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02/16/2011 AppraisalAPPRAI SAL OF KEY WEST February 9, 2011 Mr. Jerry A. Barnett, Director Project Management Department Monroe County 1100 Simonton Street Key West, Florida 33040 RE: Appraisal Report Vacant Land With Entitlements co 3229 Flagler Avenue, Suite #101 Key West, Florida 33040 Telephone: (305) 296 -4568 Fax: (305) 296 -0493 Website: fla- keysappraisals.com Email: jim(a fla- keysappraisalsxom Former Sun Haven Trailer Park 5671 MacDonald Avenue Lots 12 to 15, Block 31, Stock Island Maloney Sub PB -1 PG -55 Stock Island, Florida 33040 Our File No.: 110 -11 Dear Mr. Barnett: I performed a self - contained appraisal assignment and estimate of the "As Is" Market Value of the Fee Simple Estate for the above referenced property. A site visit was made on February 1, 2011. The attached Self - Contained Appraisal Report has been prepared to comply with my understanding of the requirements of the Uniform Standards of Professional Appraisal Practice. The reader is advised to review the Scope of Work section within this report, Part IV. The subject property consists of four contiguous, vacant, scarified lots fronting on the northerly side MacDonald Avenue. The property contains a total of 25,000 square feet with 200 feet of street frontage on MacDonald Avenue. Currently, the subject property is not encumbered by any leases. A survey, that also includes other lots, was provided; however, the date and preparer are unknown. I was provided with a letter from Mr. Townsley Schwab, Director of Planning and Environmental Resources, dated December 17, 2010, which confirms the pro -rated development rights for the subject Lots 13 -15, Block 31 of Maloney Subdivision based on a prior Pre - application Meeting Letter Of Understanding (PMLOU) for Lots 9, 12, 13 -16, 19 and 20, Block 31, dated November 10, 2004. Per Mr. Schwab the subject Lots 13 -15 have the pro -rated entitlements of 3 ROGO exemptions per lot and 688.5 square feet of NROGO exemption per lot. Thus, these three lots have entitlements for a total of 9 ROGOs and 2,065 square feet of NROGO exemptions. According to the prior PMLOU, Lot 12 has 2 ROGO exemptions. Therefore, the total entitlements are 11 ROGOs and 2,065 square feet of NROGO Mr. Jerry A. Barnett, Director Project Management Dept; Monroe County February 8, 2011 Page 2 exemptions. Due to the ownership entities are the separate sales contracts, the client has requested that I value the subject property as Subject Property "A" Lot 12, Block 31, Stock Island Maloney Subdivision PB -1, PG -55, while Subject Property "B" encompasses Lots 13 -15, Block 31, Stock Island Maloney Subdivision PB -1, PG -5 5. I have considered the recent Pro - Ration of Entitlements letter and the prior Pre - application Meeting Letter Of Understanding (PMLOU) from the Monroe County Growth Management Division in my valuation of the subject property. The Pro - Ration Letter and PMLOU have reported the dwelling units exemptions allotted to the Real Estate Numbers (RE) as follows: According to Mr. Jerry Barnett, all of the subject ROGO entitlements are market rate units and do not have to be affordable units. The total site area for the subject property was taken from the Monroe County Property Appraiser's Record and confirmed with our calculations. The legal description was taken from the warranty deed in the County Public Records. The gross building area for the former improvements (NROGO entitlements)was referenced from the recent Pro - Rations letter and prior PMLOU. Any deviations from the sizes for each parcel could result in a change in value. If and when, a more detailed survey for the subject property is made available, noting changes in the measurements used in this report, the appraisers reserve the right to change the final value. Any maps or plats reproduced in this report are intended only for the purpose of showing spatial relationships. They are not measured maps, and no responsibility for cartographic or surveying errors is assumed. 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 properties 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. 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 ofthe lease period. There are no long -term leases encumbering the subject property, Mr. Jerry A. Barnett, Director Project Management Dept; Monroe County February 8, 2011 Page 3 therefore, a Leased Fee valuation is not - applicable; hence, the Fee Simple Estate Interest valuation was considered herein. Based on market analysis, visitation and research, it is my opinion that the "As Is" Market Value of the Fee Simple Estate of Subject Property "A ", vacant land with entitlements, commonly known as the former Sun Haven Trailer Park, located at 5671 MacDonald Avenue, specifically, Lots 12, Block 31, Stock Island Maloney Subdivision Plat Book 1, Page 55, Stock Island, Florida, subject to development rights of the Recent Entitlement Pro - Ration Letter and prior Pre - Application Meeting Letter of Understanding (PMLOU) for 2 ROGO market rate dwelling units, and also subject to the definitions, assumptions and limiting conditions, as of February 1, 2011 is: ONE HUNDRED SEVENTY THOUSAND DOLLARS ($170,000) In addition, Based on market analysis, visitation and research, it is my opinion that the "As Is " Market Value of the Fee Simple Estate of Subject Property "B ", vacant land with entitlements, commonly known as the former Sun Haven Trailer Park, located at 5671 MacDonald Avenue, specifically, Lots 13 -15, Block 31, Stock Island Maloney Subdivision Plat Book 1, Page 55, Stock Island, Florida, subject to development rights ofthe Recent Entitlement Pro - Ration Letter and prior Pre - Application Meeting Letter of Understanding (PMLOU) for 9 ROGO market rate dwelling units, and 2,065 square feet of commercial floor area exempt from NROGO and also subject to the definitions, assumptions and limiting conditions, as of February 1, 2011 is: FIVE HUNDRED FIFTY THOUSAND DOLLARS ($550,000) This confidential report was prepared for the sole use of and benefits of the County of Monroe, Florida. This report is provided for informational purposes only to third parties authorized to receive it. The appraiser- client relationship is with Monroe County as the client. This report should not be used for any purpose other than to understand the information available to the Bank concerning this property. Appraisal Company of Key West assumes no responsibility if this report is used in any other manner. Mr. Jerry A. Barnett, Director Project Management Dept; Monroe County February 8, 2011 Page 4 A Summary of Facts and Conclusions is provided in the front of this report. The Assumptions and Limiting Conditions may be found in Section I, followed by the Certification of Value in Section II. If you have any questions regarding this appraisal report, please feel free to contact me. Thank you for giving me the opportunity to provide this service for you. This transmittal letter must remain attached to the report, which contains 102 pages including related exhibits, in order for the value opinion set forth to be considered valid. Respectfully submitted, S James E. Wilson, MRICS, President St. Cert. Gen. REA License No. RZ 2164 Report Attached: C: \Comm -11 \110 -11 \Comm - 110 -1 l.wpd APPRAISAL REPORT ASelf - Contained Appraisal Report Property Type: "AS IS" VACANT LAND WITH ENTITLEMENTS FORMER MOBILE TRAILER PARK WITH COMMERCIAL BUILDING Commonly Known As: Former Sun Haven Trailer Park 5671 MacDonald Avenue Lots 12 to 15, Block 31, Stock Island Maloney Sub PB -1 PG -55 Stock Island, Florida 33040 Prepared For: MR. JERRY A. BARNETT, DIRECTOR PROJECT MANAGEMENT DEPARTMENT MONROE COUNTY 1100 SIMONTON STREET KEY WEST, FLORIDA 33040 Property Owner: 5671 MacDonald, LLC R AND S OF KEY WEST, INC. H -Try, LLC Site Visit and Valuation Date: FEBRUARY 1, 2 011 Prepared By: James E. Wilson, MRICS, President St. Cert. Gen. REA License No. RZ 2164 APPRAISAL COMPANY OF KEY WEST 3229 Flagler Avenue, Suite 101 Key West, Florida 33040 OUR FILE NO.: 110 -11 Table of Contents TABLE OF CONTENTS I ASSUMPTIONS AND LIMITING CONDITIONS ..... ............................... 1 II CERTIFICATION OF VALUE .................... ............................... 5 III SUMMARY OF FACTS AND CONCLUSIONS ...... ............................... 8 IV SCOPE OF WORK: APPRAISAL PROCESS, PURPOSE AND INTENDED USE OF THE APPRAISAL................................. ............................... 10 A. The Appraisal Problem .............. ............................... 10 B. Appraisal Process .................. ............................... 11 V DEFINITIONS ............................... ............................... 12 VI IDENTIFICATION AND HISTORY OF THE SUBJECT PROPERTY ................... 14 A. Location and Address ............... ............................... 14 B. Legal Description .................. ............................... 14 C. Owner of Record .................. ............................... 14 D. Sales History of Subject Property and Current Contracts ................... 15 E. History of Subject Property and Operation .............................. 16 VII DEMOGRAPHICS ............................ ............................... 17 FLORIDA KEYS HISTORY ............... ............................... 17 MONROE COUNTY DATA ............... ............................... 23 THE UPPER KEYS ..................... ............................... 25 THE MIDDLE KEYS .................... ............................... 27 THE LOWER KEYS ..................... ............................... 29 NEIGHBORHOOD ANALYSIS ............ ............................... 31 SUBJECT PROPERTY AND MARKETABILITY ANALYSIS ................... 32 VIII SITE DATA AND ANALYSIS ................... ............................... 38 A. General Description ................ ............................... 38 B. Topography ...................... ............................... 38 Appraisal Company of Key West i ■ Table of Contents C. Utilities .......................... ............................... 39 D. Zoning: ......................................................... 39 E. Access: ......................................................... 43 F. Easements /Encroachments ........... ............................... 43 G. Real Estate Taxes and Assessment: .................................... 44 H. Census Tract: .................................................... 44 IX IMPROVEMENTS ANALYSIS .................. ............................... 45 STATEMENT OF HIGHEST AND BEST USE ...... ............................... 46 AS VACANT AND AVAILABLE ..... ............................... 47 AS PRESENTLY IMPROVED ....... ............................... 48 CONCLUSION OF HIGHEST AND BEST USE ........................ 48 ANALYSIS, VALUATION AND CONCLUSIONS ... ............................... 49 A. Methodology: .................................................... 49 B. Cost Approach: ................... ............................... 51 C. Income Approach: ................. ............................... 53 D. Sales Comparison Approach: ......... ............................... 54 XII RECONCILIATION AND FINAL ESTIMATE OF VALUE ........................... 68 XIII ADDENDA.................................. ............................... 70 QUALIFICATIONS OF APPRAISER JAMES WILSON ........................ 71 LOCATION MAP ....................... ............................... 74 PLAT MAP ............................ ............................... 75 AERIAL MAP .......................... ............................... 77 SUBJECT PHOTOGRAPHS ............... ............................... 79 TAX INFORMATION ................... ............................... 82 ZONING MAP ..... ............................... ....................84 FLOOD MAP FOR THE SUBJECT PROPERTY .......... ....................85 PRO - RATION OF DEVELOPMENT RIGHTS . ............................... 86 PRE - APPLICATION MEETING LETTER OF UNDERSTANDING ............... 87 ENGAGEMENT LETTER ................ ............................... 99 Appraisal Company of Key West li Table of Contents Appraisal Company of Key West iii Section I Assumptions and Limiting Conditions I ASSUMPTIONS AND LIMITING CONDITIONS THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS: This is a self - contained appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2 -2(a) of the Uniform Standards of Professional Appraisal Practice for a self - contained appraisal report. As such, it includes full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. 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 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 subject property consists of four contiguous, vacant, scarified lots fronting on the northerly side MacDonald Avenue. The property contains a total of 25,000 square feet with 200 feet of street frontage on MacDonald Avenue. Currently, the subject property is not encumbered by any leases. A survey, that also includes other lots, was provided; however, the date and preparer are unknown. I was provided with a letter from Mr. Townsley Schwab, Director of Planning and Environmental Resources, dated December 17, 2010, which confirms the pro -rated development rights for the subject Lots 13 -15, Block 31 of Maloney Subdivision based on a prior Pre - Application Meeting Letter Of Understanding (PMLOU) for Lots 9, 12, 13 -16, 19 and 20, Block 31, dated November 10, 2004. Per Mr. Schwab the subject Lots 13 -15 have the pro -rated entitlements of 3 ROGO exemptions per lot and 688.5 square feet of NROGO exemption per lot. Thus, these three lots have entitlements for 9 ROGOs and 2,065 square feet of NROGO exemptions. According to the prior PMLOU, Lot 12 has 2 ROGO exemptions. Therefore, the total entitlements are 11 ROGOs and 2,065 square feet of NROGO exemptions. Due to the ownership entities and the separate sales contracts, the client has requested that I value the subject property as Subject Property "A" Lot 12, Block 31, Stock Island Maloney Subdivision PB -1, PG-55, while Subject Property "B" encompasses Lots 12 -15, Block 31, Stock Island Maloney Subdivision PB -1, PG -5 5. I have considered the recent Pro - Ration of Entitlements letter and the prior Pre - application Meeting Letter of Understanding (PMLOU) from the Monroe County Growth Management Division in my valuation of the subject property. The Pro - Ration Letter and PMLOU have reported the dwelling units exemptions allotted to the Real Estate Numbers (RE) as follows: Appraisal Company of Key West Page I Section I Assumptions and Limiting Conditions The total site area for the subject property was taken from the Monroe County Property Appraiser's Record and confirmed with our calculations. The legal description was taken from the warranty deed in the County Public Records. The gross building area for the former improvements (NROGO entitlements)was referenced from the recent Pro - Rations letter and prior PMLOU. Any deviations from the sizes for each parcel could result in a change in value. If and when, a more detailed survey for the subject property is made available, noting changes in the measurements used in this report, the appraisers reserve the right to change the final value. Any maps or plats reproduced in this report are intended only for the purpose of showing spatial relationships. They are not measured maps, and no responsibility for cartographic or surveying errors is assumed. No responsibility is assumed by us for matters which are of legal nature, nor is any opinion on the title rendered herewith. Good title is assumed as a title search was not made available. The subject property has been appraised as though free of liens and encumbrances, except as herein described. Delinquent charges for solid waste collection, or other liens against the subject property has not been considered in the valuation contained herein as a title search was not made available or conducted by me. The management of the property is assumed to be competent and the ownership in responsible hands. An undated and unsigned survey was provided, however, the presence of encroachments of the previous mobile trailer homes which were subsequently removed, are no longer present. Therefore, it is not possible to verify any easements or encroachments without the benefit of a more recent survey. Valuation is reported without regard to questions on boundaries. No responsibility is taken by this office for the accuracy or in regard to any questions on boundaries, encroachments or dissimilarities in measurements. If an updated survey is made available and any discrepancies are noted due to easements and /or encroachments, we reserve the right to change the final indicated value herein. 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 surveying errors is assumed. The Appraiser herein is not required to give testimony in court unless arrangements have been previously made thereof. Appraisal Company of Key West Page 2 Section I Assumptions and Limitin Conditions 1 = I The Appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structure, which would render it more or less valuable. The Appraiser assumes no responsibility for such conditions, or for engineering which might be required to discover such factors. Information, estimates and opinions furnished to the appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished to the Appraiser can be assumed by the Appraiser. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the Appraiser is affiliated. The undersigned Appraiser has no present or contemplated future interest in the property and the compensation is in no manner contingent upon the value reported. A prior appraisal of the subject property was prepared by this office with an effective date of May 22, 2008 and June 16, 2010. 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. The subject property is vacant, therefore, an internal walk through was not required within the Scope of Work, Section IV. 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 of toxic waste, which may or may not be present on the property, has not been considered. The Appraiser is not qualified to detect such substances. No environmental site assessment reports were made available to the appraiser. Thus, the appraiser is unaware of any environmental concerns. The Americans with Disabilities Act ( "ADA ") became effective January 26, 1992. The appraisers have not made a specific survey or analysis of the subject property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraisers has no direct evidence relating to this issue, possible noncompliance with the requirements ofthe ADA in estimating the value ofthe subject property has not been considered. In the case at hand, the subject properties consist of vacant land. Appraisal Company of Key West Page 3 Section I Assumptions and Limiting Conditions [ _ C 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 Appraiser is affiliated. The subject site is presently vacant and scarified land. 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 appraiser conducting this appraisal is not qualified to detect latent conditions and has 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 appraiser conducting this appraisal, nor the APPRAISAL COMPANY 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. 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. I hereby certify that to the best of my knowledge and belief the statements of fact contained in this report, upon which the analyses, opinions and conclusions expressed herein are based, are true and 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 Appraisal Institute. Appraisal Company of Key West Page 4 Section II Certification of Value II CERTIFICATION OF VALUE WE HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY: Mr. Jerry A. Barnett, Director Project Management Department Monroe County 1100 Simonton Street Key West, Florida 33040 We have personally examined the following described property: COMMONLY KNOWN AS: Former Sun Haven Trailer Park 5671 MacDonald Avenue Subject Property "A" Lot 12, Block 31, Stock Island Maloney Sub., PB -1, PG -55 Subject Propert Lots 13 -15, Block 31, Stock Island Maloney Sub., PB -1, PG -55 Stock Island, Florida 33040 Based on market analysis, visitation and research, it is my opinion that the "As Is " Market Value of the Fee Simple Estate of Subject Property "A ", vacant land with entitlements, commonly known as the former Sun Haven Trailer Park, located at 5 671 MacDonald Avenue, specifically, Lot 12, Block 31, Stock Island Maloney Subdivision Plat Book 1, Page 55, Stock Island, Florida, subject to development rights of the Recent Entitlement Pro - Ration Letter and prior Pre - Application Meeting Letter of Understanding (PMLOU) for 2 ROGO market rate dwelling units, and also subject to the definitions, assumptions and limiting conditions, as of February 1, 2011 is: ONE HUNDRED SEVENTY THOUSAND DOLLARS ($170,000) In addition, Based on market analysis, visitation and research, it is my opinion that the "As Is " Market Value of the Fee Simple Estate of Subject Property "A ", vacant land with entitlements, commonly known as the former Sun Haven Trailer Park, located at 5671 MacDonald Avenue, specifically, Lots 12 Block 31, Stock Island Maloney Subdivision Plat Book 1, Page 55, Stock Island, Florida, subject to development rights ofthe Recent Entitlement Pro - Ration Letter and prior Pre - Application Meeting Letter of Understanding (PMLOU) for 9 ROGO market rate dwelling units, and 2,065 square feet of Appraisal Company of Key West Page 5 Section II Certification of Value commercial floor area exempt fromNROGO, and also subject to the definitions, assumptions and limiting conditions, as of February 1, 2011 is: FIVE HUNDRED FIFTY THOUSAND DOLLARS ($550,000) I ADDITIONALLY CERTIFY that, to the best of my 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 I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. A prior appraisal of the subject property was prepared by this office with an effective date of May 22, 2008 and June 16, 2010. O My engagement in this assignment is not contingent upon developing or reporting predetermined results. O My 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 of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. o My analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. O James E. Wilson has made a personal site visit of the 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 of the 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 of the Appraisal Institute. Appraisal Company of Key West Page 6 Section H Certification of Value = I - I MU I O James E. Wilson has completed the Standards of Professional Practice and Ethics education as required by the appraisal Institute for Associate Members. APPRAISAL COMPANY OF KEY WEST James E. Wilson, MRICS, President St. Cert. Gen. REA License No. RZ 2164 Appraisal Company of Key West Page 7 Section III Summary of Facts and Conclusions MEL III SUMMARY OF FACTS AND CONCLUSIONS Subject Property Address: Property Type: Land Size: Zoning: Flood Zone: Entitlements: Former Sun Haven Trailer Park 5 671 MacDonald Avenue Subject Property "A" Lot 12, Block 31, Stock Island Maloney Sub., PB -1, PG-55 Subject Property "B" Lots 13 -15, Block 31, Stock Island Maloney Sub., PB -1, PG-55 Stock Island, Florida 33040 Vacant Land with Entitlements Subject Properties Descriptions and Parcel Sizes Street Alternate Key Lot Size Lot Size Parcel Addres s Number S . Ft. Acres A Lot 12, Blk. 31 Maloney Sub., PB 1, Page 55 1158585 6,250 0.14 B Lot 1346, Blk. 31 Maloney Sub., PB 1, Page 55 1158593 18 0.43 Totals 25 0.57 Mimed Use (MU), Monroe County FEMA Map 12087C 1528K February 18, 2005, Zone: AE 9. Appraisal Company of Key West Page 8 Section IV APPraisal Process, Purpose, and Intended Use of the Appraisal Fee Simple Value Indications: Site -Visit and Valuation Date: Date of Report: Marketing Time: Reconciliation - Subject Property "A" 5671 MacDonald Avenue, Stock Island, FL Lot 12, Block 31, Stock Island Maloney Subd. PB -1, PG -55 Fee Simple Interest Valuation Method: Market Value Cost Approach Not Applicable Income Approach Not Applicable Sales Comparison Approach $170 "As Is" Market Value of Subject Property "A ", as of 1709000 Fe bruary 1 2011: Rounded : Reconciliation - Subject Property "B" _5671 MacDonald Avenue, Stock Island, FL Lots 13 -I5, Block 31, Stock Island Maloney Subd. PB -1, PG -55 Fee Simple Interest Valuation Method: Market Value Cost Approach Not Applicable Income Approach Not Applicable Sales Comparison Approach $550 "As Is" Marke t Value of Subje ct Prope rty "B ", as of $5509000 February 1, 2011 February 9, 2011 12 to 18 Months for the subject property based on a list price within 5 percent of appraised value and based on stable economic conditions. Exposure Time: 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. Appraisal Company of Key West Page 9 Section IV Appraisal Process, Purpose, and Intended Use of the Appraisal IV SCOPE OF WORK APPRAISAL PROCESS, PURPOSE AND INTENDED USE OF THE APPRAISAL A. The Appraisal Problem 1. Purpose and Intended Use of Appraisal The purpose of this appraisal is to report to you our opinion of the "As Is" Market Value of the Fee Simple Estate of the subject property, Former Sun Haven Trailer Park, 5671 MacDonald Avenue, specifically Lots 12 -15, Block 31, Stock Island Maloney Sub., PB- 1, PG -55, Stock Island, Florida, subject to definitions, assumptions and limiting conditions, as of February 1, 2011. 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 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. In the case at hand, the subject property is not encumbered by an leases. The Fee Simple Estate will be considered within this report, and a Leased Fee Valuation is not applicable. 2. Intended Use of Appraisal The intended use of this appraisal is to provide general information to provide the "As Is" Market Value for Subject Property "A" and "B ". The intended user of the appraisal report is Monroe County, Florida. 3. Property Rights Appraised The Fee Simple Estate valuation is made with the understanding that the present ownership of the property includes all the rights that may lawfully be held under a Fee Simple Estate. These rights are sometimes referred to in appraisal literature as the "bundle of rights." It includes the right to use, keep others from using, sell, rent or otherwise dispose of the property. The Fee Simple Estate is the unencumbered value of the subject property; basically, market rents and terms are considered with no regard to existing leases and 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. Since there are no long -term leases encumbering the subject property, the Fee Simple Estate will be reported herein. The elements which have been included in this appraisal are the subject site (land) with exiting entitlements, as of the effective date of this report. Appraisal Company of Key West Page 10 Section IV Appraisal Process, Purpose, and Intended Use of the Appraisal B. SCOPE OF WORK Appraisal 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 direct 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. 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 Appraiser's office, surveys, building plans and specifications. If possible, 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, in this case not applicable; these descriptions are based on a physical inspection and /or plans and specifications. The appraisers are not contractors or structural engineers; therefore, structure soundness or damage can not be warranted. The appraiser will note any apparent or potential problems such as deferred maintenance, water damage or Spalding. The cost approach consists of combining the estimated value of the land, based on comparable sales, with the depreciated value of the improvements. The vacant land sales are always visited. The cost of the improvements is estimated by utilizing a cost service, Marshall and Swift, plus knowledge of costs to construct obtained from local contractors. Exterior site visits of the comparable improved sales are always made; interior walk through are made when possible. 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 Real Estate Data Inc. (REDI), Realtron, Rapatoni and F1exVILS, LOOPNET.com, computerized MLS (Multiple Listing Systems). These sources use data from the Monroe County Property Appraisers office as well as from the public records. The data is verified and sales are described within this report. Additional data sources include: newspaper clippings and the National Multiple Listing Service. Real estate agents in the market Appraisal Company of Key West Page I I Section IV Appraisal Process, Pur ose, and Intended Use o the A sisal S - - L ] - 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. The reader of the appraisal should be made aware that the valuation contained herein is based on a specific date. The value estimated on the specified valuation date will likely differ from the value one, two or three years in the future or in the past. The reader is advised to review the Assumptions and Limiting Conditions in Section I, as well as, the Certificate of Value in Section II. Appraisal Company of Key West Page 12 Section V Definitions V DEFINITIONS 1. Appraisal is the act or process of developing an opinion value; an opinion of value.' 2. Appraisal Report is the written or oral communication of an appraisal. 3. Cash Equivalency Analysis is a process in which the sale price of a transaction with nonmarket financing or financing with unusual conditions or incentives is converted into a price expresses in terms of cash. 4. Extraction is a method of estimating land value which in the depreciated cost ofthe improvements on the improved property is calculated and deducted from the total price to arrive at an estimated sale price for the land.' 5. Fee Simple Estate is absolute ownership unencumbered by any other interest or estate, subject only to the governmental limitations including: eminent domain, escheat, police power, and taxa- tion. 6. Leased Fee Estate is an ownership interest which the possessory interest has been granted to another party by creation of a contractual landlord- tenant relationship (ie: lease).' 7. Market Value is defined as follows: "The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should well after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. "' 8. Interim Use is the temporary use to which a site or improved property is put until it is ready to be put to its future highest and best use.' Appraisal Company of Key West Page 13 Section VI Identification and History of Subject Propert VI IDENTIFICATION AND HISTORY OF THE SUBJECT PROPERTY A. Location and Address: The subject property consists to four contiguous, scarified lots fronting on the southerly side MacDonald Avenue. The property contains a total of 25,000 square feet with 200 feet fronting on MacDonald Avenue. Former Sun Haven Trailer Park 5 671 MacDonald Avenue Subject Property "A" Lot 12, Block 31, Stock Island Maloney Sub., PB -1, PG-55 Subject Property "B" Lots 13 -15, Block 31, Stock Island Maloney Sub., PB -1, PG-55 Stock Island, Florida 33040 B. Letyal Description: The following legal description for the subject properties were taken from the Agreement for the Purchase of Lands. The subject properties are identified as follows: Subject Property "A ": Block 31, Lot 12, Stock Island Maloney Subdivision Plat Book 1 and Page 55 of the Public Records of Monroe County, Florida. Subject Property "B ": Lots 13, 14, and 15, Block 31, of MacDonald's Plat of Stock Island according to the Plat thereof recorded in Plat Book 1 and Page 55 of the Public Records of Monroe County, Florida. C. Owner of Record: According to the agreement for Purchase of Lands, the Subject Properties are owned by: Subject Property "A" 1) 5671 MacDonald LLC 2) R & S of Key West, Inc. 3) H -Try LLC Subject Property "B" 1) R & S of Key West, Inc. 2) H -Try LLC Appraisal Company of Key West Page 14 Section VI _ Identification and History o Subject Propert I = Z D. Sales History of Subject Property: Per the Monroe County Tax Appraiser's records and Public Records, Lots 9, 13 through 16, 19 and 20 of the subject property was purchased in July 1986 for $760,000. The Grantor (Seller) was Mr. Lloyd E. Breeze and the Grantee (Buyers) was Daniel Hynish, Sloop & Associates. The sale was recorded in Official Record Book 998, Page 2392 inthe Monroe County Public Records. It appears that Mr. Breeze foreclosed on the property and it transferred back to him in April 1991 for $578,000 (possibly an outstanding mortgage amount) and resold it, which was recorded in Official Record Book 1168, page 1213. A sales price of $575,000 was indicated. The Grantor was Lloyd E. Breeze, Et Al. and the Grantee was R & S of Key West, Inc. According to the County Public Records, Record Book 1460, Page 1438, Lot 12 of the subject property was purchased in May 1997 for $40,000 by Mark Rossi and Kit Carson Smith (Grantees) from Waldina A. Gomez, Trustee. This parcel was previously leased (land lease) by the trailer park with the three mobile homes being park- owned. In July 2002, Mr. Mark Rossi assigned his 50% ownership in the subject property to Paulette Rossi, (per a divorce agreement) who subsequently sold her interest to Steven Allen Eid on February 15, 2005 for a reported $65,000. On March 17, 2010, Subject Property "A" (Lot 12) was transferred via a Warranty Deed from Steve Allen Eid Revocable Trust dated April 24, 1992 and Re- Stated February 2011 and Kit Carson Smith (Granters) to H -Try, LLC, 5671 MacDonald, LLC and A & S of Key West, Inc. For $100 and was recorded in Monroe County Public Records Book 2467, Page 1543. In addition, a one -third interest in Subject Property "B" Lots (13 -15), plus Lots 9 and 16 were transferred on the same day from R & S of Key West, Inc. To H -Try, LLC for $100, and recorded in Public Records, Book 2467, page 1547. According to the local MLS (Multiple Listing Service), the Lots9 and 12 -16 were listed for sale for $1, 75 0, 000, then a price reduction to $1,500,000 and has been on the market for 266 days. This listing is still active. This property had been previously listed on 10/19/06 for $2,850,000 for a period of 378 when the listing expired on 10/31/07. It was also listed for sale at $2,250,000 with an expiration date of 3/16/09 and a days on market of 413 days. I was provided copies of Agreement for Purchase of Lands for both subject properties by Mr. Barnett. At the time of the appraisal an sales agreement was made, although the contracts were not signed by any party. Subject Property "A ", Lot 12 Block 31, Stock Island Maloney Subdivision PB -1, PG -55 is being purchased by Monroe County for $168,750. While Subject Property "B ", Lots 13 -15, Block 31, Stock Island Maloney Subdivision, PB -1, PG -5 5 is being purchased by Monroe County for $506,250. A release of unity of tile will be necessary to convey Lots 13, 14, and 15, apart from Lot 16. Appraisal Company of Key West Page 15 Section VI Identification and History of Subject Propert E. History of Subject Property and Operation: The subject parcel is located in a suburban area commonly known as Stock Island, Florida. It is located approximately five miles easterly from Key West, stretching across one bridge from Key West into Stock Island. Stock Island is a residential and commercial area providing the basic of services necessary within a suburban area, surrounded by preserved wetlands and other native vegetation. Being part of the large unincorporated area of the Lower Keys, Stock Island Key offers serves as a bedroom community to Key West businesses. Key West is the tourist destination with the attractions and major shopping areas of the Florida Keys. Stock Island is an area of mixed zoning and uses which provide service employees to the demands and requirements of the Key West and Lower Keys market. The property had been Sun Haven Mobile Trailer Park until December 2006 when all the mobile home units were either sold or razed. The site improvements had included three (3) one - story, residential structures, two (2) two -story residences and 14 mobile trailer homes for a total of 19 units. Subject Property "A" and "B" are a split -out of the former overall Sun Haven property. The subject site dimensions were taken from the undated and unsigned survey, plus from Monroe County Appraiser's Office records. Appraisal Company of Key West Page 16 Section VII VII DEMOGRAPHICS FLORIDA KEYS HISTORY Demographics hics 1538 - Hernando De Soto stops in route to Florida in quest of gold and slaves. 1815 - Granted to Juan Pablo Salas by the Spanish governor of Florida. 1821 - Florida becomes a U.S. territory (ceded from Spain). 1845 - Florida becomes a U.S. state. 1861 - Florida secedes from the Union. 1868 - Spain's new conscription laws result in large Cuban migration. 1898 - Survivors and injured of the USS Maine brought from Havana to Key West. War with Spain declared. 1912 - Overseas Railway completed. 1920 - First international air mail route established. 1921 - Official end of the wrecking era. 1927 - Key West Airport designated first airport of entry in U.S. 1928 - City ofKey West incorporated; Overseas highway and ferry system, Miami to Key West, opened. 1935 - Hurricane destroys railroad service. 1938 - New Overseas Highway opened. 193 9 - U.S. Naval Station re- activated. 1942 - Water line from mainland completed. 1954 - Auto - passenger ferry to Havana established. 1960 - Havana Auto Ferry ceases operation. Appraisal Company of Key West Page 17 Section VII Demographics hics 1962 - Cuban Missile crisis. 1967 - Desalinization plant completed. 1975 - Fort Taylor area turned over to State as park site. 1982 - New Seven Mile Bridge and Lower Keys Bridges completed. 1983 - New water pipeline completed to Florida Keys. 1984 - Completion of Cruise Port. 1986 - Sale of Truman Annex property. 1989 - New Wastewater Treatment Plant on Fleming Key operational. 1990 - Florida Keys Memorial Hospital and Depoo Doctors Memorial Hospital complete a merger. 1992 - Hurricane Andrew hits Homestead and South Miami - Monroe County Spared! 1993 - City of Key West purchases Singleton Properties along Key West Bight for 15.7 Million Dollars. 1995 - Baptist hospital purchases Mariner's hospital, located on Plantation Key, with proposed facilities near mile marker 9 1. 0 on Tavernier. City of Key West begins $13.1 million restoration of the former Truman School for Monroe County Tax Collector's Office, Channel 16 offices and other County facilities. Monroe County Commissioners pass a moratorium on Big Pine Key due to low traffic speeds. 1996 - Monroe County implements a moratorium on Commercial Uses pending a Commercial Rate of Growth Allocation System. 1998 - Moratorium on Big Pine lifted for one quarter, with a 4 -year waiting list for residential building permits. Moratorium placed again due to traffic study. September 25 : Hurricane Georges, Category 2, hits Middle and Lower Florida Keys with the eye traveling directly across Key West. The Department of Community Affairs Division of Emergency Management reports that the hurricane caused more than $329 million in damage in Monroe County. Appraisal Company of Key West Page 18 Section VII Demo rap hics I 2002 - No more market rate permits are available for the City of Key West; therefore, an indefinite moratorium on new, residential housing exists. 2005 - The worst hurricane season on record in the Florida Keys. Hurricane Wilma causes up to 8 foot storm surges in the Lower and Middle Florida Keys, October 25, 2005. 2009 - Sinking of the USS Vandenberg ship off Key West Harbor as a world class diving attraction. 2010 - The Lodging Industry and Tourism show improvement until the BP Deep Horizon Spill in the Gulf of Mexico from April to July. Although Oil did not make land fall, the negative media attention severely disrupted Florida Keys businesses. After the well was capped, tourism returned in the last quarter of 2010. 2011 - The outlook for the Lodging and Tourism is positive in the first few months of 2010. Pre - bookings are strong. However, it appears the commercial and residential real estate markets are still soft, though, the amount of inventory has declined. Appraisal Company of Key West Page 19 Section VII Demo a hits DEMOGRAPHICS In terms of demographic trends taking place in Key West /Stock Island, Florida, the following data has been compiled by from the CCIM Site To Do Business within a 5 mile radius: Zip Code 33040 Estimates: lB,riLit 5671 14121cdorl Ild' Ave Key West, FL 33040 Demographic raphi and Income Profile Prepared Bye: STDBonlinexom Latitude 24,5728 Longitude - 81.7364 Site Type: Radius Radius: 5.75 mile Summery 2000 2007 2012 Population 33,716 33,331 32,725 Households 14,296 14,21 13,958 Families 7,564 7,322 7,035 Average Household Size 2.30 2,29 2.29 Owner Occupied HUs 7,018 7,538 7,425 Renter Occupied HUs 7,278 6,672 5,533 Median Age 39.1 41.4 42.8 Trends:. 2007 - 2012 Annual Rate A State National Population -037% 2.44% 1.22 %0 Households - 0.361% 2,51% 1 -27% Families - 0.8 % 2.24% 1.00 Owner HHs -0.3 2.6% 1.29% Median Household Income 3.62 %fl 3.21% 3.29 2000 2007 2012 Households by Income Number Percent Number Percent Number Percent $15.(}00 2.124 14.5 %a 1,556 10.9% 1,289 9.2% $15,000 - S 24,999 1.719 12.0 % 1,282 9,0% 896 6,4 % 625,060 - S34,999 1,897 112 % 1,378 9,7% 1.081 7.7% $35,000 - S 49.999 2:546 17.710 2,127 15.0% 1, 12.9% $50,000 - S74,999 2,943 20,5 % 3,057 21.5 2,960 21.2°10 7 - S9 1,48 1103% 1 ,804 1 ,7% 1,.784 12-8% $100,4�yJ7,07,0 - 3149.999 1 45 / {} 6.�}��IF 1,774 12.5% 2.358 16. % "I U+,,9,+0 - 199,000 } C,FO 548 3.9% 5,3% �� 200, 000+ g32112- ,380 2 .6% 686 4-8% X 733 1.05 7.6% Median Household Income $42.711 554,966 $65.661 .Average Household lncome $57,444 '375,713 $931,121 Per Capita Income $25.006 532,668 $40,165 000 2007 2012 Population by Age Numbe Percent Number Percent Number Percent 0 - 4 1.668 4.9% 1 , 61 5 4.8% 1 .603 4.9 %0 5-9 4 1 9 5 .0% 1,437 �r 4.3"� 1,308 4.0% 1 1 ,.600 4 -7 %� 1 4,6% 1 -29 8 4.0% 15-19 1,563 4.6% 1,660 5.0% 1,485 4.5 2 0 -24 2.079 6, 2% 2,0 67.e 1 % 2.222 6.8% 25-34 5.564 1 6.8% 5,005 1 5.{)% 4.756 14.6 35-44 6 19.0% 5,431 16.3% 4,819 14.7 % 45 5718 17.0% 5,751 17.3 5,477 16,7% 55- 3,511 10.4 % 4, 774 14.3% 5.053 15.4 %Q 65 2,164 6,4% 2,235 6,7 2.680 8,2 %0 75-84 1,3.09 3.9'% 1,411 4.2 1..422 4-3% 85+ 356 1.1% 481 ! .4% 595 1.8% 20 00 200 �y 2012 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 28,7+46 85.% 27.533 82.6% 26,448 80.c.]% B lame Alone 2.879 8-5% 3,243 9.716 3.41 10.4% American Indian Alone 139 0,4 % 142 Q.4% 140 0,4% Asian Alone 423 1.3% 535 1.6% 607 1 , 9% Pacific Islander Alone 1 9 0 21 0 11% 23 0 .1 % Some Other Race Alone 732 2.2 %Q 964 2.9% 1.126 3.4% Two or More Races 779 2.3% 894 2.7 % 964 2.9 % Hispanic Origin (Any Race) 6,7 20. %n 9,022 27,11 1 0,633 32 Data Note. income is expressed in cunrent dollars So u rce : US Bu reau of the Census. 2000 Census of Popula and H cusing ESR1. forecasts for 200 and 2012. 'e,2007 ESRI On-demand reports and maps from Business Analyst Online. Order at ar tall 800- 292 -2224 512912008 Page "I of 2 Appraisal Company of Key West Page 20 Section VII Demo a hics 111111666" Demo and Income Profile Prepared B STDBonfinexom WN Latitude 24,5728 5671 Macdonald Ave Lon -81,7364 Ke West, FL 33040 Site T Radius Radius: 5.75 mile Trends 2007-2012 cu 4- 3- d) 2.5- CL 2- Area a) 1.5- State 4— M 11— US < Population Households Families Owner HHs Median HH Income Population b A S 1€}010 - 14'9K (12.5%) $75K-9940 (12,7%) $150-199K+ (3 9%) $2000+ (4.8%) $15K (10. 9%) 2 $50K-74K ( 21,6% ) 5115K.S24K (9-0%) $35K-$49K (15.0%) $25K-34K (9,7%) KM07 ESRl On-demand reports and maps from Business Anal Online. Order at www.esr1-coLnj"o or call 800-292=2224 512912008 Pa 2 of 2 Appraisal Compan of Ke West Pa 21 2007 Household Income 2007 Population b Race 2007 Percent Hispanic Ori 27.1 % Section VII Demo yap hics The following average daily two -way traffic data was provided by the State of Florida Department of Transportation: Average Dail] Traffic Count ED.O.1 Station Location 2000 2001 2002 (Both Directions) 2003 2004 2005 2006 2007 2008 2009 48 MacDonald Avenue, Stock Island 10,900 12,000 11,400 11,500 13,500 10,200 9,200 10,000 10,200 9,900 50 CR 941, U.S. Hwy. #1, Big Coppitt 050 2,200 1,950 2,000 3,100 2,000 2,500 2,800 3,000 2,900 201 SR-5/U.S. Hwy. #1, Cow Key Bridge 22,500 42,000 30,000 44,000 41,500 43,500 45,500 38,500 48,500 39,500 165 SR 5/US -1, 2OU E Cow Key Bridge 1 35,4721 37,401 37,478 37,402 37,926 37,1371 36,598 36,080 34,602 35,471 Appraisal Company of Key West Page 22 Section VII Demo a hics I MONROE COUNTY DATA Key West, the Florida Keys and their location "in the sea" are well -known throughout the United States and Canada as the Southernmost Point. The primary attraction for the tourist, second home dwellers or vacationers is the mild, stable climate ranging from an average of 73 degrees in the winter months to an average high of 88.9 degrees in August, the hottest of the summer months. Another important reason why visitors come to the Keys is the beautiful clear waters of the Gulf of Mexico and the Atlantic Ocean, and all their attractions such as: sw diving, yachting, fishing, etc. Monroe County is the southernmost County in the State of Florida. The County is commonly known as the Florida Keys, which are connected by a series of bridges along U. S. Highway No. 1, the only highway providing access to the Keys from the Mainland. Monroe County is known as the most expensive County in the State, whose economic bases are tourism and commercial fishing. The Florida Keys have flourished over the last decade due to rapid growth in tourism, an increasing population (some of which is seasonal), plus growth in the construction industry. The County's population has grown by 23.5% between 1980 and 1990 with a current population of about 78,000. As of the 1990 census, Monroe County was ranked the 34th largest of 67 Florida counties. Approximately 32% of the County's population resides in the City of Key West (mile markers 0 through 5). The County's population is higher during the Winter months (between December and April) due to seasonal residences which inhibit the County. It is estimated that the population increases as much as 50% during this time period. The major labor force in Monroe County is made up primarily of hotel/motel, construction and retail with an unemployment rate estimated at 3.5 %. Commercial fishing remains a large part of the economy with over 3,000 licensed commercial fishing vessels in the County. Monroe County has historically trailed Florida and the United State's unemployment rates over the last decade. However, the County's per capital personal income is only slightly above U.S. national averages. In 1984 the Tourist Development Commission (TDC), which originally began in the City of Key West, was expanded to support tourism in the Florida Keys through national advertising campaigns and cultural events. This organization is divided into five districts and is funded by "bed tax" revenues collected by the State of Florida and refunded to the Monroe County Commission. The County's uncontrolled development has been a concern over the past decades. Monroe County is designated as an "Area of Critical State Concern" by the State of Florida. This designation requires that Monroe County maintain land use plans for development. On February 28, 1986, the Monroe County Board of County Commissioners adopted the Florida Keys' Comprehensive Land Use Plan. On July 29, 1986, the Land Use Plan was approved by the Florida Department of Community Affairs (DCA) and the Administration Commission of the State of Florida. The Land Use Plan severely restricted development of large acreage tracts and environmentally sensitive parcels. The Plan is currently in effect, however, Appraisal Company of Key West Page 23 Section VII Demo ra hits A= 1 a Monroe County Board of County Commissioner's letter dated 6/11/08 petitioned the State for "Removal of Area of Critical Concern ". On July 13, 1992, Monroe County adopted an ordinance (Rate of Growth Ordinance (R.O.G.O.) Dwelling Units Allocation Ordinance) limiting the number of annual building permits that can be issued for construction of new dwelling units. The purpose of the ordinance is to ration the growth of new residential units in a fair manner that implements the goals, objectives and policies of the Florida Keys Comprehensive Plan. The ordinance divides the Florida Keys (Monroe County) into three areas: Lower, Middle, and Upper with Key West not included within these areas. Each area is allocated quarterly building permits (except the City of Key West), of which each area awards these permits on a "quality of application" basis. This system has been very effective as it allows for a pre - determined number of permits. It awards points according to the impact the structure(s) would have on the environment, the utility providers, neighboring uses, and hurricane evacuation plans. Those parcels with the most points are the first to be issued a building permit. At the end of each quarter, the parcels with the least points may not be issued a permit for that quarter, unless all the allocated permits have not been used. It is expected that Monroe County will continue to attract vacationers and visitors due to its tropical location, bordered by the Atlantic Ocean to the southeast and Gulf of Mexico to the northwest. Its accessibility by automobile is an added convenience for tourists due to the relatively inexpensive commute as compared to airplane travel. The Florida Keys geography appeals to a diverse populace. Geographically, the Florida Keys are divided into four (4) groups or neighborhoods: Estimated Neighborhood Boundaries Distance The Upper Keys Long Key to Key Largo 50 miles The Middle Keys 7 Mile Bridge to Long Key 23 miles The Lower Keys Key West to 7 Mile Bridge 36 miles The City of Key West 5 miles A "neighborhood" some 20 miles in length may seem unbelievable to someone from an urban area; however, when this neighborhood is usually only a few hundred yards wide, it becomes plausible. The fact is that all activity and movement seems to flow along Overseas Highway (U.S. # 1) which is the main connector of this island chain and it's center - roadway. Along U. S. 1, one will find small green signs with white numbers, these are called mile markers (MM). The mile markers begin with mile marker 126 just southwesterly of Florida City and end with MM 0 on the corner of Fleming and Whitehead Streets in the City of Key West. Each of the sections in the Keys has its distinct features: each section engenders its own loyalties and neighborhood pride. High School rivalries and political competitions are intense. Appraisal Company of Key West Page 24 Section VII Demo �a hics A closer look at these four "neighborhoods" follows. THE UPPER KEYS The three (3) principal communities of the Upper Keys are Key Largo, Tavernier, and Islamorada. Key Largo is the largest Key, approximately two (2) miles wide and almost thirty (30) miles long, and is the most developed with new condominiums, camping and trailer parts, marinas, motels, shopping center and resorts. Being so close to Miami, the Upper Keys are the perfect weekend resort area with fishing, boating, sw State Parks and tourist attractions in abundance. The Upper Keys is an almost continuous band of development or committed development area along the Overseas Highway (U.S. # 1). The Upper Keys has reflected more growth and new housing unit construction in the last decade than any of the other areas of the Florida Keys; this is probably best attributed to its proximity to the Miami -Fort Lauderdale -Palm Beach Metropolis, as the Upper Keys are an ideal weekend retreat. Despite the ever increasing numbers of people and buildings, the Upper Keys are essentially water - oriented resort communities which abound in power boats, sailboats, and yachts of all sizes and descriptions and which seem to be inhabited solely by fishermen, divers, charter boat skippers, and sailors. These inhabitants can be found in marinas, dive shops, boatyards, bars, and restaurants. Public schools in the area include kindergarten through twelfth grade at Key Largo Elementary School, Plantation Key School, and Coral Shores High School, plus classes offered locally by Florida Keys Community College. Recreation in the area includes: the Islamorada City Park, John Pennecamp State Park, Indian Key State Historic Site, plus many marinas, beaches, and other water sports locations. Police protection is provided by the Monroe County Sheriffs Department and the Florida Highway Patrol. Fire protection is provided by a volunteer fire department. A new, state -of -the -art Mariner's Hospital was recently constructed in Tavernier at Mile Marker 91.5 with frontage along the Overseas Highway. The new hospital was opened in early 1999 and encompasses 34 medical/surgical beds, plus an 8 bed intensive care unit and 71,000 square feet of gross building area. The new hospital replaces the old facility at mile marker 90.5 on High Point Road in Plantation Key and was built in order to expand services. The old hospital is proposed to be purchased by the Monroe County Sheriff s office and the Monroe County Health Department. The Plantation Key Convalescent Center lies adjacent northeasterly to the old hospital and contains 23,493 square feet of gross building area and 60 rooms, according to the Monroe County Tax Appraiser's records. The Plantation Key Government Center is located just southeasterly from the old hospital with frontage on High Point Road and U.S. Highway No. 1. This public use complex consists of 4.78 acres improved with seven buildings with a total gross building area of 40,186 square feet housing the County Courthouse, Senior Citizen Services, Social Services, Tax Collector, Property Appraiser, Building /Zoning Departments, County Jail, Courtroom Facility, and the Children's Shelter. This area has become a hub of public services. Appraisal Company of Key West Page 25 Section VII Demo yap hics I i Iff 1W ii6�� County wide incorporation efforts have been at the forefront of current politics. The recent incorporation of Islamorada, Village of Islands, and the incorporation of the City of Marathon has been spurred by the residents of these communities and their disillusionment with the County government. The Key Largo referendum to incorporate in November, 1999 failed, while Lower Key neighborhoods seeking incorporation have also discontinued interest. Yet, with all of this, there exists in the Upper Keys market area a very solid core of permanent, service, and professional citizens. The population of the Upper Keys is estimated to be slightly over 22,000. UPPER KEYS MAP Appraisal Company of Key West Page 26 Section VII Demo a hics � I THE MIDDLE KEYS The main communities of the Middle Keys are Marathon, Marathon Shores and Key Colony Beach which adjoin like one metropolis with a population of over 20,000, second only to Key West. Marathon lies 90 miles from the mainland and 48 miles from Key West. Marathon has its own 5,200 foot airstrip, the multi - million dollar Sombrero County Club and 18 -hole championship golf course, and yacht basins, with the famous, unique Seven Mile Bridge just southwesterly of Marathon. Duck Key, with the Hawk's Cay Resort complex including a marina basin, 9 -hole golf course, bars, restaurants and a convention hall, is also in the eastern Middle Keys. Duck Key is also building up with a number of custom designed, luxury quality residences, with typical prices from $200,000 to well in excess of $500,000. Key Colony Beach, which is one of the three Florida Keys incorporated cities outside of Key West, is situated adjacent to Marathon. A referendum for the incorporation of Marathon has just passed in November, 1999. This separate island boasts of some of the most beautiful sand beach shoreline in the county, along with a public golf course. Most of the population density is in the immediate area of Marathon. Single family home construction moves along at a brisk pace in the area and condominium projects seem to be more active here than in the Upper Keys with a price range from $200,000 to $350,000 for individual units. The Middle Keys is also home to several large resort - marinas, many of which have been subjected to redevelopment, such as the Faro Blanco Resort, with harbors that show evidence of million dollar yachts tied to their docks. Public Schools in the area are located close by, including kindergarten through twelfth grade: Sugarloaf Elementary and Middle School; Sue M. Moore Elementary, and Marathon High School. Currently, police protection is provided by the Monroe County Sheriffs Department and the Florida Highway Patrol. Fire protection is provided by fire departments manned by volunteers from the area. A full service medical and surgical hospital with 58 beds, Fisherman's Hospital, provides medical services locally. Appraisal Company of Key West Page 2 7 Section VII MIDDLE KEYS MAP Demo ra hics Appraisal Company of Key West Page 28 Section VII Demo a hics THE LOWER KEYS The Lower Keys begin at Ohio Key near Bahia Honda Key just west of the Seven Mile Bridge and extend to Key West; they enjoy superb fishing from boat, bridge, or surf, shelling and sandy beaches, or ex- ploring pine forests from campsites and trailer parks. Big Pine Key is the largest of the Lower Keys and No Name Key attaches to Big Pine Key, both providing refuge for the small Key Deer which are endangered and protected. Development on the big scale apparently passed up this area; the population of the entire area excluding Key West is probably less than 5,000 with some living in areas so remote that census takers could have missed them; the Lower Keys are strictly single family residential with minimal evidence of major condominium developments and probably only three major motels, the Looe Key Resort on Ramrod Key, the Big Pine Motel and the Sugarloaf Lodge. The most notable new major commercial construction in the area is the Big Pine Shopping Plaza. Many of the residential roads in the area remain unpaved, exactly the way the "locals" want them, in order to retard development as much as possible. The Lower Keys are also home to "Fat Albert ", the huge spy blimp based on Cudjoe Key keeping an electronic eye on Cuba and drug traffickers. Boca Chica Key hosts the U.S. Naval Air Station. Development is controlled in this area due to the purchase of large tracts of land by the Federal government, and will continue to be limited due to the recent enactment and implementation of the Monroe County Land Usage /Growth Management Plan. The total population of the area including Key West is fewer than 25,000 in the off - season, and does not include those who are remotely situated in the area. As a whole, the Lower Keys are mainly single - family residential, with minor evidence of property and condominium development, namely the Shark Key development and the sales of Porpoise Point condominiums on Stock Island Key. Several large hotels and resort complexes are evident in Key West: Wyndam Casa Marina, The Reach, The Pier House, Ocean Key House, Crowne Plaza La Concha, Hyatt Front Street, Hilton Resort and many smaller ocean and beach front hotels and motels in the area. Key West itself is only two miles wide and five miles long. Public and private efforts have accomplished extensive restoration in the old section of Key West with a collection of Bahamian and Victorian frame homes with gingerbread balconies, captain's walks, and tin roofs. Key West boasts an artistic heritage of many famous artists and writers from Audubon to Hemingway and Tennessee Williams. Additionally, several United States Presidents made this their winter resort. Through the course of many years, the Island has developed a military presence with the ancient Spanish forts, old Fort Zachary Taylor, the old Naval submarine base (Truman Annex) and the Naval Air Station at Boca Chica. Appraisal Company of Key West Page 29 Section VII Demo �a hics RNEEIrr- IF t t l :A Fully detailed commentary on the City of Key West, the County seat, has been excluded because it becomes a complete story unto itself. Suffice it to say, Key West is the Southernmost City in the Continental United States, one the oldest, most unique and remarkable cities in the United States. A county -wide transient ordinance was passed in 1998 with much debate. Transient rentals of single family homes are no longer permitted within the County. The Big Pine market area has been greatly adversely affected by the ordinance with a 30 percent decline in bed tax revenues and the closing of seven local business, due to the decrease in tourists in the immediate area. Big Pine has only one motel; thus, the lack of transient rentals in the residential subdivisions has moved the eco- tourists to other Keys. THE LOWER KEYS MAP Appraisal Company of Key West Page 30 Section VII Demo �a hics IN MARKET AREA (NEIGHBORHOOD) ANALYSIS Stock Island, an unincorporated community, located less than one mile northeast of the island of Key West, is surrounded by water and bisected by U. S. Highway 1 and is separated from the City of Key West by Cow Key Channel. The southerly half of Stock Island has developed into an industrial center and affordable housing hub servicing the Key West area. The south side of Stock Island, which is divided from the north side by U.S. Highway No. 1, is developed with many Trailer Park parks and subdivisions, as well as single and multi - family residential areas. It is also the center of the local fishing industry, with other industrial, commercial business and residential rental uses as well. This is an area of mixed zoning and uses, which services the demands and requirements of the Key West market. The north side is inundated with County offices and structures including the public health unit, County offices, County Jail, the public hospital and convalescent center, Florida Keys Community College, Tennessee Williams Performing Arts Center, Gerald Adams Elementary School, the Key West land fill and recycling center, a privately -owned nursing home, botanical gardens, a privately -owned 18 -hole golf course which is surrounded by a 390 -unit planned unit development including town homes and bungalows, plus the American Legion quarters. The north side of the Island is considered to be within City of Key West boundaries and is taxed as such. The subject neighborhood can be described as being bordered on the north by U.S. Highway No. 1, the main artery through the Florida Keys, with the Atlantic Ocean to the south, Cow Key Channel to the west and Boca Chica Channel to the east. The highway divides Stock Island in half, with the subject property located on the southerly half. The sale of Norman's Island, adjacent to the city land fill, to Monroe County included a proposal for building a county jail which was built a few years ago. It has relieved concerns of overcrowding in the downtown j ailhouse. A new Sheriff s Department building was also recently completed on the site. The City land fill/solid waste transfer station is located across the road from the new townhouse project; at present there is a transfer station for the disposal of refuse from the City of Key West. Sunset Marina was purchased and developed with 60 waterfront condominium units and an upgraded marina facility, containing 163 boat slips, which are being sold as dockominiums (condominium ownership). Another condominium project is located approximately one -half mile southeasterly from the subject property as Oceanside Marina. These units were built as an annex to the dockominiums and existing marina operation. The most recent project is the former Peninsular Marina that was razed and redeveloped into Key West Harbor Club, Yacht Clubs of America 376 rackominiums and 100 dockominiums plus club house and interval ownership units. Furthermore, the docks and upland area surrounding Safe Harbor Channel are being totally redeveloped. These recent redevelopment projects are expected to enhance and revive the Stock Island neighborhood with more upscale projects. In summary, the subject property is located in a commercial and residentially zoned neighborhood that had, until 2006, seen an increase in desirability and property values due to the scarcity of developable land Appraisal Company of Key West Page 31 Section VII Demo a hics t I - [ in the county and housing pressures from the Key West labor market. The surrounding structures are generally well - maintained. The automobile traffic to and from established neighboring businesses and residential areas, provides good exposure to the area. The residential and commercial real estate market have experienced a 20% to 60% decline since the market peak of late 2006. Once the national economic downturn recovers, we anticipate continued improvement in the general quality of the neighborhood, particularly with the renewed demand for both commercial and residential properties. SUBJECT PROPERTY AND MARKETABILITY ANALYSIS Subject Location Analysis: The property is accessed from MacDonald Avenue. MacDonald Avenue forms a Y- connection with Maloney Avenue is a main thoroughfare for local residents of Stock Island and serves as the island's local shopping and service area. MacDonald Avenue connects Westerly to 3" Street which intersects northerly with U. S. Highway No. 1, the only highway leading to mainland Florida. The subject property has easy access with established residential and commercial neighbors. General Economic Conditions Over the two years, after a last decade of increased travel, tourism has declined due to the most recent recessionary period. The Florida Keys have been the perfect destination in Caribbean travel; they offer all of the comforts and luxuries of the mainland, yet have that natural tropical island flare enhanced by the privacy, amenities and special tropical settings that are sought after by vacationers. The Florida Keys are typically the last to be impacted by financial downturns and the first to rebound. Early indicators from the recent Chamber of Commerce "Chamber Chowder" show an increase of 12% in airline passengers during the eleven months ending April 2010 compared to same period 2009. The traditional tourists visiting the Florida Keys throughout the years had stimulated a demand for second home dwellings and relocation of primary dwellers for the permanent residence. According to the Monroe County Tourist Development Council, there are typically an excess of about three million over night visitors annually in the Florida Keys. These visitors indicated an average family income of $60,000. Tourism has been a strong economic base for the Florida Keys, especially due to the year -round tropical climate. General economic conditions for the Florida Keys have decreased less than the mainland Florida. The Florida Keys will be in a favorable position when the economic turndown begins the recovery due to the demand for the tropical climate, accessibility and water sports which the County has to offer. The Florida Keys have flourished over the past decade with tourism developing as the County's primary economic base. The Florida Keys, is the perfect alternative to Caribbean travel; it offers all of the comforts and luxuries of the mainland, yet privacy, full marina facilities, amenities and a tropical setting for vacationers. The County has had tremendous success with its advertising efforts and attraction of tourists of all Nationalities. Lodging facilities in Monroe County have flourished over the past decade. The success of these operations is well - demonstrated in the sale /resales of hotels, as well as in the Appraisal Company of Key West Page 32 Section VII Demo ra hits ]a JW T increased seasonal trend noted in the 1990's. In the 1980's, the County's "season ", time of obtaining the highest average daily rates and occupancies was between mid- December and mid- April. A review of the TDC, Tourist Development Council's, records indicate that this "season" has slightly shifted and expanded to include the summer months (January through August). A large portion of this shift has resulted from the marketing efforts of the Tourist Development Council and additional annual events, as well as the deflated dollar abroad, stimulating travel within the United States. Recent 2008 Monroe County demographic indicators reveal that the age brackets have shifted from less numbers of the 0 -19, 20 -34 and 35 -44 age group to slightly higher numbers of 45 -54 age group, stable numbers of 75+ with the greatest growth in the 55 -65 age group. The report indicated that the median age has risen 9.4 years over the past 17 years. Monroe County has ranked No. 1 in the State of Florida in terms of occupancy and average daily rate over the past few years. In fact, County -wide Bed Tax collections have increased by 56.37% between 1996 ($8,780,702.97) and 2006 ($13,730,589.28). County -wide Bed tax collections have averaged 7.6% per annum increases from Fiscal Year (October to November) 1996 to 2006; however, October, 2005 to September, 2006 indicates a 2.1 % decline below the same time period of the prior year due to the impact of Hurricane Wilma on October 24, 2005. The City of Key West Bed Tax collections have increased by 14.25% between 2002 ($6,279,396.05) and 2006 ($7,174,325.53) including the impact of Hurricane Wilma, which caused a 2005 -2006 decrease in revenue of 4.2 %. Currently, Hospitality Bed - Tax collections are up by 9.4% for the month of April, 2010 over the same period in 2009. However, a fourth cent tax was added in June 2009. Currently there are just over 12,000 transient units within Monroe County. The City of Key West contains about one -third of the units. Monroe County's Rate of Growth Ordinance, which was implemented in 1992, has limited residential development in the Florida Keys. The Unit Allocation Ordinance which limits the number of new residential units has resulted in phasing -in of developments. This rate of growth ordinance has curtailed commercial transient unit development. Second home dwellers and residents make -up a large portion of the population; this market sector demands goods and services, especially recreational boating and fishing services, which the subject property offers. The former commercial fishing industry, which was formerly the County's economic base has slowly dwindled with the emergence of tourism as the primary economic base. This trend is expected to continue, as more governmental regulations will result in a continued decline in the commercial fishing industry. IMPLEMENTATION OF RESIDENTIAL R.O.G.O. (Residential) The Rate of Growth Ordinance (R.O.G.O.) Dwelling Units Allocation Ordinance was adopted February 28, 1992. It has had a tremendous impact on the reduction of residential development especially recently, with the exception of the Middle Keys, which have seen only stable growth. Since the adoption of the "R.O.G.O." Allocation System, demand for vacant residentially zoned land without building permits and /or vested rights have diminished because building permits are difficult and timely to obtain. The Appraisal Company of Key West Page 33 Section VII _ Demo a hics I ordinance divides the Florida Keys (Monroe County) into three areas: Lower, Middle, and Upper. Each area is allocated quarterly building permits. These permits are awarded on a "quality of application" basis. This system has been very effective as it allows for a pre - determined number of residential building permits. It awards points according to site characteristics, the impact the structure(s) would have on the environment, the utility providers, neighboring uses, and hurricane evacuation plans. Parcels with the most points are the first to be issued a building permit. At the end of each quarter, the parcels with the least points may not be issued a permit for that quarter, unless all of the allocated permits have not been used. Marathon and the Middle Keys do not appear to have been negatively affected by the R. O. G. O. system to date; however, as growth continues, the market is expected to adjust accordingly. Appraisal Company of Key West Page 34 Section VII FMW IMPLEMENTATION OF COMMERCIAL R.O.G.O. & COMMERCIAL BUILDING MORATORIUM Demo �a hics Sales of vacant, commercially zoned parcels within the Florida Keys have dwindled over the past few years due to a commercial building moratorium which exists. According to Ms. Antonia Gerli, Monroe County Planning department, the county adopted a commercial R.O.G.O. (Rate of Growth Ordinance) on January 4, 1996. This system will be similar to the residential R.O.G.O. system in that it awards building permits based on a point system. According to Ms. Gerli, the plan was approved; however, the impetus for the formula computation of the amount of development (square feet) had not been finalized. The present moratorium was enacted in order to provide the county with sufficient time to finalize the guidelines of the commercial R.O.G.O. system. Ms. Gerli stated that an independent study of existing commercial -use structures would need to be performed in order to determine the existing character (ratio of residential to commercial square footage of existing building). The resulting ratio could then provide a base "character" from which to assess a reasonable amount of allowable square footage to be awarded on an annual basis in each fiscal year. Property owners wishing to develop commercial parcels would be required to submit an application and be entered into the pool of applicants. The system presently lacks a form of "relief," or maximum time period in which a land owner would be required to wait for a commercial building permit. The residential R.O.G.O. system allows for a four -year time period, after which the county must purchase the vacant land at market value or award a permit. According to Mr. Ken Metcalfe, Community Program Administrator, with the Florida Department of Community Affairs, the county's commercial R.O.G.O. methodology and plan have been approved and went into effect as of January 1996; therefore, once the formula for allowable growth is finalized by Monroe County Growth Management, the commercial R.O.G.O. could go into effect immediately. The proposed Non - residential Rate of Growth Ordinance (N.R.O.G.O.) was enacted with an effective date of January 1, 2002, after which it was immediately appealed. It does provide for Administrative Relief in the event that the applicant is not successful in obtaining an allocation award, a permit, within at least three of four consecutive annual allocation periods. The remedies for relief is to grant the applicant an allocation award, offer to purchase the property, or suggest such other relief as may be necessary and appropriate. The NROGO system is now in effect; however, there is only a small amount of commercial square footage permitted annually for new construction. Thus, new commercial construction is still very limited in Monroe County. Supply and Demand Analysis for the Subject Property: Monroe County is currently under a Non- Residential(Commercial) ROGO unit allocation system, similar to the existing point system for residential properties with a limited number of permits issued per year on a quarterly basis, for commercial properties. Therefore, new construction is greatly restricted; however, the lack of available developable vacant land is also resulting in restriction of new construction. Either Appraisal Company of Key West Page 35 Section VII Demo ra hics All W way, it appears that the value of existing improved properties should increase upon the turnaround of the local and national economic conditions. There has been a relatively inactive market for development properties in the Florida Keys, as six (6) recent commercial listings within 15 miles of the subject property, have expired. These mobile park listings were not considered truly comparable to the subject; however, they were utilized to provide a sampling of offerings within the market. There were no active, vacant land listings that are truly similar in size, potential use and amenities to the subject property. The subject property had historically been operated as a mobile trailer park. Conclusion: Based on the general national economic environment, it is our opinion that the declining real estate values for commercial and residential properties will continue, but at a reduced rate. Stabilization is forecasted in the near future, unless the national recovery takes longer than expected. A fluctuating stock market over the past couple of years with again, rising fuel prices, the financial crisis, and the war on terrorism has spurred concerns of an extended recession. The Florida Keys was greatly effected by the 2005 hurricane season, especially Hurricane Wilma, October 2005, which flooded many areas of the Florida Keys. Subsequently, the residential real estate market has declined by 30% to 60% with a dramatic increase in supply of listings with limited buyers. The commercial real estate market has also recently declined with similar experiences with few buyers and limited financial resources. Exposure Time According to the Dictionary of Real Estate Appraisal, Fifth Edition 2009, Page 73, the Exposure Time is: "The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis ofpast events assuming a competitive and open market . " Appraisal Company of Key West Page 36 Listings of Mobile Home & RV Parks MLS Asking No. Lic. Price/ Land Price/ No. Pro pe rt Name Key Price Units Unit Area DOM S . Ft. Description Zoning Status Vacant Tract, 46 109337 5455 MacDonald Ave Stock Island $5,500,000 51 $107,843 105,415 631 $52.17 Market Rate Pert URM Active Active MHP, 2500 Loopnet 5324 3rd Avenue Stock Island $2,600,000 16 $162,500 52,272, NA $49.74 Comm. Shop URM Active Active MHP, Vacant Loopnet 5100 -5180 Suncrest Rd Stock Island $995,000 6 $165,833 9,120 NA $109.10 Lot, Pool URM Active 112697 6529 Maloney Avenue Stock Island i $2,500,000 14 $178,571 24,500 91 $102.04 Active NH Park URM -L Active i MH Park with Martna- 544386 453 11th Street Marathon $2,950,000 8 $368,750 62,527- 865 $47.18 8 Residential Units URM Active 1 RV Park, 9 Motel Units 543887 56151 Overseas Highway Gassy Key $12,500,000 95 $131,579 207,7811 547 $60.16 & Mangers Apt. RV Active Mean $4,507,500 32 $185,846 76,936 534 $70.07 Median $2,775,000 15 $164,167 57,400 589 $56.17 Mitlimiun $995,000 6 $107,843 9,120 91 $47.18 6/16/2010 Maximilm $12,500,000 95 $368,750 207,781 865 $109.10 Conclusion: Based on the general national economic environment, it is our opinion that the declining real estate values for commercial and residential properties will continue, but at a reduced rate. Stabilization is forecasted in the near future, unless the national recovery takes longer than expected. A fluctuating stock market over the past couple of years with again, rising fuel prices, the financial crisis, and the war on terrorism has spurred concerns of an extended recession. The Florida Keys was greatly effected by the 2005 hurricane season, especially Hurricane Wilma, October 2005, which flooded many areas of the Florida Keys. Subsequently, the residential real estate market has declined by 30% to 60% with a dramatic increase in supply of listings with limited buyers. The commercial real estate market has also recently declined with similar experiences with few buyers and limited financial resources. Exposure Time According to the Dictionary of Real Estate Appraisal, Fifth Edition 2009, Page 73, the Exposure Time is: "The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis ofpast events assuming a competitive and open market . " Appraisal Company of Key West Page 36 Section VII Demo yap hics I IML::::L I S Therefore, based on market conditions, the subject property's "As Is" exposure time would have been most likely 12 to 18 months if listed within 5.0 percent of the appraised value. Marketin Time According to the Dictionary of Real Estate Appraisal, Fifth Edition 2009, Page 121, "An opinion of the amount of time it might take to sell an interest in real or personal property interest at the concluded market value during the period immediately after the effective date of the appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of the appraisal." As previously discussed, due to the limitations of ROGO, has resulted in a demand for existing properties with entitlements. As the recovery begins to take place, demand should increase. Therefore, we have estimated that the subject property could be sold within a 12 to 18 month time period, if listed within 5% of the appraised value. Appraisal Company of Key West Page 3 7 Section VIII Site Data and Analysis VIII SITE DATA AND ANALYSIS A. Site Analysis The subject property is an "L" shaped which consists to four contiguous scarified lots fronting on the southerly side MacDonald Avenue, plus one contiguous lot fronting on Laurel Avenue. The property contains a total of 25,000 square feet with 200 feet fronting on MacDonald Avenue. Each lot is 50 feet wide by 125 feet in depth with a site area of 6,250 square feet. The total site area for the subject property was taken from the Monroe County Property Appraiser's Record and confirmed with our calculations. A survey was provided without a legal description; however, the date and preparer are unknown. The legal description was taken from the warranty deed in the Public Records. The gross building areas for the improvements was referenced from the PMLOU. Any deviations from the sizes for each parcel could result in a change in value. If and when, a more detailed survey for the subject property is made available, noting changes in the measurements used in this report, the appraisers reserve the right to change the final value. Any maps or plats reproduced in this report are intended only for the purpose of showing spatial relationships. They are not measured maps, and no responsibility for cartographic or surveying errors is assumed. The following table describes each of the subject property parcels. Subject Property Total Upland Site Size:........... 25,000 square feet or 0.57 acres. B. TT ray: Although a soil engineering report was not made available to us, it appears that the site and most of the properties in the immediate neighborhood show no signs of any subsurface instability. The subject sites are generally level and slightly above street grade, with adequate drainage sloping towards MacDonald Avenue. Appraisal Company of Key West Page 38 Subject Properties Descriptions and Parcel Sizes Street Alternate Key Lot Size Lot Size Parcel Address Number S q. Ft. Acres A Lot 12, Blk. 31 Maloney Sub., PB 1, Page 55 1158585 6,250 0.14 B Lot 13 -16, Blk. 31 Maloney Sub., PB 1, Page 55 1158593 18,750 0.43 Totals 25 0.57 Subject Property Total Upland Site Size:........... 25,000 square feet or 0.57 acres. B. TT ray: Although a soil engineering report was not made available to us, it appears that the site and most of the properties in the immediate neighborhood show no signs of any subsurface instability. The subject sites are generally level and slightly above street grade, with adequate drainage sloping towards MacDonald Avenue. Appraisal Company of Key West Page 38 Section VIII Site Data and Analysis Flnnrl 7.nne- The site is located within a Special Flood Hazard Area, Zone AE with a base flood elevation of 9 feet, as designated by the Federal Emergency Management Agency (FEMA), Flood Insurance Rate Maps of Monroe County, Florida, Stock Island, Map Number 12087C 1528K, dated February 18, 2005. Monroe County participates in a National Flood Insurance Program and is covered by a regular program. C. Utilities: Municipal services available and currently serving the property include electricity and water. Additional utility services including: telephone, cable television and LP bottled gas are available with the private sector. Recently, sewer service has been provided through the Key West Resort Utilities. All utilities appeared to be adequate and typical for the area and use. D. Zonin : The current zoning district for the subject Lots 12 -15 have been recently re -zoned as MU, a Mixed Use District, which is characterized by Commercial, Retail (low to medium density and less than 2,500 square feet of floor area), Detached Residential Dwelling, Institutional Residences, Recreational Uses (Bowling, Tennis, Theaters, Health Clubs, Swimming Pools), Fishing and Manufacture ofFishing Equipment, "Stealth wireless Communications Facilities," and Wastewater Reduction Systems. Mixed -Use District (MU). 1. (a) The following uses are permitted as of right in the mixed use district: (1) Detached residential dwellings; (2) Commercial retail, low- and medium - intensity and office uses, or any combination thereof of less than 2,500 square feet of floor area; (3) Institutional residential uses, involving less than ten dwelling units or rooms; (4) Commercial apartments involving less than six dwelling units, but tourist housing use, including vacation rental use, of commercial apartments is prohibited; (5) Commercial recreational uses limited to: a. Bowling alleys; b. Tennis and racquet ball courts; c. Miniature golf and driving ranges; d. Theaters; e. Health clubs; and £ Swimming pools; (6) Commercial fishing; (7) Manufacture, assembly, repair, maintenance and storage of traps, nets and other fishing equipment; (8) Institutional uses and accessory residential uses involving less than ten dwelling units or rooms; (9) Public buildings and uses; (10) Home occupations Special use permit required; (11) Community parks; Appraisal Company of Key West Page 39 Section VIII Site Data and Analysis I (12) Accessory uses; (13) Vacation rental use of detached dwelling units is permitted if a special vacation rental permit is obtained under the regulations established in section 134 -1; (14) Replacement of an existing antenna - supporting structure pursuant to section 146 -5(2); (15) Collocations on existing antenna - supporting structures, pursuant to section 146 -5(3); (16) Attached wireless communications facilities, as accessory uses, pursuant to section 146 -5(4); (17) Stealth wireless communications facilities, as accessory uses, pursuant to section 146 -5(5); (18) Satellite earth stations less than two meters in diameter, as accessory uses, pursuant to section 146 -5(6); (19) Attached and unattached residential dwellings involving less than six units, designated as employee housing as provided for in section 130-161; and (20) Wastewater nutrient reduction cluster systems that serve less than ten residences. (b) The following uses are permitted as minor conditional uses in the mixed use district, subject to the standards and procedures set forth in chapter 110, article III: (1) Attached residential dwelling units, provided that: a. The total number of units does not exceed four; and b. The structures are designed and located so that they are visually compatible with established residential development within 250 feet of the parcel proposed for development; (2) Commercial recreational uses, provided that: a. The parcel of land proposed for development does not exceed five acres; b. The parcel proposed for development is separated from any established residential use by a class C bufferyard; and c. All outside lighting is designed and located so that light does not shine directly on any established residential use; (3) Commercial retail, low- and medium - intensity and office uses or any combination thereof of greater than 2,500 but less than 10,000 square feet of floor area, provided that access to U.S. 1 by way of: a. An existing curb cut; b. A signalized intersection; or c. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; (4) Commercial retail, high- intensity uses, and office uses or any combination thereof of less than 2,500 square feet of floor area, provided that access to U.S. 1 is by way of: a. An existing curb cut; b. A signalized intersection; or c. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; (5) Commercial apartments involving six to 18 dwelling units, provided that: a. The hours of operation of the commercial uses are compatible with residential uses; b. Access to U.S. 1 is by way of: 1. An existing curb cut; 2. A signalized intersection; or 3. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; c. Tourist housing uses, including vacation rental uses, of commercial apartments are prohibited; (6) Institutional residential uses involving ten or more dwelling units or rooms, providing that: a. The use is compatible with land use established in the immediate vicinity of the parcel proposed for development; Appraisal Company of Key West Page 40 Section VIII M b. Access to U.S. 1 is by way of: 1. An existing curb cut; 2. A signalized intersection; or Site Data and Analysis 3. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; c. Tourist housing uses, including vacation rental use, of institutional residential dwelling units is prohibited; (7) Hotels of fewer than 50 rooms, provided that: a. The use is compatible with established land uses in the immediate vicinity; and b. One or more of the following amenities is available to guests: 1. Swimming pool; 2. Marina; and 3. Tennis courts; (8) Campgrounds, provided that: a. The parcel proposed for development has an area of at least five acres; b. The operator of the campground is the holder of a valid county business license; c. If the use involves the sale of goods and services, other than the rental of camping sites or recreational vehicle parking spaces, such use does not exceed 1,000 square feet and is designed to serve the needs of the campground; and d. The parcel proposed for development is separated from all adjacent parcels of land by at least a class C bufferyard; (9) Light industrial uses, provided that: a. The parcel proposed for development is less than two acres; b. The parcel proposed for development is separated from any established residential use by at least a class C bufferyard; and c. All outside storage areas are screened from adjacent uses by a solid fence, wall or hedge at least six feet in height; (10) Parks and community parks; (11) Satellite earth stations greater than or equal to two meters in diameter, as accessory uses, pursuant to section 146- 5 (6); and (12) Attached and unattached residential dwellings involving six to 18 units, designated as employee housing as provided for in section 130-161. c. The following uses are permitted as major conditional uses in the mixed use district subject to the standards and procedures set forth in chapter 110, article III: (1) Commercial retail, low- and medium - intensity uses, and office uses or any combination thereof of greater than 10,000 square feet in floor area, provided that access to U.S. 1 is by way of a. An existing curb cut; b. A signalized intersection; or c. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; (2) Commercial retail, high- intensity uses, and office uses or any combination thereof of greater than 2,500 square feet in floor area, provided that access to U.S. 1 is by way of: a. An existing curb cut; b. A signalized intersection; or c. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; (3) Attached residential dwelling units, provided that: Appraisal Company of Key West Page 41 Section VIII Site Data and Analysis a. The structures are designed and located so that they are visually compatible with established residential development within 250 feet of the parcel proposed for development; and b. The parcel proposed for development is separated from any established residential use by a class C bufferyard; (4) Marinas, provided that: a. The parcel proposed for development has access to water at least four feet below mean sea level at mean low tide; b. The sale of goods and services is limited to fuel, food, boating, diving and sport fishing products; c. All outside storage areas are screened from adjacent uses by a solid fence, wall or hedge at least six feet in height; and d. Each nonwaterside perimeter setback of the parcel proposed for development must have a class C bufferyard within a side yard setback of ten feet; (5) Hotels providing 50 or more rooms, provided that: a. The hotel has restaurant facilities on or adjacent to the premises; b. Access to U.S. 1 is by way of: 1. An existing curb cut; 2. A signalized intersection; or 3. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; c. The parcel proposed for development is separated from any established residential use by a class C bufferyard; (6) Heliports or seaplane ports, provided that: a. The helicopter is associated with a governmental service facility, a law enforcement element or a medical services facility; b. The heliport or seaplane port is a Federal Aviation Administration certified landing facility; c. The landing and departure approaches do not pass over established residential uses or known bird rookeries; d. If there are established residential uses within 500 feet of the parcel proposed for development, the hours of operation shall be limited to daylight; and e. The use is fenced or otherwise secured from entry by unauthorized persons; (7) Light industrial uses, provided that: a. The parcel proposed for development is greater than two acres; b. The parcel proposed for development is separated from any established residential use by a class C bufferyard; and c. The use is compatible with land uses established in the immediate vicinity of the parcel proposed for development; (8) Boat building or repair in conjunction with a marina or commercial fishing use, provided that: a. The parcel proposed for development has access to water at least four feet below mean sea level at mean low tide; b. The sale of goods and services is limited to fuel, food, boating, diving and sport fishing products; c. All outside storage areas are screened from adjacent uses by a solid fence, wall or hedge at least six feet in height; and d. The parcel proposed for development is separated from any established residential use by a class C bufferyard; (9) Mariculture; (10) New antenna - supporting structures, pursuant to section 146-5(l); (11) Land use overlays A, E, PF, subject to the provisions of article IV of this chapter; (12) Attached and unattached residential dwellings involving more than 18 units, designated as employee housing as provided for in section 130-161; Appraisal Company of Key West Page 42 Section VIII Site Data and Analysis (13) Wastewater treatment facilities and wastewater treatment collection systems serving uses located in any land use district, provided that: a. The wastewater treatment facility and wastewater treatment collection systems are in compliance with all federal, state, and local requirements; b. The wastewater treatment facility, wastewater treatment collection systems and accessory uses shall be screened by structures designed to be architecturally consistent with the character of the surrounding community and shall minimize the impact of any outdoor storage, temporary or permanent; and c. In addition to any district boundary buffers set forth in chapter 114, article IV, a planting bed, eight feet in width, to be measured perpendicular to the exterior of the screening structure shall be established with the following: 1. One native canopy tree for every 25 linear feet of screening structure; 2. One understory tree for every ten linear feet of screening structure and the required trees shall be evenly distributed throughout the planting bed; 3. The planting bed shall be installed as set forth in chapter 114, article IV, and maintained in perpetuity; and 4. A solid fence may be required upon determination by the planning director According to most recent Monroe County Planning Department zoning map, the subject properties have been zoned as Mixed Use (MU), which would allow the applicant to consider redevelopment of the property with new commercial and /or multi - family structures." The subject's properties, Parcel A & B comprise a vacant lots that have been grandfathered with respect to density per the PMLOU. E. Access: As discussed previously, the subject property fronts along the northerly side of the MacDonald Avenue. The two -lane, main road in Stock Island, intersects westerly with 3 rd Street which connects, northerly with US Highway No. 1, the only highway into and out of the Florida Keys, which serves as the island's local shopping and service area. The subject property's location is attractive due to access to US Highway No. I and exposure. F. Easements /Encroachments: An undated and unsigned survey for the property was obtained from a prior appraisal by our office. The survey did not indicated any easements or encroachments. Valuation is reported without regard to questions on boundaries. No responsibility is taken by this office for the accuracy or in regard to any questions on boundaries, encroachments or dissimilarities in measurements. If an updated survey is made available and any discrepancies are noted due to easements and /or encroachments, we reserve the right to change the final indicated value herein. 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 surveying errors is assumed. Appraisal Company of Key West Page 43 Section VIII 1 Site Data and Analysis REAL ESTATE TAXES AND ASSESSMENTS Parcel "A" - Lot 12, Block 31 5671 MacDonald Avenue, Key West, FL Parcel No. 00124460- 000000 -Alternate Key 1158585 Building Misc. Total Tax Tax Year Land Improvements Imprv. Assessment Burden Millage 2010 5188 s0 52,037 5190 52,123.78 1 11.1539 Parcel "A" - Lots 13 -15, Block 31 5671 MacDonald Avenue, Key West, FL Parcel No. 00124470- 000000 -Alternate Key 1158593 Building Mis c. Total Tax Tax Year Land Improvements Imprv. Assessment Burden Millage 2010 5312,533 s0 52,494 5315,027 53,513.78 11.1539 Note Lot 16 is not Included in Subject Property; thus, the assessments and taxes were pro- rated. Real Estate Taxes for Overall Subject Property Building Misc. Tax Tax Year Land Improvement Imprv. Assessment Burden Millage 2010 1 S500,9031 s0 I 54,531 I 5505,434 I 55,637.56 1 11.1539 The real estate tax assessment and tax burden for the subject property, decreased significantly in 2010. Based on a 2010 millage rate of $11.1539 per $1,000 of assessed value and an assessed land value of $505,634, the total 2019 tax burden for the subject property is $5,637.56 or $0.23 /SF of site area (not including Lot 16). The tax assessment for the subject property is below my opinion of the present value of the overall land value indicated herein and therefore a tax appeal does appear warranted or feasible. The 2008 taxes are delinquent and have been sold for tax certificates. There also appears to be outstanding a total (2008 to 2010) of $24,495.51 is due for Subject Property "B" (including Lot 16), while a total (2008 to 2010) of $7,117.56 is due for Subject "A ". However, a title search was not made for the subject property. The 2010 Monroe County Tax Appraiser's Information Sheet for the three parcels are located in the Addenda Section of this report. H. Census Tract: According Mr. Jim Anderson of the Tallahassee, Florida Division of the United States Census Bureau, Monroe County is not divided into Census Tracts; but rather "Block Numbering Areas ". According to 1990 Census Maps, the subject property is located within Block Number 9718. Appraisal Company of Key West Page 44 Section IX IX IMPROVEMENTS ANALYSIS Improvement Analysis Improvement Analysis for Subject Property The subject property consists of four contiguous, vacant lots within two parcel numbers. The subject property has a partial perimeter chain -link fence, which has little contributory value. As a result, this analysis is not applicable. Appraisal Company of Key West Page 45 Section IX Improvement Analysis X STATEMENT OF HIGHEST AND BEST USE According to the definition as stated in The Appraisal of Real Estate Thirteenth Edition, 2008, by the Appraisal Institute, Highest and Best Use is defined as: "The reasonably probable and legal use of vacant land or an improved property that is legally permissible, physically possible, appropriately supported, financially feasible, and that results in the highest value. " Alternatively, that use, from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in highest land value. The definition immediately above applies specifically to the Highest and Best Use of the land. It is to be recognized that in cases where a site has existing improvements on it, the Highest and Best Use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its Highest and Best Use exceeds the total value of the property in its existing use." Four stages are included in the analysis of Highest and Best Use: Possible Use: determines the physically possible uses for the subject site. Permissible Use: determines which uses are legally permitted for the subject site. Feasible Use: determines which possible and permissible uses will produce a net return to the subject site. Most Profitable Use: determines which use, among the feasible uses, is the most profitable use of the subject site. The Highest and Best Use of the land as if vacant and available for use may be different from the Highest and Best Use of the improved property. This is true when the improvements do not constitute an appropriate use. The existing use will continue unless and until land value in its Highest and Best Use exceeds the sum value of the entire property in its existing use and the cost to remove the improvements. The Highest and Best Use analysis determines what the premise of use should be. A Highest and Best Use analysis consists of considering the Highest and Best Use of a property under two assumptions: (1) with a vacant and available site and (2) with the property as improved. These two assumptions on Highest and Best Use are correlated into one final estimate of Highest and Best Use. Appraisal Company of Key West Page 46 Section IX AS VACANT AND AVAILABLE Improvement Analysis The first major aspect of the Highest and Best Use analysis is considering the property as if it were vacant and available for development. This assumption is made to determine whether the land alone is worth more than the existing property as is, to determine whether the site is presently under - utilized. Possible Use - The physical aspects of the land impose the first constraints on any possible use of the property. For purposes of this valuation we have utilized the total site size as 37,500 square feet or 0.86 acres per the Monroe County Property Appraiser Office Records, which was thought to be most reliable. Based on the above physical facts, various land uses are possible. Permissible Use - All three parcels are within the most recent MU Mixed -Use zoning district. The afore- mentioned PMLOU indicated that the Letter "does not provide any vesting to the existing regulations" and "the representations set forth in this PMLOU as accurate under the regulations currently in effect." According to Mr. Barnett, the subject ROGOs are all market rate, none are affordable. Therefore, I have considered the overall subject property to have the vested development rights for 11 dwelling units, plus 2,065 square feet of commercial exempt from NROGO. Feasible Use - vacant land in this zoning district, until the market peak of late 2006, has been in great demand with recently depreciating values. The general uses in the subject's area consist of: retail shops, professional offices, tourist - oriented businesses, retail/service businesses, and single and multi- family resi- dential dwellings. The MU zoning regulations require a maximum floor area ration (FAR) of 0.45 and a maximum density of 10 dwelling units per acre. The vested density for the subject exceeds this requirement, due to the PMLOU determination of 11 units for the overall subject property. It is the appraiser's opinion that, ifthe development ofthe site for mixed commercial/nontransient residential use, per the entitlements, would be feasible and would provide a positive net return to the land under the current MU zoning regulations. Most Profitable Use - In the final analysis, a determination must be made as to which feasible use is the Highest and Best Use of the parcel as if vacant. Based on the current zoning, coupled with the limited number of potential 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 mixed commercial and nontransient residential unit use obtaining maximum utilization of the land and number of units (density) as allowed by current MU zoning regulations and the existing entitlements. Appraisal Company of Key West Page 47 Section IX AS IMPROVED Improvement Analysis The subject property has been historically utilized as Mobile Home Park with the improvements razed in 2006. The subject property is currently vacant land with entitlements. Thus, this analysis is not applicable, in the case at hand. CONCLUSION OF HIGHEST AND BEST USE Hence, in my opinion, the Highest and Best Use is for redevelopment utilizing the maximum entitlements with 11 market rate dwelling units, plus 2,065 square feet of commercial exempt from NROGO. It is recommended to continue the interim use until the residential housing market improves and inventory declines further. Eventually redevelopment will be feasible, although it may take a few more years to maximize development potential. However, the potential buyer of the subject property, Monroe County, wants to build a new fire station on the subject property. The subject property is centrally located, adjacent to the existing fire station, and there is a possibility that the end of MacDonald Avenue, which is between the old station and the new site, could be acquired by the County and the two sites could be joined. As a result, the utility of the overall site could be maximized as a fire station with prime access to Stock Island and Key Haven (via the nearby U.S. Highway No. 1) Appraisal Company of Key West Page 48 Section XI XI Analysis, Valuation and Conclusions SCOPE OF WORK, ANALYSIS, VALUATION AND CONCLUSIONS A. Methodolo The valuation of commercial property utilizes three approaches to value: 1. The Cost Approach 2. The Income Approach 3. The Sales Comparison Approach 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. Finally, the three indicated values developed by the approaches, are reconciled to produce the final estimate of value. A brief description of each of the approaches to value follows: THE COST APPROACH The cost approach is determined by taking the value of the land and adding to it the depreciated value of the present improvements. A separate land analysis is done to determine the value of the land. This approach is based on the Principle of Substitution, which states that a purchaser will not pay more for an existing property than the cost to reproduce it, in a similar area, assuming that it could be reproduced without delay. This could be restated as: Replacement Cost New, Less Depreciation, Plus Land equals value. Depreciation consists of the following items: a. Physical deterioration. This is an element of accrued depreciation, which can be curable or incurable. Curable physical deterioration is a curable defect caused by deferred maintenance. Incurable physical deterioration is an incurable defect caused by physical deterioration that is impractical or uneconomic to correct. b. Functional obsolescence. This is a loss in value caused by factors inherent within a building or building equipment unit. Factors include changes in construction materials and techniques, which result in excess capital costs in existing facilities; lack of full use of space; and an inability to expand or update the property. Appraisal Company of Key West Page 49 Section XI Analysis, Valuation and Conclusions C. Economic obsolescence. This is caused by external factors such as general economic conditions, availability of financing, or disharmonious property uses. 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. This approach is considered to be the strongest indicator of current fair market value when the property is purchased as an income- producing property having a reliable historical cashflow. The subject lots are scarified and vacant; with no long -term leases encumbering the lots. The current use is considered an interim use and being under - utilized. The Highest and Best Use if for commercial and residential development at the same time in the future, based on the entitlements. The County's desire to build a new fire station appears to be reasonable alternative use. Hence, the Income Approach was not considered in the valuation herein as if vacant lots with entitlements are not typically leased on a long -term basis. SALES COMPARISON APPROACH The sales comparison approach is also based upon the Principle of Substitution. When applied, it states that when similar (comparable) properties in similar locations are adjusted for any dissimilarities, the value from these comparable properties can indicate a value estimate. The appraisers have considered some recent comparable land sales within the subject property's market area and throughout the Florida Keys. The appraisers have been instructed to estimate a market value for the subject property; thus, we have considered comparable sales of similar commercial properties in the subject property's market area and throughout the Florida Keys market. Valuation Conclusion Each approach to value has varying degrees of applicability and weight under a given set of circumstances. After consideration of each applicable approach, the valuation methods are weighted according to reliability. Appraisal Company of Key West Page 50 Section XI Income A oroach B. COST APPROACH: The Cost Approach is based on the principle of substitution, the beliefthat a purchaser would not pay more than the cost of acquiring a similar site plus the cost of construction 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 of a 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. This approach is particularly useful in valuing new or nearly new improvements and properties that are not frequently exchanged in the market. Profit for coordination by the entrepreneur is included in the value indication. Cost Approach techniques can also be employed to derive information needed in the sales comparison and income capitalization 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. An appraiser must follow a series of steps in deriving a value indication by the Cost Approach. These steps are as follows: • Estimate the value of the subject site. The land value estimate is as though the land was vacant and available to be developed to its Highest and Best Use. Adjustments are made if necessary for financing /financing concessions, time, and for physical differences, i.e. location, size, and topography, etc. • After a land value is derived for the subject site the reproduction cost or replacement cost of the improvements must be estimated as of the effective date of the appraisal. This estimate includes direct (hard) costs, as well as indirect (soft) costs. • Other costs (indirect) which must be incurred after construction to bring the new, vacant structure up to occupancy levels and market conditions must be estimated. • A relevant entrepreneurial profit or incentive must be estimated from market analysis and research. • A total replacement or reproduction cost of the prunary structure is estimated by addition of all of these costs (direct and indirect). Appraisal Company of Key West Page 51 Section XI Income A "roach • An estimate of the amount of accrued depreciation in the structure must be considered. This depreciation is divided into three categories: physical deterioration, functional obsolescence and external obsolescence. • The estimated accrued depreciation must be deducted from the total reproduction or replacement cost of the primary structure(s) to derive an estimate of the depreciated reproduction or replacement cost. • Then, an estimated reproduction or replacement cost for accessory buildings and site improvements should be estimated with deductions made for depreciation. These improvements are typically appraised at their net value (on a depreciated -cost basis). • The depreciated reproduction or replacement costs of the primary structure(s), the accessory structures, and the site improvements are added to derive the total depreciated reproduction or replacement cost of all improvements. • The site value and total depreciated reproduction or replacement cost of all improvements are added to arrive at the indicated value of the Fee Simple Interest in the property. • The Fee Simple Value is adjusted to reflect the property interest being appraised, if necessary, to arrive at an indicated value of the interest in the subject property being appraised. The subject property is presently vacant land. The Cost Approach consists of combining the estimated value of the land, based on comparable sales, with the depreciated value of the improvements. A purchaser would normally give little consideration to this value approach when his primary interest in the property is its income stream and desirable rate of return on his equity. The two major exceptions might be in the case of a purchaser who is acquiring a property for his own use and occupancy, an owner -user property, or in valuing a special use property. A common problem in applying this approach arises ifthe building improvements are older, for accurately estimating the depreciation in older buildings is difficult. Since estimates of depreciation will have a significant impact on the resulting value estimate, the reliability of the Cost Approach diminishes when valuing older properties. In the case at hand the cost approach was considered but deemed as non- applicable since the subject is vacant land with entitlements. The valuation of the subject land is within the Sales Comparison Approach section of this report. Appraisal Company of Key West Page 52 Se ction XI C. INCOME APPROACH: Income A "roach The Income Approach to value presumes that no prudent buyer will pay more for the subject properties than the capitalized rental value attainable through ownership of the properties. The buyer will only be willing to pay the present value of what he considers those future benefits to be. This approach was considered and deemed as non - applicable due to the property being an interim use and being under - utilized. Appraisal Company of Key West Page 53 U O O O V ry O `Iv 0� x U O a a z 0 a 0 U W a d a ct M 00 Vn 00 01 '-- "o M � tn M N O O N �-o a1 M kn N N kn N b4 M b4 b4 b4 b4 b4 b4 O a1 M oo M �n \O \O O 0 0 l� N 00 O \o � 00 O In 00 O O 00 kn l� a1 � O t N t oc rn in oc O N N Z 0 kn N rl kn N 0 M 00 O k n 00 G\ I!t 00 M �.4 �p G1 N blg Ull Y3 O M l— M 00 G\ kn M kn kn M 00 eq en kn r p 00 � rl O 00 C rte. 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P o �n �n 00 �n t a1 N O O "n '--a O O O O O O O 0 0 0 0 0 0 0 . 8° 8 G� T2� ° � � s`° � �A A O a1 a1 o0 00 00 bb o 0o O M M N N O N oc d d FS O O � bb $41., r� v� v� v� v� O ct ct � o ct ct oc bb aj rri d h G QJ O 0 0 U N O U C� U E U C N 7� 7� v� N U � c ct Q� -� U U-4 1 0 ct a� U U s-a ct a� ;Z U � 7� O � b O CIA O O � U c ct a O N O o a� U •H O � Section XI COMPARABLE SALES MAP Sales Comparison Approach ! T,-Lr MX 99 --1 Tavernier MN 91-92 F. CID E2 H 2-- W C-*Y Olantation Key MM 86-90 Windle Ke d 8 Islamorada Upper Matecumbe Key MN80 0- U Lower Matecumbe Xe MM74 I Fl esta Ke KM70 I,., L on La ay 1�,onigz Ke MM66-69 ,ngh Ke MN61 ul-lert Key Crass_y KeY MM57-60 craw;L Xi karat on Ke Colon each M.541 Vac a Ke Marathon MMt-,'O I coppitt MM 10 Boca Chica MM 7-8 Stock Island MM _54qM 4M 4 0 M Ke West Appraisal Compan of Ke West Pa 55 I F-11- Ke MM45 & 7--mi-le Brid C-1) 40 a -Svnshine Key MIM Bahl& Honda MM 37-38 ► Elfty MM 30" �28 Middle 0 � 8 o To a ri a JIM 2-&�25 ,Summer7 F � "? a, _ --- 2 wer Su loaf Ke MM 1 Saddlebunch Ke MM 13-16 I coppitt MM 10 Boca Chica MM 7-8 Stock Island MM _54qM 4M 4 0 M Ke West Appraisal Compan of Ke West Pa 55 Section XI Sales Comparison Approach Discussion of Mobile Home Park Sales Each of the comparable sales was analyzed in order to make comparisons to the subject property. Active Listing No. 1 - 5455 Mac Donald Avenue, Stock Island This is an active listing of a vacant tract containing 105,504 square feet or 2.42 acres of site area. This property is listed at an asking price of $5.5 million including 51 market rate ROGO except allocation or $2,950,000 for the raw land with 14,129 square fee of commercial or NROGO except building area, but not including the entitlements for the 51 residential units (subject to being able to move these rights to a suitable receiver site). The listing has been on the marker for about two years. As a result, the asking price was conservatively reduced by 20% in order to estimate a reasonable sales price considering present market conditions. This comparable does also front on the U.S. Highway No. 1 and is located only about three blocks westerly from the subject property. This comparable is very similar to the subject property as the mobile home building improvements have been razed; thus, it is vacant land with entitlements. Sale No. 2- Sunset Harbor Village, 50315 Avenue, Stock Island: This property is located on Stock Island, Florida and it fronts along the northerly side of Fifth Avenue, along the westerly side of Balido Terrace, with frontage along Cow Key Channel, as well as frontage along an unnamed canal on the northerly side of the property. According to a survey dated May 30, 1998 by Phillips and Trice Surveying, Inc., Project No. 218098, the site consists of 4.0 acres of uplands and 0.60 acres of submerged land. The property is improved and licensed as an 86 -unit mobile home park with 40 landlord -owned manufactured homes plus 46 mobile home sites which are also rented. There is a one- story CBS /Masonry structure used as an office, plus a wood frame building improvement with a marina on the westernmost tip of the property. Appraisal Company of Key West Page 56 Section XI Sales Comparison Approach View of Canal Front Trailers and Boat Slips Sale No. 3 -6531 Maloney Avenue, Stock Island: According to the Monroe County Tax Appraiser's records, the site consists of a mostly rectangular- shaped site containing 29,500 square feet of upland area as well as approximately 0.69 acres of deeded bay bottom. The property is an interior, irregular shaped site which fronts approximately 150.0 feet along the easterly side of Maloney Avenue; it extends 235.0 feet in depth along the northerly boundary to easterly side along Boca Chica Channel with good boating access. A survey of the property, prepared by R.E. Reese, P.A., 30364 Quail Roost Trail, Big Pine Key, Florida 33043 and dated September 14, 2005 was made available. The site is improved with a one - story, wood frame owner's structure (owner /manager's unit) containing 1,972 square feet. This structure was built in 1965 according to the Monroe County Tax Appraiser's records. The other thirteen (13) structures on the subject site consist of mobile home structures of various sizes. Four of the units have concrete column foundations with exterior wood stairway access, while the other units have concrete pier foundations. Most of these units were manufactured between 1960 and 1966, with three units (3) manufactured in 1987. Due to the age of most of the structures, the improvements do not have a significant amount of contributory value, the Highest and Best Use is to eventually redevelop the property. Appraisal Company of Key West Page 57 Section XI Sales Comparison Approach Sale No. 4- 1015 -1027 Simonton Street, Key West: This 42 Unit mobile home park is located in the Old Town section of Key West with ease of access off Simonton Street. The site contains 45,476 square feet of site area located on a corner parcel with Virginia Street. This sale was a private, arm's length transaction with cash to the seller. This sale is located approximately 5 miles westerly from the subject property. �a m Appraisal Company of Key West Page 58 Section XI Sales Comparison A roach t �y r ee - %L e , , 4 lee IrN n Pr �. Sale No. 5 - Lazy Lakes /Sunburst Park, Sugarloaf Key: This property consists of 5.87 acres or 255,697 square feet of upland area and 23.55 acres of submerged land, "Borrow Pits ", known as Osprey Lake. According to the Monroe County Property Card, the parcel is improved with a one -story wood frame /pole construction office /clubhouse building containing 1,781 square feet and a CBS /masonry restroom/shower building containing 480 square feet. Also, according to the Monroe County Property Card, there are six small park -owned mobile homes located on the property, with the remaining mobile homes belonging to individual lessees. A site plan prepared by Cortex Design indicates 5.70 acres of upland (including the proposed excising of part of Johnson Road right -of -way). The site plan also indicates 10.98 acres of submerged land, lake and flats. The Lazy Lakes /Sunburst RV mobile home park is licensed by the State of Florida Health Department for 50 RV sites and 50 mobile home sites, for atotal of 100 units. The entire property is in the URM, Urban Residential Mobile Home zoning district, Monroe County. The developer purchased the property with possible future transfer off -site of several dwelling units for the development of affordable housing; however, the current possibility of a 380 agreement is not probable. This comparable was an arm's length transaction. This property was appraised by this office and is located approximately 15 miles northeasterly from the subject. The majority of this comparable is vacant. Appraisal Company of Key West Page 59 Section XI Sales Comparison Approach No. 6 - Rainbow's End Trailer Park, Cudj oe Ke y: This sale consists of a mobile home park in combination with a minimal restaurant. The improvements front on the Overseas Highway on an irregular interior site, containing a total of approximately 143,748 square feet or 3.3 acres overall. The survey indicated a mangrove fringe and salt ponds at th rear of the site; however, the size of the upland was not indicated on the survey or Monroe County Property Appraiser's Records. The appraisers estimated 83,748 square feet of upland. The commercial structure contains 1,406 square feet of gross building area which front on the Overseas Highway. The mobile homes are situated behind the commercial building. The park is licensed with the Department of Health for 16 mobile homes and 5 recreational vehicles for a total of 21. However, the Monroe County Planning and Environmental Resources Department acknowledged that there is a total of 16 mobile homes and 4 recreational vehicles on this property. The buyer of the property is in the process of disputing the number of units. For purposed of our analysis we have utilized 21 units. The restaurant is licensed for 74 seats. There are no other amenities on the property. The buyer plans on upgrading the mobile home park and converting the ownership to condominium or cooperative and selling off the individual sites. The commercial structure will be either sold or leased. This comparable is not waterfront property and was an arm's length transaction. This property was appraised by this office and is located approximately 16.5 miles northeasterly from the subject. Appraisal Company of Key West Page 60 Section XI Sales Comparison Approach No. 7 - Liz Trailer Park, Stock Island: Overall this comparable consists of 83,750 square feet or 1.92 acres of upland land area that is made up of three parcels. The front parcel is located on the corner of Maloney Avenue and contains one commercial structure (Former Bakery /Restaurant), now vacant, has 1,756 square feet of gross building area, including the storage shed and eight (8) mobile homes, some with exterior porches and raised foundations. According to a survey this parcel has 100 feet along the westerly side of Maloney Avenue and 400 feet along the southerly side of 4 th Street. The Monroe County Property Appraisers Office property account (RE) number is 00126060 - 000000 and has 40,000 square feet. According to the Letter of Development Rights Determination (LDRD), prepared by the Monroe County Planning Department this parcel has 1,756 square feet of commercial floor area exempt from NROGO (Non- Residential Rate of Growth Ordinance), plus 12 vested market rate ROGO (Rate of Growth Ordinance). The other two parcels are contiguous and across Front Street on the corner of Fourth Avenue. These parcels are comprised of 2 lots and contain 7 rental mobile home units, some with exterior porches and raised foundations, plus 10 non - transient units in two CBS buildings. The two (2) non - transient multi - family buildings have a total of 5,027 square feet. The Monroe County LDRD has vested 15 market rate ROGO's to these two parcels. The site area for these two lots, identified as parcel account (RE) # 00127260- 000000 and #00127270 - 000000, is 43,750 square feet. Hence, overall this comparable property has a total of 27 market rate ROGO units plus 1,756 square feet of commercial floor area exempt from NROGO. However, the appraisers has adjusted the sales price allowing for the six affordable units that the County requires; thus, leaving 21 vested market rate units and 6 affordable dwelling units. This comparable is located approximately 4 blocks southeasterly from the subject property. This property was appraised by this office prior to the sale. The improvements are in poor conditions and do not have significant contributory value. Appraisal Company of Key West Page 61 Section XI Sales Comparison Approach Value Conclusion: A. Discussion of Comparable Sales: Each of the comparable sales was also analyzed in order based on the following factors to make comparisons to the subject property. The architecture of Stock Island and the Lower Florida Keys has developed in a unique and individual manner. Each sale is considered generally similar to the subject in location within the commercial market area, though many are superior in site size. 1. Market Conditions: Analysis of the comparable sales and historical sales data indicates depreciating values at a range of below 10% to 22.4 %. Therefore, we have adjusted all of the 2008 -2009 sales at 10.0% depreciation rate per annum based on analysis of sale /resales. 2. Financing All of the comparable sales were considered cash equivalent, either cash or owner financing at market rates. Thus, none of the comparables required adjustment for financing. 3. Location: The four sales located in Stock Island, Sale Nos. 1, 2,3 and 7 are considered to be equal to the subject. Sale Nos.5 and 6, while located on US Highway 1, were considered to inferior as they are located more that 15 miles northeasterly from the subject. Sale No. 3 Appraisal Company of Key West Page 62 Section XI Sales Comparison Approach was considered to be slightly superior to the subject as it was located in Key West and was negatively adjusted. 4. Water Frontage: The subject has no water frontage neither do Sale Nos. 1, 4, 6 and 7, therefore, they were considered to be equal to the subject. Sale Nos. 2 and 3 have access to water frontage and considered to be superior and were negatively adjusted. Sale 4 is located on a lake although there is no access to the Gulf of Mexico or Atlantic Ocean. 5. Site Size: All of the Comparable have larger site area than the subject. 6. Site Size Per Unit Subject Property "A" has 3,125 square feet per unit, while Subject Property "B" has 2,083 square feet per unit, Sale Nos. 1 and 3 was considered to be equal with the subject. Most of the sales were fairly similar to the subject. 7. Amenities: All Comparable Sales have minimal amenities except Sale No. 2 and No. 5. Therefore, the balance were considered to be equal to the subject. Market Rate Unit Valuation Conclusion: The comparables indicated an adjusted (market conditions) sales price per unit from $47,3 5 7 to $120,83 3 with a mean at $72,580 and a median at $74,593. In addition, the comparable indicated a sales price per square foot of land from $9.74 to $52.78 with a mean at $31.38 and a medium of $26.59. Therefore, in our opinion the subject's value should be near $85,000 and $60,000 per market rate unit for Subject Property "A" and "B" respectively, based upon their access to US Highway 1, frontage, location, and its size. The resulting Market Rate Unit value estimate is as follows: Subject Property "A" Market Rate Units $ /Market Rate Unit = value 2 X $85,000 = $170 (or $27.20/SF) Due to Subject Property "A "'s only having entitlements for two ROGOs, its price per unit was set at the upper -limit Appraisal Company of Key West Page 63 Section XI Sales Comparison Approach i I � Subject Property "B" Market Rate Units $ /Market Rate Unit = Value 9 X $60,000 = $540 ( or $28.80/SF Appraisal Company of Key West Page 64 Section XI Sales Comparison Approach I Valuation of Transferrable Building Rights TBR's: According to the Pre - application Meeting Letter of Understanding from the Monroe County Planning Department, the subject property has the development rights to build -back the existing commercial square footage at the subject property. The transfer of development rights is very common in Monroe County due to the commercial moratorium and N.R.O.G.O. This analysis has been predicated upon the assumption that the existing commercial square footage could be duplicated in its entirety. In the absence of specific redevelopment plans, we have valued these commercial rights, also known as Transferable Building Rights (TBR's), as if they were sold, and have assumed that the receiving -site meets all the requirements of a receiving -site. The Transfer Off-Site of Existing Non - Residential Floor Area Ordinance provides a vehicle for the transferring of the commercial floor area from the existing site (sending site) to another approved new receiving site. However, once severed, the sending site would be rendered not developable for that floor area. According to Ms. K. Marlene Conaway, Director of Planning and Environmental Resources, the Non - residential R.O.G.O. (Rate of Growth Ordinance) became effective as of November 2002 after going through the appeal process with the Department of Community Affairs (DCA). The appraisers have analyzed some early transfers which took place over eight years ago, whereby a commercial property was purchased with an existing commercial structure that was demolished to rebuild a new structure on the same property. Thus, the purchaser bought the development right to build a new building with equal floor area. This Transferable Off -Site of Existing Non - residential Floor Area Ordinance is a method of getting around the Non - residential Rate of Growth Ordinance, as well as controlling growth. It allows buyers' or tenants' to purchase older existing buildings and either demolishing them for reconstruction or completely rebuilding them to suit their needs. However, according to an interview with Mr. Donald Craig, The Craig Company, Consultants and Planners, due to the decreased demand these Transferable Off -Site of Existing Non - residential Floor Area have minimal value, especially in the Lower Keys. Apparently, the supply has been absorbed by the pent up demand. We anticipate that the slowing economy also played a role in decreasing the demand. From personal interviews with local Realtors and developers, the appraisers could not locate any transaction in the past two years; other than transfers within the sending site. Furthermore, Mr. Craig mentioned that the transfers that have taken place have been between neighboring properties or within the sending property. According to the zoning regulations a maximum of 2,500 square feet could be built per site meeting all the building guide lines including set backs, floor area ratios, lot coverage, open space ratios, etc. The availability of permits will no doubt has a positive effect on the value of TBR's. Hence, the appraisers have placed a minimum value on these Transferable Building Rights (TBRs), assuming a buyer would be willing to pay only $3.50 to $4.00 per square foot. Appraisal Company of Key West Page 65 Section XI Sales Comparison Approach Transferable Off-Site of Existing Non - Residential Floor Area ..... $ 4.00 per Sq. Ft. 2,065 Sq. Ft. N.R.O.G.O. X $4.00 /Sq.Ft. _ $8,260 Value of the Non - Residential of Growth Ordinance for the Subject Property via the Sales Comparison Approach (Rounded) ............ ............................... $ 8,000 Appraisal Company of Key West Page 66 Section XI Sales Comparison Approach I I Value Conclusion Summary via Sales Comparison: The above detailed market data and analysis indicated the values of the various components that make up the subject property. The following table is a summary of the total Market Value of the subject property base on the indicated value of three components, 13 market rate ROGO units, 6 affordable dwelling units land value plus the value of 2,754 square feet commercial floor area exempt of N.R.O.G.O. Therefore, applying these market rate values to the various units of measure contained within the subject property, the following overall value was derived: Sales Comparison Approach - Subject Property "A" Summary of Values Total Number of Allocated "its: 2 Subject Site Size (SF): 6 Description Units Est. Value /Unit Value Market Rate Dwelling Units 2 $85 $170 Affordable Housing Units 0 $0 $0 Commercial NROGO Fxempt Floor Area 1 0 $4.00 $0 Value Per Value Per Overall Fee Simple Value Via the SCA: $170 Unit SF of Land Value via Sales Comparison Approach (Rounded): $170 $85 $27.20 MARKET LAND VALUE OF THE FEE SIMPLE ESTATE OF THE SUBJECT PROPERTY "A", AS INDICATED BY THE SALES COMPARISON APPROACH AS OFFebruary 1, 2011 ( Rounded) :..................................................... ............................... S 170,000 Sales Comparison Approach - Subject Property "13" Summary of Values Total Number of Allocated "its: 9 Subject Site Size (SF): 18 Description Units Est. Value /Unit Value Market Rate Dwelling Units Affordable Housing Units 9 0 $60 $0 $540 $0 Value Per Value Per Unit SF of Land Commercial NROGO Exempt Floor Area 1 2 $4.00 $8,000 Overall Fee Simple Value Via the SCA: $548 Value via Sales Comparison Approach (Rounded): $550 $61 $29.33 MARKET LAND VALUE OF THE FEE SIMPLE ESTATE OF THE SUBJECT PROPERTY, "B" AS INDICATED BY THE SALES COMPARISON APPROACH AS OF February 1, 2011 ( Rounded) :............................. ............................... $550,000 Appraisal Company of Key West Page 67 Section XI XII Sales Comparison Approach RECONCILIATION AND FINAL ESTIMATE OF VALUE The following indications of property value have been developed in our analysis of market data for Subject Property "A" and "B ". Reconciliation - Subject Property "A" 5671 MacDonald Avenue, Stock Island, FL Lot 12, Block 31, Stock Island Maloney Subd. PB -1, PG -55 Fee Simple Interest Valuation Method: Market Value Cost Approach Not Applicable Income Approach Not Applicable Sales Comparison Approach $170 "As Is" Market Value of Subject Property "A ", as of $1709000 l February 1 2011: (Rounded) Reconciliation - Subject Property "B" 5671 MacDonald Avenue, Stock Island, FL Lots 13 -15, Block 31, Stock Island Maloney Subd. PB -1, PG -55 Fee Simple Interest Valuation Method: Market Value Cost Approach Not Applicable Income Approach Not Applicable Sales Comparison Approach $550 "As Is" Market Value of Subject Property "B ", as of $5509000 The greatest weight is given to that approach in which the appraisers have the highest degree of confidence. This implies a minimum of assumptions and a sufficient quantity of data. The Income Approach was considered but deemed as non - applicable due to the fact that the appraisers is valuing the subject property vacant land with entitlements. The Cost Approach was considered but deemed as non- applicable as the subject property is vacant land with no building improvements, except for some fencing which does not have any contributory value. The Sales Comparison Approach was considered due to a number of recent sales within the immediate market area of the various components (vacant land with entitlements) that make up the subject property. The Sales Comparison Approach was weighted tom The Income Approach was considered but deemed as not - applicable due to the property being an interim use and under utilized. Based on an analysis of the real estate market activity in the subject property's market area, and after considering the reliability of the Sales Comparison Approach, it is the appraiser's opinion that these approaches were the most reliable market data available in this analysis. Appraisal Company of Key West Page 68 Section XI Sales Comparison Approach Based on market analysis, visitation and research, it is my opinion that the "As Is " Market Value of the Fee Simple Estate of Subject Property "A ", vacant land with entitlements, commonly known as the former Sun Haven Trailer Park, located at 5671 MacDonald Avenue, specifically, Lot 12, Block 31, Stock Island Maloney Subdivision Plat Book 1, Page 55, Stock Island, Florida, subject to development rights of the Recent Entitlement Pro - ration Letter and prior Pre - Application Meeting Letter of Understanding (PMLOU) for 9 ROGO market rate dwelling units, and 2,065 square feet of commercial floor area exempt from NROGO, and also subject to the definitions, assumptions and limiting conditions, as of February 1, 2011 is: ONE HUNDRED SEVENTY THOUSAND DOLLARS ($170,000) In addition, Based on market analysis, visitation and research, it is my opinion that the "As Is " Market Value of the Fee Simple Estate of Subject Property "A ", vacant land with entitlements, commonly known as the former Sun Haven Trailer Park, located at 5671 MacDonald Avenue, specifically, Lots 13 -15 Block 31, Stock Island Maloney Subdivision Plat Book 1, Page 55, Stock Island, Florida, subject to development rights ofthe Recent Entitlement Pro - ration Letter and prior Pre - Application Meeting Letter of Understanding (PMLOU) for 2 ROGO market rate dwelling units, and also subject to the definitions, assumptions and limiting conditions, as of February 1, 2011 is: FIVE HUNDRED FIFTY THOUSAND DOLLARS ($550,000) Appraisal Company of Key West Page 69 Section XII ADDENDA Addenda Appraisal Company of Key West Page 70 Section XII PROFESSIONAL QUALIFICATIONS JAMES E. WILSON, III Addenda James E. Wilson has been a resident of South Florida since 1976. His education includes a Bachelor of Science in Business Administration with a Major in Economics from the University of Florida, 1987- 1991. His experience in the real estate industry began in early 1992 as a residential real estate appraiser in Pompano Beach, Florida. He appraised a wide variety of single and multi- family residential properties in Dade, Broward, and Palm Beach counties over a two -year period. In the search of advancement and challenge, James Wilson moved to the City of Key West, Monroe County, Florida in order to obtain experience and practice commercial real estate appraisal valuation techniques in a demanding and Over the past 18 years James has been exposed to a wide -range of appraisal projects, including highest and best use studies, complex property appraisals, and wetland and environmentally sensitive valuations including transferrable development rights. His appraisal experience includes financial and investment analysis, appraisal review, feasibility and planning analysis, as well as market research and analysis. James Wilson has strived from a State Registered Real Estate Appraiser (apprentice) to a State Certified Residential Real Estate Appraiser to a State Certified General Real Estate Appraiser (licensed to perform residential and commercial appraisals) and a General Associate Member of the Appraisal Institute. He has passed the General Comprehensive Test ofthe Appraisal Institute and is completing the Demonstration Report, in order to fulfill the remaining requirements to become a Member of the Appraisal Institute (MAI). He is a recent member of RICS (Royal Institution of Chartered Surveyors), which is an international member organization for professionals in property, land, real estate, construction and related environmental issues. Education: SOUTH BROWARD HIGH SCHOOL, Hollywood, FL, 1987. UNIVERSITY OF FLORIDA, Gainesville, Florida - Bachelor of Science in Business Administration - Major in Economics, 1987 -1991. APPRAISAL INSTITUTE Appraisal Reporting of Complex Residential Properties, October, 1993. Persuasive Style in Narrative Appraisal Reports, May, 1994. ACE 1779 - "Special Purpose Properties - The Challenge of Real Estate Appraising in Limited Markets" September, 1996. 410 Standards of Professional Practice, Part A (USPAP), 8/97. 420 Standards of Professional Practice, Part B, August, 1997. 520 Highest & Best Use and Market Analysis, October, 1997. Non - Conforming Uses Seminar, January, 1998. 510 Advanced Income Capitalization, May, 1998. 530 Advanced Sales Comparison & Cost Approach, May, 1998. 540 Report Writing & Valuation Analysis, August, 1998. 550 Advanced Applications, February, 1999. Regression Analysis in Appraisal Practice: Concepts & Applications, Seminar, March, 2000. General Demonstration Appraisal Report Writing Seminar, March, 2000. 800 Separating Personal & Real Property from Intangible Business Assets, March, 2002. Successful Completion of the General Comprehensive Examination for the Appraisal Institute Uniform Appraisal Standards for Federal Land Requisitions, March, 2007 General Demonstration Appraisal Report Writing Seminar, August, 2007 Valuation of Conservation Easements, January, 2008. Appraising Distressed Commercial Real Estate, June, 2009 Oil Spills and Property Values, Webinar, August, 2010 Business Practices and Ethics, September, 2010 Appraisal Company of Key West Page 71 somewhat unique market area. Section XII Professional Qualifications of James E. Wilson, III (Continued) Addenda GOLD COAST SCHOOL OF REAL ESTATE (Continued) Real Estate Principles, Practices, and Law - FREC Course I, May, 1992. Salesman Post - License Program, February, 1994. Mortgage Broker, Exam -Prep Program, September, 1992. AB I - Appraisal Board - Fundamentals of R.E. Appraising, 5/92. AB II - Appr. Board - Appraising Resid. & Income Properties, 2/94. AB IIb - Appraisal Board - Cert. Resid. Appraisal Course, 7/94. AB III - Appraisal Board - Certified General Appraisal Course (Income Capitalization Course), February, 1995. USPAP - Uniform Standards of Professional Appraisal Practice, 6/92. USPAP Course, September, 1995. A -102 - Plan Reading for Appraisers, September, 1995. National USPAP Update Course, June 2006 Techniques of Income Property Appraisal, June 2006 McKISSOCK DATA SYSTEMS Automated Valuation Models, October, 2000. Uniform Standards of Professional Appraisal Practice, October,2000. Factory Built Housing, October, 2000. Appraiser Liability, September, 2002. Appraising Nonconforming & Difficult Properties, September,2002. Appraiser Liability, USPAP, September, 2002. Appraising for the Secondary Market, October, 2004. Appraising High -Value Residential Properties, October, 2004. Florida Laws and Regulations, October, 2004. Limited Appraisals and the Scope of Work Decision, October, 2004. National USPAP Equivalent, October, 2004. Florida Laws and Regulations, September 2006. Disclosures and Disclaimer, September, 2006. Appraisal Trends, September 2006. National USPAP Update Equivalent(2008- 2009), November, 2008. Introduction to Expert Witness Testimony, November 2008. Mortgage Fraud - Protect Yourself, November, 2008. Florida Appraisal Supervisor- Trainee Roles and Relationships, November, 2008. Florida Laws and Regulations, November, 2008. National USPAP Update Equivalent (2010- 2011), August, 2010. Risky Business: Ways to Minimize Liability, August, 2010. Florida Laws and Regulations, August 2010. Florida Apprisal Supervisor - Trainee Roles and Relationships, August, 2010. The Changing World of FHA Appraising, August, 2010. VALUE INFORMATION TECHNOLOGY, INC. "Perspectives on Appraisals" FREAB Course ACE# 1591, June, 1995. NORTH BROWARD BOARD OF REALTORS ACE 591 - Basics of Construction - How a Florida Home is Built 11, January, 1994. Appraisal Company of Key West Page 72 Section XII Addenda Certification State certified general real estate appraiser, as designated by the Department of Professional Regulation, State of Florida; Registration No. RZ 2164. Licensed Real Estate Salesperson, as designated by the Department of Professional Regulation, State of Florida; License No. SL 0589552 (currently inactive). Professional Associations: Key West Board of Realtors General Associate Member of the Appraisal Institute Member of RICS (Royal Institute of Chartered Surveyors), October, 2010 Member# 12993 89 Affiliations: Past President of the Key West Gator Club (Alumni Organization of the University of Florida) Member of Class VIII, Leadership Monroe County Board Member of the Rotary Club of Sunset Key West 2009 Treasurer, 2010 Vice President, 2011 President- Elect, Board of Directors of the Key West Chamber of Commerce Experience: WILCO VALUATIONS, P.A. d /b /a APPRAISAL COMPANY OF KEY WEST, James Wilson, President and his wife, Maria Virginia Wilson, also a State Certified General Real Estate Appraiser purchased the Appraisal Company of Key West from Mr. Richard Padron in April, 2004. Mr. Padron has continued to be a Fee Commercial Real Estate Appraiser with the Appraisal Company of Key West, which has ensured continuity and quality control. APPRAISAL COMPANY OF KEY WEST, INC., Fee Commercial Real Estate Appraiser, April, 1994 to April, 2004. F.C.P. APPRAISAL SERVICES, INC., Senior Real Estate Appraiser and Trainer, May, 1992 to April, 1994. Appraised various types of properties in the Florida Keys, including: Retail Stores Restaurants Strip Centers Office Buildings Mixed -Use Properties Service Stations Multi - family Projects Proposed Developments Single- family Estates Commercial /Residential Condominiums Full - Service Marinas /Boat Yards Environmentally Sensitive Acreage Industrial Uses Guest Houses /Hotels /Motels Mobile Home and RV Parks Warehouse (including mini- storage) Special -Use Properties including Schools Seafood Processing Plants APPRAISER CERTIFICATION _1 STATE OF FLORIDA DEPA OF 0T.-TS-NESS AND FRUF;2'..��E�IQNAL REGULATION LORIZ:`� Rti;AL h.8TA'1 :.E APPRAIL B SEQ# 09/0?/2010 F0011719 iR22164. 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War Sound The Site To D6 8rlgrr ess PROPTY Q ml AIA Appraisal Company of Key West Page 74 Section XII PLAT MAP - SUBJECT "A" Addenda 44 I I I I I I I MAC D-0-NA- LD Appraisal Company of Key West Page 75 Section XII PLAT MAP - SUBJECT "B" Addenda Note The Subject Property "B" only includes Lots 13 to 15. The County is not purchasing Lot 16. Appraisal Company of Key West Page 76 Section XII AERIAL PHOTOGRAPH- SUBJECT PARCEL A Addenda Appraisal Company of Key West Page 77 Section XII Addenda AERIAL PHOTOGRAPH- SUBJECT PARCEL B Note: Subject Property "B" includes only Lots 13 to 15. Monroe County is not purchasing Lot 16. Appraisal Company of Key West Page 78 Section XII Addenda SUBJECT PROPERTY PHOTOS Street Scene Looking Easterly Along MacDonald Avenue 4 s� %: - a� Street Scene Looking Westerly Along MacDonald Avenue Appraisal Company of Key West Page 79 Section XII SUBJECT PROPERTY PHOTOS View of the Subject Property Looking Northwesterly from MacDonald Avenue View of the Subject Property Looking Northeasterly Addenda Appraisal Company of Key West Page 80 Section XII SUBJECT PROPERTY PHOTOS View of the Subject Property Looking Northeasterly from MacDonald Avenue Addenda Appraisal Company of Key West Page 81 Section XII TAX INFORMATION SUBJECT PARCEL 44A99 Addenda DANISE D. HENRIQUEZ C F C 2010 Real Estate M 0 MNTY , P, 0144 E 1AX COLL NOTICE OF AD %LOREM TAXES AND NONAID VALOREM ASSESSMENTS A L7, E RPI AT E KEY N U 10BER 11 MKS 11 �A Plrr vc. --r F; 1 -9 YOF -Al 0 H-TRY LLr, -'U 1 446 C ;' j "', 'i b.e 1..'3 :51371 MACDONALD LLC -815 PEACOCK PLZ KEY WE-ST. FL :3�040-425v5 1`1 � S - 1? 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Q 1 f90.40 7 r, c rn FLOR I L)A KEG' ;a MU $QUITO CON TROL, 0.4096 1 90.407 z M C LOCAL ROAD PATROL LAW ENIF 0.3995 SO FL WATER UANAGEM ENT CHIT 0.25*9 19 j _ 1 c 1-1 1-17 D La OKEECHOBEE EMI N 0 1:90,407 2--- CA a rn r- LOWER & MI DDLE KEYS I- H 7 -� 41`-!� - 3 1 1:90,407 91 0 t Lo z EVERGLADES CONSTRUCTION :!RJT D. v r5 ,9 4 1 c 1-1 = 1-17 z M 18 M TOTAL M LLAGE AIEVALDREM TA.KESj n 0 NUN -,4 VALOR A 3-5 ESSM E N IS U N'T co LEVYING AUTHORITY RATE NO WADVALORI!Dfiff ASSE�ENT$ A 1140 So 1,R) C 0 N12 I N I= D TA X ES A ND AS S ESS rel ENTS F ° 5 som row" " I'm i erfi ifformalkn If pl:° V 2010 IFn � 2010 1 �2eb 26. _nil Mar 3 1, n 11 4 F :305-D Pay- M 2,102.54 1 —1 2,123.78 ) IF PAID BY— DANISE D. HENRIQUEZ, G.F.C. 2010 Rr--3I Est'-i-e -F-F '-.-A1r,T' I F.-J-F� t40TIC E 8F AD VALOREM TAX At,! D N VALOR E rvl AS SES S MEt4TS ALM RNATE KEY N U MBF R 1158585 2'r4f' 300C Of'-- 03567 2:5 %v LLC P 71 DONALD LLG 'I A' - C al 5 F, : ' F. T--. F' I- L,-L 1-4 r! " d - I f "3,J 5 Pa -55 KEY )NE -'L ':]? D4 � 4-1 r':-- '-'1 24, 4A j 0; 1 2' 1 00x'9 7 D.- CHE-t-Ka ON U.Sti BANK 8 ONLY TO DANIZZ D. -IUNIUO C.F.0 7AX COLLECTOR P.C. 150K 1120, KEY WEST, FL J-3U41-11 29 ff Pw4marke-d Cqr; "0.21 31, 2J11 ��3. 2 a r '-11 PINse Pa 2.060.0 7 21,051.30 7� ouuuiiuiiuuu OUE302123?a UOU0000001158585 0001 0 Appraisal Compan of Ke West Pa 82 Section XII TAX INFORMATION SUBJECT PARCEL 44B19 Addenda DANISE D. HENRIQUEZ C.F.C. 2010 Real Estate Mid 0MNW TAX bB!07A NOT OF AD VALOREM TAXES AND N VAL04REM ASSESSMENTS 1158593 110AL Nor Year�!0 Tv xvi Du e R ANN) 5 O F KEY VVE 5T IN r, 001 2447 ONOOOG356725 H- TRY LLC 5671 MAC DONALD AVE PO BOX 1�0�2 KEY WE-ST. FL :3�041 EK;31 LOTS 1:3 TH RU 16 STOC K 1$LAIq D MALON Eli SUR PE1-55 G74- 50005 OR325-131 6)l 7 OP 125- 3 1 2A5 ............... I rAXES TAXIN;3 A U-HOR 7Y WILLAGE RATE A.SSESSEDVALLE SCHOOL STATE LAW 1.'4440 EXEMPTIONAN10JN'T 420,035 TA XA HLE VALUE. TA X E,9 LEVI E D 0 420.0-5 -a16 SCHOOL LOCAL BOARL) 1.437{J5 4.n.();35 4 420.035 789.46 GENERAL REVENUE FUND I.0$71 420.0:36> Q 420.05 460.82 F&F LAW ENFORCE JAIL JUDICIAL 2.2060 4020,035 0 4'20.():35 926 W HEALTH CLINIC 0.0414 420,035 0 420.();35 17:39 GENERAL PURFO$E M;5TU 0.2502 420.0 5 Q 420.03:5 105.09 FLOR I DA KEG'S MO $QUITO CON TROL 0.4596 420.0 5 0 420.035 1 .05 M C LOCAL ROAD PATROL LAW ENIF 0.39:96 4210,035 D 420.035 16780 SO FL WATER WMIAGEM ENT DIST 0.25*9 4210,035 D 420,05 10707 OKEECHOBEE BASIN 0.2797 420.05 0 420.035 117.48 LOWER -& MI DOL E KEY S F I RE & AMC 2.2526 420.05 0 420.035 946.17 z EVERGLADES CONSTRUCTION PRJT 0.0894 4210,035 D 4 20.0 5 3755 n z C C) M T07ALMILLAGE 11.1539 AD MkLORIBM TUES $4.68503 M 0 NON-AD VALOREM ASSESSMENTS co LEVYING AUTHORITY RATE N0NkAD VALOREM A$SSS$MMTS A N10 U N T C0MRNM-rAxrn AND A&SE5SWIIEINTS 5 q 5 3 See vvo?m!iAde for �Mpuflwt worm*un If PC$Irnarked B 14ov 30. 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HENRIQUEZ, C.F.C. 2010 Rea Estate ,= "RQE(;QUWVTAB CO LLEQTOR HOME OF AD VALOREM TAXES AND INOWAD VALOREM AS$ES$NEHTS 11 x6 93 110AL 00124470000000356725 R AND S OF KEY VVEST INC 5671 MAC DONALD AVE H-TRY LLC PO COX 6032 SK;31 LOT ;$ 1:3 THRU 16 STOCK 1:5LANE) MAJLQNEY KEY WEST, FL 33041 SU S PSI -:55 G74-50VO:5 &l 7 OR525-3 I V15 ta CHECKS ON U.S. BANKS ONLY TO DAME � HENMUE7 CF.0 7AX COLLECTOR Ra BOX 1129, KEY WES FL 3304 W 1 29 If PwAmarke-d B Nov 30-10 10 1 Der, ,)l. 2010 1 JW 31. 2+011 1 F!.Gb 28. 2011 Mar 31, -)Oil F se Pay 4,497.16:3 4,544 4$ 4.5-91.3� 4,638.18 0000000000 0000468503 0000000001158593 0001 8 *Note: Tax assessment and burden includes Lot 16, which is not part of the subject propert Appraisal Compan of Ke West Pa 83 Section XII ZONING MAP Addenda Appraisal Company of Key West Page 84 Section XII FLOOD MAP AND PANEL FOR THE SUBJECT PROPERTY Prepared for: I to r I Wilco Valuations dba Appraisal Co. of Ke West 5671 MacDonald Ave Ydww.interflood.com ■ 1-800-252-6633 Stock Island. FL 33040-5918 IF r + _ � + �..� ! 'rte" " : �, �. - 2 `� - . � - . ZONE % AE 11 01116-o L-LA ADO 11 1 4#f 'a �4 [ a, �- �r , T 7 — XAI try A I F w 41 7ON: AF 1. 6 1 1 1 T IAWA FkV, F LOO D SCAP E IF 4 ) 4w" Fwd Hazards Map Map Numt>er I IF 626K Effective Date ZONE AE FebrLjar is 6. 005 A Monroe Count Unincorporated Aiea's,� 11 5129 4 L -56 AVII Gry -wa n-flory - I 37- 77TLOOD ww, ,., SKwdsgurce -z r- 9 SoveoeFmm- aftd or Fklmd-SOjrja A I -;-I'Ll e--.. r-wII 15,!,S!.228 3rvf 5 �5' 00w W,-. ---, 7 '- , 7 Addenda Appraisal Compan of Ke West Pa 85 Section XII PRO-RATION OF DEVELOPMENT RIGHTS P] & Envirmameutal 2798 Ovm= I 3i wa Suite 4 Mamtlhnn, FL 3 3050 Voice: ( 105) 2P-2500 FAX: (105 289-2 36 December 17,2010 Steve 'did MIGRM 5671 ,.Mac Domid LLC 20 Driftwood Drive Ke West FL 33 040 Dear Mr,'Eid, Bmr gjC Ma Healbff Cxnjdw:r, Dist a M&YoT No Tem David RiM Dh;L 4 Wien DiNL I Ga Dist 2 S Mw Dist. 5 We have evaluated the r b the oivni= of Jots 13-16, Block 31 of Malone Subdivislun to sell LDS 13, 14, and 15 (a portion of Real Estate Number 124470.00 W - 0000, ex clud to lot 16) and prorate the ROGO excmptiom and NROGO s foota exwptlon, dssociat with these 4 lots on a per lot basis. This would y ield 3 ROGO exeinption p lot and 6$8 squ= fixt per lot Th,� each -lot (13, 114, 15 and 16) are entitled to 3 ROGO examptiow And 689. s fed of I OGO exempfiam This is basedon t r , 9 ar 20, .hw� Pre-ApplicatiOn Mcx�,dng Letter Of Ubderft&Nfin for Loft 9, 12, 13-16 , id Block 31, Stock hlaM Real Estate Numbers DO-124550-ODDDO0 AND 00124430.000000 AND 001244-60-000000 AND 00124470-000000 AND 00124530.0000W. dated Nav=ber 10, 20(Aattach-ed hereto This Ictter is confirmufic)n of pr rights. I pira d e %r elo p ment i it is not intended to repesent %hat ina physial be plarx on the prcpe All other Federat State and CWnt development shall appl SM TuwnMe Dkedor of Plannin and EnviramnenW Resources Addenda Appraisal Compan of Ke West Pa 86 Section XII Addenda PRE-APPLICATION MEETING LETTER OF UNDERSTANDING d&MTJ&X,%TA_1Ea Sung 4W .798 nVers"s Ri Mast, r, Kwida 33CM voire. (w) 289-M FAX, (%5) 289-253fi NoveinbeT 10,.2C*4 Mr. Kit carm R&S Properties, h rc. 5671 Me Dondd AVe. Kt Wes FL 33041 Ma Dixit M. 8 Nis isict I Mayor Pro Temo ChtTk% McCa DWf i k: Comm. mull h E Ncjscm, rNmric.. 5 rarorn; C%sa Nau rft6pf 2 Comm. Ca P. Rkt, MI&L 4 SUBJECT: PRE-APPLJCATJON MEEMG LETTER OF UNDFIWI'ANDING FOR LOTS 9 12 13-16, 19 AND 20., HLA)CK 31, STOCK I REAL ESTATE NUMBERS 00124350,.000000 AND 00124430,OOWOO AND 0012446000000 AND 00124470.000000 AND 001.24530.000000. Dear Mr. Cwsao% JPuiswwt to Section 9 - 43 of tb c M owoe Cou nt Cod e, th N documen t sha] I cansfit We a I etter of uuders tenth n On October 28, 2W4, apre--appi i cat jor moferejocr, re pf di-a the. S'Iibj eCA ptoperl was beld in the Monroe Count P) i and -Evvironmantal Resourms Depirtment in.Marathon. aunmg Attender.s at the meetin included Mr. Kit rarwn, propert owftt; Mr. Stcve Eid Mr. . Bruce W I Wallace, Attorne (hcreafter referred to as The "applicant") and. Amf JoWawg semor Admirulstrator of Development Review; Andrew TIvette, Se Bjojo and Bcthan Wa LI. Staff l for opart . the P1 T)L Tnen Plma (hereafter wilectivel refe d to ac u an=9 Matexials presented prior to the meet n included: 0 Pre-appilcation conference Te form and 2) Boundar Surve of Block 31 lots 9, 12, 13-16,19 and 20 of ft Maloney Subdivisloin located on Stock Wand; and 1) Sketdi of the PmUflaw Site Plan for multifamil units-, and 4) Propert Record Cit &- for the subject parcel sda tcd 2004 and 5) Record of Code Enforccmw V101arfiOnS prepare d b Nanc Do ja Stniox Ip:SpecAm and 6) Lettzr of Understaudin pTevlonsl wfitten for the same site and dated l ar 23, 20W Pa Lat I GF I I Appraisal Compan of Ke West Pa 8 7 Section XII Addenda V PRE-APPLICATION MEETING LETTER OF UNDERSTANDING (Continued) 1� I At the pre-application meetin The ow were ;d i s cossed a adlor a apon: The applicant is interested in dernolishin t existin thirteen (13) trail or homes and six. (6) of tho ici (8) existin apartment. units. Two apartment units'were demolished 10 2002- accordin to permit numbers 0214" and 021-4443, ndhave not been replaced, In total, the appli=t is claimin twent Mir, (29) d units and is ptoposin to wiwiruct twent three (23) multi-fmil dwellin Links and retain one (1) existin strucWt for residential and/or commeTdal use. The re 1 1 1 - ma i ni n g dw r .1 l i n u n'ts will be us for- Timfer of ROGO Exemptions The followin table lists the structures that tai applicant is seekin a determhation from tine nila e Pla * g Dopartment as to their la establishment. Rea I E sia te, Numhe r Existin Dwellin Units (DU) & 2m mvciAl Spam Dwelfin with a Perrmk 'Units Claimed b Armmlk�q, t 78D 00124530.000000, 8 DU and I Cmmetcial 0 & I Commurcial 001244 '0, 11 DU 2 DIJ in 2002 13 DtJ 31 11 5 DTJ OO1.2.4460.QQM 1 Ou 0 - 00124430-ODDOW 5 DU 27 DU 0 2DU 2.9 DU Accord* to t he n baiiftcd site f lan the propert is approximatel 50.000 s feet. Thic M9 propr,rt 'is located at ph address 5671 and 5611 MacDonald Avenue. and is further described as Block 31, lots % 12, 13-16 19 20, PCB 1-55, Malone Subdivision, Stock Island, Monroe wftt Florida. The Rral Estate Numbers are 00124530.0000OO, 011 70. 00124460ACCOO amd 0012.4430.000000. 3) Punuant to Administrative Interpretatioin #03-108 (dated 10/22/2003) a landowner will rec-cive an excmpticw from the ROGO allocation system if -his/her property meets the fallowin test- Lawfull established a permit or other official approval from the Division r)f Gio wth Mana for the univ, or Counted 'n ROGO arc] 2010 Com 1 prehensive Plan – pwof that the residential unit(s) was in existence and included in the 1990 census. The ceizus Was used to determille the number of existin residential unit s that Is the bases of ROGO and If a P ermit or o Growth Mana approval is not avaiJahle, the followin ma be used to establish that the propert was lawfull esUblished: ,bier W phut showin thestructm in existence prior to 1986; or Count propert re rd card showin the rxistence of the unit or how area prior to 1 6.: or tifilit records for the period 1986-1991 that show the use bein senred. Pa 2 of 11 Appraisal Compan of Ke West Pa 88 Section XII Addenda PRE-APPLICATION MEETING LETTER OF UNDERSTANDING ( Continued ) Pufsoant to Section 9.5-4(D-31) MCC, the definitinn of a dwellin unit 'is one (1) or more roomsph arra to create a housekezpkin e stab fishment for iaccupanc b one (1) famil witti separate, toilct facifities. 11c abbreviation DUI shall mean "dweffin unit," Tho Plannin Department has deteffnined that thete are nineteen (19 la y estAblisbed dwellin units located On the subicct site and thm (3) com structures havin a NROGO exempt floor at ea of 7.,937 s f Tbe'methadu to and documen(s used LO estabtish. this are ondiwd below: Real Estate Number 00124530.MWOO, lots 19 and 20, is found to have ? ( 0 ) lawfull establis hed residential it and vwo (2) COMMerCial StrucLUMS with 5,1837 s feet of eammercial space. This determinaticm is based on a series of propert wcord c4uds, Wilil re words and a site visit conducted on November 8, 2004, o At the ro of the Plannin D artment, thet Florida Ke A Authorit (FKAA) provided -a letter that d=rneots the number of acmunts for 6aid lots and the date of activallun, The letter indicates that one (1) commetaial account was activated and the initial date of activation is 1957. Current and bistorical recorft sbow no msidendal accounts activated for said lots. o There are no its that docoment the current or historical number of dwelfin units on the pal. o Tbe- 7W4 propel record card indicates that onl two stniewres are locate(l oi i said lots and both are listed as commercial. Howcvcr, the applimt's exislilrig, - ske plan shows that third residential structum is l on LoL 19. Therc. Uc no records of its existence in the out pmperty r=md cards, utilit reewds, aerial P hotos or historical permits, and is thexafore deem-oil milawful. o A site visit conducted an November 9, 7-004, pt that none of ft- -existin str i l c lu res are used s olel y for coTnmercial purpow. This coatradrjetS the, information provided b the FKAA and t lie 2004 proper t teicord cwd� ■ The one stor structure loczied adjactilt to R-W ReAsa Number 00124350-OOOOM is now completel res al acid is siubdivtdod into five (5) residential units. The structure was built in 1948 and was vwA, as a Commercial Walehousc. 1he one stor stmcture that fionts MacDonald Avenue sfill possesses a cowtuerdal compone-nt, but a portion was converted into two (2) dwellixi vwks. The structure was used as a health diMc and a Cu" aii refu center and was built. in 1948. o In conclusion, onl hvO (12) of the three (3) structures that canentl exist on LWs parcel are lawfiffl established. 'be se two structures weye. WstoficaU used for commerclad purposes and were unlawfull convWcd Into dwellin Units. Dierefore, 5,183 s feet of cornmercial spau is deer W Non-m5ldrntial ROGO exempt and is permitted to be rebuilt or troinsf err ed to anodier %ite. RM Estate Number 0OIZ4470.000000, lots 13-16, is found to bave twelve (1Z) lawfull established residential. dwelUn units and 2,754 s fect of NROGO exempt floor W", ,Po 3 af I I Appraisal Compan of Ke West Pa 89 Section XII Addenda PRE-APPLICATION MEETING LETTER OF UNDERSTANDING ( Continued ) * The 1974 propert reterd card for said pa inckateg t one (Via) of the five convention-all built structurcs was used f6rzn=e rte aj pu m This Structure fronts MacDonald Avenue A nd is now housi for the mobile how e pffk's pr manager It 06ce acwmmodated Bj1j'):s Variet Store and was commaed to a *dentW dw. icix unit wit hout rem ll the beliefit of -a permit. 0 TIt Structure shall not be w-unted as a lawfull established dwellin unit. However, its floor area L)f 2,754 a feet as determine ti b the, 2004 and 1992 propert record card k) is &e-med NROGO exempt, * Pennit A-5315 dated Ma 24, 1979 The permit author its the replaament of thm (3) trailers from Lot. 1� u)d part of Lot 16. A site plan was Included and is drawn for lots 9 and 12-16. The 1979 site plan itidicates that on lots 13-16 thlere we fbur (4) apartment units that existed on the site at the time the permit was issued. The site L plan showin the propert existin structures ruatch those drawn on the 1979 site plan. ■ This permit assists in law-fiffl establ-isUa four ( 4) dwellin unlits on this pwceL * Permit 5 5 72 &ted Jul 18, 1979 a The permi it au thorizes dectrIM work for ei (18) 100 .gip WOM and subfeeds for onsite trailers. A site plan was included and is drawn for lots 9-1& F 'llic P ermit and site plan 'adicales that tbe electfical sexvice, was intend ed to service sa ixteen ( 1 6) m obile home s that wurc located on the applicant's propert ( lots 9, 12-16 ■ The applicant =entl has ei ( 8 ) mobike homes on said pand, This P ermit as M'ts in ostablishin that the ei (8) mobile home unit$ that carjentl exist on this patcel axe la it established. Real Estate Number 00124430.00ffffl., Lot 9, is found to have five. (5) lkwfull established residentW dwellin units. o Pem, it 5572 dated JM 18 79 im The i t authori= el ew i ca I work fo r ei (18) 100 amp servIMIS San 4 and subfeeds for onsite trailers. A its Pl Wag :uncluded and is drawn for tots 9-16. The 1979 site plan indicates that on Lot 9, there are two (2) Mobile homes, which coriespends to rLhe numb tr of mobile ho existin on site. This ptrinit assists 'M' lawfully cstablisbin Nvo (2) dwellin units oil this parcel. o Permit 8810000574 dated March 31, 1988 r it The permit m authorizes the up of el=AcA SerViCe t Min apadment buildin havin four ( 4 ) uxdts. Pa 4 of 11 Appraisal Compan of Ke West Pa 90 Section XII Addenda V PRE-APPLICATION MEETING LETTER OF UNDERSTANDING (Continued) The 1998 site plan indicates that the strucb=s has four (4) units, however a site. visit on November 8., 2004, provcd that the struetwe W" ■ divided into three units. Ibis permit in em with the site isit ass'sts in JawW V1 I J establisbi jzg three ( 3 ) dwellin units on this parcel- Re,a) Estate Nn 00124460.&MOO, Lot 12, is fou-nd to have two (2) lawfull established residential dwellin units, o Fe rml I A-5315 datM Ma 24. 1979 io The permit autborizes the rW, amment of threr. (3) trailers and the removal of one ( 1 ) trailer finm W 15 and part of let 16 for said Real estate Numb r. The 1979 site plan is for lots 9, 12-16 and in-dicates thnt two ( 2 ) mobile. hornes arc located an lot 12. ,a Permit 5572- dated Atl 18, 19-79 'I tti peri-nit authoi-W.s nkctfical work for ei ( 18 ) 10D amp services amd subfwAs fo,r onsite trailers. Tbo 1979 site plan drawn for loLs 9-16 indicatts Lha( on Ut 12 the are, two ( 2. ) mobile hom&i. In summar the followiti table Ouflin&s the numbcr of lawfull established dwell its and M9 amount of comm crc i ail floor am: K"I Estate Numbor J. 24530A00000 Units Oalmed b nt 8 DU & I Conuwrcial Uwe Dweflin U-nits ) DU Z LO 12 DU Uwful Commerrial Floor Airea .5 185 square feet 001.24470.00GGOO 1-1 DU 1 754 s fret — NIA G012446U00000 3 DU 2 DU 00124430,000,000 5 DU 5 DU K/A 1 29 Du 19 DU W This portion of the Code refers onl to residenfial structure&� the commurckl floor are a addremed later in The document. In summar the. applicant ma pursue the followin resident al redevelopment options: The apple Is permitted to a epta ReRl Estate Numbers 00124350.000000, 1 and 00124470.00CMO QcU 9, 12, 13-16) and construct Ame (19 dwellin its. PW50fll 4 man to MCC 9,.5-268, the owners of huid upon which a dwellin unit Ot a inobile home used as a principir, residence prior to the eff6efive date of the plan was ] A-A thO. effedive date, of this chapter shall beentided to a dcnn*L of one (1) d unit for each such unit in existenm on the effective date of Us chapter, There re, the dI ed densit for the prop""s land uw district is not apphicable for this development. The ap I plicaint ma -replace A dwellin units on the development site ffiat have been lawfull establishod, Appraisal Compan of Ke West Pa 91 Section XII Addenda PRE-APPLICATION MEETING LETTER OF UNDERSTANDING (Continued) ReOl Est8te lqumbet 00 124 p 5 lots 19 and 20, contains zero ( 0 ) dwell uni is applicant shiaU ac a ROGO allocation or Trander of ROGO Exemp I (rREs) if the wish to pro caed With Winstructin dwollin units on this por6cm of the site. 5) The Monroe Count La Use strict Map indicates the propert is located in the Urban Residenti a I Mobile Ho (LMA Wid use fiqnict. The propert Is Fixtare Land Use Map is 21 QUJM) district i MiUd Use/Commerd (MC). The app5cant was informBd that Lhr. rep Iaccment of the existin mobit c liornes iaiDd apartment units with multi-famil dwel!Un units , + Is riot Permitted in the URM land use district. Staff moommends t Is n d use map (zonin chan ftm URM to Mixed Use (MU), 'Whicb would allow the applicant to consider redevelopment of the propert with new corninexc*al and/or MWO-famil structures. Construction of multi -fa mfl dwtift,units is permitted as a nia conditional use In the MU land use distfict. The rcdavc1opmcnt Wo Is located on Block 31 of the Malone Subdivision and the Block contmns a mixture- of URM and MV lots. Lots 7, 81 10 and 11 ue desi MU and IoLs I throu 6, 9, and 109 12 throu 20 are desi as URM. 'lie MV boundar was extended to include lots 7, 8. 10 and 11 of Blodk 31 throu a land use map atneadment approved vin Boud of Co=t Con=issioo Resol loth lon Number 7,83-1 989, dated December 13,1989. Allached is a cop of the l use districL amendmcni. map, sheet number 576, wWcb ill ustmtes the district's boundar fincs. Pa 6 Gf. 1 2 Upon ad of a trap wnendment from URM to MU, the existin commercial floor area may be demolished and replaced without g oin g throu Lhe Non— Resi&nfifit I C IDI Growth Ordinances LOGO) perrnittin process. An iucrew in Lhe amount of canimercial floor area, g reat" than that wbich, has been lawfull established for this site, re an alloca tar n Wou NROGO. Based on Section 9-5424A(b)v the maximum amount of additional wn-resident ial floor area that can be allocated for an One site is 2,500 s feet. 71r, co=ercial space ma y ahso be demolished and transfermd to an efiffible, recciver site a=rdling to the criteria listed 1111 Section, 9.5-124.3 T& amount of lawfiffl estabUshed commercial floor area is 7,93? N uare feet, as dctermined b Monroe Cou Ott y Propert Reeord Cw utilit Words and histonical. -permits. The redevelopment potontial for the lawful commercial floor aTca is &% f6flows: 7) No Floor Area .Rado is listed for UFLM desi per operOes. Die land use district :abows low and medriam intensit uses tip to 2,5W s fit as a ma conditional usc.,, provided that the parwl of land on which the commercial, ret a. d ust is to be located abuts tJS-1. The e-A$ting COM-Mercial propert Is WS end a nun - confotmin use due to: JtK I On Off Of US-1. Secfiou 9.5-143 of the MCC states that n-conforrnill uses 111a WAtin1le oPerating with ordinar repaif, but the use ma riot be expanded, ralocatm on si Gir be Chan to an other use (i.e. a diffefeal commercial use,),., 1301 the new use conforms to the provisions of the land use distnict in which it is I ocateA Appraisal Compan of Ke West Pa 92 Section XII Addenda V PRE-APPLICATION MEETING LETTER OF UNDERSTANDING (Continued) The MU disc ct p s 4500 s feet of low and medium intep r j w=eTr rgai tal and offict use as of ri Comme,-rci,W floor wea that is g reater thm 2,500 s feet bat les-s than 10, OW s fit is permitted as a minor conditional us p yovided that thr parcel is accessibIc to US-1 b wa of an e xis t i - ng curb cut, si intersection or a curb alt that is separated ftom an Othcr culb cut on ft same side of US-1 b at least four htwdred fcct, 8) The applicant was Womed that the, up= s te for botli Mixcd Use and Urban ResideaW. Mobile Home land use d1wicts mi tweAt (20) percm-t of the subjezt propert g ross am as stated in stuns 9.5-2-62., As defined b Sect iot 9.5-4 (0-3 MCC, open s cc mom that Pordon Of aDy parcel Or am of 1 or water which is re q uired, to bt maintained sucb the axca within its boundaries is open andunobstructed from the ground to tM ak Lwd and wtbacks are considered open s w,. Thc- scapmg Pa open space ratio adja=t to the man is addressed law in his letter. - The open space rOquirement for the pi-0ject is 10,OW s fee,( and is Wculated as fWlows; 50,000 ( g tosg area of site) * 0.20 (open space ratio) ,= 10,000 s feet of pacc The applicant was informed, that the side y ard setback for the Uroan Residential Mobile Home (tM-M) land use district is a rn-inimunicombined total of fifteen (15 fee with ninnunuin side h ard tback of five -. , feet. The front and im y ard setbacks are both ten. (10) f8at e as State in Section 9.5-281 of the MCC. The front y ud Is detennined b the aiddres's of the parcel and the communit character. The Sabmitted site plan Is not drawjj to scale and therefore the re setbacks of be meastiW for compflance. Poor to appl for a ccmdidonal use or buildin pemit ilie site P 1w must be druwr to smla, The applicant was in th,at for attached housin in the Mixed Use (MU) land u&c distxict the side y ard setbWAS are not applicable. IU front and set back is twent five (25) fact and the rear Y &rd setback is twent (20) fact wq stated in Section 9.5-281 of the MCC. 10) 11z applicant was Informed that mu I t--i - famil dcvcloptnents r i ro 1.5 off stroct parldn spa ms per unit and ZO off stroat p kic spaces per sin famil homo, as stated in Sermon 9.5-352 MCC, Farkie sW -not be located M ft re setbacks. The site. plan shall be rovised to indicate ft localion for off street parkin to acwnimo8atr, the jroviscd n umbet of dwellin nnits If the applimt raow forty with the cDmrne redcvelopmen' then 345 spaces of off street pa'kin per 1.0,00 s kat of g mss floor area of cominerdal space sball lie, incorporated in to the re-VI red s ite plan, ;a] on with handicap parkin Page 7 of 11 Appraisal Compan of Ke West Pa 93 Section XII Addenda PRE-APPLICATION MEETING LETTER OF UNDERSTANDING (Continued) The applica n t was informd that thesut p ty is in au AR-9 flood zone as Indicated on Ulood Insurance Rate, Map ( FJRM ) panel 1728. Purest to Section 9.5-317 new 0nstTuctiGrk Or subst&ntial imProvernemt of existing slTuctitres. which b definidon pu rs,-u ant to Scctiou 9.54 - 19 MCC, means an repair, MCID [IS truedo 11 or in] pravemeot of a s Cost of which e or exceAs fift (50 percent of the pre,-destruction market value of the structure., as detemuned b the Office of the Tax Assmsm of Monroe Courity, tWw -the fiWshod floor levels -shall come into Wnformanw with the flood plain Mm rc As stated in Section 9,5-144 ordinar repair and Me an to tit e, existin struictures Is pemitted, 'however should there be an new ,u constmcdon or subs tanUal iMprovement made to the existin stmt -, the se re shall be brou into comphanc With W1 seefions of the MCC 12) The applicant was informed that new congtruction, at substantial iraprovenients of an commerci al, midusuial orother nonresidcntial stmetum witbin zoucs A1-30.. AV. and AR ( the applicant I's in an,AE-9 zonc an Lhe communit s fl ood in ratin map (FIM sWU have the lowca floor ( includin g basement elevated to or above the, hftse flood level or, to wiLb attendant utilit and sanitar facilities, b6 desi &o that below the baso flood level the strucWc is water-ti with walls sabstantiall impermeable to the passa 4 Stjag reg f of water and with strucWal component% 1haviri the capability o I h and h loads and effects of buo , TU applicant was informed that pursuant to Simon 9.5-3 17(b)(I)d- of ft M CC, kbf.' S below the lowest floor of an elevatW structure, as in a modular howc. S11811 be Used 1".1clusivel for paxkin d volikles, elevators, limited story ceess rposc I I i g e or buildin a pu s* A.s rc b Federal Emer Mana A EM 1, the Wound floor S f cnclosur" can be built to a maximum of two hundrM ninet (299) 41IRTa o pa, �jue materials. An remainin portion of an enclosed area of more that two hue -ni na om' ( 299 ) s feet shall onl be ea4osed witli screen or latticz. 13) The applicant was W Ithlant dve to the uni place-ment of bn.d use districts several district bouadu will be. re AJI of the re buffirs shall. Lie, Class "U" buffers. A glass "C' buffer ma vat M* width from ten ( 10) fast to twom five (25) feet. The width wW liltirmtel determ.�inc the amount of re ve tol - )c 1 )tanted within the buffer. The majorit of land use district 'boundaries are from URM to MU. These omur alon the western and so re propert Ruca of-lot Uffliet (1-9), alon the wulhern propert fine and al the eastern, half of the northem propert line of the lar parcel known as lots diirteen thing o six teen � alon the. i6aSterD propert lines of both lots nine (9) acid helve (12) as wrB as alairi tht,- wcstcrn propert fina,,Gf lot mine (9). Another class C" 1--Wmdar buffer is re alon the northern prope line of lot Wile. (9) as this is a boundar between URM and UC land use districts. As this is a fairl complex buffer re as it pertait"s to buffer pl ace tntnt Staff has prepared a basic inap displa the correct placement of the buffers. (see attached buffer map) Pa 8 cif 11 Appraisal Compan of Ke West Pa 94 Section XII Addenda PRE-APPLICATION MEETING LETTER OF UNDERSTANDING (Continued) 14 The app I=t wB8 informed that fcrr a PI CC fticludin six or more parkin spaces a par bm lot landscapin g plan *s Te liowever, Monroe Count Code dc)f s not contain a pnrkin 10t landscaping standard for the land usse district of URM and therefore rion shall be re in tW i The VPHCant Was informed dw t a sto miwater mana plan must be -comple to d and submitted with an application for development. This plan BbAl be Teviewed b the Environmental Resources staff for com w i current stormwater manapinent codes. 16 The appli Icant was info that stic trees would not be re as the internal roads propos6d wit] not be mainLained b M, onroe Coun q and therofore will not re street (tees, Shoold this plan of action chan one ( 1 ) street tme, native mop y , of a least twelve (1 2) feet -0 n. hei ght shal be re for ever 100 feet of road ftomp. 1-7) The. curmiat edition of the United Staws Fish and Wildlife Habitat Listin for -Monroe Count does not include an of die parcels subject to tinis proposal a's habitat which re coordivation itpon application for a buildin permit. This means additional coordination with the UnfteJ States Fish and Wfldli rvice will be not re to obtam', buildin permits on these parcels. (f th)"i J propert y is subject to a conditional usa approval, the Plannin Coninnission is ornpowamd under Section 9.5-63 to modif or den an application based on their review of thr, appm riateness of the proposed development within the context of surroundin properties and ,P compliance with Lhe LDRs and 2010 Comprehensive Plan. In Section 9.5-65 the flannin commission and the Plannin Director arc rc to consider all aspects of the developmzn impacts on the Communit and consistenc wltb Ilm g oals, objecOves and standards of the plan and LF)Rs before g rantin g condition W use approval, Rpproval with omditlons or denW of a projeeL 'I licrefoic, the intensities, densities and pos sib ilifies for setback waivers detailed W this LOIJ are subject to the, Plaio-ni ng CornmisLqion mid/or the Plannin Dui,ector conditional use rcview and approval. Pumuant to Section 96A3 of t tic Monroe Count I-And Dovelopmont Re (LDRs), y m = entitled to rel upon the representations set forth in Ws l of understandin as accurate. under the regulftfiODS currentl in effect, !his letter doeR not provide an vestin to the existin regulations, if the Plan or ERs = amended the propert and/or projea wi be re to be consistent with all g oals, ob ective and standards at the time. of develc approval. The Plannin Department acknowled that A items re as a part of the application for development 2 may not bave been addressed at the October 28t 2004 weetin and 1- 1 d 1 conse merves the ri for additional department comment. 'fie i rm-ation provie in nfo Uiis let ua ma be relied upon 4th the pteyfou Vn 9 di la, for a period of thzee y eaxii. 'nic Plan Ditector upon the r of ft landowner Tna rovirw and reafft= the representallonS set forth in this letter for an addition4period of time. 9 of Appraisal Compan of Ke West Pa 95 Section XII Addenda ��W I PRE-APPLICATION MEETING LETTER OF UNDERSTANDING (Contin We trust tbat this informaiton is of assistance. If y ou eve an q uestions re the contents of this letter, or if we ma fvAher assist y ou with y our pro pleW feel free tO CDnW our Marathon Ke office at (305 289-2500d. Sincerel Y OUIS, " K. Marlene Conawa Directot Plannin and Elivirotuumud Resourm Department raiser CC: Ervin Ifi Propert App i Timot J , McG-.Ikrr AICP, D kredor of Growth Mana men t Aref Joulani, St. Mministrafor of Devclopment Review Andrew Tfiv etto, Scmlor olo t W.than Wa Plaufter Ralph Gould Sr. Administratot Environmental Resources Ronda Norman, Director of Code Enforcement Pa 10 of I1 Appraisal Compan of Ke West Pa 96 Section XII Addenda PRE- APPLICATION MEETING LETTER OF UNDERSTANDING (Continued w to p MWW dWM A — w -- r I F i - h !Af AN ham 91 L. P ursuent ka Section . -2 to )( h) of tho Me mo* Co urAy Code, t h e ba u arl s of the Land 01strist Map ar* I n t6r rrtt to 4g lot -0 91 as I ab ove a nd hirlefiy de vi rrthed im _ - td to inclu& lots Trgr,10 & U, block 31 Malonoy subdiv 40VI 4 "On 1 4 rn PRT Shoo t# 76 �o* 101- g� "W'" Appraisal Company of Key West Page 97 Section XII Addenda PRE- APPLICATION MEETING LETTER OF UNDERSTANDING (Continued x 4 if r h l & Wd p a f" E Tnw-dod" ,=- Page 100f 1 Appraisal Company of Key West Page 98 Section XII ENGAGEMENT LETTER io APPRAISAL CO. 3229 Avenue Key Flatlet West, Florida 33, Suite #101 040 OF KEY WEST Telephone: (305) 296-4568 I Fax: ( 305) 296.0493 Website: fla-ke Email: jimCafla-ke December 17, 2010 Mr. Jerr Barnett Monroe Count 305-295-4321 Email: bamett-jerr Subject: Lots 12,13,14 & 15, Block 31, Malone Subdivision, PB 1 -5 5 5671 MacDonald Ave. Stock Island Ke West, FL 33040 Dear Mr. Barnett; Pursuant to y our re please find our proposal outlined, and a list of the re documents in order to perform the assi The appraisal 'inspection will be scheduled upon receipt of the re documents. Purpose: [X ] Market Value IX I "As Is" I I "As Proposed" Goin - Concern Value Upon Completion Upon Stabilization Prospective Value Market Value for FEM.A Replacement Cost for Insurance purposes Business Valuation Interest: Fee Simple [ X ] Leased Fee Function: Evaluation of subject propert for: [X ] Possible Purchase Foreclosure Refinance [ ] Estate Partnership Bu ] Insurance Fee: $ 2,200 for 2 ori reports. Additional Ori _ @ $50.00 each. Time: Completion 3 weeks from receipt of all re documents to be provided b the owner/client. Addenda Appraisal Compan of Ke West Pa 99 Section XII Mr. Jerr B arriett Pa 2 Re Documents: [X ] A Si Cop of this En Letter [ ] Le Description [X ] Most Recent Surve if available Biolo Stud Buildabilit Letter Warrant Deed [X ] Environmental Report, if available [X Cop of an existin Leases, if applicable [X Cop of Occupational Licenses [X] Letter of Development Ri Determination from Monroe Count if applicable (We have a cop of a November, 2004 letter) [ ] Cop of Contract for Sale and Purchase, if applicable Plans and Specifications, if available Construction Costs Income and Expense Statements for y ears Rate Cards for y ear(s) Balance Sheets for ^ y ear(s ) Current Rent Roll Current Wind, Fire & Flood Insurance Premiums Appraisal Report: Appraiser a to prepare in writin a narrative Appraisal Report in conformit with USPAP, (Uniform Standards for Professional Appraisal Practice). [ ] Restricted Use Report [X ] Summar Report [ ] Self-Contained Report The report shall conform to an professional or to which the Appraiser ma belon The appraiser shall consider, if applicable, at least the three traditional approaches to value, Cost Approach, Direct Sales Comparison Approach and Income Approach, plus an other approach deemed appropriate b the Appraiser. Conditions: The Appraisal Report shall be subject to the Appraiser's assumptions, conditions and limitations standard. The Appraisal Report will be prepared for the sole and exclusive use of Client. The appraisal report shall not be reproduced, printed or distributed in an manner without written consent of Appraiser, as it consists of "trade secrets and commercial and financial information" which is privile confidential and exempted from disclosure. Liti In the event Appraiser is called upon voluntaril or otherwise, to testif in court or deposition re the Appraisal Report herein, Client a to pa an additional sum of $200.00 per hour plus Appraiser's usual and customar expenses, minimum of 2 hours. Addenda Appraisal Compan of Ke West Pa 100 Section XII Mr. Jerr Barnett Pa 3 Pa The a fee shall be paid in full before the report is released. Please si and return this a with the re information so that we ma schedule the inspection. Quotes are valid for 48 hours. If have an q uestions, please do not hesitate to call me. Thank y ou for considerin our Finn to provide y ou this service. For q uestions concernin the appraisal report, contact Jim or Ka at 3229 Fla Avenue, Suite 101, Appraisal Compan of Ke West, phone (305) 296-4568. APPRAISAL COMPANY OF KEY WEST B James E. Wilson, President State-Certified General Real Estate Appraiser License No. RZ-0002164 Accepted b S S' na 1 1 ? � e Name. Jets 1q, Bar rze__77_ Date: —// JW/klc GAEn LeUers\Bamett.wpd Addenda Appraisal Compan of Ke West Pa 101 Section XII 2. Ibid, Page 10. 3. Ibid, Page 30. 4. Ibid, Page 73. 5. Ibid, Page 78. 6. Ibid, Page 111. 7. The Appraisal of Real Estate, 13" Edition, 2008, Page 22 8. Ibid, Page 187. 9. Ibid, Pages 278. Addenda Appraisal Company of Key West Page 102