FOR JEFFREY A. COSTELLO AICP, EXECUTIVE DIRECTOR DELRAY BEACH CRA ROBERT B. BANTING, MAI, SRA CERT GEN RZ4 AND MICHELLE J. MICKLE CERT GEN RZ3316

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1 APPRAISAL OF 39 PARCELS OF LAND BASED UPON THEIR HIGHEST AND BEST USE AND ALSO SUBJECT TO DEVELOPMENT CONDITIONS LOCATED ON THE SOUTH SIDE OF WEST ATLANTIC AVENUE DELRAY BEACH, FLORIDA FOR JEFFREY A. COSTELLO AICP, EXECUTIVE DIRECTOR DELRAY BEACH CRA BY ROBERT B. BANTING, MAI, SRA CERT GEN RZ4 AND MICHELLE J. MICKLE CERT GEN RZ3316 WITH ANDERSON & CARR, INC. 521 SOUTH OLIVE AVENUE WEST PALM BEACH, FLORIDA DATE OF INSPECTION: APRIL 25, 2018 DATE OF REPORT: MAY 10, 2018 DATE OF VALUE: APRIL 25, 2018 FILE NO.: CLIENT REFERENCE: PURCHASE ORDER

2 May 10, 2018 Mr. Jeffrey A. Costello AICP Executive Director Delray Beach CRA 20 N. Swinton Avenue Delray Beach, FL Dear Mr. Costello: Pursuant to your request, we have personally appraised the real property being 39 parcels of land, some of which are improved. The combined land area for all of the parcels is approximately 366,345 square feet of land area or 8.41 acres. We have valued the contiguous parcels within each block as one parcel; and the two outlier parcels have been valued separately. The subject parcels are located on the south side of West Atlantic Avenue, just east of Interstate 95 in Delray Beach. The parcels are between Southwest 10th Avenue and Southwest 6th Avenue in Delray Beach. The property addresses and characteristics are noted in the chart below and on the following page. SUBJECT PARCELS Block/ No. Lot Lot Front Building PCN# Address Improved Zoning SF Acres Feet SF West Atlantic Avenue 39, Yes 5,811 CBD SW 6th Avenue 6, Yes 1,152 CBD SW 6th Avenue 6, No 0 CBD SW 6th Avenue 6, Yes 1,961 RM SW 6th Avenue 6, No 0 RM SW 6th Avenue 6, No 0 RM Easement 18, No 0 CBD West Atlantic Avenue 13, No 0 CBD SW 7th Avenue 8, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 RM SW 7th Avenue 6, No 0 RM Block 600 Total 156, ,924

3 Mr. Jeffrey A. Costello AICP Executive Director Delray Beach CRA Page 2 May 10, 2018 SUBJECT PARCELS Block/ No. Lot Lot Front Building PCN# Address Improved Zoning SF Acres Feet SF West Atlantic Avenue 32, Yes 6,320 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 8th Avenue 13, No 0 CBD SW 8th Avenue 6, Yes 728 CBD Block 700 Total 81, , SW 8th Avenue 6, No 0 RM Parcel Total 6, West Atlantic Avenue 2, No 0 CBD West Atlantic Avenue 3, No 0 CBD West Atlantic Avenue 3, No 0 CBD West Atlantic Avenue 6, No 0 CBD West Atlantic Avenue 6, No 0 CBD West Atlantic Avenue 2, No 0 CBD SW 8th Avenue 6, No 0 CBD SW 8th Avenue 6, No 0 CBD SW 8th Avenue 8, No 0 CBD SW 9th Avenue 31, No 0 CBD Block 800 Total 79, SW 8th Avenue 6, Yes 728 RM Parcel Total 6, SW 10th Avenue 7, No 0 CBD SW 10th Avenue 7, No 0 CBD SW 10th Avenue 7, No 0 CBD SW 10th Avenue 7, No 0 CBD SW 10th Avenue 7, No 0 CBD Parcel 900 Total 36, TOTAL SF/ACRES 366, ,700 One value will be placed on all of the parcels in Block 600 and on all of the parcels in Block 900. Block 700 and Block 800 each have an outlier parcel which will be valued separately so there will be a separate value for Block 700, Parcel 700-8, Block 800, and Parcel Purchase Order A&C Job No.:

4 Mr. Jeffrey A. Costello AICP Executive Director Delray Beach CRA Page 3 May 10, 2018 Some of the subject parcels are currently improved. These improvements are considered to be interim uses and would be removed for redevelopment; therefore, no value consideration was given to these improvements. The purpose of this narrative appraisal is to estimate the market value of the fee simple estate of the subject property as of April 25, 2018; based upon their highest and best use and also subject to the following development conditions per the client s instructions: 1. The development will be required to include a full service grocery store with on-site parking. 2. There will be several recommended retail uses, including a bank and pharmacy. 3. The development will be required to include workforce housing. This requirement can be met either on or off site. If off site, the developer could likely utilize single family lots in the neighborhood currently owned by the CRA. 4. Within the retail/commercial component of the development, there will be (3) three spaces reserved for local businesses in the immediate area. These will more than likely have reduced rent. 5. Local contractors must represent a portion of the employment hired to construct the improvements. The intended use of the report is to assist the client and intended user in establishing a purchase or selling price. This report has been prepared for no other purpose and for use by no other person or entity than for use by the client for the purpose stated herein. Any other use of this appraisal is considered a misuse and thus the appraisers will not be held responsible for any outcome associated with use by another entity or for another purpose. The intended user of this appraisal report, the Delray Beach Community Redevelopment Agency, has been assembling properties in this neighborhood for future redevelopment. The subject sites are zoned CBD, Central Business District and RM, Multiple Family Residential, Medium Density and are all within the boundaries of the West Atlantic Avenue Overlay Redevelopment District. This neighborhood is destined for assemblage and future redevelopment by the Delray Beach Community Redevelopment Agency with a larger scale mixed use project. The Delray Beach Community Redevelopment Agency has stated that properties within the first block from West Atlantic Avenue in this neighborhood have rezoning or ancillary use (parking, community park, etc.) potential. The subject properties are all within this first block and all within the CBD, Central Business District redevelopment area. Given the fact that the subject parcels which are improved have older improvements, and also considering the location of the subject sites within the redevelopment area as well as the underlying land value, it is our opinion that the highest and best use of the subject properties is for assemblage with adjoining parcels for mixed use redevelopment. Purchase Order A&C Job No.:

5 Mr. Jeffrey A. Costello AICP Executive Director Delray Beach CRA Page 4 May 10, 2018 We have utilized the sales comparison approach to value, the most common method used for valuing properties such as the subject property. We have gathered sales of similar properties located in similar locations for which to compare to the subject. As a result of our analysis, we have developed an opinion that the total market value of the fee simple estate (as defined in the report), subject to the definitions, certifications, and limiting conditions set forth in the attached report, as of April 25, 2018 was: ($19,450,000) NINETEEN MILLION FOUR HUNDRED FIFTY THOUSAND DOLLARS ALLOCATED VALUES - COMMERCIAL PARCELS Land Market SF Value Block ,355 $8,600,000 Block ,353 $4,500,000 Block ,205 $4,400,000 Block ,364 $1,800,000 TOTAL 353,277 $19,300,000 ALLOCATED VALUES - RESIDENTIAL PARCELS Land Market SF Value Parcel ,970 $80,000 Parcel ,098 $70,000 TOTAL 13,068 $150,000 Purchase Order A&C Job No.:

6 Mr. Jeffrey A. Costello AICP Executive Director Delray Beach CRA Page 5 May 10, 2018 The following presents our analysis and conclusions in a narrative appraisal report. This letter must remain attached to the report, which contains 104 pages plus related exhibits, in order for the value opinion set forth to be considered valid. Your attention is directed to the Assumptions and Limiting Conditions contained within this report. Respectfully submitted, ANDERSON & CARR, INC. Robert B. Banting, MAI, SRA Cert Gen RZ4 Michelle J. Mickle Cert Gen RZ3316 RBB/MJM:cmp Purchase Order A&C Job No.:

7 TABLE OF CONTENTS Page No. Summary Of Important Facts And Conclusions...1 Certification...4 Assumptions And Limiting Conditions...5 Extraordinary Assumptions...7 Hypothetical Conditions...7 Area/Location Maps...8 Parcel Maps...10 Aerial Photographs...14 Subject Property Photos (Taken April 25, 2018)...19 Purpose And Date Of Value...26 Property Appraised...26 Legal Description...29 Disclosure Of Competency...41 Intended Use And User...41 Client...41 Definitions...42 Property Rights Appraised...42 Typical Buyer Profile...42 Scope Of Assignment...42 Palm Beach County Summary...44 Neighborhood Summary...51 Property Data...54 Taxpayer Of Record...54 Palm Beach County Property Control Number(S)...54 Assessed Value And Taxes For Census Tract...57 Flood Zone Designation...58 Concurrency...60 Utilities...61 Subject Property Sales History...61 Site Analysis...62 Highest And Best Use...66 Exposure And Marketing Time...67 Commercial Parcels - Sales Comparison Approach...69 Sales Summary And Discussion...82 Commercial Parcels - Conclusion...86 Residential Sales - Sales Comparison Approach...87 Sales Summary And Discussion Conclusion Residential Parcels Conclusion Qualifications for Robert B. Banting, MAI, SRA, Cert Gen RZ4 Qualifications for Michelle J. Mickle, Cert Gen RZ3316 Addendum: Engagement Letter Purchase Order A&C Job No.:

8 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Client: Intended User: Taxpayer of Record: Property Rights Appraised: Special Assumptions Reference: Extraordinary Assumptions: Hypothetical Conditions: Unusual Market Externality: Location: Site/Land Area: Jeffrey A. Costello AICP, Executive Director Delray Beach Community Redevelopment Agency Delray Beach Community Redevelopment Agency Delray Beach Community Redevelopment Agency Fee Simple Estate None None None None Sites are located on the south side of West Atlantic Avenue, just east of Interstate 95 in Delray Beach. The parcels are between Southwest 10th Avenue and Southwest 6th Avenue in Delray Beach. The total subject site area contains approximately 366,345 square feet or 8.41 acres. The following is a breakdown by block with the area for the two additional outlying parcels: Block 600: Block 700: Parcel 700-8: Block 800: Parcel : Block 900: Total: 156,355 SF or 3.59 acres 81,353 SF or 1.87 acres 6,970 SF or 0.16 acres 79,205 SF or 1.82 acres 6,098 SF or 0.14 acres 36,364 SF or 0.83 acres 366,345 SF or 8.41 acres Improvements: Zoning: Some parcels have older residential and commercial improvements; however, given the assignment criteria, these improvements have been given no value. CBD, Central Business District and RM, Multiple Family Residential, Medium Density by the City of Delray Beach 1

9 Land Use Plan: Flood Zone & Map Reference: CC, Commercial Core and MD, Medium Density Residential 5-12 du/acre by the City of Delray Beach Zone X (unshaded), Community Panel Number 12099C0979F, effective date of October 5, 2017 Census Tract: & Current Use: Highest and Best Use: Exposure Time: Marketing Time: Vacant Commercial and Residential; Improved Commercial and Residential Assemblage for Redevelopment Six to twelve months Six to twelve months Total Market Value All Parcels: $19,450,000 Allocated Property Values: ALLOCATED VALUES - COMMERCIAL PARCELS Land Market SF Value Block ,355 $8,600,000 Block ,353 $4,500,000 Block ,205 $4,400,000 Block ,364 $1,800,000 TOTAL 353,277 $19,300,000 ALLOCATED VALUES - RESIDENTIAL PARCELS Land Market SF Value Parcel ,970 $80,000 Parcel ,098 $70,000 TOTAL 13,068 $150,000 2

10 Date of Inspection: April 25, 2018 Date of Report: May 10, 2018 Date of Value: April 25, 2018 Appraisers: Robert B. Banting, MAI, SRA Cert Gen RZ4 Michelle J. Mickle Cert Gen RZ3316 3

11 CERTIFICATION I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, 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 performed no 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. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest with respect to the parties involved. I have no bias with respect to any 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 developing or reporting predetermined results. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 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. 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 & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Michelle J. Mickle has made a personal interior and exterior inspection of the property that is the subject of this report. Robert B. Banting, MAI, SRA has not made a site specific inspection of the property. Mr. Banting is familiar with the area and has seen this property in the past. As of the date of this report, Robert B. Banting, MAI, SRA has completed the continuing education program of the Appraisal Institute. No one provided significant real property appraisal or appraisal consulting assistance to the person signing this certification. Robert B. Banting, MAI, SRA Cert Gen RZ4 Michelle J. Mickle Cert Gen RZ3316 4

12 ASSUMPTIONS AND LIMITING CONDITIONS 1. Unless otherwise stated, the value appearing in this appraisal represents our opinion of the market value or the value defined as of the date specified. Values of real estate are affected by national and local economic conditions and consequently will vary with future changes in such conditions. 2. Possession of this report or any copy thereof does not carry with it the right of publication nor may it be used for other than its intended use. The physical report(s) remains the property of the appraiser for the use of the client. The fee being for the analytical services only. The report may not be copied or used for any purpose by any person or corporation other than the client or the party to whom it is addressed, without the written consent of an officer of the appraisal firm of Anderson & Carr, Inc. and then only in its entirety. 3. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations efforts, news, sales or other media without written consent and approval of an officer of Anderson & Carr, Inc. nor may any reference be made in such public communication to the Appraisal Institute or the MAI, SRA or SRPA designations. 4. The appraiser may not divulge the material contents of the report, analytical findings or conclusions, or give a copy of the report to anyone other than the client or his designee, as specified in writing except as may be required by the Appraisal Institute, as they may request in confidence for ethics enforcement or by a court of law or body with the power of subpoena. 5. Liability of Anderson & Carr, Inc. and its employees is limited to the fee collected for the appraisal. There is no accountability or liability to any third party. 6. It is assumed that there are no hidden or unapparent conditions of the property, sub-soil, or structures which make it more or less valuable. The appraiser assumes no responsibility for such conditions or the engineering which might be required to discover these facts. 7. This appraisal is to be used only in its entirety. All conclusions and opinions concerning the analysis which are set forth in the report were prepared by the appraisers whose signatures appear on the appraisal report. No change of any item in the report shall be made by anyone other than the appraiser and the appraiser and firm shall have no responsibility if any such unauthorized change is made. 8. No responsibility is assumed for the legal description provided or other matters legal in character or nature, or matters of survey, nor of any architectural, structural, mechanical, or engineering in nature. No opinion is rendered as to the title which is presumed to be good and merchantable. The property is valued as if free and clear of any and all liens and encumbrances and under responsible ownership and competent property management unless otherwise stated in particular parts of the report. 9. No responsibility is assumed for accuracy of information furnished by or from others, the clients, their designee, or public records. We are not liable for such information or the work of subcontractors. The comparable data relied upon in this report has been confirmed with one or more parties familiar with the transaction or from affidavit when possible. All are considered appropriate for inclusion to the best of our knowledge and belief. 5

13 10. The contract for appraisal, consultation or analytical service is fulfilled and the total fee payable upon completion of the report. The appraiser or those assisting the preparation of the report will not be asked or required to give testimony in court or hearing because of having made the appraisal in full or in part; nor engaged in post-appraisal consultation with client or third parties, except under separate and special arrangement and at an additional fee. 11. The sketches and maps in this report are included to assist the reader and are not necessarily to scale. Various photos, if any, are included for the same purpose and are not intended to represent the property in other than actual status as of the date of the photos. 12. Unless otherwise stated in this report, the appraisers have no reason to believe that there may be hazardous materials stored and used at the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate 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 any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 13. If applicable, the distribution of the total valuation of this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal, no matter how similar and are invalid if so used. 14. No environmental or impact studies, special market studies or analysis, highest and best use analysis study or feasibility study has been requested or made unless otherwise specified in an agreement for services or in the report. Anderson & Carr, Inc. reserves the unlimited right to alter, amend, revise or rescind any of the statements, findings, opinions, values, estimates or conclusions upon any previous or subsequent study or analysis becoming known to the appraiser. 15. It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in this appraisal report. 16. The value estimated in this appraisal report is gross without consideration given to any encumbrance, lien, restriction, or question of title, unless specifically defined. The estimate of value in the appraisal report is not based in whole or in part upon the race, color, or national origin of the present owners or occupants of the properties in the vicinity of the property appraised. 17. It is assumed that the property conforms to all applicable zoning, use regulations, and restrictions unless a nonconformity has been identified, described, and considered in this appraisal report. 18. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in this report is based. 6

14 19. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 20. This appraisal report has been prepared for the exclusive benefit of the client and intended users, Delray Beach Community Redevelopment Agency. This report has been prepared for no other purpose and for use by no other person or entity than for use by the client for the purpose stated herein. Any other use of this appraisal is considered a misuse and thus the appraisers will not be held responsible for any outcome associated with use by another entity or for another purpose. 21. ACCEPTANCE OF, AND/OR USE OF THIS APPRAISAL REPORT CONSTITUTES ACCEPTANCE OF THE PRECEDING CONDITIONS. EXTRAORDINARY ASSUMPTIONS No Extraordinary Assumptions were utilized in the preparation of this appraisal. HYPOTHETICAL CONDITIONS No Hypothetical Conditions were utilized in the preparation of this appraisal. 7

15 AREA/LOCATION MAPS Block 800 Block 900 Block 700 Block 600 Parcel Parcel

16 Subject 9

17 PARCEL MAPS Block 600 Block

18 Block 700 and Parcel Block 700 Parcel

19 Block 800 and Parcel Block 800 Parcel

20 Block 900 Block

21 AERIAL PHOTOGRAPHS All Parcels Block 800 Block 900 Block 700 Block 600 Parcel Parcel

22 Block 600 Block

23 Block 700 and Parcel Block 700 Parcel

24 Block 800 and Parcel Block 800 Parcel

25 Block 900 Block

26 SUBJECT PROPERTY PHOTOS (TAKEN APRIL 25, 2018) Southwest 10 th Avenue, looking south Block 900 parcels, looking northeast from Southwest 10 th Avenue 19

27 Southwest 10 th Avenue, looking south Southwest 9 th Avenue, looking north 20

28 Block 800 parcels, looking northeast Block 800 parcels, looking southeast 21

29 Southeast 9 th Avenue, looking south West Atlantic Avenue, looking west from Southwest 9 th Avenue 22

30 Block 800 parcels, looking northeast Southeast 8 th Avenue, looking south 23

31 Southeast 8 th Avenue, looking north from Southeast 1 st Street West Atlantic Avenue, looking east from Southeast 7 th Avenue 24

32 Southeast 6 th Avenue, looking north 25

33 PURPOSE AND DATE OF VALUE The purpose of this appraisal is to estimate the market value, fee simple estate, of the subject property as of April 25, PROPERTY APPRAISED The subject property consists of 39 parcels of land, some of which are improved. The combined land area for all of the parcels is approximately 366,345 square feet of land area or 8.41 acres. We have valued the contiguous parcels within each block as one parcel; and the two outlier parcels have been valued separately. The subject parcels are located on the south side of West Atlantic Avenue, just east of Interstate 95 in Delray Beach. The parcels are between Southwest 10th Avenue and Southwest 6th Avenue in Delray Beach. The property addresses and characteristics are noted in the chart below and on the following page. The subject parcels are zoned CBD, Central Business District and RM, Multiple Family Residential, Medium Density by the City of Delray Beach. SUBJECT PARCELS Block/ No. Lot Lot Front Building PCN# Address Improved Zoning SF Acres Feet SF West Atlantic Avenue 39, Yes 5,811 CBD SW 6th Avenue 6, Yes 1,152 CBD SW 6th Avenue 6, No 0 CBD SW 6th Avenue 6, Yes 1,961 RM SW 6th Avenue 6, No 0 RM SW 6th Avenue 6, No 0 RM Easement 18, No 0 CBD West Atlantic Avenue 13, No 0 CBD SW 7th Avenue 8, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 RM SW 7th Avenue 6, No 0 RM Block 600 Total 156, ,924 26

34 SUBJECT PARCELS Block/ No. Lot Lot Front Building PCN# Address Improved Zoning SF Acres Feet SF West Atlantic Avenue 32, Yes 6,320 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 7th Avenue 6, No 0 CBD SW 8th Avenue 13, No 0 CBD SW 8th Avenue 6, Yes 728 CBD Block 700 Total 81, , SW 8th Avenue 6, No 0 RM Parcel Total 6, West Atlantic Avenue 2, No 0 CBD West Atlantic Avenue 3, No 0 CBD West Atlantic Avenue 3, No 0 CBD West Atlantic Avenue 6, No 0 CBD West Atlantic Avenue 6, No 0 CBD West Atlantic Avenue 2, No 0 CBD SW 8th Avenue 6, No 0 CBD SW 8th Avenue 6, No 0 CBD SW 8th Avenue 8, No 0 CBD SW 9th Avenue 31, No 0 CBD Block 800 Total 79, SW 8th Avenue 6, Yes 728 RM Parcel Total 6, SW 10th Avenue 7, No 0 CBD SW 10th Avenue 7, No 0 CBD SW 10th Avenue 7, No 0 CBD SW 10th Avenue 7, No 0 CBD SW 10th Avenue 7, No 0 CBD Parcel 900 Total 36, TOTAL SF/ACRES 366, ,700 27

35 The subject parcels will be valued based upon their highest and best use and also subject to the following development conditions per the client s instructions: 1. The development will be required to include a full service grocery store with on-site parking. 2. There will be several recommended retail uses, including a bank and pharmacy. 3. The development will be required to include workforce housing. This requirement can be met either on or off site. If off site, the developer could likely utilize single family lots in the neighborhood currently owned by the CRA. 4. Within the retail/commercial component of the development, there will be (3) three spaces reserved for local businesses in the immediate area. These will more than likely have reduced rent. 5. Local contractors must represent a portion of the employment hired to construct the improvements. In addition to the above, the parcels in Block 900 have no road frontage on West Atlantic Avenue like Blocks 600, 700 and 800. They are located directly behind a four story hotel which further inhibits their visibility from West Atlantic Avenue. One value will be placed on all of the parcels in Block 600 and on all of the parcels in Block 900. Block 700 and Block 800 each have an outlier parcel which will be valued separately so there will be a separate value for Block 700, Parcel 700-8, Block 800, and Parcel

36 LEGAL DESCRIPTION The legal descriptions were taken from the most recent deed for each parcel on file in the Public Records of Palm Beach County, Florida. SUBJECT PARCELS Block/ No. PCN# Address ORB/PG West Atlantic Avenue 24264/ SW 6th Avenue 26359/ SW 6th Avenue 23473/ SW 6th Avenue 29065/ SW 6th Avenue 27613/ SW 6th Avenue 27219/ Easement 28359/ West Atlantic Avenue 19915/ SW 7th Avenue 12110/ SW 7th Avenue 10995/ SW 7th Avenue 11730/ SW 7th Avenue 20411/ SW 7th Avenue 12530/ SW 7th Avenue 14266/ SW 7th Avenue 27701/ West Atlantic Avenue 26422/ SW 7th Avenue 12734/ SW 7th Avenue 12223/ SW 7th Avenue 13093/ SW 7th Avenue 13152/ SW 8th Avenue 20274/ SW 8th Avenue 16591/ SW 8th Avenue 26778/

37 SUBJECT PARCELS Block/ No. PCN# Address ORB/PG West Atlantic Avenue 10657/ West Atlantic Avenue 11330/ West Atlantic Avenue 11330/ West Atlantic Avenue 12182/ West Atlantic Avenue 12377/ West Atlantic Avenue 12377/ SW 8th Avenue 11330/ SW 8th Avenue 26799/ SW 8th Avenue 27806/ SW 9th Avenue 10609/ SW 8th Avenue 28632/1509/ SW 10th Avenue 27320/ SW 10th Avenue 26952/ SW 10th Avenue 19557/ SW 10th Avenue 19557/ SW 10th Avenue 19613/

38 Parcel ORB/PG 24264/0238 Parcel ORB/PG 26359/

39 Parcel ORB/PG 23473/0340 Parcel ORB/PG 29065/0079 Parcel ORB/PG 27613/1134 Parcel ORB/PG 27219/

40 Parcel ORB/PG 28359/1793 Parcel ORB/PG 19915/0747 Parcel ORB/PG 12110/

41 Parcel ORB/PG 10995/1391 Parcel ORB/PG 11730/1072 Parcel ORB/PG 20411/1567 Parcel ORB/PG 12530/

42 Parcel ORB/PG 14266/1085 Parcel ORB/PG 27701/1537 Parcel ORB/PG 26422/1570 Parcel ORB/PG 12734/

43 Parcel ORB/PG 12223/0585 Parcel ORB/PG 13093/0616 Parcel ORB/PG 13152/0981 Parcel ORB/PG 20274/

44 Parcel ORB/PG 16591/0233 Parcel ORB/PG 26778/1151 Parcel ORB/PG 10657/

45 Parcel 800-2; 800-3; and ORB/PG 11330/0805 Parcel ORB/PG 12182/

46 Parcel ORB/PG 12377/1271 Parcel ORB/PG 12377/1269 Parcel ORB/PG 26799/0660 Parcel ORB/PG 27806/1572 Parcel ORB/PG 10609/

47 Parcel ORB/PG 28632/1509; 1512 Parcel ORB/PG 27320/0456 Parcel ORB/PG 26952/1089 Parcel and ORB/PG 19557/

48 Parcel ORB/PG 19613/0419 DISCLOSURE OF COMPETENCY Per the Competency Rule contained within the Uniform Standards of Professional Appraisal Practice, the appraisers hereby affirm that they are competent to complete the appraisal assignment for which they have been engaged by the client. INTENDED USE AND USER The intended use of this report is to assist the client and intended user in establishing a purchase or selling price. The intended user of this appraisal report, the Delray Beach Community Redevelopment Agency, has been assembling properties in this neighborhood for future redevelopment. The subject sites are zoned CBD, Central Business District and RM, Multiple Family Residential, Medium Density and are all within the boundaries of the West Atlantic Avenue Overlay Redevelopment District. This neighborhood is destined for assemblage and future redevelopment by the Delray Beach Community Redevelopment Agency with a larger scale mixed use project. The Delray Beach Community Redevelopment Agency has stated that properties within the first block from West Atlantic Avenue in this neighborhood have rezoning or ancillary use (parking, community park, etc.) potential. The subject properties are all within this first block and all within the CBD, Central Business District redevelopment area. This report has been prepared utilizing generally accepted appraisal guidelines, techniques, and methodologies as contained within the Uniform Standard of Professional Practice (USPAP), as promulgated by the Appraisal Foundation. CLIENT Mr. Jeffrey A. Costello AICP Executive Director Delray Beach CRA 20 N. Swinton Avenue Delray Beach, FL

49 DEFINITIONS Market Value 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 seller each acting prudently, 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 interests; (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 normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and the Interagency Appraisal and Evaluation Guidelines, Federal Register, Volume 75, No. 237, December 10, 2010). PROPERTY RIGHTS APPRAISED The property rights appraised are those of the fee simple estate. 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 (The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015). TYPICAL BUYER PROFILE We found that buyers of similar properties in this market are primarily investors who are purchasing property in this urban infill area for assemblage for potential redevelopment. The sales comparison approach reflects the actions of typical buyers. SCOPE OF ASSIGNMENT The traditional appraisal approaches include the cost approach, the sales comparison approach, and the income capitalization approach. We have considered all three approaches in this assignment, and determined the sales comparison approach to be applicable in this assignment. The cost and income capitalization approaches are not applicable in the valuation of land. In the process of gathering data for the sales comparison approach to value, we conducted a search of our appraisal files and public information sources such as the Palm Beach County Property Appraiser s public access system and the Palm Beach County Clerk s Office, as well as subscription based information services such as CoStar.com and RealQuest.com for comparable sales in the relevant market area. We searched for the most similar sales to the subject property. 42

50 The sales ultimately selected for further analysis were the best comparable sales we were able to find in this market. We obtained and verified additional information on the comparable properties with a party to the transaction, or a broker or agent of the parties when possible. We inspected the exterior of the subject property and the comparables. Physical data pertaining to the subject property was obtained from an inspection of the premises and public information sources such as the Palm Beach County Property Appraiser s records. Other data pertaining to the subject property was obtained from the Palm Beach County Clerk s and Tax Collector s offices and local planning and zoning departments. The product of our research and analysis is formulated within this report for analysis of and direct comparison with the subject property being appraised. Additionally, we have used original research performed in preparation of other appraisals by this office, which is considered appropriate for the subject property. We have valued the subject parcels based upon their highest and best use and also subject to the following development conditions, per the client s instructions: 1. The development will include a full service grocery store with on-site parking. 2. There will be several retail uses, such as a bank and/or pharmacy. 3. The development will include workforce housing. This requirement can be met either on or off site. If off site, the developer could utilize the single family lots in the neighborhood currently owned by the CRA. 4. Within the retail/commercial component of the development, there will be (3) three spaces reserved for local businesses in the immediate area. These will more than likely have reduced rent. 5. A local contractor must be awarded the construction contract for the development. We make no warranty as to the authenticity and reliability of representations made by those with whom we verified sales, rental, and other information. We have taken due care in attempting to verify the data utilized in this analysis. We based our analysis and conclusions on overall patterns rather than on specific representations. Per USPAP Standard Rule 2-2 this analysis is an Appraisal Report presented in written format. The analysis and conclusions of this appraisal assignment are presented in a narrative appraisal report. 43

51 PALM BEACH COUNTY SUMMARY Geography Palm Beach County is located along Florida s Southeast coast. It is bordered by Martin County to the north, Hendry and Glades Counties to the west, Broward County to the south and the Atlantic Ocean to the east. The northwestern portion of the county is made up of Lake Okeechobee, the largest freshwater lake in Florida. The county is located approximately 80 miles north of Miami and 260 miles south of Jacksonville. Palm Beach County encompasses approximately 2,203 square miles with roughly 1,974 square miles of land area, 229 square miles of water, and 47 miles of coastline. According to the U.S. Census Bureau s 2015 estimate, Palm Beach County has a population of 1,422,789; an increase of 7.8 percent from the 2010 census statistics of 1,320,134. The vast majority of the county s growth has been a result of in-migration from the northern states as well as from Miami-Dade and Broward Counties to the south. Palm Beach County ranks as the third most populous county in Florida behind Miami-Dade and Broward Counties. The county includes 38 incorporated municipalities; the largest of which is West Palm Beach, the county seat. Boca Raton, located at the south end of the county, is the second largest city and one of the highest income retail trade areas in the United States. Palm Beach County along with Broward and Miami-Dade Counties to the south are known as the Gold Coast. At 110 miles north-south, it is the second longest urbanized area in the United States behind the New York Metropolitan area. 44

52 Transportation Interstate 95 is a major north/south thoroughfare that connects Palm Beach County to the southeastern and northeastern portions of the state, and then continues along the Eastern Seaboard to Maine. Florida s Turnpike also passes through the county and provides connections to the north central area of the state and Miami to the south. Other north/south highways include A1A, U.S. Highway 1, Congress Avenue, Military Trail and U.S There are numerous local east/west roadways with Southern Boulevard providing access to the western portions of the county, as well as Florida s West Coast. The expanded Palm Beach International Airport is conveniently located to provide air service to and from Palm Beach County. The airport s growth necessitated a direct access overpass interchange with I-95 which significantly improved ingress and egress for PBIA. Other transportation services in Palm Beach County include the Florida East Coast Railway for rail service and The Port of Palm Beach for the shipping and cruise industries. Tri-Rail provides commuter service through Miami-Dade, Broward, and Palm Beach Counties. Palm Beach County provides a bus service for transportation throughout the county and several of the local municipalities have various forms of local downtown transportation including trolley service and electric cars. Economy The unemployment rate in Palm Beach County reached a peak of 12 percent in July As of February 2018, the unemployment rate was 3.7 percent with a net annual change of -0.6 percent according to the U.S. Bureau of Labor Statistics. Tourism is the county's leading industry, employing over 70,000 people and generating about two billion dollars annually. The other multi-billion dollar industries are construction and agriculture. All three industries experienced some decline due to economic conditions from 2007 until the middle of The economy began to stabilize in mid-2011 and these industries continued to experience signs of recovery through the first quarter of The largest employer in Palm Beach County is the Palm Beach County School Board, the fifth largest school district in Florida and the eleventh largest in the United States, with over 27,000 employees and a $2.9 billion dollar budget for the school year. The five largest private sector service producing employers according to the Business Development Board of Palm Beach County are shown in the following table. Palm Beach County s favorable economic profile is partially defined by its biotech sector; however, a growing educational sector has emerged to enhance the economic base. Colleges and universities in the county include Palm Beach State College, two Florida Atlantic University campuses, Palm Beach Atlantic University, and Lynn University. FIVE LARGEST PRIVATE SECTOR EMPLOYERS Employer Type of Business Employees Tenet Healthcare Corporation Healthcare 6,100 NextEra Energy, Inc. (FP&L parent co.) Utilities 3,804 G4S Secure Solutions (USA) Inc. Security Services 3,000 HCA, Inc. Healthcare 2,714 Bethesda Hospital, Inc. Healthcare 2,643 45

53 Commercial Real Estate According to Marcus & Millichap s Special Report: Emerging Trends, 4 th Quarter 2017 there is a positive outlook for Amidst higher long term interest rates and a steady decline in vacancy rates, the commercial property sectors are performing well. The 2018 economic outlook points to another positive year for apartment, retail, industrial and office properties. Limited additions to supply are helping reduce vacancy and expand rental rates. Consistent job growth and a resumption of favorable demographic trends are converging to provide momentum in Palm Beach County growth. A growing population of office workers due to job growth, expanded options for renters and strengthening job prospects are sparking resurgence in relocations from outside the county. Palm Beach County has experienced a steady pace of employment in fields that serve the older segment of the population including healthcare, retail and wealth management. Hiring in these areas increased the sizable pool of prospective tenants and a consistent flow of new residents into the county. In all, the forecast for Palm Beach County in 2018 is positive. According to CoStar s first quarter 2018 data, the Palm Beach County commercial real estate market has experienced little change from the fourth quarter 2017 with specifics of each property class as follows. Industrial The Palm Beach County industrial market ended first quarter 2018 with a vacancy rate of 2.9 percent, up over the previous quarter. Rental rates ended the first quarter 2018 at $10.72 per square foot, an increase over the previous quarter. Net absorption totaling negative (94,363) square feet in the first quarter Vacant sublease space increased ending the quarter at 30,555 square feet. A total of one building delivered to the market, totaling 3,400 square feet with 184,322 square feet still under construction at the end of the quarter. 46

54 Office The total vacancy rate for the Palm Beach County office market first quarter 2018 was 10.3 percent. Rental rates averaged $29.57 per square foot, an increase over the previous quarter. Net absorption for the first quarter 2018 totaling negative (138,544) square feet. Vacant sublease space increased in the quarter ending at 176,723. A total of two buildings delivered to the market in the quarter totaling 18,200 square feet with 297,744 square feet still under construction at the end of the quarter. Retail The Palm Beach County retail market did not experience much change in market conditions in the first quarter The vacancy rate went from 3.9 percent the previous quarter to 4.0 percent in the current quarter. Average quoted rental rates increased from the previous quarter to $24.24 per square foot per year. Vacant sublease space decreased by (8,984) square feet. The first quarter 2018 net absorption rate was a positive 6,391 square feet. A total of seven retail buildings with 47,131 square feet were delivered, with 548,828 square feet still under construction at the end of the quarter. 47

55 Rental Apartments According to Marcus & Millichap s Multifamily North American Investment Forecast 2018, the Palm Beach County apartment sector entered 2018 holding strong prospects of attaining higher rents for the eighth consecutive year, though with developers adding new apartments in 2017, growth is expected to be slower than the previous year. This same report indicates the most significant demographic factor driving the multifamily market in Palm Beach County is the in-migration of the retiree population which largely supports employment in the service sector. Due to this demand, the younger population in Palm Beach County is growing faster than in the remainder of South Florida, altering the character of the Palm Beach County market. Many employed in the service sector are part of the younger generation attending local colleges and universities, and have a high propensity to rent. Consistent hiring and robust household formation will drive the continued demand for apartments. The labor market is also supported by the growing number of biotech firms located in Palm Beach County. High home prices also contribute to the renter pool. Though rent growth is anticipated to slow due to influx of new properties in 2017, this sector is expected to retain a positive outlook for 2018 because of increased demand. 48

56 Residential Real Estate 49

57 Conclusion Some of the factors that fed Palm Beach County s past growth diminished in 2007 with a decline in the national economy which included reduced home prices and high unemployment. This trend continued until the middle of 2011 when signs of stabilization began to emerge. In the fourth quarter 2011, sales activity began to show signs of recovery. A slow but steady rebound in the market has continued into the first part of Unemployment rates have steadily decreased and home prices are trending upward. The market is experiencing a steady climb from the depths of the recession which has spurred investors into action. The long-term outlook for Palm Beach County is considered positive due to the broad employment base and desirability as a winter tourist destination. As population grows, more supporting commercial, industrial, and service development will be required. These factors, combined with a finite quantity of developable land create a positive real estate outlook for the future. 50

58 NEIGHBORHOOD SUMMARY 51

59 According to the Delray Beach Community Redevelopment Plan, The subject neighborhood is located in Sub Area #3: "West Atlantic Avenue Commercial Corridor". This sub-area, containing approximately 187 acres, generally comprises a one-block (600') deep corridor on each side of Atlantic Avenue from I-95 to West 3rd Avenue. The second block of NW 5th Avenue neighborhood commercial area, located between NW 1st and NW 2nd Streets is also included in this sub-area, as well as the north half of the second block, south of SW 1st Street. The Delray Beach CRA has actively been purchasing and redeveloping properties in the overall general areas, both north and south of Atlantic Avenue from Swinton Avenue to 12 th Avenue. Some of the major developments in the area include the Palm Beach County Municipal Building and Courthouse, the Championship Tennis Facility and the City Hall and Library facilities. There are also numerous new mixed use and commercial developments in the area including the Fairfield Inn and Suites at the corner of SW 10 th Avenue and West Atlantic Avenue. Atlantic Avenue is the major east-west artery serving suburban Delray Beach. It is a divided four lane highway west of Swinton Avenue and a narrow hometown two lane main-street east of Swinton Avenue. There are interchanges at I-95 and the Florida Turnpike. The roadway in the downtown core is fully developed with only a few remaining vacant tracts west of Swinton Avenue. Historically the downtown core was primarily commercial on Atlantic Avenue and US 1 with numerous, generally single family, residential uses off of the major roadways with light industrial uses along the CSX railroad tracks. More recently the downtown core expanded for several blocks to the north and south of Atlantic Avenue and in some areas for a block or so to the east and west of US 1. Furthermore, the light industrial uses made way to commercial and residential redevelopment. The downtown core is now a fully mixed-use locale with commercial and residential uses on and off the main thoroughfares. Redevelopment in downtown has continued the quaint, hometown feel through low density and preservation regulations. Many historic homes and buildings have been fully renovated and incorporated into the redevelopment mix and building height restrictions have resulted in no unsightly high-rises. The redevelopment of the subject neighborhood will continue with these trends. For the past 40 years, the Downtown Development Authority has assisted in successfully branding Delray Beach as the Village by the Sea. The Delray Beach DDA was created by Resolution 9-71, which became law on March 22, 1971, as a dependent district of the City of Delray Beach. The DDA Mission is to enhance and stimulate balanced economic growth through position marketing activities that engage Downtown businesses, residents and visitors while creating a clean, safe, physical and experiential place to live, work and invest. The main areas of involvement in downtown redevelopment include: Marketing and Promotions; Economic development programs; Security and crime prevention; Traffic and parking; Clean and safe; Reviewing the City Comprehensive Plan within the DDA boundaries; Housing and improvement of coordination with local boards and city departments. In addition to the main areas mentioned above, the DDA also works closely with merchants to develop seasonal retail awareness campaigns to generate traffic and sales. 52

60 In September 2010, Atlantic Avenue was voted Best Main Street in Florida as part of the 15th Annual Best of Florida Awards given out by Florida Monthly Magazine, a publication with more than 800,000 readers. The September 2010 issue of the magazine highlighted Downtown Delray Beach's main thoroughfare in a "Best Of" feature that included everything from Best Day Trip to Best Museum. Although the subject s immediate neighborhood is outside of the intensive retail environment centered along Atlantic Avenue and Federal Highway it is benefitted by being just west of the district as well as to the west of the Pineapple Grove area. The current economic and market conditions in the overall western Delray Beach area are stable. The downtown of Delray Beach continues to be one of the major hot spots in Palm Beach County for restaurants, nightlife and cultural events in a pedestrian friendly environment. The Atlantic Avenue corridor and those properties with direct frontage in the best blocks have been the most resilient price/value wise, saw the least decline during the recession of the late 2000 s and are now seeing dramatic gains. In general, the subject neighborhood is an older well-established neighborhood that has good redevelopment potential. The Delray Beach CRA has been actively assembling parcels for redevelopment on both the north and south sides of Atlantic Avenue within this corridor. We believe that the neighborhood will maintain its socioeconomic status in relation to surrounding communities for the foreseeable future. 53

61 PROPERTY DATA Taxpayer of Record Delray Beach Community Redevelopment Agency Palm Beach County Property Control Number(s) SUBJECT PARCELS Block/ No. PCN# Address West Atlantic Avenue SW 6th Avenue SW 6th Avenue SW 6th Avenue SW 6th Avenue SW 6th Avenue Easement West Atlantic Avenue SW 7th Avenue SW 7th Avenue SW 7th Avenue SW 7th Avenue SW 7th Avenue SW 7th Avenue SW 7th Avenue West Atlantic Avenue SW 7th Avenue SW 7th Avenue SW 7th Avenue SW 7th Avenue SW 8th Avenue SW 8th Avenue SW 8th Avenue 54

62 SUBJECT PARCELS Block/ No. PCN# Address Assessed Value and Taxes for West Atlantic Avenue West Atlantic Avenue West Atlantic Avenue West Atlantic Avenue West Atlantic Avenue West Atlantic Avenue SW 8th Avenue SW 8th Avenue SW 8th Avenue SW 9th Avenue SW 8th Avenue SW 10th Avenue SW 10th Avenue SW 10th Avenue SW 10th Avenue SW 10th Avenue The following information was taken from the Palm Beach County Property Appraiser's and Tax Collector's web sites. SUBJECT PARCELS Block/ No. PCN# Land Appraised Value Assessed and Taxable Values Taxes Improvements Total Market Value Assessed Value Exemption Amount Taxable Value Ad Valorem Tax Non Ad Valorem Tax Total Tax $303,011 $711,646 $1,014,657 $795,168 $795,168 $0 $0 $1,081 $1, $52,424 $9,784 $62,208 $62,208 $62,208 $0 $0 $236 $ $28,924 $0 $28,924 $19,444 $19,444 $0 $0 $19 $ $28,924 $158,677 $187,601 $87,378 $50,000 $37,378 $937 $236 $1, $36,155 $0 $36,155 $36,155 $36,155 $0 $0 $27 $ $28,924 $0 $28,924 $19,444 $19,444 $0 $0 $64 $ $141,696 $0 $141,696 $141,696 $141,696 $0 $0 $0 $ $105,209 $0 $105,209 $105,209 $105,209 $0 $0 $24 $ $68,148 $0 $68,148 $68,148 $68,148 $0 $0 $15 $ $52,424 $0 $52,424 $52,424 $52,424 $0 $0 $12 $ $52,424 $0 $52,424 $52,424 $52,424 $0 $0 $19 $19 55

63 SUBJECT PARCELS Block/ No. PCN# Land Appraised Value Assessed and Taxable Values Taxes Improvements Total Market Value Assessed Value Exemption Amount Taxable Value Ad Valorem Tax Non Ad Valorem Tax Total Tax $52,424 $0 $52,424 $52,424 $52,424 $0 $0 $12 $ $52,424 $0 $52,424 $52,424 $52,424 $0 $0 $12 $ $28,924 $0 $28,924 $19,444 $19,444 $0 $0 $12 $ $28,924 $0 $28,924 $28,924 $28,924 $0 $0 $64 $ $251,484 $458,424 $709,908 $709,908 $177,477 $532,431 $11,470 $5,779 $17, $53,199 $0 $53,199 $53,199 $53,199 $0 $0 $12 $ $53,207 $0 $53,207 $53,207 $53,207 $0 $0 $12 $ $53,214 $0 $53,214 $53,214 $53,214 $0 $0 $12 $ $53,222 $0 $53,222 $53,222 $53,222 $0 $0 $12 $ $106,414 $0 $106,414 $106,414 $106,414 $0 $0 $24 $ $53,222 $5,779 $59,001 $59,001 $59,001 $0 $0 $12 $ $28,924 $0 $28,924 $19,444 $19,444 $0 $0 $64 $ $16,491 $0 $16,491 $16,491 $16,491 $0 $0 $4 $ $26,691 $0 $26,691 $26,691 $26,691 $0 $0 $7 $ $26,691 $0 $26,691 $26,691 $26,691 $0 $0 $7 $ $52,777 $0 $52,777 $52,777 $52,777 $0 $0 $12 $ $52,777 $0 $52,777 $52,777 $52,777 $0 $0 $12 $ $19,535 $0 $19,535 $22 $22 $0 $0 $4 $ $47,263 $0 $47,263 $47,263 $47,263 $0 $0 $13 $ $47,263 $0 $47,263 $47,263 $47,263 $0 $0 $64 $ $67,718 $0 $67,718 $67,718 $67,718 $0 $0 $64 $ $244,197 $0 $244,197 $244,197 $244,197 $0 $0 $55 $ $28,924 $64,051 $92,975 $92,975 $92,975 $0 $0 $236 $ $55,830 $0 $55,830 $55,830 $55,830 $0 $0 $64 $ $55,746 $0 $55,746 $55,746 $55,746 $0 $0 $32 $ $55,761 $0 $55,761 $55,761 $55,761 $0 $0 $19 $ $55,769 $0 $55,769 $55,769 $55,769 $0 $0 $12 $ $55,792 $0 $55,792 $55,792 $55,792 $0 $0 $12 $12 A typical informed buyer would recognize the possibility of a reassessment following a sale of the property and the possibility that taxes could change as a result, if the assessed value is substantially different than the true market value. Our value conclusion does not discount for any taxes owed on the property, current or delinquent. The value assumes the property is free and clear and not subject to any prior year s delinquencies or outstanding tax certificates. The appraisers strongly suggest any potential buyer, mortgagee, or other investor in the property fully investigate the tax status of the subject property with the County s Tax Collectors office. 56

64 Census Tract The subject property is located in census tract & Census Tract Map Subject 57

65 Flood Zone Designation The subject property is located on the National Flood Insurance Program Map on Community Panel Number 12099C0979F, effective date of October 5, The subject appears to lie in an area designated as Zone X (unshaded). Flood Zone X (unshaded) is determined to be outside the 0.2% annual chance floodplain. Flood Map Subject 58

66 Zoning and Future Land Use The subject property s use is dictated by the City of Delray Beach Zoning Code and Comprehensive Plan. The City of Delray Beach zoning and future land use maps indicate the subject property has a zoning designation of CBD, Central Business District and RM, Multiple Family Residential, Medium Density with an underlying land use designation of CC, Commercial Core and MD, Medium Density Residential 5-12 du/acre. The subject parcels are also within the West Atlantic Avenue Overlay Redevelopment District. This Overlay District limits the height of new development along Atlantic Avenue to 48 feet; however, heights can be increased to 60 feet in the portion of the West Atlantic Avenue redevelopment area between NW 1 st Avenue and NW 3 rd Avenue and between SW 1 st Avenue and SW 4 th Avenue. The Overlay District also addresses commercial encroachment into existing residential areas. Limits on the depth of commercial development from Atlantic Avenue ranging from 150 feet to 300 feet were proposed in In order to allow for some flexibility for commercial developments while protecting existing residential areas the plan was modified. To allow for some flexibility in the applications, commercial developments are permitted to encroach beyond the 150 feet line with the approval of a Conditional Use by the City Commission. This provision allows the City to review, on a case by case basis, more intense developments than would be permitted under the current development guidelines. The intended user of this appraisal report, the Delray Beach Community Redevelopment Agency, has been assembling properties in this neighborhood for future redevelopment. The subject sites are zoned CBD, Central Business District and RM, Multiple Family Residential, Medium Density and are all within the boundaries of the West Atlantic Avenue Overlay Redevelopment District. This neighborhood is destined for assemblage and future redevelopment by the Delray Beach Community Redevelopment Agency with a larger scale mixed use project. The Delray Beach Community Redevelopment Agency has stated that properties within the first block from West Atlantic Avenue in this neighborhood have rezoning or ancillary use (parking, community park, etc.) potential. The subject properties are all within this first block and all within the CBD, Central Business District redevelopment area. Permitted uses under this zoning category generally include, but are not limited to; commercial; retail; multi-family; single family; parking lot; and public educational facilities. The subject s current uses of commercial and residential are considered interim uses given the age of the subject improvements. The current zoning is in harmony with the future land use designation. The appraisers have not independently verified that the subject complies with current site development regulations (setbacks, site coverage, etc.). It has been assumed that by virtue of the subject s on-going use, should there be any areas of non-compliance, a variance has been issued or some other form of special exception has been made. 59

67 Zoning Map Subject Parcels Concurrency The strongest growth control measure ever imposed was passed by the Florida Legislature and became effective on February 1, This was mandated by Chapter 163, Florida Statutes, otherwise known as the Growth Management Law. One provision of this law is referred to as Concurrency which dramatically limits the ability to develop real property. It is basically the requirement that adequate infrastructure be available to serve new development. Eight types of infrastructure are affected including traffic, potable water, sewer, drainage, solid waste, recreation and open space, mass transit, and fire rescue. In May of 2011, House Bill 7172 amended the Growth Management act in an effort to spur economic growth through streamlining and lessening growth management controls. Transportation concurrency requirements were exempted in dense urban land areas with populations of at least 1,000 people per square mile. Also, within dense urban land areas, the DRI process has been exempted. State review of local comprehensive plans was streamlined and zoning changes are now allowed to be considered concurrently with land use plan amendments. It is the appraisers understanding that the subject is not subject to any concurrency restrictions. Should the property be altered or redeveloped, the matter of concurrency would need to be revisited at that time. 60

68 Utilities The following utilities are available to the subject property: Municipal water and sewer, electricity, and telephone. Subject Property Sales History The appraisers have not been provided with a title abstract on the property appraised nor have they conducted a title search of their own. The Palm Beach County Property Appraiser s records indicate the following for each parcel: SUBJECT PARCELS Block/ No. PCN# Prior Sale Date ORB/PG Total Sale Price Sale Price/ SF Land /15/ /0238 $1,895,000 $ /26/ /1532 $80,000 $ /28/ /0340 $88,000 $ /28/ /0079 $377,000 $ /16/ /1134 $191,000 $ /09/ /0568 $95,000 $ /19/ /1793 $10 $ /08/ /0747 $1,012,500 $ /01/ /1281 $66,900 $ /04/ /1391 $70,000 $ /04/ /1072 $45,000 $ /30/ /1567 $283,500 $ /21/ /0516 $39,900 $ /11/ /1085 $73,500 $ /17/ /1537 $180,000 $ /14/ /1570 $1,875,000 $ /16/ /0626 $45,000 $ /28/ /0585 $40,000 $ /15/ /0616 $58,900 $ /04/ /0981 $57,000 $ /26/ /0908 $500,000 $ /25/ /0233 $88,000 $ /07/ /1151 $117,300 $

69 SUBJECT PARCELS Block/ No. PCN# Prior Sale Date ORB/PG Total Sale Price Sale Price/ SF Land /23/ /0834 $20,000 $ /24/ /0805 $100,000 $ /24/ /0805 $100,000 $ /07/ /1645 $54,000 $ /13/ /1271 $50,000 $ /13/ /1269 $50,000 $ /24/ /0805 $100,000 $ /06/ /0660 $225,000 $ /10/ /1572 $289,000 $ /13/ /1228 $134,500 $ /27/ /1509/1512 $180,000 $ /21/ /0456 $365,000 $ /11/ /1089 $150,000 $ /18/ /0515 $376,750 $ /18/ /0515 $376,750 $ /23/ /0419 $235,050 $32.31 To the appraisers' knowledge the subject property is not currently listed for sale or subject to a current purchase agreement. Site Analysis The following analysis is based upon a personal inspection of the site and Palm Beach County Public Records. Location The subject property is located south side of West Atlantic Avenue, just east of Interstate 95 in Delray Beach. The parcels are between Southwest 10th Avenue and Southwest 6th Avenue in Delray Beach. See the chart on the following page for each parcels address. The property address is south side of West Atlantic Avenue between Southwest 10th Avenue and Southwest 6th Avenue, Delray Beach, Florida

70 Size and Shape We have relied on the site size for the property from Public Records. All of the parcels are basically rectangular in shape; however, when assembled, they have an irregular configuration. The subject s total site area is approximately 366,345 square feet or 8.41 acres. See the following chart for the individual and block area sizes. SUBJECT PARCELS Block/ No. Lot Lot Front Building Owner Entity PCN# Address Improved Zoning SF Acres Feet SF Delray Beach CRA West Atlantic Avenue 39, Yes 5,811 CBD Delray Beach CRA SW 6th Avenue 6, Yes 1,152 CBD Delray Beach CRA SW 6th Avenue 6, No 0 CBD Delray Beach CRA SW 6th Avenue 6, Yes 1,961 RM Delray Beach CRA SW 6th Avenue 6, No 0 RM Delray Beach CRA SW 6th Avenue 6, No 0 RM Delray Beach CRA Easement 18, No 0 CBD Delray Beach CRA West Atlantic Avenue 13, No 0 CBD Delray Beach CRA SW 7th Avenue 8, No 0 CBD Delray Beach CRA SW 7th Avenue 6, No 0 CBD Delray Beach CRA SW 7th Avenue 6, No 0 CBD Delray Beach CRA SW 7th Avenue 6, No 0 CBD Delray Beach CRA SW 7th Avenue 6, No 0 CBD Delray Beach CRA SW 7th Avenue 6, No 0 RM Delray Beach CRA SW 7th Avenue 6, No 0 RM Block 600 Total 156, , Delray Beach CRA West Atlantic Avenue 32, Yes 6,320 CBD Delray Beach CRA SW 7th Avenue 6, No 0 CBD Delray Beach CRA SW 7th Avenue 6, No 0 CBD Delray Beach CRA SW 7th Avenue 6, No 0 CBD Delray Beach CRA SW 7th Avenue 6, No 0 CBD Delray Beach CRA SW 8th Avenue 13, No 0 CBD Delray Beach CRA SW 8th Avenue 6, Yes 728 CBD Block 700 Total 81, , Delray Beach CRA SW 8th Avenue 6, No 0 RM Parcel Total 6,

71 SUBJECT PARCELS Block/ No. Lot Lot Front Building Owner Entity PCN# Address Improved Zoning SF Acres Feet SF Delray Beach CRA West Atlantic Avenue 2, No 0 CBD Delray Beach CRA West Atlantic Avenue 3, No 0 CBD Delray Beach CRA West Atlantic Avenue 3, No 0 CBD Delray Beach CRA West Atlantic Avenue 6, No 0 CBD Delray Beach CRA West Atlantic Avenue 6, No 0 CBD Delray Beach CRA West Atlantic Avenue 2, No 0 CBD Delray Beach CRA SW 8th Avenue 6, No 0 CBD Delray Beach CRA SW 8th Avenue 6, No 0 CBD Delray Beach CRA SW 8th Avenue 8, No 0 CBD Delray Beach CRA SW 9th Avenue 31, No 0 CBD Block 800 Total 79, Delray Beach CRA SW 8th Avenue 6, Yes 728 RM Parcel Total 6, Delray Beach CRA SW 10th Avenue 7, No 0 CBD Delray Beach CRA SW 10th Avenue 7, No 0 CBD Delray Beach CRA SW 10th Avenue 7, No 0 CBD Delray Beach CRA SW 10th Avenue 7, No 0 CBD Delray Beach CRA SW 10th Avenue 7, No 0 CBD Block 900 Total 36, The parcels in Block 900 have no road frontage on West Atlantic Avenue like Blocks 600, 700 and 800. They are located directly behind a four story hotel which further inhibits their visibility from West Atlantic Avenue. Topography and Drainage The site is level and near road grade. Drainage appears to be adequate for its current use. No apparent drainage problems were noted during the inspection. However, we have not had the opportunity to visit the site during a time of heavy rainfall. It is assumed that the subject does not suffer from any detrimental drainage problems. Access Access is via West Atlantic Avenue, Southwest 10th Avenue, Southwest 9th Avenue, Southwest 8th Avenue, Southwest 7th Avenue and Southwest 6th Avenue. 64

72 Easements or Encroachments Typical utility easements are believed to exist. A survey that would delineate the boundaries of any potentially detrimental easements or encroachments was not made available to the appraisers. The appraisers did not note any such conditions during our on-site inspection, nor did the property owner disclose any. We have no reason to believe that there are any easements or encroachments on the property that would affect its use in such a way as to have a negative impact on value. Soil/Environmental Conditions We have not been provided with nor have we commissioned a soil or sub-soil condition report. The subject s land appears to be composed of typical loose South Florida sand. The appraisers have no reason to believe that there may be hazardous materials stored and used at the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate 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 any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 65

73 HIGHEST AND BEST USE The Appraisal Institute defines highest and best use as follows: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Alternatively, the probable use of land or improved property specific with respect to the user and timing of the use that is adequately supported and results in the highest present value. (Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015). The analysis of highest and best use normally applies these considerations in a three step process, involving the analysis of the highest and best use of the site as if vacant, determination of the ideal improvement, and a comparison of the existing improvement with the ideal improvement, in order to estimate the highest and best use as improved. The subject is vacant land, therefore only the first two steps apply. The subject s individual parcels range in size from 2,152 to 39,505 square feet and the block areas have a size range from 36,394 square feet up to 156,355 square feet. All could physically support a number of uses. These physically possible uses must be legal, reasonable, probable, and a logical continuation of surrounding uses within the subject property's neighborhood. The subject parcels are currently zoned CBD, Central Business District with an underlying future land use of CC, Commercial Core and R-1-A, Single Family Residential District with an underlying land use of LD, Low Density Residential, 0-5 du/acre by the City of Delray Beach. The parcels are also within the boundaries of the West Atlantic Avenue Overlay Redevelopment District. The surrounding area has been developed mainly with residential uses in the past on the interior secondary roadways and commercial uses along the major roadway, West Atlantic Avenue. The intended user of this appraisal report, the Delray Beach Community Redevelopment Agency, has been assembling properties in this neighborhood for future redevelopment. The subject sites are zoned CBD, Central Business District and RM, Multiple Family Residential, Medium Density and are all within the boundaries of the West Atlantic Avenue Overlay Redevelopment District. This neighborhood is destined for assemblage and future redevelopment by the Delray Beach Community Redevelopment Agency with a larger scale mixed use project. The Delray Beach Community Redevelopment Agency has stated that properties within the first block from West Atlantic Avenue in this neighborhood have rezoning or ancillary use (parking, community park, etc.) potential. The subject properties are all within this first block and all within the CBD, Central Business District redevelopment area. Given the fact that the subject parcels which are improved have older improvements, and also considering the location of the subject sites within the redevelopment area as well as the underlying land value, it is our opinion that the highest and best use of the subject properties is for assemblage with adjoining parcels for mixed use redevelopment. 66

74 EXPOSURE AND MARKETING TIME Exposure time is: 1) The time a property remains on the market; 2) 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; 3) A retrospective estimate based on an analysis of past events assuming a competitive and open market. Marketing time is an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions address the determination of reasonable exposure and marketing time. (Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015). Financing for commercial properties appears to be readily available at this time. Most properties offered for sale have been exposed on the market for six to twelve months or longer. Financing for commercial properties appears to be readily available at this time. Most properties offered for sale have been exposed on the market for six to twelve months or longer. In their 4 th quarter 2017 issue, PwC Real Estate Investor Survey published by PwC, indicates an average marketing time of approximately 16 months for properties in the National Development Land market. The data ranged from 2010, and 2014 to See the chart below. The overall range was listed at 6 to 36 months. PwC does not report the National Development Land market reports in every issue. This is the most recent data available. 67

75 The CoStar Group reported the sale of 29 vacant commercial land properties in Palm Beach County from January 2016 through April Of the 29 properties they reported a marketing time for 17 of them. The marketing time ranged from 18 days to 2,093 days, with an average of 519 days. We note that the Costar data is skewed by many properties that were significantly overpriced by unmotivated sellers and/or were not properly marketed and languished on the market for several years. Many of the properties in the CoStar research were overpriced and only sold after the asking prices were significantly reduced. A properly priced property would sell more quickly. Considering the preceding, as well as sales that have taken place in the local market, and assuming a prudent pricing strategy, we estimate an exposure time of eight to twelve months. Looking forward, we feel this would be a reasonable estimate for marketing time as well. 68

76 COMMERCIAL PARCELS - SALES COMPARISON APPROACH The sales comparison approach is the process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised, identifying appropriate units of comparison, and making qualitative comparisons with or quantitative adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, marketderived elements of comparison. (Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015.) The sales comparison approach requires that the appraiser locate recent sales of similar properties and through an adjustment process arrive at an indication of what these properties would have sold for if they possessed all of the salient characteristics of the subject property. These adjusted sales prices are then correlated into an estimate of the market value of the property via the sales comparison approach to value. A search of the Palm Beach County official records, local multiple listing service records, discussions with local brokers and appraisers and a personal inspection of the subject area produced several sales of similar type properties. The sales used in the analysis were the best comparables that we were able to verify with public records and/or a party to the transaction. The following pages feature a detailed write up of each comparable used in the analysis, a location map and summary of the selected comparable sales data, which is followed by a discussion of the pertinent adjustments and conclusion of value. Purchase Order A&C Job No.:

77 SALE NO Northwest 10th Avenue, Delray Beach, FL AC File No.: ID: OR Book/Page: 28655/01261 Sale Status: Sale Type: Land Sub-Type: Commercial Date: October 20, 2016 Grantor: Grantee: Legal: Carolyn B. Morgan & James Edward Bradley Delray Beach Community Redevelopment Agency South feet of North feet of East 125 feet of West 150 feet of South One Quarter of Lot 10, S/D Section 17, Township 46 South, Range 43 East, as in Plat Book 1, page 4, Palm Beach County Records. Folio No.: Location: Zoning: Land Use: Utilities: East side of Northwest 10th Avenue, north of West Atlantic Avenue and south of Northwest 1st Street in Delray Beach. CBD - Central Business District by Delray Beach Commercial Municipal water and sewer, electricity, and telephone Purchase Order A&C Job No.:

78 Site Size: Square Feet: 5,619 Acres: 0.13 Shape: Rectangular Street Frontage (Ft.): 45 Topography/Elevation: Level, near road grade Use: Verification: Sales History: Use at Time of Sale: Single-Family Commercial Intended Use: Commercial Highest and Best Use: Commercial Source: Kristyn Cox Relationship: West Atlantic Development Director Conditions of Sale: Arm's-length Verified By: Z. Rossetti Date: June 13, 2017 No transactions in the previous five years Sales Price: $225,000 Price/SF Land: $40.04 Price/Acre: $1,744,186 Financing: Cash to seller Comments: This parcel was purchased by the CRA for assemblage and commercial/mixed use redevelopment with adjacent CRA owned parcels. The property is currently improved with a 1,176 square foot single family home. The value of this property lies in the underlying land as the zoning classification allows for mixed use development opportunities. Given the age, condition, and size of the existing improvements, and also taking into consideration the zoning classification and location of this property, the highest and best use of this site is for future redevelopment and/or possible assemblage with other adjacent parcels. The property is within the West Atlantic Avenue Overlay Redevelopment District. Purchase Order A&C Job No.:

79 SALE NO West Atlantic Avenue, Delray Beach, FL AC File No.: ID: OR Book/Page: 28959/01585 Sale Status: Sale Type: Land Sub-Type: Commercial Date: March 15, 2017 Grantor: Grantee: Legal: 1040 West Atlantic Ave LLC Vittorio, Christopher Lots 1 and 2, Block 8, Atlantic Gardens, according to the Plat thereof, recorded in Plat Book 14, Page 63, of the Public Records of Palm Beach County, Florida, less and except road right of way conveyed to the State of Florida: The north 20 feet of Lots 1 and 2, Block 8, according to the plat of Atlantic Gardens, as recorded in Plat Book 14, Page 63, of the Public Records of Palm Beach County, Florida. Folio No.: Location: Zoning: Land Use: Utilities: Southeast corner of West Atlantic Avenue and Southwest 11th Avenue, west of Southwest 10th Avenue in Delray Beach. CBD - Central Business District by Delray Beach Commercial Municipal water and sewer, electricity, and telephone Purchase Order A&C Job No.:

80 Site Size: Square Feet: 6,909 Acres: 0.16 Shape: Rectangular Street Frontage (Ft.): 55 Topography/Elevation: Level, near road grade Use: Verification: Use at Time of Sale: Single Family Commercial Zoning Intended Use: Commercial Highest and Best Use: Commercial Source: Sharon Allen Relationship: Listing Agent Conditions of Sale: Arm's-length Verified By: Z. Rossetti Date: June 13, 2017 Sales History: Previously sold for $305,000 in October 2016, recorded in County OR Book Page Sales Price: $350,000 Price/SF Land: $50.66 Price/Acre: $2,215,190 Financing: Cash to seller Comments: This property was purchased by an investor who plans to redevelop the site. The property is currently improved with a 1,182 square foot single family home which has been used as an office in the past. The value of this property lies in the underlying land as the zoning allows for commercial development opportunities. Given the age, condition, and size of the existing improvements, and also taking into consideration the zoning classification and location of this property, the highest and best use of this site is for future redevelopment and/or possible assemblage with other adjacent parcels. Purchase Order A&C Job No.:

81 SALE NO Northeast 4th Avenue, Delray Beach, FL AC File No.: , ID: 201 OR Book/Page: 29175/0585 Sale Status: Sale Type: Land Sub-Type: Commercial Date: June 21, 2017 Grantor: Grantee: Legal: T.O. Enterprises, LLC Lukianov Family Trust, Alexis V Lukianov as Trustee, Katherine Lukianov as Trustee Lots 7, 8, and 9 Block 90, L.R. Benjamin s subdivision, according to the plat thereof as recorded in Plat Book 12, Page 18, Public Records of Palm Beach County, Florida. Folio No.: Location: Zoning: Land Use: Utilities: West side of Northeast 4th Avenue between NE 2nd & NE 3rd Streets, Delray Beach. CBD - Central Business District by Delray Beach Commercial Core Municipal water and sewer, electricity, and telephone Purchase Order A&C Job No.:

82 Site Size: Square Feet: 12,949 Acres: 0.30 Shape: Irregular Street Frontage (Ft.): 150 Topography/Elevation: Level, near road grade Use: Verification: Use at Time of Sale: Warehouse Intended Use: Warehouse/Apartment Highest and Best Use: Commercial Redevelopment Source: Howard Jendlin w/ Lang Realty, Costar, Loopnet.com, public records Relationship: Listing broker Conditions of Sale: Arm's-length Verified By: B. Arnold Date: August 30, 2017 Sales History: Previously sold for $1,220,000 in May 2007, recorded in County OR Book Page 1886 Sales Price: $1,050,000 Price/SF Land: $81.09 Price/Acre: $3,535,354 Financing: Cash to Seller Comments: Property was improved with a 3,050 square foot warehouse with nominal contributory value. That said, the buyer plans to utilize the existing building though with significant renovations. Purchase Order A&C Job No.:

83 SALE NO SE 1st Avenue, Delray Beach, FL AC File No.: ID: OR Book/Page: 29369/635 Sale Status: Sale Type: Land Sub-Type: Commercial Date: September 25, 2017 Grantor: Grantee: William Thomas Hatcher Thomas Johnson Legal: Lots 15 and 16, Amended Plat of Sundy and Cromer's Subdivision of Block 70 Original Town of Linton (now Delray), according to the Plat thereof, as recorded in Plat Book 6, Page 17, Public Records of Palm Beach County, Florida. Folio No.: Location: Zoning: Land Use: Utilities: B West side of Southeast 1st Avenue, south of Southeast 1st Street and north of Southeast 2nd Street in Delray Beach. OSSHAD - Old School Square Historic Art District by City of Delray Beach OMU, Other Mixed Use Historic District Municipal water and sewer, electricity, and telephone Purchase Order A&C Job No.:

84 Site Size: Square Feet: 13,098 Acres: 0.30 Shape: Rectangular Street Frontage (Ft.): 100 Topography/Elevation: Level, near road grade Use: Verification: Sales History: Use at Time of Sale: Vacant Residential Intended Use: Future residential development Highest and Best Use: Residential development Source: Lynnlee Fraser Relationship: Listing Broker Conditions of Sale: Arm's-length Verified By: M. Mickle Date: April 27, 2018 No transactions in the previous five years Sales Price: $1,000,000 Price/SF Land: $76.35 Price/Acre: $3,322,259 Financing: Cash to seller Comments: The buyer purchased this parcel with the initial intention of building a single family residence for himself. However, he then purchased the parcels to the north and south of this property for assemblage purposes and had plans to construct a Bed and Breakfast Inn. At this time, nothing has been finalized. Currently, he is leasing this lot to the developer across the street so they can locate their construction trailer adjacent to their project, 111 Delray. This property has the ability to go up three stories. Across the street, which is a CBD zoning, can go as high as four stories. This parcel was originally listed at $695,000; however when the parcel across the street sold for $9,030,000 or $185 per square foot they increased their asking price to $1,200,000. Purchase Order A&C Job No.:

85 SALE NO SE 1st Avenue, Delray Beach, FL AC File No.: ID: OR Book/Page: 29812/0122 Sale Status: Sale Type: Land Sub-Type: Commercial Date: April 24, 2018 Grantor: Grantee: Legal: Folio No.: Location: Zoning: Land Use: Utilities: 301 SE 1st Ave DB FL, LLC 1st Avenue Capital 301, LLC Tract "B", of Three Hundred One, according to the plat thereof as recorded in Plat Book 124, Page 143, of the Public Records of Palm Beach County, FL P Southeast corner of Southeast 1st Avenue and Southeast 3rd Street in Delray Beach. CBD - Commercial Business District by City of Delray Beach CC, Commercial Core Municipal water and sewer, electricity, and telephone Purchase Order A&C Job No.:

86 Site Size: Square Feet: 63,654 Acres: 1.46 Shape: Irregular Street Frontage (Ft.): 435 Topography/Elevation: Level, near road grade Use: Verification: Sales History: Use at Time of Sale: Vacant Commercial Intended Use: Mixed Use Development Highest and Best Use: Mixed Use Development Source: Jim Knight Relationship: Listing Broker Conditions of Sale: Arm's-length Verified By: M. Mickle Date: April 25, 2018 No transactions in the previous five years Sales Price: $3,570,000 Price/SF Land: $56.08 Price/Acre: $2,443,532 Financing: Cash to seller Comments: This property is three blocks south of East Atlantic Avenue and backs up to the FEC railroad tracks. This neighborhood is known as the Sofa District which has become a trendy residential location within close proximity to the downtown core of Delray Beach. It is fully entitled for 45 residential units and 5,000 square feet of commercial space. This is the largest parcel south of Atlantic Avenue with all approvals in place. The property was originally marketed with an asking price of $4,950,000 or $77.76 per square foot of land area. The buyer has plans for future mixed use development; however, they are not sure if they will move forward with the current approvals. They are currently exploring all of their development options. Purchase Order A&C Job No.:

87 Comparable Sales Location Map Purchase Order A&C Job No.:

88 Sale No. Date OR Bk Page COMMERCIAL PARCELS - SALES SUMMARY TABLE Property Address Land Area SF Acres Northwest 10th Avenue 5,619 Oct Delray Beach West Atlantic Avenue 6,909 Mar Delray Beach 0.16 Sale Price $225,000 $350,000 Price/SF of Land $40.04 $ Northeast 4th Avenue 12,949 Jun Delray Beach 0.30 $1,050,000 $ SE 1st Avenue 13,098 Sep Delray Beach 0.30 $1,000,000 $ SE 1st Avenue 63,654 Apr Delray Beach 1.46 $3,570,000 $56.08 Subj. West side of Atlantic Avenue 353,277 N/A Apr-18 Delray Beach 8.11 N/A N/A Purchase Order A&C Job No.:

89 Sales Summary and Discussion In this analysis, we considered differences between the sales and the subject in terms of property rights sold, conditions of sale, financing, market conditions (trend or time adjustment), location, land size, and quality and condition of any existing improvements. The appraisers based the comparisons on a standardized unit of measure, the sale price per square foot of land. The sale price per square foot of land correlates well among the comparable sales and is commonly used by buyers in this type of analysis. Property Rights The property rights transferred were believed to be those of the fee simple estate. No differences between the sales and the subject are reflected. Conditions of Sale All sales were reportedly market oriented. No adjustment consideration for conditions of sale was necessary. Financing We considered any indication of favorable financing. All sales were either on a cash basis or had market oriented financing, therefore, no differences were noted nor were adjustments made. Market Conditions The sales occurred over the period from October 20, 2016 to April 24, The date of value is April 25, The market has shown improving market conditions over this time period. Sales 1, 2, 3, and 4 were adjusted upward for inferior market conditions using a factor of ½% per month of difference. Location The subject parcels are located on west side of West Atlantic Avenue between Southwest 10th Avenue and Southwest 6th Avenue; and are also within the West Atlantic Avenue Overlay Redevelopment District boundaries. As a result, no adjustment between the subject parcels is necessary as they are all considered similar in location. Sales 1, 2, and 5 are similarly located and required no adjustment. Sales 3 and 4 are in superior neighborhoods and required downward consideration. Sale 3 is located within close proximity to the downtown business district in Delray Beach and Sale 4 is located in the Old School Square Historic District which is considered superior to the subject properties location. Purchase Order A&C Job No.:

90 Size Generally, larger properties will sell for a somewhat lower price per square foot of land than smaller ones, and vice versa, when all else is equal. The sales in this data set do not appear to follow this pattern and no adjustment is warranted. Site Conditions Properties of all different shapes can typically be developed. Some properties, however, allow for a more efficient development of the site providing for the maximum development intensity. Neither the subject nor the comparables appear be impacted by their shape in such a manner as to limit their development. Another factor considered here is the existence of any physically detrimental site conditions such as contamination or muck. Neither the subject nor any of the comparables were known to suffer from any detrimental site conditions. Some of the subject parcels are improved. These improvements will have to be removed before redevelopment can take place. Some of the comparable sales had improvements at the time of sale; however, they did not appear to contribute to value. This data set does not provide a clear difference in the price per square foot of land for those properties with improvements when compared to those without improvements. As a result, no adjustments were deemed appropriate to the vacant sales. As previously stated in this report, we have been instructed by the client to value the subject parcels based upon their highest and best use and also subject to the following development conditions: 1. The development will be required to include a full service grocery store with on-site parking. 2. There will be several recommended retail uses, including a bank and pharmacy. 3. The development will be required to include workforce housing. This requirement can be met either on or off site. If off site, the developer could likely utilize single family lots in the neighborhood currently owned by the CRA. 4. Within the retail/commercial component of the development, there will be (3) three spaces reserved for local businesses in the immediate area. These will more than likely have reduced rent. 5. Local contractors must represent a portion of the employment hired to construct the improvements. None of the sales in our dataset were subject to development conditions like the subject; therefore all of the sales were adjusted downward. In addition to the above, the parcels in Block 900 have no road frontage on West Atlantic Avenue like Blocks 600, 700 and 800. They are located directly behind a four story hotel which further inhibits their visibility from West Atlantic Avenue. Purchase Order A&C Job No.:

91 Zoning/Land Use The subject property has a zoning designation of CBD, Central Business District and RM, Residential Medium Density by City of Delray Beach with an underlying future land use of CC, Commercial Core and MD, Medium Density Residential 5-12 du/acre by City of Delray Beach. The intended user of this appraisal report, the Delray Beach Community Redevelopment Agency, has been assembling properties in this neighborhood which is destined for redevelopment with a larger scale mixed use project. The Delray Beach Community Redevelopment Agency has stated that properties within the first block from West Atlantic Avenue in this neighborhood have rezoning or ancillary use (parking, community park, etc.) potential. The subject properties are all within this first block of the redevelopment area. Though they may vary by municipality, all of the comparables have similar oriented designations that allow for similar uses as the subject. No adjustment is warranted. Purchase Order A&C Job No.:

92 COMMERCIAL PARCELS QUANTITATIVE SALES ADJUSTMENT CHART - PRICE/LAND SF Sale Date Property Address Land SF Price/ Land SF Financing/ Adj. Price/ Land SF Conditions of Sale/ Adj. Price/ Land SF Market Conditions/ Adj. Price/ Land SF Location Land Size Site Conditions Zoning/ Land Use Final Combined Adjustment Overall Indication 1 19 Northwest 10th Avenue 0% 0% 8% 5,619 $40.04 Oct-16 Delray Beach $40.04 $40.04 $ % 0% -10% 0% -10% $ West Atlantic Avenue 0% 0% 5% 6,909 $ % 0% -10% 0% -10% Mar-17 Delray Beach $50.66 $50.66 $53.19 $ Northeast 4th Avenue 0% 0% 3% 12,949 $81.09 Jun-17 Delray Beach $81.09 $81.09 $ % 0% -10% 0% -20% $ SE 1st Avenue 0% 0% 2% 13,098 $76.35 Sep-17 Delray Beach $76.35 $76.35 $ % 0% -10% 0% -20% $ SE 1st Avenue 0% 0% 0% 63,654 $56.08 Apr-18 Delray Beach $56.08 $56.08 $ % 0% -10% 0% -10% $50.48 Subj. Apr-18 West side of Atlantic Avenue Delray Beach 353,277 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Purchase Order A&C Job No.:

93 Commercial Parcels - Conclusion Considering all of these differences, we developed the preceding quantitative comparison chart listing the sales as they compare to the subject property, based on a price per square foot of land. Not all categories considered are depicted. Those omitted reflect no differences between the sales and the subject property. The unadjusted range of value indicated by the sales is roughly $40.04 to $81.09 per square foot of land area. The preceding quantitative comparison chart shows the value range for the subject property after adjustment based on a price per square foot of land area to be from $38.92 to $66.82 with a mean of $ Considering all of the salient factors discussed previously and prevailing market conditions, the appraisers feel a conclusion in the middle portion of the indicated range is most appropriate. Given the preceding data and discussions, it is concluded that the market reflects a value per square foot of land area for the subject property in Blocks 600, 700, and 800 of $55.00 as of April 25, The parcels in Block 900 have no road frontage on West Atlantic Avenue like Blocks 600, 700, and 800. As a result of this property characteristic, the parcels in Block 900 have been valued at between the low and middle range of the indices at $50.00 per square foot of land area. Total value is calculated as follows: Block ,355 square $55.00 per square foot =$8,599,525 Rounded To: BLOCK MARKET VALUE VIA SALES COMPARISON APPROACH: $8,600,000 Block ,353 square $55.00 per square foot =$4,474,415 Rounded To: BLOCK MARKET VALUE VIA SALES COMPARISON APPROACH: $4,500,000 Block ,205 square $55.00 per square foot =$4,356,275 Rounded To: BLOCK MARKET VALUE VIA SALES COMPARISON APPROACH: $4,400,000 Block ,364 square $50.00 per square foot =$1,818,200 Rounded To: BLOCK MARKET VALUE VIA SALES COMPARISON APPROACH: $1,800,000 ALLOCATED VALUES - COMMERCIAL PARCELS Land Market SF Value Block ,355 $8,600,000 Block ,353 $4,500,000 Block ,205 $4,400,000 Block ,364 $1,800,000 TOTAL 353,277 $19,300,000 Purchase Order A&C Job No.:

94 RESIDENTIAL SALES - SALES COMPARISON APPROACH The sales comparison approach is the process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised, identifying appropriate units of comparison, and making qualitative comparisons with or quantitative adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, marketderived elements of comparison. (Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed., Chicago: Appraisal Institute, 2015.) The sales comparison approach requires that the appraiser locate recent sales of similar properties and through an adjustment process arrive at an indication of what these properties would have sold for if they possessed all of the salient characteristics of the subject property. These adjusted sales prices are then correlated into an estimate of the market value of the property via the sales comparison approach to value. A search of the Palm Beach County official records, local multiple listing service records, discussions with local brokers and appraisers and a personal inspection of the subject area produced several sales of similar type properties. The sales used in the analysis were the best comparables that we were able to verify with public records and/or a party to the transaction. The following pages feature a detailed write up of each comparable used in the analysis, a location map and summary of the selected comparable sales data, which is followed by a discussion of the pertinent adjustments and conclusion of value. Purchase Order A&C Job No.:

95 SALE NO SW 6th Avenue, Delray Beach, FL AC File No.: ID: OR Book/Page: 27613/1134 Sale Status: Sale Type: Land Sub-Type: Multi-Family (> 1 Unit) Date: June 16, 2015 Grantor: Grantee: Ronald L. Harvey Delray Beach Community Redevelopment Agency Legal: Parcel 1: The North 50 feet of the South 100 feet of the East 135 feet of Block 13, Town of Linton, (Now known as Delray Beach), according to the Plat thereof, recorded in Plat Book 1, Page 3, of the Public Records of Palm Beach County, Florida. Parcel 2: The South 1/2 of Lot 5, Block 30, Town of Linton, (Now known as Delray Beach), according to the Plat thereof, recorded in Plat Book 1, Page 3, of the Public Records of Palm Beach County, Florida. Parcel 3: The North 1/2 of Lot 5, Block 30, Town of Linton, (Now known as Delray Beach), according to the Plat thereof, recorded in Plat Book 1, Page 3, of the Public Records of Palm Beach County, Florida. Folio No.: ; ; 0052 Purchase Order A&C Job No.:

96 Location: Zoning: Land Use: Utilities: Parcel 1: West side of SW 6th Avenue, south of West Atlantic Avenue and north of SW 1st Street, in Delray Beach Parcel's 2 & 3; East side of SW 5th Avenue, south of SW 1st Street and north of SW 2nd Street, in Delray Beach. RM - Multiple Family Residential, Medium Density by City of Delray Beach Medium Density, 5-12 du/acre Municipal water and sewer, electricity, and telephone Site Size: Square Feet: 17,424 Acres: 0.40 Shape: Rectangular Street Frontage (Ft.): 150 Topography/Elevation: Level, near road grade Use: Verification: Sales History: Use at Time of Sale: Vacant Residential Intended Use: Future Residential Development Highest and Best Use: Residential Development and/or assemblage Source: Jeffrey Costello Relationship: Buyer Representative Conditions of Sale: Arm's-length Verified By: M. Mickle Date: April 24, 2018 No sales in the previous five years Sales Price: $191,000 Price/SF Land: $10.96 Financing: Cash to seller Comments: The subject parcels, two of which are contiguous, are south of West Atlantic Avenue. The parcels were purchased as part of an assemblage for future re-development. Purchase Order A&C Job No.:

97 SALE NO Southwest 4th Avenue, Delray Beach, FL AC File No.: ID: OR Book/Page: 28044/1702 Sale Status: Sale Type: Land Sub-Type: Single Family Lot Date: January 7, 2016 Grantor: Grantee: Legal: SW 400 4th, LLC Lennox Griffith and Anne Bayne Griffith Lots 22, 23, and 24, Sundy and Tenbrook Addition to Delray, Florida, according to the Plat thereof, as recorded in Plat Book 12, Page 32, of the Public Records of Palm Beach County, Florida. Folio No.: ; 0230; 0240 Location: Zoning: Land Use: Utilities: Southwest corner of Southwest 4th Avenue and Southwest 4th Street in Delray Beach. R1A - Residential Single Family by City of Delray Beach LD, Low Density Residential Municipal water and sewer, electricity, and telephone Purchase Order A&C Job No.:

98 Site Size: Square Feet: 9,636 Acres: 0.22 Shape: Rectangular Street Frontage (Ft.): 132 Topography/Elevation: Level, near road grade Use: Verification: Sales History: Use at Time of Sale: Vacant Residential Intended Use: Residential Highest and Best Use: Residential Source: Preparer of Warranty Deed, Public Records Relationship: N/A Conditions of Sale: Arm's-length Verified By: M. Mickle Date: April 25, 2018 No transactions in the previous five years Sales Price: $60,000 Price/SF Land: $6.23 Financing: Cash to seller Comments: These parcels were purchased by a local investor for future residential development. The actual seller, Peter Perri was not available for comment on the transaction. Purchase Order A&C Job No.:

99 SALE NO SW 11th Avenue, Delray Beach, FL AC File No.: ID: OR Book/Page: 28171/1112 Sale Status: Sale Type: Land Sub-Type: Multi-Family (> 1 Unit) Date: March 7, 2016 Grantor: Grantee: Legal: St. Paul Missionary Baptist Church of Delray Beach, Inc. 3 Ocean Properties, LLC Lot 19, Block 8, Atlantic Gardens, according to the Plat thereof, as recorded in Plat Book 14, Page 63, of the Public Records of Palm Beach County, Florida. Folio No.: Location: Zoning: Land Use: Utilities: East side of SW 11th Avenue, north of SW 1st Street and south of West Atlantic Avenue in Delray Beach. RM - Multiple Family Residential, Medium Density by City of Delray Beach Medium Density, 5-12 du/acre Municipal water and sewer, electricity, and telephone Purchase Order A&C Job No.:

100 Site Size: Square Feet: 6,970 Acres: 0.16 Shape: Rectangular Street Frontage (Ft.): 50 Topography/Elevation: Level, near road grade Use: Verification: Sales History: Use at Time of Sale: Improved Residential Intended Use: Future Residential Development Highest and Best Use: Residential Development and/or assemblage Source: Jason Fenster, Palm Beach County Public Records Relationship: Buyer Conditions of Sale: Arm's-length Verified By: M. Mickle Date: April 24, 2018 No transactions in the previous five years Sales Price: $85,000 Price/SF Land: $12.20 Financing: Cash to seller Comments: The property was improved at the time of purchase with a residential structure originally built in 1928 which was being utilized as a small church. The property was in fair condition at the time of sale; as a result, no value was placed on the existing improvements. The buyer is a local investor who has been purchasing properties in the area over the past three years. Purchase Order A&C Job No.:

101 SALE NO Northwest 1st Street, Delray Beach, FL AC File No.: ID: OR Book/Page: 28517/971 Sale Status: Sale Type: Land Sub-Type: Single Family Lot Date: April 4, 2016 Grantor: Grantee: Legal: Dustin Belert and Patrick Belert Marie Anne Villard Russo Lot 13, Block B, West Side Heights, according to the map or plat thereof, as recorded in Plat Book 13, Page 61, of the Public Records of Palm Beach County, Florida. Folio No.: Location: Zoning: Land Use: Utilities: Southwest corner of Northwest 1st Street and Northwest 8th Avenue in Delray Beach. R1A - Residential Single Family by City of Delray Beach LD, Low Density Residential Municipal water and sewer, electricity, and telephone Purchase Order A&C Job No.:

102 Site Size: Square Feet: 8,712 Acres: 0.20 Shape: Rectangular Street Frontage (Ft.): 136 Topography/Elevation: Level, near road grade Use: Verification: Use at Time of Sale: Vacant Residential Intended Use: Residential Highest and Best Use: Residential Source: Preparer of Warranty Deed, Public Records Relationship: N/A Conditions of Sale: Arm's-length Verified By: M. Mickle Date: April 25, 2018 Sales History: Previously sold for $70,000 in October 2015, recorded in County OR Book Page 1705; and for $53,000 in July 2014, recorded in OR Book Page 1278 Sales Price: $76,000 Price/SF Land: $8.72 Financing: Cash to seller Comments: The sellers wanted out of the investment due to the fact they reside in Canada and no longer had interest in development of the property. The buyer is a local investor who wanted to get into the Delray Beach market. Purchase Order A&C Job No.:

103 SALE NO SW 14th Avenue, Delray Beach, FL AC File No.: ID: OR Book/Page: 28509/271 Sale Status: Sale Type: Land Sub-Type: Multi-Family (> 1 Unit) Date: August 11, 2016 Grantor: Grantee: Legal: Willie Thomas, Lillie B. Harris, Johnny W. Thomas a/k/a/ Johnnie W. Thomas, Cynthia Raymond, Barbara A. Thomas, James W. Thomas, Jr., and Sharon Thomas Delray Beach Community Redevelopment Agency Lot 25, Block 4, Odmanns Subdivision, according to the map or plat thereof, as recorded in Plat Book 4, Page 53, of the Public Records of Palm Beach County, Florida. Folio No.: Location: Zoning: Land Use: Utilities: East side of SW 14th Avenue, south of West Atlantic Avenue and north of SW 1st Street in Delray Beach. RM - Multiple Family Residential, Medium Density by City of Delray Beach Medium Density, 5-12 du/acre Municipal water and sewer, electricity, and telephone Purchase Order A&C Job No.:

104 Site Size: Square Feet: 6,970 Acres: 0.16 Shape: Rectangular Street Frontage (Ft.): 50 Topography/Elevation: Level, near road grade Use: Verification: Sales History: Use at Time of Sale: Vacant Residential Intended Use: Residential Highest and Best Use: Residential development and/or assemblage Source: Jeffrey Costello Relationship: Buyer Representative Conditions of Sale: Arm's-length Verified By: M. Mickle Date: April 24, 2018 No transactions in the previous five years Sales Price: $105,000 Price/SF Land: $15.06 Price/Acre: $656,250 Financing: Cash to seller Comments: The parcel was purchased as part of an assemblage for future residential re-development by the Delray Beach Community Redevelopment Agency. It was subsequently transferred via Warranty Deed for a recorded price of $1,000 to Delray Beach Community Land Trust, Inc. in October of Purchase Order A&C Job No.:

105 Comparable Sales Location Map Purchase Order A&C Job No.:

106 RESIDENTIAL PARCELS - SALES SUMMARY TABLE Sale No. Date OR Bk Page Property Address Land Area SF Acres SW 6th Avenue 17,424 Jun Delray Beach Southwest 4th Avenue 9,636 Jan Delray Beach 0.22 Sale Price $191,000 $60,000 Price/SF of Land $10.96 $ SW 11th Avenue 6,970 Mar Delray Beach 0.16 $85,000 $ Northwest 1st Street 8,712 Apr Delray Beach 0.20 $76,000 $ SW 14th Avenue 6,970 Aug Delray Beach 0.16 $105,000 $15.06 Subj. West side of West Atlantic Avenue 13,098 N/A Apr-18 Delray Beach 0.30 N/A N/A Purchase Order A&C Job No.:

107 Sales Summary and Discussion In this analysis, we considered differences between the sales and the subject in terms of property rights sold, conditions of sale, financing, market conditions (trend or time adjustment), location, land size, and quality and condition of any existing improvements. The appraisers based the comparisons on a standardized unit of measure, the sale price per square foot of land. The sale price per square foot of land correlates well among the comparable sales and is commonly used by buyers in this type of analysis. Property Rights The property rights transferred were believed to be those of the fee simple estate. No differences between the sales and the subject are reflected. Conditions of Sale All sales were reportedly market oriented. No adjustment consideration for conditions of sale was necessary. Financing We considered any indication of favorable financing. All sales were either on a cash basis or had market oriented financing, therefore, no differences were noted nor were adjustments made. Market Conditions The sales occurred over the period from June 16, 2015 to August 11, The date of value is April 25, The market has shown improving market conditions over this time period. All of the sales were adjusted upward using a factor of ½% per month of difference through the end of Location The subject property is located at West side of West Atlantic Avenue between Southwest 10th Avenue and Southwest 6th Avenue in Delray Beach. Sales 1, 3, 4, and 5 are similarly located and required no adjustment. Sale 2 is located in an inferior area and required upward consideration. Size Generally, larger properties will sell for a somewhat lower price per square foot of land than smaller ones, and vice versa, when all else is equal. The sales in this data set do not appear to follow this pattern and no adjustment is warranted. Purchase Order A&C Job No.:

108 Site Conditions Properties of all different shapes can typically be developed. Some properties, however, allow for a more efficient development of the site providing for the maximum development intensity. Neither the subject nor the comparables appear be impacted by their shape in such a manner as to limit their development. Another factor considered here is the existence of any physically detrimental site conditions such as contamination or muck. Neither the subject nor any of the comparables were known to suffer from any detrimental site conditions. Some of the comparable sales had improvements at the time of sale; however, they did not appear to contribute to value. This data set does not provide a clear difference in the price per square foot for those properties with improvements when compared to those without improvements. As a result, no adjustments were deemed appropriate to the vacant sales. Zoning/Land Use The subject property has a zoning designation of CBD, Central Business District and RM, Residential Medium Density by City of Delray Beach with an underlying future land use of CC, Commercial Core and MD, Medium Density Residential 5-12 du/acre by City of Delray Beach. The intended user of this appraisal report, the Delray Beach Community Redevelopment Agency, has been assembling properties in this neighborhood which is destined for redevelopment with a larger scale mixed use residential project. The Delray Beach Community Redevelopment Agency has stated that properties within the first block from West Atlantic Avenue in this neighborhood have rezoning or ancillary use (parking, community park, etc.) potential. The subject properties are all within this first block of the redevelopment area. Though they may vary by municipality, all of the comparables have similar commercial and residential oriented designations that allow for similar uses as the subject. No adjustment is warranted. Purchase Order A&C Job No.:

109 RESIDENTIAL PARCELS QUANTITATIVE SALES ADJUSTMENT CHART - PRICE/LAND SF Sale Date Property Address Land SF Price/ Land SF Financing/ Adj. Price/ Land SF Conditions of Sale/ Adj. Price/ Land SF Market Conditions/ Adj. Price/ Land SF Location Land Size Site Conditions Zoning/ Land Use Final Combined Adjustment Overall Indication 1 46 SW 6th Avenue 0% 0% 15% 17,424 $10.96 Jun-15 Delray Beach $10.96 $10.96 $ % 0% 0% 0% 0% $ Southwest 4th Avenue 0% 0% 6% 9,636 $ % 0% 0% 0% 10% Jan-16 Delray Beach $6.23 $6.23 $6.60 $ SW 11th Avenue 0% 0% 5% 6,970 $12.20 Mar-16 Delray Beach $12.20 $12.20 $ % 0% 0% 0% 0% $ Northwest 1st Street 0% 0% 4% 8,712 $8.72 Apr-16 Delray Beach $8.72 $8.72 $9.07 0% 0% 0% 0% 0% $ SW 14th Avenue 0% 0% 2% 6,970 $15.06 Aug-16 Delray Beach $15.06 $15.06 $ % 0% 0% 0% 0% $15.37 Subj. Apr-18 West side of West Atlantic Avenue Delray Beach 13,098 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Purchase Order A&C Job No.:

110 Conclusion Considering all of these differences, we developed the preceding quantitative comparison chart listing the sales as they compare to the subject property, based on a price per square foot of land. Not all categories considered are depicted. Those omitted reflect no differences between the sales and the subject property. The unadjusted range of value indicated by the sales is roughly $6.23 to $15.06 per square foot of land area. The preceding quantitative comparison chart shows the value range for the subject property after.adjustment based on a price per square foot of land area to be from $7.26 to $15.37 with a mean of $ Considering all of the salient factors discussed previously and prevailing market conditions, the appraisers feel a conclusion in the middle portion of the indicated range is most appropriate. Given the preceding data and discussions, it is concluded that the market reflects a value per square foot of land area for the subject property of $11.40 as of April 25, Total value is calculated as follows: 13,098 Square $11.40 per Square Foot = $149,317 Rounded To: MARKET VALUE VIA SALES COMPARISON APPROACH: $150,000 Purchase Order A&C Job No.:

111 RESIDENTIAL PARCELS CONCLUSION Parcel ,970 square $11.40 per square foot =$79,458 Rounded To: PARCEL MARKET VALUE VIA SALES COMPARISON APPROACH: $80,000 Parcel ,098 square $11.40 per square foot =$69,517 Rounded To: PARCEL MARKET VALUE VIA SALES COMPARISON APPROACH: $70,000 ALLOCATED VALUES - RESIDENTIAL PARCELS Land Market SF Value Parcel ,970 $80,000 Parcel ,098 $70,000 TOTAL 13,068 $150,000 Purchase Order A&C Job No.:

112 QUALIFICATIONS OF APPRAISER ROBERT B. BANTING, MAI, SRA PROFESSIONAL DESIGNATIONS - YEAR RECEIVED MAI - Member Appraisal Institute SRA - Senior Residential Appraiser, Appraisal Institute SRPA - Senior Real Property Appraiser, Appraisal Institute State-Certified General Real Estate Appraiser, State of Florida, License No. RZ EDUCATION AND SPECIAL TRAINING Licensed Real Estate Broker - # State of Florida Graduate, University of Florida, College of Business Administration, BSBA (Major - Real Estate & Urban Land Studies) 1973 Successfully completed and passed the following Society of Real Estate Appraisers (SREA) and American Institute of Real Estate Appraisers (AIREA) courses and/or exams: Note: the SREA & AIREA merged in 1991 to form the Appraisal Institute. SREA R2: SREA 201: SREA: SREA: AIREA 1B: SREA 101: AIREA: AIREA: AIREA: AIREA 2-2: AIREA: AIREA: AIREA: Case Study of Single Family Residence Principles of Income Property Appraising Single Family Residence Demonstration Report Income Property Demonstration Report Capitalization Theory and Techniques Introduction to Appraising Real Property Case Studies in Real Estate Valuation Standards of Professional Practice Introduction to Real Estate Investment Analysis Valuation Analysis and Report Writing Comprehensive Examination Litigation Valuation Standards of Professional Practice Part C ATTENDED VARIOUS APPRAISAL SEMINARS AND COURSES, INCLUDING: The Internet and Appraising Golf Course Valuation Discounting Condominiums & Subdivisions Narrative Report Writing Appraising for Condemnation Condemnation: Legal Rules & Appraisal Practices Condominium Appraisal Reviewing Appraisals Analyzing Commercial Lease Clauses Eminent Domain Trials Tax Considerations in Real Estate Testing Reasonableness/Discounted Cash Flow Mortgage Equity Analysis Partnerships & Syndications Hotel and Motel Valuation Advanced Appraisal Techniques Federal Appraisal Requirements Analytic Uses of Computer in the Appraisal Shop Valuation of Leases and Leaseholds Valuation Litigation Mock Trial Residential Construction From The Inside Out Rates, Ratios, and Reasonableness Analyzing Income Producing Properties Development of Major/Large Residential Projects Standards of Professional Practice Regression Analysis In Appraisal Practice Federal Appraisal Requirements Engaged in appraising and consulting assignments including market research, rental studies, feasibility analysis, expert witness testimony, cash flow analysis, settlement conferences, and brokerage covering all types of real estate since President of Anderson & Carr, Inc., Realtors and Appraisers, established 1947 Past President Palm Beach County Chapter, Society of Real Estate Appraisers (SREA) Realtor Member of Central Palm Beach County Association of Realtors Special Master for Palm Beach County Property Appraisal Adjustment Board Qualified as an Expert Witness providing testimony in matters of condemnation, property disputes, bankruptcy court, foreclosures, and other issues of real property valuation. Member of Admissions Committee, Appraisal Institute - South Florida Chapter Member of Review and Counseling Committee, Appraisal Institute - South Florida Chapter Approved appraiser for State of Florida, Department of Transportation and Department Natural Resources. Instructor of seminars, sponsored by the West Palm Beach Board of Realtors. Authored articles for The Palm Beach Post and Realtor newsletter. Real Estate Advisory Board Member, University of Florida. TYPES OF PROPERTY APPRAISED - PARTIAL LISTING Air Rights Medical Buildings Apartment Buildings Churches Amusement Parks Department Stores Hotels - Motels Marinas Condominiums Industrial Buildings Office Buildings Residences - All Types Mobile Home Parks Service Stations Special Purpose Buildings Restaurants Auto Dealerships Vacant Lots - Acreage Residential Projects Golf Courses Shopping Centers Leasehold Interests Financial Institutions Easements "I am currently certified under the continuing education program of the Appraisal Institute."

113 GENERAL INFORMATION State Certified General Real Estate Appraiser RZ3316 EDUCATION AND SPECIAL TRAINING Palm Beach Community College, Lake Worth, Florida Areas of study - Architecture and Fine Art 1984 QUALIFICATIONS OF APPRAISER MICHELLE J. MICKLE Practiced Architectural Design in Palm Beach County, Florida from 1985 through Successfully completed and passed the following courses: FREAB Residential Appraisal Course I, January 2005 MREA Residential Appraisal Course II, June 2006 FREAB Certified General Appraisal Course, October 2007 AI- General Appraiser Income Approach (Part I), April 2008 AI Uniform Appraisal Standards for Federal Land Acquisitions, November 2017 USPAP, November 2016 Engaged in appraising real estate on a full time basis with: Appraisal Realty Institute, March North Palm Beach, Florida Anderson & Carr, Inc., March 2006 West Palm Beach, Florida Resident of Palm Beach County since 1971 TYPES OF PROPERTIES APPRAISED Vacant Commercial Land Vacant Residential Land Commercial Buildings Office Buildings Industrial Buildings Insurable Value Reports Residential and Commercial Single Family Residences Condominiums - Residential and Commercial 2-4 Family Residential Buildings Retail Stores Self-Storage Facilities Film Production Studios Eminent Domain Easements and Right-of-ways Automobile Dealerships Service Stations Multi-Family Apartment Buildings Churches Schools Financial Institutions Leasehold Interests Proposed Residential and Industrial Development Projects

114 Appraiser Licenses

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