyster bed, and a public park. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 39 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER S OF RIVER ROAD, N OF RIVER s 625 DUCKABUSH ROAD FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 40 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Land Sale No. 3 Pronertv Identification Record ID 13704 Property Type Residential Address 482 McInnis Road, Quilcene, Jefferson County, Washington Location McInnis Road, northerly of E Quilcene Rd Tax ID 701185024 Instrument Statutory Warranty Deed Sale Data Grantor Jamie Eckenrode Trust Grantee Keith Brkich Sale Date November 30, 2018 Deed Book/Page 620969 Property Rights Fee simple Verification Karen Brattain, Coldwell Banker, Listing Agent; 360-316-9246, Confirmed by Sasha Turgman Sale Price Land Data Zoning Topography Utilities Shape Land Size Information Gross Land Size Indicators Sale Price/Site Highest & Best Use $60,000 RR -20 & Ap-20 Level to sloping Well & electric, septic required Rectangular 2.160 Acres or 94,090 SF $60,000 Residential/recreation Remarks This is the 2018 sale of a 2.16 acre parcel located near the downtown area of Quilcene, Washington. The site, reportedly, has Mountain views if some trees are removed. The site is bisected by McInnes Road, with approximately one acre on the easterly side and the other, approximately, one acre of the westerly side. The easterly portion of the site was cleared prior to the sale and has access to a shared well and electricity in the street. A septic system is required for development. The easterly portion of the site is encumbered by a conservation easement which prohibits development. The property owner has legal access to the easterly portion which includes creeks and waterways but is restricted in development. The agent involved with the transaction reported the buyer intends to construct a small residence as a vacation -type home. She indicated the conservation easement was seen as an amenity to the buyer as he wanted to retain the natural elements of the land. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 41 SH&H File 14949-19 B Chad C. Johnson, MAI " 1 1, t ANALYSIS OF DATA AND OPINIONS OF APPRAISER momw YO ge... I '* P, "l I hw MCINNIS ROAD, NORTHERLY OF E QUILCENE RD 482 MCINNIS ROAD FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 42 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Land Sale No. 4 Pronertv Identification Record ID 13709 Property Type Recreational Address 200 Kelly Road, Brinnon, Jefferson County, Washington 98320 Location SW of Kelly Rd, NE of River Tax ID 981002215 Sale Data Grantor Patrick W & Valeria Hurlocker Trust Grantee Haberstroh Family Living Trust Sale Date May 20, 2019 Deed Book/Page 624235 Property Rights Fee simple Verification Jeri Jacobson, Johnson Realty, listing/selling agent; 360-796- 4603, Confirmed by Sasha Turgman Sale Price $70,000 Land Data Zoning RR -5 Topography Level/terraced towards river Utilities Power, water, septic not permitted Shape Rectangular Land Size Information Gross Land Size 0.180 Acres or 7,841 SF Indicators Sale Price/Site $70,000 Highest & Best Use Recreation Remarks This is the 2019 sale of a riverfront lot located in Brinnon, Washington. The site contains an area of 7,841 square feet and is generally level, with some terracing along the riverfront. The site was improved with a two-bedroom bunkhouse, and space for both a covered and uncovered RV parking area. The covered RV parking area includes a wooden deck. In addition, there were two storage sheds on the site. The site cannot support development as Jefferson County will not approve an onsite septic system due to the proximity of the shoreline. The site sold for $70,000. In addition to the riverfront, a $70 annual fee provides community members access to the beach which includes an oyster bed, and a public park. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 43 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER SW OF KELLY RD, NE OF RIVER 200 KELLY ROAD FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 44 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER ANALYSIS OF COMPARABLE SALES There are six common elements of comparison that should always be considered in the sales comparison analysis. These are: Property rights conveyed, Financing terms, Condition of sale, Market Conditions/Date of Sale, Location, and Physical characteristics. In the discussion to follow, the characteristics of each sale are analyzed, noting for differences between the comparables and the subject property. A superior characteristic for a specific aspect relevant to a comparable suggests a downward adjustment relative to the subject, with an inferior characteristic suggesting an upward adjustment. The discussion of the adjustment process follows. Quantitative Adjustments The property rights conveyed, financing and transactional adjustments do not require any quantitative adjustments for the comparables. In terms of conditions of sale, L-2 is adjusted upward $10,000 to account for a motivated seller. Market Conditions 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. There has been a general upward trend in values in recent years. An upward adjustment of 3% per year (0.25% per month) is imputed. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 45 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Price per Site Analysis Adjustments can be made to comparable sales to estimate the value of the subject property on a price per site basis. For illustration purposes, an adjustment chart presented on the next page has been utilized for the analysis of the subject. This adjustment grid displays the adjustments made to the comparable sales to account for the differences between the sales and the subject property. These adjustments are believed to reflect the market's most probable reaction to these differences. These adjustments are for each element of comparison identified as contributing to a value difference. The adjustments are negative or positive, depending on whether a certain characteristic is superior or inferior to the subject property. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 46 SH&H File 14949-19 B Chad C. Johnson, MAI LAND SALES COMPARISON ANALYSIS Comparable Number L-1 L-2 L-3 L-4 Property Subject 111 Cherry Lane 625 Duckabush Road 482 McInnis 200 Kelly Road Quilcene Brinnon Quilcene Brinnon Sale Price $28,000 $30,000 $60,000 $70,000 Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjustment $0 $0 $0 $0 Adjusted Price $28,000 $30,000 $60,000 $70,000 Financing Cash to Seller Cash to Seller Cash to Seller Cash to Seller Cash to Seller Adjustment $0 $0 $0 $0 Adjusted Price $28,000 $30,000 $60,000 $70,000 Conditions of Sale Arms Length Arms Length Seller Motivation Arms Length Arms Length Adjustment $0 $10,000 $0 $0 Adjusted Price $28,000 $40,000 $60,000 $70,000 Transactional Adjustments None None None None None Adjustment $0 $0 $0 $0 Adjusted Price $28,000 $40,000 $60,000 $70,000 Date of Sale Jan -20 Aug -19 Apr -19 Dec -18 May -19 Months Since Sale 4 8 12 7 Adjustment 3.00% 1.00% 2.00% 3.00% 1.75% Adjusted Price $28,280 $40,800 $61,800 $71,225 Adjusted Prim $28,280 $40,800 $61,800 $71,225 Improvement Area(Sq.Ft.) 16,875 12,197 22,152 94,090 7,841 Adjusted Price/Site $28,280 $40,800 $61,800 $71,225 Qualitative Adjustments Location Quilcene Inferior Similar Similar Similar Adjustment Access Yes Inferior Similar Similar Similar Adjustment ++ Site Utility/Development Potential Poor Superior Similar Superior Similar Adjustment - - Size(Acres) 16,875 12,197 22,152 94,090 7,841 Adjustment -- Critical Areas Yes Superior Similar Superior Similar Adjustment - - Riverfront Access via County Inferior Superior Inferior Superior Adjustment ++ - + - UtilitiesAtSite None Superior Superior Superior Superior Adjustment - - - - Improvements None Superior Superior Similar Superior Adjustment - - - Total Adjustment Upward Downward Downward Downward FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 46 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Qualitative Adjustments Qualitative adjustments are applied to the comparables in order to estimate the appropriate unit value for the subject. Factors considered for adjustment include location, access, site utility, size, critical areas, and water elements. The individual comparables are now analyzed as it relates to the various characteristics that impact value. Location The subject is located in the downtown area of Quilcene, Washington. Comparables L-1 is located in the Snow Creek Ranch area, which is further removed from commercial amenities than the subject, warranting an upward adjustment. The remaining comparables are located in similar enough locations, all things considered, that no further adjustments are required. Access The subject has good access to the site via Fremont Avenue, a paved roadway. L-1 has inferior access as the roadway is graveled and narrow. Access to L-1 is difficult and L-1 is adjusted upward to the subject. The remaining comparables are similar enough that no further adjustments are applied. Site Utility The subject has relatively level terrain and is "L" shaped; however, the site cannot support development. L-1 and L-3 have development potential and are adjusted downward to the subject. L-2 and L-4 are similar to the subject in that any improvements onsite were constructed prior to new development restrictions, and no further development of L-3 and L-4 is legally allowed. Size (Acres) The subject contains an area of approximately 16,875 square feet. Typically, there is an inverse relationship between size and unit value, where larger properties tend to sell for a higher price than smaller sites, all things considered. L-3 is adjusted downward to the subject for its larger site area. L-4 is adjusted upward to the subject for its smaller site area. L-1 and L-2 are similar enough in size that no further adjustments are required. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 47 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Critical Areas The subject is impacted by various critical areas. L-1 and L-3 are superior in this regard and downward adjustments are applied. L-2 and L-4 are similar to the subject. Riverfront The subject has access to the Big Quilcene River via county -owned land which is located southerly of the subject. L-1 has access to Crocker Lake, which is located across the Olympic Highway from this comparable. L-1 requires a strong upward adjustment. L-3 includes land which has streams bisecting the conservation area. This comparable also requires an upward adjustment. The remaining comparables have access to the riverfront as well as beach and park access. These comparables are adjusted downward to the subject for these superior attributes. Utilities at Site The subject does not have utilities stubbed to the site, and it is unlikely that utilities can be brought to the site. All of the comparables are superior in this regard. Improvements The subject site does not have building improvements onsite. L-3 can support development but did not include any improvements at the time of sale. Thus, it is similar to the subject. The remaining comparables sold with various outbuildings or covered RV parking areas and downward adjustments are applied. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 48 SH&H File 14949-19 B Chad C. Johnson, MAI ANALYSIS OF DATA AND OPINIONS OF APPRAISER Conclusion The comparable sales indicate an adjusted range of $28,280 per site to $71,225 per site. Comparable L-1, at $28,280 per site is adjusted upward to the subject, suggesting the subject would sell for a higher price than L-1. Conversely, L-2 ($40,800) through L-4 ($71,225) were adjusted downward to the subject, suggesting the subject would sell for less per site than L-2. L-1 required more adjustments than L-2. Thus, a value closer to L-2 than L-1 is warranted. A value of $35,000 is market supported. Based on the preceding analysis, the site value for the subject property by the Sales Comparison Approach is concluded at $35,000. Market Value Conclusion, by the Sales Comparison Approach, as of January 2, 2020: $35,000 FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 49 SH&H File 14949-19 B Chad C. Johnson, MAI RECONCILIATION The only applicable approach to value in the case of the subject property is the Sales Comparison Approach. 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 land sales similar to the subject. The sales used in this analysis were adjusted for dissimilarities as compared to the subject, including quantitative and qualitative adjustments, thereby setting reasonable parameters for valuation of the subject. In summary, the Sales Comparison Approach was the only approach to value applicable relevant 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, effective as of January 2, 2020, is estimated to be: THIRTY-FIVE THOUSAND DOLLARS $35,000 FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 50 SH&H File 14949-19 B Chad C. Johnson, MAI CERTIFICATION I 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 reported assumptions and limiting conditions, and represent my personal, impartial and unbiased professional analyses, opinions and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and have no personal interest 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. 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. 7. I 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. 8. Sasha Turgman, License Number 1002008, provided real property appraisal assistance to the person signing this report relevant to the inspection, subject research, market research, comparable confirmation, analysis and/or report preparation. 9. This appraisal was made and the appraisal report was prepared in conformity with the Uniform Appraisal Standards for Federal Land Acquisitions. 10. 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. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 51 SH&H File 14949-19 B Chad C. Johnson, MAI CERTIFICATION 11. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. 12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 13. I am competent and qualified to perform the appraisal assignment. 13. I have not performed services, as an appraiser, 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. 14. 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. 15. The value conclusion relevant to the subject property is estimated herein at $35,000. L, Chad C. Johnson, AI State of Washington Certification 1101662 FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 52 SH&H File 14949-19 B Chad C. Johnson, MAI 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 FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 53 SH&H File 14949-19 B Chad C. Johnson, MAI 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 FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 54 SH&H File 14949-19 B Chad C. Johnson, MAI QUALIFICATIONS PARTIAL LIST OF CLIENTS FOR WHICH I HAVE COMPLETED APPRAISALS Alaska USA Federal Credit Union Olympic Bank AmericanWest Bank One Pacific Coast Bank Anchor Savings Bank Pacific International Bank Bank of America Pacific Northwest Bank Bank of the Pacific Peoples Bank Bank of the West Pierce Commercial Bank Banner Bank Quinault Maritime Resort Business Loan Center, Inc. Quinault Nation Enterprise Board Capital Land Trust Rainier Pacific Bank Center for Natural Lands Management Seacoast Commerce Bank Christian Community Credit Union Seattle Savings Bank CIT Small Business Lending Security State Bank City of Enumclaw Sequim School District City of Kent Skagit State Bank City of Tacoma Public Works Sound Community Bank Coastal Community Bank South Sound Bank Colliers International Sportsmen's National Land Trust Colonial Bank, NA Sterling Savings Bank Columbia Bank Sunwest Bank Commencement Bank Suquamish Tribe Energy Northwest Thurston First Bank FDIC Timberland Bank First Community Bank Trust for Public Land First Federal Tukwila School District First Horizon Corporation U.S. Bancorp First Interstate Bank U.S. Department of Interior Grays Harbor County Umpqua Bank Great Peninsula Conservancy UniBank Heritage Bank Union Bank Jefferson County Environmental Public Health Valley Bank KeyBank Business Service Center, Ohio Viking Bank KeyBank National Association WA State Department of Fish & Wildlife Kitsap Bank WA State Department of Natural Resources 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 FITZGERALD PROPERTY, JEFFERSON COUNTY, WA SH&H File 14949-19 B 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 Page 55 Chad C. Johnson, MAI 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. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 56 SH&H File 14949-19 B Chad C. Johnson, MAI 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. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 16. 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 persons signing the report. 17. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 57 SH&H File 14949-19 B Chad C. Johnson, MAI ASSUMPTIONS & LIMITING CONDITIONS 18. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 19. 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. 20. 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. 21. 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. The Americans with Disabilities Act (ADA) became effective in the 1990s. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner's financial ability with the cost to cure the non -conforming physical characteristics of a property, a specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 22. 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 persons 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. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 58 SH&H File 14949-19 B Chad C. Johnson, MAI ASSUMPTIONS & LIMITING CONDITIONS 23. The persons 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. 24. The appraisal report and the value conclusion within the appraisal is predicated upon the assumption that the satisfactory completion of construction, repairs or alterations will be performed in a workmanlike manner. 25. It is expressly acknowledged that in any action which may be brought against SH&H Valuation and Consulting or their respective officers, owners, managers, Natural Resources Program Coordinators, 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. 26. 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). FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 59 SH&H File 14949-19 B Chad C. Johnson, MAI ASSUMPTIONS & LIMITING CONDITIONS 27. 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. 28. Any prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 29. 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. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 60 SH&H File 14949-19 B Chad C. Johnson, MAI EXTRAORDINARY ASSUMPTIONS AND/OR HYPOTHETICAL CONDITIONS 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. -10 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. 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. "11 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. 10 Uniform Standards of Professional Appraisal Practice, 2020-2021 Edition, Appraisal Standards Board, The Appraisal Foundation, Washington D.C., p. 4. 11 Ibid p. 4. FITZGERALD PROPERTY, JEFFERSON COUNTY, WA Page 61 SH&H File 14949-19 B Chad C. Johnson, MAI ADDENDA CONTRACT AMENDMENT NO. 1 For Personal Services Between SH&H Valuation and Consulting and Jefferson County The Agreement between Jefferson County, hereinafter referred to as `the County' and SH&H Valuation and Consulting, hereinafter referred to as `Subcontractor," to provide appraisal services to support property acquisitions for purpose of Big Quilcene River floodplain restoration and salmon recovery is amended effective October 1, 2019 through December 31, 2020. AMENDMENT PURPOSE The purpose of this amendment is to remove two parcels, add two parcels, add a source of grant funding and a source of match, and increase the not -to -exceed cost in order to conduct two new appraisals of floodplain properties. SECTIONS CHANGED La) Revised to add RCO contract #18-1227: 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 (RCO #16-1480, #17-1052 and #18-1227) consistent with Washington State Recreation and Conservation Office Manual 3, Acquisition Projects and Uniform Appraisal Standards of Federal Land Acquisitions "Yellow Book" standards. 4.a) Revised to increase funding to $15,200: Payment for the work provided by Consultant shall not exceed $15,200 at a rate of $3,800 per appraisal report without express written modification of the Agreement signed by the County. 4-b) Revised to include a grant to the Hood Canal Salmon Enhancement Group as match to RCO # 18- 1227: Funding for this contract will be provided by a RCO and WA Department of Ecology grants, including a grant to the Hood Canal Salmon Enhancement Group as match to RCO #18-1227. If funding 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. Exhibit A: Scope of Work - Revised to add RCO contract #18-1227 and remove and add properties: 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 (RCO #16-1480,417-1052 and #18-1227) consistent with Washington State Recreation and Conservation Office Manual 3, Acquisition Projects and Uniform Appraisal Standards of Federal Land Acquisitions "Yellow Book" standards. The order of priority for the first three appraisals is as follows: Page 1 of 2 Land Acquisitions "Yellow Book" standards. The order of priority for the first three appraisals is as follows: 1. Property 1: APNs 991200505 and 991200503 2. Property 2: APN 991200401 3. Property 3: APN 7022442012 4. Property 4: APN 991200606 All other terms and conditions of the original MOU remain in full force and effect. All work performed consistent with the Agreement prior to the execution of this Amendment No. 1 is hereby ratified. 1N WITNESS WHEREOF: the parties have signed this amendment. JEFFERSON COUNTY Kate, Chair Date Board of Jefferson County Commissioners ATTEST: Carolyn 6611away Date Deputy Clerk of the Board APPROVED AS TO FORM: R .,. - �. Philip Hunsucker Date Chief Civil Deputy Prosecutor SH&H Date Page 2 of 2 PL -630-159 (FV3(16) JEFFERSON TITLE COMPANY Order Summary Sheet for Commitment No.: 86299 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: 222 Fremont Ave, Quilcene, WA 98376 Seller: Fitzgerald Estate Buyer: Jefferson County, Health Dept. Your Title Contact: Betsy Trager Title Glficcr................................................................betsy@jeffersontitlecompany.com Recording Department: Addie Enges Recording Clerk......................................................... addie@jeffersontitlecompany.com P1. -ase be advised that we require an enjail to release air recordings. Thunk you ill odva-?ce for "01). assistoncc! 2205 Washington Street, Port Townsend, WA 98368 1 phone 360.385.2000 fax 360.385.6967 1 www.leffersontitlecompany.com FntArnezican Title'" ALTA Commitment for Title Insurance ' ISSUED BY First American Title Insurance Company Commitment I COMMITMENT FOR TITLE INSURANCE Issued By FIRST AMERICAN TITLE INSURANCE COMPANY NOTICE IMPORTANT -MEAD CAREFULLY. THIS COMMITMENT [SAN 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 TO ANY PERSON, INCLUDING A PROPOSED INSURED. THE COMPANY'S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TOA 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 k -Requirements; Schedule B, Part Il—Exceptions; and the Commitment Conditions, Firsf American 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 atter the Commitment Date, this Commitment terminates and the Company's liability and obligation and. First American Title Insurance Company � � �lh ��x - " Dennis J. Gilmore, President �" bp 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 8, 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 2006-20116 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, A_ME AI GAN LAND TITLE ASSOCIATIUm Form 5030000 (1-31-17) Pagel of 11 1 ALTA Commitment for Title Insurance (8-1-16) COMMITMENT CONDITIONS 4. DEFINITIONS (a) "Knowledge" or "Known": Actual or imputed knowledge, but not constructive notice imparted by the Public Records. (b) "Land": The land described in Schedule A and affixed improvements that by law 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 w€thout Knowledge. (h) "Title": The estate or interest described in Schedule A. 2. if all of the Schedule B, Part [—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 cwunter4gnature 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 Comm€trrtent. S. 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 (ill) 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 liabliity shall not exceed the lesser of the Proposed Insured's actual expense incurred in good faith and described in Commitment Conditions 5(a)(1) through 5(a)(€1€) 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 B, Part t—Requirements; Schedule B, Part li--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 AMERICAN ALTA members in good standing as of the date of use. All other uses are prohibited. L IPTI ILE Reprinted under license from the American Land Title Association. n ��j Page 2 of t t 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 Il--Exoepbon 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 titre 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.orcWarbitrafion. 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 t—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. Form 5030000 (1-31-17) Page 3 of 11 AMERICAN LANA TITLE ASSOCIATION ALTA Commitment for Title Insurance (8-1-16) Rist American 71"de 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 4 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 duality 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 B, Part I—Requirements, Schedule 8, Part 11--Excepbons; 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. AMERICAN LAtJU TITLE ASSOCIAi N XT Form 5030000 (1-31-1'7) Page 4 of 11 F 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 I ink 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. FlrstAm.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 8, Part Requirements; Schedule B, Part 1�—Excepdons; 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 AMERICAN tANb TITLE ALTA members in good standing as of the date of use. All other uses are prohibited. "SOCIATION Reprinted under license from the American Land Title Association, Form 5030000 (1-31-17) Page 5 of 11 1 ALTA Comm ftent for Title Insurance (8-1-16) 4.1 AMf*IC ,lb FirstArncrican r1de'° Schedule A ALTA Commitment for Title Insurance ISSUED BY First American Title Insurance Company 86299 Transaction Identification Data for reference only.- Issuing nly.Issuing Agent: Jefferson Title Company, Inc. Issuing Office's ALTA® Registry ID: 400038 Commitment No.: 86299 Property Address: 222 Fremont Ave, Quilcene, WA 98376 Issuing Office: 2205 Washington Street, PQ Box 256 Port Townsend, WA 98368 SCHEDULE A 1. Commitment Date: September 30, 2019 at 8:OOAM Policy to be issued: (a) ® ALTA® Owner Policy Standard Proposed Insured: Jefferson County Proposed Policy Amount: $TBD Premium: TBD Sales Tax: TBD 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: The Heirs and Devises of Jerome Fitzgerald, deceased Your title officer for this transaction is Betsy Trager. If you have any questions concerning this title commitment, please do not hesitate to call me at (360) 385-2000 or email betsy@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 8, Part I—Requirements; Schedule B, Part I!—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. AMERICAN LAND TITLE A}EOCIATION 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 10, 11 and 12 of Block 6 of the Original Townsite of Quilcene, as per plat recorded in Volume 2 of Plats, page 33, records of Jefferson County, Washington. 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 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 hand 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 tri AMTRILAN i•.n 1Tii &14111 1Az loo ALTA Commitment for Title Insurance (8-1-16) Schedule A `•+M:., Fir tAr etican Tide e ALTA Commitment for Title Insurance ISSUED BY First American Title Insurance Company Schedule B - Part I 88299 Commitment No.: 86299 SCHEDULE B, PART I Requirements All of the following Requirements must be met: 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. It is our understanding that Jerome Fitzgerald is now deceased. However, we find no evidence of record in Jefferson County that said party is in fact deceased or of a probate of the estate of said decedent. Therefore, the company will require the following prior to closing. (A) A completed, signed and acknowledged title company lack of probate affidavit, the form and substance of which is subject to the approval of this company; (B) A copy of the decedent's last will. If the decedent did not leave a will, this should be so noted on the lack of probate affidavit; (C) A copy of the community property agreement, if such existed. If not, this should be noted on the lack of probate affidavit; (D) Proof of death of the decedent, made by a copy of the certified death certificate will need to be submitted prior to closing. This page is only a part of a 2016 ALTAO 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 N—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-BIRBII (1-31-17) Page B of 11 AWRICAN IANO IM Aswc-[AiWV IXT ALTA Commitment for Title Insurance (5-1-16) Schedule BI & 1311 ALTA Commitment for Title Insurance RmtAmerican T."itle ISSUED BY First American Title Insurance Company Schedule B - Part 11 86299 I 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, Part (— 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 ALTAO 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—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. !ar[ AMUMAN 1.4�:{•Iit t �ts+ixwa�a Form 5030000-BI&BII (1-31-17) Page 9 of 11 ALTA Commitment for Title Insurance (8-1-16) Schedule BI & 1311 9. Lien of the real estate excise sales tax and surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate is 1.78%. Tax code RCW Chapter 82.45. 10. General taxes for the year 2019 which have been paid Amount: $ 259.88 Tax Account No.: 991 200 606 Property ID No.: 41702 Assessed value: $ 24,750.00 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. 12. Any question that may arise due to the shifting and/or changing in the course of Big Quilcene River. 13. Right of the State of Washington in and to that portion, if any, of the property herein described which lies below the line of ordinary high water of the Big Quilcene River. 14. Rights of the general public to the unrestricted use of all the waters of a navigable body of water not only for the primary purpose of navigation, but also for corollary purposes; including (but not limited to) fishing, boating, bathing, swimming, water skiing and other related recreational purposes, as those waters may affect the tidelands, shorelands or adjoining uplands and whether the level of the water has been raised naturally or artificially to a maintained or fluctuating level, all as further defined by the decisional law of the state. (Affects all of the premises subject to such submergence) 15. Any adverse claim based upon the assertion that: (a) Said land or any part thereof is now or at any time has been below the ordinary high water mark of the Big Quilcene River. (b) Some portion of said land has been created by artificial means or has been accreted to such portion so created. (c) Some portion of said land has been brought within the boundaries thereof by an avulsive movement of the Big Quilcene River, or has been formed by accretion to any such portion. 16. Right, title and interest of any spouse of Jerome Fitzgerald, vested owner, between June 26, 2006, the date the vested owner acquired a contract purchaser's interest, and December 3, 2010, the date the fulfillment deed was recorded. Neither the contract nor the fulfillment deed disclosed the marital status of the vested owner. If the vested owner was not married between June 26, 2006 and December 3, 2010 or was married to a spouse who is joining in the execution of the forthcoming instrument, a statement to that effect will be sufficient; otherwise, any interest of the spouse of the vested owner between those dates must be cleared. 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 �—Repuirements, 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. Form 5030000-13I0II (1-31-17) Page 10 of 11 ALTA Commitment for7itle 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 10-12, 13Ik6, 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: 222 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. 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 1I—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-BI&BII (1-31-17) Page 11 of 11 AIlft IAN NPb ALTA Commitment for Title Insurance (8-1-16) Schedule BI & 1311 556197 PIGS: 2 5Wa 121'",zelICamly I" ta'■111 0,411%?= tjV=Y auditor WHEN RECORDED RETURN TO: Vin" W111114 SM W K404% Nil Name: William A. Eastman & Co.. Inc. Address. P.Q. Box 519 City, State, Zip: PPoulsbo. WA 98370 Acct. 7697 Jefferson County Excise Tax Aff # Date SR.r1j pw-' Tax $ Sales Amt $'Erlew- gy Deputy Treasurer STATUTORY WSAR NTY DEED THE GRANTOR ALICE M. EASTMAN, a widow for and in consideration of Ten and Nall 00 ($ 10.00) Dollars in hand paid, conveys and warrants to JEROME FITZGERALD the following described real estate, situated in the County of Jefferson, State of Washington: Lots 10, 11 and 12 of Block 6 of the Original Townsite of Quilcene, as per plat recorded in Volume 2 of Plats, Page 33, records of Jefferson County, Washington. Situate in the County of Jefferson, State of Washington. This Deed is given in fulfillment of all the terms and conditions of that certain "Real Estate Contract" dated June 8, 2006, and recorded June 26, 2006, under recording number 512726 between Waleed S. Simba, as seller and Jerome Fitzgerald, as purchaser, which was assigned by a Seller's Assignment of Contract and Deed dated August 7, 2006, and recorded August 11, 2006, under recording number 514369, to Grantor herein, and is a Warranty as of date of above mentioned contract. Real Estate Excise Tax Paid Under Receipt No.106963 on June 26,20% Tax Account Number 991 200 606 Dated _ Alt Z3 .20 Q6 x //L . L•�CJi ALICE M. EASTMAN STATE OF WASHINGTON COUNTY OF ss 7 or THIS IS TO CERTIFY that on the 2%1 i day of UG D bld before me appeared Alice M. Eastman to me known to be the individual named in and who executed the foregoing instrument, and acknowledged that she signed the same as her free and voluntary act and decd, for the uses and purposes th mentioned N ary Public i nd f r the St, W shin f, R siding atM.Zx�$ My Commission Expires: 566187 Page 2 of 2 12105/201012:16 PM STATE OF w OF ss. COUNTY OF �s } THIS IS TO CERTIFY that on the 2- 3n day of CYC[ _ 244 before me appeared Alice M. Eastman to me known to he the individual named in and who executed the foregoing instrument, and acknowledged that she signed the same as her fine and voluntary act and deed, for the uses and purposes ss-therein mentioned. } Notary Public in and for the State of"� Residing at Mycornmission Expires: ,W:_, is�r This sketch is provided, without a charge, for your information. It is not intended to show all matters related to the property including, but not limited to, area, dimensions, easements, encroachments or location of boundaries. It is not a part of, nor does it modify, the commitment or policy to which is attached. The Company assumes NO LIABILITY for any matter related to this sketch. Referenced should be made to an accurate survey for further information. 11 k 1 2 I 12 i g 4 5 208' 87C Tax 40 '. j i I ' S'• Ptn Tex 47 ;e 702241006 m Vac. i-20-58 Vac. 10-4-76 °D aco Tax Su6jBPAE - _ - Ptn Lot 1 Blk 7 - I pt 1 Blk 6~ v 'rr+ Q 6.041a T9; 702241003 0c Tax 6(Ls PtS&W 1. F ci 1 Linger Longer Rd. of 45 a Rd.) u 215' in Ptr+ Lot 1 208'4 !1.29 V 241004 6 (S & W of Tax 17 ' Tex 16 2x Rd.) a. Qullcane Ave. Va 6-7-2 T 1 2; 3 4 i 6 7 8' H 10 + 2 3 1 4 15 8 7! 8 i B' 10 1 2 3 4 i 5 1 6 1 7 1 ? I B 110 1 1 2 I d l 11 5 8 8 1 � j ' 1 7 -+si•-�.. �----r- I I I 20 i 101 18 77 1 18 16 [ 14 12 1 11 i 20 i TO i 18 T7 18 16 14 113 12 1 15 30 I +8 +B 1 17 +8 111 1 +3 i 12 111 20 I 18 18 j 17 +B 115 3 14 S +3 i Vac. 6-19-00 I [ Fremont Ave. ,a +! 2 i e i 4 H H[ 7 e j 9 '• 10 T j 2 I 3 1 4 6 1 7! e i B 10 2{ 8 4 3 H 13, 7 1 6 1 9 I t0 Q 1 1 i 2[ 3 1 4 5 1 H I ! [ 7 �1 4i 131 12111 RO 19 16117 18 15 14 i 131 121 20 ; 10 I is [ 171 115 141 19 12, 1T 20f 18 16 i 17 I +8 14 13 p 1 a X15 20 19 1814 ! 76 115 �i��ci9 Vac. 111-16-53 U I G e h e Chattanooga Ave. 1 2 3 5 8 7 A ! 1 ° I � I 1 � 1 � 1 1 + 7 8 B 110 i �. i 2 0-I 4 1 [ 8 1 1 2 3 4 i F I H I 7 H 0 1 10 1 1 2 3 4 F .-. I � i ! i This sketch is provided, without a charge, for your information. It is not intended to show all matters related to the property including, but not limited to, area, dimensions, easements, encroachments or location of boundaries. It is not a part of, nor does it modify, the commitment or policy to which is attached. The Company assumes NO LIABILITY for any matter related to this sketch. Referenced should be made to an accurate survey for further information. Kunz Biological Consulting Fitzgerald Habitat Management Plan August 15, 2008 PRIORITY HABI'T'AT AND SPECIES MANAGEMENT PLAN Fitzgerald Property Jefferson County Project Aff,Ad8-00007 August 2008 Prepared bre Cindi Kunz Wildlife scientist Kunz Biological Consulting 780 Arcadia West Port Townsend, WA 98368 ci_nkunz &olypen.com (360) 385-6300 Kunz Biological Consulting Fitzgerald Habitat Management Plan August 15, 2008 JEROME FITZGERALD PRIORITY HABITAT AND SPECIES MANAGEMENT PLAN August 2008 Jefferson County Project AILA08-00007 INTRODUCTION. At the request of the landowner, Jerome Fitzgerald, a wildlife and critical habitat survey was conducted for the proposed relocation and construction of a recreational vehicle pad and driveway. This existing RV pad will be relocated 27 feet to the north, in order to comply with the Jefferson County Department of Community Development (JCCD). The purpose of the survey is to assess the project vicinity for critical wildlife habitat, to determine if priority species are present, and to develop a habitat management plan for the proposed project construction. The Washington Department of Fish and Wildlife (WDFW) establish priority species and critical habitat. Management guidelines are addressed in the 1991 "Management Recommendations for Washington's Priority Habitats and Species". Priority habitat is defined by the WDFW as a habitat type with unique or significant value to many species. An area classified and mapped as "priority habitat" must meet certain criteria, as defined in the WDFW 1991 management guidelines. Priority species are defined as wildlife species requiring protective measures for their perpetuation due to their population status, their sensitivity to habitat alteration and/or their recreational importance. A priority habitat may contain priority and/or non-priority species. The subject property is located east of Highway 101 and north of the Big Quilcene River (Figure 1). The legal description is T27N, Range 2W, NE V4 of Section 24, block 6, lots 10-12. This report is prepared to meet requirements of the Jefferson County Unified Development Code, Section 3.6.8 (adopted December 18, 2000). This plan is submitted to compensate for a buffer reduction (25%) on this private property along the Big Quilcene River, which requires a 150 -foot restrictive buffer. The subject property is located at approximately river mile 0.6. A weir from the Quilcene Fish Hatchery is located at river mile 2.8. The Puget Sound Chinook salmon and Hood Canal summer -run chum were listed as federally threatened species by the National Marine Fisheries Service on March 24, 1999. The purpose of this plan is to protect the stream from degradation and provide habitat enhancement recommendations for priority species and habitat in this project vicinity. Kant Biological Consulting Fitzgerald Habitat Manap ment Plan Figure 1. Vicinity Map uwn ti�r 'y L�bssh mckabus i r El l i I S 1 I y Lus ti r—� A) Kunz Biological Consulting Fitzgerald Habitat Management Plan August 15, 2008 SITE DESCRIPTION The site is located on 0.35 acres east of Highway 101, just southeast of Quilcene, Washington, at 222 Fremont Avenue (Figure 2). The Big Quilcene River nuns south of the proposed building site adjacent to the landowner's property line of parcel #991200606 (Figure 3). A site visit was conducted on June 30, 2008, which consisted of a visual survey throughout the property and a partial survey of the adjacent property. Photographs taken of the site are shown in Appendix A. The vegetation characteristics of the area and signs of wildlife, if any, were noted throughout the survey. The flow of the Big Quilcene River was moderate. This river is known to change course and flood frequently. Y �dation and CondWans The project site, located on approximately 0.35 acres, is bordered on the east by Linger Longer Road, the north by Fremont Avenue, to the south by Big Quilcene River, and on the west by an undeveloped, wooded property. The vegetation buffer located west and south of the proposed building site is comprised of a mixed stand of predominantly big leaf maple, willow, and red alder, as well as Douglas fir, cedar, and hemlock. The understory is blackberry, fern, willow, and vine maple. The southern property bordering the Big Quilcene River supports the ecological function of protecting riparian areas, as it is comprised of structural layers with a diversity of native plant species. Vegetation located on both sides of the river is well established, which improves water quality by reducing sedimentation and erosion and provides wildlife habitat. The alder and willow trees can withstand periodic inundation of water, which makes them very valuable in the reestablishment of streambanks. These species improve water quality by reducing sedimentation and erosion and provide for wildlife habitat. No trees or shrubs will be removed from the project site, unless they form a hazard. Impacts on wildlife will be minimal due to the lack of large trees suitable for snag - dependent species or raptors. The greenbelt between the river and upland property Protects and generally produces a higher quality riparian habitat for this area. This greenbelt will be improved by the project, as additional plantings will occur when the RV pad is relocated to the north away from the existing berm and Big Quilcene River. PRIORITY HABITAT AND SPECIES A recent Washington Department of Fish and Wildlife database search was reviewed for sensitive or priority wildlife habitat and/or habitat that may occur within the project vicinity (WDFW 2008). This database indicates that WDFW priority species do occur adjacent to this property and are described in the following paragraphs. Kunz Biological Consulting Fitzgerald Habitat Management Plan Figure 2. Quileeme Vicinity Map Kunz Biological Consulting Fitzgerald Habitat Management Plan 663 Le"nd paxekm X Roads Towns lu-4 DXR Stmarm 44, Nal "-f Amy-, is LFA-fth oullhves�-nlld F -I F7 D 663 Kunz Biological Consulting Fitzgerald Habitat Management Plan August 15, 2008 The WDFW has classified the Big Quilcene River as a Type 1 stream, which requires a 150 -foot setback. The WDFW database search indicated that priority anadromous and resident fish are present in the Big Quiicene River. These species include fall Chinook, fall and summer chum, coho salmon, Dolly Vardew bull trout, pink salmon, and winter steelhead. These fish populations and range can be limited by such factors as stream temperatures higher than the normal spawning range, lack of spawning and rearing habitat, high sedimentation of.spawnmg grounds, and/or lack of preferred food items (WDFW 1991). Several bald eagle management areas are located along Quilcene Bay approximately one mile south and southeast of the subject property. Since there will be no tree removal and the management areas are outside the proposed project site, no affect is expected. Additionally, harlequin duck breeding occurs in the project vicinity (WDFW 2008). The harlequin duck is a Washington State Game species that provides year-round recreation for consumptive and non -consumptive users. Low benthic macroinvertebrate biomass may limit the productivity of harlequin ducks (Bengston and Ulfstrand 1971). Human disturbance discourages nesting at traditional sites and thereby decreases productivity (WDFW 2003). The only wildlife sign observed on the project site was that of the Colombian black -tailed deer. Columbian black -tailed deer are also classified by the WDFW as a recreationally important species, which are defined as species with high recreational importance or high Public profile and that are vulnerable to habitat loss or degradation. Wildlife under this classification are game species which are hunted, or otherwise harvested, by the public and are subject to hunting and fishing regulations. HABITAT AGEMENT AND ENHANCEMENT The maintenance of woody debris and riparian vegetation in and adjacent to streams is important in providing wildlife habitat. These shrubs, tree roots, and various groundcovers help to stabilize, anchor and add strength to the soil. The preservation and enhancement of both horizontal and vertical structural diversity can be achieved by the retention and development of shade tolerant understory trees, grasses, and woody shrub Plant species. Plant roots slow and absorb runoff, releasing the water slowly to groundwater and streams and back into the atmosphere. Vegetation also provides nutrients and habitat for fish and wildlife (Murdoch and Cheo 1999). Riparian zones filter pollutantq-from developed areas (Yates 1988)... ; The maintena a iparian vegetatida is essential,'f` ' fish habitat enhall� t by controllingstream ' a' temperatures, providing cover, atid'proiecting apin�a l erosion (WDFW 1991). This vegetative buffer will provide erosion control, an�'-htain natural stream temperatures and the diversity of aquatic invertebrates (Meehan et al.1977, Kuchel 1977,"Newbold et al. 1980). WDFW Management RecommenjabMs for cutthroat trout. and steelhead include the following: Kunz Biological Consulting Fitzgerald Habitat Management Plan August 15, 2008 • Buffer zones of at least the width of the height of the tallest tree should be maintained along stream banks. • Road construction and maintenance activities should be avoided adjacent to streams which provide fish habitat. • In -stream structures such as bridges, piers, boat ramps, or culverts must not impede the natural movement of these fish species. • Waters inhabited by these fish species should not be treated with metal -based herbicides during the period March 1 — June 15. The proposed project is in compliance with all of the above WDFW recommendations. Increased structural layering and diversity in species occur on this property along the southern and western property boundary. All native vegetation will be retained throughout the existing buffer and non-native, noxious vegetation will be removed, if needed. The botanical and structural diversity within this existing buffer will be increased an additional 30 feet in average width by planting a native tree, shrub and grass layer for habitat enhancement from the berm to the existing RV pad (Figure 4). The objective of these plantings is to enhance flora and fauna along the stream buffer zone. Following is a proposed planting list for the project location, which will provide habitat diversity for wildlife: Evergreen huckleberry (Vaccinnium ovatum) Red flowering currant (Ribes sanguigeum) Red osier dogwood (Cornus stolonifera) Rhododendron (Rhododendron macrophyllum) Oregon grape (Mahonia aquafolium) Vine maple (Acer circinatum) Native crabapple (Malas fuscia) A native ground cover or grass seed layer planted within this treelshrub area between the berm and new RV pad location, will be comprised of the following proposed grass species and compositions: Red fescue (Festuca rubra var. commutata) 40% Tufted hairgrass (Dechampsia cespitosa) 30% Annual ryegrass (Lolium multiflorum) 20% Alsike clover (Trifolium hybridum) 10% Kinnikinnick (Arctostaphylos uva-ursr) Kunz Biological Consulting Fitzgerald Habitat Management Plan August 15, 2008 PROPOSED DEVELOPMENT A driveway and RV pad have been previously constructed and are comprised of crushed rock. This existing RV pad will be relocated 27 feet to the north, in order to comply with the JCCD. The revised site plan (Figure 4) indicates the 25% buffer reduction, thus Providing a distance of 115 feet measured horizontally from the Ordinary High Water Mark (OHWM) of the Big Quilcene River. This designated building site is located on the southeastern portion of the property, as indicated in the photos (Appendix A). The proposed relocation of the RV pad will allow for a total vegetated setback buffer of approximately 115 feet. The size of the RV pad is approximately 2000 square feet and will be comprised of crushed rock. Recommendations for stoimwater management and erosion control will provide maximum protection to prevent stormwater from entering the adjacent salmon -bearing river. Erosion controls are presented in "Minimization of Construction Impacts". Impacts on wildlife will be minimal due to the retention of existing alder and willow trees along the Big Quilcene River and lack of habitat in the upland and adjacent area. All construction activities that may affect the water quality parameters will be monitored. The implementation of the proposed habitat enhancements will ensure an improvement in botanical and structural diversity. The channel of flowing water is approximately 85-90 feet from the existing RV pad. The existing RV pad will be relocated 27 feet to the north in order to increase this vegetative buffer. A man-made berm or dike occurs just north of the river, approximately 60 feet from the OHW mark. This berm had been previously constructed to provide delineation and riparian zone protection. The area between the proposed RV pad building site and the river consists of a small, narrow buffer of trees and shrubs (approximately 60 feet in width from the river to the berm) and an additional, unvegetated buffer approximately 30 in width located south of the existing RV pad to the berm. This portion of the buffer will be planted with small trees and shrubs. With the relocation of the pad, the additional 30 feet of buffer will be available for planting of the native grass layer. The proposed planting plan will increase the vegetated buffer from + 90 feet in width to + 115 feet in width. The native tree, shrub and grass plantings will occur along the southern boundary adjacent to the building site. MINIMIZATION OF CONSTRUCTION IMPACTS Erosion and Sediment Control • No materials will be stockpiled near the stream. Excavated and imported material, such as crushed gravel, will be stockpiled outside the buffer in the upland locations and will be protected with plastic sheeting during construction to prevent runoff to the stream area_ Kunz Biological Consulting Fitzgerald Habitat Management Plan August 15, 2048 • Areas of exposed soil will be planted with the above listed vegetation or covered with a minimum of 2 inches of straw within 7 days of disturbance. • Temporary erosion control measures such as sediment barriers and mulching will be used as necessary after initial disturbance of the soil. These sediment barriers will be installed along the edge of the construction area to contain sediments. These temporary erosion controls will be properly maintained throughout the construction (on a daily basis) until replaced by permanent erosion controls or until this low impact construction is complete. • Upland drainage will be directed away from the river channel and filtered through a grassy swale or sediment trap to prevent erosion or impact to the Big Quilcene River. • Construction equipment will have drip pans to contain potential leaks from equipment. Vehicle fueling will be conducted away from the project site, which is sufficient distance upland from the creek. Lh er Protection • Installation of temporary signage during construction in order to define buffer. • Storage and preparation of materials will not be placed within buffers during construction. • Existing woody vegetation, which serves as a physical separation between the river and residence within the buffer, will be retained. Preservation of all existing trees and shrubs, as well as the above listed proposed vegetation plantings within the buffer area, is critical in order to provide river protection and enhancement. • To increase plant community diversity within this buffer (upland from the alder stand), other native trees and shrubs will be planted. This improved plant community will promote diversity in animal populations, as well. • Minimal clearing for limited river access or view enhancement will be allowed as approved by the Critical Areas Administrator. • To verify compliance with this plan, the project will be inspected during construction and one year after construction completion. CONCLUSIONS This Priority Habitat and Species Management Plan has been prepared to meet the requirements of an Administrative Reduction or Reasonable Economic Use Variance as defined by the Jefferson County Community Development department. This project site adjacent to the Big Quilcene River has a natural and established buffer that provides — y re non f Ave'.., 7 4 O 6� fi z � a � Q+ p. �, ireeShreP� �ac� i tb j a h f� ww• Or, IL �, ireeShreP� �ac� f� ww• Or, LA vel - Kunz Biological Consultiag Fitzgerald Habitat Management Plan August 15, 2008 riverbank protection from erosion. Additionally, this riparian zone provides cover and habitat and serves as a wildlife corridor along the river. . Site surveys and database research have indicated that them are priority Habitat and species located in the immediate project vicinity. However, the proposed plantings of coniferous and decidudus trees, shrubs, a Dd grasses will aid in providing a more diverse habitat for wildlife within the proposed project vicinity. The primary purpose of this plan is to further enhance; the priority babit$t adjacent to the propos project and to minimize any construction impacts. Compliance vath this plan will be verified through site inspecnons both during and after constxvocdon. Bengston, S., and S. Ulf rand. 1971. Food resources and breeding f vquency of the harlequim duck, Rxibfonkm histrionkm, in Iceland. Qikos 22:235-239. Ku,chei, C.R. 1977. Some aspects of the behavior and ecology of harlequin ducks in Glacier National Pads, Montana. Thesis, University of Montana, Missoula, Montana. Mechan, W. R., F. J. Swanson, and J. R. Sedeil. 1971. Influences of riparian vegetation on aquatic ecosystow with particular reference to salmonid fishes and their food supply. Pp. 137-14S in Proceed. Symp. On the Importance, preservation and Management of the Riparian Habitat. July 9,1977, Tucson, AZ. Mut-doch, Tom and Martha Cheo. 1999. StmamkeeW's Field Guide. Adopt A -Stream Foundation, Everett, WA. Newbold, J. D., D. C. Erb, and K_ B. R by. 1977. Effect of logging on macroinvertebmtes in streams with and without buffer strips. 1. Fish Aquat. Sci., 37:1076-10$5. WDFW. 1991. Management Recpmmendatians for Washington's Pria * Habitats and Species. Elizabeth Rodrick and Ruth Milner, ed. Wf9FW. 2009. Washington Department of Fish and Wildlife Habitat and Species Database Report for T27N R02W Section 24. WDFW. 2003. Management Recommendations for Washington's Priority Species, Volume IV: Birds -- Harlequin Duck. Prepared by Jeffrey C: Lewis and Don Il zwp. Wchiihm www.wa.ggy&dfw/babtphs/voL4aMLlduck.htm. Yates, Steve. 1988. Adopting A Stream: A Northwest Handbook. University of Washington Press, Seattle, WA. Kunz Biological Consulting Fitqgecdd Habitat i►aagement Plan August 15, 2009 " a► PROJECT PHOTOS Driveway parallels Linger Longer Rd Big Quilcene R. -- property to right Driveway to RV Pad r Existing pad facing north Esisting RV Pad and berm New Pad location Article Ill. Critical Aquifer Recharge Areas 18.22.100 Classification. Critical aquifer recharge areas are naturally susceptible due to the existence of permeable soils or a seawater wedge in coastline aquifers. Certain overlying land uses can lead to water quality and/or quantity degradation. The following classifications define critical aquifer recharge areas: (1) Susceptible aquifer recharge areas are those with geologic and hydrologic conditions that promote rapid infiltration of recharge waters to groundwater aquifers. For the purposes of this article, unless otherwise determined by preparation of an aquifer recharge area report authorized under this article, the following geologic units, as identified from available State of Washington Department of Natural Resources geologic mapping, define susceptible aquifer recharge areas for east Jefferson County: (a) Alluvial fans (Ha); (b) Artificial fill (Hx); (c) Beach sand and gravel (Hb); (d) Dune sand NO (e) Floodplain alluvium (Hf); (f) Vashon recessional outwash in deltas and alluvial fans (Vrd); (g) Vashon recessional outwash in melt water channels (Vro); (h) Vashon ice contact stratified drift (Vi); (i) Vashon ablation till (Vat); 0) Vashon advance outwash (Vao); (k) Whidbey formation (Pw); and (1) Pre-Vashon stratified drift (Py). (2) Those areas meeting the requirements of susceptible aquifer recharge areas (above) and which are overlain by the following land uses as identified in this code are subject to the provisions of the protection standards in this article: (a) All industrial land uses; (b) All commercial uses; (c) All rural residential land uses: (i) Requiring a discretionary use or conditional use permit; or (ii) With nonconforming uses that would otherwise require a discretionary use or conditional use permit; (d) Unsewered planned rural residential developments; (e) Unsewered residential development with gross densities greater than one unit per acre. (3) Special aquifer recharge protection areas include: (a) Sole -source aquifers designated Agency in accordance with the Safe Law 93-523); by the U.S. Environmental Protection Drinking Water Act of 1974 (Public (b) Special protection areas designated by the Washington Department of Ecology under Chapter' WAC; (c) Wellhead protection areas determined in accordance with delineation methodologies specified by the Washington Department of Health under authority of Chapter WAC; (d) Groundwater management areas designated by the Washington Department of Ecology in cooperation with local government under Chapter WAC. (4) Seawater intrusion protection zones (SIPZ) are aquifers and land overlying aquifers with some degree of vulnerability to seawater intrusion. SIPZ are defined either by proximity to marine shoreline or by proximity to groundwater sources that have demonstrated high chloride readings. All islands and land area within one-quarter mile of marine shorelines and associated aquifers together compose the coastal SIPZ. Additionally, areas within 1,000 feet of a groundwater source with a history of chloride analyses above 100 milligrams per liter (mg/L) are categorized as either at risk (between 100 mg/L and 200 mg/L) or high risk (over 200 mg/L) SIPZ. Individual groundwater sources with a history of chloride analyses above 200 mg/L shall be considered "sea -salt water intrusion areas," which are among the "sources or potential sources of contamination" listed in WAC 173-160-171, implementing code for the Water Well Construction Act. (a) In some cases, high chloride readings may be indicative of connate seawater (i.e., relic seawater in aquifers as opposed to active seawater intrusion). When best available science or a hydrogeologic assessment demonstrate that high chloride readings in a particular area are due to connate seawater, the area in question shall not be considered an at risk or high risk SIPZ. When the status of an area is in question, the UDC administrator is responsible for making the determination based upon recommendation from county department of health and human services. [Ord. 3-08 § 1 ] 18.22.110 Designation. Jefferson County shall prepare and exhibit dated critical aquifer recharge area maps which demonstrate the approximate distribution of the susceptible aquifer recharge areas, special aquifer recharge protection areas, and seawater intrusion protection zones. The critical aquifer recharge area maps shall be periodically revised, modified, and updated to reflect additional information. [Ord. 3-08 § 1] 18.22.120 Applicability. (1) The following land use activities are considered high impact land uses due to the probability and/or potential magnitude of their adverse effects on groundwater and shall be prohibited in susceptible aquifer recharge areas and special aquifer recharge protection areas. In all other areas of the county outside of susceptible aquifer recharge areas and special aquifer recharge protection areas, these activities shall require an aquifer recharge area report pursuant to this article: (a) Chemical manufacturing and reprocessing; (b) Creosote/asphalt manufacturing or treatment (except that asphalt batch plants may be permitted in susceptible aquifer recharge areas only if such areas lie outside of special aquifer recharge protection areas and only if best management practices are implemented pursuant to JCC 18.20.240 (2)(h)(iv) and 18.30.170 and an accepted aquifer recharge area report); (c) Electroplating and metal coating activities; (d) Hazardous waste treatment, storage and disposal facilities; (e) Petroleum product refinement and reprocessing; (f) Storage tanks for petroleum products or other hazardous substances, except with a conditional discretionary use "C(d)" permit approval; (g) Recycling facilities as defined in this code; (h) Solid waste landfills, (i) Waste piles as defined in Chapter 173-304 WAC; (j) Wood and wood products preserving; (k) Storage and primary electrical battery processing and reprocessing. (2) All other land uses shall be subject to the protection standards contained in this article and mitigating conditions included with an aquifer recharge area report, where applicable. (3) Seawater Intrusion Protection Zones. Marine shorelines and islands are susceptible to a condition that is known as seawater intrusion. Seawater intrusion is a condition in which the saltwater/freshwater interface in an aquifer moves inland so that wells drilled on upland areas cannot obtain freshwater suitable for public consumption without significant additional treatment and cost. Maintaining a stable balance in the saltwater/freshwater interface is primarily a function of the rate of aquifer recharge (primarily through rainfall) and the rate of groundwater withdrawals (primarily through wells). New development, redevelopment, and land use activities on islands and in close proximity to marine shorelines in particular should be developed in such a manner to maximize aquifer recharge and maintain the saltwater/freshwater balance to the maximum extent possible. [Ord. 4-10 § 1 (Exh. B); Ord. 3-08 § 1] 18.22.130 Protection standards. (1) General. The following protection standards shall apply to land use activities in susceptible aquifer recharge areas and special aquifer protection areas, and when specified in seawater intrusion protection zones, unless mitigating conditions have been identified in a critical aquifer recharge report that has been prepared pursuant to this article. (2) Stormwater Disposal. (a) In all critical aquifer recharge areas, stormwater runoff shall be controlled and treated in accordance with best management practices and facility design standards as identified and defined in the Stormwater Management Manual for the Puget Sound Basin, as amended, and the stormwater provisions contained in Chapter 18.30 JCC. (b) To help prevent seawater from intruding landward into underground aquifers, all new development activity on Marrowstone Island, Indian Island and within one-quarter mile of any marine shoreline shall be required to infiltrate all stormwater runoff on site. The administrator will consider requests for exceptions to this policy on a case-by-case basis. This provision is interpreted as establishing a hierarchy in which the first and best alternative is on-site infiltration using drywells or other methods; the second best alternative is direct discharge into marine waters through a stormwater tightline. In order to utilize the least preferred alternative, which is considered an exception to the policy, applicants. must demonstrate through a geotechnical or similar report prepared by a licensed professional that both on-site infiltration and upland off-site disposal are not practicable or feasible. The report must include cost figures for comparison. (3) On -Site Sewage Disposal. (a) All land uses identified in JCC 18.22.120 and special aquifer recharge protection areas that are also classified as susceptible aquifer recharge areas (as defined in this article) shall be designated areas of special concern pursuant to WAC Title 246. (i) Such designation shall identify minimum land area and best management practices for nitrogen removal as design parameters necessary for the protection of public health and groundwater quality. (ii) Best management practices (BMPs) shall be adopted by action of the board of health. (b) As new information becomes available that would classify an area as a special aquifer recharge protection area or an area of special concern under this article, said area may be designated as such by the county. Any additional areas of special concern designated through this process shall receive the same protections identified in subsection (3)(a) of this section. (4) Golf Courses and Other Turf Cultivation. In all critical aquifer recharge areas, golf courses shall be developed and operated in a manner consistent with the most current edition of "Best Management Practices for Golf Course Development and Operation," King County department of development and environmental services. Recreational and institutional facilities (e.g., parks and schools) with extensive areas of cultivated turf shall be operated in a manner consistent with portions of the aforementioned best management practices pertaining to fertilizer and pesticide use, storage, and disposal. In seawater intrusion protection zones, golf courses and other turf cultivation using groundwater for irrigation shall be prohibited, unless the water source is located outside of seawater intrusion protection zones or in an approved public water supply. (5) Above -Ground Storage and Underground Storage Tanks. Above -ground and underground storage tanks shall be fabricated, constructed, installed, used and operated in a manner which prevents the release of hazardous substances to the ground or groundwater and be consistent with the Department of Ecology's standards for construction and installation under Chapter 173-360 WAC. Above -ground storage tanks intended to hold or store hazardous substances shall be provided with an impervious containment area, equivalent to or greater than 100 percent of the tank volume, enclosing and underlying the tank; or ensure that other measures are undertaken as prescribed by the Uniform Fire Code which provide an equivalent measure of protection. Underground storage tanks intended to store hazardous substances shall provide an impervious tertiary containment area underlying the tanks or ensure that other measures are undertaken which provide an equivalent measure of protection. Application for installation of underground storage tanks not prohibited under this article, or application for a conditional discretionary "C(d)" use permit approval, shall be accompanied by an aquifer recharge report pursuant to this article. (6) Mining and Quarrying. Mining and quarrying performance standards containing groundwater protection best management practices pertaining to operation, closure, and the operation of gravel screening, gravel crushing, cement concrete batch plants, and asphalt concrete batch plants, where allowed, are contained in Chapters 18.20 and JCC. (7) Hazardous Materials. Land use activities that generate hazardous waste, which are not prohibited outright under this code, and which are conditionally exempt from regulation by the Washington Department of Ecology under WAC 173-303-100, or which use, store, or handle hazardous substances, shall be required to prepare and submit a hazardous materials management plan that demonstrates that the development will not have an adverse impact on groundwater quality. The facility owner must update the hazardous materials management plan annually. (8) Well Drilling, Land Division, and Building Permits in Seawater Intrusion Protection Zones. (a) Well Drilling. The Washington State Department of Ecology regulates well drilling pursuant to the Water Well Construction Act. Proposed wells, including those exempt from permitting requirements, must be sited at least 100 feet from "known or potential sources of contamination," which include "sea -salt water intrusion areas" (WAC 178-160-171), unless a variance is obtained from Ecology per WAC 173-160-106- (b) Subdivisions. Applications for land division (Chapter 18.35 JCC) must include specific and conclusive proof of adequate supplies of potable water through a qualifying hydrogeologic assessment (relevant components of an aquifer recharge area report per JCC 18.22.400) that demonstrates that the creation of new lots and corresponding use of water will not impact the subject aquifer such that water quality is degraded by seawater intrusion. (i) Marrowstone Island Subdivision Moratorium. Due to documented seawater intrusion on Marrowstone Island and the existence of undeveloped lots of record, Jefferson County has imposed a moratorium on additional land divisions on the island until such time as public water is available or it is demonstrated through the well monitoring program that groundwater quality is not degrading due to seawater intrusion. (c) Building Permits. (i) Evidence of potable water may be an individual well, connection to a public water system, or an alternative system. Whatever method is selected, the regulatory and operational standards for that method must be met, including Jefferson County health codes and the Washington Administrative Code. Pursuant to Section 4 of the State "Guidelines for Determining Water Availability for New Buildings" (Ecology Publication No. 93-27), investigation and identification of well interference problems and impairment to senior rights is the responsibility of the Washington Department of Ecology. If the possibility of a problem is suspected, the local permitting authority should contact Ecology. (ii) All types of building permits that require proof of potable water use are subject to this policy, specifically building permits for new single- family residences (SFRs) or other structures with plumbing that are not associated with an existing SFR (i.e., shops or garages with a bathroom). (d) Voluntary and mandatory measures of the Jefferson County seawater intrusion policy apply to development proposals within the coastal, at risk, and high risk SIPZ, and upon Marrowstone Island, in the following manner, in addition to all existing applicable health codes: (i) Coastal SIPZ. (A) Voluntary Actions. (1) Water conservation measures; (II) Ongoing well monitoring for chloride concentration; (III) Submittal of data to county. (B) Mandatory Actions. (1) For proof of potable water on a building permit application, applicant must utilize DOH -approved public water system if available; (11) If public water is unavailable, an individual well may be used as proof of potable water subject to the following requirements: 1. Chloride concentration of a laboratory -certified well water sample submitted with building permit application; 2. Installation of source -totalizing meter (flow). (III) If public water is unavailable, a qualifying alternative system may be used as proof of potable water. (ii) At Risk SIPZ. (A) Voluntary Actions. (1) Water conservation measures. (B) Mandatory Actions. (1) For proof of potable water on a building permit application, applicant must utilize DOH -approved public water system if available; (II) If public water is unavailable, an individual well may be used as proof of potable water subject to the following requirements: 1. Chloride concentration of a laboratory -certified well water sample submitted with building permit application; 2. Installation of a source -totalizing meter (flow); 3. Ongoing well monitoring for chloride concentration; 4. Submittal of flow and chloride data to the county per monitoring program; (III) If public water is unavailable, a qualifying alternative system may be used as proof of potable water, (iii) High Risk SIPZ. (A) Mandatory Actions. (1) Water conservation measures (per list maintained by UDC administrator); (11) For proof of potable water on a building permit application, applicant must utilize DOH -approved public water system if available; (III) If public water is unavailable, an individual well may only be used as proof of potable water subject to the following requirements: 1. Variance from WAC Title 173 standards granted by Ecology per WAC 173-160-106 for a new groundwater well within 100 feet of a sea -salt water intrusion area per WAC 173-160-171 (i.e., within 100 feet of a groundwater source showing chloride concentrations above 200 mg/L or within 100 feet of the marine shoreline); or for an existing groundwater well not subject to an Ecology variance, applicant must provide a hydrogeologic assessment (relevant components of an aquifer recharge area report per JCC 18.22.400), which shall be transmitted to Ecology for review, demonstrating that use of the well does not cause any detrimental interference with existing water rights and is not detrimental to the public interest; 2. Chloride concentration of a laboratory -certified well water sample submitted with building permit application; 3. If chloride concentration exceeds 250 mg/L in a water sample submitted for a building permit, then the property owner shall be required to record a restrictive covenant that indicates a chloride reading exceeded the U.S. Environmental Protection Agency secondary standard (250 mg/L) under the National Secondary Drinking Water Regulations; 4. Installation of a source -totalizing meter flow; 5. Ongoing well monitoring for chloride concentration; 6. Submittal of flow and chloride data to the county per monitoring program; (IV) If public water is unavailable, a qualifying alternative system may be used as proof of potable water. (iv) Marrowstone Island. In addition to all voluntary and mandatory actions associated with the applicable SIPZ as described above, the following measures apply to all development proposals on Marrowstone Island that include groundwater withdrawal: (A) Voluntary Actions. (1) Installation of timers together with new well pump installations to enable pump use limitation to low demand times. (B) Mandatory Actions. (1) The use of a well proposed as proof of potable water for a new building permit shall be conditioned through the building permit such that enrollment in a county -sponsored monitoring program is required, including periodic submittal of flow and chloride data as determined by the county. (11) Installation of a source -totalizing meter (flow). (III) Installation of a variable speed pump, controllable from the surface, in order to enable reduction of withdrawal rate, as may be necessary. (IV) Installation of a 1,000 -gallon minimum storage tank that shall conform to ANSUNSF Standard 61. (9) Mitigating Conditions. The administrator may require additional mitigating conditions, as needed, to provide protection to all critical aquifer recharge areas to ensure that the subject land or water use action will not pose a risk of significant adverse groundwater quality impacts. The determination of significant adverse groundwater quality impacts will be based on the anti - degradation policy included in Chapter WAC. (10) Authority for Denial. In all critical aquifer recharge areas, the administrator may deny approval if the protection standards contained herein or added mitigating conditions cannot prevent significant adverse groundwater quality impacts. [Ord. 4-10 § 1 (Exh. B); Ord. 3-08 § 1] 18.22.135 Adaptive management. As part of the periodic review and amendment to Jefferson County's implementing regulations required under RCW 36.70A.130(4), Jefferson County shall review the need for and implement an adaptive management program for groundwater resources in certain discrete geographic areas of the county, consistent with the provisions of WAC 365-195-920(2). [Ord. 3-08 § 1 ] 4WSH&H VALUATION AND CONSULTING 6419 Lakewood Drive West, Tacoma, WA 98467 p. 253.564.3230 1 f. 253.564.3143