Birdville ISD Purchasing Department

Transcription

1 Birdville ISD Purchasing Department DATE: October 13, 2017 SUBJECT: Addendum 1 for Bid # Sale of Real Property The following items clarify the plans and specifications and shall become a part of the contract documents. Persons wishing to submit # Sale of Real Property will have until 2:00 PM CST, November 3, 2017 to submit their proposal in writing to Shelley freeman in the Purchasing Department at 3124 Carson Street, Haltom City, TX Only sealed bids will be accepted. Faxed, ed and/or late bids will not be accepted for any reason. Responses to questions received: 1. Is there an existing flyer, survey, or inspection reports? If so, please forward it to me We only have an appraisal at this time. Please see the attached document. 2. Is the expectation that the "bidder" be the purchaser? Or, should the bidder be responsible to secure a purchaser? The bidder would be expected to be the purchaser. 3. Is this a "cash" purchase, or is financing allowed? Cash purchase only. 4. Is there a preferred title company to close at? Or, can bidder choose title company? The District will be selecting the title company. 5. Why is the Birdville ISD Selling? The Board of Trustees has determined this property is surplus and will not be needed for a future District purpose. 6. May I take some pictures of property and use for marketing? No. Please sign and acknowledge Addendum 1. Return with the proposal or under separate sealed envelope. Company Name Company Representative Printed Date Company Representative Signed Bids/Proposals can be accessed by visiting the Public Purchase web site at or the Birdville ISD web site at

2 AN APPRAISAL REPORT OF: VACANT LAND LOCATED AT: 6980 Baker Boulevard, Richland Hills, Tarrant County, Texas Date of Report: September 11, 2017 Prepared By: APPRAISAL SOURCE, INC. Jonathan Archer, MAI 7080 Camp Bowie Boulevard Fort Worth, Texas Prepared For: BIRDVILLE ISD 6125 East Belknap Haltom City, Texas ASI File #: 17c2810

3 September 11, 2017 Ms. Katie Bowman Birdville ISD 6125 East Belknap Haltom City, Texas Re: An Appraisal Report of vacant land located at 6980 Baker Boulevard, Richland Hills, Tarrant County, Texas Dear Ms. Bowman, At your request, I have completed an appraisal report of the above referenced property. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser s file. The depth of discussion contained in this report is specific to the needs of the client and solely for the intended use stated below. The appraiser is not responsible for unauthorized use of this report. This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. This appraisal and report have been prepared in conformance with the requirements of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA); the Interagency Appraisal and Evaluation Guidelines; and the Uniform Standards of Professional Practice (USPAP). The appraisal will be utilized by Birdville ISD to assist with a potential sale of surplus land. Jonathan Archer, MAI has inspected the subject property and the surrounding neighborhood. All data gathered is believed to be from reliable sources Camp Bowie Boulevard Fort Worth, TX Phone Fax

4 Ms. Bowman Birdville ISD September 11, 2017 Page 2 The subject property contains acres of vacant land. A complete description of the subject is included within this report. I certify that I have no present or contemplated future interest in the subject property. The appraiser has not performed any services regarding the subject property in the three years prior to accepting this assignment. The following Extraordinary Assumptions/Hypothetical Conditions apply: 1. None. It is my conclusion subject to the Assumptions and Limiting Conditions that the market value of the fee simple interest of the subject property as of August 1, 2017, is measured in the amount of: EIGHTY THOUSAND DOLLARS $80,000 Respectfully submitted, Appraisal Source, Inc. Jonathan Archer, MAI Certified General Number TX G

5 TABLE OF CONTENTS Summary of Salient Facts... 5 Intended Use and Users of the Appraisal... 5 Interests Valued... 6 Definition of Market Value... 6 Purpose of the Appraisal... 6 Effective Date... 6 Date of the Report... 7 Ownership History... 7 Exposure Time and Marketing Period... 7 Scope of Work... 9 Neighborhood Analysis Location Map Tax Map Flood Map Site Analysis Zoning Assessment and Taxes Highest and Best Use The Appraisal Process Valuation as it Relates to the Subject Value Conclusion Certification Addenda... 40

6 Summary of Salient Facts Subject: Legal Description: GENERAL Vacant Land located at 6980 Baker Boulevard, Richland Hills, Tarrant County, Texas Lot 2A out of Matthews Subdivision Date of Report: September 11, 2017 Date Of Inspection: August 1, 2017 Date of Value: Highest and Best Use of the Site As Though Vacant : Highest and Best Use As Improved : August 1, 2017 As Is The highest and best use of the subject ''as though vacant'' is to develop with a commercial use or sell to an end-user. The subject is vacant land and a highest and best use of the subject ''as improved'' is not warranted. VALUE INDICATIONS Total Per Sq. Ft. As Is Cost Approach: N/A N/A Sales Comparison Approach: $80,000 $2.82 Income Capitalization Approach: N/A N/A Final Value Estimate As Is $80,000 $2.82 Intended Use and Users of the Appraisal The Appraiser has been engaged by the Client (Birdville ISD) to provide an opinion of the market value of the fee simple interest of the subject as is for internal purposes relating to a potential sale. Any unauthorized use of the Appraisal will render the Appraisal null and void and of no force or effect. The Client and intended user of this report is Birdville ISD. ASI File #: 17c2810 Appraisal Report - Page 5

7 Interests Valued The term fee simple is defined as: Estate in which the owner has absolute ownership unencumbered by any other interest or estate. Definition of Market Value The Federal Reserve System, 12CFR, Subpart G, Section f, defines market value as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and the seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1) Buyer and seller are typically motivated; 2) Both parties are well informed or well advised, and acting in what they consider their own best interest; 3) A reasonable time is allowed for exposure in the open market; 4) Payment is made in terms of cash in U.S. Dollars or in terms of financial arrangements comparable thereto; and 5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale (12 CFP FIRREA). Purpose of the Appraisal The purpose of this appraisal is to estimate the market value of the fee simple interest of the subject property as is as of the date of inspection, or August 1, Effective Date The effective date of the as is value estimate is August 1, 2017, which was the date the property was physically inspected. ASI File #: 17c2810 Appraisal Report - Page 6

8 Date of the Report The date of this report is September 11, Ownership History According to the Tarrant Appraisal District, the listed owners of the subject are Birdville ISD. This entity has owned the subject in excess of three years. The subject property is not currently listed for sale nor are there any contracts pending. The appraiser is unaware of any unsolicited offers. To the appraiser s knowledge, there have been no transactions related to the subject property in the three years prior to the effective date of this appraisal. Competency The appraisers involved in this assignment have considerable experience appraising vacant land similar to the subject in the Dallas/Fort Worth market area. The appraisers have adequate knowledge of the property type, geographical location, and analytical methods necessary to comply with the competency requirements of USPAP. Exposure Time and Marketing Period The term exposure time is defined as: The time a property remains on the market. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. The term marketing period is defined as: The time it takes an interest in real property to sell on the market subsequent to the date of an appraisal. Reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal. Marketing times are future time periods relative to the effective date of the report while exposure periods reflect the estimated time the property would have been on the market prior to the effective date if it were sold on the effective date. Marketing and exposure times vary based on the type of property, the inventory of competing properties, and the timing in a real estate cycle. Limited market or special purpose properties could have greater marketing times required to achieve a sale. In a non-expansion market, development lots may require extended marketing periods. Lack of capital and lack of financing ASI File #: 17c2810 Appraisal Report - Page 7

9 can also influence marketing times. When alternative investments such as stocks or bonds are earning large profits, real estate could experience a lack of capital for investment. Vacant Land - Marketing and Exposure Times Vacant land tends to pose unique challenges, particularly if the highest and best use of the land is for speculative development. The subject is located in the Mid-Cities submarket. The subject is currently vacant land and is considered to be a desirable site for development. Marketing times for vacant land within the subject neighborhood has ranged from three to twenty-four months. Based on the size, utility, location, and overall development potential of the subject site, we have estimated a marketing and exposure time of six to twelve months. ASI File #: 17c2810 Appraisal Report - Page 8

10 Scope of Work Report Type: Inspection: Market Area and Analysis of Market Conditions: Analysis of Comparable Data: Highest and Best Use Analysis: SCOPE OF WORK This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. Jonathan Archer inspected the subject property and the surrounding neighborhood. Photographs of the subject have been provided in the Addenda. A complete analysis of market conditions has been made. The appraiser maintains and has access to comprehensive databases for this market area and has reviewed the market for sales and listings relevant to this analysis. Information on comparable land sales has been gathered by researching local deed records through LoopNet, CoStar, MLS, and various other sources. In the course of the investigation, a physical inspection of the comparable sales was made. Because Texas is not a full-disclosure state, sale prices must be obtained from grantors, grantees, brokers, lenders, other people involved in the transaction, or other appraisers when the information is believed to be reliable. Several brokers and investors were interviewed not only as prospective sales leads, but as market participants which provide direction and insight to the current market cycle. The comparable sales were analyzed and adjustments were applied for the value-related differences between the comparables and the subject property. A complete as vacant highest and best use analysis for the subject has been made. Legally permissible, physically possible, and financially feasible uses were considered, and the maximally productive use was concluded. ASI File #: 17c2810 Appraisal Report - Page 9

11 Valuation Analyses Cost Approach: Sales Comparison Approach: Income Capitalization Approach: The Cost Approach was not developed because the subject is vacant land. The Sales Comparison Approach was developed because there is adequate data to develop a value estimate and this approach reflects market behavior for this property type. The Income Capitalization Approach was not developed because the subject is vacant land. ASI File #: 17c2810 Appraisal Report - Page 10

12 Neighborhood Analysis A neighborhood is a group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises. The neighborhood analysis is the objective analysis of observable and/or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property values; focuses on four sets of considerations that influence value; social, economic, governmental, and environmental factors. (Appraisal Institute, The Dictionary of Real Estate Appraisal, Fourth Edition, 2015, pp. 156.) Location: Access: This subject neighborhood is located in central Tarrant County, within the city limits of Fort Worth and Haltom City. It is located immediately northeast of the Fort Worth CBD and 12 miles southwest of the Dallas-Fort Worth International Airport. Access to the subject neighborhood is considered good. SH121 links the subject neighborhood with most portions of Tarrant County. Additionally, SH 121 connects with IH 820 on the east side of the subject neighborhood. IH 820 circumnavigates the Metroplex and provides linkage to all major components of the freeway system. ASI File #: 17c2810 Appraisal Report - Page 11

13 Neighborhood Boundaries: Composition: Employment Base: School District: Police and Fire Protection: Convenience to Support Facilities: Utilities: Neighborhood Growth: The subject neighborhood boundaries can best be described as Beach Street to the west, the Trinity Railway Express rail line to the south, IH 820 to the east and north. The subject neighborhood is approximately 80% developed, consisting of residential, commercial and industrial uses. Most of the developments along SH121 consist of industrial uses that were constructed from the 1950 s to 1970 s. The majority of singlefamily homes are in the $125,000-$200,000 range. Because of the access to the Fort Worth Central Business District and convenient access to most parts of the Metroplex, employment is highly diversified. The subject property is located in the Birdville Independent School District, which has good reputation throughout the Metroplex. The Birdville ISD consists of 21 elementary schools, seven middle schools, four high schools and one career and technology center. Birdville ISD is the fifth-largest school district in Northeast Tarrant County, with more than 24,300 students. The district s 33 campuses serve the communities of Richland Hills, Hurst, Haltom City, North Richland Hills, Watauga, Colleyville, and Fort Worth. Police and fire protection within the subject neighborhood are adequately provided by the city and the county. Access to employment centers, schools, churches, shopping, recreational facilities, and community facilities is all convenient through the network of thoroughfares in the subject neighborhood. SH 121 and IH 820 provide access throughout the Tarrant County area as well as to the Dallas/Fort Worth International Airport. All public utilities are available within the subject neighborhood at various locations. The city of Richland Hills contracts with the city of Fort Worth to provide water and sanitary sewer, Oncor Electric provides electricity, Texas Gas provides natural gas, and AT&T provides telephone service to the subject site. A demographic profile of the subject neighborhood, including population, households, and income data is presented in the following table. ASI File #: 17c2810 Appraisal Report - Page 12

14 DEMOGRAPHIC SNAPSHOT Neighborhood Boundaries Population 2021 Projection 28, Estimate 27, Census 25,250 Growth % Growth % Households 2021 Projection 11, Estimate 10, Census 9,770 Growth % Growth % 2016 Median Household Income $58, Median Household Income $54, Per Capita Income $78, Per Capita Income $72,963 Source: Site To Do Business The population of the subject neighborhood has experienced growth over the last six years. The area is projected to grow over the next five years. Topography: Summary: The topography within the subject neighborhood can best be described as generally level and open with a few scattered trees. Little Fossil Creek runs through the central portion of the neighborhood and the Trinity River runs just south of the neighborhood. There is some flood affected areas associated with the creek.. In summary, the subject neighborhood has a centralized location within the Metroplex immediately east of the Fort Worth Central Business District and approximately 12 miles southwest of the Dallas-Fort Worth International Airport. The subject neighborhood is approximately 80% built-up with a combination of uses. Access to all support facilities is readily available, and all community services are available. No unfavorable factors were noted in the subject neighborhood. The overall outlook for the subject neighborhood is good due to its proximity to the Fort Worth CBD and Metroplex freeway system. ASI File #: 17c2810 Appraisal Report - Page 13

15 Location Map ASI File #: 17c2810 Appraisal Report - Page 14

16 Tax Map ASI File #: 17c2810 Appraisal Report - Page 15

17 Plat Map ASI File #: 17c2810 Appraisal Report - Page 16

18 Flood Map ASI File #: 17c2810 Appraisal Report - Page 17

19 Site Analysis A site analysis is a careful study of factual data in relation to the market area characteristics that create, enhance, or detract from the utility and marketability of specific land or a given site as compared with other sites that it competes with. One primary objective of site analysis is to gather data that will indicate the highest and best use of the site as though vacant so that the land value for a specific use can be estimated (Appraisal Institute, The Appraisal of Real Estate, Fourteenth Edition, 2013, pp. 190). Location: The subject is located along the south side of Baker Boulevard (SH 183) at the terminus of Latham Drive and Scruggs Park Drive, approximately 1.25 miles east of IH 820. The municipal address of the subject property is 6908 Baker Boulevard, Richland Hills, Texas. Size: Shape: The subject contains acres or 28,324 square feet of land based on the plat provided with the title documentation. A current on-the-ground survey was not available. The shape of the subject is best described as basically rectangular. The reader s attention is directed to the aerial photograph above for a graphic ASI File #: 17c2810 Appraisal Report - Page 18

20 configuration of the site. Access/Frontage: Easements/ Encroachments: Utilities: Topography: Environmental Considerations: The subject site includes frontage along Baker Boulevard (SH 183) and Scruggs Drive. Baker Boulevard (SH 183) is a four-lane, two-way, concrete paved primary roadway in the subject neighborhood with open ditch drainage and a landscaped median in front of the subject site. Scruggs Drive is a two-lane secondary thoroughfare with concrete curbs and gutters. During certain hours, Scruggs Drive is limited to one-way due to the adjacent school facility. The access/frontage of the subject is considered to be good. No adverse easements or encroachments were noted on inspection. However, a title policy was not provided for review. Therefore, no liability is assumed in this regard. The subject has all utilities available. Electricity is provided by Oncor, natural gas service is provided by Atmos, and water and sewer services are provided by Richland Hills and contracted through the city of Fort Worth. The topography of the subject is best described as level and open. No environmental issues were noted on inspection. However, we are not qualified to detect such issues and we assume the site is free and clear of all potential environmental hazards. Floodplain: According to FEMA map number 48439C0215K dated September 25, 2009, the subject property is located in Flood Zone X, outside the 500- year floodplain. A copy of this flood map precedes the Site Analysis section. Surrounding Improvements: Adverse Easements: Summary: There are commercial developments located east and west of the subject property, a religious facility to the north and single-family residences to the south. No adverse easements or encroachments were noted on inspection. However, a title policy was not provided for review. Therefore, no liability is assumed in this regard. The subject contains acres or 28,324 square feet of land and is basically rectangular in shape. The subject's utilities are typical and adequate for the market area. The subject property is located in Flood Zone X, outside the 500-year floodplain. Overall, the subject is considered to have a good utility due to its location along a primary thoroughfare in the city of Richland Hills. ASI File #: 17c2810 Appraisal Report - Page 19

21 Zoning Zoning Code: Zoning Authority: Zoning Description: Legally Conforming Use: Zoning Change Likely: LAND USE CONTROLS MX, Mixed Use City of Richland Hills The MX, Mixed Use District is intended to create unique, pedestrian-friendly areas with a blend of residential and nonresidential uses. These districts may include vertical mixed use (typically residential or office above a retail use) or horizontal mixed use (individual uses located adjacent to one another). The subject is vacant land. No zoning change is likely. Zoning Map ASI File #: 17c2810 Appraisal Report - Page 20

22 Assessment and Taxes Taxing Authority Tarrant Appraisal District Assessment Year 2016 ASSESSED VALUES Tax Identification Number Totals Total Land Assessed Value $41,682 Total Building Assessed Value $0 Total Assessment $41,682 Tax Rates City of Richland Hills $ Tarrant County & Related Entities $ Birdville ISD $ Combined Tax Rate $ Total Tax Amount $1, The assessment per square foot above is based on the size reported by the Tarrant Appraisal District. Taxes are based on the 2016 assessed values tax rates including city, school and county taxing agencies. The 2016 tax amount for the subject property is $1, based on a 2016 assessed value of $41,682 and an overall tax rate of $ per $100 of assessed value. The subject is tax exempt and its assessed values are less likely to get protested. The subject s assessed value is lower than the value estimate contained herein, but reasonable based on similar surrounding properties. ASI File #: 17c2810 Appraisal Report - Page 21

23 Highest and Best Use Highest and Best Use may be defined as: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, and financially feasible and that results in the highest value (Appraisal Institute, The Appraisal of Real Estate, Thirteenth Edition, 2008, pp ). 1. Legally Permissible: What uses are permitted by zoning and deed restrictions on the site? 2. Physically Possible: What uses of the site are physically possible? 3. Financially Feasible: Which physically possible and legally permissible uses will produce a net return to the owner of the site? 4. Maximally Productive. Among the financially feasible uses which use will produce the highest price or value, (i.e., the highest present worth)? The highest and best use analysis is narrowing process and is a vital step in the appraisal process, as it forms a conclusion of the optimum use of the subject property and a basis by which the comparable sales will be selected. Highest and Best Use As Though Vacant Legally Permissible: The subject is zoned MX, Mixed Use by the City of Richland Hills. The MX, Mixed Use District is intended to create unique, pedestrian-friendly areas with a blend of residential and nonresidential uses. These districts may include vertical mixed use (typically residential or office above a retail use) or horizontal mixed use (individual uses located adjacent to one another). We are unaware of any deed restrictions applicable to the subject site. Information regarding this zoning designation is provided in the Addenda. Physically Possible: The subject contains acres or 28,324 square feet. The subject is level and open, basically rectangular in shape and has all utilities available. The subject is located within flood zone X, outside of the 500-year flood plain. The subject has good linkage from Baker Boulevard (SH 183) which is a primary arterial linking IH 820 to SH 26. Surrounding developments include a mix of commercial, light industrial and residential uses. Overall, the physical characteristics of the subject place few restrictions on the development potential of the site. ASI File #: 17c2810 Appraisal Report - Page 22

24 Financially Feasible: From a legal and physical standpoint, the subject is restricted to a mixed use; however, office or retail use is the most likely option given its location. There is both office and retail developments in the immediate vicinity of the subject. Based on the current demand, occupancy, and rental rates within the subject submarket, speculative commercial development is not currently feasible. Maximally Productive: The highest and best use of the subject ''as though vacant'' is to develop with a commercial use or sell to an end-user. Highest and Best Use As Improved The subject is vacant land and a highest and best use of the subject ''as improved'' is not warranted. ASI File #: 17c2810 Appraisal Report - Page 23

25 The Appraisal Process The appraisal process requires the interpretation of the social, economic, governmental, and environmental influences on the subject property. The area analysis, neighborhood analysis, site analysis, improvement analysis, "highest and best use" analysis, and tax and assessment analysis related how these forces affect the subject property, and they built a framework for solving the appraisal problem. The valuation process typically includes three approaches to value: the Cost Approach, the Sales Comparison Approach, and the Income Capitalization Approach. Each approach gives a separate indication of value. The Cost Approach is based upon the reproduction cost of an improvement, less an appropriate allowance for depreciation, plus the estimate of land value. The market value of the land is based on a direct comparison of known land sales to the subject site. It is important to consider that cost does not necessarily equal value. This approach to value is most relevant in new construction when supply and demand are in balance, or in estimating the value of specialized buildings that represent the highest and best use of the subject site. The Sales Comparison Approach is a comparison of known market transactions of similar properties. When sufficient information is available in order to make a unit comparison, a supportable indication of value can be obtained. The underlying economic factor in this approach is the Principle of Substitution, which states that a prudent purchaser would pay no more for a property than the cost of acquiring an equally desirable substitute property. This approach to value is most applicable in owner-occupied buildings when a sufficient number of comparable sales are available. The Income Capitalization Approach is based upon known or projected earnings, less proper deductions for vacancy allowance and operating expenses. Direct income capitalization is a method of converting a single year's estimate of net operating income into an indicated present value. All income capitalization methods, techniques, and procedures attempt to forecast future benefits and estimate their present value. Once a conclusion has been drawn from each applicable approach to value, the estimates are correlated into one reasonable estimate as to the value for the property being appraised. Valuation as it Relates to the Subject We have developed the Sales Comparison Approach as it is the preferred method for valuing vacant land. The Cost Approach and Income Capitalization Approach were not developed because the subject is vacant land. ASI File #: 17c2810 Appraisal Report - Page 24

26 Sales Comparison Approach The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution and externalities. The following steps describe the applied process of the Sales Comparison Approach. The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed. The most pertinent data is further analyzed and the quality of the transaction is determined. The most meaningful unit of value for the subject property is determined. Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject property. The value indication of each comparable sale is analyzed and the data reconciled for a final indication of value via the Sales Comparison Approach. There are six procedures that can be used to obtain land value indications: 1. Sales comparison 2. Allocation 3. Extraction 4. Subdivision development 5. Land residual technique 6. Ground rent capitalization The Sales Comparison Approach is typically the preferred method when comparable sales are available. Based on our research, there have been sufficient comparable sales to estimate the value of the subject property. The comparable sales in this report are considered the most recent and most comparable to the subject. We have examined four land sales in more detail to derive a market value estimate for the subject site. Reference is made to the Comparable Land Sales Map following the sale write-ups in this section of the report for the location of the land sales in relation to the subject. ASI File #: 17c2810 Appraisal Report - Page 25

27 Land Comparable 1 Transaction ID Date 5/12/2017 Address 2800 & 2900 Carson Street Price $180,000 City Haltom City Price per Land SF $3.32 County Tarrant Price per Acre $144,683 State Texas Financing Cash to seller Grantor Florence Felicity Guynn Property Rights Fee Simple Grantee Dennis Johnson Jr. and Verification Source Broker Legal Description 1.24 acres in the George Akers Survey, Abstract No. 30 Site Acres 1.2 Topography Level & Open Land SF 54,193 Zoning M-1 Road Frontage Type Secondary Roadway Flood Zone X Shape Basically Rectangular Encumbrance or None Utilities All Available Environmental Issues None Comments The property represents two sites totaling acres of land. The northern site is improved with a singlefamily residence in poor-fair condition. The sellers leased the property back for six months. According to the broker, the grantee will raze the residence and redevelop with an office use. ASI File #: 17c2810 Appraisal Report - Page 26

28 Land Comparable 2 Transaction ID Date 6/7/2016 Address 7970 Precinct Line Road Price $677,790 City Colleyville Price per Land SF $6.00 County Tarrant Price per Acre $261,392 State Texas Financing Cash to seller Grantor Atlantic Oil & Gas, Ltd. Property Rights Fee Simple Grantee Precinct Partners, LLC Verification Source Broker Legal Description Atlantic Oil and Gas Addition Block, Lot 2R Site Acres 2.6 Topography Lightly Wooded Land SF 112,965 Zoning C Road Frontage Type Primary Roadway Flood Zone X Shape Rectangular Encumbrance or None Utilities All Available Environmental Issues None Comments Property is a pad site located between a convenience store/gas station and Bear Valley Community Church. Other surrounding improvements include a residential neighborhood and office/retail development. ASI File #: 17c2810 Appraisal Report - Page 27

29 Land Comparable 3 Transaction ID Date 4/21/2016 Address 2004 L Don Dodson Drive Price $355,000 City Bedford Price per Land SF $4.53 County Tarrant Price per Acre $197,146 State Texas Financing Cash to seller Grantor D & A Bedford Property Rights Fee Simple Grantee DFW Linq Transport, Inc. Verification Source Closing statement Legal Description 6R2 1 First Bedford Addn. Site Acres 1.8 Topography Level & Open Land SF 78,437 Zoning PUD Road Frontage Type -- Flood Zone X Shape Rectangular Encumbrance or None Utilities All Available Environmental Issues None Comments Property was purchased for development of an office building. Surrounding improvements incldue a medical plaza, residential neighborhood, a Harley Davidson Retail Store and a vacant restaurant. ASI File #: 17c2810 Appraisal Report - Page 28

30 Land Comparable 4 Transaction ID Date 3/3/2015 Address 8229 Mid Cities Blvd Price $85,000 City North Richland Hills Price per Land SF $3.03 County Tarrant Price per Acre $132,193 State TX Financing Cash to seller Grantor Keith Hamilton Property Rights Fee Simple Grantee Silverado Development Corp Verification Source GTR Legal Description Lot/Tract 7, Block 1, Pavillion Park Addn Site Acres 0.6 Topography Level & Open Land SF 28,009 Zoning C-1 Road Frontage Type Primary Roadway Flood Zone X Shape Triangular Encumbrance or None Utilities All Available Environmental Issues None Interior lot in platted office park development. Comments ASI File #: 17c2810 Appraisal Report - Page 29

31 Location Map - Comparable Land Sales Analysis Grid The above sales have been analyzed and compared with the subject property. On the following page is a sales comparison grid displaying the subject property, the comparables and the adjustments applied to each comparable. ASI File #: 17c2810 Appraisal Report - Page 30

32 Land Analysis Grid Comp 1 Address 6980 Baker 2800 & 2900 Carson Boulevard Street City State Date Price Land SF Land SF Unit Price Richland Hills Texas 8/1/ ,324 Haltom City Texas 5/12/2017 $180,000 54,193 $3.32 Transaction Adjustments Fee Simple Cash to Seller Arm's Length Adjusted Land SF Unit Price $3.32 Market Trends Through 8/1/ % 0.0% Adjusted Land SF Unit Price $3.32 Location Good Similar % Adjustment 0% $ Adjustment $0.00 Property Rights Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Financing Cash to seller 0.0% Cash to seller 0.0% Cash to seller 0.0% Cash to seller 0.0% Conditions of Sale Arm's Length 0.0% Arm's Length 0.0% Arm's Length 0.0% Arm's Length 0.0% $6.00 $4.53 $ % 0.0% 0.0% $6.00 $4.53 $3.03 Superior Superior Superior -50% -30% -20% -$3.00 -$1.36 -$0.61 Acres % Adjustment $ Adjustment Topography % Adjustment $ Adjustment Shape % Adjustment $ Adjustment Utilities % Adjustment $ Adjustment Flood Zone % Adjustment $ Adjustment Zoning % Adjustment $ Adjustment 0.65 Level And Open Basically Rectangular All Available X MX, Mixed Use % $0.00 Level & Open 0% $0.00 Basically Rectangular 0% $0.00 All Available 0% $0.00 X X 0% 0% $0.00 $0.00 M-1 0% $0.00 Comp Precinct Line Road Colleyville Texas 6/7/2016 $677, ,965 $ % $0.60 Lightly Wooded 0% $0.00 Rectangular 0% $0.00 All Available 0% $0.00 0% $0.00 Adjusted Land SF Unit Price $3.32 $3.60 $3.17 Net Adjustments 0.0% -40.0% -30.0% Gross 0.0% 60.0% 30.0% C Comp L Don Dodson Drive Bedford Texas 4/21/2016 $355,000 78,437 $ % $0.00 Level & Open 0% $0.00 Rectangular 0% $0.00 All Available 0% $0.00 X 0% $0.00 PUD 0% $0.00 Comp Mid Cities Blvd North Richland Hills TX 3/3/2015 $85,000 28,009 $ % $0.00 Level & Open 0% $0.00 Triangular 10% $0.30 All Available 0% $0.00 X 0% $0.00 C-1 0% $0.00 $ % 30.0% ASI File #: 17c2810 Appraisal Report - Page 31

33 Comparable Land Sales Adjustments The preceding three land sales are considered to be the most similar and recent transaction for comparison with the subject site. The sales have been analyzed and adjusted for value-related differences when compared to the subject site. The sales have been analyzed for: 1. Property rights conveyed 2. Financing terms 3. Conditions of sale (motivation) 4. Date of sale (market conditions) 5. Physical characteristics of the site Property Rights Conveyed The sales price of a property is always affected by the real property interest conveyed. All the comparable land sales represent a conveyance of the fee simple interest of the site. Therefore, no adjustments were necessary. Financing Terms Seller financing that utilizes terms or conditions that deviate from typical financing that would not be considered available from a third-party lender can influence a sale price. All the sales have been analyzed for other than market financing. All of the comparable sales closed with the seller receiving cash at closing. Therefore, no adjustments were necessary. Conditions of Sale The conditions of a sale can often affect the sale price of a property. The remaining sales are considered to represent arm s length transactions consistent with the previous definition of value. Therefore, no adjustments in this regard were necessary for the sales. Market Conditions Differences in market conditions can substantially influence sale prices, development feasibility, highest and best use analyses, and thus overall values. The sale dates for the comparable land sales range from March 3, 2015 to May 12, All sales are similar with regard to market conditions and no adjustments are applied. Location The locational attributes of the comparable sales have been given full consideration. These features include the type of street or highway frontage, accessibility and exposure, surrounding developments within the neighborhood, and the general surrounding amenities affecting the comparable sale properties and the subject. ASI File #: 17c2810 Appraisal Report - Page 32

34 The subject is located along the south side of Baker Boulevard (SH 183) at the terminus of Latham Drive and Scruggs Park Drive, approximately 1.25 miles east of IH 820. The municipal address of the subject property is 6908 Baker Boulevard, Richland Hills, Texas. The subject is considered to have a good location as it is located at a signalized intersection along a primary thoroughfare. Sale 1 is similar in location and unadjusted. Sale 2 has less traffic and exposure and requires a positive adjustment. Sales 3 and 4 are superior and adjusted downward. Both sales are located in high density commercial areas with superior traffic and exposure in addition to higher overall land values. Sale 4 requires a less substantial adjustment as it is located within an office park. Size The size of a property will affect the overall sale prices given development possibilities and economies of scale. The subject contains acres or 28,324 square feet of vacant land. The sales range in size from 0.64 to 1.80 acres and are considered overall similar. No adjustments for size are required. Topography The topography of the subject is best described as level and open. Sales 1, 3 and 4 are similar and unadjusted. Sale 2 is heavily treed and will require increased site work and site costs upon development. As such, a slight positive adjustment is required. Shape/Configuration The shape of a site can influence development potential and therefore the sale price of a site. The shape of the subject is best described as basically rectangular. All sales are basically rectangular to slightly irregular. No adjustments for shape are warranted. Utilities Availability of public utilities is an important factor that affects the sale price of vacant land. Sales with utilities available tend to command higher prices than those with partial or no utilities available. The subject has all utilities available. All sales are similar and require no adjustment. Flood Zone According to FEMA map number 48439C0215K dated September 25, 2009, the subject property is located in Flood Zone X, outside the 500-year floodplain. The sales are similar and require no adjustment. ASI File #: 17c2810 Appraisal Report - Page 33

35 Zoning The zoning category of a property often dictates the ultimate use of the property. The subject and each comparable sale have similar zonings or highest and best uses. Therefore, no adjustments are required. Sales Comparison Approach Conclusion In estimating a value for the subject site, consideration has been given to the location, size, topography, shape/configuration, utilities, flood zone, and zoning of each of the comparable sales as they relate to each other and the subject. The adjusted sale prices of the comparable sales range from $2.73 to $3.60 per sq. ft., with a mean of $3.21 per sq. ft. Based on the analysis of the information contained in this report, we estimate the market value of the fee simple interest of the subject as follows: Sales Comparison Approach Conclusion Indicated Value per sq. ft.: $2.75 X Subject Size: 28,324 sq. ft. Equals: $77,891 Rounded: $80,000 ASI File #: 17c2810 Appraisal Report - Page 34

36 Value Conclusion It is my conclusion subject to the Assumptions and Limiting Conditions that the market value of the fee simple interest of the subject property as of August 1, 2017, is measured in the amount of: EIGHTY THOUSAND DOLLARS $80,000 ASI File #: 17c2810 Appraisal Report - Page 35

37 Certification I certify that, to the best of my knowledge and belief: The statements of fact contained in this appraisal report are true and correct. The reported analysis, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased, professional analyses, opinions, conclusions, and recommendations. I have no present or prospective interest in the property that is the subject of this appraisal report, and I have no personal interest with respect to the parties involved. The appraiser has not performed any services regarding the subject property in the three years prior to accepting this assignment. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon the development or reporting of a predetermined value or direction in value that stipulated result or the occurrence of a subsequent event directly related to the intended use of this appraisal assignment. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal assignment. My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. Jonathan Archer has inspected the subject and the surrounding neighborhood. No one provided significant real property appraisal assistance to the person signing this certification. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, Jonathan Archer has completed the continuing education program for Designated Members of the Appraisal Institute. Jonathan Archer, MAI Certified General Number TX G ASI File #: 17c2810 Appraisal Report - Page 36

38 ASSUMPTIONS AND LIMITING CONDITIONS 1) This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. 2) The Appraiser assumes no responsibility for matters of a legal nature affecting the subject property being appraised or the title. It is assumed by the Appraiser that the legal description furnished to him is correct, and all necessary licenses or permits have been obtained. 3) The subject property is appraised as though free and clear of any or all liens or encumbrances unless otherwise stated, with the seller receiving cash or its equivalent, and it is assumed that the purchaser would take advantage of maximum financing available. 4) The property being appraised and the value estimates are based on the assumption that the property is under responsible ownership and competent management. 5) Certain information in regard to market and operating data was obtained from others. This information is verified, checked where possible, and is used in this appraisal report only if it is believed to be accurate, correct, and from reliable sources. However, the Appraiser assumes no responsibility for it, and such information is not guaranteed. 6) The various sketches and photographs included in this appraisal are placed herein only to assist the reader in visualizing the property being appraised. An appraisal is an estimate of value. Therefore, the opinions of value contained herein are only estimates. There is no guarantee, written or implied, that the subject property will sell for such an amount. 7) It is assumed by the Appraiser that there are no hidden or unapparent conditions of the property, subsoil, or structures that would render it more or less valuable. The Appraiser assumes no responsibility for such conditions or for engineering that may be required to discover them. All mechanical, electrical, and plumbing equipment is assumed to be in proper working condition, unless otherwise noted. 8) It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 9) It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. 10) It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or ASI File #: 17c2810 Appraisal Report - Page 37

39 private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 11) It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described, and there is no encroachment or trespass unless noted in the report. 12) The distribution, if any, of the total valuation in this report between the land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 13) Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any other than the party to whom it is addressed without the written consent of the Appraiser, and in any event only with proper written qualification and only in its entirety. 14) The Appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or to be in attendance in court with reference to the property in question unless arrangements have been previously made. 15) Neither all nor part of the contents of this appraisal report shall be disseminated to the public through the advertising media, public relations media, news media, sales media, or any other media without prior written consent and approval of the Appraiser. 16) The Appraiser is not qualified to detect the existence of potentially hazardous material that may or may not be present on or near the property. The existence of such substances may have an effect on the value of the property. No consideration has been given in the analysis to any potential diminution in value should such hazardous materials be found. The client is urged to retain an expert in the field before making a business decision regarding the property. 17) The Americans with Disabilities Act ("ADA") became effective January 26, The Appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. The Appraiser is not qualified to make an analysis of the compliance. Currently, there is very little market data relating to this issue. If the building requires substantial improvements, this fact could have a negative effect upon the value of the property. Since the Appraiser is not qualified to determine what modifications may or may not be required for compliance, the cost of these possible modification, and because there is virtually no market data relating to this issue, in this instance, no consideration was given to possible noncompliance with the requirements of ADA in estimating the value of the property. ASI File #: 17c2810 Appraisal Report - Page 38

40 18) Only the surface was valued. No minerals are included in this value estimate. The appraisal is based on the assumption the full surface of the property will be available for development. ASI File #: 17c2810 Appraisal Report - Page 39

41 Addenda ASI File #: 17c2810 Appraisal Report - Page 40

42 ASI File #: 17c2810 Appraisal Report - Page 41

43 ASI File #: 17c2810 Appraisal Report - Page 42

44 PHOTOGRAPHS OF THE SUBJECT PROPERTY Looking south at subject property Looking west at subject property Looking west at subject property Looking southwest at subject property Looking east at Baker Boulevard (SH 183) Looking north at intersection of Baker Blvd, Latham Drive and Scruggs Park Drive. ASI File #: 17c2810 Appraisal Report - Page 43

45 MX Mixed Use (A) Character description. The MX Mixed Use District is intended to create unique, pedestrian-friendly areas with a blend of residential and nonresidential uses. These districts may include vertical mixed use (typically residential or office above a retail use) or horizontal mixed use (individual uses located adjacent to one another). (B) Permitted uses. Uses permitted in this district are outlined in section 3.02 Use Chart. (C) Other regulations Section 4.01 Off-Street Parking and Loading Requirements Section 4.02 Accessory Structure Standards Section 4.03 Supplementary Regulations Section 4.04 Performance Standards Other Supplementary Ordinances (D) Area regulations ASI File #: 17c2810 Appraisal Report - Page 44

46 SUP Specific Use Permit (A) General description and authorization. The uses listed under the various districts within the Use Chart as specific use permits (SUPs) are so classified because they may have use characteristics or environmental impacts that could negatively impact adjacent land uses if not properly planned or buffered. (1) Consideration for compatibility. With consideration given to setting, physical features, compatibility with surrounding land uses, traffic, and aesthetics, certain uses may locate in an area where they will be compatible with existing or planned land uses. (2) Review and approval authorities (a) The city council shall review each case on its own merit, apply the criteria established herein, and, if appropriate, authorize said use by granting a specific use permit for the use. (b) The planning and zoning commission shall recommend to the city council approval, approval with modifications, or denial for each specific use permit. (3) Time limit. City council may choose to place a time limit on an SUP to allow periodic reviews of the impact of the use on surrounding properties. ASI File #: 17c2810 Appraisal Report - Page 45

47 (B) (C) Application and site plan required. Application and public hearing procedures for a specific use permit shall be completed in the same manner as an application for rezoning. A site plan shall be included with the application as outlined in section 6.06 Site Plan Requirements. (1) The planning and zoning commission or city council may require additional information or drawings (such as building floor plans), operating data and expert evaluation or testimony concerning the location, function and characteristics of any building or use proposed. (2) The site plan shall comply with the standards of section 6.06 Site Plan Requirements. SUP procedure and other regulations. See section 6.08 Specific Use Permit (SUP) for procedures and other regulations. ASI File #: 17c2810 Appraisal Report - Page 46

48 ASI File #: 17c2810 Appraisal Report - Page 47