MY OPEN DOOR POLICY. Laurel Kelly, CFA Martin County Property Appraiser (772) pa.martin.fl.us

MY OPEN DOOR POLICY Fairly appraise all properties, so you pay only your required share of taxes. Treat everyone with courtesy, honesty and respect. Our public records are always open for inspection and we will give you the time necessary to explain our methods and procedures. The Property Appraiser s office belongs to the people of Martin County. My door is always open for questions, comments and concerns. Laurel Kelly, CFA Martin County Property Appraiser (772) 221-1374 pa.martin.fl.us

Top Taxpayers Median Sales Prices Number of Homes Taxable Value Change FUN FACTS My Open Door Policy

FUN FACTS 94,627 Real property parcels 3,530 Commercial & industrial parcels (3.7% of RP parcels) 10,140 Tangible personal property businesses $30.3 Billion Total just value $20.7 Billion Total taxable value 43 Full & part time employees 48,154 Single family homes 14,928 Residential condominium units $5.3 Billion Total taxable value Commercial/industrial (Incl. TPP 26% of total taxable)

FUN FACTS 4,705 Mobile homes owning land 44,625 Properties with homestead (47% of all properties) 17,806 ft2 Largest house 409 Restaurants 33 Golf courses 2,592 Limited income senior exemptions 469 Houses built before 1940 $38 Mil Highest sale on a single family home 185 Parks & conservation areas

TOP 10 TAXPAYER VALUES $2.3 Billion $83 Million $57 Million $56 Million $48 Million $46 Million $43 Million $41 Million $36 Million $32 Million 1. Florida Power & Light Company 2. Treasure Coast-JCP Assoc LTD 3. Tiger Woods Properties 4. Indiantown Cogeneration LP 5. Florida Gas Transmission Co 6. Publix Super Markets Inc 7. Jeffrey H Sands 8. Florida East Coast Railway LLC 9. Ted Glasrud Associates FL LLC 10. Arium Jensen Beach LLC

IN THOUSANDS MEDIAN SALE PRICE 2006...$345,000 (Peak) 2007...$313,450 2008...$262,500 2009...$222,500 2010...$225,000 2011...$205,000 (Low) 2012...$219,900 2013...$250,000 2014...$270,000 2015...$280,000 2016...$293,000 2017..$300,000 SINGLE FAMILY HOMES (ARMS LENGTH) $400 $345 $350 $313 $262 $223 $225 $220 $250 $270 $280 $293 $300 $300 $250 $205 $200 $150 $100 $50 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

NUMBER OF HOUSES 2006...1,670 2007...1,739 (Peak) 2008...845 2009...349 2010...181 (Low) 2011...220 2012...219 2013...317 2014...380 2015...393 2016...467 2017...443 ADDED TO THE TAX ROLL 2,000 1,800 1,670 1,749 1,600 1,400 1,200 845 1,000 800 600 349 467 317 380 393 443 400 181 220 219 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

TAXABLE VALUE PERCENT CHANGE YEAR TO YEAR COMPARISON 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% 3.46% 6.74% 7.24% 7.06% 16.33% 14.45% 10.88% 7.70% 20.85% 6.22% 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17-2.00% -1.10% -6.91% -9.14% -8.90% 5.19% 5.04% 6.14% 1.48% 2.96%

THE MOST UNUSUAL AGRICULTURE USE THE ZONKEY

MARTIN COUNTY PROPERTY APPRAISER Responsibilities & Challenges

APRIL 1 ST TPP DEADLINE TO FILE Who is required to file a Tangible Personal Property tax return with the Martin County Property Appraiser? Anyone in possession of assets on January 1, who has a proprietorship, partnership, corporation, or is a self employed agent or contractor, must file each year. All new and previously taxed owners are required to timely file a TPP return by April 1 st each year.

TANGIBLE PERSONAL PROPERTY UPDATE Florida Statute 196.182 Exemption on Renewable Energy Devices Eighty percent of the assessed value of a renewable energy source device, defined in s. 193.624, that is considered tangible personal property is exempt from ad valorem taxation. This means any of the following equipment that collects, transmits, stores, or uses solar energy, wind energy, or energy derived from geothermal deposits (i.e. solar energy collectors, rockbeds, thermostats, heat exchange devices, pumps & fans, roof ponds). This exemption was designed to exempt solar energy devices from property tax valuation for home, commercial, and industrial properties that fall under the tangible personal property tax bracket. This would extend already existing tax programs for residential properties and add exemptions for commercial and industrial properties. The exemptions granted by Amendment 4 were set to begin in 2018 and continue for 20 years.

TANGIBLE PERSONAL PROPERTY UPDATE Category 24 Is now renewable energy devices Category 25 Other

2018 PROPOSED CONSTITUTIONAL AMENDMENT NEW HOMESTEAD EXEMPTION In 2017, the Florida Legislature approved an additional $25,000 Homestead Exemption, bringing the total exemption amount to $75,000. If Florida voters approve the constitutional amendment on the November 2018 election, the $75,000 homestead exemption will apply to your 2019 property taxes.

FAQ S What is the Proposed Homestead Exemption? If passed by Florida voters, the homestead exemption will increase from $50,000 to $75,000 on properties with assessed values between $100,000 and $125,000. What if my property s assessed value is less than $100,000? Since the additional $25,000 homestead exemption will only apply to properties with an assessed value greater than $100,000, your current homestead exemption amount will not change.

TAXABLE VALUE IMPACT

PORTABILITY OF YOUR SAVE OUR HOMES BENEFIT Portability allows you to transfer your accumulated Save Our Homes benefits when you move from one homestead to another anywhere in Florida within 2 years. The SOH benefit is the difference between a property s market value and its assessed value.

THE ANSWER TO ALL THESE QUESTIONS IS YES! Are you tired of working overtime and never catching up? Do you wish your ideas could be heard? Would you like to be part of resolving issues? Do you wonder if there is a way to level out your workload? Is there something I can do to help? TEAM WORK MAKES LEAN WORK!

WHAT DOES IT MEAN TO BE LEAN? PURPOSE MISSION STRATEGY GOALS To inspire a commitment to quality, continuous improvement, perfecting processes, and deliver exceptional customer service. To create a culture that continually improves its people to communicate better, resolve issues faster, and grow together. To analyze business processes in order to identify waste, build in quality, and empower employees through their involvement. To focus on our customers, pursue excellence, work as a unified office, and act with integrity.

ANALYZING PROCESSES BEFORE AFTER WASTE REMOVED

AERIAL IMAGERY ADVANCEMENTS 5 Year Physical Inspections Department of Revenue (DOR) requires we inspect each property once every 5 years Martin County has 95,000 parcels

AERIAL IMAGERY ADVANCEMENTS 2004 2009 2013 2017

AERIAL IMAGERY ADVANCEMENTS

AERIAL IMAGERY ADVANCEMENTS Oblique Imagery is aerial imagery captured at an angle of 40 to 45 degrees. Advantage is the ability to see what is underneath eaves to confirm porches, screened porches and living space enclosures. Able to measure wall heights and roof pitch.

AERIAL IMAGERY ADVANCEMENTS

VILLAGE OF INDIANTOWN NEW MUNICIPALITY

VILLAGE OF INDIANTOWN NEW MUNICIPALITY Local Chamber describes community as Clean, Green and High-Tech. Census data estimated population 6,083. 63% of participated voters voted Yes (576-337). Became official on December 31, 2017.

VILLAGE OF INDIANTOWN NEW MUNICIPALITY Estimate based on 2016 Preliminary Tax Roll

VILLAGE OF INDIANTOWN NEW MUNICIPALITY

WEBSITE NEW LOOK

APPRAISING COMMERCIAL PROPERTIES

ALWAYS CHANGING DATA ORGANIZATION

DIFFERENT PROPERTY TYPES DIFFERENT DATA Multi-Family Properties

DIFFERENT PROPERTY TYPES DIFFERENT DATA Retail Properties

DIFFERENT PROPERTY TYPES DIFFERENT DATA Gas Station Properties

ANALYZING DATA QUALIFYING A SALE

MARKET VALUE ASSESSED VALUE Property #1 Bldg Size 5,250 SF Sold for $1,050,000 $200.00 per SF Property #2 Bldg Size 5,500 SF Sold for $1,100,000 $200.00 per SF Property #3 Bldg Size 4,950 SF Sold for $990,000 $200.00 per SF Property #4 Bldg Size 5,000 SF

MARKET VALUE ASSESSED VALUE

COST APPROACH LAND SALES Land Sales # Address Zoning Land Use Acres Land (SF) Sales Date Sales Price $/SF 1 1365 NW JENSEN BEACH BV MC-GC MC-COMM. GENERAL 1.064 46,348 Oct-16 $1,150,000 $24.81 2 xxx NW JENSEN BEACH BV MC-B-1 MC-COMM. GENERAL 7.070 307,969 Aug-16 $2,700,000 $8.77 3 8605 SE FEDERAL HW MC-GC MC-COMM. GENERAL 6.110 266,152 Apr-16 $3,400,000 $12.77 4 10455 SE FEDERAL HWY MC-CC MC-COMM. GENERAL 2.618 114,031 Sep-15 $1,300,000 $11.40 5 6840 S KANNER HWY MC-GC MC-COMM. GENERAL 2.391 104,152 Mar-15 $1,175,000 $11.28 Min $8.77 Max $24.81 Mean $13.81 Most weight on Comparables #3, #4 & #5 $11.82 Subject Property Less Cost of Sales $10.05 Address Zoning Land Use Acres Land (SF) Land Value $/SF 3498 NW FEDERAL HWY MC-PUD-C MC-COMM. GENERAL 6.035 262,876 $2,628,760 $10.00

COST APPROACH LAND + IMPROVEMENTS Cost Approach Zoning Land Use Acres Sq. Ft Rate/SF Value PUD-C Comm Gen 6.035 262,876 $10.00 $2,628,760 Card # Type Size (SF) Rate/SF Bldg Imp Site Imp Phys. Depr Quality Yr Blt EYB C01: Medical Office / Health Club 56,286 $85.21 $4,796,410 + $143,040 $4,939,450 37% Good 1990 1990 Total Cost: Land, Building & Site Improvements $7,568,210

SALES APPROACH COMPARING PROPERTIES Golf Courses

Office Buildings SALES APPROACH COMPARING PROPERTIES Sales Approach # Address Sales Date Sales Price $/SF Bldg (SF) Comments 1 73 SW FLAGLER AVE Sep-16 $1,000,000 $222.22 4,500 The Stewart Building 2 701 COLORADO AV Mar-16 $1,500,000 $167.88 8,935 Rogers, Golden, Chappel, Hall, CPA 3 300 SW DIXIE HWY Jan-16 $210,000 $194.44 1,080 Downtown Stuart, S Side of RR 4 205 SE OSCEOLA ST Nov-15 $297,500 $255.58 1,164 Office Bldg 5 1339 E OCEAN BV Nov-15 $208,300 $172.72 1,206 Clemons RE 6 320 SW FEDERAL HWY Oct-14 $379,000 $232.09 1,633 Tile Market bldg 7 1055 E OCEAN BLVD Jun-13 $215,000 $182.05 1,181 Halverson, CPA 8 872 S COLORADO AV Mar-12 $273,500 $189.67 1,442 Fmr Atty; Music Room & Wine Bar near US 1 Min $167.88 Max $255.58 Mean $202.08 Median $192.06 Most weight on the subject property sale $220.00 Less 15% COS $187.00 Subject Property Address Assessed Value $/SF Bldg (SF) Comments 73 SW FLAGLER AVE $841,500 $187.00 4,500 The Stewart Building

INCOME APPROACH DEVELOP PRO-FORMA Income Approach Apartments Units Rent/mo Rent/yr Total 2-Bedroom 272 Misc & Storage Unit Income 272 $144 $39,168 Total 272 $39,168

Market Rental Data INCOME APPROACH MARKET DATA Multi-Family: Rental Data by Bedroom Market Area One Bedroom Two Bedroom Three Bedroom Four Bedroom Count 37 233 106 4 Min $625 $825 $1,050 $1,650 Max $1,300 $2,100 $3,200 $1,800 Mean $943 $1,262 $1,588 $1,725 Median $950 $1,200 $1,550 $1,725 Avg Size (SF) 751 1,202 1,602 1,702 Avg $/SF $1.28 $1.06 $1.01 $1.02 (Source: Matrix (MLS) Jun 2016 to Jun 2017 - Based on 380 Leased Comparables in Martin County) Multi-Family: Data by Market Area Market Area One Bedroom Two Bedroom Three Bedroom Four Bedroom Total Avg Rent / Month Avg $/SF 1 2 2 $1,500 $1.24 3 16 40 8 64 $1,239 $1.17 6 1 3 4 2 10 $1,415 $0.97 7 6 23 27 56 $1,368 $1.01 8 12 65 25 1 103 $1,266 $1.10 9 1 50 22 73 $1,437 $1.06 12 1 4 11 16 $1,565 $1.05 14 46 9 1 56 $1,265 $0.97 Total 37 233 106 4 380 $1,327 $1.07 (Source: Matrix (MLS) Jun 2016 to Jun 2017 - Based on 380 Leased Comparables in Martin County) Area 8: Stuart Proper - South of Roosevelt to Indian Street One Bedroom Two Bedroom Three Bedroom Four Bedroom One Bedroom Two Bedroom Three Bedroom Four Bedroom Rent / Month $/SF Count 12 65 25 1 Count 12 65 25 1 Min $625 $875 $1,300 $1,750 Min $0.89 $0.76 $0.76 $1.10 Max $1,300 $1,800 $3,200 $1,750 Max $1.61 $1.39 $1.33 $1.10 Mean $927 $1,211 $1,555 $1,750 Mean $1.31 $1.10 $1.01 $1.10 Median $950 $1,200 $1,500 $1,750 Median $1.31 $1.10 $0.98 $1.10 (Source: Matrix (MLS) Jun 2016 to Jun 2017 - Based on 103 Leased Comparables in Market Area)

INCOME APPROACH RENTAL DATA Harbour Cay Comparable Apartment Complexes Model Name Bed(s) Bath(s) SF Rent/Mo Complex Name Model Name Bed(s) Bath(s) SF Rent/mo Winward 2 1 732 $995 Arium Pine Lakes Blue Heron 2 2 1,039 $1,246 Mariner 2 2 1,158 $1,125 Arium Pine Lakes Blue Heron 2 2 1,039 $1,561 Beacon 2 2 1,158 $1,283 Coquina Cove Monarch 2 2 1,076 $1,380 Bermuda 2 2 1,158 $1,390 Willoughby Cove N/A 2 2 1,076 $1,380 Min 732 $995 Arium Jensen Beach N/A 2 2 1,085 $1,435 Max 1,158 $1,390 Arium Jensen Beach N/A 2 2 1,085 $1,722 Mean 1,052 $1,198 Arium Jensen Beach N/A 2 2 1,123 $1,538 Arium Jensen Beach N/A 2 2 1,123 $1,869 Heritage Cove St. Lucie 2 1 960 $1,140 Heritage Cove St. Lucie 2 1 960 $1,365 Heritage Cove Donaldson 2 1 969 $1,125 Heritage Cove Donaldson 2 1 969 $1,350 Heritage Cove Pierce 2 2 1,085 $1,255 Heritage Cove Pierce 2 2 1,085 $1,480 Heritage Cove Loran 2 2 1,123 $1,305 Heritage Cove Loran 2 2 1,123 $1,550 Min 960 $1,125 Max 1,123 $1,869 Mean 1,058 $1,419

INCOME APPROACH DEVELOP PRO-FORMA Income Approach Apartments Units Rent/mo Rent/yr Total 2-Bedroom 272 $1,200 $14,400 $3,916,800 Misc & Storage Unit Income 272 $144 $39,168 Total 272 $3,955,968

Regional & National Data INCOME APPROACH MARKET DATA Regional & National Data: Multi-Family Effective Gross Income Expenses Expense Ratio % Net Operating Income Avg Sale $/Unit Cap Rates Martin County $673 $349 50.0% $355 $100,236 7.1 Jacksonville $853 $475 55.7% $377 $60,071 7.5 Miami / Ft Lauderdale $1,402 $659 47.0% $743 $113,726 7.8 Orlando $948 $475 50.1% $473 $70,644 8.0 Tampa Bay $968 $448 46.3% $520 $78,551 7.9 Southern Region $1,093 $531 48.6% $562 $85,980 7.8 National Market $1,129 $458 40.6% $671 $95,340 8.4 Min $673 $349 40.6% $355 $60,071 7.1 Max $1,402 $659 55.7% $743 $113,726 8.4 Mean $1,009 $485 48.3% $529 $86,364 7.8 (Source: Martin County is Local Derived data; Other markets are from RealtyRates: 4th Quarter 2016)

INCOME APPROACH DEVELOP PRO-FORMA Income Approach Apartments Units Rent/mo Rent/yr Total 2-Bedroom 272 $1,200 $14,400 $3,916,800 Misc & Storage Unit Income 272 $144 $39,168 Total 272 $3,955,968 Total 272 $3,955,968 Vacancy & Collection Loss -5% ($197,798) Effective Gross Income $3,758,170 Operating Expenses -50.0% ($1,879,085) Net Operating Income $1,879,085

Capitalization Rates INCOME APPROACH MARKET DATA Market Derived Cap Rates Property Type Min Max Mean Median Count Hotel / Motel 3.0 17.9 9.1 8.8 41 Office (Medical) 5.0 11.2 7.4 7.1 21 Mobile Home Park 6.3 14.1 10.0 9.4 13 Multi-Family 4.1 17.6 7.2 6.8 420 Office (General) 2.0 19.6 8.0 8.0 164 Retail 3.4 13.5 6.4 6.0 101 Self Storage 3.8 13.0 6.3 5.9 25 Service Station 4.5 13.3 6.8 5.8 17 Shopping Center 2.9 12.6 7.7 7.6 142 Industrial / Flex 4.4 15.7 7.8 7.8 89 (Source: Co-Star data of Sales from Jan 2014 to Jun 2017; Sales from Brevard, Indian River, Lake, Martin, Orange, Osceola, Palm Beach, Seminole and St. Lucie Counties)

Sales Data INCOME APPROACH DATA FROM THE MARKET Sales Data: All Apartment Sales Martin St Lucie Indian River Brevard Treasure Coast $/SF $/Unit $/SF $/Unit $/SF $/Unit $/SF $/Unit $/SF $/Unit Cap Rate Min $96.66 $60,870 $32.11 $33,500 $38.76 $31,010 $22.21 $21,926 $22.21 $21,926 4.6 Max $139.51 $147,500 $156.25 $120,313 $132.14 $86,957 $176.32 $178,191 $176.32 $178,191 11.5 Mean $118.13 $100,236 $82.04 $64,525 $71.77 $53,884 $68.85 $56,429 $75.97 $61,142 8.1 Median $112.24 $95,000 $84.66 $59,094 $74.41 $50,834 $55.07 $43,750 $75.19 $52,917 8.0 (Source: Co-Star data from Jan 2015 to Jun 2017 - Based on 72 Sales)

FINAL VALUE RECONCILIATION Income Approach $20,609,317 Sales Approach $21,744,000 Cost Approach $18,658,500 Reconciled Value $20,400,000

2017 REPORT REAL ESTATE DATA