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F. Airport BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY MEETING DATE: 4/18/07 DIVISION: COUNTY ADMINISTRATOR BULK ITEM: Discussion Item DEPARTMENT: AIRPORTS STAFF CONTACT PERSON: Peter Horton Phone: 292-3518 AGENDA ITEM WORDING: Discussion of lease renewal for the Boys & Girls Club of the Keys (Teen Center), situated on the Key West International Airport. ITEM BACKGROUND: The current agreement expires May 4, 2007. An appraisal report for this property, dated January 10,2007, is attached for reference. PREVIOUS RELEVANT BOCC ACTION: Approval of current lease agreement for the term of 5/5/97 through 5/4/07, October 15, 1997. CONTRACT/AGREEMENT CHANGES: n/a STAFF RECOMMENDATION: n/a TOTAL COST: BUDGETED: Yes COST TO AIRPORT: COST TO PFC: COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: AMOUNT PER MONTH /YEAR: APPROVED BY: County Attorney X OMB/Purchasing X Risk Management X DOCUMENTATION: Included X Not Required AGENDA ITEM # DISPOSITION: /bev AO 11/06 r I ~'j I' 1:1 "J 71 U l"';'] '~';' l I ~ ~I - I ~ I I ) 1 J J 1 I APPRAISAL REPORT Summary Appraisal Report Property Type: Community Center - Public Use Facility Located At: 3491 SOUTH ROOSEVELT BOULEVARD KEY WEST, FLORIDA 33040 Prepared For: Ms. BEVETTE MOORE, AIRPORT OPERATIONS COUNTY OF MONROE, AIRPORT BUSINESS OFFICE KEY WEST INTERNATIONAL AIRPORT 3491 SOUTH ROOSEYEL T BOULEY ARD KEY WEST, FL 33040 Site Visit and Valuation Date: JANUARY 10, 2007 Prepared By: MARIA V. WILSON STATE-CERTIFIED GENERAL REAL ESTATE ApPRAISEF CERTIFICATION No. RZ 0002686 RICHARD PADRON, CCIM, MSA ST A TE-CER TIFIED GENERAL REAL ESTATE ApPRAISER CERTIFICA TION No.: RZ 0000544 APPRAISAL COMPANY OF KEY WEST 3229 Flagler Avenue, Suite 101 Key West, Florida 33045 OUR FILE NO.: 458-06 ;t.1 :; I ..! ~",'1 ;~" 4: ~~ .}i 0' (1 I I i1 - m 1,.1 I I I ~ ~ j 1 1 I . ~~-RAJSAL CO. 3229 Flagler Avenue, Suite #101 Key West, Florida 33040 Telephone: (305) 296-4568 Fax: (305) 2~93 Website: Ila-keysappraisals.com Email: jim@f1a-keysappraisals.com January 29, 2007 Ms. Bevette Moore, Airport Operations County of Monroe, Airport Business Office Key West International Airport 3491 South Roosevelt Boulevard Key West, FL 33040 RE: Appraisal Report Teen Center 3491 South Roosevelt Boulevard Key West, Florida 33040 Our File No.: 458-06 Dear Ms. Moore: We have performed a summary appraisal report to estimate both the "As Is" Market Value of the Fee Simple Interest and the Fair Annual Market Rent on a Triple Net Basis for the subject property, commonly known as the Teen Center located at 3491 South Roosevelt Boulevard, Key West, Florida. The appraisers have personally examined and appraised the subj ect property for the purpose of reporting to you our opinion of the value as of January 10, 2007. The assumptions and the real estate referenced above are more clearly defined in the general and extraordinary assumptions and limiting conditions and in the property description section of this report. The attached limited appraisal process has been prepared to comply with our understanding of the requirements of the Uniform Standards of Professional Appraisal Practice. The subject property is a corner, rectangular-shaped parcel with 94 linear feet of frontage along the south side of South Roosevelt Boulevard, Highway AlA, extending northerly approximately 200 feet in depth for a total of 18,800 square feet. The site which is the subject of this report is a small portion of a larger parcel commonly known as the Key West International Airport owned by Monroe County. lIII1Ilndividual ~l.mben Your Pmf.,..ionaJ C"",m.n:ial.ln..,.tme"t R.al Uta'. s...."'~ ~ lB. lJI".'O'" ~'.j ~~. a, ~l ~ ~j lEj 1<<",... I I ~ :J '~ I I '! 1 ] ~ j I Ms. Bevette Moore, Airport Operations County of Momoe, Airport Business Office Key West International Airport January 29, 2007 Page No.2 The appraisers performed a site visit and personal walk through examination of the subject improvements with some measurements taken on-site, as well as the measurements taken from the sUlVey provided. The appraisers relied upon the legal description and the partial survey, which was included as Exhibit "A" attachment in the lease to the "Teen Center." The subject property contains 18,800 square feet or 0.432 acres; however, according to the Momoe County Property Card the subject property is only a very small part of a larger 156.36 acre parcel, commonly known as the Key West International Airport. For purposes of our evaluation within this report, we have utilized the metes and bounds legal description and measurement taken for the sUlVey which are included in the addenda section of this report, Any deviations from these sizes may result in a change in value. The Momoe County Tax Assessors Records were utilized for verification, which indicated slightly different measurements than the survey. Hence, we have utilized the survey, plus on-site measurements, as the basis for our evaluation. Any deviations from the subject site's dimensions or size would likely result in a change in value. The "As Is" evaluation ofthe subject property, commonly known as the "Teen Center," 3491 South Roosevelt Boulevard, Key West, Florida, is improved with a one-story CBS/masonry building, which contains 4,569 square feet of gross building area, which has historically been used as a community center, There is also an attached one-store wood frame storage building which contains 307 square feet. Hence, there is a total of 4,876 square feet of gross building area. The appraisers utilized measurements taken from the survey, as shown on the building sketch and calculations included in the addendum section of this report, for our analysis. According to the Momoe County Tax assessor's records, the subject structure was built in 1968. It should be noted that the Teen Center was being operated at the time of walk through inspection; however, our evaluation does not take any personal property into consideration. Market Value is defined as the most probable price in cash (or its equivalency) for which the appraised property will sell in a competitive market under all conditions requisite to a fair sale. Market value assumes a normal or reasonable time for exposure on the open market. This report contains the results of our investigation and analysis made in order to furnish an estimate of the "As Is" Market Value of the Fee Simple Interest of the subject property described herein based on the Highest and Best Use. The Fee Simple Interest is the unencumbered value of the subject property; basically, market rents and terms are considered with no regard to existing leases and terms. The reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. ~'J il I ~ iN1 ~ <~ .,'.,"~'.' <'. { I I ~ :,1 '1 J j Ms. Bevette Moore, Airport Operations County of Monroe, Airport Business Office Key West International Airport January 29, 2007 Page No.3 The Leased Fee Interest is an ownership interest held by the landlord, who conveys the rights of use and occupancy to a tenant by lease. The landlord's rights include the right to receive rent and the right 0 f possession at the end of the lease period. As the lease on the subj ect property will terminate on May 4, 2007, a Leased Fee evaluation was not applicable. Furthermore, a part of our assignment was to determine the Fair Annual Market Rent on a Triple Net Basis for the subj ect property. Thus, we have not considered a Leased Fee evaluation, herein. Based on market analysis and research, it is our opinion that the "As Is" Market Value of the Fee Simple Estate ofthe subj ect property, commonly known as the "Teen Center" located at 3491 South Roosevelt Boulevard, Key West, Florida, based on the Highest and Best Use, subject to definitions, assumptions and limiting conditions, as of January 10, 2007 is: EIGHT HUNDRED TEN THOUSAND DOLLARS ($ 810,000) The "As Is" Market Value for the subject property considers no personal property. Based on Market Rental Analysis of rates for land and buildings with similar uses within the subject's market area, it is our opinion that the Fair Annual Market Rent, on a Triple Net Basis, subject to an allowance for the cost to cure the deferred maintenance, also subject to definitions, assumptions and limiting conditions, as of January 10, 2007 is: Fair Annual Market Rent: Fair Monthly Market Rent: Fair Annual RentlS.F. of Site Area: $ 56,400 $ 4,700 $ 3.00 Triple Net terms require the landlord to be responsible for property management and reserves for replacements, while the tenant pays real estate taxes, insurance, exterior maintenance, and all utility expenses. Upon research of recently negotiated leases, these terms appear to be more prevalent for commercial properties within the subject's immediate area than other terms. The Appraisers have assumed that the site does not have any environmental concerns. The Appraisers reserve the right to amend the valuation herein upon notification of any deficiencies or nUIsances. This is a summary appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2-4 the Uniform Standards of Professional Appraisal Practice for a summary appraisal report. As such, it might not include full discussions ofthe data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Such r:I ~ ~;!j Ms. Bevette Moore, Airport Operations County of Monroe, Airport Business Office Key West International Airport January 29, 2007 Page No.4 Pl [J ~.,','J:,"'," ".. , discussion of the data would not change the appraisers' opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The information con- tained in this report is specific to the needs ofthe client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. If you have any questions regarding this appraisal report, please feel free to contact us. Thank you for giving us the opportunity to provide this service for you. Respectfully submitted, I ~ iA ~ ',~,.,,', it '.~,{ ~ I I 'j 1 ] 1 j 1 ~~~. r{ a~ \,'. LJJJ:Ur-~ Richard Padron, CCIM, MSA State-Certified General Real Estate Appraiser License No. RZ 0000544 Maria V. Wilson State-Certified General Real Estate Appraiser License No. RZ 0002686 Report Attached: R:\Comm-06\458-06\Comm-06-458.wpd i7""".,,), r ~' ~', \11 I ~ - }1,.,.,., ;j ~,',.",','" ~ ~ I 'j ] j 1 ] 1 Summary Aff1raisal Report , Teen Center, 3491 S. Roosevelt Boulevard, Key West, ,FL, ~' [1fT II I_II -~'il'1f'Iiii'~~~_r-~1i,t(Jt~ SUMMARY OF FACTS AND CONCLUSIONS Subject Property Address: Teen Center 3491 South Roosevelt Boulevard Key West, Florida 33040 Mile Marker: Highway AlA, Mile Marker Four (4) Property Type: Community Center - Public Use Facility Land Size: 18,800 square feet or 0.432 Acres Site Description: The subject property is a corner, rectangular-shaped parcel with 94 linear feet of frontage along the south side of South Roosevelt Boulevard, Highway AlA, extending northerly approximately 200 feet in depth or a total of 18,800 square feet. The site is a small portion of a larger parcel commonly known as the Key West International Airport owned by Monroe County. Zoning: A. Airport District, City of Key West. Highest and Best Use: For redevelopment of airport ancillary uses or support services. Gross Building Area (GBA): Subject Property - Building Improvements Summary Buildings CODS truetioD ldendfication Use TvPe GBA (SF! Main Building Public Use CBS/M asonry 4,569 Rear of Building Storagt; Wood Frame 307 Total 4,876 Value Indications: a.ec...tIoB 341111. .....YIIt IIelIIevard. Kef ....... JIIaddI "AlII" M~V'" Cost Approach Inco~ Approach Sales Comparison Approach Mllrket VII. "!lbMIle ... Not Applicable 5625,000 5860,000 "As Is" Market Value as DC January 10, 2007 I (Rounded): $810,000 Appraisal Company of Key West Page 1 ~"'I @jl .tl I E ~ m ~j' }; ~. ~ i I ~ ~ ~ ] ~ =;,~~~,~~, Date of Site Visit: Valuation Date: Date of Report: Marketing Time: Exposure Time: Extraordinary Assumption: . Teen C~~ter, 3491,~~:l=~~ Potential Fair Market Rent for Subject Property Lel.ablt AnnUli Annual Lend Building Monthly AnnUli RIIm/8F Rlnt/8F Lea. Location Tl'PO ofUoo AN. SF G.B.A./SF Ron! Ron! Land G.B.A. Tonn 3491 S. Rooo.,.U Bhd. 'ubi'.....' S.,,,.. 18.800 4,876 54.700 556.400 $3.00 511.57 Tripi. Not The "As Is" Market Value considers no personal property. January 10, 2007 January 10, 2007 January 29, 2007 6 to 18 months based on a list price wi thin 5 percent of appraised value and based on stable economic conditions. 6 to 18 months based on a list price within 5 percent of appraised value. For purposes of our analysis, our Market Value evaluation was based on the Highest and Best Use of the subject property being for redevelopment. Furthermore, we have assumed that the subject property could be redeveloped as airport ancillary use or support services. In our evaluation of the Fair Annual Market Rent, the appraisers have assumed that the landlord would either repair the deferred maintenance or allow the prospective tenant a rent adjustment for the cost to cure the deferred maintenance. Appraisal Company of Key West Page 2 ,- kl ~,'::,~I ..till Pt:-i 'iF" "'."" ,',. I 1.-~J I I - ~ ~ ~,~. ~. Ii i I J j J I I I Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL SUMMARY APPRAISAL REPORT This is a process, summary appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a summary appraisal report. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion ofvalue. Supporting docwnentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. The reader is referred to the Scope of Work section of this report INTENDED USER! CLIENT: Ms. Bevette Moore, Airport Operations County of Monroe, Airport Business Office Key West International Airport 3491 South Roosevelt Boulevard Key West, FL 33040 APPRAISERS: Richard Padron, CCIM, MSA State-Certified General Real Estate Appraiser License No. RZ 0000544 Maria V. Wilson State-Certified General Real Estate Appraiser License No. RZ 0002686 SUBJECT: Teen Center 3491 South Roosevelt Boulevard Key West, Florida 33040 Appraisal Company of Key West Page 3 ;;;; ~.. , ~~ 1 fl ~ ;-1 I I - ~ I I I B','" 't, ,;' ~:~ ~ j J 1 1 Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL PURPOSE AND INTENDED USE OF THE APPRAISAL The purpose of this appraisal is to estimate both the "As Is" Market Value of the Fee Simple Interest and the Fair Annual Market Rent on a Triple Net Basis for the subject property, commonly known as the Teen Center located at 3491 South Roosevelt Boulevard, Key West, Florida, as of January 10, 2007. The value estimate is based on the land and existing improvements at the subject site. The intended use of this appraisal is to provide general information for asset management and for negotiating a new lease for the subject property. The intended user is Ms. Bevette Moore, Airport Operations, County of Momoe, Airport Business Office, Key West International Airport, 3491 South Roosevelt Boulevard, Key West, FL 33040. MARKET VALUE DEFINITION Market Value, in the definitions of the Uniform Standards of Professional Practice, is defined as: "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 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) pa}TI1ent 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." Fair Market Rent is the rental income that a property would most likely receive in the open market as indicated by current rents paid and asked for comparable space. Appraisal Company of Key West Page 4 ~.I I.: ;$ I t. i il fj !~, r;'1 (,~ iii'l ~j "'-", j I \I ~ - ~" :,"..~" ,;;:". '4\' ! j I ] ] J ~ 1 1 Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL PROPERTY RIGHTS APPRAISED This report contains the results of our investigation and analysis made in order to furnish an estimate of the "As Is" Market Value of the Fee Simple Interest ofthe property described herein. The Fee Simple Interest is the unencumbered value of the subject property; basically, market rents and terms are considered with no regard to existing leases and terms. However, the reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. The Leased Fee Interest is an ownership interest held by the landlord, who conveys the rights of use and occupancy to a tenant by lease. The landlord's rights include the right to receive rent and the right of possession at the end of the lease period, As the lease on the subject property will terminate on May 4, 2007, a Leased Fee evaluation was not applicable. Furthermore, a part of our assignment was to determine the Fair Annual Market Rent on a Triple Net Basis for the subject property, As a result, we have not considered a Leased Fee evaluation, herein. SUBJECT'S MARKET AREA (NEIGHBORHOOD) ANAL YSIS The subject site fronts along a commercial thoroughfare within the southeasterly portion of the City of Key West. This general area is commonly known as the "New Town" section of the City of Key West. Unlike the westerly "Old Town" area where the majority of the architecture and building construction styles are historically preserved, this area contains a mixture of older structures (built in the 1960's and 1970's) plus many modern commercial structures. The subject neighborhood can be described as being bordered on the north by the Gulf of Mexico, on the east by Cow Key Channel, on the south by the Atlantic Ocean and the Straits of Florida and on the west by White Street. Most of the structures in the area are CBS/masonry with some evidence of wood frame single family homes. This area is a part of the newer developed section of the island which is about 98 percent developed except for a few isolated parcels which are vacant and/or preserved wetlands. The principal land uses are commercial and residential, with some mixed-use structures. The subject property may be accessed from South Roosevelt Boulevard, (AlA), a four-lane, asphalt paved street with center turning lane. South Roosevelt Boulevard, U. S. Highway AlA, is the main thoroughfare leading around the waterfront along the southerly side of the City of Key West. The neighborhoods surrounding South Roosevelt Boulevard are mostly developed with condominiums, single family residential subdivisions, commercial properties as well as the Key West International Airport. Commercial uses are concentrated along South Roosevelt Boulevard and Flagler A venue with residential homes and pockets of commercial uses along the other secondary thoroughfares. The general commercial uses surrounding the subject property is hotels/motels, retailers, including community shopping centers, and airport support services. The oceanfront condominium projects range in price from $800,000 to in excess of $2,000,000. Appraisal Company of Key West Page 5 '" R fl - f~ :~, !!l I I "il J :1 I i 1 1 Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL The subject property is adjacent to the Key West International Airport as well as several oceanfront residential condominium projects including a proposed new project South-Pointe Condominium, the Hyatt Vacation timeshares, Best Western Key Ambassador, Grand Key Double Tree Resort. The subject's immediate area is the most commercialized area in this portion of the City, with the airport and many motelslhotels, retail uses, restaurants, fast food establishments and airport support service, The main shopping centers and retail district are concentrated along North Roosevelt Boulevard with the Searstown Shopping Center, the Key Plaza Shopping Center and Overseas Market, located within two miles ofthe subject property. All of the Centers are located along the southerly side of North Roosevelt Boulevard. According to interview with property managers, these centers are about 90% to 98% occupied. Large tracts of land sold in the early to mid-1990's along North Roosevelt Boulevard, within two miles of the subject. One of the parcels was improved with a large shopping strip center containing an estimated 171,000 square feet, four major anchor stores including Winn Dixie, J. C. Penney, Eckerd Drugs and TGI Fridays, plus local retail shops, a former Shoney's restaurant, now known as Key West Diner, and a former Boston Market franchise, now a Dunkin Donut, located on out parcels. In 1992, an out parcel was purchased and developed with a 16,000 square foot Walgreens store; it is located across the street from the Overseas Market Center. The two older shopping centers, Key Plaza and Searstown, have upgraded the structures including addition of anchor tenants and cosmetic restorations in order to compete with the new shopping center. The newest developments near the shopping centers include the sale of an older "mom and pop" motel, which was totally renovated and upgraded, including a new large building. The sale of an out parcel to a "Checkers" franchise which is open for business; plus the sale ofa service station property which was leveled, and developed with commercial units plus six transient guest units (an annex to the Fairfield Inn). The recent trend has been to convert from motelslhotels to one or more bedroom residential condominium units. Thus far, these units have been absorbed rapidly by speculators and second home buyers. Though, it seems that within the last year we have reached an equilibrium, as the supply is caught up to the demand. However, there is such a shortage of oceanfront property, we expect the demand for oceanfront condominiums to continue with continued appreciation. There are very few unsightly areas in any of the surrounding commercial or residential neighborhoods near the subject parcel. The subject property is located in a desirable section of Key West which is undergoing continuous positive change in desirability and property values. The surrounding structures are generally well-maintained and the Key West International was recently upgraded and renovated. We anticipate continued improvement in the general quality of the neighborhood, particularly due to the lack of vacant, buildable parcels within the City of Key West, thereby increasing demand for improved property. Appraisal Company of Key West Page 6 ~l U I 11," 11 - '%l ~ ~ I I ~ .~ ~ ~ j j ;"~=~~~~'.~~~'J~~l.4!l:::::A.~ The following average daily two-way traffic data was provided by the State of Florida Department of Transportation: A VERAGE DAILY TRAFFIC COUNTS Avera2e Oailv Traffic Count (Both Direstions) D.O.T. Station Locldlon 1999 2000 2001 2002 2003 2004 200S 5027 Is. Roosevelt Blvd. 300 Ft. S Flagler Ave.1 12,5001 9,6001 11,0001 13,0001 13,500 13,1001 12.700 5028 Is. Roosevelt Blvd. 400 Ft. E. Bertha St. I 8,7001 11,8001 11,0001 10,1001 11,500 11,2001 10.700 MARKETING TIME Based on sales of comparable commercial property in the subject's market area, we have estimated 6 to I8-month marketing time if listed within 5.0 percent of the appraised value. The marketing time estimate is based on interviews of real estate agents and market time information for the comparable property. This marketing time could be negatively affected by competition from similar facilities. However, similar commercial properties are very marketable due to their desirable locations and the built-up status of the area. EXPOSURE TIME Exposure time considers the amount of time necessary to effect a sale of the subject property on the valuation date. In the case at hand, it is our opinion that the exposure time would be equal to the marketing time, based on a listing price within 5.0% of our appraised value. LEGAL DESCRIPTION We have made an appraisal report with respect to the previously referenced subject property, from the attached survey, which are included as an addendum to this report. A metes and bounds legal description follows: Legal Description: A parcel of land on the Island of Key West, Monroe County, Florida, described as follows: Commencing at the point of intersection of the curb line of South Roosevelt Boulevard with a line drawn at right angles to said curb line through the original monument marking the Southwest corner of the former Government Military Reservation known as cast Upper Martello Tower, which said monument lies 2.0 feet Westerly of a later Appraisal Company of Key West Page 7 ~'-." .1 ~" ] ~) r I ~ - r~ ~ J I I j j j I I Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL monument consisting of a one-fourth inch brass pin set in concrete, run S 83/42/00 E along aforesaid curb line for a distance of 30.19 feet to a point; thence at a right angle to said curb line, run N 6"18'00 Efor a distance of50.00feet to the point ofbeginning of a parcel of land hereinafter described: thence continue N 6"18'00" Efor a distance of 200.00 feet to a point; thence at right angles, run N 83"42'00" W for a distance of 300.0feet toa point: thence at right angles run S 6"18'00" Wfara distance of200.0 feet to a point; thence at right angles and parallel to and 50 feet distance from the curb line . of South Roosevelt Boulevard, run S 83 "42 '00" E for a distance of 3 00.0 feet back to the point of beginning. LESS A tract of Land in a Part of the Key West International Airport Property on the Island of Key West, Florida and being more particularly described by metes and bounds as follows: Commencing at the Southeast Corner of Parcel 48 of the Plat of Survey, as recorded in Plat Book 4, Page 69 of the Public Records of Monroe County Florida, bearS 89'52'20" E, along the Northerly right-of way line of South Roosevelt Boulevard, 582.7 feet to a Point of Curve, said Curve having a central angle of 07'15' and a radius of 2,889.93 feet: thence along said Curve in an Easterly direction and deflecting to the Right, 365.68 feet to a Point of Tangency; thence bear S 82'37'20" E, 187.79 feet; thence bear North 07'22'40" E. 49.09 feet to the Point of Beginning; of the tract of land hereinafter described;from said Point of Beginning; continue N 07'22'40" E, 200 feet; thence bear S 82'37'20" E, 206 feet; thence bear S 07'22'40" W; 200 feet; thence bear N 82'37'20" W 206 feet, back to the Point of Beginning. OWNERSHIP According to the 2004 Monroe County Tax Collector's records, the subject property is owned by: Monroe County Florida 500 Whitehead Street Key West, Florida 33040 SALES HISTORY. CURRENT LISTING & SALES CONTRACT The Monroe County Property Record Card does not show any sales history for the subject property, as the property has historically been County-owned and operated as an airport. The subject property is not listed for sale in the local MLS (Multiple Listing Service), nor is it currently under contract for sale and purchase. Appraisal Company of Key West Page 8 "I "-I ~l [] ",,".','.], ,..11. f f:. ~ I ~ ~ '.'",.~., ....;1: I:'; .q , ,,'~;' i I ! ~,,', ,. t I J , Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL ZONING According to Ordinance No. 053-1988 revising the regulatory jurisdiction ofthe Key West International Airport to comply with the Code of Ordinance of the County of Monroe, Florida. The following Monroe County Land Use regulations are applicable: Sec. 9.5-252. Airport District (AD). (a) These districts provide classifications of property for existing or future airports and regulate uses within the boundaries of public and private airports, and uses around, adjacent, and in the approach zones of public and private airports in order to: (1) Establish the control of obstructions and construction of structures affecting navigable airspace in accordance with criteria delineated in volume XI, part 77 in federal aviation regulations, Florida Department of Transportation regulations, and this section; (2) Protect airports against encroachment, to implement appropriate noise abatement strategies, and to regulate development and reduce public exposure of community activities which are not compatible with airport operations; (3) Control uses within the public and private airport property boundaries. (b) In order to carry out the provisions of this section, there are hereby created and established a zone known as Airport District (AD) for public and military airports, and a zone known as Private Airport District (PAD) for private airports. There are hereby created and established overlay zones around and adjacent to public, private and military airports in Monroe County. Within the AD, PAD and overlay zones, certain height limitations are specified to prevent airspace obstruction, and the use limitations apply. An area located in more than one (1) zone described herein is considered to be only in the zone with the more restrictive limitations. (c) Airport District (AD), public and military airports: The following uses are permitted as minor conditional uses in the Airport District, subject to the standards and procedures set forth in article III, division 3: (I ) Wastewater treatment facilities and wastewater treatment collection system( s) serving (a) usee s) located in any land use district provided that: a. The wastewater treatment facility and wastewater treatment collection system(s) is (are) in compliance with all federal, state, and local requirements; and b. The wastewater treatment facility, wastewater treatment collection system( s), and accessory uses shall be screened by structure( s) designed to: 1. Be architecturally consistent with the character of the surrounding community; and 2. Minimize the impact of any outdoor storage, temporary or permanent; and 3. A solid fence may be required upon determination by the planning director; and c. Where a district boundary buffer is not required as set forth in article VII, division 10, a planting bed, eight (8) feet in width, shall be established to buffer the facility, with the following: 1. One (1) native canopy tree for every twenty-five (25) feet of property line; and 2. One (1) understory tree for every ten (10) feet of property line; and 3. The required trees shall be evenly distributed tluoughout the planting bed; and 4. The planting bed shall be installed as set forth in article VII, division 10 and maintained in perpetuity. Appraisal Company oj Key West Page 9 '1 ~ ~~j ....1 ~, f,;j " ~l", ' L I m - !'),",' it i I I 'I J ) ) Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL (2) Within the property boundaries of public airports, airport uses of less than five thousand (5,000) square feet of enclosed area shall require a minor conditional review. Airport uses of five thousand (5,000) square feet or more of enclosed space shall require a major conditional review. Within the overlay zones of public and military airports, those uses permitted shall comply with the height standards and the limitations set forth in the horizontal, conical approach, and transitional zones described in subsection (3) following. (3) Public airport height zones and limitations for the airport district and overlays: a. Primary zone: The area longitudinally centered on each runway with the same length as the runway and is two thousand (2,000) feet wide. No structure that is not a part of the landing and takeoff area is permitted in the primary zone that is of greater height than the nearest point on to the runway. b. Clear zone: The area extending one thousand (1,000) feet off each end of a primary surface and is the same width as the primary surface. No strucnue not a part of the landing and takeoff area is permitted that is a greater height than the end of the runway. c. Inner horizontal zone: The area extending outward from the periphery of the primary zone with an outer perimeter formed by swinging arcs of seventy-five hundred (7,500) feet radius about the center line at the end of each primary zone and connecting adjacent arcs by lines tangent to these arcs. No structure will be permitted in the inner horizontal zone of greater height than one hundred fifty-six (156) feet MSL. d. Conical zone: The area extending outward from the periphery of the inner horizontal zone for a distance of seven thousand (7,000) feet. Height limits in the conical zone commence at one hundred fifty-six (156) feet MSL at the inner boundary where it adjoins the inner horizontal zone and increases in permitted height at a rate of one (I) foot vertically for every twenty (20) feet of horizontal distance measured outward from the inner boundary to a height of five hundred six (506) feet MSL at the outer boundary. e. Outer horizontal zone: The area extending outward from the outer periphery of the conical zone for a distance of thirty thousand (30,000) feet. The height limit within the outer horizontal zone is five hundred six (506) feet MSL. f. Approach zone: The area longitudinally centered on each runway extended center line, with an inner boundary two hundred (200) feet out from the end of the runway and the same width as the primary zone, then extending outward for a distance of fifty thousand (50,000) feet, expanding uniformJy in width to sixteen thousand (16,000) at the outer boundary. Height limits within the approach zones commence at the height of the runway end and increase at the rate of one (1) foot vertically for every fifty (50) feet horizontally for a distance of twenty-five. thousand (25,000) feet, at which point it remains level at five hundred six (506) feet MSL to the outer boundary. g. Transitional zone: The area within an inner boundary formed by the side of the primary zones, the first two hundred (200) feet of the clear zones and the approach zones, then extending outward at right angles to the runway center line and extended center line until the height matches the adjoining inner horizontal zone, conical zone, and outer horizontal zone height limit. The height limit at the inner boundary is the same as the height of the adjoining zone and increases at the rate of one (I) foot vertically for every seven (7) feet horizontally to the outer boundary of the transitional zone, where it again matches the height of the adjoining zone. Appraisal Company of Key West Page 9-a j I ] :'1 'I . ~ ;~ lj ',~ - ~ ~ .,~ '; I ~ 3~ ;~ J i j ~ 1 Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL The subject property is a legal conforming use with respect to use and set-back requirements, as well as the lot coverage ratio. Otherwise, the subject property appears to meet all zoning requirements. UTILITIES The subject parcel is serviced by public water and electric utilities, with the private sector providing cable TV and LP bottled gas. There is a single electric meter and one water meter at the site. The subject is connected to the City of Key West sewer system. REAL ESTATE TAX ASSESSMENT AND BURDEN The subject parcel is a portion of the total 156.36 acre Key West International Facility and is not split- out. The subject improvements are included on the Monroe County Property Card for the airport but have not been split-out as separate parcels. As a result, this analysis is not applicable in the case at hand. DESCRIPTION OF THE SUBJECT PROPERTY Site Analvsis: The appraisers relied upon the legal description and the partial survey, which was included as Exhibit "A" attachment in the lease to the "Teen Center." The subject property contains 18,800 square feet or 0.432 acres; however, according to the Monroe County Property Card the subj ect property is only a very small part of a larger 156.36 acre parcel, commonly known as the Key West International Airport. For purposes of our evaluation within this report, we have utilized the metes and bounds legal description and measurement taken for the survey which are include in the addenda section ofthis report. The subj ect property is a corner, rectangular-shaped parcel with 94 linear feet of frontage along the south side of South Roosevelt Boulevard, Highway A 1 A, extending northerly approximately 200 feet in depth or a total of 18,800 square feet. Any deviations from these sizes may result in a change in value. If and when an updated survey is made available and any discrepancies are noted due to site size, easements and/or encroachments subsequent to this valuation, we reserve the right to change the final indicated values herein. No responsibility is taken for the accuracy or questions concerning boundaries, encumbrances, or encroachments. Access: The subject property may be accessed by South Roosevelt Boulevard, (AlA). U.S. Highway AlA is an extension ofD.S. Highway No. 1, Overseas Highway, the main highway that provides access into and out of the Florida Keys. South Roosevelt Boulevard, (AlA), is a four lane two-way thoroughfare that extends from the entrance to Key West to the downtown beaches. The subject property is within one mile ofD. S. Highway No.1. Alone the easterly side of the subject property there is an asphalt paved access road with a perpetual easement that is utilized by the subj ect property and the adjacent Hyatt Vacation Rental Resort. This access road provides access to the subject property rear parking lot. Appraisal Company of Key West Page 10 ~ 1 =1 ~~~'-. ~.~, "',:,J ,.~J 1J,C ~ J~J' ._J. " t;J.'; - ',1',.1" ~ j i I ~ ~ J 1 I I Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL to change the final indicated value herein if and when any discrepancies are found in regard to easements and/or encroachments. According Mr. Jim Anderson of the Tallahassee, Florida Division of the United States Census Bureau, Momoe County is not divided into Census Tracts; but rather "Block Numbering Areas." The subject property is located within Block Number 9720. The subject parcel is located in Special Flood Hazard Area, Zone VE, Elevations 11 according to Flood Insurance Rate Maps of Momoe County, Florida, Map Number 12087C 1517K, dated February 18, 2005. Momoe County participates in a National Flood Insurance Program and is covered by a regular program. An Elevation Certificate for the subject structure was not made available for the subject building. However, the subject structure was built prior to the inception of FEMA regulations. The subject improvements do not appear to meet current flood regulations. lfthe subject improvements do not meet flood regulations and if the improvements are destroyed beyond 49.9% of their market value (improve- ments only), then the structures would be required to meet flood elevation regulations in effect at the time of reconstruction. Insurance riders are available, with flood proofing permissible for commercial uses. Imorovement Analvsis: The appraisers performed a site visit and personal walk through examination ofthe subject improvements with some measurements taken on-site, as well as the measurements taken from the survey provided. The appraisers relied upon the legal description and the partial survey, which was included as Exhibit "A" attachment in the lease to the "Teen Center." The subject site contains 18,800 square feet or 0.432 acres which is a part of a larger 156.36 acre parcel, commonly known as the Key West International Airport. The appraisers utilized measurements taken from the survey, as shown on the building sketch and calculations included in the addendum section of this report, for our analysis. The subject property, commonly known as the "Teen Center," 3491 South Roosevelt Boulevard, Key West, Florida, is improved With a one-story CBS/masonry building, which consists of 4,569 square feet of gross building area, which has historically been used as a community center. There is also an attached one-store wood frame storage building which contains 307 square feet. Hence, there is a total of 4,876 square feet of gross building area. According to the Momoe County Tax assessor's records, the subject structure was built in 1968. It should be noted that the Teen Center was being operated at Appraisal Company of Key West Page 11 "I I I 71 i!!'......1 ,""; ;~J ~.] '-:-' I' ~. I ~." ~.'.'" ,0' - ] :] j I ~ 1 1 1 ] ~ ~ummary A Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL " -. . ., . ,. .. ." :J.~.i1iV&"". the time of walk through inspection; however, our evaluation does not take any personal property into consideration. The following description of the improvements was based upon a physical inspection of the interior and exterior of the building. 3491 South Roosevelt Boulevard. Kev West. Florida Element Description Basic Structure: One-Story CBS/masonry & One-Story Wood Frame Storage Building Gross Building Area: 4,876 Square Feet Use: Communi tv Center - Public Use Year Built: Built in 1968 Foundation & Floor Structure: Concrete Footer Foundation with Slab on Grade Exterior Walls: Painted Stucco Masonry Finish, T-lll Wood Siding on Storage Building Exterior Doors: Wood Frame Glass Doors with Transoms Windows: Aluminum Awning and Fixed Glass Transoms Roof Structure & Cover: Flat Roof Prestressed Concrete Structure and Built-up Roof Covering. Interior Floor Finish: Terrazzo Floors Throughout Interior Walls: Painted Concrete Block and Drywall Interior Ceilings: Open Prestressed Concrete Beams and Painted Drywall Electric Service: Appeared Adequate 200 Amp, Service Plumbine:: 2-Restrooms, with a total of 8 Fixtures Air Conditioning: Central Air System, Rooftop Package Units Condition of Roofs: The subject roof structure had several leaks and ceiling damage. Hence, the building is in need of repair or replacement of the roof covering. Neither a roof or termite inspection reports were made available. The appraisers do not assume the responsibility for the condition ofthe roofs, termite damage, nor the physical condition of the structures without the benefit of an engineering report. Fixtures & Equipment: The "As Is" Market Value considers no personal property. Construction Quality: Average Improvement Condition: Fair to Average The improvement has considerable deferred maintenance including a leaking roof, all of the exterior doors and windows need repair or replacement, efflorescence, and minor spaulding. Appraisal Company of Key West Page /2 I ""1 '.... r] ~ t..,.. lrl' ~, L'. ,,1' t -'] '! ~.' I ~' ;r,","- f,C ~ ~ Ytj ~ .~. I I .~ j '~ J j j Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL Building Age: Actual Age: 39 Years Effective Age: 30 - 35 Years Economic Life: 45 years Remaining Economic Life: 10 years Parking: The subject property has adequate on-site parking plus the adjacent airport parking lot. Environmental Issues: Environmental screening or audits of the subject property were not made available to the appraisers. Upon inspection of the property, no visible signs of environmentally hazardous materials were noted. The subject property is not listed on the Super-Fund'List published by the Environ- mental Protection Agency; therefore, the appraisers do not know of any environmental hazards on the property. The appraisers are not experts in the field of environmental hazards. An expert in the field is recom- mended if desired, as no environmental tests were made by the apprais- ers. ADA Compliance: The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The restaurant structure was built in 1980's and may not meet ADA standards. However, the appraisers have not made a specific surveyor analysis of this property to deteffiline whether or not it is in conformity with the various detailed requirements of the ADA. The appraisers are not contractors and are not qualified to make a determina- tion if the building adheres to the requirements. The property, together with a detailed analysis of the requirements of the ADA, could reveal that the property mayor may not be in compliance with one or more of the re- quirements of the Act. Ifso, this fact could have an effect upon the value of the property. Lot Coverage Ratios: The subject's lot coverage ratio is calculated by dividing the first floor building footprint, including the utility building and covered walkways, by the land size. Therefore, the subject property has a lot coverage ratio as follows: 27.3% (5,138 SF /18,800 SF) The subject's ratio is not applicable in the A zoning district. Appraisal Company of Key West Page j 3 ,'.""..c,'.....] ,~ ., ~ ~j ~I t"l I I ~ [~; tf ~" I' "" .~:~ I I i j J I j Summary Appraisal Report Floor Area Ratio: Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL The subject's floor area ratio (FAR) is calculated by dividing the total gross building area by the land size. Therefore, the subject property has a lot coverage ratio as follows: 0.259:1.00 (4,876 SF /18,800 SF) The subject property is well within the 0.30: 1.0 maximum floor area ratio currently permitted in the A zoning Appraisal Company of Key West Page 14 ~-] l.', r f. ~'" ,f..,.. ,~ ~ [] li'-.',;.l '~;:I I I] ~1 ~ q ~ ~' ~',.. " I I 1 ] 1 ] I 1 Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL HIGHEST AND BEST USE In order to estimate the Highest and Best Use of the subject property, the appraisers have considered those uses that are physically possible, legally permissible, maximally productive, and financially feasible. "As If Vacant": According to the survey and legal description provided, the subject site contains approximately 18,800 square feet, fronting on South Roosevelt Boulevard. The site is a corner rectangular-shaped parcel. The current zoning regulations have no minimum lot size requirement. The subject site appears to meet all the zoning criteria, Based on the current zoning, coupled with the limited number of sites in the subject's area, our opinion is that if the site were vacant and available, the Highest and Best Use would be for support services or airport ancillary uses with maximum utilization of the parcel. "As Imoroved": The existing improvements make a substantial contribution to the total property in excess of the value of the site. ,Nevertheless, the subject property is considered an Interim Use as a public use facility. The site has all the elements for potential redevelopment. Hence, the existing community service use, Teen Center, improvements represent an Interim Highest and Best Use of the site, as improved, as of the date of this report. The subject is currently a legal conforming use with respect to the setbacks and floor area ratio. Appraisal Company of Key West Page 15 ;,',...;.."j' '. ::,,] ~\,. ~" ~'1 ~.l ~~ ~;~ ~J,.; ~,' IS I I - m.;; m I I I ~ j ) ] f J ~ Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL SCOPE OF WORK APPRAISAL DEVELOPMENT AND REPORTING PROCESS There are three typical approaches to value to consider in each appraisal assignment. The three traditional approaches to value are the Cost Approach, the Sales Comparison Approach and the Income (Direct Capitalization and/or Discounted Cash Flow) Approach. The three approaches to value are not always applicable to the assignment; however, the three approaches to value are always considered. The appraisers performed a summary appraisal report, as defined by the Uniform Standards of Professional Practice. Data relevant to each of the approaches is developed and analyzed to produce a value from each of the approaches. Each of the approaches utilizes data that is gathered from the market place. Items of both similarity and dissimilarity in comparable properties are analyzed and adjustments are made for the differences. All appraisals begin by identifying the subject property (property to be appraised) and the appraisal problem. Data relevant to the subject property is obtained from various sources including but not limited to: the Monroe County Tax Assessor's Office, surveys, building plans and specifications and the property owner. Ifpossible, more than one source is utilized to confirm information. Improvements, if applicable, are inspected and measured by the appraisers. If and when building plans or sketches are made available, the measurements are verified for accuracy. Land size is based on recorded plat maps, Monroe County public records, legal descriptions or surveys (when available). The local geographical market was researched and analyzed. The appraisers describe the building improvements in detail, if applicable; these descriptions are based on a walk through and/or plans and specifications, if available. The appraisers are not contractors nor structural engineers; therefore, structure soundness or damage cannot be warranted. The appraiser will note any apparent or potential problems such as deferred maintenance, water damage or spalding. Exterior site visits of the comparable improved sales are always made; interior walk-through visits are made when possible, if applicable. Sales prices for the comparable sales are obtained from the public records. Prices are customarily confirmed with a party to the transaction, i.e., buyer, seller, closing agent/attorney, or real estate agent. The public records are researched for mortgage terms and information. The comparable sales are researched utilizing First America Real Estate Solution and Realist.com, (FARES), Rapattoni and FLEX, both computerized MLS (Multiple Listing System). All sources use data from the Monroe County Property Appraiser's Office, as well as, from the public records. The data is verified and compiled into sale sheets located within the Addenda of this report. Additional data sources include: newspaper clippings and the National Multiple Listing Service. Real estate agents in Appraisal Company of Key West Page /6 :] ""1 :.' 1", ~., ~J ~ ~'" ~,.,': lI'., -,.,".',...1 f~~ l~'- I 9 - ~ :,~,-,: " ~1 '~ I I t J j 1 J J Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL the market area are interviewed for the most current information on sales and listings. All of the information is analyzed in preparing the report and is utilized in supporting the indicated value. In preparing this appraisal, the appraisers conducted a site visit of the subject property. Information on comparable rentals and comparable commercially zoned parcels purchased for redevelopment were gathered, confirmed, and analyzed. Interim use properties are typically purchased for redevelopment or expansion by adjacent owners. The subject property, as of right, has limited use predominately for airport support services. Land prices have risen rapidly due to restrictions of the Monroe County building codes, permitting process and scarcity of undeveloped land sites thereby distorting the values of the any vacant site. In this case, the Sales Comparison Approach was considered most reliable in valuing the subject property's for redevelopment, as well as, to estimate the fair annual market rent. The Cost Approach was not considered applicable, because of the age of the improvements plus the difficulty in estimating reliable land values due to building and land restrictions and the age of the subject improvements. We have deemed the Cost Approach inapplicable to the valuation herein. However, the appraisers have considered the Replacement Cost New per the clients request. The Income Approach was considered applicable as the property is currently leased and our clients are proposing to release the property. Finally, the applicable indicated values developed by the approaches, are reconciled to produce the final estimate of value. A brief description of each of the approaches and valuations follows: This is a summary appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a summary appraisal report. This summary appraisal report is a brief recapitulation of the appraiser's analyses and conclusions. Supporting documentation is retained in the appraiser's file. Appraisal Company of Key West Page 17 ',.'.'",.1 I' ~l ;,L ~] .t, ~ ~J tit...,'...'] ~ ~, ,~..'; ;,,'",: ...i. ~",,1.', .a ~ - g'.' ,,'. ! t:' "] i I J i '~ i i j , ~u.mmary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL SUMMARY OF ANALYSIS AND VALUATION COST APPROACH The Cost Approach is based on the principle of substitution, the belief that a purchaser would not pay more than the cost of acquiring a similar site plus the cost of construction of a replica or similar structure. The Cost Approach is based on the understanding that market participants relate value to cost. In the Cost Approach, the value ofa property is derived by adding the estimated value of the land to the current cost of constructing a reproduction or replacement for the improvements and then subtracting the amount of depreciation (i.e., deterioration and obsolescence) in the structures from all causes. Incentive for coordination by the entrepreneur is included in the value indication. This approach is particularly useful in valuing new or nearly new improvements and properties that are not frequently exchanged in the market. Cost Approach techniques can also be employed to deri ve information needed in the Sales Comparison and Income Approaches to value. The current costs to construct the improvements can be obtained from cost estimators, cost estimating publications, builders and contractors. Depreciation is measured through market research and the application of specific valuation procedures. Land value is estimated separately in the cost approach. The land value is determined by analyzing recent sales of vacant tracts within the subject's market area. Cost Analvsis: Typically, the Cost Approach can be employed when valuing public use properties. However, due to all of the governmental restrictions make land value estimates become less reliable. Also the subject improvement is old and in fair to average condition makes the estimate of depreciation less reliable. Therefore, we have deemed the Cost Approach not to be applicable. However, the appraisers have considered the Replacement Cost New of the existing structures at the clients request. Estimate of Improvement Costs and Summary: The replacement cost ofthe improvements has been estimated using the Marshall Valuation Service and our knowledge of actual cost to construct in the area. These costs are continuously updated and adjusted for local differences. The Marshall Valuation Service cost estimates include labor materials and sales tax, average architect and engineer's fees, job supervision and insurance, and contractor's overhead and profit. The cost estimates do not include: costs of buying/assembling the land (i.e., escrow fees, legal fees, demolition, storm drains or rough grading), costs of land planning or preliminary concept and layout for a large development, discounts or bonuses for financing, developer's overhead and profit, and interest or taxes on land. On the following pages, the replacement cost new for the subject building and site improvements has been considered at the clients request. Appraisal Company of Key West Page J 8 --I Wl,. ~J ~,.~'... g~J ~,.', Ii:! ~",.:" ~e. '-~, I I - ro ~ ~,,',' .~ ~".' i I ] ~ j ] ~ ~r;=~~-~~~~~~=~~ Basic Cost Clubhouse Building 3491 S. Roosevelt Boulevard, Key West, Florida Clubhouse Buildinl! Data Inout Class C - Average Quality Section II, Page 24 Dated 11/2004 Basic Structure Cost (per S,F. of Building Area): Adjustment for AirConditioning: Adjusted Basic Structure Cost (per S.F. of Building Area): Refmement Multiplier.;: Floor Area/Perimeter Multipliers (page30, Dated 11/2004) StOTY Heigth Mu]tiplier 10' (Page 30. Dated 11/2004) Time and Local Multioliers: Time (Section 99/Page 3/ Dated 7/(6) Local (Section 99/Page 7/ Dated 7/(6) Resort Mu]tiplier (Section 99/Page 1/ Dated 7/(6) Adjusted Cost per Square Foot: 1.09 1.11 l2.... $134.01 $134.00 Basic Cost Storage Building 3491 South Roosevelt Boulevanl, Key West, FL Storal!:e Warehouse Buildinl!: Data Inout Class C . Good Quality Section ]4, Page 32 Dated 2/2006 Basic Structure Cost (per S,F, of Building Area): $15,08 Refinement Multipliers: Floor Area/Perimeter Multiplier.; (page37, Dated 2/2006): 1.2520 StOTY Heigth Multiolier 10' (Page 38. Dated 2/2006) 1??oo $]8.88 Time and Local M ultioliers: Time (Section 99/Page 3/ Dated 7/(6) 1.04 Local (Section 99/Page 7/ Dated 7/(6) 1.08 Resort Multiplier (Section 99/Page 1/ Dated 7/06) I.~ Adjusted Cost per Square Foot: $31.81 IStimated Cost per Square Foot (Rounded): I $32.00 *Note: The resort and labor shortage multiplier was considered appropriate, based on comparison with contractor estimates for new structures and the Marshall Valuation Service. Appraisal Company of Key West Page J 9 -I ~I :-'j t ~ 1 .1 R ~1 ~: , if.;" - ~ ',~,--...' 'f ,; r;:'. ~ ~ I ~ ~, l ~ j ] ~ =:3~raiSE~~~,~__~_a......._,.,,;~;::~:JJ1rl~:::~=I:::';!!;~:"'!f2.~ Replacement Cost New 3491 South Roosevelt Boulevard, Key West, Florida 33040 Detailed Cost Fstimate Cost New for Restaurant Cost New for Storage Total Cost New for Bldg. Improvements: Quantityl Size Unit Cost 4,569 307 $134 $32 Plus: Site ImDro\ements & Extras: Chain Link Fencing/ L.F. Concrete Patio Asphalt Paving & Lighting Handicap Ramp Landscaping, Irrigation & Signs Total Site Improvements: 384 3,450 1,833 262 1 $23.50 $12.50 $2.25 $35.00 $9,200 Plus: Furniture, Fixtures & Equipment: Counter/Bar Stage Total Furniture, Fixtures & Equipment: 28 863 $250 $21 Estimated Value before Indirect Costs: Entrepreneurial Profit and Plus Indirect Costs.: Replacement Cost New (Rounded): Replacement Cost New $612,246 $9,824 $622,070 $9,024 $43,125 $4,124 $9,170 $9,200 $74,643 $721,836 · Indirect Costs: The Indirect Costs in the Cost Approach are based on expenditures for items other than labor and materials, such as professional fees, financing costs, and taxes and insurance during construction. Because of the construction expenses incurred in Monroe County, including impact fees for transient and non-transient units, plus permit fees, these Indirect Costs are a necessary part of our Cost Approach analysis. It is based on estimated impact fees, plus a percentage of the Replacement Cost New which we have found to be consistent. This cost is also depreciated with the building and site improvements. Appraisal Company of Key West Page 20 -...'1 .' :,;'] 1'Ii C!.",..l ,~ . it, ~,'J.' i1f ,:}" r....,..',',j [; ~;; \J I ! ~ .,,'.',..'~,,'.. gJ .0.'..1... ~ i I I ~ J ~ i Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL THE INCOME APPROACH The Income Approach to value presumes that no prudent buyer will pay more for the subject property than the capitalized rental value attainable through ownership of the property. The buyer will only be willing to pay the present value of what he considers those future benefits to be. The traditional Direct Capitalization Method was considered appropriate in valuing the subject property due to its historical stabilized operation and potential as an income production. The Direct Capitalization Method takes into consideration the estimated net income, which is capitalized in accordance with prevailing rates of return for similar property or investments of comparable risk, to indicate the price that a prudent and knowledgeable investor would be justified in paying for ownership. This approach has greatest application when the property being appraised is a type that purchasers buy for investment purposes. In the case at hand, the subject property is a public service or commercial use property with the potential of being an income-producing property. Thus, the Income Approach represents the value an owner may consider paying in order to gain the benefits and profits of the business, as well as that of the real estate. However, the subject property is truly an investment type property that is suitable for redevelopment; therefore, the Income Approach was only lightly weighted in the final indicated Market Value. The Sales Comparison Approach was considered a more reliable indicator of value; hence, it was weighted heaviest. The Fee Simple valuation considers the unencumbered value of the property. Market rents and terms are considered with no regard to existing lease terms. The Leased Fee Interest is an ownership interest held by the landlord, who conveys the rights of use and occupancy to a tenant by lease. The landlord's rights include the right to receive rent and the right of repossession at the end ofthe term. A Leased Fee valuation was not applicable as the lease on the subject property will terminate on May 4, 2007. I. Analysis of Contract Rents: This subject property is at the end of a ten year lease which will terminate May 2007. The subj ect property is improved with a CBS/masonry building and wood frame storage unit containing a total of 4,876 square feet of gross building area. A personal walk through visit of the subject property was performed with measurement taken on site by the appraisers, as well as utilizing the provided survey. Detailed descriptions of the improvements may be found within the attached report. Hence, we will estimate the potential market rent for the subject property based on ground leases which is most common of these type properties. Appraisal Company of Key West Page 2 J 'I ~l ] ~"j ~..:,.,:; ~ F;.j ~r' fe;.. ~ I !'.i,. ,.,,~ , - I I I I ~ H ~ ?1 ~ ~ ~ 1 Summary :aisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West. FL __ . ~~~.'t1>'I1l~'1iil-~~---"~~~.._r~'--',<I!iW!!.l"Ul!f'e~II--~.1f€ 2. Analysis of Potential Rents: We have analyzed current rental rates and terms for commercial properties within the subject's immediate market area in order to estimate the potential rental income for the subject property. The subject's potential commercial income is based on the following rent comparables. MARKET RENT COM PARABLES Commercial Ground Lease Rent Comparables Land Building Land Building Area Area Annual Rent Rent Location Type Use Sq.Ft. Sa.Ft. Rent ScI.Ft. Sq.Ft. 5031 5th Ave. Stock Island Marina/Storage 9.940 N/A $26.446 $2.66 N/A Cudjoe Garden Marina MarinaJRetaiV Ao!. 32,950 2,812 $&2,680 $2.51 $29,40 HwTicane Hole (Master Lease) MarinalRestaurant 89,734 11,659 $158,746 $1.77 $13. 62 2516 N, Roosevett Blvd. Rental Car /Service 25,000 360 $51,636 $2,07 $143.43 2514 N, Rooseveh Blvd. Services / Bank 25,000 3.756 $45,1'AlO $1.82 $l2,14 3032 N, Rooseveh Blvd. Service/Convenrence 24,900 2,520 $156,000 $6.27 $61.90 3&40 N. Rooseveh Blvd. Rental Car /Service 27,127 2.766 $95,892 $3.53 $34,67 3439 N, Rooseveh Blvd, License OffIce 15,100 2.115 $18,085 $1.20 $8,55 Dollar Rent A Car, Key West Airport Rental Car lService 22,949 ].075 $57,921 $2.52 $53,88 Avis Rent-a-Car,Key West Airport Rental Car /Service 28,320 1,119 $69,852 $2.47 $62,42 DCF, 2700 Flagler Ave Modular OfflceslGov't 60,000 5,040 $146,400 $2,44 $29,05 Mean $1.66 544.91 Median 52.47 532.04 Minimum 51.20 58.55 Muimum 56.27 5143.43 A review of recent comparable rentals of commercial properties indicated a range from $1.20 to $6.27 per square foot of site area with the mean and median at $2.66 and $2.47 per square foot, respectively. The comparables utilized were all based on triple net ground leases. Most of the commercial properties within the subject's market area are leased on a triple net basis. In our valuation model, we have projected Triple Net terms wherein the tenant is responsible for real estate taxes, insurance, utilities, and interior maintenance and build-out, while the landlord is responsible for property management and reserves for replacement. We have projected the commercial ground lease rent at the upper range, due to the improvement size, airport location, open water view, as well as its Highway AlA location. Thus, we have estimated the potential rent at $3.00 per square foot annually of site area which is considered to be reasonable. The most similar comparable is currently leased by Hertz Rental Car agency because ofthe extensive yard area and building size. Hence, we have estimated market rents as indicated below. 3. Potential Rental Income: Potential income for the subject property has been projected from the previously detailed rent comparables. Our projected rental income for the subject property is as follows: Appraisal Company of Key West Page 22 J '~l ""'1 'I, r}~.>., 'r"f ,,,- I!J'] I.i;'...,'. ,~, I.if li"J ~'1 ~~;!.... ~~,. t;;JI;!1 I I ~ fa ~ I',". 1:. 0>: I I '~.. ! J .~ ] ] ~ Sum~isal R~ Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL ...-- -BE .,.. "~''<l ~""~lTT 1''''- "11,. "'_Il "'-..-" rlJ_'-'-il!"'--'-~"-':iit Potential Fair Market Rent for Subject Property Lea.able Annual Land Building Monthly Annual RentlSF Location Type of U. Area SF G.B.A./SF Rent Rent Land 3491 S. ROO5ele1t 8M Public ~e / Sentce 18,800 4,876 54,700 556,400 53.00 Annual RentlSF Lea. G,B.A. Term 5 ll.57 Triple Net 4. Vacancy and Collection Allowance: Vacancy & Collection loss includes an allowance for vacancy due to tenant turnover or loss of rents from a tenant who vacates the building or is late with payments. Typically, the market is experiencing a 3% to 8% vacancy and collection losses on commercial units on an annual basis. Due to the subject's location and demand for this type property, we have projected a vacancy and collection loss of 3% of effective gross income. The Effective Gross Rental Income from the rental of the subject property is made up of the Potential Annual Rental Income less the vacancy and collection losses. This income is then adjusted for typical operating expenses. 5. Income and Expense Summary: On the following page, an income and expense statement is shown for the subject property based on the projected income and expenses. PROJECTED OPERATING EXPENSES Expense: Subject History Market Projected Expense Per Unit of Range Measure Real Estate Taxes: 2006 - None $1.24 to $3.46 $0.00 - Government Property Per SF of GBA Based on Actual Insurance: N/A $1.25 to $2.50 $10,971/$2.250fGBN Per SF of GBA Based on Market Maintenance & Repairs: N/A $0.50 to $1.50 $4,876/$1.000fGBN Per SF of GBA Based on Market Property Management: N/A 4.0 to 15.0% of 4% of Eff. Gross Income Eff. Gross Income Based on Single Tenant Lease Utilities: N/A electricity, water, This expense is typically paid by the sewer and solid tenants in the market area. Therefore, waste charges the landlord is not responsible for this expense. Reserves: N/A 1% to 2% ofTOI 1.1 % of Total Operating Income Based on Reserve Schedule SF = Square Foot of Gross Building Area (GBA) Appraisal Company of Key West Page 23 :\ '..'.) :s "~ ',,'OJ ~.. 71['1 ~f. ,-;;~. ~'l ':" .,1I!',.'..'.,'J ~ f 'it, I I - I "..".~ .t" il, I I ~ j J j j ! ~~~.zJEE.r~:'~'~~\i~"'-""~;~~~~~~!:~~~'~~~l;~t Reserve Schedule: Reserves For Replacement 3491 S. Roosevelt Boulevanl, Key West, Florida Economic Fs timated Sinking Fund Payment! Item Description Ufe Cost Factor Period Roof Cover 25 $]2,000 0.0293 $352 Central A/C System ]5 $13,000 0.0558 $725 Counter/Bar 20 $7,000 0.039] $274 Stage 20 $18,123 0.0391 $709 Annual Reserw Amount (Rounded): I $2,060 Interest Rate 2.50"10 Estimated Potential Operatin~ Income: Projected Stabilized Operating Income Statement 3491 S. Roosevelt Boulevard, Key West, Florida Potential Gross Commercial Rental Income: $56,400 Less 3% Vacancy & Collection Allowance: ($1,692) F1fecti~ Gross Commercial Rental Income: $54,708 Total F1fecti~ Gross Income: $54,708 Plus Reimbursable Income: Real Es tate $0 Insurance $10,971 Repairs & Maintenance ~ Total Reimbursable IncOlre $15,847 Less 3% Vacancv & Collection Allowance: ($475) Total Reimbursable Income: $15,372 Total Operating Income: I $70,080 I Less Operatinf: Exoenses: % ofEGI $/SF ofGBA Real Es tate $0 0.00% $0.00 Insurance $10,971 20.05% $2.25 Repairs & Maintenance $4,876 8.91% $1.00 Property Managerrent $2,188 4.00010 $0.45 Reserves For Reolacerrent $2.060 3.77% $0.42 Total ~nses: $20,095 36.73% $4.12 Net Operatinl! Income: I $49,985 I Appraisal Company of Key West Page 24 ~I 'I ,I ~l f'1 ~j ~,r lL I ~' ,,~1 ,'" ~ ','~;'.'.',." ":,. ~ "'.",] '0\ If r- '~ I' I m.'f.; rj ~ ;.~j ; 1 ; .j ,1 ~=~.i~~~tM!Wi~~~~~;l!2:!.~~~cf..KeYj,~~ 6. CaDi talization: Capitalization can be defined as a method of converting an income stream into a capital sum by dividing the net income of the future income stream by an overall rate (O.A.R.) or capitalization rate. The result should be the indicated value of the total property or the income-producing package. The (O.A.R.) by the Mortgage Equity Method was estimated at 7.7%. Based on the sale comparables, we have estimated a 7.0% capitaliza- tion rate for the subject property via the Comparable Sales Method (Market Approach). An overall rate based on the Debt Coverage Method was estimated at 7.4%. Correlation: The three methods utilized in estimating an OAR for the subject property are indicated in the following table: I Develooment of Caoitalization Rate Lean Ratio 70.0% Lean Term (Years) 25 Lean Rate 7.00% Equity Yield Rate 6.0% Band ofInvestment Method Cap. Capital Source Portion Rate Rate Mortgage Lean 70.00% 8.48% 5.94% Equity Funds 30.00% 6.00"10 1.80% Overall Rate 7.74% O~rall Rate Via Band orIn~stment Method (Rounded): 7.70% Debt Coverage Analysis Debt Coverage Ratie 1.25 X Lean to Value Ratio 70.0% X MortRage Constant 0.0848 Overall Rate 7.42% O~rall Rate Via Debt Co~rage Analysis (Rounded): I 7.42";' Market Derived Capitalization Rates: Lecal Market Range: Mean Median Mininum M axlTT1.lTI1 O~rall Rate Via Comparable Sales Method (Rounded): 7.00% Reconciled Overall Rate: 7.50% An OAR of 7.5% has been estimated for the subject property by weighting the Comparable Sales method the heaviest, as it is most reflective of the local market of properties being purchased for redevelopment, rather than for income potential. Appraisal Company of Key West Page 25 'I ',:] rl rm, k;,,~ ] "] .,~ ~ ~ j ;1 ~ I ~. I j j I I I ==r=~~", ,g' Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL ~ ','. ~~~~ 7. Value of the Fee Simple Interest of the Real Property: Subject GBA: 4,876 Subject Site Size (SF): 18,800 Net Operating Income: $49,985 Value Per Value Per NOI Divided by Cap Rate: 7.50% SF ofGBA SF of Land Indicated Stabilized Value (Rounded) $666,000 $136.59 $35.43 VALUE OF FEE SIMPLE INTEREST OF SUBJECT PROPERTY AS INDICA TED BY THE INCOME ApPROACH (Rounded): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 666.000 8. Less Adiustment for Cost to Cure Deferred Maintenance: As described in the improvement section of this report, the subject improvements are a fair to average conditions with some needed deferred maintenance. In our evaluation of the Fair Annual Market Rent the appraisers have assumed that the landlord would either repair the deferred maintenance or allow the prospective tenant a rent adjustment for the cost to cure the deferred maintenance. Hence, the cost of the deferred maintenance must be deducted from the value in order to estimate the "As Is" Value of the subject. We have estimated this cost to repair or replace the roof cover, windows, doors, efflores- cence & spaulding and one month loss of rent to be $41,000 which is deducted from the stabilized value at in order to estimate the "As Is" Value of the subject. Value Indicated by the Income Approach: . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 666,000 Less Adiustment for Cost of Repairs: .....,........................ ($41,000) "As Is" Value Indicated by the Income Approach: .................... $ 625,000 "AS Is" VALUE OF THE FEE SIMPLE INTEREST OF THE SUBJECT PROPERTY BY THE INCOME ApPROACH (Rounded): ................................. $ 625.000 9. Conclusion In summary, this technique is viewed as a long-term investment valuation that an investor would anticipate, as a return on and return of his investment. The income and expense estimate" as well as the overall rates are considered reliable as abstracted from the market; however, the model does assume continued stabilized economic cycles, which are generally unpredictable. The model was built utilizing a conservative model and considered historical trends. In the case at hand, the subject property is a public service property with potential commercial usage by an owner-user property. Hence, the Income Approach was considered but only weighted lightly, as it is an owner-user property with potential for redevelopment. The Sales Comparison Approach was considered more reliable. Appraisal Company of Key West Page 26 1 I ~.':l !'.:.~ r,..] ~I ~'j ~J I I,.~,.. {\, ~- - ~,; "". i TI'-" :' " j I ~1 ~~~ d ] ] i1 .'1 ;;J ;1 Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard. Key West, FL THE SALES COMPARISON APPROACH The Sales Comparison Approach is an appraisal technique in which the market value estimate is based on the prices paid in actual market transactions and current listings. The actual transaction will fix the lower limits of value in a static or advancing market and higher limit in a declining market. It is a process of correlation and analysis of similar properties that recently sold in the subject's market area., This approach is based upon the principal of substitution; that is, when a property is placed in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no costly delays in making the substitution. The Sales Comparison Approach bases its value indication on sales of other similar properties in the area. These sales are analyzed and compared to the subject property. The Sales Comparison Approach bases its value indication on recent sales that are pertinent to the value of the subject property. In the case at hand, the Sales Comparison Approach was considered most reliable in valuing the subject property's forredevelopment, as well as, to estimate the fair annual market rent. Market Data: A thorough search was conducted for recent sales of commercial and mixed-use properties which were purchased for redevelopment/conversion or which underwent significant renovations subsequent to purchase. A survey of the market area resulted in ten sales, which were considered good indicators of value for the subject. A resume of recent comparable sales follows: Appraisal Company of Key West Page 27 ~ ...: ." ~ ~ ~. ~ ~ ~ o ~ .:::: ~ ~ ~ o c:t:: ~ -. 01 ~ .... " ~ :;::: a ~ ~ ~ fi: ~ ~ CI:l ~ ... -<: ~ ... z ~ ~ i:l., o ... 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E R '" " "" E -~ ] ~ ... " ~~ " ~ .9 ~ ~ 0 u u [-5 g.~ '- - 0-;; &,1i -Vi ~ ~::c ~~ !I ." ~ 9 '" "" ~~ :.e ~ 8 .~ t;~ 1'=:13 E.s -,- .g ~ ~-<= ~ c: '" 0 :6 ; :: u; ..c ... (:! " '" > 1;l 0 ~~ v 0 ~Cj '" '" :1:-5 " ~~ !I,~ !I E <;:: 8 '" ... ~t.S -5 ~ c c :s ~ 'ii 8- 03 " ~ ~ "2 _8 ~Ci "g ~ 0. ~ go r!'$ 0.'" g.f""i " '" ..c " f- 0 ill ~~ ao "l ~ d: I I I f t ~ , I r~ ... ~ !:f ~ ~ 'c> ~ ~ ~ c3 ~ .'" ~ ?} ">: ~."','.'," 'i ~ l] I ',JiJ..'",." ,.~ -~ I" I.;~ I 1<, "] f. .,..1 ,i'f,o :~;' .,i, ril \~I i1~. J ~.'.','..',.'] ~' I I ~ '."'.~,'..',., ~ tt.,".i!,'... ~ ia., I I ,) ] J j 1 Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL Discussion of Imoroved Redevelooment Sales: Each ofthe comparable sales was analyzed in order to make comparisons to the subject property. Each ofthe sales is discussed below. Sale No. 1-1223 Wbite Street. Key West: This three parcel site was sold in April, 2006 as a restaurant which was subsequently razed for future development. The property, presently vacant, consists of 11,880 square feet; it is zoned historical commercial and has access to both White Street and United Streets. This site transferred as a Quit Claim a Special Warranty Deed is located approximately three miles and one-half miles northwesterly from the subject property. This was an arm's length transaction. Sale No.2 - 3600 N. Roosevelt Boulevard. Kev West: This is a recent comparable sale that sold in February 2006, for redevelopment. This comparable was an office building with a second story residential unit. The site consists of a rectangular-shaped parcel with approximately 69.21 feet fronting along the southerly side of North Roosevelt Boulevard, U.S. Highway No.1, and extending 224.75 feet in depth with a total site area of 15,598. The site is improved with a one-story CBS/masonry structure with a wood frame second story at the rear. The building contained an estimated 4,038 square feet, which was recently razed and used for a new car sales lot. The property was in below average condition at the time of the sale. This reported arm's length transaction included cash to the seller. This property was appraised by our office. Sale No.3 - 1315 Whitehead Street. Key West: This sale of a redevelopment property consists of a 19,775 square foot rectangular-shaped, an interior site, with 100 feet offrontage along the easterly side of Whitehead Street. The site is improved with a two-story CBS/masonry office building that contains 6,154 square feet of gross building area. This office building and site improvements were built in 1968, according to the Monroe County Tax Assessor's records. This property was purchased for conversion to a residential redevelopment. The contract for sale and purchase was subsequently assigned to another party South Whitehead, LC in the amount of$425,000. In addition, the assignor, will receive 5.5% of the gross sales price of each unit as it is sold. This comparable sale was appraised by our office and is located approximately three miles southwesterly from the subject property. Sale No.4 - 1990 N. Roosevelt Boulevard. Kev West: The previous sale ofthis comparable sold in March 2003, at what appeared to be below the market, as it indicated an appreciation rate of 35.5 percent. This comparable was a large "locals" restaurant and a piano bar located in the New Town section of Key West about two miles southeasterly from the subject. The site consists ofan irregular- shaped parcel with approximately 259.69 feet fronting along the southerly side of North Roosevelt Boulevard, U.S. Highway No.1, plus 229.0 feet fronting along the northerly side of Roosevelt Drive across the rear and contains a total of 50,250 square feet. The site is improved with a one-story wood frame and CBS/masonry structure containing an estimated 6,629 square feet, which was recently razed for the construction of a new office building. In addition, the rear of the site is improved with a one- story CBS/masonry residential duplex and a triplex containing a total gross living area of2,476 square feet. According to the Monroe County Tax Assessor's Records, the restaurant was built in 1962, while the residential buildings were both built in 1948. The property was in below average condition at the Appraisal Company of Key West Page 29 '] rj ~ ~'J ~:. ~~',' rt r'!'1 ",',',' ~;,Ii t" ',I:,',) J: ~ ~I ';i; '" aij'" I I, i1 I ~,'~ ~ ~ -,~~ I I '.~ j 1 j I Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard. Key West, FL time of the sale. This reported arm's length transaction included cash to the seller. This property was appraised by our office. Sale No.5 - 107-133 Simonton Street. Kev West: This is the sale of a portion of a former lumber yard retail company. This comparable includes multiple CBS/masonry open lumber storage structures with perimeter chain-link fencing, as well as a corner unimproved site, historically utilized as a parking lot. The structures contain a total gross building area of 16,81 7 square feet situated on a 51,025 square foot site. The purchase was an arm's length transaction with the investor considering parking lot use as the future development. This comparable sale was appraised by our office and is located approximately two miles southwesterly from the subject property. Sale No.6 - 3424 N. Roosevelt Boulevard. Kev West: This is the sale of two commercial lots located within Stock Island, about 25 miles southwesterly from the subject property. The property consists of a 22,000 square foot, rectangular-shaped site, encompassing two contiguous subdivision lots, which fronts 100 feet along the southerly side of Suncrest Road and extends approximately 220 feet in depth and backs up to bay bottom. The site is improved with a 600 square foot trailer. We have extracted the land value including development rights to replace the trailer by deducting the depreciated value of the trailer. The sale was an arm's length transaction. The purchaser was the owner of the neighboring property. Sale No.7 - 3401 Nortbside Drive. Key West: This sale consists of an irregular-shaped site, which was built as a Knights of Columbus Lodge. The structure was built in 1992 of CBS/masonry construction containing 4,802 square feet of gross building area and situated on a 24,760 square foot site. The property was purchased for conversion into a medical office facility. This sale was an ann's length transaction with cash to the seller. This comparable sale was appraised by our office and is located approximately two miles southwesterly from the subject property. Sale No.8 - 511 Greene Street. Key West: This comparable sale consisted of a one-story brick structure formerly utilized by the local newspaper and most recently unoccupied or partially used for storage. The structure is situated on the northwesterly comer of Greene and Ann Streets, just one block easterly from Duval Street. This comparable includes 13,637 square feet of building area situated on a 24,408 square foot site. This sale was an arm's length transaction. This comparable sale was appraised by our office and is located approximately three miles northwesterly from the subject property. Sale No.9 -120 Simonton Street. Key West: This comparable consists ofa portion ofa former lumber yard and retail facility containing 46,250 square feet of building area including retail and warehouse areas. This sale is situated on a 57,381 square foot comer site, at Greene and Simonton Streets, with additional street frontage on Ann Street. This property was redeveloped into retail uses at the first level with proposed residential units at the second level. The sale was an ann's length transaction with conventional financing and cash to the seller. This comparable sale was appraised by our office and is located approximately three miles northwesterly from the subject property. Appraisal Company of Key West Page 30 7'1 i ~I rj ii.~ ., ~'....l e' "' ~'..' ~; .. ~.'1 !\>: !l I ~ i '.,.~..','. i' ....k ~ . I ] .] ~ d ,~ :1 Summary Ap~raisal Report Tee. n Center, 3491 S. Roosevelt Boulevard" Key West, FL [ kllll'!'J~ '~.JilIIIl-'~~--"~- -l~ I1r' "."\1'lli--lBit Sale No. 10 - 200 Greene Street. Kev West: This property consists ofa three-story concrete historical building, originally developed by the U.S. Navy. This building was utilized as a museum with retail sales and contains a total of 30,001 square feet; it is situated on a 15,377 square foot site in a comer location. The sale was an arm's length transaction. This comparable sale was appraised by our office and is located approximately three miles northwesterly from the subject property. Valuation Regression Analysis: After analyzing more than 30 comparables and dismissing the outliers in our analysis, these comparables were the most similar recent comparables and were the most reliable in valuing the subject property. Due to the lack of paired sales data, percentage adjustments and/or comparisons were not utilized. Instead, we have considered a linear regression analysis of the comparables based on reasonable units of measure. We have found a very tight correlation between the land square footage, gross building area, the floor area ratio (FAR), location, and the adjusted sales price. The x-variables, four independent variables, are the land site size, gross building area, floor area ratio for each comparable and location. The y-variable, dependent variable, is the comparable's adjusted sale price. This data population sample of the comparable sales indicates a tight correlation which is measured by the R2 of the data set. In the case at hand, a correlation of +0.975 was indicated. Correlations near 1.0 are considered most reliable; therefore, the subject's correlation is considered reliable, and the population sample appears appropriate in our valuation model and can be considered credible in the units of measure for the subject property. The computer analysis of this model indicated the following values: In equation form, the regression model looks like this: Subject N o./Coe flicie nts ($831,079.63\ Land Are a 1 G.B.A2 F.A.R'4 LocatiOD3 Tract B - X. 18,800 4,876 0.25~ 0.25 Bn $54.21 $4.15 $1,341,306.02 $1,221,365.96 Y = (XJBJ) + (X2B2) + (X3B3) + (X.B.) + Intercept Y = (18,800 X $54.21) + (4,876 X $4.15) + (0.259 X $1,341,306,02) + (0.25 X $1,22] ,365,96) + (-$831,079,63) = $861,044 "As Is" Value of the Fee Simple Interest of the Subject Property as Indicated By the Sales Comparison Approach (Rounded) .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . $ 860.000 Appraisal Company of Key West Page 3/ ....] ;: fl.,.. ~S'. J If] ~J ~'] ._~; ~... ..;>..-' ..',',."..,.-.] );-- i.,., I I ~ I ~~., t~. -~. I I ~ i I ! ] Summary 1l&raisal Re~, Teen Center, 3491 S. Roosevelt Boulevard, K,. ey. West,. F....'L..,.. fI""'!--....--VVlb " '-""''f'''''1nIil'&!_~.iIllll~- "JIi'II8illl.~~::';'"';,t;tc RECONCILIATION AND CONCLUSION The following Fee Simple value indications have been developed in our analysis of the Market Data. Reeonelllatloo 3491 S. J100Hwlt ...vud, Key We.t, JlIDdda "Ai"" ~ubtV.- v........ Cost Approach InCOJre Approach Sales Comparison Approach MItket V.... .. 51 . ...... Not Applicable $625,000 $860,000 "As Is" Market Value as ofJ anuary 10, 2007 (Rounded): $810,000 The Cost Approach is based on the estimated value of the land (developed through comparison), and the estimated cost of the site improvements. This approach is particularly useful in 'valuing new or nearly new improvements. This approach was not considered applicable due to the subject property being an older building combined with the unreliable estimation of vacant land values. The Income Approach is most applicable to properties that are typically purchased for their income- producing capabilities. In the case at hand, the subject property is a public service or commercial use property with the potential of being an income-producing property. Thus, the Income Approach represents the value an owner may consider paying in order to gain the benefits and profits of the business, as well as that of the real estate. However, the subject property is truly an investment type property that is suitable for redevelopment; therefore, the Income Approach was only lightly weighted in the final indicated Market Value. Hence, the Income Approach was considered applicable as the property is currently leased and our clients are proposing to release the property, though it was only weighted lightly. The Sales Comparison Approach is a direct measure of the buying and selling behavior of the partici- pants in the real estate market. This approach directly measures what sellers are accepting and buyers are paying for property. Therefore, if a significant number of comparable sales have occurred and are available for analysis, then the Sales Comparison Approach becomes an important method in developing a value indication. Our analysis often redevelopment comparables was considered most indicative of local Buyers' and Sellers' motivations. Thus, the Sales Comparison Approach was weighted heaviest in our final opinion of value herein. Appraisal Company of Key West Page 32 -, j " 1 ::"":,, ~" Cl ~ iil 'Cd <' i;'o': Iii>. J I I - ~ ~ I I I J ] 1 ] Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard. Key West, FL CERTIFICATE OF APPRAISAL WE HEREBY CERTIFY THAT UPON APPLICA nON FOR v ALUA TION BY: Ms. Bevette Moore, Airport Operations County of Monroe, Airport Business Office Key West International Airport 3491 South Roosevelt Boulevard Key West, FL 33040 We have personally examined the following described property: COMMONL Y KNOWN AS: Teen Center 3491 South Roosevelt Boulevard Key West, Florida 33040 Based on market analysis and research, it is our opinion that the "As Is" Market Value of the Fee Simple Estate of subject property, commonly known as the "Teen Center" located at 3491 South Roosevelt Boulevard, Key West, Florida, based on the Highest and Best Use, subject to definitions, assumptions and limiting conditions, as of January 10, 2007 is: EIGHT HUNDRED TEN THOUSAND DOLLARS ($ 810,000) Based on Market Rental Analysis of rates for land and buildings with similar uses within the subject's market area, it is our opinion that the Fair Annual Market Rent, on a Triple Net Basis, subject to an allowance for the cost to cure the deferred maintenance, also subject to definitions, assumptions and limiting conditions, as of January 10,2007 is: Fair Annual Market Rent: Fair Monthly Market Rent: Fair Annual Rent/S.F. of Site Area: $ 56,400 $ 4,700 $ 3.00 Appraisal Company of Key West Page 33 51 .1 1] '~'" .,' :f] ,;1; f~', ';I, t:'i'! .",".'..'.,' 'r. , !! i'Ji] ft, t"j.,.' ~.'l ;,'.1 I I IJ - i ;~ I I I ~ G! ] ;1 ~ j " ~ Summary Appraisal Report Teen Center, 3491 S Roosevelt Boulevard, Key West, FL t': , WE ADDITION ALL Y CERTIFY that, to the best of our knowledge and belief: o The statements of fact contained in this report are true and correct. o The reported analyses, opinion, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions and conclusions. o We have no bias with respect to the property that is the subj ect of this report or to the parties involved with this assignment. o Our engagement in this assignment was not contingent upon developing or reporting predetermined results. o Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or a direction in value that favors the cause ofthe 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 ofthis appraisal. o Our analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. o Richard Padron and Maria V. Wilson personally performed a site visit and a walk through ofthe property that is the subject of this report. o No one has provided significant professional assistance to the persons signing this report. o The use of this report is subject to the requirements of the State of Florida relating to review by the Florida Real Estate Appraisal Board ofthe Department of Professional Regulations, Division of Real Estate. o The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice. Appraisal Company of Key West Page 34 ;'1 l.. ~',",',"I .. , ~j :r t ~..,".'l ~t It'....-,'.l " (;'" 4;;.'.. I I - ).'''.' ~ . ~ ;~4 I I I".', I' , l j J f I " ~!!.."2':P~~..1~'..N~Jd.~1ii~~~;~;~=;:~~ APPRAISAL COMPANY OF KEY WEST ~~k, Richard Padron, CCIM, MSA State-Certified General Real Estate Appraiser License No. RZ 0000544 SEAL r! a, ~ (vi. u... '\ L.tJ,h--- Maria V. Wilson State-Certified General Real Estate Appraiser License No. RZ 0002686 Appraisal Company of Key West Page 35 -I , I :"'.,r~ ~,I 'r.:,] ~:; ~~~: "" "J ff:,','.. ~"~'. "'.] " ~,\., ~,:,..l'.. :,..... :~~ ~. I ~ Ii - ~.".. j i I I I g I ~ ~ i! Summary Appraisal Report ,:;,.r" Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL ASSUMPTIONS AND LIMITING CONDITIONS APPRAISAL DEVELOPMENT AND REPORTING PROCESS: In preparing this appraisal, the appraiser inspected the subject site and both the exterior and interior ofthe improvements. Information on comparable land and improved sales were gathered, confirmed, and analyzed. This is a summary appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2-4(b) the Uniform Standards of Professional Appraisal Practice for a summary appraisal report. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Such discussion of the data would not change the appraisers' opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. In preparing this appraisal, the appraisers visited the subject site and a physical walk-through of the improvements. Information on comparable improved sales and rentals was gathered, confirmed, and analyzed. The appraisers performed a summary appraisal report, as defined by the Uniform Standards of Professional Practice. This summary appraisal report is a synopsis of the appraisers' analyses and conclusions. Supporting documentation is retained in the appraisers' file. THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS: This confidential report was prepared for the sole use of and benefits of Monroe of County, Key West International Airport and is based, in part, upon documents, writings, and information owned and possessed by Monroe of County, Key West International Airport. This report is provided for informational purposes only to third parties authorized to receive it. The appraiser-client relationship is with Monroe of County, Key West International Airport as the client. This report should not be used for any purpose other than to understand the information available for the potential purchase of this property. The Appraisal Company of Key West assumes no responsibility if this report is used in any other manner. Neither all nor any 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 consent and approval of the appraiser. This appraisal is to be used in whole and not in part, in particular, no part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales or other media, without Appraisal Company of Key West Page 36 ~1 ~-\ '-..,.'] ~. i, io. ~J..,'.. k ct" 'Fl t, V] l I ~ i,J - ~i ','~ '~ I I ] ,~ ~ .~ ~l ~ Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL the written consent and approval of the author, particularly as to valuation conclusions, the identity of the appraiser or firm with which he/she is connected. The distribution of value between land and building applies only under the present program of utilization and is invalidated if used in making a summation appraisal. No responsibility is assumed by us for matters which are oflegal nature, nor is any opinion on the title rendered herewith. Good title is assumed as a title search was not made available. The property has been appraised as though free of liens and encumbrances, except as herein described. Charges for solid waste collection are a special assessment in Monroe County; delinquent charges for solid waste collection, or other liens against the subject property have not been considered in the valuation contained herein as a title search was not made available or conducted by us. The management of the property is assumed to be competent and the ownership in responsible hands. The appraisers relied upon the legal description and the partial survey, which was included as Exhibit "A" attachment in the lease to the "Teen Center." The subject property contains 18,800 square feet or 0.432 acres; however, according to the Monroe County Property Card the subject property is only a very small part of a larger 156.36 acre parcel, commonly known as the Key West International Airport. For purposes of our evaluation within this report, we have utilized the metes and bounds legal description and measurement taken for the survey which are include in the addenda section of this report. Any deviations from these sizes may result in a change in value. The previously described survey indicates that the building improves lies within the subject property boundary lines. No encroachments or easements were noted. The reader is advised to review the copies of the surveys located within the Addenda section of this report. Minor encroachments are typical within the City of Key West. Usually the marketability of the effected properties is not adversely affected. No responsibility is taken by this office for the accuracy or in regard to any questions on the nature of encroachments, encumbrances, or dissimilarities in measurement. We reserve the right to change the final indicated value herein if and when any discrepancies are found in regard to easements and/or encroachments. The "As Is" evaluation of the subject property, commonly known as the "Teen Center," 3491 South Roosevelt Boulevard, Key West, Florida, is improved with a one-story CBS/masonry building, consisting 4,569 square feet, which has historically been used as a community center. There is also an attached one-store wood frame storage building which contains 307 square feet. Hence, there is a total of 4,876 square feet of gross building area. The appraisers utilized measurements taken from the survey, as shown on the building sketch and calculations included in the addendum section of this report, for our analysis. It should be noted that the Teen Center was being operated at the time of walk-through inspection. However, our evaluation does not take any personal property into consideration. Appraisal Company of Key West Page 37 i , I I fl ;r"".,."] !\' ill ~~ rl '''1 ;~' ~! ""I ~l ~,;:~, ;~ I ~..,.' .~ - }1 ..~ ) j I 1 J 1 1 j Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West. FL The improvement has considerable deferred maintenance including a leaking roof, all the exterior doors and windows need repair or replacement, efflorescence, and minor spaulding. For purposes of our analysis, our Market Value evaluation was based on the Highest and Best Use of the subject property being for redevelopment. Furthermore, we have assumed that the subject property could be redeveloped as airport ancillary use or support services. In our evaluation ofthe Fair Annual Market Rent the appraisers have assumed that the landlord would either repair the deferred maintenance or allow the prospective tenant a rent adjustment for the cost to cure the deferred maintenance. According to the Monroe County Tax assessor's records, the subject structure was built in 1968 and contains 4,840 square feet of gross building area. We utilized measurements taken from the survey, as shown on the building sketch and calculations included in the addendum section of this report, for our analysis. Any maps or plats reproduced and included in this report are intended only for the purpose of showing spatial relationships. They are not measured surveys nor measured maps, and no responsibility for cartographic or surveyi~g errors is assumed. Weare not required to give testimony in court unless arrangements have been previously made thereof. We assume that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. We assume no responsibility for such conditions, or for engineering which might be required to discover such factors. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The subject improvements were built in 1996; thus, the appraisers have assumed that they meet ADA standards. However, the appraisers have not made a specific surveyor analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. The appraisers are not contractors and are not qualified to make a determination if the building adheres to the requirements. The property, together with a detailed analysis of the requirements of the ADA, could reveal that the property mayor may not be in compliance with one or more of the requirements of the Act. If so, this fact could have an effect upon the value of the property. No roof or termite inspection reports were made available; however, there were roofleaks and deferred maintenance need, including replacement of doors and windows. The appraisers do not assume the responsibility for the condition of the roofs, termite damage, nor the physical condition of the structures without the benefit of an engineering report. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the Appraisers are affiliated. Appraisal Company of Key West Page 38 n \i!'] ,ti:: 1[, "?{'! ~- r;, I I ~ ~.J" ~, ~ ~'.,! t] I I ~.;,.. ~ '~,~,: ~ i ~ I ~ Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL The undersigned Appraisers have no present or contemplated future interest in the property and the compensation is in no manner contingent upon the value reported. Possession of this report does not carry with it the right of publication or advertisement of any of its conclusions, nor may any except the applicant use the same for any purpose without the previous written consent of the appraiser or the applicant. In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenance of the building, such as the presence of radon, asbestos insulation and/or existence oftoxic waste, which mayor may not be present on the property, has not been considered. Environmental screening or audits of the subject property was not made available to the appraisers. Upon inspection of the property, no visible signs of environmentally hazardous materials were noted. The subject property is not listed on the Super-Fund List published by the Environmental Protection Agency; therefore, the appraisers do not know of any environmental hazards on the property. The appraisers are not experts in the field of environmental hazards. An expert in the field is recommended if desired, as no environmental tests were made by the appraisers. This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which the Appraisers are affiliated. This appraisal report is in conformity with the Uniform Standards of Professional Appraisal Practices and this appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. The discovery of latent conditions is beyond the scope of this appraisal. Detection of latent conditions requires the expertise of qualified persons such as architects and engineers. Latent conditions include, among other things, non-apparent structural conditions; presence of prohibited hazardous wastes; presence of radon gas, methane gas, asbestos, lead, petroleum products and other air, soil, or water contaminants; and many other conditions too numerous to mention which may affect the value of the property being appraised. The appraisers conducting this appraisal are not qualified to detect latent conditions and have conducted this appraisal upon the assumption that no latent conditions (including those mentioned above and others) exist on the property covered by this appraisal. ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraisers conducting this appraisal, nor the APPRAISAL CaMP ANY OF KEY WEST make any warranty, express or implied, to property covered by this appraisal, and neither shall have any liability to any person for differences in the value of the appraised property, or other damages, resulting from discovery of latent conditions (including those mentioned above and others) on, or in proximity to, the appraised lands. We do hereby certify that to the best of our knowledge and beliefs, the statements of fact contained in this report, upon which the analyses, opinions and conclusions expressed herein are based, are true and Appraisal Company of Key West Page 39 ,~ I ~,-l ~ . l"] ~,.. ~'] " ,..~, ~'l ~ 1;, I ~ liJ ~ ~ j ;J I I J J ~ j ~ Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL correct; also this report sets forth all the limiting conditions affecting the analyses, opinions and conclusions contained in this report; also this report has been made in conformity with the National Association of Real Estate Boards and the Appraisal Institute. Appraisal Company of Key West Page 40 :~.I ....:, ~ ~j ~] t~: 'i- I I - I I I I g-~ ~l j ] ~ j j Summary Appraisal Report ,~} 'i,~ Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL Professional Qualifications Richard Padron, CCIM, MSA, AAR, SRC Richard Padron has a diverse background in the real estate industry. His experience and education in the real estate profession have continually excelled. He has been affiliated in residential construction, real estate development and the real estate brokerage business for more than 30 years. During this time, he has managed construction projects, marketed, and sold several hundred homes in various subdivisions in the Florida Keys and Key West, and has appraised thousands of single families. multi-family and commercial properties, His real estate career has involved the entire development process from acquisition to project sellout, including the pennitting and operation of wastewater treatment systems, as well as dealing with environmental concerns. Prior to founding the finn, Appraisal Company of Key West, Inc., Mr. Padron formed the corporation of Richard Padron & Associates, Inc., a real estate brokerage corporation. These corporations have been in existence since 1984, providing all types of real estate services, including brokerage; market, financial and investment analysis; expert witness testimony; appraisals; property operation review, and planning and feasibility analysis. Education: Real Estate Certificate from Florida Keys Community College Professional Activities: MSA:Master Senior Appraiser, (1984). Certificate No. 00883, CCIM:Certified Commercial-Investment Member, (1986). Certificate No. 2765. AAR:Accredited in Appraisal Reviewer, ( 1987). Certificate No. 77. SRC:Senior Real Estate Councilor, (1993). Certificate No. 89. Certification: State-Certified General Real Estate Appraiser, License No. 0000544, (1990). Licensed Real Estate Broker, State of Florida. Licensed Class A Wastewater Treatment Plant Operator, State of Florida. Associations: National Association of Realtors Florida Association of Realtors Key West Board of Realtors Marathon and Lower Keys Board of Realtors. National Association of Master Appraisers Commercial-Investment Real Estate Council. Accredited Review Appraisers Council National Association of Counselors Experience: Appraisal Company of Key West, Inc. (Since 1987) Richard Padron & Associates, Inc. (Since 1984) Michael A. Padron, Inc. (1978-1984) Riviera Enterprises, Inc, (1968-1984) Appraisal Company of Key West Page 4/ 1 ! I -] r'j i; .~.l' .." TTj -~~~-- - :~ -. u..;.,. I J f~ ~ ] ;~> ,~: l";' I I I ~:," !> " ] j ] Summary Appraisal Report Teen Center, 3491 S. Roosevelt Boulevard, KerWest, FL Area of Expertise: . Analysis and evaluation of many types of real estate . Assessment of project feasibility including: Market research, investment analysis, and feasibility study Highest and Best Use Analysis . Litigation support and expert witness testimony . Types of properties appraised, evaluated, and analyzed: Hotels, Motels & Guesthouses Shopping Centers & Malls Restaurants Theaters Marinas, Boat Storage & Repairs Seafood Packing House Multi-Family Projects Proposed Development Projects Retail/Office and/or Specialty Stores Warehouses (Mini, Storage & Distribution) Highest & Best Use Study Mobile Home & Recreation Vehicle Parks Single Family Residential & Condominiums Multi-Family & Income Properties Environmentally Sensitive Tracts Appraisal Company of Key West Page 42 :1 ~'I \,' "- ~) ['I r. I I i ~J ~::i ~'" 0J.", it I I J 1 '1 I 1 I Summary A~isal~ort Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL -- - lli~ ~~-~r"-"~"'i'"~__--''' -1..IIJ1'U - 1 -~..,~- --~. APPRAISER CERTIFICATION AU2954 775. STATE OF,FLORIDA DUu'tMgr 0' .011.... UD' ,aOnsaitOlaL UOOUTION rLOaIDA. JtMt. .8TAn U'UIau. BD SEQlwOt1l1S02t11 111/15/200' 10,0333155 ~:::-I MaR ~ CD'l'IPIEI .....u. UJltUII.. II..-d be1_ II CD'l'UIEl ' u.Mr U. prO'Yi.1~ of CbaDtR n. JIll. ixp1rae1oe dat., ~v 30, 20b. ' . Jfff*rf.&ir& 1101 KIT "'T rL 330.0 JD auSH CIOWMOIt IDMaNa MAaSTILLaa l.eRl'!' UY '.ft~ , RV I AlAI Appraisal Company of Key West Page 43 '"I I '.,"1 r, ,'" 11 ~s,l I II-. l''';' T ~ ~'" t' ~ ?",.,.3. W i I j ] ] ] Summa~:1Illtaisal Report .. Teen Center, 3491 S. Roosevelt Boulev. ard, Kelt West. FL *"-' ., .,1I!M!:....' Ii!l_~t:i\'i~~~'_U'--"~""--'~" - ---'11 i ~~,-..-" ~~OO'~ APPRAISER CERTIFICATION ~'2930822 STATE OF FLORIDA DEPARTMENT OF aUBIMKSS AND PROFESSIONAL REGULATION PLORIDA IlUL BSTATB APPRAISAL BD SEQlllt,0610310JOU ~.-~LICINSB KBR : 10/31/2006 060303597 az2686 The CSRTIPIBD GBNBRAL APPRAISBR N...d b.lov IS CBRTIPIBD UDd.r tb. proviaiona of chagter ns Fl. axpiration Qa~e: NOV 3D, 20 8 ~I~utu~jt~IRGINIA Itn RST FL 33040 JU BUSH SIMONB MARSTILLER CJOVJUtJlOR ~,~n, .v .~ ~~~, IIC"" <lV AW SBCanARY Appraisal Company of Key West Page 45 I i ,'C. I 'TI , i '~:1 ~-" '<:,'1 y - d ..,,'.'..'..1 " { ] I ~,',.'.' \>.; r~ ~ .,~", ". "" ~1,.' ;d i I :j ;j j J ] j Sum. m~~~..sal ~~.rt . . .' . ,Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL." ..,. ." . t.t..~,~it~'~--I-'_."---':iTIl''''''' 1 [111 I I i ~-"'~----,"",-il; SUBJECT PROPERTY: Street Scene Looking Southwesterly Along South Roosevelt Boulevard Street Scent Looking Southeasterlv Along South Roosevelt Boulevard Appraisal Company of Key West Page 46 ,,) I I r.]' ('" . F' (', i ~....., >0:.. if.'. ~"" J't 'L I I - ~;",,' t ~ (,...:1.'.. lli I I ! I ~ .j ] ~ ] Summary A Teen Center, 3491 S. Roosevelt Boulevard, Ke West. FL SUBJECT PROPERTY: Front View of Teen Center Lookinll. Northwesterlv From South Roosevelt Boulevard Front and Westerly Side View ofSubiect PropertY Looking Northwesterlv From Parking Lot Appraisal Company of Key West Page 47 "1 I., El ['I 11.:'" r"l ~' , ~ ~'.'.'I "" J 11 I ~ ~ ~ ~l ~ I I ~ j j i I Summ,!~. AlfAraisal R~ort Teen Center, 3491 S. Roosevelt Bouleva~ West, FL, -,~p' ~IUlI!lllIl ~ -I ~-,:~~'~.."----~_ 11111 "'9_ 1'111 ~_..- ., '1l''''- .' SUBJECT PROPERTY: Rear View of Storage Building from Back Yard View of Easterlv Side fo Subiect PropertY Looking Southerlv Appraisal Company of Key West Page 48 Summa~ AflJ'aisal ReRort Teen C, enter, 3491 S. Roosevelt Boulevard, Key West, FL T -11 n ,. ' .-- _._~-u- l~r .. l1'tB SUBJECT PROPERTY: Interior View of Bar Area Interior View of Subiect Property Recreation Area Appraisal Company of Key West Page 49 ;c 1 ,I fJ .~'.I .r "...,.,1 :~, J 17] ,t .,{',] iJi- I ! ~ 1 ~) ~ I I J Summary ~Er~!sal ~l!P?~'~~'~_~_'_iJft.T!}!.~~~~r, 3491 ~.:..!5!!.q~lf!'!!'!!.]Jo.~~~ SUBJECT PROPERTY: Interior View of Damage from Roof Leak View of Damaged Exterior Door Appraisal Company of Key West Page 51 \ '.'j ,'. n I I - ,1 ",J :C,..~l "*] ~ I ~ .11 j .~ j I Summa Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL " "', .~; .011' SUBJECT PROPERTY: Interior View of Efflorescence Wall Damage View of Damaged Window Appraisal Company of Key West Page 52 .,'..~' I l~ S I fJO".l.,.,.'.:.1 \If!' ~\. .'Il'. n t,J (>"J EeL 1 I I ~ "J r :~.:\: " ~ iJ I I j j ~ I J I ~mma'X:4Pf{':#f!!l~~~~~i.=.~enter:..!491 .~:liC!_<!.~!Y.!!.~~~f:;~_r.r!! ~~~~ STATE MAP ~. Appraisal Company of Key West Page 53 1 I ~ - :~ ] I I i "j J i1 Summary A Teen Center, 3491 S. Roosevelt Boulevard, IG ,'. ., West, FL FLORIDA KEYS MAP Tavern1er KM 91-92 ,>< P~n~&t~on Key HM 86-90 ~ \llnd1e.)' Ke.)' 1'MB4 I.!!ll.Amorada .vpper M~~eQumbe Key KMBO , Lower Ka'tecWftbe Key f1l'f74 Fiesta Key HH70 IlA.. Lay-ton ~~ng Key MM66-69 fi~g~hK:-yYB MJ161 -~~~i6~ Key KI157-60 arat.hon ~ores Key colony Beach MM54 Vaca Ke)' Pl'a.ra;thon M1150 i J .... i..."m'~Il~n~Y 4'3~~)8 Ml~lf~~:~~~~J8 &mrQ;!: MM ~g-2? au-"".lan~ MM 24-25 Sug~~~? ~y ~2J2-23 Lowex S\J.45ar l.oa.L' Xe;y HI1 1 7 18 COPP1.t.t. 11M 10 Boca Ch~c& MM 7-8 Stack Island M}iIf 5 Key West !'1M 0-4 Appraisal Company of Key West Page 54 ,I """1 ~I ~,I rl ~,I ![j Iii, i! {1 E ;,1',,: IIi,:t,. " - "'I' R;;,'r, ~L "!,'J: ] ~~ j I ~ .~ j j j i ~~maQ! 1Efraisal Report ..".,,""W-.,~~. _,l1t.i~f:nt~r.:..,!j:riJ,~~iev.elt l!oJ.iiy"q!,ti!-ey~ (' ......-t....,I(O ..... ...~, <"J."\. :.-;: ~ '\ ~... .,'- -3' \. ~:r. '.. ,,1\ ~:... '\. :.~"".~ "'-'I> ; ;<S" . ~ 4~/,.... ..... ,-,,,06,"," .. '~;::. \ ..."':" . <,,"'/':,~' ( . ",0 "''';r'' ,"," 0/ ,.... ~, " .~ .,. \ ' " .,.' , @ .'<(' ,'" .." ~ '" \ \ . '. ~, .."li '" "'....f" \ ., C' ..II'" . ". \ .,~. .. + ~ \ \ ...~",J' /".., ",'. r, ~ 0> \, '... '\ ~~1I~ ~;//;" \.<, ,,', .~\ ,o-~ ,....::..", ",.",,,,,,,ft.,,,,, ~ " " .;\ 4,,1- ....;' ~'J' 'i'. ~ e. ." \Q. , ~\ ~#.,.' \r ~<~:,~,; .~ fJ;l" _'I>" .......,l\; I:'.~ LOCATION MAP -'<8 /~ '"<\ ..." .. ""..-"..r.. m . \ i o \ 'I ' " '\ .,,rf'/' \. \ "..'" . ~. "'tI''"'~~1;~:'. " '@ .-.,.~ ~.....".c -.,-,,..'rr; ; ~.. ;~. t J '.S . I';;a.~.. ..,#P'" ;('11" i.",,~..,. @ ~ ,.. 1- i.~".@ .",~ ,<- " .,.s''''' .... <~ '~. .,-'';)' ,,' ;,./' _.....' ..._.-.r ...\MOW. - :,,~.t;:I ...... .....~ ." ..,~ 0.; i ~, ~ ~.; ll. :; ;; W.l~" 1'lo..'1.... K8yW8,t ..... 't ..~ GJ ~,~..,. ~ ~ ....1'..::1"'.... ..... \ '\ 'l' ":.,~. "" ~::,...".... ~~.<I>""..,.~' Q " ~ ,,') .~.;,.. iI..p 1; ~@ ~......v \ ....-ZOIJ KIfYW.'t InltfT'1It.O"I&I ~~f!;}.'~,~ "j ;''''';~~All'po~o''' IS C<l..,#l...... :""..."'" , ~_If'l'l"'. ...:; -..; .. " ~ U.l.oIooW<y lit.....,......... .. "i~.........: 81.... 6'.-- ,... r~'",} 11_"- 1/:1'-'," '~c.~1;Y'I I",'~ @.J ..,~ Appraisal Company of Key West Page 55 "I , i .,. '. I I I ~ lW ~ I I 'n ! ,~ ~ ~ ~ ~~aQ'IApD,raisal Rcp.ort '__. " W'.'---'II--- Teen Center, 349 J S. Roosevelt Boulevard, Key West, F.'L --a;;;.; ___ _. ::::.......::;.~ '_~ll'-nIr -~' 1 T --- _'-"'~~ AERIAL MAP Appraisal Company of Key West Page 56 I e - ,.:.g: "'. ~'::;' '",~2 ,>' i"- i~ I I 1~ ~ ~ ~ ~ J J Summary v.raisal Rep'~r.t Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL ~~-~-I T U , 1lfilIi.~IT"-'-~<'~.~~-"--"-~. ---11f1' --""..,~ PLAT MAP OF ENTIRE AIRPORT PARCEL O;'_,,"'::'I'! Appraisal Company of Key West Page 57 "',," I ~, ~'_i ~I ::,1 r-'j i"'j ,iJ. I ! tJ - "U: ':;,/: }" m<,"',' "', (" ~'. I I I,',' ; ~ j I ~ " Summary A&craisal R~ort , Teen Center, 3491 S. Roosevelt Boulevard. Ke.l. West, FL, --'-',--'" ~"'iIi_--~~"'-~I-~n.1 "'" -._- -II: ' .....'....DIF PLAT MAP OF SUBJECT PROPERTY I I I I / / I I I I / I I I ~ --~ --- --- --- Appraisal Company of Key West Page 58 - - I I I I I i / I I I I I I I "3-:11" f'1 , I ,c".") "'4-':.i "I \: ,Ll ~ 11 - r.~, !>.. ~ I I I ) 'j ~ 1 j I /I , !)- =~ :, " -- t " " ~ Q c.., '" J \ "I- . \ ".. \ \ \ \ \ \ \ ) ~(___J t-.' I ' 1 I I Teen Center, 3491 S. Roosevelt Boulevard, 1G West, FL SURVEY o~.. . '--. 1 '1" , '.1, T----.--- :;:;J "f i ,p- I , ' !L i I ~ - J N.BU25'32"W. 206.00' , " ", : I ' (N U'4TQt1' II' ~ ,N 1,",-- ,.. I' I I ,,\~,:. I " ~l."'l~.B. 2, pg. 17)f pt1p.l . ~J 1"""- P. 5 f . Ilf':iiis'~ -I ,. ........- - - -- -1----- ! .' I --. , __---~. ,_.--t ~I-C- .~ I . ~ . - I ~ i , .1 I , I, I! 'J 1 I I , 1 " ! . ,. .- ,... - .,- ,I ' -- ~ - ~ l&J ~ 0:: a Q.. I 0:: I I -I II..~~ : ':~. . I ~ \, Appraisal Company of Key West Page 59 I ~; '. j ~l r,' : "i "cl I ~ - ~. ',e ~'~ I I I i ;."~'.. j ~ I ] l Summary A Teen Center, 3491 S. Roosevelt Boulevard, Ke West, FL BUILDING LAYOUT 1S21' :, Stt.ngt ., !:: !:: "'" ~ODr J4.86' .... Ul ... 0 ~ ~ ,. ~ (l .. ,. i ! to .. - Ul .- ~ II) to 0 c tJ ...' .- Q. ...' ::l ()Q No t to Seale l4.B6' uU' ::J~ eOLIY ~..,~ ,., IO~' ., +llT Sketch by Apex Medina '" Appraisal Company of Key West Page 60 Wj ~i ,.({~~ I I - ~.1 j~ ~ E I I I ! 1 ~ Summ~ 1P.1!.~ r~ali!!!sa!.l~ R~ort , Tee. n Center, 3491 S. Roosevelt Boulevard, Key West, FL _Ifllf ., .'. ' , . 1."'~"-<"ljf.~.~"W- .- - 1m .. '--""'~r ....,,~'i~ BUILDING CALCULATIONS '"',:' 1. f' I.. \~ ~. ~:,. :f!~ '__r'f~ CJ:'''": "';So' . _BUI*Area 2;;:", 3:' (r:i~d) I ~'4876 fIioonded) ... .6PPRAIML co. OP II.EY \IlE5T PiIQ* 1 of 2 -" ApJI\IOoIII'...""'" ,..D.lOnw....IO~I_ Appraisal Company of Key West Page 6/ I .m1E ~~. ~ i i;~' ~'i f' j ) I 1 l ] ] Summa '%/ Teen Center, 3491 S. Roosevelt Boulevard, K West, FL FLOOD MAP & PANEL C> InterFlood$" 3591 S Roosevelt Blvd Key West, FL 33040,5209 Prepared for: Wilco Valuations dba Appraisal Co, of Key West ww....lnterflood.Com. 1,800-252,6633 "'':,'! ~I~ -;"'~ 4:'D.'''' /:.-",.1 . ,,' FLOODSCAPE --'..--, i Flood Hazards Map , Mlp Nu_ 12087C1517K EIl'BCtiUe Dote FellrJ_V 18. 2005 , Fgr- ITIlJIlI IntlJrTfYJion ~ovc flood tones. and 1\000 , inSU!TlC8, Oonlact: II 1000-200\1 S~Pros.. JI"ldJor F'IoodSout'Otl Cc,rpo"'iorls:, AI ~$ rUllU'Ved. .....nts 8,831,328 and e.l!l78:.&lti. Ot.....rpz.l"lI::S pe:ndin;. For Infe: in1otlfloodcource.eom. ,'" ~,.~-.... AI ." .c Appraisal Company of Key West Page 62 ~ } r:1 :: i ~~ : ~i I I i i ~.,.", ij . I J J '~ Summary ~raisal Rp,or, t . Teen Center, 3491 S. Roosevelt Boulevard, Key West, FL" - I -- -''''"''il~'i~ I ' -....."'illI V '11' '~... ZONING MAP I~ SF A ICey West International Airport c-ow PS -....,- ~----------------- ~-- -....---........ -....--- o 500 1,000 1,500 - I Feet: W$E S Zoning Map of the City of Key West Plat:e6 orB, Not 011I081..",,,,, Please contact tho Planning Department or City CIeri< for the on,oal ..,.lOn Appraisal Company of Key West Page 63