April 7, Re: 35 SW 8th Avenue Delray Beach, Florida Land Owner: Luigi and Samiah Baroni. Dear Ms. Cox-Goodwin:

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1 April 7, 2014 Ms. Kristyn Cox-Goodwin Special Project Administrator City of Delray Beach Community Redevelopment Agency 20 North Swinton Avenue Delray Beach, Florida Re: 35 SW 8th Avenue Delray Beach, Florida Land Owner: Luigi and Samiah Baroni Dear Ms. Cox-Goodwin: Per your request, we have reviewed the above captioned property for the purpose of providing you with a current valuation on the above referenced property. The purpose of our analysis is to form an opinion of the market value of the fee simple ownership of the whole property. The function of this report is for the City of Delray Beach Community Development Agency s use in the potential purchase of this property from the current owner, Luigi and Samiah Baroni. The property is currently improved with a single family residential building that contains a total of 648 square feet of living area. The site is 50 foot by 138 feet or a total of 6,900 square feet. We did not complete an interior inspection on the building, based on our review of the highest and best use. The property is zoned with a RM-Multiple Family Residential zoning classification. In our opinion, the highest and best use is for assemblage and/or future redevelopment with a medium density residential use. Based on the sales data review, we have considered this a land only appraisal. Market value is defined as "the most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self interest, and assuming that neither is under undue duress." The report considers the value of the property at its highest and best use as either an assemblage parcel or a stand-alone parcel.

2 Ms. Kristyn Cox-Goodwin April 7, 2014 Page 2 We have prepared the attached Summary Appraisal Report, which contains a recapitulation of the data utilized to form an opinion of the market value as of March 25, If any additional data is required please advise. We have been provided a copy of a contract for an agreement for purchase and sale of real property with the purchaser the CRA and the seller being Luigi and Samiah Baroni. The copy of the contract was signed by the seller only and allowed for the completion of some due diligence by the buyer. This appraisal report is part of the due diligence. The property is under contract for a purchase price of $135,000. Based upon our inspection of the property and market data analysis, it is our opinion that the market value of the subject property as described herein, as of March 25, 2014 is as follows: ONE HUNDRED SEVENTEEN THOUSAND THREE HUNDRED DOLLARS ($117,300) Sincerely, Robert D. Miller, ASA State Certified General R.E. Appraiser No. RZ1270

3 TABLE OF CONTENTS Table of Contents... 1 Summary of Salient Facts and Conclusions... 2 Sketch of the Subject Parcel... 3 Aerial Photograph of the Subject Property... 4 Definition of Market Value... 5 Competency Provision... 5 Sales History of the Subject Property... 6 Purpose and Function of the Appraisal... 6 Legal Description... 6 Scope of Services... 7 Marketing Period... 7 Property Description... 8 Area Map Neighborhood Description Neighborhood Map Flood Zone Map Highest and Best Use Appraisal Process Market Approach Reconciliation Assumptions and Limiting Conditions Certification ADDENDUM Photographs of the Subject Property Subject Deed Zoning Information Qualifications of the Appraiser 1

4 SUMMARY OF SALIENT FACTS AND CONCLUSIONS PROPERTY LOCATION: OWNER'S NAME/ADDRESS: 35 SW 8th Avenue Delray Beach, Florida Luigi and Samiah Baroni 1300 Belle View Boulevard, Apartment B2 Alexandria, Virginia FOLIO NUMBER: SITE SIZE: BUILDING SIZE: DIMENSIONS: ZONING: 6,900+/- Square Feet None Rectangular shaped lot with dimensions of approximately 50 feet by 138 feet. Property has 50 feet of frontage on the east side of SW 8 th Avenue. We were not provided a survey for the property and have utilized the legal description from the Palm Beach Property Appraiser and site information from a review of plat maps and other sources. Any variations from an actual Survey would subject our conclusions to review and possible change. RM-Multiple Family Residential District PRESENT USE: Improved with small single family residence containing 648 square feet of building area. HIGHEST AND BEST USE: IMPROVEMENTS: COST APPROACH: INCOME APPROACH: Assemblage and/or Future Residential Use. 648 Square Foot single family residence built in N/A N/A SALES COMPARISON APPROACH TO VALUE: $117,300 RECONCILIATION: $117,300 DATE OF VALUE: March 25,

5 SKETCH OF THE SUBJECT PROPERTY SUBJECT 3

6 AERIAL PHOTOGRAPH OF SITE SUBJECT 4

7 DEFINITION OF MARKET VALUE Market value is defined in the Revised Edition of the Real Estate Appraisal Terminology, published by the American Institute of Real Estate Appraisers and the Society of Real Estate Appraisers, Copyright 1984, as follows: "The most probable price in terms of money which a property will 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:... A. Buyer and seller are typically motivated;... B. Both parties are well informed or well advised, and each acting in what he considers his own best interest;... C. A reasonable time is allowed for exposure in the open market;... D. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto, and;... E. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. COMPETENCY PROVISION The appraiser has completed similar type appraisals throughout the South Florida area during his 31 years as a real estate appraiser in South Florida. The appraiser has completed numerous appraisal assignments in the City of Delray Beach and is familiar with the current market conditions at this location. As a result of these experiences, the appraiser meets the competency provision of USPAP. 5

8 SALES HISTORY OF THE SUBJECT PROPERTY A review of the property records for the subject property did not reveal any arm s-length transfers of the property in the last 5 years. The last transfer of the property was in January of 2005 (OR BK 18016, PG 1965) to the current ownership for the consideration of $100,000. PURPOSE AND FUNCTION OF APPRAISAL The purpose of the appraisal is to form an opinion of the market value of the fee simple interest of the subject property. The function of this report is for use by the City of Delray Beach CRA in the potential purchase or acquisition of this property. INTENDED USERS OF THE REPORT The report is to be used by the City of Delray CRA, its legal counsel and the property owner, Luigi and Samiah Baroni, and/or their representatives. LEGAL DESCRIPTION Lot 17 of Block 5 of subdivision of Block 5 of Delray Beach a subdivision of the City of Delray Beach, according to the Public records of Palm Beach County, Florida. NOTE: We were not provided a survey for the property and have utilized the legal description from the Palm Beach Property Appraiser, subject deed and the site information from a review of plat maps and other sources. Any variations from an actual Survey would subject our conclusions to review and possible change. 6

9 SCOPE OF SERVICES We have compiled all the necessary data in order to formulate an opinion of value. We have presented the applicable data in this Summary Appraisal Report format. Any additional supporting data can be found in our working file. In preparing our report, we have reviewed and relied upon the following data. 1. Sales and listings of similar type properties throughout the subject neighborhood over the past five years. 2. Review of public records for all pertinent sales data. We retrieved data from IRIS, MLS, Co-Star, LoopNet and the Property Appraiser's Office. 3. Review and considered the sales history of the subject property and neighborhood. 4. Review of Palm Beach County and neighborhood trends. 5. Inspection of neighborhood and analysis of land use patterns and trends. 6. Inspection of the exterior of the subject property on March 25, EXPOSURE/MARKETING PERIOD Based on the type of property and the highest and best use, we considered the exposure marketing period to be 6 to 9 months. There was a general market downturn in the South Florida area between 2007 and 2009 with residential properties more negatively affected than commercial properties. The recent new developments by the CRA with a new hotel on Atlantic Avenue has moved forward many projects delayed by the overall slowdown in real estate development. Further residential apartment properties are being developed south of Atlantic Avenue. 7

10 PROPERTY DESCRIPTION PROPERTY LOCATION: OWNER'S NAME/ADDRESS: 35 SW 8th Avenue Delray Beach, Florida Luigi and Samiah Baroni 86 Gateway Drive Pooler, Ga INSPECTION DATES: February 26 and March 25, 2014 FOLIO NUMBER: SITE SIZE: 6,900+/- Square Feet DIMENSIONS: Basically rectangular in shape with dimensions of approximately 50 feet by 138 feet. PRESENT USE: HIGHEST AND BEST USE: Small single family residence containing 648 square feet of building area. Building was built in 1945 and appeared to be at the end of its useful life. Assemblage and/or redevelopment with a residential medium density development IMPROVEMENTS: Older 648 square foot residential building built in 1945 and near the end of its useful life. An interior inspection was not completed. FLOOD ZONE: COMMENTS: Flood Zone X, Flood Insurance Rate Map Community Panel Number D dated The site is located in an area with numerous re-developments and renovations. The CRA is very active in the area and there are several CRA sponsored projects under construction in the subject neighborhood. the property is valued as vacant land. The site is adequate in size and shape to accommodate various types of development or as an assemblage with other lands. 8

11 PROPERTY DESCRIPTION (CONTINUED) ZONING The subject property is zoned RM, Medium Density Residential District by the City of Delray Beach. The RMD zoning district is established in order to provide a residential district with flexible densities between 6 and 12 units per acre, except within the Southwest Neighborhood Overlay District, where the subject is located. In this area, the maximum density is 24 units to the acre. The following uses are allowed in this zoning district. Single family residential, duplex, multiple family, abused spouse residences, group homes, parking lots, park, ALF facilities and public education uses associated with the School District. Also allowed are residential licensed service facilities, nursing homes and community gardens. ASSESSED VALUE AND REAL ESTATE TAXES SUBJECT PROPERTY FOLIO NUMBER 2013 ASSESSED VALUE REAL TAXES 2013 ESTATE $33,546 $

12 AREA MAP 10

13 NEIGHBORHOOD DESCRIPTION The neighborhood is located in an area of Delray Beach that has been part of an ongoing Redevelopment area. The City of Delray Beach Community Redevelopment Agency has actively buying and redeveloping properties in the area, both north and south of Atlantic Avenue from Swinton Avenue to 12 th Avenue. Major developments in the area include the Palm Beach County Municipal Building and Courthouse, located further east on Atlantic Avenue, the Championship Tennis Facility and City Hall and the Library Facility on the south side of Atlantic Avenue. New developments in the area include mixed use residential, commercial development, which is being promoted by the new zoning and the Community Redevelopment Agency. The CRA has reportedly invested $2.8 Million in additional beautification of Atlantic Avenue from 6 th Avenue to 12 th Avenue. Further they have been increasing parking in the area to serve visitors to the area. Additional new developments in the neighborhood include the Fairfield Inn Hotel being constructed on Atlantic Avenue. Areas further north and south of Atlantic Avenue are residential in nature with most of the commercial developments located on the main thru streets. Some neighborhood services are located in the neighborhoods closer to Atlantic Avenue. Atlantic Avenue, further east, is a popular night life and entertainment area. Delray Beach is accessible from both I-95, and via the Turnpike further west on Atlantic Avenue. The Palm Beach International Airport and Ft. Lauderdale Hollywood International Airports are both located within 45 minutes drive from the subject neighborhood In general, the neighborhood is an older well-established neighborhood with a strong supply of business opportunities and affordable residential housing. Overall the neighborhood would be rated as stabilizing after a market downturn due in part to the regional and national economic conditions between 2007 and The CRA has been actively assembling additional parcels outside the NW 5 th Avenue core area within the neighborhood in the last few years. 11

14 NEIGHBORHOOD MAP Subject 12

15 FLOOD MAP Subject 13

16 ZONING MAP Subject 14

17 DEFINITION OF HIGHEST AND BEST USE That reasonable and probable use that will support the highest and present value, as defined, as of the effective date of appraisal. Alternatively, that use, from among reasonable, probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible and which results in the highest land value. Implied within this definition is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization of individual owners. Also implied is that the determination of the highest and best use results from the appraiser's judgment and analytical skill, i.e., that the use determined from the analysis represents an opinion, not a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of probable selling price (Market Value), another appropriate term to reflect highest and best use would be "most probable use". In the context of investment value, an alternative term would be "most profitable use". HIGHEST AND BEST USE The size and dimensions of the subject are suitable for most developments. The subject is part of the West Atlantic Avenue Neighborhood as part of the Downtown Delray Beach Master Plan and part of the Southwest Neighborhood Overlay District. The emphasis is the preservation and enhancement of the existing neighborhood history and redevelopment of the entire neighborhood. Portions of the neighborhood are in the CBD zoning classification, which allows for a variety of uses from retail to office to residential with a density of 30 units to the acre and 12 dwelling units per acre. The review of the area indicates that the CRA and others are assembling land and some redevelopment is ongoing. Based on our review of the sales of other properties in the neighborhood, it is our opinion that the property could be utilized for future development or assemblage with adjoining properties. The property has an RM zoning and any use allowed in this Based on the four criteria for the estimation of the highest and best use, it is our opinion that the subject land would have a highest and best use for redevelopment and/or assemblage with surrounding property owners for a larger redevelopment. The future development of the site could be a mixed use that would be in compliance with the RM zoning ordinance. 15

18 HIGHEST AND BEST USE AS IMPROVED The subject is improved with an older single family residence and the current use in not the highest and best use. The estimate of the highest and best use considered the value of the home as improved versus the land value. 16

19 APPRAISAL PROCESS In order to arrive at the market value for the property, special attention must be given to the typical purchaser who might have an interest in a particular property. Market Value is the most probable sales price, which a property will bring and this price depends upon the typical purchaser's reaction to the various supply and demand factors that affect the market value. In this instance, we estimated the highest and best use for assemblage and/or redevelopment with a residential medium density zoning district. Based on our review of the highest and best use, we have considered this a land only appraisal. The Appraisal Process is basically an economic analysis consisting of a review of the factors that affect market value. There are three approaches to value to be considered in any appraisal, The Cost, Income and Market Approaches. In this instance, the Cost and Income Approaches to Value will not be considered, as this is considered a land only appraisal. Therefore, the Market Approach to Value will be considered as the most applicable method of valuation for the subject property. 17

20 SALES COMPARISON APPROACH SUBJECT VACANT LAND VALUATION On the following pages, we will submit the comparable sales considered in our analysis followed by a sales table, map, analysis and value conclusion. We have reviewed all of the lands on the north and south side of Atlantic Avenue from I-95 to Federal Highway in an attempt to review the trends and values for the subject property. 18

21 COMPARABLE SALE NUMBER 1 RECORDED: OR BOOK PAGE 524 FOLIO NO: DATE OF SALE: January 3, 2014 GRANTOR: GRANTEE: Robert D. Ridgley, as Trustee Kathryn L. Johnston CONSIDERATION: $90,000 FINANCING: EFFECT ON SALES PRICE: CONDITION OF SALE: PROPERTY RIGHTS CONVEYED: Cash to Seller None Arm s-length Fee Simple PHYSICAL CHARACTERISTICS: LOCATION: East side of NW 1 st Avenue at 227 NW 1 st Avenue, Delray Beach, Florida LAND SIZE: 6,550 square feet 19

22 COMPARABLE SALE NUMBER 1 (CONTINUED) ENCUMBRANCES: EFFECT ON PURCHASE PRICE: ZONING: HIGHEST AND BEST USE: None noted None OSSHAD, Old School Square Historic Art District, Delray Beach Assemblage and/or Redevelopment LEGAL DESCRIPTION: Lot 19, Block 58, Mectaclf s Subdivision of Blocks 50 and 58 of Town of Delray PB APPRAISAL INDICATORS: SALE PRICE PER SQ FT: $13.74 per square foot of land area COMMENTS: Vacant land. The property is located north of Atlantic Avenue, further east in an area of single family residential development. 20

23 COMPARABLE SALE NUMBER 2 RECORDED: OR BOOK PAGE 186 FOLIO NO: and DATE OF SALE: January 10, 2014 GRANTOR: 114 SW 2 nd Street LLC GRANTEE: Jeremy Marcus CONSIDERATION: $180,000 FINANCING: EFFECT ON SALES PRICE: CONDITION OF SALE: PROPERTY RIGHTS CONVEYED: PHYSICAL CHARACTERISTICS: LOCATION: LAND SIZE: Cash to seller None Arm s-length Fee Simple Located on the south side of SW 2 nd Street with a common address of SW 2 nd Street, Delray Beach, Florida 15,552 square feet 21

24 COMPARABLE SALE NUMBER 2 (CONTINUED) ENCUMBRANCES: EFFECT ON PURCHASE PRICE: ZONING: None noted None R1A Residential District HIGHEST AND BEST USE: Redevelopment and/or Assemblage with adjoining lands LEGAL DESCRIPTION: Lots 4 and 5 of CH Diggans Subdivision of Block 55 of the Map of the Town of Linton, PB 8 Page 58. APPRAISAL INDICATORS: SALE PRICE PER SQ FT: $11.57 per square foot of land area COMMENTS: A portion of this site is improved with an older multi family building and the other lot is vacant land. The improvements are considered an interim use and not the highest and best use of the site. 22

25 COMPARABLE SALE NUMBER 3 RECORDED: OR BOOK PAGE 1674 FOLIO NO: DATE OF SALE: May 6, 2013 GRANTOR: GRANTEE: Strategic Investor Group, LLC Samdy Investments, LLC CONSIDERATION: $90,000 FINANCING: EFFECT ON SALES PRICE: CONDITION OF SALE: PROPERTY RIGHTS CONVEYED: Cash to seller None Arm s-length Fee Simple PHYSICAL CHARACTERISTICS: LOCATION: 717 SW 2 nd Court Delray Beach, Florida LAND SIZE: 5,170 square feet 23

26 COMPARABLE SALE NUMBER 3(CONTINUED) ENCUMBRANCES: EFFECT ON PURCHASE PRICE: ZONING: HIGHEST AND BEST USE: LEGAL DESCRIPTION: APPRAISAL INDICATORS: SALE PRICE PER SQ FT: COMMENTS: Public utilities of record None R1A Residential District Future Assemblage Lot 7 of Plat of Carver Square PB 24 Page 11 of the public records of Palm Beach County, Florida. $17.41 per square foot of land area This sale consisted of a small residential property located adjacent to potential assemblage and vacant parcel. Current improvements are still the highest and best use, however the location adjacent to vacant land allows for some future assemblage and redevelopment. 24

27 COMPARABLE SALE NUMBER 4 RECORDED: OR BOOK PAGE 106 FOLIO NO: DATE OF SALE: December 20, 2013 GRANTOR: GRANTEE: Mia Real Rentals LLC Shantam, LLC CONSIDERATION: $74,500 FINANCING: EFFECT ON SALES PRICE: CONDITION OF SALE: PROPERTY RIGHTS CONVEYED: Cash to seller None Arm s-length Fee Simple PHYSICAL CHARACTERISTICS: LOCATION: 122 SW 10 th Avenue, Delray Beach, Florida LAND SIZE: 6,900 square feet 25

28 COMPARABLE SALE NUMBER 4 (CONTINUED) ENCUMBRANCES: EFFECT ON PURCHASE PRICE: ZONING: HIGHEST AND BEST USE: LEGAL DESCRIPTION: APPRAISAL INDICATORS: SALE PRICE PER SQ FT: COMMENTS: Typical Utilities None RM Residential Medium District For Assemblage or redevelopment Lots 18, Block 9, of Atlantic Gardens, according to the plat thereof, (14-63), City of Delray Beach, according to the plat thereof. $10.80 per square foot of land area This site consists of an older single family residence that is an area of numerous re-development projects associated with the CRA and its efforts to revitalize the West Atlantic Corridor and Southwest Residential area. 26

29 COMPARABLE SALE NUMBER 5 RECORDED: OR BOOK PAGE 713 FOLIO NO: DATE OF SALE: November 4, 2013 GRANTOR: GRANTEE: Raphael and Viviane Souza Shterensis Holding LLC CONSIDERATION: $120,000 FINANCING: EFFECT ON SALES PRICE: CONDITION OF SALE: PROPERTY RIGHTS CONVEYED: Cash to seller None Arms-length Fee Simple PHYSICAL CHARACTERISTICS: LOCATION: 209 SW 11 th Avenue, Delray Beach, Florida LAND SIZE: 6,900 square feet 27

30 COMPARABLE SALE NUMBER 5 (CONTINUED) ENCUMBRANCES: EFFECT ON PURCHASE PRICE: ZONING: HIGHEST AND BEST USE: LEGAL DESCRIPTION: APPRAISAL INDICATORS: SALE PRICE PER SQ FT: COMMENTS: Typical Utilities None R1A Residential District, Delray Beach For Assemblage or redevelopment Lot 3, Block 10 of Atlantic Gardens PB 14 Page 63 $17.39 per square foot of land area This site consists of an older single family residence that is an area of numerous re-development projects associated with the CRA and its efforts to revitalize the West Atlantic Corridor and Southwest Residential area. 28

31 COMPARABLE VACANT SALES LOCATION MAP SALE 1 SUBJ SALE 5 SALE 4 SALE 3 SALE 2 29

32 SUMMARY OF COMPARABLE VACANT SALES DATA UNIT SALE SALE SALE LAND SALE # DATE DATE ADDRESS SIZE PRICE ZONING 1 1/3/2014 $ 90, NW 1ST AVE 6,550 $ OSSHAD 2 1/10/2014 $ 180, SW 2ND ST 15,552 $ R1A 3 5/5/2013 $ 90, SW 2ND CT 5,170 $ R1A 4 12/20/2013 $ 74, SW 10TH AVE 6,900 $ RM 5 11/4/2013 $ 120, SW 11TH AVE 6,900 $ R1A SUBJ 35 SW 8th Avenue 6,900 RM 30

33 VALUATION - SALES COMPARISON APPROACH TO VALUE We reviewed numerous comparable sales located within the Delray Beach market area for the purpose of arriving at a market value for the subject land. In this instance, we attempted to review sales located in the general vicinity to arrive at a market value for the subject parcel. Our analysis considers that the subject land would be developed as part of an assemblage. Our review of the subject s land value is based on the Highest and Best Use, which is for future medium density residential development or assemblage. In addition to the five sales included in this report, we also considered over ten other sales for CBD zoned and related sites. The zoning district to the north of the subject area is CBD and the review of those sales reflected a higher overall range. The five sales reviewed included sales with current residential improvements, similar to the subject property. All but one of the sales are located in the southwest area of Delray Beach and all are located within two blocks of Atlantic Avenue. The sales sold within the past 11 months with the most recent sale in January of These five sales indicated a unit sale price range of $10.80 to $17.41 per square foot of land area. The sales ranged in size from a low of 5,170 square feet to a high of 15,552 with three of the sales most similar in size (6,550 square feet to 6,900 square feet) to the subject size at 6,900 square feet. Three of the sales have R1A zoning and are less intense than the subject property zoning of RM. One sale is zoned OSSHAD and this property is located north of Atlantic Avenue in an area of single family residential development. The proximity to the new developments and Atlantic Avenue were considered a major factor in the valuation of the subject property. The lands having frontage on Atlantic Avenue have a market value range in the $30.00 to $40.00 per square foot range. Properties in the CBD adjoining the Atlantic Avenue frontage are in the $20.00 to $25.00 per square foot range. The comparable sales are located more south and north of the Atlantic Avenue proximity parcels and reflect a lower overall market value range from a low of roughly $10 to $17 per square foot. 31

34 VALUATION - SALES COMPARISON APPROACH TO VALUE Sale 1 was a vacant parcel located north of Atlantic in a more residential area and sold for $13.74 per square foot of land area. Sale 2 was a much larger parcel and included a vacant and improved parcel. The size allows for future valuation without any additional assemblage and is located further south than the subject property. Sale 3 is also located further south and adjoins vacant lands with a minimal improved property. Sale 4 is located further south than the subject and has the same zoning as the subject property. This sale shows the lowest overall unit sale price at $10.80 per square foot of land area. Sale 5 is located south of 2 nd Street and further west and sold for $17.39 per square foot. This site is improved and although redevelopment of this site is in the future, it reflects the overall upper end of the land values, south of the CBD district. Based on the overall review of all land sales and value ranges in the neighborhood, it is our opinion that the market value would be at the upper end of the range in sales included in this report and less than the range for sales located in closer proximity to Atlantic Avenue. CONCLUSION - SALES COMPARISON APPROACH TO VALUE Based on our review of all of the sales data and considering the changing market conditions and the overall demand for vacant lands at this time, it is our opinion a market value of $17.00 per square foot would be applicable to the subject parcel. This indicates the following market value for the subject s parcel of land. SUBJECT PROPERTY LAND ONLY 6,900 SF X $17.00/SF = $117,300 32

35 RECONCILIATION The reconciliation involves the analysis of the various approaches to value. In this assignment, the Sales Comparison Approach to Value was the only applicable method of valuation. The Cost and Income Approaches were not considered applicable since the current improvements are not the highest and best use. Therefore, we have considered this a land only appraisal and the highest and best use is for redevelopment or assemblage. The Sales Comparison Approach considered various sales of similar lands in the Delray Beach area and this analysis indicated a market value of $117,300. The property is under contract for $135,000, however the contract is contingent on the CRA acquiring an appraisal of the property and approval of the CRA board. Based upon our review of the various scenarios considered in the Market Approach to Value, it is our opinion that the market value of the subject property as of March 25, 2014 is as follows: ONE HUNDRED SEVENTEEN THOUSAND THREE HUNDRED DOLLARS ($117,300) 33

36 ASSUMPTIONS AND LIMITING CONDITIONS The legal description furnished to the appraiser is assumed to be correct. All existing liens and encumbrances have been considered, however, the property is appraised as though free and clear, under responsible ownership and competent management. The information identified in this report as being furnished to the appraiser by others is believed to be reliable; however, the appraiser assumes no responsibility for its accuracy. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. It is assumed that the utilization of the land any improvements are within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. The distribution, if any, of the total valuation in this report between land and any improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. Possession of this report, or copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualifications and only in its entirety. 34

37 ASSUMPTIONS AND LIMITING CONDITIONS (Continued) Disclosure of the contents of this appraisal is governed by the Bylaws and regulations of the American Society of Appraisers. The appraiser herein by reason of the appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in questions unless arrangements have been previously made. Neither all, nor part of the contents of this report, especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected, shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. The Americans with Disabilities Act ("ADA") became effective January 26, I have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since I have not direct evidence relating to this issue, I did not consider possible noncompliance with the requirements of ADA in estimating the value of the property. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on, or in the property. The appraiser 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. 35

38 CERTIFICATION I certify that, to the best of our 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 our personal, unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. We have previously completed an appraisal of this property in September of 2012 with no other appraisal services completed in previous three years. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimated, the attainment of a stipulated result, or the occurrence of a subsequent event. My analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice of The American Society of Appraisers and The Appraisal Foundation. I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance in the preparation of this report. My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice. I have met or exceeded the minimum prescribed educational requirements for Recertification as an Accredited Senior Appraiser (ASA) of the American Society of Appraisers. Robert D. Miller, ASA State Certified General R.E. Appraiser No. RZ

39 ADDENDUM

40 SUMMARY APPRAISAL REPORT OF 6,900 SQUARE FEET OF LAND AREA LOCATED AT 35 SW 8th AVENUE DELRAY BEACH, FLORIDA AS OF MARCH 25, 2014 PREPARED FOR MS. KRISTYN COX CITY OF DELRAY BEACH COMMUNITY REDEVELOPMENT AGENCY

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60 QUALIFICATIONS OF APPRAISER ROBERT D. MILLER, ASA EDUCATION: PROFESSIONAL AFFILIATION: LICENSED: Appraisal Institute Courses SSP Standards of Professional Practice I-A Fundamentals of Real Estate Appraisal I-B Capitalization Theory and Techniques 8 Appraising a Single-Family Residence 2-1 Case Studies in Real Estate Valuation 2-2 Report Writing Business Valuation Seminar Litigation Valuation Other Appraisal Courses Mass Appraisal of Residential Properties Florida State Law and USPAP Factory Built Housing Automated Valuation Models Senior Member of American Society of Appraisers- South Florida Chapter No. 82 Accredited Senior Appraiser (ASA) Real Property Urban Real Estate Broker- State of Florida- Inactive Certified General Real Estate Appraiser RZ#1270- State of Florida EXPERIENCE: 1995-Present Real Estate Appraiser- Owner Appraisal Firm Vice President-The Urban Group, Inc Real Property Analysts, Inc., Fort Lauderdale, Florida, Executive Vice President 1987 Involved in United States Senate Study Right-of-Way Acquisition Procedures QUALIFIED AS EXPERT WITNESS FOR: Condemnation proceeding in Lake, Kankakee, Cook and DuPage Counties, Illinois and Broward, Dade, Monroe, Palm Beach and Duval Counties, Florida. Testified in Bankruptcy Court in Florida and Texas and Federal Court in Miami, Florida HAS COMPLETED: Appraisal Assignments Counseling Commercial, vacant and improved Acquisition projects Condemnation projects Income tax analysis Industrial, vacant and improved Investment analysis Multi-family residential, Tax assessments Mobile Home Parks ROW Cost Analysis Office, vacant and improved Special assessments Special purpose properties Review Services

61 VARIOUS CLIENTS OVER THE PAST TEN YEARS GOVERNMENT PRIVATE ATTORNEY BROWARD COUNTY BROWARD COUNTY SCHOOL BOARD CHARLOTTE COUNTY CITY OF CORAL SPRINGS CITY OF DELRAY BEACH CITY OF FORT LAUDERDALE CITY OF FORT MYERS CITY OF HALLANDALE BEACH CITY OF HOLLYWOOD CITY OF LAUDERDALE LAKES CITY OF OAKLAND PARK CITY OF KEY WEST CITY OF MIAMI SPRINGS CITY OF POMPANO BEACH CITY OF RIVIERA BEACH CITY OF SUNRISE FEDERAL AVIATION ADMINISTRATION FLORIDA DEPARTMENT OF TRANSPORTATION LEE COUNTY PALM BEACH COUNTY PALM BEACH COUNTY SCHOOL BOARD SMALL BUSINESS ADMINISTRATION SOUTH FLORIDA WATER MANAGEMENT TOWN OF DAVIE US DEPARTMENT OF HOUSING & URBAN DEVELOPMENT ALTMAN DEVELOPMENT CORPORATION BELLSOUTH MOBILITY CLEAR CHANNEL OUTDOOR CLEVELAND CLINIC LENNAR HOMES THE TAUBMAN COMPANY SBA TOWERS INC. UNITED HOMES WAL-MART CORPORATION AKERMAN-SENTERFITT ARNSTEIN & LEHR BECKER & POLIAKOPF BRIGHAM-MOORE COKER AND FEINER BRIAN PATCHEN PA HOLLAND & KNIGHT RUDEN MCCLOSKY TEW CARDENAS VANCE DONEY & MACGIBBON GOREN CHEROF DOODY & EXROL PA WEISS-SEROTA-HELFMAN