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Item C42BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: May 15, 2013 Division: Engineering & Public Works Bulk Item: Yes X No _ Department: Public Works Staff Contact Person/Phone #:Wilson (453-8797 AGENDA ITEM WORDING: Approval of sale of County property to Islamorada, Village of Islands, legally described as Lot 1, 2, and 24, Block 11 of Key Heights Section Two, (RE#00417340-000000), located at 103 Key Heights Drive, Islamorada, at the NW corner of the intersection of US-1 and Key Heights Drive for use as a sewer pump station by the Village; approval of a Resolution authorizing the sale as prescribed by statute, the purchase and sale contract with the Village, and execution of deed, seller's affidavit, and other documents as required for completion of the transaction as approved by the County Attorney. The proposed sales price including transfer of the eight (8) Transient Residential Units (TRU) that are legally established on the property is $xxx,xxx. ITEM BACKGROUND: The Village of Islamorada's sewer system design requires a pump station in the area of the Plantation Key Government Center property. Several options have been considered over the last several years including locating it on the site of the existing on -site sewer plant and on a County owned property at the intersection of US-1 and Lysiloma Lane. The selected site is used only for equipment storage and initial findings of the County wide space utilization study is already pointing to a conclusion that that storage site would be best relocated further north. Interim storage for the equipment is available on the existing property behind the Spottswood Building with minimal impact on operations. PREVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: TOTAL COST: NONE INDIRECT COST: Staff Time BUDGETED: Yes No X DIFFERENTIAL OF LOCAL PREFERENCE: COST TO COUNTY: N/A SOURCE OF FUNDS: N/A REVENUE PRODUCING: Yes X No AMOUNT PER MONTH Year APPROVED BY: County Atty OMB/Purchasing Risk Management DOCUMENTATION: Included X Not Required DISPOSITION: AGENDA ITEM # Revised 7/09 RESOLUTION No. -2013 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 103 KEY HEIGHTS DRIVE, LEGALLY DESCRIBED AS LOTS 1,2, AND 24, BLOCK 11 OF KEY HEIGHTS, SECTION TWO ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 3, PAGE 159 OF THE PUBLIC RECORDS OF MONROE COUNTY, FLORIDA, TO ISLAMORADA, VILLAGE OF ISLANDS; AUTHORIZING THE MAYOR AND MAYOR PRO TEM, CHAIRMAN AND VICE — CHAIRMAN RESPECTIVELY TO EXECUTE DOCUMENTS TO CONVEY THE PROPERTY AND AUTHORIZING THE COUNTY ADMINISTRATOR TO EXECUTE ANCILLARY CLOSING DOCUMENTS WHEREAS, Monroe County (County) owns real property within the municipal limits of Islamorada, Village of Islands (Islamorada), located at 103 Key Heights Drive legally described as: Lots 1, 2, and 24, Block 11, of KEY HEIGHTS, SECTION TWO according to the plat thereof, recorded in Plat Book 3, page 159, of the Public records of Monroe County, Florida (Property) having Parcel ID# 00417340-000000; and WHEREAS, Islamorada, Village of Islands, is a Florida municipal corporation; and WHEREAS, the County may convey the Property to a municipality with an accompanying resolution pursuant to Florida Statute Sec. 125.38; and WHEREAS, the Property is currently used by the County for equipment storage which would be better located elsewhere for County use; and WHEREAS, Islamorada has applied to purchase the Property for a pump station site for its wastewater treatment system and the County is satisfied that the property is necessary for such use; and WHEREAS, the County no longer has a need for the Property; and Final Resolution Sale 103 Key Heights Drive WHEREAS, the price agreed to by the County and Islamorada is $ NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: 1. The Board approves the sale of the Property to Islamorada, Village of Islands, for the aforementioned sum pursuant to the Purchase and Sale Agreement attached hereto. 2. The Mayor/Chairman or Mayor pro tem/ Vice Chairman of the Board of County Commissioners of Monroe County is authorized to execute those documents necessary to convey the Property. 3. The County Administrator or his designee is authorized to execute ancillary documents as necessary for, or at, the closing transaction to carry out the purpose of this Resolution and facilitate the sale and closing of the Property including any personalty. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida at a regular meeting held on the day of .2013. Mayor George Neugent Mayor pro tem Heather Carruthers Commissioner Danny L. Kolhage Commissioner David Rice Commissioner Sylvia Murphy MONROE COUNTY BOARD OF COUNTY COMMISSIONERS By Attest: AMY HEAVILIN, CLERK Mayor George Neugent By Deputy Clerk %10, IROE COUNTY ATTORNEY PPROV _D AS 0 FORM- SUSAN RC GRI SLEY Final Resolution ASSISTANT COUNTY ATTORNEY Sale 103 Key Heights Drive �`-[Z) .- % Purchase & Sale Agreement and Deed to follow SELLER'S NO -LIEN, POSSESSION GAP AND FIRPTA AFFIDAVIT STATE OF FLORIDA SS: COUNTY OF MONROE ) BEFORE ME, sworn, deposes and states that: the undersigned authority, personally appeared _ (hereinafter referred to as "Affiant"), who by me being first duly 1. That Affiant is the of the BOARD OF COUNTY COMMISSIONERS, on behalf of MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida ("the County"), and has personal knowledge of the matters set forth herein and is authorized to execute this Affidavit on behalf of the County. 2. That the County is the owner ("Owner) of fee simple title to the real property located in Monroe County, Florida, more particularly described as: Lots 1, 2 and 24, Block 11, KEY HEIGHTS, SECTION TWO, according to the plat thereof, as recorded in Plat Book 3, Page 159, of the Public Records of Monroe County, Florida (the "Property'). 3. That there are no mechanic's liens under Chapter 713 of the Florida Statutes filed against the Property or any portion thereof; that there have been no repairs, improvements or other work done to or labor, materials or services performed upon the Property or any portion thereof for which any or all of the cost of the same remains unpaid; and that no person, firm or corporation is entitled to a mechanic's lien against the Property or any portion thereof under Chapter 713 of the Florida Statutes. 4. That County/Owner is in exclusive possession of the Property and no person, firm or corporation has any interest, right or claim of possession, or contract right with respect to the Property or any portion thereof which is not a matter of record in the Public Records of Monroe County, Florida, and there are no facts known to Affiant which would give rise to such a claim being asserted against the Property or any portion thereof. 5. That there are no unsatisfied judgments or any federal, state or county tax deficiencies, which are alien against the Property or any portion thereof. 6. That the Property is free and clear of all mortgages, liens, taxes, assessments, fees, and encumbrances whatsoever, except for. (a) real estate taxes for 2013 and subsequent years, to the extent applicable to the Property; and (b) those matters appearing as exceptions to title in the title commitment issued on March 31, 2013, by Chicago Title Insurance Company (the "Title Company"). 7. That there are no actions or proceedings now pending in any state or federal court to which the County is a party which would affect the title to the Property or any portion thereof. 8. That to Affiant's knowledge, there are no unrecorded easements or claims of easements affecting the Property or any portion thereof. 9. Section 1445 of the Internal Revenue Code provides that a transferee (buyer) of a U.S. real property interest must withhold tax if the transferor (seller) is a foreign person. To inform the Buyer that W:\103 Key Heights Drive\35F589902-Sellers Affidavit - County Form (2) 05062013.doc 1 withholding of tax is not required upon the disposition of a U.S. real property interest by the County, Affiant hereby certifies the following: 9.1. The County is not a foreign person, foreign corporation, foreign partnership, foreign trust, or foreign estate for the purposes of U.S. income taxation (as those terms are defined in the Internal Revenue Code and Income Tax Regulations). 9.2. Affiant understands that this certification be disclosed to the Internal Revenue Service by the transferee and that any false statement contained herein could be punished by fine, imprisonment, or both. 10. That there are no matters pending against the County that could give rise to alien that would attach to the Property or any portion thereof between March 31, 2013, and the recording of the Deed from the County to Islamorada, Village of Islands, a Florida municipal corporation ("Grantee"), and that the County has not and will not execute any instrument that would adversely affect the title to or transfer of the Property or any portion thereof from the County. Affiant recognizes that Grantee and the Title Company, are materially relying on the veracity of the contents of this Affidavit, and that this Affidavit is being given for the purpose of inducing (a) Grantee to part with valuable consideration and consummate the purchase of the Property from the County, and (b) the Title Company to issue a policy of title insurance to Grantee in connection with the conveyance of the Property from the County to Grantee. In this regard, Affiant represents on behalf of the County that the statements contained herein are true and correct in all respects. FURTHER AFFIANT SAYETH NAUGHT. MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida By: MONROE COUNTY BOARD OF COUNTY COMMISSIONERS By: _ Name: Title: ATTEST: Amy Heavilin, Clerk of Circuit Court Deputy Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY: l County Attorney r W:1103 Key Heights Drive\35F589902-Seller's Affidavit - County Form (2) 05062013.doc 2 STATE OF FLORIDA ) SS. COUNTY OF MONROE ) The foregoing instrument was acknowledged before me this day of 2013, by , as of the BOARD OF COUNTY COMMISSIONERS, of MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida, on behalf of the County, who (check one) [ ] is personally known to me or [ ] has produced a Florida driver's license as identification. [SEAL] Notary Public, State of Florida Print, Type or Stamp Name of Notary Public Commission No. Commission Expires: W:\103 Key Heights Drive\35F589902-Sellers Affidavit - County Form (2) 05062013.doc 3 County's Appraisal 103 Key Heights Dr, Key Largo, FL 33070 SUMMARY APPRAISAL REPORT REAL ESTATE APPRAISAL Of 103 Key Heights Dr, Key Largo, FL 33070 As of April 16, 2013 Prepared For Monroe County Project Management 1100 Simonton St, 2nd Floor, Key West, FL 33040 Prepared by APPRAISERS OF THE KEYS Kevin Talbott, SRA Nicholas Farrar MRICS File Name: 10232 Order #: 00044564 Appraisers of the Keys Page 1 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Appraisers of the Keys 3208 Flagler Ave www.AppraisrsoftheKeys.com 305 296 0831 Key West, Fl. 33040 Fax: 305 296 3717 aokreal@aol.com April 23, 2013 Monroe County Project Management, 1100 Simonton St 2nd Floor, Key West, FL 33040 Re: Summary Appraisal Report, Real Estate Appraisal 103 Key Heights Dr, Islamorada, FL, 33070 File Name: 10233 ; P.O #00044564 Dear Sir/Madam: At your request, I have prepared an appraisal for the above referenced property I certify that I have no present or contemplated future interest in the property beyond this estimate of value. The appraiser has performed no prior appraisal or other services regarding the subject within the previous three years of the appraisal date. The intended use is to determine market value. The intended user is the client. (Monroe County Project Management) The sales comparison approach has been developed and is a good indicator of value due to adequate data and recent sales of similar properties in the three years. The income approach has been developed as there is adequate data to determine market values. The cost approach was not developed due to the difficulties in determining depreciation, an insurance cost has been provided. Your attention is directed to the Limiting Conditions and Assumptions section of this report (page 8). Acceptance of this report constitutes an agreement with these conditions and assumptions. In particular, I note the following: Hypothetical Conditions: None Extraordinary Assumptions: None Appraisers of the Keys Page 2 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Based on the appraisal described in the accompanying report, subject to the Limiting Conditions and Assumptions, Extraordinary Assumptions and Hypothetical Conditions (if any), I have made the following value conclusion(s): Current As Is Market Value: The "As Is" market value of the Fee Simple estate of the property, as of April 16, 2013 is $621,000 (Six Hundred and Twenty One Thousand Dollars) The subject is currently owner occupied and not rented and therefore is no leased fee value. Exposure time 1Preceding April 16, 2013 would have been 6-9 months and the estimated Marketing time as of April 16, 2013 is 6-9 months. Respectfully submitted, Appraisers of the Keys Kevin Talbott, SRA CertGenRZ2139 Exposure Time: see definition on page 7. Marketing Time: see definition on page 6. Appraisers of the Keys Page 3 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 TABLE OF CONTENTS Summary of Salient facts and conclusions Definitions.................................................. Limiting Conditions and Assumptions ....... Scope of Work ........................................... Valuation Analysis ..................................... Premable................................................... Market analysis .......................................... Area Analysis ............................................. Neighborhood Analysis .............................. Location Map ............................................. Identification of Subject ............................. Site Description .......................................... Zoning........................................................ Taxes......................................................... Aerial and Plat ........................................... Description of Improvements ..................... Highest and Best Use ................................ Subject Photographs ................................. Valuation Methodology .............................. Sales Comparsion Approach ..................... Sales Comparables................................... Sales Comparables Map ........................... Sales Analysis Grid ................................... Comparable Sale Adjustments .................. Reconciliation of Sales Approach ............. Transferable Development Rights ............. Income Approach to Value ....................... Reconciliation of Income Approach .......... Final Reconciliation .................................. Opinion of Marketing time ......................... PRIVACY POLICY NOTICE ...................... Certification ............................................... Addenda.................................................... ..5 ..6 ..8 10 11 12 13 14 22 24 25 26 27 29 30 31 32 34 44 45 46 51 52 53 54 55 57 59 60 61 62 63 64 Appraisers of the Keys Page 4 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Property Type Single story CBS building currently used a office/storage for the Monroe County Public works department. The unit was originally a old motel and is sub -divided into old motel rooms and offices. Site Size 12,600 square feet. 7,800 square feet. 7,200 square feet. Total — 27,600 square feet GROSS BUILDING AREA 2,411 square feet (site measurements) NET RENTABLE AREA 2,411 square feet (site measurements) LOCATION 103 Key Heights Dr Islamorada, Florida, 33070 PURPOSE OF REPORT Market Value of the Fee Simple title for internal purpose for a proposed transfer of interest. EFFECTIVE DATE April 16th 2013 INSPECTION DATE April 16th 2013 RECONCILED VALUES Total via Sales Comparison Approach $621,000 (including the eight ROGO units) Total via Income Approach NA Appraisers of the Keys Page 5 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Definitions Market Value:3 Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) Buyer and seller are typically motivated; (2) Both parties are well informed or well advised, and acting in what they consider their own best interests; (3) A reasonable time is allowed for exposure in the open market; (4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. A Fee Simple estate is defined 2 as: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. A Leased Fee interest is defined 2 as: A freehold (ownership interest) where the possessory interest has been granted to another party by the creation of a contractual landlord -tenant relationship (i.e., a lease). Marketing Time is defined 2 as: An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of the appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of the appraisal. Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions" address the determination of reasonable exposure and marketing time. ' Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010). Appraisers of the Keys Page 6 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Exposure Time is defined 2 as: 1. The time a property remains on the market. 2. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. See Marketing Time, above. Gross Building Area (GBA): Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above -grade area. This includes mezzanines and basements if and when typically included in the region.2 Rentable Area (RA): For office buildings, the tenant's pro rata portion of the entire office floor, excluding elements of the building that penetrate through the floor to the areas below. The rentable area of a floor is computed by measuring the inside finished surface of the dominant portion of the permanent building walls, excluding any major permanent penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice .2 Gross Leasable Area (GLA): Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces .2 As Is Market Value The estimate of the market value of the real property in its current physical condition, use and zoning as of the appraisal date .2 Stabilized Value Stabilized value is the prospective value of a property after construction has been completed and market occupancy and cash flow have been achieved.4 As Complete Value The prospective value of a property after all construction has been completed. This value reflects all expenditures for lease -up and occupancy that may be expected to have occurred at that point in time, which may or may not put the property at stabilized value. 4 Narrative Lcom. Thomas W. Armstrong, MAI Appraisers of the Keys Page 7 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Limiting Conditions and Assumptions Acceptance of and/or use of this report constitutes acceptance of the following limiting conditions and assumptions; these can only be modified by written documents executed by both parties. This appraisal is to be used only for the purpose stated herein. While distribution of this appraisal in its entirety is at the discretion of the client, individual sections shall not be distributed; this report is intended to be used in whole and not in part. No part of this appraisal, its value estimates or the identity of the firm or the appraiser(s) may be communicated to the public through advertising, public relations, media sales, or other media. All files, work papers and documents developed in connection with this assignment are the property of Appraisers of the Keys. Information, estimates and opinions are verified where possible, but cannot be guaranteed. Plans provided are intended to assist the client in visualizing the property; no other use of these plans is intended or permitted. No hidden or unapparent conditions of the property, subsoil or structure, which would make the property more or less valuable, were discovered by the appraiser(s) or made known to the appraiser(s). No responsibility is assumed for such conditions or engineering necessary to discover them. Unless otherwise stated, this appraisal assumes there is no existence of hazardous materials or conditions, in any form, on or near the subject property. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, was not called to the attention of the appraiser nor did the appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test for such substances. The presence of such hazardous substances may affect the value of the property. The value opinion developed herein is predicated on the assumption that no such hazardous substances exist on or in the property or in such proximity thereto, which would cause a loss in value. No responsibility is assumed for any such hazardous substances, nor for any expertise or knowledge required to discover them. Unless stated herein, the property is assumed to be outside of areas where flood hazard insurance is mandatory. Maps used by public and private agencies to determine these areas are limited with respect to accuracy. Due diligence has been exercised in interpreting these maps, but no responsibility is assumed for misinterpretation. Good title, free of liens, encumbrances and special assessments is assumed. No responsibility is assumed for matters of a legal nature. Necessary licenses, permits, consents, legislative or administrative authority from any local, state or Federal government or private entity are assumed to be in place or reasonably obtainable. It is assumed there are no zoning violations, encroachments, easements or other restrictions which would affect the subject property, unless otherwise stated. The appraiser(s) are not required to give testimony in Court in connection with this appraisal. If the appraisers are subpoenaed pursuant to a court order, the client agrees to pay the appraiser(s) Appraisers of the Keys's regular per diem rate plus expenses. Appraisals are based on the data available at the time the assignment is completed. Amendments/modifications to appraisals based on new information made available after the appraisal was completed will be made, as soon as reasonably possible, for an additional fee. Appraisers of the Keys Page 8 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Americans with Disabilities Act (ADA) of 1990 A civil rights act passed by Congress guaranteeing individuals with disabilities equal opportunity in public accommodations, employment, transportation, government services, and telecommunications. Statutory deadlines become effective on various dates between 1990 and 1997. Appraisers of the Keys has not made a determination regarding the subject's ADA compliance or non-compliance. Non- compliance could have a negative impact on value, however this has not been considered or analyzed in this appraisal. Appraisers of the Keys Page 9 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Scope of Work According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser's responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider: • the client and intended users; • the intended use of the report; • the type and definition of value; • the effective date of value; • assignment conditions; • typical client expectations; and • typical appraisal work by peers for similar assignments. This appraisal is prepared for Monroe County Project Management. The problem to be solved is to estimate the'as is' market value of the subject property as of April 16th, 2013. The intended use is to determine market value for internal purposes for possible sale. This appraisal is intended for the use of the client. SCOPE OF WORK Report Type: This is a Summary Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2- 2(B). This format provides a summary of the appraisal process, subject and market data and valuation analyses. Property Identification: The subject has been identified by the legal description and the assessors' parcel number. Inspection: A complete exterior and interior inspection of the subject property has been made, and photographs taken. Market Area and Analysis of A complete analysis of market conditions has been made. Market Conditions: The appraiser maintains and has access to comprehensive databases for this market area and has reviewed the market for sales and listings relevant to this analysis. Highest and Best Use Analysis: A complete as vacant and as improved highest and best use analysis for the subject has been made. Physically possible, legally permissible and financially feasible uses were considered, and the maximally productive use was concluded. Appraisers of the Keys Page 10 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Valuation Analysis Cost Approach: A cost approach was not applied and has not been developed, due to difficulty in estimating depreciation. An insurable cost has been included. Sales Comparison Approach: A sales approach was applied as there is adequate data to develop a value estimate and this approach reflects market behavior for this property type. Income Approach Hypothetical Conditions: Extraordinary Assumptions The income approach was not developed as there is inadequate data due to the fact these properties are primarily owner occupied. • None • None Appraisers of the Keys Page 11 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Preamble. The property being appraised consists of a single story commercial building located on a corner lot with frontage onto Key Heights Dr and US #1 Highway, aka Overseas Highway situated in the Village of Islamorada at mile marker 89 and is currently operating as a store/offices for the Monroe County Public Works Department. The property is located at 103 Key Heights Dr, Islamorada, Florida, 33070. The appraisal assignment is to estimate the current Market Value of the unencumbered Fee Simple Title to the property for internal purposes. The property is not rented there is no leased fee interest. Our investigation and analysis of the property included but was not limited to the following: • An internal and external inspection of the subject property and its site. • A detailed Market analysis was performed to determine market value via obtaining sales of comparable properties. The value conclusions set forth herein is predicted upon current market conditions as they can be recognized and interpreted. Appraisers of the Keys Page 12 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Market Area Analysis. Area Description & Boundaries The neighborhood boundaries are the Atlantic Ocean to South, Gulf of Mexico to North, Marathon the West and Key Largo to East. The subject is located at mile marker 89 on a corner lot with frontage on US#1 Highway (aka Overseas Hwy) and Key Heights Dr, within the Village of Islamorada in the Florida Keys. The Florida Keys are a series of islands connected by bridges which connects mainland Florida in the North to Key West in the Southwest. The subject is located in an area containing a number of different property types, including single family, retail, office and public buildings. Area & Property Use Characteristics Up Stbl Dn Location Urban x Suburban Rural Population Trend x Build Up Over 75 % x 25 % to 75 % Under 25 % Employment Trend x Built Up Fully Dev. Rapid x Steady Slow Personal Income Level x Property Values Increasing x Stable Declining Retail Sales x Demand/Supply Shortage In Balance x Over Supply New Construction x Vacancy Trend Increasing x Stable Declining Vacancy Trend x Change in Economic Base rlLikely x Unlikely rITaking Place Rental Demand ri x ri Land Use Trends Supply/Demand Present Land Use Under In Bal. Over Vacancy 50% 1 Family x 10% 15% Retail x 10% 5 % Multifamily x 10 15% Office x 10% 5 % Industrial x 10 10% Vacant x 100 Change in Land Use Likely Not Likely x Taking Place Land Use 01 Family ■ Retail Multifamily OOfFlce 0 Industrial ■ Vacant Land uses in the neighborhood consist of a mixture of single family homes, retail, commerical, hotels and motels and public buildings. Age Range for Subject Property Type 1944 to 2009 Adjacent Property Use Adjacent property uses include a mixture of commerical, retail and single family homes. Appraisers of the Keys Page 13 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Area Analysis State Data The State of Florida has increased rapidly in population from 9,746,000 in 1980 to 16,396,515, in 2007 to 18,801,310 as of the 2010 Census Data. Florida in the past has been known principally for its tourist attractions, citrus, and winter produce. In addition to being a year-round resort area, the State has experienced an influx of growth of industry and manufacturing since World War II. Florida is now less dependent upon tourism which indicates a more stable year-round economy. The trend of the Florida economy generally parallels that of the nation with favorable future economic forecasts. Monroe County Data Monroe County stretches 150 miles south and west of Miami and Miami -Dade County along a series of islands or keys connected by 42 bridges carrying U.S. #1 (Overseas Highway) to terminus Key West, the County seat. Total usable land area scattered over the larger keys is about 100 square miles, which includes Key West's 6+ square miles. Of these 100 square miles, only 25% is improved. However, most of the 75% vacant land is not develop able, meaning it is wetlands, mangroves, or native areas protecting endangered species of birds, animals, plants and marine life. Virtually all of this land is 0 to 18 feet above mean high water and classified within the FEMA 500 year flood hazard zone. The geology is mostly oolite (calcium carbonate granules) and coral rock. Tropical vegetation covers surface areas with a wide assortment of grasses, vines, shrubs and trees such as palms and pines. The shoreline is extensive and nearly all in mangroves, a protected species. Sand beaches are few and are usually found in five or six state parks. On the Atlantic Ocean or Florida Straits side of the Keys is a string of barrier reefs four to six miles off -shore with the axis of the Gulf Stream two to four miles beyond, flowing northward. This band of turquoise and blue water contains some of the finest sport fishing in the world. Snorkeling and scuba diving are very popular, especially at John Pennecamp and Looe Key State Underwater Parks. Monroe County is the southernmost of Florida's 67 counties beginning at the Miami -Dade County line about 40 miles south of Miami, extending west and north to include the Everglades National Park and part of the Big Cypress National Preserve, and stretching 120 miles south and west along the largest of some 800 islands or Keys across 42 bridges carrying U.S. #1 (Overseas Highway) to terminus in Key West, the County seat. Total county area is 1,788 square miles, 1,672 square mile of which is national park and preserve. Unincorporated public and private usable areas are 94 square miles plus 6.25 square miles in the City of Key West, 4.87 square miles private and 1.4 square miles military. There is another 116 square miles in offshore Islands. His tory When the first Spanish explorers approached the Florida shores in the 16th century as they searched for rumored gold and eternal youth, a number of native Indian tribes had long resided throughout the peninsula and on its surrounding islands. The southernmost regions were dominated by the Tequesta's and the Calusas, who thrived on the abundance provided by the sea and the rich coastal lands. Like the other early Florida tribes, the Tequestas and Calusas eventually disappeared with the coming of Western civilization and its accompanying diseases and conquering spirit. Some of the void was filled, though by other natives, Creek Indians who slowly moved into the southern states. They were neither welcomed nor beloved by the European and American settlers. They came to be called "Seminoles", a name perhaps corrupted from the Spanish word cirnarron, meaning "wild" or from the Creek words ishti semoli, meaning "wildmen" or "outlanders" or "separatists". Appraisers of the Keys Page 14 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 One contemporary chronicler of explorer Ponce de Leon, observing the chain of islands on the horizon, said they appeared as men who were suffering; hence they were given the name Los Martires or "the martyrs." No one knows exactly when the first European set foot on one of the Keys, but as exploration and shipping increased, the islands became prominent on nautical maps. The nearby treacherous coral reefs claimed many actual seafaring "martyrs" from the time of early recorded history. The chain was eventually called "keys", also attributed to the Spanish, from cayos, meaning "small islands". In 1763, the Spanish ceded Florida to the British in a trade for the port of Havana. The treaty was unclear as to the status of the Keys. An agent of the King of Spain claimed that the islands, rich in fish, turtles and mahogany for shipbuilding, were part of Cuba, fearing that the English might build fortresses and dominate the shipping lanes. The British also realized the treaty was ambiguous, but declared that the Keys should be occupied and defended as part of Florida. The British claim was never officially contested. Ironically, the British gave the islands back to Spain in 1783, to keep them out of the hands of the United States, but in 1821 all of Florida, including the necklace of islands, officially became American territory. In the early 1900's, travel between many of these islands was only possible by boat. A modern pioneer, Henry Morrison Flagler, claims responsibility for providing the first civilized access to the Keys. He dreamed of extending the Florida East Coast Railway from Homestead to Key West. His dream was realized in 1912, after years of extreme physical hardship for the engineers and laborers who designed and built it. After the 1935 Labor Day hurricane destroyed the railroad, it was replaced by the Overseas Highway in 1938. The highway has since been widened and modernized. More than 40 bridges now connect these islands, like a Caribbean necklace, for more than 126 miles. Though most of the Florida Keys remained remote and inaccessible until well into the 20th century, their history glitters with romantic tales of pirates, fortunes gleaned from unfortunate shipwrecks, brief heydays for several island cities, struggling pioneer farmers and occasional military occupation. It also holds its share of tragedy resulting from settlers' encounters with hostile Indians, yellow -fever - bearing mosquitoes, dangerous hurricanes and unpredictable seas. Geology The Florida Keys lie on a thick layer of limestone. The rock is covered by an ancient coral reef in the lower islands, the porous Miami oolite, with its rich vegetation, appears once again. Low-lying islands with slight variations in elevation, the Keys boast a high point of 18 feet, on Windley Key. For the most part, however, they are very flat. There are over 800 islands large enough to appear on government charts, though many other tiny mangrove islets exist and are still aborning. About 30 of the Keys are inhabited. To the east of the Florida Keys lies the only living coral reef in the continental United States. It is located between four and seven miles offshore, running parallel to the Keys from Key Largo to the Dry Tortugas. This living marine marvel, rising as high as a few feet below the surface of the water and descending to depths near the Gulf Stream, protects the Keys from the waves of the pounding Atlantic surf and hence from the development of sand beaches, a great surprise to many first-time visitors. Florida is the only state in the continental United States to have extensive reef building coral formations near its coasts. Every year, over six million visitors come to the Florida Keys to enjoy the incredible system and the unique waters in which it lives. The special lure of the Florida Keys supports a two billion dollar economy. This economy depends on a healthy marine environment. Appraisers of the Keys Page 15 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 The Florida Keys National Marine Sanctuary, administered by the National Oceanic and Atmospheric Administration (NOAA) in partnership with the Florida Department of Environmental Protection (FDEP), encompasses 2800 square nautical miles of the waters surrounding the Florida Keys with the goal of balancing the long-term health of the ecosystem with the economy it supports. Population The 2010 total population of Monroe County is estimated at approximately 70,071 permanent residents increasing to approximately 125,000 during the peak winter season. Key West has approximately 24,639 permanent residents increasing to approximately 90,000 in season and is host to about 2.2 million tourists. This population is spread among the Upper Keys (Key Largo to Lower Matecumbe) 28%, Middle Keys (Long Key to Marathon) 17% and Lower Keys (Big Pine to Stock Island) 23%. Approximately 15,000 vehicles per day cross into Monroe County according recent traffic counts. Commercial fishing is equal in importance to the tourist industry. Industry in the Florida Keys, which was dominated by commercial fishing until recently, has changed in recent years to sport fishing and diving, marinas, motels, time-share resorts, restaurants, and other tourist -oriented businesses. Over the past ten years, the tourist season has expanded from a few months a year to almost year round. The United States Navy also contributes significantly to the Lower Keys economy, since Key West Trumbo Point and Boca Chica Naval Air Station are home to naval fighter training and development All services are represented with highly trained units. This results not only in a substantial military population requiring housing and services needs, but also employment for local civilians. Monroe County growth and population has stabilized after years of growth. Much of the new resident population has located throughout the Keys. However, the greatest concentration of growth has been located in Key Largo and the northern part of the county. Tourism is now the single major economic driving force. 813,000 cruise ship passengers disembarked in Key West in 2012. This was a 0.3% increase from the previous year, early signs in 2013 show an increase in cruise ship passenger numbers. There is currently a consultation on dredging the channel to allow for the larger, more modern cruise ships. Key West has approximately 3,843 hotel and motel rooms with another 413 rooms in guest houses, 727 resort condos and 1,817 in vacation rentals for a total of 6,800 units of total lodging. Reports indicate occupancy rates of 70% in the county areas and 75% + for transient properties in Key West. This high occupancy factor is due to occupancy increases in the off-season, as Key West and the Florida Keys become a year round tourist destination.6 In 1981, Monroe County created the County Tourist Development Council (TDC). This is a non- governmental entity of Monroe County whose sole purpose is to promote and advertise tourism for all of Monroe County. The Monroe County TDC is funded by a 3% tax on all overnight accommodations in Monroe County. The first two percent of this 3% tax is used to promote all of Monroe County including the City of Key West. The second portion of the TDC's bed tax is a one percent tax on all overnight accommodations in Monroe County. This 1% revenue is then allocated among different sections of the county (Marathon and the Lower Keys, Key Largo, Key West etc.), based on their pro -rated contribution of revenues. The portion of this revenue allocated to Key West is approximately 55% (per the TDC). These funds are used for direct expenditures for advertising, promotion, tourist information services and special events promotions. Of this total collected tax, approximately 65% goes to promotion and advertising and 35% to special events. 5 U.S. Census Bureau 6 Smith Travel Research, Key West Chamber of Commerce. Appraisers of the Keys Page 16 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Trends & Changes Monroe County encompasses all of the Florida Keys and the Everglades National Park, providing access to excellent year round weather, scuba diving on living coral reefs and many wrecks, plus the finest sport fishing in the world. The State Government, through the Department of Community Affairs (DCA) has declared Monroe County an Area of Critical Concern, subject to overriding review of the Land Use Plans submitted by the County and City governments. Basically, DCA wants to stop or severely restrict future development until such serious problems as adequate sewage treatment and disposal, solid waste disposal, infrastructure deterioration, and various environmental impacts are properly addressed. Monroe County and the City of Key West governments have been leaning in the other direction in response to the developers and the business community to increase expansion, plus their own internal need to find additional revenues just to maintain existing governmental structures. This situation comes down to a continuing battle between these three entities. As a result, building permits are difficult and expensive to obtain, frequently taking up to two years of constant effort. Some permits however, are processed with a minimum of delay. There was a 5 year building moratorium in Monroe County, which was replaced with a Non Residential Rate of Growth Ordinance (NROGO) for the unincorporated areas of the county. The new NROGO does not apply in the recently formed cities of Marathon and Islamorada, as their LDR and Comprehensive plans have yet to receive final DCA approval. Once these are approved, these recently incorporated areas are anticipated to create their own similar NROGO ordinances. Meanwhile these areas are still under a commercial building moratorium. Monroe County has the highest cost of living of all of Florida's 67 counties. It has topped the list for the past 20 years. Gasoline typically costs 10 cents a gallon more in Key West than in Miami. Housing in Key West is about 30% to 40% above the state average and 20% to 25% higher than Miami -Dade County, its nearest competitor. An unfurnished one bedroom apartment in a preferred location such as Old Town Key West will rent for $1,500 to over $2,700 per month. A less expensive small 12 x 12 studio can easily rent for as much as $700 per month or more. Rents are less expensive in the county ranging from as low as $700 per month to as high as $1,500 for the more typical one bedroom apartment. Taxes have decreased county wide due to a drop in assessed values, this has caused hardship on the county and city governments as they attempt to deal with sewage and solid waste disposal, road and bridge repair, and crime control problems. The county and city governments are currently installing the infrastructure for a county wide sewer system in compliance with state requirements. The Tourist Development Council, funded by an 11% bed tax, is advertising and promoting tourism to support the number one element of our economy by persuading more people to visit the Keys. In a sense, this is a Catch-22 situation. More tourists to maintain the local economy, but the county is hard pressed for the sewage systems, solid waste landfills, and infrastructure repair to adequately support the residents and visitors we now have. Change is taking place among the population. Longtime residents are finding real estate taxes and flood insurance becoming a major burden on top of other rising costs. As a result, many long term residents are selling their homes they have lived in many years, and moving to Central Florida or other areas of the southeast or Mid Atlantic regions to a better quality of life they can afford. School principals state they cannot keep qualified teachers even with two family incomes. A similar situation is found in many businesses, trying to keep reliable employees in Key West where housing costs and taxes are the highest in the County. The quaint, laid-back fishing village that was the City of Key West up until 15 to 20 years ago has changed with the addition of many modern luxury motels, condominiums and time share properties. Although new construction has slowed in the county due to the nationwide recession and the current oversupply of homes on the market. Appraisers of the Keys Page 17 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Recently, many unincorporated areas of the county have voted for incorporation. The most recent Keys to incorporate were Marathon in 1999 and Islamorada in 1998. This recent trend is to ensure more local control over government issues in these local areas. Efforts are being made to provide much needed affordable housing for those coming to work in the service industries. The county has several programs and incentives in place for builders to construct affordable housing. The Florida Keys Marathon Airport primarily serves a variety of general aviation activities. With its single 5,008-foot runway, the airport can accommodate general aviation business jet aircraft. The terminal is ideal for serving local users as well as those visiting the area. The airport's largest tenant is the Monroe County Sheriff Aviation Departments followed by Federal Express and Marathon Jet Center, a fixed base operator (FBO). Air cargo and air taxi/charter operations are also common at The Florida Keys Marathon Airport. All of the activity supported by the airport's tenants is important to the airport's revenue streams and to the airport's economic impacts. There are no direct commercial flights from Marathon airport, however the airport has recently been earmarked as a new customs base with port of entry for boats docking in the nearby marinas. Key West airport, originally built to handle 35,000 people, currently handles 367,000 in 2012 which was an increase off over 20% from the previous years. New regional jet service was approved from the fall of 2002, with Delta Airlines now operating direct regional jet service to Atlanta and a low cost carrier, SouthWest, who have recently acquired Air-Tran, running services to Tampa. There are still a number of daily flights to Miami. Recent announcements include a new direct non stop service to New Orleans operated by Southwestern to commence in March 2013 as well as weekly non-stop flights to New York and Washington over the winter months. This has typically been a prelude to full time regular flights. The runway measures 4,800 linear feet of run way. Key West airport also recently went under significant renovations. The Upper Florida Keys does not have a general aviation airport, there is one private airport at mile marker 90. Visitors to the upper keys, fly into Key West or Miami airport. The Miami International Airport is approximately a one hour drive from the upper Florida Keys (Key Largo). Increased tax burdens and other high costs associated with living in Monroe County, has resulted in some long-time residents leaving (especially those on fixed -incomes). Those property owners who remain must be financially in the median -upper to upper economic range, in order to cover everyday expenses. This stratification means that low average -pay scale makes it difficult to attract and retain teachers, nurses, policemen, firemen, college professors, and service industry workers. However, the strong tourist economy of Monroe County encourages entrepreneurship in the form of charter boat businesses, boutiques, specialty shops, restaurants, lounges, hotels, motels, and time-share projects. Key West is a town of small businesses, largely directed toward the tourist economy. This is true for the cities of Marathon, Islamorada, as well as the unincorporated island of Key Largo. A tourist -based economy requires many service employees; hence a need for employee housing. Due to supply and demand factors for housing in recent years, service employees could not afford a suitable place to live, unless two or more shared an apartment. Due to government tax incentives for developing "Affordable Housing" units in this area, several new projects have recently been built, and have rental rates which are affordable by the employee population. With the decline of market values and rental rates, the affordable housing issue is no longer as much of a concern. In fact many homes that have been built under the affordable housing agreement are selling less than the maximum allowed price Appraisers of the Keys Page 18 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Therefore, the overall observation is that Monroe County and Key West is largely dependent on a strong tourist -based economy. Inherent in growth is increased demand on utilities, services, and public facilities. As an island community, stretching approximately 130 miles southwest of the Florida mainland, one major problem in the county is waste disposal. A new Key West sewer plant came on-line in early 1989, trying to end the seepage of the city's raw sewage into the surrounding waters. In 2000 tests of water quality by the EPA indicated strong levels of human fecal matter in some beaches in Key West and the middle keys area. This is caused by leaky sewers in Key West, and the numerous number of onsite septic systems in the remainder of Monroe County. This has caused some negative publicity for Monroe County. The affects on the local economy were minimal, and the city of Key West has replaced a majority of the older sewer lines. The county wide sewer system is well underway and is on line in many areas of the keys. Another major county wide concern is solid waste disposal, since the current dump sites will likely be closed within the next few years, with no potential sites for new landfills available in Monroe County. At this time the City and County are discussing a possible mutual solution to the solid waste problem all of which will cost the tax payers more and more over the next years. Another concern has been the recent 2001 and partial 2002 summer droughts in South Florida. The situation has improved significantly through 2010, though long term there is still concerns of a possible salt water intrusion into the well field in Florida City if drought conditions return. The majority of Florida's fresh water supply is located in the northern 1/2 of the state with the majority of the population located in the southern half of the state. There has been some discussion of a pipeline or canal water system, similar to the system found in the valley areas of Arizona. These recent droughts were the worst experienced in South Florida since 1961. This well field services all of Monroe County, and as the well water level dropped the chances increased that salt water could infiltrate the well. In a worst case scenario this could have contaminated the well site forever, creating a difficult problem on exactly where Monroe County would obtain its fresh water source. The more recent summer and fall rains have significantly improved the outlook for the foreseeable future. Other problems result from scarcity of land for recreational facilities, new schools, government centers, and low and median -priced housing. Traffic congestion on the few main thoroughfares in Key West and US #1 in the remainder of the county is becoming heavier each season. More vehicular and pedestrian accidents occur due to heavy traffic, and minimal potential exists for widening the existing highway. The only major highway through Monroe County is U.S. #1 (Overseas Highway), which terminates in Key West. A Comprehensive Land Use Plan has been developed to cope with these and other problems of the area. The major thrust of this new plan is Concurrency, which means development will not take place, unless supporting facilities are adequate. Therefore, development is going to be more difficult and more expensive, with developers carrying the burden for increased demand on facilities. The ultimate result will likely be less new development and even higher prices for that which already exists. Over the last three years development has slowed, due mainly to the recession, than the increased development guidelines. These clearly visible changes in the economy are a direct result of the recession, the oversupply of homes and the high unemployment rate. The Florida Keys continue to grow, but at a very slow pace compared to prior years. Environmentalists and conservationists continue to be more vocal and militant. Destruction of the fragile ecology has ground to a halt during the past few years. There have also been recent discussions on the federal and state levels regarding no fishing zones in the "Hump" off of Islamorada and other areas in the Florida Keys. The Monroe County Planning Department has a "Rate of Growth Ordinance" (ROGO) in effect for all of Monroe County, which is based on a hurricane evacuation time frame of 25 to 30 hours. This has the effect of severely limiting new residential growth Appraisers of the Keys Page 19 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 At this time the number of residential permits which may be issued in Monroe County per year stands at 255, which is dispersed throughout different areas of the county. Building permits for residential development are currently issued on a priority point basis. Commercial development in the County Areas is affected by the previously mentioned NROGO system, which replaced a five year moratorium on commercial construction. This new Non Residential Rate of Growth ordinance based on the number of residential permits issued each year. The estimated amount of new commercial development is estimated to be between 20,000 and 22,000 square feet per year, per Monroe County. However due to the recession and the current high vacancy a rate, the growth of commercial space has been far lower than expected. Recently Monroe County has complied with a request from FEMA to allow inspection and removal of lower level residential enclosures that have been constructed illegally since the late 1970's. This has been a controversial issue for the past few years, but compliance was inevitable as FEMA had threatened to not fund any hurricane related insurance or disaster aid if the county remained un- compliant. Possible ramifications do include an increased shortage of affordable housing as many of these illegal enclosures have been occupied by low income workers throughout the county. Monroe County electric service is provided by the Florida Keys Electric Co -Op in the middle and upper keys, and serviced by Keys Energy Services (formerly City Electric of Key West) in the lower keys and Key West areas. Rates are subject to approval by the State Public Service Commission and monthly bills are based on kilowatt hour consumption. Telephone service is provided by AT&T and water service by Florida Keys Aqueduct Authority. City Sewer service is available in Key West, with most of the remainder of the county having onsite septic systems. Areas in the Upper and Middle Keys are slowly connecting to the main sewer and the whole of the Florida Keys is due to be connected in the next 5 years. There is an additional cost to homeowners of connecting to the sewer. There owners are to pay for the cost of connecting from the property to the street. There are 10 private and 17 public schools throughout Monroe County. The upper Keys (Layton - Ocean Reef) has one high school and two elementary schools, the middle keys (Marathon) has one high school and one elementary school and the Lower Keys (Key West) has one high school, one middle school, six elementary schools and one ungraded school. Monroe County also has a community college. The main campus to the Florida Keys Community College is located in Key West, however, there are branches located in the Upper Keys (Plantation Key) and Middle Keys (Marathon). A new high school is planned for the Upper Keys. The County is serviced by several local newspapers. The Miami Herald is distributed throughout the Florida Keys (Key Largo -Key West). The newspaper serving the Lower Keys is the Key West Citizen. The Middle Keys is served by the Keynoter. The Upper Keys are served by the Free Press, Keynoter, and Reporter. There are several local radio stations throughout the Keys, and the Upper Keys have three FM stations. The Florida Keys have excellent water recreational activities. Thousands of visitors come each year to dive and fish the coral reefs throughout the Florida Keys. Although primarily limited to water recreation, the county also has two golf courses, dog racing, and movie theaters. Monroe County also has a free public library system with three branches located throughout the county. U.S. #1 (also known as Overseas Highway) is the main thoroughfare entering and exiting the Florida Keys. In Monroe County, U.S. #1 (Overseas Highway) begins at Mile Marker 112 and runs approximately 112 miles to Key West. There are two public airports located in Monroe County, one in Marathon and the other located in Key West. The Miami International Airport is located approximately 50 miles north of the Key Largo area and is the major airport used by residents in the Upper Keys. Ground transportation services are limited to taxi services and the Greyhound Bus. Appraisers of the Keys Page 20 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Summary The overall economy of Monroe County has been in flux for the last three years, tourism still accounts for the primary source of funds generated for the local economy. Tourism declined in 2007 & 2008, increased slightly in 2009, then decreased slightly in 2010, however from the figures provided by Smith Travel Research and the Key West Chamber of Commerce, it appears that tourist figures have begun and continue to increase over the past 3 years. The outlook for 2013 is good, with the continued growth in both cruise ship passengers and air passengers. The recent recession had hit the local economy and was in line with national figures. This was especially true to retailers along Duval Street, who pay some of the highest rents per square foot in the nation. Recent figures have shown that the residential market is showing signs of recovery as the majority of distressed sales have been sold off. There appears to be an oversupply of commercial units whose sector has struggled to recover as quickly as the residential sector. There have been a number of sales of commercial units in the last 12 months showing that the market is recovering, there are however an oversupply of commercial properties with a number of distressed properties still on the market. The majority of the commercial units sold have been for owner occupation due to the high vacancy rate of leased properties. Appraisers of the Keys Page 21 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 NEIGHBORHOOD ANALYSIS: The subject is located on Plantation Key within the City of Islamorada in the Upper Florida Keys, approximately 89 miles East of the City of Key West and 85 Southwest of Miami. The property is located on the Gulf of Mexico side of the island and a dry lot. The neighborhood boundaries are Key Largo to the West, Gulf of Mexico to the North, Atlantic Ocean to the South and Marathon to the East. The subject is situated on US #1 Highway (aka Overseas Hwy). The surrounding area is a mixture of motels, single family residences, condominiums, commercial uses and marinas. The City of Islamorada provides a police and fire departments as well as sewage and waste disposal systems. Water is provided by the Florida Keys Aqueduct Authority whilst power is provided by Keys Energy Service. Islamorada is the oldest inhabited place in the Keys. Islamorada was original inhabited by Cuchiyaga Indians. In the 16th century Spanish explorers where so enthralled by the purple at haze sun set that they called it "islas moradas" which means purple islands. That is one way Islamorada got its name. William J. Kreme purchased fifteen acres of land with the intention of building winter homes. He and a group of his friends subdivided the land. The price they paid was $49 an acre. They named the area "Townsite of Islamorada." The name Islamorada stuck from that time on. Today the name Islamorada refers to the incorporated city of "Islamorada the Village of Islands which contains the islands of Tea Table Key, Lower Matecumbe Key, Upper Matecumbe Key, Windley Key and Plantation Key. The majority of the Florida Keys was devastated by a Hurricane on Labor Day in 1937 which is still the worst hurricane in the history of the Florida Keys. This killed over 400 people and destroyed the world famous Flagler Railroad, constructed by the businessman and developer Henry Flagler in 1912. After the destruction of the railroad the US #1 Highway was constructed as the only way of accessing the many islands of the Florida Keys. Linkages By Road As stated earlier, because the Florida Keys are a series of islands, it is connected by a single overseas highway — US Route 1 (aka Overseas Hwy), which is the only entrance into Key West from the Florida Mainland. For most of its length, US Route 1 is a dual lane highway. As a result, traffic can often be slow, and transportation linkages are limited and often difficult. By Air The Upper Keys can be accessed via air from Miami International approximately 85 miles to the north or via Key West International to the southwest. There is an airport located closer to Islamorada, in Marathon, roughly 30 miles to the southwest, however this airport no longer accepts commercial airlines. There are a number of smaller airstrips scattered throughout the Upper Keys which along with Marathon (approx 30 miles to the West) allows for smaller private air planes. Economy Islamorada is a major sport -fishing destination, and is known as "The Sport Fishing Capital of the World" with several charter fishing boats departing from local marinas every morning to both the Gulf of Mexico and the Atlantic Ocean. Bountiful reefs around Islamorada and the surrounding islands make it a popular diving, snorkeling, spear fishing, and lobster tickling area. Appraisers of the Keys Page 22 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 As of 2011, Islamorada's population is 6,184 people which have had a population growth of 1.1% since 2010. The population is for permanent residents, the figure increases over the winter months due to the influx of second home owners who live primarily in the Northern States. Subject Local Area The site is situated in an area of moderately heavy development density, characterized by uses that are primarily commercial, i.e., retail / office, motel and auto -related site usage along us Route 1. The subject's immediate neighborhood can be characterized as a mixed -use commercial and retail neighborhood of primarily single- and two-story properties that support the tourist trade along Overseas Highway and the general residential neighborhoods in the area. The subject property is located on Plantation Key, one of the Keys making up the Village of Islamorada, along the north side of U.S. Highway 1, locally known as Overseas Highway. The property is located on the main highway as a result, the subject benefits from very good visibility from within its local neighborhood. Appraisers of the Keys Page 23 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Location Map If(f Map data @2013 Google Appraisers of the Keys Page 24 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Identification of the Subject. The subject property is improved with a single story commercial unit currently occupied as a storage/office for the Monroe County Public Works Department. Access to the subject is via a gate on Key Heights Dr. The subject is located on the corner of Key Heights Dr and US#1 Highway. The property is located on an irregular lot which is primarily cleared with an asphalt covering and vegetation to the perimeter. There are temporary oil tanks used by the current occupier located on the front corner of the site. The property is currently occupied by the Monroe County Public Works Department and the property address is 103 Key Heights Dr, Islamorada, Florida, 33070. No environmental study was provided, there do not appear to be any below ground tanks on site. We recommend that an environmental study is undertaken. Legal Description. Key Heights Section 2 P133-159 Plantation Key Lots 1 2 & 24 Blk 11 Parcel # 00417340-00000 Alt Key # 1513512 See attached addendum for the tax card and aerial for the subject property taken from the Monroe County Property Appraisers website. Owners of Public Records. Monroe County Public Service Bldg. Stock Island, Key West, FL, 33040. Information provided by tax records and Property Appraisers website. Property History. The subject property has no prior recorded sale in the last three years. The property is not currently listed for sale nor has been listed for sale in the last 12 months. The last recorded sale was 04/04/1990 for $330,000 as a sale from Islamorada Inn Inc to Monroe County. Appraisers of the Keys Page 25 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Site Description. Address: 103 Key Heights Dr, Islamorada, Florida, 33070 Census Tract: 9708.00 Site Area: 12,600 square feet. 7,800 square feet. 7,200 square feet. Total — 27,600 square feet Square feet: 2,411 square feet (site measurements) Frontage: 165 feet on Key Heights Dr Road Access: Good Parking: Off street parking. Topography: Level Drainage: Appears adequate (Not raining at inspection). Flood Zone: Flood Zone Panel, 12087C1006K Zone X dated 02/18/2005. Water: Florida Keys Aqueduct Authority Sewer: Municipal sewer service. Electric: City Electric Zoning: PS — Public and semi-public services (PS) zoning district as per the Village of Islamorada Planning Department. Appraisers of the Keys Page 26 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Zoning The subject is zoned by the Village of Islamorada as PS — Public and semi-public services (PS) zoning Sec. 30-701. - Public and semi-public services (PS) zoning district. T (a) Purpose and intent. (1) The purpose of the public and semi-public services (PS) zoning district is to accommodate existing public and semi-public services, facilities and uses, whether owned or managed by a by a federal, state, county or municipal agency, by an individual or corporation or by a public/private partnership, while ensuring that potential impacts on adjacent properties are mitigated. (2) This zoning district is established within the Residential High (RH), Mixed Use (MU), Public and Semi -Public Services (PS) and Industrial (1) FLUM categories. (b) Permitted uses. (1) Caretaker's cottage; (2) Accessory uses and structures; (3) Hurricane or emergency shelter; (4) Collocation on existing wireless facility; (5) Arts and cultural facility; (6) Civil defense facility; (7) Domestic violence center; (8) Detention facility; (9) Emergency medical and ambulance services; (10) Fire station; (11) Government offices; (12) Houses of worship and religious facilities; (13) Infrastructure and municipal utility facilities; (14) Police station; and (15) Residential -institutional uses. (c) Uses permitted as a minor conditional use. (1) Community pier or public dock; (2) Docking facility; (3) Health related institutions including care facility and supportive health care dwelling units; (4) Hospital complex; (5) Recycling center; (6) Rehabilitation center; (7) Sports arena; (8) Attached wireless facility; (9) Replacement of existing wireless facility; and (10) Stealth wireless facility. (d) Uses permitted as a major conditional use. (1) Helipad; (2) Schools; (3) New wireless facility; and (4) Outdoor storage and display areas pursuant to article VI, division 8 of this chapter. Appraisers of the Keys Page 27 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 (e) Site development standards. (1) Minimum lot area: Not applicable. (2) Maximum building height: 35 feet. (3) Maximum developable lot coverage: Not applicable. (4) Setbacks: a. Front yard: Minimum 25 feet. b. Side yard: A minimum of five feet on each side for a minimum combined total of 15 feet for both sides. c. Rear yard: Minimum 20 feet. d. Rear yard on shoreline: See article VII, division 2 of this chapter. (5) Floor area: Maximum floor area for principal structures: 0.25 FAR or 0.35 FAR with TDRs. (6) Density: One dwelling unit per lot, or up to 12 dwelling units per acre for residential - institutional uses. (7) Open space: See article VII, division 4 of this chapter. (8) Landscape requirements: See division 6 of this article. (9) Parking requirements: See division 7 of this article. (Ord. No. 02-22, § 1(5.1.21), 1-31-2002; Ord. No. 02-29, § 7, 11-21-2002) Appraisers of the Keys Page 28 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Taxes 2012 ASSESSED VALUE Parcel: Alt Key: Owner: Land Assessment: Miscellaneous: Improvements: 00417340-000000 1513512 Monroe County $89,700 $0 $336,119 TOTAL ASSESSED VALUE $425,819 The property appears to be assessed at market value which is typical for this commercial market. The value may be contested once the licenses have been sold off. REAL ESTATE TAXES 2012 - $0 Appraisers of the Keys Page 29 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Aerial and Plat: r�r�ly RD I Randal Adam's I I ' + i Appraisers of the Keys Page 30 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Description of Improvements. General Please see addendum for the Floor Plan sketch which depicts the general layout of the subject property. The subject is a single story commercial building currently occupied by the Monroe County Public Works Department and used as storage/office space. The building is a single story CBS built property with a asphalt covered gable roof. Windows comprise of older metal jalousie type with flush timber doors. The building is sub -divided into 5 old motel rooms each with small bathroom and office spaces to the northern section of the building. There is interconnecting access through the office space with individual access only to the five units. The exterior of the building is in fair condition with significant wood rot to the fascia and ends of the roof members which will require replacement. The roof is aged and was heavily covered with vegetation at time of inspection which restricted our view. There is evidence of decay from the internal inspection as there are a number of ceilings in poor condition. There is no evidence of concrete spalling and the structure as a whole is in fair -poor condition. A roof inspection is recommended. Internally, the subject has been sub -divided into a number of units. The property was originally a motel which was purchase in 1990. There is still evidence of the original layout with five separate units each with older bathrooms. The remainder of the building is office space. Ceilings comprise of a mixture of drywall, plaster and suspended ceiling tiles and are in a fair condition with damaged dry lined sections. The internal walls are a mixture of drywall and plaster over the external concrete wall. There is minor damage and mold staining on the internal walls, primarily caused by the lack of adequate ventilation. The flooring is a mixture of vinyl and carpet with tile to the bathrooms. A mold inspection is recommended. There are five bathrooms to the older motel rooms and are in poor condition and have not been updated since original construction. There missing fixtures and fittings to bathrooms and are not operational at time of inspection. There is very limited HVAC system, there are wall A/C units to a number of the rooms. There is no Central A/C, older Wall A/C units are still in place to a number of the rooms. The electrical systems are aged and were not working at time of inspection. A full electrical inspection should be undertaken. No utilities were on at time of inspection. Overall the subject is in a fair condition with significant wood rot to the exterior fascia and end of the roof timbers. There is evidence of past water damage to the interior of the property likely caused by a damaged roof and mold due to inadequate ventilation. There are a number of trees that will require cutting back. There has been very little updating and repairs carried out over the last 10-15 years which has resulted in a higher effective age and the property is close to the end of its current economic life. The subject is an CBS grade level property, built in 1970 prior to the date requiring properties to be elevated as per the FEMA guidelines. The subject is located in an X flood zone which is the highest flood zone in the neighborhood and at the lowest risk of flooding and is not required to be elevated. Condition The general condition of the property is fair -poor. The subject property has a total economic life estimated at 60 years. Based on the physical inspection, the overall effective age of the subject property is estimated at 50 years, with a remaining economic life of 10 years. Appraisers of the Keys Page 31 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Highest and Best Use Highest and best use may be defined as The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. 1. Legally Permissible: What uses are permitted by zoning and other legal restrictions? 2. Physically Possible: To what use is the site physically adaptable? 3. Financially Feasible: Which possible and permissible use will produce any net return to the owner of the site? 4. Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)? Highest and Best Use of the Site As Vacant: The highest and best use of the site, as vacant, is a commercial unit built to maximum density. Legally Permissible: The subject site is located in PS — Public and public services zoning district, as designated by the Village of Islamorada Planning Department. There are no known easements that could adversely affect the development of marketability of the subjects parcel. Current legally permitted uses in the PS zoning district include, Caretaker's cottage, Accessory uses and structures, Hurricane or emergency shelter, Collocation on existing wireless facility, Arts and cultural facility, Civil defense facility, Domestic violence center, Detention facility, Emergency medical and ambulance services, Fire station, Government offices, Houses of worship and religious facilities, Infrastructure and municipal utility facilities, Police station and Residential -institutional uses. The subject property was originally a motel prior to purchase by the county and has 8 transient licenses confirmed by the Village of Islamorada. From information provided by the Village of Islamorada the property record card shows the existence of the motel units in 1957. This is prior to 1960 where there were no Zoning Regulations. The subjects year built is recorded as 1970. The subject is located on a dry lot with the majority of motels in the area located on the open water. The low number of licenses would not make it feasible to convert back to a motel. The Highest and best legally permissible use is for a office/storage. The subject has transient licenses which can be sold off individually to relevant receiver sites.. Appraisers of the Keys Page 32 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Physically Possible: The subject is irregular in shape with approximately 170 ft of frontage onto Key Heights Dr. The property benefits from frontage into US #1 Highway, however planning regulations may restrict direct access from US#1 Highway. The subject property was originally a motel prior to purchase by the county and has eight transient licenses. The subject is located on a dry lot and typically motels are located on the open water. The low number of licenses would not make it feasible to convert back to a motel. The Highest and Best physically possible use would be to build a commercial unit to the maximum allowed density. Financially Feasible: There are a number of uses within the subject's area, including commercial units, retail, single family and hotels/motels. The subject property was originally a motel prior to purchase by the county and has 8 transient licenses. The subject is located on a dry lot and typically motels are located on the open water. The low number of licenses would not make it feasible to convert back to a motel. The Highest and best legally permissible use is for a office/storage unit based on the current sales for owner occupation. The vacancy rates for rentable office and storage space are high.The subject has transient licenses which can be sold off individually. The most financially feasible option would be to sell off the transient licenses and retain the building as an office/storage unit. Maximally Productive: A determination must be made as to which of the feasible uses is the Highest and Best use of the parcel if vacant. The Highest and Best Use is the use that produces the highest or greatest return to the land. Based on the current zoning, the Highest and Best Use would be for a commercial unit. The subject has transient licenses which can be sold off individually. Highest and Best Use as Improved: The highest and best use of the subjects land as improved would be it current use as an office and storage area. The subject has transient licenses which can be sold off individually. Appraisers of the Keys Page 33 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Subject Photographs R. . Front Elevation Rear Elevation M ..� /ll1+ �r�omt1F, wydIFF0(I)UN b+ t 1'Y 1- _ i - IIONROE Current use and signage Street View Appraisers of the Keys Page 34 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Appraisers of the Keys Page 35 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Damage soffit Rear Elevation w A I LL Interior — Old motel Interior — Old bathroom Appraisers of the Keys Page 36 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 7=� Interior — Old motel missing internal partitions Interior — damaged doors IL Interior — Old motel Interior — old motel bathroom Appraisers of the Keys Page 37 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 d Interior — damaged drywall Interior — Old motel yl CA Rotten section end of roof timbers Rotten section end of roof timbers Appraisers of the Keys Page 38 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 sue, , t. 1_ Damaged fascia boards Rotten section end of roof timbers I Interior — old motel Damaged and missing ceiling sections Appraisers of the Keys Page 39 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 low, 1 i. �mom Interior — old motel Generator on site a Interior — office space Interior — kitchen Appraisers of the Keys Page 40 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Interior — Office space Electrical panel F r. 1 Interior office space Interior office space Appraisers of the Keys Page 41 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Interior — missing ceiling Interior — office space 1 fw Right Elevation Storage shed Appraisers of the Keys Page 42 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Appraisers of the Keys Page 43 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Valuation Methodology Three basic approaches may be used to arrive at an estimate of market value. They are: 1. The Cost Approach 2. The Income Approach 3. The Sales Comparison Approach Cost Approach The Cost Approach is summarized as follows: Cost New - Depreciation + Land Value = Value Income Approach The Income Approach converts the anticipated flow of future benefits (income) to a present value estimate through a capitalization and or a discounting process. Sales Comparison Approach The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. By process of correlation and analysis, a final indicated value is derived. Final Reconciliation The appraisal process concludes with the Final Reconciliation of the values derived from the approaches applied for a single estimate of market value. Different properties require different means of analysis and lend themselves to one approach over the others. Analvses Applied A cost approach was not applied and is not considered for this report due to the difficulty in determining depreciation. A sales comparison analysis was considered and has been developed as there is adequate sales data to determine the value. An income analysis was considered and has not been developed as there is inadequate data to determine the value as the majority of similar properties are owner occupied. There is high vacancy rate of office buildings in the Upper Keys. There have been sales of similar units, however they are owner occupied. The property also has eight transient licenses and there are no comparable properties with income to develop the approach. Appraisers of the Keys Page 44 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Sales Comparison Approach The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution and externalities. The following steps describe the applied process of the Sales Comparison Approach. • The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed. • The most pertinent data is further analyzed and the quality of the transaction is determined. • The most meaningful unit of value for the subject property is determined. • Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject property. • The value indication of each comparable sale is analyzed and the data reconciled for a final indication of value via the Sales Comparison Approach. Comparables We have researched five comparables for this analysis; these are documented on the following pages followed by a location map and analysis grid. All sales have been researched through numerous sources, inspected from the exterior and verified by a party to the transaction. The search criteria was all commercial units sold within the Upper Keys between mile marker 55- 107 in the past 36 months as of the effective date of April 16th 2013. The following comparables are the most recent sales of similar commercial units: Comparable Comparable Address City Grantor Grantee Price Date Price Per SF GBA Year Built Construction Notes Subject 103 Key Heights Monroe County $0 $0 1970 Dr Public Service Works Subject Islamorada 4/13/13 2,411 CBS 1 100750 Overseas Barry Desocarras $285,000 $127.23 1960 Hwy Key Largo Luis Gomara 2/27/12 2,240 CBS 2 92080Overseas John E Carter Jr $325,000 $128.10 1944 Hwy 2 Key Largo July 14 Llc 12/28/11 2,537 CBS 3 84 Park Dr Southern $400,000 $112.99 1981 Exposure Key Largo 2/28/13 3,540 Average 4 102025 Overseas Key Acquisitions $350,000 $126.26 1979 Hwy LLC 4 Key Largo Pacho Ents Inc 8/3/11 2,772 CBS 5 99101 Overseas MDJ Investments $465,000 $156.67 1958 Hwy LLC Key Largo 3/29/13 2,968 CBS Appraisers of the Keys Page 45 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Comparable 1 Transaction D 61 Date 2/27/12 Address 100750 Overseas Hwy Price $285,000 City Key Largo Price Per SF $127.23 State FL Transaction Type Closed Tax ID 1643181 Financing Cash Grantor Barry Desocarras Property Rights Fee Simple Grantee Luis Gomara Days on Market 141 Legal Description Bk 4 Lt 9 Amd Plat of Pb3-62 Verification Source Broker Site Acres Topography Level Land SF 6,500 Zoning SC Road Frontage 65 Flood Zone AE Shape Rectangular Encumbrance or Easement Utilities City water & sewer Environmental Issues Improvements & Financial Data GBA 2,240 PGI Rentable Area 2,240 EGI No. of Units 2 Expense Ratio Year Built 1960 NOI Renovations Cap Rate Condition Average EGIM Notes The property is a mixed use unit located on US#1 Highway in Key Largo located at mile marker 100. The property comprises of a 2 story CBS building containing a residential unit to the second floor and a commerical unit to the first floor. The property is presented in average condition with some deferred maintenance and had been vacant for over 1 year prior to the sale. The transaction was arms length with subject originally listed on 09/14/2011 for $329,500, price revisions on 11 /19/2011 and 01/10/2012 to $299,000 and was pending on 02/02/2012. Days on market 141. No price sales or transfers in the past 12 months. Appraisers of the Keys Page 46 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Comparable 2 Transaction D 107 Date 12/28/11 Address 92080 Overseas Hwy Price $325,000 City Key Largo Price Per SF $128.10 State FL Transaction Type Closed Tax ID 00481870-000000 Financing Cash Grantor John E Carter Jr Property Rights Fee Simple Grantee July 14 Llc Days on Market 1915 Legal Description Tav Harbir PB2-36 Key Largo Verification Source Realtor, MLS Site Acres Topography Level Land SF 14,094 Zoning SC Road Frontage 114 Flood Zone AE Shape Irregular Encumbrance or Easement Utilities City water & sewer Environmental Issues Improvements & Financial Data GBA 2,537 PGI Rentable Area 2,537 EGI No. of Units Expense Ratio Year Built 1944 NOI Renovations Cap Rate Condition Fair EGIM Notes The property is a single story CBS building with a flat roof. The property is located on US #1 highway with approx. 11 Oft of road frontage and is a corner lot. The subject is in fair condition and was vacant at time of inspection and has 2537 sf of rentable space. The property was originally listed on 09/14/2006 for $1,200,000 and there have been a number of price revisions with the last on 12/05/2011 to $391,000 and pending on 12/12/2011. Days on market 1915. The transaction was arms length, cash purchase. There have been no prior sales or transfers in the prior 12 months. Appraisers of the Keys Page 47 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Transaction D 110 Date 2/28/13 Address 84 Park Dr Price $400,000 City Key Largo Price Per SF $112.99 State FL Transaction Type Closed Tax ID 00525710-000000 Financing Cash Grantor Southern Exposure Associates Property Rights Fee Simple Grantee Days on Market 69 Legal Description Amd Plat of PB3-62 Key Largo Verification Source Realtor, MLS, Tax records Site Acres Topography Level Land SF 11,200 Zoning SC Road Frontage 112 Flood Zone X Shape Rectangular Encumbrance or Easement Utilities City water & sewer Environmental Issues Improvements & Financial Data GBA 3,540 PGI Rentable Area 3,540 EGI No. of Units Expense Ratio Year Built 1981 NOI Renovations None Cap Rate Condition Good EGIM Notes Property is a CBS single story with new metal roof. The property is in good condition with concrete flooring and vaulted ceiling. The property is sub -divided into 7 units and are currently used as warehouse, storage, and manufacturing. The property is located off the main highway and has 112 ft frontage. The property was originally listed on 11/27/2012 for $489,500, contingent on 02/06/2013 and closed on 03/04/2013. Days on market 69. Sold for $400,000, cash purchase, arms length transaction. There have been no prior sales or transfers in the prior 12 months. Appraisers of the Keys Page 48 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Comparable 4 r Transaction D 111 Date 8/3/11 Address 102025 Overseas Hwy Price $350,000 City Key Largo Price Per SF $126.26 State FL Transaction Type Closed Tax ID 00464940-000000 Financing Cash Grantor Key Acquisitions LLC Property Rights Fee Simple Grantee Pacho Ents Inc Days on Market 200 Legal Description Bk 6 Its 18-19 Pamela Villa Verification Source Realtor, MLS, Public Records Site Acres Topography Level Land SF 13,440 Zoning SC Road Frontage 112 Flood Zone AE Shape Rectangular Encumbrance or Easement Utilities City water & sewer Environmental Issues Improvements & Financial Data GBA 2,772 PGI Rentable Area 2,772 EGI No. of Units Expense Ratio Year Built 1979 NOI Renovations None Cap Rate Condition Fair EGIM Notes The property is a single story, CBS building with a flat roof. The property is in fair condition with tiled flooring, basic drywall and finishes. The property was sub -divided into a number of individual units with one bathroom and kitchen for the whole unit. The property was original listed for $480,000 with a number of price revisions with the last on 04/07/2011 and sold on 08/03/2011. Short sale transaction, cash purchase, days on market 200. There have been no prior sales or transfers in the prior 12 months Appraisers of the Keys Page 49 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Comparable 5 Transaction D 112 Date 3/29/13 Address 99101 Overseas Hwy Price $465,000 City Key Largo Price Per SF $156.67 State FL Transaction Type Closed Tax ID 00440100-000000 Financing Cash Grantor MDJ Investments LLC Property Rights Fee Simple Grantee Days on Market 142 Legal Description Thompsons Subd-Key Largo Verification Source Realtor, MLS, Pub Records Site Acres Topography Level Land SF 21,600 Zoning SC Road Frontage 135 Flood Zone AE Shape Irregular Encumbrance or Easement Utilities City water & sewer Environmental Issues Improvements & Financial Data GBA 2,968 PGI Rentable Area 2,968 EGI No. of Units Expense Ratio Year Built 1958 NOI Renovations Cap Rate Condition Good EGIM Notes The property is a single story, CBS unit with metal roof. The property is in good condition. The property has 135 ft of frontage onto US#1 Highway and has adequate parking. The property was originally listed on09/25/2012 for $495,000, price revision on 02/06/2013 to $485,000 and contingent on 02/15/2013, closed on 03/29/2013. Days on market 142, arms length transaction. There have been no prior sales or transfers in the prior 12 months. Appraisers of the Keys Page 50 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Comparables Map -a Pnip.F .fr Windluy Key 5511 Reef Ge al 5ta# y gar Map data 92013 Google The above sales have been analyzed and compared with the subject property. I have considered adjustments in the areas of: • Property Rights Sold • Market Trends • Financing • Location • Conditions of Sale • Physical Characteristics On the following page is a sales comparison grid displaying the subject property, the comparables and the adjustments applied. Appraisers of the Keys Page 51 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Analysis Grid Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Address 103 Key Heights 100750 92080 Overseas 84 Park Dr 102025 99101 City Islamorada Key Largo Key Largo Key Largo Key Largo Key Largo State FL FL FL FL FL FL Date 4/13/2013 2/27/2012 12/28/2011 2/28/2013 8/3/2011 3/29/2013 Price $0 $285,000 $325,000 $400,000 $350,000 $465,000 GBA 2,237 2,240 2,537 3,540 2,772 2,968 GBA Unit Price $0.00 $127.23 $128.10 $112.99 $126.26 $156.67 Transaction Adjustments Property Rights Fee Simple Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Financing Conventional Cash 0.0% Cash 0.0% Cash 0.0% Cash 0.0% Cash 0.0% Conditions of Sale NA Arm's Length 0.0% Arms Length 0.0% Arms Length 0.0% Short Sale 0.0% Arms Length 0.0% Expenditures After Sale $0 $0 $0 $0 $0 Adjusted GBA Unit Price $127.23 $128.10 $112.99 $126.26 $156.67 Market Trends Through 4/13/13 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Adjusted GBA Unit Price $127.23 $128.10 $112.99 $126.26 $156.67 Location Good Good Good Average Good Good % Adjustment 0% 0% 10% 0% 0% $ Adjustment $0.00 $0.00 $11.30 $0.00 $0.00 GBA 2,411 2,240 2,537 3,540 2,772 2,968 % Adjustment 0% 0% 15% 0% 0% $ Adjustment $0.00 $0.00 $16.95 $0.00 $0.00 Land to Building Ratio 12.33:1 2.90:1 5.55:1 3.16:1 4.84:1 7.27:1 % Adjustment 25% 10% 25% 10% 0% $ Adjustment $31.81 $12.81 $28.25 $12.63 $0.00 Condition/Quality Fair Average Fair Good Fair Good % Adjustment -10% 0% -20% 0% -20% $ Adjustment -$12.72 $0.00 -$22.60 $0.00 -$31.33 View Residential Residential Residential Residential Residential Residential % Adjustment 0% 0% 0% 0% 0% $ Adjustment $0.00 $0.00 $0.00 $0.00 $0.00 0% 0% 0% 0% 0% $0.00 $0.00 $0.00 $0.00 $0.00 Adjusted GBA Unit Price $146.32 $140.91 $146.89 $138.89 $125.34 Net Adjustments 15.0% 10.0% 30.0% 10.0% -20.0% Gross Adjustments 35.0% 10.0% 70.0% 10.0% 20.0% Appraisers of the Keys Page 52 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Comparable Sale Adjustments The five comparable used are the most recent commercial units when searching the from mile marker 55-107 in the Upper Keys over the past 36 months. The appraiser has used sales of mixed use units and commercial units in order to determine values and these are the most similar sales when searching the past 36 months. Condition/Quality: Sales one is a CBS building with minor deferred maintenance and has not been updated in the last 15-20 years. This property had been vacant for over 12 months and is superior in quality to the subject with the internal condition similar. Sale two is in a similar condition to the subject and has had no updates in the last 15-20 years. Sale three is a single story, CBS building with modern metal roof. The property has been subdivided into seven units and has drywall finishes and a concrete floor and is superior to the subject. Sale four is a single story CBS building with a tar flat roof. The property is in fair condition and had basic tile finishes. This has been fully renovated since this sale. Sale five is a single story CBS commercial building and has been renovated and is superior to the subject. Time The market for commercial buildings is currently stable and no time adjustments are warranted for the sales. Sales three and five have sold within the last three months and are the most recent. Sale one, two and four are over 12 months old. These are still good indicators of value and is typical when appraising in the Florida Keys. GLA Adjustment: Sales one, two, four and five have similar GLA as the subject and no adjustment is warranted. Sale three has a larger GLA and an adjustment is warranted based on diminishing returns and parcel sales. Location: Sales one, two, four and five are located in similar areas and have similar exposure to US #1 Highway. Sale four is set back from the main highway and is inferior in location as it has reduced exposure to the passing traffic. All sales and located in similar neighborhoods in the Upper Keys and would appeal to the same purchaser. It is necessary to use sales over one mile from the subject which is typical when appraising in the Florida Key due to the areas unique geography. All five sales are located in a similar flood zones which is typical for the area and does not adversely effect marketability. Amenities: The subject benefits from adequate off street parking. All sales have similar parking lots as the subject and no adjustment is warranted. Land to Buildina Ratio: Adjustments have been made for the differences in land to building ratios which take into account the differences in lot sizes. Appraisers of the Keys Page 53 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Reconciliation: The five comparable properties used form a range from $125.34 to $146.89 per square foot of rentable space. Sale one is a good comparable; it is an older mixed use property located on US #1 Highway in the Upper Keys and is in a similar location to the subject. The comparable was vacant at time of sale and had a commercial unit to the ground floor and residential two bedroom, one bathroom unit to the upper floor. The comparable was presented in fair condition similar to the subject and had no updates in the last 15-20 years however was superior in quality. There was adequate parking to the subject. The comparable was an arms length transaction, purchased with cash and was sold in 141 days. This is given some emphasis as it is a mixed use unit similar to the subject, has a similar GBA, land to building ratio and condition. The comparable was owner occupied after purchase further supporting the lack of rentals to provide the income analysis. Sale two is a good comparable; this is a single story commercial building in similar condition to the subject and was vacant at time purchase. The unit has similar GBA, condition to the subject and is given some emphasis. The comparable was an arms length transaction and was a cash purchase and was listed for 1915 days. The comparable has had some renovations since purchase with a new roof and windows. This sale is over 12 months old; however is still a good indicator of value. Sale three is good comparable; this is a single story commercial property which is currently used as light manufacturing, repair and storage building. This has been sub -divided into 7 units and is superior in condition and quality with a newer metal roof, drylined walls and concrete floor. The comparable was an arms length transaction and was a cash purchase and was listed for 69 days. This is a recent sale and is a good indicator of value and is given emphasis. Sale four is a good comparable; this is a single story commercial building. At time of sale the property was in an average condition and is an older CBS building with a flat roof. Since purchase the subject has been fully renovated. The comparable is located on US #1 highway with good frontage and exposure. This is given some emphasis as it is a similar commercial, with similar GBA. The property sold over 12 months ago and is given less emphasis. Sale five is a good comparable; this is a single story commercial building located on US#1 highway. This comparable was in superior condition to the subject and has been renovated. The property was originally built in 1958 and is of similar age to the subject. This was an arms length transaction and purchased with cash and was on the market for 142 days. This is given emphasis as this has a similar GBA and lot size as the subject and is the most recent sale. All five sales are given weight and emphasis as they form a tight range of values. Less emphasis is given to sales two and four as they are over 12 months old. Sales one, three and five are the most recent and have similar condition, GLA and location and the subject. Based on the analysis above, a per square foot measure of $130.00 has been chosen resulting in an estimate of value of $313,430 for the improvements. Ranges & Reconciled Values Low: $125.34 High: $146.89 Average: $139.67 Reconciled Value/Unit Value: $133.00 Subject Size: 2,411 Indicated Value: $320,663 Reconciled Final Value: $321,000 Appraisers of the Keys Page 54 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Transferable Development Riahts. The subject property was originally constructed and operated as a motel from as early as 1957 as per the Village of Islamorada planning department and that there are eight legally established transient dwelling (motel) units attached to the property. The current building was constructed in 1970 as per the Monroe County Property Appraiser and was sold in 1990 where it was purchased by Monroe County Public Works. From discussions with the Village of Islamorada Planning Department the motel units existed prior to 1960 when the Monroe County Zoning Regulations did not exist which would have allowed the motel units to be constructed in the current zoning. Transferable Development Rights, in respect to the subject, allow the seller (sender site) to transfer the licenses to the buyer (receiver site) under certain circumstances as set out in the Village of Islamorada's Comprehensive Plan and in the Code of Ordinance. The Code of Ordinance states that the transfer can only be allowed if the receiver sites are located in either the Village Center (VC), Tourist Commercial (TC) or Highway Commercial (HC) as defined by the Village of Islamorada. The transfer of less than four units would require a Site Plan and Minor Conditional Use Approval while the transfer of more than five would require a Site Plan and Major Conditional Use Approval. Each of these approvals take up to one year to complete. The Comprehensive Plan (adopted January 2001 and revised November 21, 2012) of the Village of Islamorada restricts the transfer of motel transient dwelling units to other motels or hotels. This does therefore restrict the number of purchasers in the neighborhood who are also restricted by their current density on the receiver site which can not exceed the maximum densities set out be the Village of Islamorada. There are however a number of other motels and hotels within the neighborhood who would be able to receive transient licenses due to their lower current densities. Sales of similar Transferable Development Rights are rare but do occur. The subject property was originally the Desert Palm Motel until this was sold in April 1990 from Islamorada Inn Inc to Monroe County. The subject is located on a dry lot with good access to US#1 Highway. In determining the highest and best use, we investigated the feasibility of converting the property back into a motel. The subject is well located on the US#1 Highway in a high traffic level area with good frontage and visibility from the highway. There are a number of motels in the area serving Islamorada which is a popular tourist destination, renowned for its World Famous deep sea fishing in both the Gulf of Mexico the Atlantic Ocean, however the majority of these motels are located on the open water allowing good boating access. There are very few motels on dry lots, this coupled with the low number of transient licenses would make the conversion back to a motel unfeasible. The highest and best use would be sell the Transferable Building Rights to other sites and keep the current building as office and storage. We have searched the whole of the Florida Keys for similar Transferable Development Rights over the past three years. The most recent sale is of 10 Transferable Development Rights (T.D.R's) from a property on Big Pine Key (mile marker 30-35) to a receiver site on Marathon. This was an arms length transaction and the licenses were sold and the contract provided by a party to the transaction. The purchase price was $375,000 for the ten licenses. The information was confirmed and shows that the licenses are transferred to an existing motel. From this information the estimate of value of a Transferable Development Right for a motel can be calculated at $37,500 per license. The subject property has eight transient licenses, therefore: Value of Transferable Development Rights: $37,500 x 8 licenses = $300,000 Appraisers of the Keys Page 55 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 In order to determine the market value of the site it is necessary to combine the estimate of values of the current improvements and the value of the Transferable Development Rights. AS IS Market value of Improvements $321,000 Value of Transferable Development Rights $300,000 Therefore: As IS Market Value as of April 16th, 2013 is: AS IS Market Value: Via Sales Comparison $621,000 Appraisers of the Keys Page 56 of 79 Order #00044564 File #10232 103 Key Heights Dr, Key Largo, FL 33070 Income Approach to Value Income Approach Capitalization Premise Capitalization in Real Estate terminology is the process by which an income projection is converted into an indication of value. The element that transforms the income projection is a rate that reflects the return necessary to attract investment capital. The process of Income Capitalization generally reflects the principle of anticipation. Thought of as the present worth of an anticipated future benefit, anticipation follows a pattern similar to investor thinking and motivation. Income producing real estate is typically purchased as an investment, and from an investor's point of view, earning power is the critical element affecting property value. One investment premise holds that the higher the earnings, the higher the value, provided the amount of risk remains constant. An investor who purchases income producing real estate is essentially trading present dollars for the expectation of receiving future dollars. The Income Capitalization Approach to value consists of methods, techniques, and mathematical procedures that an appraiser uses to analyze a property's capacity to generate benefits and convert these benefits into an indication of value. The capitalization process must reflect the possibility that actual future income, expenses, and property may differ from those originally anticipated by an investor on the date of the appraisal. The more uncertainty there is concerning the future levels of these variables, the riskier the investment. Investors expect to earn a higher rate of return on investments that are riskier. This should be reflected in the support for the discount rate and capitalization rate obtained from market research. Direct Capitalization and Yield Capitalization are two generally accepted capitalization methods. Direct Capitalization is the method used in this report. It converts an opinion of a single year's income expectancy or an annual average of several years' income expectancies into an indication of value in one direct step. It is calculated by dividing the income opinion by an appropriate rate or by multiplying the income opinion by an appropriate factor. Direct Capitalization is widely used when properties are already operating on a stabilized basis and there is an ample supply of comparable sales with similar risk levels, incomes, expenses, physical and location characteristics, and future expectations. This methodology may be less useful for properties going through an initial lease -up or when income and expenses are expected to change in an irregular pattern over time. Comparables with similar future expectations may not be available in these cases and one of the Yield Capitalization techniques may be more appropriate. The advantages of Direct Capitalization are that it is simple to use, easy to explain, often expresses market thinking, and provides strong market evidence of value when adequate sales are available. Appraisers of the Keys Page 57 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 INCOME APPROACH TO VALUE (continued Income Approach Capitalization Premise (continued) Direct Capitalization is distinct from Yield Capitalization in that the former does not directly consider the individual cash flows beyond the first year. Although Yield Capitalization explicitly calculates year -by -year effects of potential changing income patterns, changes on the original investment's value, and other considerations, Direct Capitalization processes a single year's income into an indication of value. Either Direct Capitalization or Yield Capitalization may correctly produce a supportable indication of value when based on relevant market information derived from comparable properties, which should have similar income -expense ratios, land value to building value ratios, risk characteristics, and future expectations of income and value changes over a typical holding period. A choice of capitalization method does not produce a different indication of value under this circumstance. The Direct Capitalization technique projects the net operation income attributable to the real estate and associated personally, which is the remaining income after subtracting vacancy losses and operating expenses from the potential gross income. Next, a capitalization rate is selected, which is used to capitalize the net operating income by the rate selected. The potential gross income is the total income attributable to real property at full occupancy before operating expenses and vacancy and collection losses are deducted. The effective gross income is the anticipated income from all operations of the real property, adjusted for vacancy and collection losses. This adjustment covers losses incurred due to unoccupied space, turnover, and non-payment of rent by tenants. The net operating income is the actual or anticipated net income remaining after all operating expenses are deducted from the effective gross income. Net operating income is expressed as an annual amount. In certain income applications, a single year's net operating income may represent a steady stream of fixed income that is expected to continue for a number of years. Operating expenses are the periodic expenditures necessary to maintain the real property and continued production of the effective gross income, assuming prudent and competent management. Operating expense statements that conform to this definition are used for appraisal purposes. A reconstructed operating statement may differ from statements prepared for an owner because they often include non -cash expenses such as depreciation or interest expenses. Income rates express the relationship between one year's income and the corresponding capital value of the property. An overall capitalization rate is an income rate for a total property that reflects the relationship between a single year's net operating income into an indication of overall property value or price. It is used to convert net operating income into an indication of overall property value. An overall capitalization rate is not a rate of return on capital or a full measure of investment performance. It may be more than, less than, or equal to the expected yield on the capital invested, depending on the projected income or value changes. Appraisers of the Keys Page 58 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 INCOME APPROACH TO VALUE (continued) Income Approach Capitalization Premise (continued) Whether estimating an income or yield rate, the conversion of income into property should represent the annual rate of return the market indicates is necessary to attract investment capital. This rate is influenced by factors such as: • The degree of risk • Market expectations • Prospective rates of return for alternative investments • Rates of return earned by comparable properties in the past • Availability of debt financing • Prevailing tax law Generally, the higher overall capitalization rates are associated with less desirable properties and the lower overall capitalization rates with more attractive properties. The suitability of a particular rate of return, which is the full recovery of the amount invested and a reward for the assumed risk, cannot be proven with market evidence, but the rate estimated should be consistent with the data available. Rate estimation requires appraisal judgment and knowledge of prevailing market attitudes and economic indicators. Typically, investors expect to receive a return on capital that represents the time value of money, with an appropriate adjustment for perceived risk. The minimum rate of return for invested capital is sometimes referred to as the safe rate, or the rate on insured savings accounts or securities. Theoretically, the difference between the total rate of return on capital and the safe rate may be considered a premium to compensate the investor for risk. (Source: The Appraisal of Real Estate- Thirteenth Edition, The Appraisal Institute, 2008) Reconciliation: The income approach was not developed due to the lack of data of similar properties. The typical commercial building in the Upper Florida Keys are owner occupied. There is a high vacancy rate of commercial buildings with a move in trends to owner occupied properties. The subject has only one meter and is primarily set up for an owner occupier. The Income Approach was not developed as there is a lack of comparables, the majority of these properties were either vacant or owner occupied and have no rental history. The subject is currently occupied by Monroe County Public Works and there is no current income stream. The subject is in need of extensive repairs and has no working air conditioning or electrics and is currently not rentable on the open market in its current state. Appraisers of the Keys Page 59 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Final Reconciliation: The previous sections of the report considered the three approaches to value. The analysis of all pertinent facts and data considered to influence the value of the subject property has led to the following value opinions: The nature of reconciliation depends on the appraisal problem specific to the subject property, the approaches that have been used, and the reliability and adequacy of the data used. The inapplicability of the Cost Approach to value constitutes the Sales Analysis Approach and the Income Approach to value as the most reliable indications of value for the subject property. The Sales Analysis Approach to value in this appraisal has been developed due to a number of similar sales of resorts with the same utility. This is a good indicator of value and shows the relationship between a willing buyer and seller. The data is very current and reliable and has been confirmed by the listing agents or current owners of the property. This approach is a reliable indicator of value and is given some emphasis along with the income approach. The income approach was not developed due to the lack of data of similar properties. There subject is in a poor condition and is currently not rentable in its current state. The subject is owned and occupied by Monroe County and is being used as offices/storage. There is no rental history for the property and from research the trend in the Florida Keys is for owner occupation. There is a high vacancy rate for building such as the subject. The subject has only one meter and is primarily set up for an owner occupier. The income approach therefore was not developed as there is a lack of comparables, the majority of these properties were either vacant or owner occupied and have no rental history. The cost approach is not reliable due to the difficulty in estimating depreciation and due to the fact that the approach does not take into account land values and this approach has not been developed. Most emphasis is given to the sales approach to reconcile an estimate of value. Therefore, in recognition of the purpose of this appraisal, and the type of property appraised, the AS IS Market Value on April 16th, 2013, is: Total via Sales Comparison Approach $621,000 Total via Income Approach FINAL RECONCILED VALUE NA $621,000 Appraisers of the Keys Page 60 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Opinion of Marketina Time: Reasonable marketing time is: an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. Source: Uniform Standards of Professional Appraisal Practice (USPAP), 2010-2011 Nine - Twelve months is an estimated marketing time. Appraisers of the Keys Page 61 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 PRIVACY POLICY NOTICE Title V of the Gramm -Leach -Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing any nonpublic personal information about you with a nonaffiliated party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Nestarick Appraisal & Consulting, Inc. We may collect nonpublic personal information about you from the following sources: • Information, such as your social security number, that we receive from you, your lender, or others involved in your transaction, such as the real estate agent, on applications or other forms; • Information about your transactions with us, our affiliates, or others, such as your loan account balances, payment history, parties to transactions, transaction expenses and your home's appraised value; • Information we receive from a consumer -reporting agency, such as your creditworthiness and credit history; • Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliated third parties as permitted by law. We also may disclose this information about our customers or former customers to nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements. Entities with whom Nestarick Appraisal & Consulting, Inc. has a joint marketing agreement have agreed to protect the privacy of our customer's nonpublic personal information by utilizing similar precautions and security measures as Nestarick Appraisal & Consulting, Inc. uses to protect this information and to use the information for lawful purposes. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. Appraisers of the Keys Page 62 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Certification Statement We certify that, to the best of our knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions and conclusions. • We have no present or prospective future interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved. • We have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). • No one provided significant real property appraisal assistance to the person(s) signing this certification. • We certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the appraisal firm. • 1 have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • Kevin Talbott, SRA, Cert Gen RZ2139 inspected the property, analyzed the income and expenses, inspected the comparable properties from the exterior and narrated the report. • Nicholas Farrar, MRICS, Registered Trainee Appraiser, R123641 inspected the property, analyzed the income and expenses, inspected the comparable properties from the exterior and narrated the report. Kevin Talbott, SRA CertGenRZ2139 Nicholas Farrar, MRICS, State Registered Trainee R123641 Appraisers of the Keys Page 63 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Addenda Appraisers of the Keys Page 64 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Property i'ruperty Search -- Munroe Cuunly PrDperty Appraiser Scott A Russell, CFA Property Appraiser Monroe County, Florida Pa 'c I ulS Key West (305) 292-3420 Marathon (305) 289-2550 Plantation Key (305) 852- 7130 Property Record Card _ Welbsite tested on IE8, IE9, & Firefox. Maps are now launching the new map appiicatiorA. Q FlaSh 10.3 or hlgher Alternate Key.-1513512 Parcel ID: 00417340-000000 Ownership Details Mailing Address: MONROE COUNTY PUBLIC SERVICE BLGG STOCK ISLAND KEY WEST, FL 33040 Property Details PC Cade:. a5 - COUNTIES OTHER THAN EPCIUSTf Millsge Croup: 50VI AlTordahle 14D Housing: se4°i1f111- Town:hlp- 07.63,38 Ranget. 1 nzol R1' IO0 KEY HEIGHTS DR PI-ANTATION KEY Su8dN1s1un: KEY HEIGHTS SEC 2 Legal KEY HEIGHTS SEC-PON 2 P139-159 PLANTATION KEY' LOTS 1 2 8 24 BLK 1 I OR364 9 OR45B-399 OR5B9- t3vaptlan: 578 OR708-EI71 CFr? T1-782OP783-&&-JM908747-7a&749Dr OR"484E ORa40-1300136sE RE, 417 T1 6 417T2 COMBINED FOR ASSESSING PURPOSES 4-0-87 OR 1021.950 OR 1126-4528 htip:/Iwww.mepafl.org/PropSearch.aspx 4/25/2013 Appraisers of the Keys Page 65 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Property Search -- Monroe County Property Appraiser Page 2 of 5 Click Map Image to open interactive viewer Exemptions Exemption Amount 14 COUNT"NO5 425.819-00 I_ Land Details Land Use Code Frontage Depth Land Area 8600 - COUNTY 105 120 12.600.00 SF http://www.mcpafl.org/PropSearch.aspx 4/2512013 Appraisers of the Keys Page 66 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Property 5eareh -- Monroe County Property Appraiser Page 3 of 5 8605 - COUNTY 65 120 7,000.00 SF 8600 - COUNTY 60 120 7,200.00 SF Building Summary Number of Buildings: 1 Number of Commercial Buildings: 1 Total Living Area. 2237 Year Built: 1970 Building 1 Details Building Type Effective Aga Pr: Year Built 1870 Functional Obs 0 Inclusions: Root Type Heat 1 Heat SrG 1 Extra Features: 2 Fla Bath 0 3 fix Bath 0 4 Fier Bath 0 5 Fix Beth 0 6 Fla Bath 0 7 Fix Bath 0 Ulm Fix is Sections: Condition A Gualily Grade 350 P'eriawter 306 Depreciallon % 23 Special Arch 0 Grnd Floor Area 2.237 Economic Obs 0 http://www.mcpan.org/PropSearch.a,;px Roof Cover Foundation Heat Bedrooms 0 Heat Src 2 vacuum 0 Garbage Disposal o Compactor 17 Security 0 Intercom 0 Fireplaces 0 Dishwasher 0 4125%20 13 Appraisers of the Keys Page 67 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islarnorada, FL 33036 Property Search -- Monroe County Property Appraiser Page 4 of 5 Nbr Type Exi Wall 0 Stories Year Built Attic Arm Basement % Finished Basement % Area 1 FLA 1 1969 2.237 EPa 1969 126 Interior Finish! Section Nbr Interior Finish Nbr Type Area % Sprinkler AEG 13053 COONTY BLDGS B Toll N V 13054 EPB 10t1 N Y Exterior Walk Interior Finish Nor Type Area "b 4494 C.EI,S- 100 Mist Improvement Details Nhr Type # Unils Length Width Year Built Roll Year grade Llfe 1 CL2.CH UNK FFNICE 2,100 SF 350 6 1989 1990 2 30 Appraiser Notes FORMERLY DESERT PALM MOTEL *90 = PUBLIC WORKS MONROE Cculmy Parcel Value History Certifier[ Roll Values View Tars for [Iris Parcel. Roll Year Total Btdg Value Total Mlse Im roverrlent Value Total Land Value Total Just (Market) Value Total Assessed School Exempt School Taxable Value Value Value 2012 534,430 1,850 89,700 425.819 425,819 425,819 f] 2011 351513 1,680 89,700 443,193 443,193 443.193 0 2010 351.813 1,680 NAG 443.193 443193 443,193 0 2009 369.186 I'm 117.300 488.166 488,166 489.1 SE 0 20M 369.186 1,660 138,000 508,866 508.865 508.066 0 2007 247,677 1,743 118.000 3B7,620 387.620 387.520 0 2005 253.709 11905 138,t700 393.614 393.614 393.614 0 2005 253,709 2,027 136,000 393,736 393,736 393,736 0 2004 256.620 2.148 138,000 396,768 3%,768 296.768 0 2003 ali,620 �,310 138.000 396.930 39s,930 396,930 0 2002 2.56.520 2,452 138.000 397.052 391,052 397,0S2 0 2001 256.620 2.553 85,950 345.123 345,123 345,123 0 2000 163.301 1,590 58.350 223241 223,241 223,241 0 1999 163,230 1,661 56.350 223.241 223,241 223.241 0 1990 163-159 1.732 59,350 223.241 22Z241 223,241 0 iittp://www.mcpan.org/PropSearch.aspx 4125/20 t 3 Appraisers of the Keys Page 68 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Property Search -- Monroe County Property Appraiser Page 5 of 5 1997 163,06.1 1,827 59,390 223,241 223.241 223.241 11 199G 162.993 1.998 56,350 223.241 221241 223.241 0 1995 162,921 1,970 58.350 223.241 =241 223,241 0 1994 162,826 2.065 59,35D 223,241 223.241 223,24i 0 1993 162,755 2.136 58,350 223.241 223.241 223,241 0 1992 162,684 2,207 58,350 223.241 223,241 Mr241 0 1991 182.58E 2,302 55.3353 228,241 223,241 223241 0 1999 155,016 9,E75 58,350 223,241 22.3,241 223.241 0 19B9 129.394 10,210 54,600 194.204 194.204 0 194,204 199a 104,363 81086 54,600 167,049 187,049 0 167,049 1987 100239 648 48,090 156.867 156,667 25.0% 131.667 1986 109283 0 27.090 127,373 127,373 25.000 $02.373 1965 72,00E a 27,090 99.098 99,099 25.000 74.098 1984 64;948 a 27490 92,0m 92,038 25,000 67 038 1 E83 9t1.i43 0 2t1,374 110.617 11 C',51'1 25,009 W'517 1982 100,772 0 20,074 121,146 121.146 5,000 116.146 Parcel Sales History NGfE Sales do nul generally s1now up in our compuler system until about Iwo to three months after the date of sale. If a recent sale does not show up in this list, please allow more time far the sale racord to he pfocussnd. Thank you to( your pattence and undeastaradtnq_ Sale Date Official Recards RoaWftge Moe Instrument Quallfle lion 411+1990 1126/1528 330,I706 WD U 51111987 1021/950 200,900 WD Q This page has been visited 282.861 times. Monroe County Monroe County Property Appraiser Scott P. Russell, CFA P.O. Box 1176 Key West, FL 33041-1176 http://www.mcpan.tirg/PropSearch,aspx 4/25/2f113 Appraisers of the Keys Page 69 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Subject Building Sketch 3V 5 Lam` 9 m' 6.r1� Mr? rd reb Ids $� Wk. G� Cr�a nYd C/4� alf— ]3' G1o� h FL—. flex _ Ike:: S. P: _.like 7S INN U—t b,aa-4. Area Calculations Summary Living Are Calculation Details °Im. l°cor :7.111 :k`. Sx3 + 15 119 x 14 + t665 20 x 20 4DU ill x 33 + 330 Tat3I Uvhig Area [tLolndeA): 2411 Sq it Naal•I114h0 AFe7 {3orayc 200 Sa it HI x 20 + 2013 TQTAL Ske;eh scl`xarebM ala MDJi!. Inc. 1-'_G_-31a-ro]e Appraisers of the Keys Page 70 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Zoning: Munivodg rgte I of Sec. 30-701. • Puhllc and semipublic services (M aanipg dlstrlcl. Iai Pu pase and Word Ill The pu+pme or inn public anal samf public sarvlces lPS) carting difiVld is la a[,lean+mpdale euisring pohllc anti seml-public seruic@,, tads l" and uses, wtrelher owneu ar managed ey a by a lederal, slate, county or munrsipal agency. by an dldMNal or corporallon ar 0 a putl;aoivale partnership, Mlle ensuring that Wenllal Impaels on adjacent G+oaeMWE. are miligaldd. Ili This zonng district rs estamlWlud Whirr Me taosmienttai High (RH), Mixod Use (MUI, PubIlE and Semi•PulAlc Services (PS) and Irrduslner 0) FLUM aatagOnes. tbi Permirred uses M Gerelaker's iolage; lei Aceessaryuses and slniluras. 13) Hurricane or emorgoncy Shelter; (4) Coilpoatioo 00 owlin vdrol6s51,;101ty; iN Arls and e>1lbural lacllily, 15) CI01 delerrse lac,wty 17) Domestic valence carrier; 48) D@lanllnn lacllpl 19i Emergency medal and ambulance saruref. 1101 'Fire siatlon: 01j {944Crrlrtrertl0IKW: 1121 Houses of worship and relrq+ous laelliGes: 1131 Inlraslrudlule and munIC941 ullhty WAItim 1141 Poke slaliop; and 115) Resklalwal•Institutluhal uses. 10 Useff pemutlled as a mmw corroYtavrrai us& 01 l Commumly pier or public dod.. 01 DwAing tdcillty; 13) Heahh related rrislitulions including care lar0ty and supparlive howih care dwelling LJnits; 14h Hos�l'alcampox. iN Regyclatycwor: 61 RehatOrIallon center: 171 Spans arena; 15) Allached waelns fatality: 1D1 Rook9cenrarrl of axiOng wireless taCllily; and I101 Slea dl Wlrehan ladlRy. btil Uses parmiftad ds d majtir trarrddkr 4 use. ill 14pllpad: 11ti Sdhoota; 131 New w-intonfaclllty; and fitirp;illllrrarv.nruntcodrennlprinl.xvCa'lh�irclionalD--IW7 &kf'I1d- 4nAfM13 Appraisers of the Keys Page 71 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Municode Page 2 of 2 (4) Ouldoor stgrage and display areas pursuant IQ article VI, division 8 of this chapter, (a) eui!''B dovefgomenf slandards. {1 I Minimum 1w area: Not UOkable. (2) Maximum building height: 35lout. (3) Maximum omlgpwe lot coverage: Not applicable. (4p Sew; a- Front yard: Mmrmurn 25 feat. b- Side yard; A minimum of live loot on each side for a minimum combined total of 15 feet for both sides. C. Rear yerd: Minimum 20 IM. d• Rear yard on shoreline; See article VII, division 2 of this chapter. (5) RIM aroa, MAximi)m Ileor area ipt pfimipatl StruiAur9 ' 0.25 FAR or Q.36 FAR with TI]Rs, (8) Densdy:Or@ welling unit par lot, or up to 12 dwelling units per acre far resideatial• institutional uses. M Open space: Sae articre VII, division A of this eflaptar. {&I I,an¢scmpe requiremen%7 Sec dMeign $ gl this article- Far-Nng requlremengs; See division T of this aftle. rvrd nv,. u2-49. § 0(5 l 2,1 r sr- 0i%, 4za >te oz•:s, ¢ t, 1I-Zr-ZWZz httpo/Aibm) municode.curNprint.asp0h=&clientlU=19975&HTM; Rcqucmi hup%.Aa%2l` 4r24rI0B Appraisers of the Keys Page 72 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Transfer of Development Rights: 1�1. f I rfr July 7.2009 Mark Koach, kxPcutivc ❑inter Monn- County tared Authority 12110 Trumm Awijke, Suite 207 Kcy VL'cct, FL, 3331A9 SUERC:T: DWFLLING UNIT DET'EFLNIINATION AT I KEY IIEIGHTS DRIVE, PLANTATION KEY, ISLAMORADA, FL HAYINif AK# lSlMJ7, Dear .W.. Roach. This letter confirms that lslamorada, 4'illagc of Islands recoenines eight legally inslah3ishcd Lnulaient dtivelling (motc3) attits al ilte subject Nd[lress. nia deter inii(iatt is based on the foliowlug criteria listed in the ls]atiiorada Code of Ordi nsnccs thrnuglt ()ndinancc [F4-I18: ■ Sxtion .311 171(d)(;). A 4tonmc Cuunh, Prop€rty Kccord Card shovring the existence of Lhe motol units si=u 1957 Ems been provided. Prior to 19,60 Lheme %were au Mowue County inning Reguiadons and iLriefure an right unit motel pnlrEd have 11Ce11 WaSURoWd at that time 'rhe Card indicatc_s the units conrintic4 w exiSL as motri units until the safe dnie of aAprit I. 1990. An ufFciai rnaard by Monroe County provided is a Warranty ]Deed, jeccWed on April 4. 1990. This deed indicates the sale ofchr hewer Palm Motel to Motuoe County - You hate also inquired as to the transferability of the" rights- village Ordinanoe 07.32 ("the Clydinance') regarding I ranafer of llcvc lapmcnr Kights Jrrnvidcs for the ksl Inv,ing infannati nn. L he suhjce# Property' (sender site) is trscatcd within the Public and Semi -Public Services (PS)iuzkw DLAricL. T'he Ordiitattce a[Eu»a fur receiver sites ]ucated in either the Village Center (VC). Towisl Commercial (TC) or I away Cujnity :iai I C-) zoning distrut. 76'trauhafer of four or less units wrhuld acquire a Site Ylarh and h4innr C nndi#innal (5c Apprcwal and the transfer of tivc or more %would n5quire a Site flan and 4dajnr Crinditkinal 0sc Approval. 1 have attached the Chdinance in full for your vac. Ify'ou hart any gw5rions, or if I can be oftitrther assistance, please do riot hesitate to contact me at 305-664.6400- 5 imeruJy- G,51W Edward Koemis, AJCP Deputy Village lvhdiager r Planning and t7cs•clnpruent `3cil,icCs Director C: I4enimilt Fields, Village Manager Nina 13oniske, Viltage Acwrnev T:'Plunna;�'Dxxllin� L�nii T�x:xmin�tions}lC�.mtr E'uhl�. tt%uks Ouitclin� -,icl W..� .},� F 144j Ij%cf5915 IILEiI'A;I;, $ Sunil E lui•r. Is lair:i :da, Fi. • P fl. hi:x SFr, lxlam it Siia, rl 1711 6 Pae3:134:.'4444-Lvra.uelamr.-radmrl.us Appraisers of the Keys Page 73 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Purchase Order: MO1<ROr 'COUNTY N)W OF EX-UNTY CCNC:`ISStLQ I:R3 PrlkZ PD. 1 P'-U R C..14 .A . E T O .F_{ D E R J T L:}{F:m1''1` NUM3V-:t�.. 0n�8U1s-r6 941: l'1:NtJt•R: aBIP 'T04 94744 M,C. C?RJEC1 1AYAG)~C1xI•• L RI1?Vx KEYS TNT- DBA 1,1VQ •5Tt44#1rC}I.57, �Nll'.�i..RM 2-.2X5 -.3G40 3206.-F-LAIGIER U 4T .0 AAN: RISER . s�lFFi:'4TFRRT. RJR. R F.Tf k"N °IGFR• kiss. h9r0CCSrsa-W. RQ, .TV- '.NET 30-i:AYS Fes:` 1LPI.5C„ r R%TS;L Of 1•QtT_XEi C11.. ¢.QO IrC!,T #PPPAI �Ai-: OF 103 KEli HETG�ITS 'D'IVE. 3909. GGOO : :. 3r 90C.. 00. SEE RPT�PG FsL G'CDJ1vT . AMOUNT 1 3 CD . '5fx) F3CrslC' 3, 9+70.Q0 "f4v.:# ���Jf'HUR-TY: a w 4 -- . . - Appraisers of the Keys Page 74 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Flood Map: OW _ r rssr�a� t, f P � •f _. s v Source: FEMA flood website. Appraisers of the Keys Page 75 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 License: srKrl: or FLi]Hl®A AC# 6 ?a 3 15 Congralula0ons! Wllh this Ilcense yrou become one of Vie nearly one mullion DEPARTi�TdT OF avS la'ESS ANp Slor duns kdan5ad b1+ Ne DaparMent 4i BaGina68 and PTgzs ianal Regulation. PROFESSIONAL REGi7LATIgN Our pmPe6slpnaW and tiuslneaxe sage rre.a arahitec[s to yacht b of —,'rum boxers a barbeque resmurenls, and they keep Florida's et:arlomy strong. R87139 11/20122 1201Q6831 Eye/y' aay Vre Wmk to lTpro— the Way"du b in.se. in order Io serve you better. Ferintpmatlon aboul our SenelGas. Please log onle WWW.myflod;%Ilcenax. - CERTIFIED GENERALAppRAISER There you son Cmd more Informalkn about our tlivdslens and the regulations that TALBOTT, KEVTN r4l ENE impact 1rou, subscxiho to department newslelere and laam mare about the oaparimanl's initkitlms. Our ftC40n al the Department iy: U.I. Effld imlly, Regulate Fa Hy. We conslardly sb ve to swim yvu batlat so that you Can serve youtdustomer5. - Ces runs, „"._• cn. osw�.r,n. ar n.475 sa Thank you for dolog business In Ftodda. and angralulalbna an yaw new license! ,./�..,.s. �,.. uov 7e, 7014 =Z13ioa3]Gd IET„Cr! IiERI AC # 6 7 8 3 3 J STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATICN FLORIDA REAL ESTATE APPRAISAL BD SE4L01 L1i113QQ2246 LICENSE NBR 11i2Q/2012 120106g31 RZ2139 The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED 1➢nder the provisions of Chapter 475 FS, Expiration date: NOV 30, 2014 TALBOTT, KEVIN EUGENE 3208 FLAGLER AVE KAY WE5T FL 31040 RICK SCOTT KEN LAWSON GOVERNOR �1�F1dYf .RER4l.IRE4,BY LRW SECRETARY Appraisers of the Keys Page 76 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 E&O: Liberty_ Real Estate Appraisers Professional Surpin Imuranre Corporation.. Liability Ift W-.m r G. LIBERTY SURPLUS INSURANCE CORPORATION (A Sunk Insurance Company, hereinafter The 'Company') NaTued Insured; APPRAISERS OF THE KEYS, INC. Policy Number: LSIOD2307-012 Kerur Eugene Talbot! Elkelive Wle7 U31M2013 Customer ID: 136992 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COMMERCIAL PROPERTY APPRAISAL ENDORSEMENT It is agreed that the following Insureds have been approved by the Company to perform Professional Services involving commercial property: Insured Effective Date of Approval Kevin Talboll All other lerms and oWitions of this Policy remain unchanged. Page 1ofI LIAO13 (08111) nxr,I:f►zill�l Appraisers of the Keys Page 77 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Liberty Real Estate Appraisers Professional Surplus Insurance Corporation... Liability Vk M—ber at Ub yMnx,W Gmnp Date issued Policy Number Previous Policy Nurnbcr 02/22/2013 LSi002307-012 LSID02307-011 LIBERTY SURPLUS INSURANCE CORPORATION (A Stock Insurance Company, hereinaRer the "Company') 05 Berkeley Street Boston, MA 02117 THIS IS A CLAIMS MADE AND REPORTED POLICY. PLEASE READ IT CAREFULLY - Item DECLARATIONS 1, Customer ID- 136992 This insurance is issued pursuant to the Florida Named Insured- Surplus Lines law, Persons insured by surplus APPRAISER$ OF THE KEYS, INC. lines carriers do not have the protection of the Florida insurance Guaranty Act to the extent of Kevin Eu ene Talbert g any right of recovery for the obligation of an 3209 Flagler Ave. in;olvenl unlicensed insurer, Key Wen. FL 33040 2. Poticy Period: From: 03/1812013 To: 03118r2014 12:01 A.M. Standard Time at the address stated in Item 1, 3. Deductible- SIND Each Claim 4. Retroactive pate: 03118/1990 5. inception Nate: 0311812002 6. Limits of Liability; The Limit of Liability for Each Claim and in A. $1.000.000 Each Claim the Aggregate is reduced by Damages and a. $1.000,000 Aggregate Claims Expenses as defined in the Policy. 7. Mail All Nnti— tp Aggnn: LEA Administrators & Insurance Services 1600 Anacapa Street Santa Barbara, California 93101 (805) 963-6624; Fax: (805) 962-0652 8. Annual Premium: $1, a05. 00 t $ 90.25 Surplus Lines Tax + $23.46 FHCF Assessment 9. Number of Appraisers: 2 10. Forms attached at issue: LIA002S (10/11) GPO 4916 03 10 LIA009 (08/11) LIA012 (08/ 11) LIA013 (08/t 1) SC-9 (W08) This D¢olztations Page together with the completed and signed Policy Application including all attachments and exhibits thereto, and the Appraisers of the Keys Page 78 of 79 Order #00044564 File #10232 83292 Overseas Hwy, Islamorada, FL 33036 Liberty Real Estate Appraisers Professional Surplus Insurance Corporation.. niemr ..rcemaunwcmYm Liability LIBERTY SURPLUS INSURANCE CORPORATION (A Stock Insurance Company, hereina@er the "Company') Named insured: APPRAISERS OF THE KEYS, INC. Policy Number: LS1002307-012 Kevbi Eugene Talbott Effective Date. 0311912013 Customer ID: 136992 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE BEAD IT CAREFULLY. ADDITIONAL COVERED PERSONS ENDORSEMENT It is agreed that Section IV of the Policy. Definition (1) is amended to include: "Insured" means: The persons identified below, bur only while acting on behalf of the Named Insured: Coverage Principal/Owner, Name Effective Date Appraiser or Trainee Kevin Talbott 03118/2013 Principal10wtter Nicholas D. Farrar 03118/2013 Appraiser Page I of i LIAO12 (08111) Appraisers of the Keys Page 79 of 79 Order #00044564 File #10232 Village's Appraisals (2) (includes Phase I Environmental Survey) A SUMMARY APPRAISAL OF THE MONROE COUNTY PUBLIC WORKS BUILDING LOCATED AT 103 KEY HEIGHTS DRIVE PLANTATION KEY, FLORIDA PREPARED FOR REBECCA OROZCO, FIELD ENGINEER CITY OF ISLAMORADA, VILLAGE OF ISLANDS 81900 OVERSEAS HIGHWAY, SUITE 204 ISLAMORADA, FLORIDA 33036 EFFECTIVE DATE OF VALUATION JANUARY 26, 2013 PREPARED BY MARRR & ASSOCIATES APPRAISAL COMPANY, INC. 2665 AUCILLA ROAD MONTICELLO, FLORIDA 32344 Marr & Associates Appraisal Company, Inc. Trent Marr, MAI, SRPA Phone 850-342-1114 State Certified General Real Estate Appraiser # RZ 514 2665 Aucilla Road, Monticello, Florida 32344 trentmarrkembargmail.com February 7, 2013 Rebecca Orozco, Field Engineer City of Islamorada, Village of Islands 81900 Overseas Highway, Suite 204 Islamorada, FL 33036 Re: An appraisal of the public works building, located at 103 Key Heights Drive and Overseas Highway, Plantation Key, Monroe County, Florida. Dear Ms. Orozco: As you requested, we have prepared a summary appraisal report on the above captioned property. The property consists of a dilapidated motel that is being used by the Monroe County Public Works Department for storage and office use. This Summary Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2-2b of the Uniform Standards of Professional Appraisal Practice (USPAP) for a Summary Appraisal Report. As such, it presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in my file. The depth of the discussion contained in this report is specific to the needs of the client and for the intended use stated herein. The appraiser is not responsible for unauthorized use of this report. The site is zoned PS (Public Service) and the PS zoning is intended for governmental use. Ed Koconis, Director of the Islamorada Planning Department indicated that any use based on the current zoning would be limited to governmental. However, because the original use consisted of a motel and a motel represents a commercial use, a zoning change is probable, and if requested would be recommended by him. The zoning change would take approximately 18-24 months and in addition to the City of Islamorada, would have to be approved by DCA. The market value in this report is based on the assumption that the site can be re -zoned to a commercial use and the current use could be re -developed on the site. Based upon a personal inspection of the subject property, the subject neighborhood and all comparable data, as well as upon the investigations and analyses undertaken, we have formed the opinion that, as of January 26, 2013, and subject to the assumptions and limiting conditions set forth in this report, the subject property has an "as is" market value of: FOUR HUNDRED FIFTY THREE THOUSAND DOLLARS ($453,000) Respectfully Submitted, Marr & Associates Appraisal Company, Inc. Trent Marr, MAI, SRPA Mary N. Marr State Certified General Real Estate Appraiser # RZ 514 State Certified Residential Real Estate Appraiser # RD 6673 TABLE OF CONTENTS Title Page Letter of Transmittal Table of Contents INTRODUCTION ExecutiveSummary.........................................................................................................................1 Photographsof the Subject.......................................................................................................... 2-5 Certification.....................................................................................................................................6 Assumptions and Limiting Conditions............................................................................................7 PropertyIdentification.....................................................................................................................8 Definitionof Market Value..............................................................................................................8 Ownerof Record..............................................................................................................................8 LegalDescription.............................................................................................................................9 PropertyRights Appraised...............................................................................................................9 Assessmentand Taxes.....................................................................................................................9 Dateof Value...................................................................................................................................9 Purposeof the Appraisal..................................................................................................................9 Intended User and Use of the Appraisal..........................................................................................9 SalesHistory....................................................................................................................................9 Statementof Conformation............................................................................................................10 Scopeof the Appraisal...................................................................................................................10 ExposureTime...............................................................................................................................10 FloridaKeys Area Summary.........................................................................................................11 SUBJECT PROPERTY DATA Neighborhood Description....................................................................................................... 11-12 ImprovementDescription..............................................................................................................12 LocationMaps...............................................................................................................................13 SiteDescription..............................................................................................................................14 Survey............................................................................................................................................15 Zoning............................................................................................................................................16 Highestand Best Use.....................................................................................................................17 VALUATION SalesComparison Approach..........................................................................................................18 SalesMap.......................................................................................................................................19 Comparable Sale Write-Ups.................................................................................................... 20-25 Summaryof Sales..........................................................................................................................26 Summaryof Adjustments..............................................................................................................26 SalesAnalysis................................................................................................................................27 Conclusionof Value......................................................................................................................28 ADDENDA Qualifications of the Appraisers C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. I EXECUTIVE SUMMARY PROPERTY IDENTIFICATION: The site is improved with a dated and dilapidated motel containing 2,412 square feet, totaling 8 motel units. PROPERTY LOCATION: The site is located along the SWC of Key Heights Drive, and Overseas Highway. The street address is 103 Key Heights Drive, Plantation Key, Florida. DATE OF VALUE: PROPERTY RIGHTS APPRAISED: SITE: HIGHEST AND BEST USE: LEGAL DESCRIPTION: RE 9 ASSESSMENT/TAXES: ZONING: MARKET VALUE ESTIMATES COMMENTS January 26, 2013 The purpose of the appraisal was to estimate the market value of the fee simple estate of the subject property. The site is mostly rectangular. Based on the survey the site totals 27,442 square feet. Request a zoning change from PS (Public Service) to Commercial and re -develop the site. Block 11, Lots 1, 2 and 24, Key Heights Section 2, Plat Book 3, Page 159, Monroe County, Florida. 00417340-0000000 $425,819 / $0.0 PS (Public Service) $453,000 The site is zoned PS. Uses under the PS zoning are limited to governmental. The property was appraised for Monroe County in 2008. I contacted the Director of Planning at that time "Ed Koconis" Mr. Koconis indicated that the site is grandfathered in for 8 hotel units. However, Mr. Koconis indicated that because of the PS zoning the units could not be re -developed on the site and would have to be transferred to an alternative site. Several attempts were made on the date of this appraisal to Mr. Koconis to verify the information provided in 2008 was still applicable. However, Mr. Koconis never returned any of our messages. I therefore, can only assume that the previous information provided by Mr. Koconis is still correct and applicable. It is assumed that the site could be re -developed with the same square footage and similar current use. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 2 Subject Photographs Frontage on Overseas Highway Subject Front from Key Heights Drive Subject West side from Orlando Drive Subject Front C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 3 Subject Photographs Subject Rear Subject Front Subject Out Buildings Overseas Highway Southbound C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 4 Subject Photographs Overseas Highway Northbound Key Heights Drive (Subject on Left) Orlando Drive (Subject on Right) Subject Interior C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 5 Subject Photographs Subject Interior Subject Interior Subject Interior Subject Interior / Ceiling Damage C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 6 CERTIFICATE OF VALUE The undersigned does hereby certify that, to the best of our knowledge and belief that: The statements of fact contained in this appraisal report, upon which the analysis, opinions and conclusions expressed herein are based, are true and correct. The reported analysis, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. We have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved. Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. This appraisal assignment was not based upon a requested minimum value, a specific value, or the approval of a loan. The reports and 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 Practice of the Appraisal Institute - the State of Florida requirements for state -certified appraisers - Uniform Standards of Professional Appraisal Practice (USPAP) We have complied with the USPAP competency provision. This appraisal report sets forth all of the limiting conditions imposed by the terms of this assignment or by the undersigned affecting the analyses, opinions and conclusions contained in this report. Mary Marr inspected the subject property and provided professional assistance in the preparation of the report. Trent Marr, MAI, SRPA has inspected the exterior on prior occasions. We have not performed any other services within the last 36 months on the subject property. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Additionally, it is subject to review by the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. As of the date of this report, Trent Marr has completed the requirements of the continuing education program of the Appraisal Institute. 7 1/26/13 ------------------------------------ -------- Trent Marr, MAI, SRPA Date State Certified General Real Estate Appraiser # RZ 514 ------------------------------------- 1/26/13 Mary N. Marr--------- State Certified Residential Real Estate Appraiser RD 6673 Date C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. % ASSUMPTIONS AND LIMITING CONDITIONS The legal description used in this report is assumed to be correct. No survey of the properties has been made by the appraiser and no responsibility is assumed in connection with such matters. Sketches in this report are included only to assist the reader in visualizing the properties. No responsibility is assumed for matters of legal nature affecting title to the properties nor is an opinion of title rendered. The title is assumed to be good and marketable. Information and data furnished by others is usually assumed to be true, correct and reliable. When such information and data appears to be dubious and when it is critical to the appraisal, a reasonable effort has been made to verify all such information. No responsibility for the accuracy of any information furnished by others to the appraiser is assumed by the appraiser. All mortgages, liens, encumbrances, leases, and servitude have been disregarded unless so specified within the report. The property is appraised as though under responsible ownership and competent management. It is assumed that there are no hidden or unapparent conditions of the properties, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them. Unless noted, all mechanical components are assumed to be in operable condition and status standard for properties of the subject type. Conditions of heating, cooling, ventilating, electrical, and plumbing equipment is considered to be commensurate with the condition of the balance of the improvements unless otherwise stated. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non -conformity has been stated, defined and considered in the appraisal report. It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. It is assumed that the utilization of the land and improvements is within the boundaries or properties lines of the properties described and that there is not encroachment or trespass unless noted within the report. The appraiser will not be required to give testimony or appear in court because of having made this appraisal, with reference to the properties in question, unless arrangements have been previously made thereto. The site is zoned PS (Public Service) and the PS zoning is intended for governmental use The market value in this report is based on the assumption that the site can be re -zoned to a commercial use and the current use could be re -developed on the site. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 8 PROPERTY IDENTIFICATION The site is located along the southwest corner of Key Heights Drive and Overseas Highway, mile marker 89, Plantation Key, Florida. The site was originally developed as a motel with 8 licensed units. The site was purchased by Monroe County in the 90's and was converted to storage and office use for the public service building. The buildings were built in 1969 and are in poor condition. The site totals 27,422 square feet. DEFINITION OF MARKET VALUE The following definition of market value is used by the Appraisal Institute and many federal financial institutions and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: buyer and seller are typically motivated; 2. both parties are well informed or well advised, and each acting in what he considers his own best interest; reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."' OWNER OF RECORD Monroe County Public Service Building Stock Island, Key West, Florida 33040 Federal Register, volume 55, number 163, August 22, 1990, pages 34228 and 34229; also quoted in The Appraisal ofReal Estate loth Edition, (Chicago: Appraisal Institute, 1992) Page 21; also quoted in the introduction to the Standards of Professional Appraisal Practice of the Appraisal Institute. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 9 LEGAL DESCRIPTION Block 11, Lots 1, 2 and 24, Key Heights Section 2, Plat Book 3, Page 159, Monroe County, Florida. PROPERTY RIGHTS APPRAISED The property rights being appraised are the fee simple estate defined as: "Absolute ownership unencumbered by any other interest or estate, subject only to the limitation imposed by the governmental powers of taxation, eminent domain, police power, and escheat." ASSESSMENT AND TAXES The site is located within the Monroe County taxing district. The 2012 taxes are summarized as follows. Real Estate Number Assessment Taxes 00417340-000000 $425,819 $0.0 Based on the market value estimated in this report, the assessed value is reasonable. Because the site is government owned it is not being taxed. DATE OF VALUE ESTIMATE The date of the inspection and value estimate is January 26, 2013. The date of this report is February 7, 2013. PURPOSE OF THE REPORT The purpose of the report is to estimate the market value of the fee simple interest of the subject property. CLIENT Rebecca Orozco, Field Engineer City of Islamorada, Village of Islands INTENDED USER (S) AND USE OF THE REPORT The intended user of this report is The Village of Islamorada. The intended use is for negotiating purposes. HISTORY OF SUBJECT There have been no sales of the subject within the past 5 years. Based on the property record card, the last sale of the subject was in 1990 for $330,000. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 10 STATEMENT OF CONFORMATION To the best of my knowledge, this appraisal conforms to: The Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Foundation; Federal regulations as stipulated by The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and other regulatory requirements that may apply, specifically 12 CFR Part 34 (Title XI of FIRREA); the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute; and the competency provision of USPAP. The subject consists of a dilapidated motel. The cost approach and income approach were not considered applicable and have been omitted. The Sales Comparison Approach was used to value the subject in this summary report. SCOPE OF THE APPRAISAL The scope of this appraisal consisted of an inspection of the subject site, subject improvements, neighborhood and comparable properties. The square footage was based on measurements made by Mary N. Marr. The cost and income approaches were not considered applicable and have been omitted. The sales comparison approach is most reliable for properties like the subject and was the only approach used in this summary report. The sales used in this report were located in the Upper and Middle Keys and were the most similar and recent ones available. Information about the comparables was verified by public records, MLS and/or a party involved in the transaction. In developing the sales comparison approach, market data was researched and collected from public records and the Florida Keys Multiple Listing Service. Public records were researched via Loop Net, the local MLS and online computer access. The size and zoning for the sales was taken from the online property record card, county aerial zoning map, and online City of Islamorada zoning web page. Numerous sales were researched and inspected and those sales considered most similar were used in this report. EXPOSURE TIME Exposure time is defined as. The time a property remains on the market. 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 on an analysis of past events assuming a competitive and open market'. The site is located on Plantation Key within the Incorporated Islamorada. Demand and prices have declined since the height of the real estate market in 2005 and early 2006. The Florida Keys has limited vacant land for development and improved sites have typically have brought strong demand and premium prices. Based on the sales used in this report, if the subject is reasonably priced an exposure time of 18-24 months could have been anticipated. t The Dictionary of Real Estate Appraisal, published by the Appraisal Institute 2010, 5d' edition, page73 C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. I I FLORIDA KEYS AREA SUMMARY Monroe County is the southernmost county in the United States. The major draw to this area is the mild climate, pristine waters and water related activities. Monroe County's economy has steadily increased over the past several years. The tourist industry is the dominating market for revenues generated in the county. The steady increase in tourism over the past several years is expected to continue its growth, indicating a strong future demand for most existing commercial and residential buildings in the area. Monroe County has strict building codes for both residential and commercial properties. Residential permits are issued quarterly on a point system, thus, limiting growth. The real estate market in County reached its height in 2005 and early 2006, and has since declined. Although there has been a downward trend in prices, because of the limited supply of vacant land as well as the strict building guidelines in the county, the current downward market trend is projected to be short-term, and is anticipated to stabilize and gain demand within the next several years. NEIGHBORHOOD DESCRIPTION / ISLAMORADA LOCATION The site is located in Incorporated Islamorada, along the southwest corner of Overseas Highway and Key Heights Drive, mile marker 89, Plantation Key, Florida. Islamorada is located in the Upper Keys and is approximately 77 miles south of Central Miami and 80 miles north of Key West. The entire incorporated Islamorada area extends from Plantation Key, mile marker 91 to Lower Matecumbe Key, mile marker 75.5. Overseas Highway is the main thoroughfare through Islamorada, as well as all of Monroe County. The neighborhood boundaries for the subject consist of all of Plantation Key, extending from mile marker 85.5 to mile marker 91. Tavernier Creek is located at mile marker 91 and is considered the northern boundary line. Snake Creek is located at mile marker 85.5 and is considered the southern boundary line. DEVELOPMENT TRENDS Development within Islamorada ranges from single family dwellings to numerous motels, hotels, restaurants, convenience stores and mixed use properties. The majority of commercial development is located along Overseas Highway and is centrally located near mile markers 82 - 84.5. World Wide Sportsman is centrally located in Islamorada and is one of the major shopping draws to the area. Plantation Key is also heavily developed, but less than Central Islamorada, with residential homes, motels, marinas and small commercial buildings. The residential homes range in price from $250,000 to over $5,000,000. The higher priced homes are the homes located on the Florida Bay or the Atlantic Ocean. There are also several condominium developments along the east side of the Old Highway, and the west side of Overseas Highway. The condominiums range in price from $200,000 to over $1,000,000. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 12 RECREATIONAL ACTIVITIES The major attraction of the Florida Keys as well as Islamorada, is the mild climate, fishing, diving and water activities. One of the major attractions of the Upper Keys is John Pennekamp State Park. Each year John Pennekamp State Park attracts in excess of one million visitors. John Pennekamp Park is approximately 78 square miles and is one of the few living reefs along Americas shoreline. Islamorada offers excellent fishing and diving activities and is one of the primary attractions to the area. EDUCATION There is one private and one public high school in the Upper Keys. Island Christian is a private school teaching grades kindergarten-12 and is located at mile marker 83. Coral Shores High is the only public high school for the Upper Keys and is located at mile marker 90. Plantation Key Middle and Elementary Schools are also located at mile marker 90. Also located in Coral Shores High School are classes held for Florida Keys Community College. Churches of numerous denominations are located within the neighborhood, including Baptist, Methodist, Church of Christ, Catholic, etc. ACCESS The subject is located on the northerly side of Overseas Highway, the westerly side of Key Heights Drive and the easterly side of Orlando Drive. Overseas Highway is the major thoroughfare for Islamorada and the Florida Keys. Overseas Highway begins in Key West at mile marker 0 and extends north over 120 miles to South Dade County. Key Heights and Orlando Drives are secondary streets that serve primarily residential homes. The subject has convenient access to the neighborhood and throughout the Upper Keys. CONCLUSION The subject is centrally located on Plantation Key and has excellent access throughout the Upper Keys and the Village of Islamorada. Islamorada incorporated in 1997 annexing out of the county. Thus, adopting their own land use plan and building regulations. Both commercial and residential construction is strictly regulated, thus, slowing the growth and increasing the demand for the area. The market has slowed down considerably since the height of 2005. Although the current market is experiencing a downward trend, due to the strict building guidelines and limited supply of coastal properties, the current trend is considered temporary, with demand expected to increase within the next several years. IMPROVEMETN DESCRIPTION The subject is improved with a dilapidated motel built in the 1969's. Based on the public records the site was purchased in 1990 and since it was purchased was converted to storage and office areas for the public works department of the county. The buildings total 2,412 square feet and are in poor condition. The improvements reflect minimal contributory value. However the improvements could be re -developed on the site and the value of the subject's land is significantly increased because of the building rights obtained from the existing structures. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 13 Subject Site �¢� 7a San IY/ _r a �� <F' � y r �.cn•L1,O� PLANTATION 14 d ARS4Y} FIR f'i.Lwm I! b '.7 'SY RS 1:caiuer i�a w (dlSu VON ifaha hiff hak um� clan `�'� Hn'�rr Ccw�Xv3 :mC OCEAN � E V CEAN udjee peg Pine Key Key west Plantation Key Location Map I#times#ead Flwride ��° d4 park 94S mingo � W LarW Subject Site Tave lei f kwRaTion Key as�rn€x��a� L}yica+ Marathon Florida Keys Location Map C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 14 SITE DESCRIPTION LOCATION The site is located at 103 Key Heights Drive, along the southwest corner of Key Heights Drive and Overseas Highway, mile marker 89, Plantation Key, Florida. Plantation Key is located within Incorporated Islamorada. DIMENSIONS, SIZE AND SHAPE The site is mostly rectangular. Because of the radius along the roads, the survey differs slightly from the recorded plat. Based on the survey, the site has 80.72 feet along Overseas Highway, 190.14 feet along Key Heights Drive and 100.06 feet along Orlando Drive. The southerly side abuts other commercial properties and has a slightly irregular property line. The south side has a total depth of 240 lineal feet. Based on the survey the site totals 27,442 square feet. TOPOGRAPHY AND VEGETATION The site is generally level and is at street grade. According to the Federal Emergency Management Community Panel Number 12087C1006K, the site is located in zone X. Zone X is not a 100 year flood zone. ACCESS The site has convenient access through Orlando Road, Key Heights Drive and Overseas Highway. Orlando Road and Key Heights Drive are paved two lane streets that serve primarily residential properties. Overseas Highway is two lanes at the subject and is the main thoroughfare for the entire county. UTILITIES Utilities are available to the site. This includes water by Florida Keys Aqueduct, telephone by AT & T, electricity by Florida Keys Electric and trash services by Islamorada. Septic tanks or aerobic systems are typical sewer facilities. I am assuming the site has legal septic or sewage facilities that conform to all state and county health codes. The City is in the process of installing a central sewer system. CONCLUSION The site is located along Overseas Highway and is accessible via paved streets, with convenient access to the Upper Keys. The site is compatible and conforms to the surrounding neighborhood. Refer to the survey on the following page for a depiction of the site. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 15 SURVEY C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 16 ZONING The site is zoned Public and Semi -Public Services (PS) by the Village of Islamorada. The Public and Semi -Public Services (PS) land use designation is intended to accommodate existing public and semi-public services. Including: governmental administration buildings; public schools; not -for -profit educational, recreational, religious, arts and cultural or health related institutions; hospital facilities and supportive health care units; residential institutional uses at a maximum of 12 units per acre, essential public services and facilities; fire and emergency operation facilities; and utilities. Wireless communications facilities may be provided as a major conditional use. Lands designated PS shall contain sufficient acreage and open space and be properly screened and buffered in order to minimize potential adverse impacts on adjacent land uses. The maximum floor area ratio for areas designated PS shall not exceed 0.25, except that a FAR up to 0.35 may be allowed on designated receiver sites through the transfer of development rights, as provided for in the Land Development Regulations. Pursuant to the concurrency management program described in Objective 9-1.2, the Village shall monitor the need for increased land area for public and semi-public services and shall ensure that the PS land use designation on the Future Land Use Map is sufficient to accommodate increased needs for these uses, including public schools and associated facilities. CONCLUSION The site is zoned PS. Uses under the PS zoning are limited to governmental. The property was appraised for Monroe County in 2008. I contacted the Director of Planning at that time "Ed Koconis" Mr. Koconis indicated that the site is grandfathered in for 8 hotel units. However, Mr. Koconis indicated that because of the PS zoning the units could not be re -developed on the site and would have to be transferred to an alternative site. Several attempts were made on the date of this appraisal to Mr. Koconis to verify the information provided in 2008 was still applicable. However, Mr. Koconis never returned any of our messages. I therefore, can only assume that the previous information provided by Mr. Koconis is still correct and applicable. The site is not located on the water; therefore, the receiver site would also be required to be non - water front. The site has been used for storage and office space by the county since it was purchased in 1990 and it is assumed that the current use could be re -developed on the site. The improvements were converted from motel use to storage and office space use when they were purchased by the county in the early 90's and could be re -developed with a similar use, however based on the PS zoning, only governmental use would be allowed. Mr. Koconis indicated that because the site was originally built as a commercial use, a zoning change is probable, and if a zoning change was requested he would recommend it. The zoning change would take 18-24 months and would also have to be approved by DCA. Again, because the site was developed as commercial, Mr. Koconis thought DCA would approve the zoning change. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 17 HIGHEST AND BEST USE The forces that affect the market value of a property also influence the property's highest and best use. In all valuation assignments, value estimates are based upon use. The highest and best use of a property to be appraised provides the foundation for a thorough investigation of the competitive positions of market participants. Consequently, highest and best use can be described as the foundation upon which market value rests. Highest and best use is defined as: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value." There are essentially four stages in analyzing the highest and best use of a property. These are legally permissible uses, physically possible uses, financially feasible uses and maximally productive use or the most profitable use. PHYSICALLY POSSIBLE USES Physically possible uses are those uses which are physically possible on the site. These uses change with the size, shape and terrain of the property in which development is to take place. The site totals 27,442 square feet. Physically, the site could be developed with many types of possible uses, including residential, commercial, industrial, etc. LEGALLY PERMISSIBLE USES Legally permissible uses are those uses which are legally permissible on the site. These uses vary with the type of zoning, building codes and deed restrictions pertaining to the property being appraised. The site is zoned PS and the PS zoning is primarily for governmental uses. FINANCIALLY FEASIBLE/MAXIMALLY PRODUCTIVE USE The site is currently being used as a public works building, including storage and office use. However, it was originally developed with a motel in the 1969. The Village of Islamorada recognizes 8 hotel/motel units on the site. However, because of the zoning, the units can not be re -developed on the site and must be transferred off site. Because the site is non -water front, the receiver site must also be non -water front. There is low demand for non -water front hotels in the Florida Keys. Thus, transferring the units off site would not be considered financially feasible, nor would it be feasible if rezoned to commercial, to develop non -water hotel units on the site. Based on the information provided by the director of planning, a zoning change to commercial is highly probable. Thus, the highest and best use is to request a zoning change and re -develop the site with a similar office and/or storage use. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 18 THE SALES COMPARISON APPROACH There are three common approaches to value, consisting of the cost approach, income approach and sales comparison approach. The sales comparison approach is considered the most reliable for residential properties. Thus, this was the approach used in this report. The sales comparison approach is based on the principles of supply and demand, substitution, balance and externalities, all of which affect the sales price of a property. The relationship between the supply of a type of property to its level of demand is a determining factor in its selling price. The principle of balance relates to the tendency of the market to constantly strive for an equilibrium between supply and demand. "To apply the sales comparison approach, an appraiser follows a systematic procedure: Research the market to obtain information on sales transactions, listings, and offers to purchase or sell properties that are similar to the subject property in terms of characteristics such as property type, date of sale, size, location, and zoning. 2. Verify the information by confirming that the data obtained are factually accurate and that the transactions reflect arm's-length market considerations. 3. Select relevant units of comparison (e.g., income multipliers or dollars per acre or per square foot) and develop a comparative analysis for each unit. 4. Compare comparable sale properties with the subject property using the elements of comparison and adjust the sale price of each comparable appropriately to the subject property or eliminate the property as a comparable. 5. Reconcile the various value indications produced from the analysis of comparables into a single value indication or a range of values. In an imprecise market subject to varying occupancies and economies, a range of values may be a better conclusion than a single value estimate."2 The site consists of 27,442 square feet and is improved with a dilapidated motel. There were no sales exactly like the subject. The sales ranged from vacant land to improved sites and were the most similar sales available. The sales provided a reasonable range of prices per square foot for the subject. Refer to the sales map for a depiction of the subject and comparable sales. Appraisal Institute, The Appraisal of Real Estate, 10th Edition (Chicago: Appraisal Institute, 1992) Page 371 clmPublic w Building, Plantation Key, Fl a 5m &Associates&ppr aisal CompM,U.19 SALES MAP C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 20 SALE ONE PROPERTY TYPE: SALES PRICE: DATE OF SALE: GRANTOR: GRANTEE: RECORDED: LEGAL DESCRIPTION LOCATION PARCEL 4: ZONING: IMPROVEMENTS: PARCEL SIZE: PRICE PER SQ FT OF LAND AREA: Office & Excess Land $150,000 June 2011 Mark Gregg Mary Pruett OR Book 2522, Page 1561, Monroe County Lot 12, Block 1, Ocean View, Plat Book 1, Page 193 of the public records of Monroe County, Florida. This site is on the ocean side of Overseas Highway in Islamorada. The street address is 82921 Overseas Highway, Islamorada. 00403620-000000 VC —Village Center 787 sf built in 1955 7,500 sf $20.00 (rd) COMMENTS: This site is developed with a small office building that was used as a title company. The improvements were in good condition. The site is located in central Islamorada with good highway frontage. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 21 SALE TWO PROPERTY TYPE: SALES PRICE: DATE OF SALE: GRANTOR: GRANTEE: Office/Retail $275,000 February 2010 Bond Holdings, LLC Ocean Commercial, Inc. RECORDED: OR Book 2453, Page 154, Monroe County LEGAL DESCRIPTION: Lengthy metes and bounds, part of Tract A of Cross Key Waterways Section Two, Plat Book 6, Page 60, Monroe County, Florida. LOCATION PARCEL #: ZONING: IMPROVEMENTS: PARCEL SIZE: PRICE PER SQ FT OF LAND AREA: Bayside at mile marker 103 in Key Largo. The street address is 103300 Overseas Highway. 00468472-009701 SC (Suburban Commercial) 448 sf built in 1972 15,800 sf $17.41 COMMENTS: This site is developed with a small office/retail building that was most recently used by US Brick and Block. The improvements were in below average condition. The site is located in Upper Key Largo with good highway frontage. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 22 SALE THREE PROPERTY TYPE: SALES PRICE: DATE OF SALE: GRANTOR: GRANTEE: RECORDED: LEGAL DESCRIPTION LOCATION PARCEL #: ZONING: IMPROVEMENTS: PARCEL SIZE: PRICE PER SQ FT OF LAND AREA: Dilapidated residential structures $217,500 June 2012 IB SPE Management Inc OB Marathon, LLC Corkfry, LLC OR Book2577, Page 67, Monroe County Lengthy metes and bounds, partial legal is Lots 1-7, Block 2, Tavernier, PB 1, Page 105, Monroe County. Corner of Tavernier Street and Georgia Avenue. The Address is 260 Tavernier Street, Tavernier. 00478610, 00478620, 00478630, 00478640 & 00478670, all ending in-000000. MU (Mixed Use) Dilapidated commercial and residential buildings. Four parcels totaling 17,313 square feet $12.56 (rd) COMMENTS: This property was foreclosed on in 2009. The buildings totaled 1,800 square feet and there were rights to building 3 residential structures. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 23 SALE FOUR PROPERTY TYPE: Storage yard SALES PRICE: $200,000 DATE OF SALE: December 2012 GRANTOR: Patricia Aultman, Trustee GRANTEE: Glenn H. and Barbara Hewlett RECORDED: OR Book 2604, Pages 696, Monroe County LEGAL DESCRIPTION: Lots 4, 5, and 6, Block E, Hawaiian Village Subdivision, Plat Book 4, Page 70, Monroe County. LOCATION: This site is located on the corner of Overseas Highway and 120th Street Gulf, Marathon, Florida. PARCEL #: 00357680-000000 ZONING: IMPROVEMENTS: PARCEL SIZE: PRICE PER SQ FT OF LAND AREA: COMMENTS: MU (Mixed Use, Commercial) Fenced storage yard 17,500 square feet $11.43 (rd) This sale is located at the beginning of Marathon, with excellent highway frontage and visibility. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 24 SALE FIVE PROPERTY TYPE: SALES PRICE: DATE OF SALE: GRANTOR: GRANTEE: RECORDED: LEGAL DESCRIPTION LOCATION PARCEL #: ZONING: IMPROVEMENTS: PARCEL SIZE: PRICE PER SQ FT OF LAND AREA: Storage yard $125,000 July 2011 Riclyn Corp Plantation Key North, LLC OR Book 2527, Page 2010, Monroe County Lots 4, 5 and 25, Block 17, Plantation Key Colony, Plat Book 4, Page 4, Monroe County, Florida. These sites are located at mile marker 90.3 Plantation Key, with frontage along Overseas Highway and Gardenia Street 00431650, 00431660 and 00431860-000000 VC (Village Center) None 15,750 square feet $7.94 COMMENTS: These sites were purchased by a local electrician for truck and van storage. The site is slightly below street grade with Overseas Highway. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 25 PROPERTY TYPE: SALES PRICE: DATE OF SALE: GRANTOR: GRANTEE: RECORDED: LEGAL DESCRIPTION: LOCATION: PARCEL #: ZONING: IMPROVEMENTS: PARCEL SIZE: PRICE PER SQ FT OF LAND AREA COMMENTS: SALE SIX Vacant $79,000 April 2010 David Boerner Taylor Projects, LLC OR Book 2462, Page 1121, Monroe County Lot 30, Block 9, Indian Harbor, Plat Book 3, Page 178, Monroe County, Florida. This site is located on the bay side of Overseas Highway at mile marker 89.5. 00422060-000000 VC (Village Center) None 6,000 square feet $13.17 The majority of this site was vegetated with native trees and shrubs. The buyer intends to develop the site with an office building and has submitted plans to the building department. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 26 VALUATION OF THE SUBJECT SALES COMPARISON APPROACH Summary of Sales Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 Location MM 88 Plantation Key MM 82.9 Islamorada MM 103 Key Largo Tavernier Street Tavernier 120 t1 St Marathon MM 90.3 Plantation Key MM 89.5 Plantation Key Sales Price $150,000 $275,000 $217,500 $200,000 $125,000 $79,000 Sales Date 6-11 2-10 6-12 12-12 7-11 4-10 Bld Size 2,412 sf 787 sf 448 sf 1,800 sf NA NA NA Year Built 1969 1955 1972 Early 50's Fence None None Condition Poor Good < Avg. Poor NA NA NA Land Size 27,442 sf 7,500 sf 15,800 sf 17,313 sf 17,500 sf 15,750 sf 6,000 sf Zoning PS VC SC MU MU VC VC Highway Visibility Yes Yes Yes No Yes Yes Yes Price / SF $20.00 $17.41 $12.56 $11.43 $7.94 $13.17 The following chart summarizes the major differences between the subject and the comparables. Due to the lack of sufficient sales, an exact dollar amount of an adjustment could not be supported and would be unreliable. Therefore, each comparable was given either a negative, positive or equal sign in order to compare it to the subject. If the comparable was inferior to the subject it required an upward adjustment, thus, a plus sign was used. If the comparable was superior to the subject it required a downward adjustment, thus a negative sign was used. An equal sign required no adjustment. Summary of Adjustments Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 Market Conditions Location Building Rights / Condition _ _ _ _ + + + Zoning Highway Visibility = _ + Net Adjustments - - - + + + + C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 27 COMPARABLE SALES ANALYSIS The comparables range from $79,000 to $275,000 per transaction and from $7.94 to $20.00 per square foot. Commercial properties are typically purchased on a per square foot basis. Thus, all properties were compared to the subject on a price per square foot. FINANCING All sales were sold for cash or had typical market financing, therefore no adjustments were warranted. MARKET CONDITIONS Market condition refers to the appreciation or depreciation in a property over a period of time. The market has been on a downward trend the last several years in Florida as well as the US. The sales occurred from April 2010 through December 2012. All of the sales were considered relatively recent and no adjustments were made. CONDITIONS OF SALE All of the sales were arms -length transactions and required no adjustments. LOCATION The sales were located in Plantation Key, Tavernier, Key Largo, Islamorada and Marathon. Based on matched pairs analysis amongst the sale, there was no correlation between price and location. Therefore, no adjustments were made. BUILDING RIGHTS / BUILDING CONDITION The subject's improvements are in poor condition and should be razed. Sale 3's improvements were similar and therefore, required no adjustments. Sales 1 and 2's improvements were superior and in useable condition; thus these sales were adjusted down. Sales 4, 5 and 6 were vacant sites with no building rights, thus, these sales were inferior and required upward adjustments. ZONING The subject is assumed to be rezoned to commercial. All sales were zoned for commercial use and were considered similar in zoning. Therefore, no adjustments were made. HIGHWAY VISIBILITY The subject is located on Overseas Highway with excellent visibility. Sales 1, 2, 4, 5 and 6 were also located on Overseas Highway and had similar visibility, thus, these sales required no adjustments. Sale 3 has no frontage along Overseas Highway, requiring an upward adjustment. C2103 Public Works Building, Plantation Key, Florida Marr & Associates Appraisal Company, Inc. 28 CONCLUSION OF VALUE Summary of Adjustments Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 Date of Sale 6-11 2-10 6-12 12-12 7-11 4-10 Net Adjustments - - - + + + + Price/SF $20.00 $17.41 $12.56 $11.43 $7.94 $13.17 The comparables range in price from $7.94 to $20.00 per square foot. All of the sales were located in the Upper and Middle Keys and are considered reasonably good indicators of value. Sales 4, 5 and 6 were vacant sites with no buildable rights, therefore, these sales were considered to reflect the lower range. Sales 1 and 2 were improved with useable and superior improvements, therefore, these sales were considered to reflect the upper range. Sale 3 was similar in improvement condition, however, this sale is located in Tavernier and although no adjustment was made for location, Tavernier has historically been inferior to Islamorada/Plantation and had no highway visibility. Therefore, sale 3 was considered to reflect the lower range of improved sales. With equal emphasis placed on sales 1, 2 and 3, the market value of the subject property was estimated at $16.50 per square foot. The market value is summarized as follows. 27,442 square feet (land area) X $16.50 / square foot = $452,793 Rounded to $453,000 ADDENDA QUALIFICATIONS OF THE APPRAISER - MARY N. MARR LICENSE State Certified Residential Real Estate Appraiser #RD 6673 APPRAISAL EXPERIENCE 1998 - Present Marr & Associates Appraisal Company, Inc. GENERAL EDUCATION Manatee Community College 1989 - 1990 University of South Florida 1991 PROFESSIONAL EDUCATION Credit for attendance at the following Seminars and Courses: Courses by McKissock Appraisal School: The Nuts and Bolts of Green Building for Appraisers — 2012 7 Hour National USPAP Course -2012 Environmental Contamination of Income Properties — 2012 Essential Elements of Disclosure and Disclaimers — 2012 The Cost Approach — 2012 Florida Appraisal Law and Regulations -2012 Introduction to Expert Witness Testimony - 2010 Supervisor Trainee Roles & Rules — 2010 Florida Appraisal laws and Regulations — 2010 Current Issues in Appraisal — 2010 The Dirty Dozen - 2010 Appraisal the Oddball — 2008 Private Appraisal Assignments — 2008 National USPAP Update Equivalent — 2004 Florida Law and Regulations — 2004 Developing & Growing an Appraisal Practice — 2004 Limited Appraisals and the Scope of Work Decision — 2004 Appraising High -Value Residential Properties — 2004 Factory -Built Housing - 2000 Courses by the Appraisal Institute: 7 Hour National USPAP Course -2010 Supervisor Trainee Roles & Rules — 2008 Florida Law Update — 2008 7 Hour National USPAP Course -2008 Residential Design & Functional Utility — 2006 Internet Search Strategies for R.E. Appraisers — 2006 Residential Property Construction & Inspection -2006 Florida Law Update — 2006 Uniform Standards of Professional Appraisal Practice - 2006 QUALIFICATIONS OF THE APPRAISER MARY N. MARR CONTINUED Appraisal and Legal Issues in Land Use Disputes - 2000 7 Hour USPAP Florida Law For Appraisers - 2000 Appraisal: A Look Ahead - 2000 Supporting Sales Comparison Grid Adjustments for Residential Properties — 1999 Courses by Bert Rodgers Schools: Communicating the Appraisal — 2008 Courses by Gold Coast Professional Schools Inc: 30 Hour Appraiser Pre -certification Education Course (ABII) — 2001 15 Hour Appraiser Pre -certification Education Course (ABIIb) - 2001 Residential Appraisal Course AB 1 — 1999 CLIENTS SERVED Attorneys, Banks, Savings & Loans, Insurance Companies, various national corporations, estates and individuals. TYPES OF PROPERTIES All types of residential properties including; single family residences, manufactured homes, condominiums, and vacant land. GEOGRAPHICAL AREAS SERVED Tallahassee, Florida and surrounding areas and The Florida Keys. QUALIFICATIONS OF THE APPRAISER - TRENT MARR, MAI, SRPA LICENSE Licensed Real Estate Broker, State of Florida State Certified General Appraiser RZ 9000514 (Florida) Certified General Real Property Appraiser 341275 (Georgia) AFFILIATIONS Member Appraisal Institute, MAI Designation 49353 Member Society of Real Estate Appraiser, SRPA Designation Board of Directors, Appraisal Institute 1991 - 1994 Member of the Board of Realtors for Florida Keys, Marathon, Key West, Tallahassee APPRAISAL EXPERIENCE 1991-Present Marr & Associates Appraisal Company, Inc., Tallahassee, FL - President 1988-Present Marr Properties, Key Largo, FL - Vice President, Broker 1988- Matonis, DeAngelis, MacDermott, Inc. 1986-1987 - AmeriFirst Appraisal Company, Maitland, FL - Commercial Appraiser 1985-1986- Thomas H. Overstreet, Winter Park, FL - Residential Appraiser GENERAL EDUCATION Bachelor of Science in Business & Administration, Major in Real Estate, Florida State University, Tallahassee, Florida (1985) PROFESSIONAL EDUCATION All Courses and classes for both SRPA and MAI designations. Partial List of Seminars and Continuing Education for the Appraisal Institute. Fundamentals of Business Valuation 2012 Business Practices and Ethics - 2011 USPAP — 2012, 2010, 2008, 2006, 2004, 2002, 2000 Florida Law — 2012, 2010 Curriculum Overview -2010 Analyzing Distressed Properties — 2010 Supervisory Appraisal - 2010 Core Law — 2008, 2006, 2004, 2002, 2000, 1997, 1994 Valuation of Conservation Easements - 2008 Valuation of Wetlands, etc. /SFWMD — 2007, 2006, 2003, 2002, 2001 Residential Design and Functional Utility - 2006 Analyzing Distressed Real Estate - 2006 Business Practices and Ethics - 2006 "PLAM" Public Land Acquisition & Management Partnership Conference - 2006 Timberland Valuation - 2004 Standards of Professional Appraisal Practice, Part C - 2001 Sovereign Lands - 2000 Lease Abstraction and Analysis - 1999 Appraisal Office Management - 1998 QUALIFICATIONS OF APPRAISER — CONTINUED Litigation Skills - 1997 Appraising Rural Properties in SE FL - 1997 Internet & The Appraiser - 1996 Standards of Professional Practice / Part A - 1996 Professional Standards USPAP/Law - 1996 The Appraiser as Expert Witness - 1995 Standards of Professional Practice / Part B - 1995 Wetland, Mitigation & Severable Rights - 1995 Understanding Limited Appraisals - 1994 Blue Print Reading for Appraisers - 1994 Appraising Complex Residential Properties - 1993 Standards of Professional Practice / Part A - 1992 Appraisal Review - 1992 Rates, Ratios & Reasonableness - 1992 Appraising Troubled Properties - 1992 Legal Liabilities - 1992 Non -Residential Demonstration Report Writing - 1990 CLIENTS SERVED Attorneys, Bank, Savings & Loans, Mortgage Companies, Florida Department of Transportation, Department of Natural Resources, Department of Environmental Protection, Nature Conservancy, Trust for Public Lands, Monroe County Land Authority, National Park Service, Fish and Game Commission, RTC, FDIC, Federal Home Loan Bank Board, Federal Savings & Loans, Insurance Companies, various national corporations, estates and individuals. TYPES OF PROPERTIES Single Family Homes, Condominiums, Two to Four Family Dwellings, Office Buildings, Nursing Homes, Industrial Warehouses, Shopping Centers, Apartment Complexes, Subdivision Developments, Marinas, Planned Unit Developments, Environmentally Sensitive Land, Hotels, Office Condominiums, Undeveloped Land, Mobile Home Parks, RV Parks, Fishhouses, Restaurants and Mixed Use Properties. GENERAL EXPERIENCE Mr. Marr has been appraising real estate property since 1985. He has been qualified as an expert witness in both Dade and Monroe County. His extensive appraisal experience includes wetlands and environmental land for both the Department of Environmental Protection, Nature Conservancy, The Conservation Fund, Freshwater Fish and Game, Big Cypress National Park Service and Monroe County Land Authority. Mr. Marr received his SRPA designation in 1990 and his MAI designation in 1992. He served on the board of directors of the Appraisal Institute 1991-1994. The Appraisal Institute conducts a program of continuing education for designated members. Designated members who meet the minimum standards of this program are awarded periodic educational certification. Mr. Marr is currently certified under this program. APPRAISAL OF KEY WEST February 6, 2013 Ms. Rebecca Orozco, Field Engineer LAYNE 81990 Overseas Highway, Suite 204 Islamorada, Florida 33036 RE: Appraisal Report: 103 Key Heights Drive Plantation Key Islamorada, Village of Islands, Monroe County, Florida 33073 Our File No.: 104-13 Dear Ms. Orozco: co• 3229 Flagler Avenue, Suite #101 Key West, Florida 33040 Telephone: (305) 296-4568 Fax: (305)296-0493 Website: fla-keysappraisals.com Email: jim@fla-keysappraisals.com I personally performed a site visit to the subject property and prepared a summary appraisal report. The purpose of the appraisal is to render my opinion of the "As Is Vacant" Market Value of the Fee Simple Estate of the subject property as of January 16, 2013. The assumptions and the real estate referenced above are more clearly defined in the general and extraordinary assumptions and limiting conditions and in the property description section of this report. The attached summary 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. The subject property consists of three contiguous lots, which form a corner, highway front parcel of land located within Islamorada, Village of Islands, Monroe County, Florida. A survey was provided by the client and was prepared by Mr. Thomas J. Galloway, PSM, of CPH Engineers, Inc., 500 West Fulton Street, Sanford, Florida, dated December 12, 2012. The subject parcel has approximately 100.39 linear feet of frontage along the northerly side of U.S. Highway No. 1, otherwise known as Overseas Highway, 229.41 linear feet of frontage on the westerly side of Key Heights Drive, plus 119.66 linear feet on the southerly side of Orlando Drive. According to the survey, the subject site contains 27,442 square feet or 0.63 acres of upland area. There is a slight discrepancy in overall site size, according to the Monroe County Property Appraiser's Office records, the site area contains a total of 27,600 square feet of upland area. I have utilized the survey measured dimensions and site area throughout this report and in my analysis. The subject site was purchased by Monroe County about 22 years ago and subsequently has been utilized by the Public Works Department. The building improvements consist of an old, outmoded Ms. Rebecca Orozco, Field Engineer LAYNE February 6, 2013 Page No. 2 motel facility that has been used by the County for administrative offices, plus storage of equipment, parts, materials, and vehicles. The building is overall fair condition. Per the clients request, I have valued the subject "As If Vacant" as Village of Islamorada is planning on razing the structure and construction of a vacuum pumping station for the central sewage treatment system. As a result, the existing building and minor site improvements do not have any significant contributory value. The subject property had historically been utilized as the small "mom and pop" motel known as the Desert Palm Motel. The Monroe Property Appraiser's Office (MCPAO) indicates that the motel was built in 1970; however, according to a Dwelling Unit Determination letter prepared by Mr. Edward Koconis, AICP Deputy Village Manager / Planning and Development Services Director, Islamorada, dated July 7, 2008, an older Monroe County Property Card shows the existence of motel units since 1957. This small 8-unit, dry motel became outmoded and was sold to Monroe County for a reported price of $330,000 on March 28, 1990. The Dwelling Unit Determination Letter confirms that Islamorada recognizes eight legally established transient dwelling (motel) units. The subject property (sender site) is located within the Public and Semi -Public Services (PS) zoning district, thus, the vested rights or entitlements could be transferred to a another site for development purposes. Per Village Ordinance 07-32, regarding Transfer of Development Rights, appropriate receiver sites would have to be located in the Village Center (VC), Tourist Commercial (TC) or Highway Commercial (HQ Zoning District. Depending the number of units transferred, the project would require a Site Plan and Minor or Major Conditional Use Approval. A copy of the letter is included in the Addenda section of this report. As a result of the subject's unique location within the PS zoning and future land use district and the fact that it has transferable development rights or entitlements, I have estimated an "as if vacant" land value with rogo or BPAS entitlements for eight transient units, plus I have estimated an "as if vacant" land value without any vested development rights or entitlements, based on comparable sale of parcels purchased for public or quasi -public use. A Phase I Environmental Site Assessment Report was made available by the client. The report was prepared Mr. Robert P. Crowell, PG of by Arcadis U.S., Inc., 2081 Vista Parkway, West Palm Beach, Florida, dated December 27, 2012. The report noted heavy oil staining in the absorbent soil material surrounding the waste oil tank, a potential for adverse substances in the septic tank and drain field due to its historical industrial use, plus the presence of asbestos -containing materials used in the construction of the old motel structure. Mr. Crowell recommends removal and disposal of stained soils, sampling of shallow groundwater for volatile organic compounds, petroleum compounds in the vicinity of the septic tank, drain field, and near the oil disposal tank. The potential cost of soil removal, testing, and any potential remediation has not been considered herein as further investigation by environmental professionals is warranted. If these environmental concerns are significant and costly to rectify, then the value of the subject property would be negatively impacted. Market Value is defined as the most probable price in cash (or its equivalency) for which the appraised property will sell in a competitive market under all conditions requisite to a fair sale. Ms. Rebecca Orozco, Field Engineer LAYNE February 6, 2013 Page No. 3 Market value assumes a normal or reasonable time for exposure on the open market. No personal property has been included in the valuations 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 of the lease period. The subject parcel is not encumbered by any long-term leases; thus, a Leased Fee Interest valuation was not applicable. The Fee Simple Estate was applicable for this report. The reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. Based on an a recent site visit, research, and market analysis, it is my opinion that the "As If Vacant " Market Value of the Fee Simple Estate of the subj ect property, known as 103 Key Heights Drive, Plantation Key, Islamorada, Village of Islands, Monroe County, Florida 33073, based on its vested transferable development rights or entitlements for 8 transient units, subject to definitions, assumptions and limiting conditions, as of January 16, 2013, is: FOUR HUNDRED FORTY THOUSAND DOLLARS ($ 440,000 ) In addition, based on an a recent site visit, research, and market analysis, it is my opinion that the "As If Vacant" Market Value of the Fee Simple Estate of the subject property, known as 103 Key Heights Drive, Plantation Key, Islamorada, Village of Islands, Monroe County, Florida 33073, not considering its vested transferable development rights or entitlements for 8 transient units, subject to definitions, assumptions and limiting conditions, as of January 16, 2013, is: TWO HUNDRED TWENTY THOUSAND DOLLARS ($ 220,000 ) This summary appraisal report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a summary appraisal report. As such, it may only present summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's workfile. The information contained in this report is specific to the needs of the intended user and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. This confidential report is prepared for the sole use of and benefits of the Ms. Rebecca Orozco, Field Engineer, LAYNE, plus Islamorada, Village of Islands, and Monroe County, Florida, and is based, in part, upon documents, writings, and information owned and possessed by the clients. This report is provided for informational purposes only to third parties authorized to receive it. The appraiser- Ms. Rebecca Orozco, Field Engineer LAYNE February 6, 2013 Page No. 4 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 client concerning these properties. Appraisal Company of Key West assumes no responsibility if this report is used in any other manner. 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 in order for the value opinion set forth to be considered valid. Respectfully submitted, James E. Wilson, MRICS, President State -certified general real estate appraiser RZ 2164 Report Attached: C:\Comm-13\104-13\Comm-104-13.wpd APPRAISAL REPORT A Summary Appraisal Report Property Located at: 103 KEY HEIGHTS DRIVE PLANTATION KEY ISLAMORADA, VILLAGE OF ISLANDS, MONROE COUNTY, FLORIDA 33073 Property Type: "AS IF VACANT" - COMMERCIAL VACANT LAND Prepared For: MS. REBECCA OROZCO, FIELD ENGINEER LAYNE 81990 OVERSEAS HIGHWAY, SUITE 204 ISLAMORADA, FLORIDA 33036 Valuation Date: JANUARY 16, 2013 Prepared By: James E. Wilson, MRICS, President State -certified general real estate appraiser RZ 2164 APPRAISAL COMPANY OF KEY WEST 3229 Flagler Avenue, Suite 101 Key West, Florida 33040 Our File No.: 104-13 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL SUMMARY OF FACTS AND CONCLUSIONS Subject Property Address: 103 Key Heights Drive Plantation Key Islamorada, Village of Islands, Monroe County, Florida 33073 Property Type: Commercial "As If Vacant" Land Site Description: Irregular Shape, Corner Lot, 27,442 Square Feet or 0.63 Acres Flood Hazard Zone: Map No.: 120424C 1006K, 2/18/05: Zone X, Outside of Flood Zone Zoning: PS: Public/Semi-Public Services, Islamoroda, Village of Islands Highest and Best Use: "As Vacant" Public/Semi-Public Uses, which is concurrent with the adjacent uses. transfer of transient ROGO or BPAS Entitlements off -site. Buyer intends to construct a vacuum pumping station for the central sewage system that will service Plantation Key and Islamorada, Village of Islands. Date of Site Visit: January 16, 2013 "As Is" Valuation Date: January 16, 2013 Date of Report: February 6, 2013 Marketing Time: 12 to 18 Months or less based on a list price within 5 percent of appraised value. Exposure Time: 12 to 18 Months or less based on a list price within 5 percent of appraised value. Value Indications: Based on its vested transferable development rights or entitlements for 8 transient units ................................... $440,000 Based on hypothetical condition that subject does not include vested transferable development rights or entitlements for 8 transient units ................................... $220,000 Appraisal Company of Key West Page I Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Special Assumptions: A Phase I Environmental Site Assessment Report was made available by the client. The report was prepared Mr. Robert P. Crowell, PG of by Arcadis U.S., Inc., 2081 Vista Parkway, West Palm Beach, Florida, dated December 27, 2012. The report noted heavy oil staining in the absorbent soil material surrounding the waste oil tank, a potential for adverse substances in the septic tank and drain field due to its historical industrial use, plus the presence os asbestos -containing materials used in the construction of the old motel structure. Mr. Crowell recommends removal and disposal of stained soils, sampling of shallow groundwater for volatile organic compounds, petroleum compounds in the vicinity of the septic tank, drain field, and near the oil disposal tank. The potential cost of soil removal, testing, and any potential remediation has not been considered herein as further investigation by environmental professionals is warranted. If these environmental concerns are significant and costly to rectify, then the value of the subject property would be negatively impacted. The subject site was purchased by Monroe County about 22 years ago and subsequently has been utilized by the Public Works Department. The building improvements consist of an old, outmoded motel facility that has been used by the County for administrative offices, plus storage of equipment, parts, materials, and vehicles. The building is overall fair condition. Per the clients request, I have value the subj ect "As If Vacant" as the Village of Islamorada is planning on razing the structure and construction of a vacuum pumping station for the central sewage treatment system. As a result, the existing building and minor site improvements do not have any significant contributory value. Appraisal Company of Key West Page 2 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL SUMMARY APPRAISAL REPORT This is a summary appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a summary appraisal report. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documenta- tion concerning the data, reasoning, and analyses is retained in the appraiser's file. The information con- tained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. The reader is referred to the Scope of Work section of this report. INTENDED USER/ CLIENT: Ms. Rebecca Orozco, Field Engineer LAYNE 81990 Overseas Highway, Suite 204 Islamorada, Florida 33036 APPRAISER: James E. Wilson, MRICS, President State -certified general real estate appraiser RZ 2164 SUBJECT: 103 Key Heights Drive Plantation Key Islamorada, Village of Islands, Monroe County, Florida 33073 Appraisal Company of Key West Page 3 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL PURPOSE AND INTENDED USE OF THE APPRAISAL The purpose of this appraisal is to estimate the "As if Vacant" Market Value of the Fee Simple Estate of the subject site, known as 103 Key Heights Drive, Plantation Key, Islamorada, Village of Islands, Monroe County, Florida 33073 as of January 16, 2013. The intended use of this appraisal is to provide general information to the client for potential purchase of the subject property. The intended users of the appraisal report is Islamorada, Village of Islands and Monroe County, State of Florida. MARKET VALUE DEFINITION Market Value is defined by the regulatory agencies of federal financial institutions, as follows: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a) buyer and seller are typically motivated; b) both parties are well informed or well advised and each acting in what he considers his own best interest; c) a reasonable time is allowed for exposure in the open market; d) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." "As Is" Market Value is defined as the most probable price in cash (or its equivalency) for which the appraised property would have sold in a competitive market under all conditions requisite to a fair sale at the time of the "As Is" effective date. Fee Simple Estate Definition: According to The Dictionary of Real Estate Appraisal, Fifth Edition, "Fee Simple Estate is absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." Leased Fee Definition: 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. Appraisal Company of Key West Page 4 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL PROPERTY RIGHTS APPRAISED This appraisal 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 elements which have been included in this appraisal are the land and any existing improvements. 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. The subject parcel is not encumbered by any long-term leases; thus, a Leased Fee Interest valuation was not applicable. The Fee Simple Estate was applicable for this report. The reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. No personal property has been included in this valuation. LEGAL DESCRIPTION The reader is referred to a copy of the survey prepared by Mr. Thomas J. Galloway, PSM, of CPH Engineers, Inc., 500 West Fulton Street, Sanford, Florida, dated December 12, 2012. Furthermore, a copy of the most recent transfer of the subject property in 1990, via a Warranty Deed recorded in Public Records, Official Record Book 1126, pages 1528-1529, plus the Statutory Deed, which details the transfer of paved roadways and rights -of -way from Monroe County to the Islamorada, Village of Islands, recorded in Public Records, Official Record Book 1579, page 2300 are included in the addenda section of this report. The legal description for the subject property is as follows. Lots 1, 2 and 24, Block 11, Key Heights, Section 2, according to the map orplat thereof as recorded in Plat Book 3, Page 159, of the Public Records of Monroe County, Florida, less portion in O.R. Book 1579, Page 2300. Containing 27, 442 square feet, 0.63 acre more or less. (Per Survey) SUBJECT'S MARKET AREA (NEIGHBORHOOD) ANALYSIS The subject parcel is located in upper part of Plantation Key, a suburban area which is part of the incorporated Village of Islamorada. The subject property is located at approximately mile marker 89. The property is located northerly of US Highway No. 1, a/k/a Overseas Highway, which is the main and only highway connecting the Florida Keys to the mainland. The property is a corner parcel and has frontage along the northerly side of U.S. Highway No. 1, otherwise known as Overseas Highway, the westerly side of Key Heights Drive, plus the southerly side of Orlando Drive. The subject property is situated about 84 miles northeasterly from Key West, stretching across 38 bridges. It is located in a residential/commercial mixed -use area providing all of the services necessary within a suburban area. Appraisal Company of Key West Page 5 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Islamorada, just 10 miles southwesterly from Key Largo, offers much in terms of commerce, residential housing and service, as well as industrial areas. This is an area of single family and mixed zoning and uses which services the demands and requirements of the Upper Keys market. The Florida Keys are a chain of islands extending in a southwesterly direction from the Southern tip of Florida, which are connected by a series of bridges. U.S. Highway No. 1, Overseas Highway, provides access to these various islands from the mainland. The Florida Keys extend an estimated 125 miles in length. Islamorada has been well-known for its water sports and relaxed atmosphere, being given some well - deserved titles including: "The Smiling Islands of America's Caribbean," "The Purple Isles of the Florida Keys," and probably best known as the "Sportfishing Capital of the World." Islamorada, Village of Islands was incorporated on December 31, 1997 with the boundaries extending from Mile Marker 72.5 to 90.5, which includes: Craig Key, Lower Matecumbe, Indian Key, Tea Table Key, Upper Matecumbe, Windley Key, and Plantation Key. Most of the neighboring structures within the subject's general area are single family residences, motels, retail or marina uses. Other adjacent uses in the subject's immediate area, off the highway includes multi -family and residential uses. The commercial uses further northeasterly along U. S. Highway No. 1 include hotels, motels, restaurants, professional offices, retail shops and strip shopping centers, tourist - related businesses, and service establishments. Most of the structures are CBS/masonry buildings and smaller single family CBS or frame homes, with evidence of mobile homes in some of the older neighborhood subdivisions or where zoning historically permitted mobile homes. Most of the mobile home subdivisions in the area are quite attractive, including the trailer/RV parks within the neighborhood. In other adjacent and nearby subdivisions, the newer homes are frame or CBS construction built-up on "stilts," with elevated floors built on concrete reinforced columns, in order to comply with flood zone regulations. Most of the Florida Keys are located within a Flood Zone Area, as designated by FEMA. The area's principal land uses are residential and commercial with very limited industrial uses. There has been a definite decline in the residential housing market, anywhere from 30% to 60%, depending on property type, price range and location. However, the residential market is finally stabilizing with rebounds noted in some price ranges. The commercial market lagged the residential market about 12 to 180 months in the slump and it appears to have begun to stabilize at the end of 2011/beginning of 2012. Tourism, the economic base of Key West and the Florida Keys, experienced steady growth through the early and mid 2000's. Declines were noted in the tourism segment from 2008 to 2010 due to the national recession, the residential housing slump, the credit crisis and high fuel prices. A robust rebound in lodging statistics was observed throughout the Keys in 2011 and 2012. The have been gains in retail, plus food and beverage, but at a lower pace. The office market is still somewhat soft, although inventory is declining. In summary, the subject property is located in a suburban area, just 10 miles southwesterly from the Central Business District within Key Largo, the main key in the Upper Keys where there is a concentration of services, employment and shopping. Islamorada, coupled with Upper Matecumbe Key, has its own hub and concentration of commercial retail, services, and office uses. Residential uses Appraisal Company of Key West Page 6 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL are located off the highway; these neighborhoods as well as neighboring communities support the commercial businesses in the area. Supply and Demand The supply of commercial space is limited and new commercial construction has been restricted since 1996 due to a commercial building moratorium that had been in effect until the implemented commercial rate of growth ordinance (NROGO). Therefore, the current and ongoing regulations are expected to place upward pressure on price levels of existing units. Even to a greater extent because of the difficulty and high cost in obtaining building permits for new construction, both residential and commercial. In general economic conditions have been very healthy in the Florida Keys over the past two decades with strong housing values and continued demand for the tropical climate, accessibility and water sports which the County has to offer. However, due to the downturn in national recession and the real estate slump, the residential real estate market experienced significant declines from 30% to 60% from the height of the residential market 2005/2006 with increased marketing times. The commercial market has appears to have peaked in 2007/2008 with substantial descent experienced in values and increased inventory, especially for distressed sales. It appears that the real estate market hit bottom at the end of 2011. Some sub markets of the residential market are rebounding, while growth in the lodging sector of the commercial market has been extremely strong in 2011 and 2012. Based on the general economic environment, it is our opinion that real estate values for commercial and residential properties will be at least stable with future moderate increases. Supply and Demand The supply of commercial space is limited and new commercial construction has been restricted since 1996 due to a commercial building moratorium that had been in effect until the implemented commercial rate of growth ordinance (NROGO). Therefore, as the current economic downturn and resultant real estate recession improves, the current and ongoing regulations are expected to place upward pressure on price levels of existing units. Even to a greater extent because of the difficulty and high cost in obtaining building permits for new construction, both residential and commercial. General Economic Conditions: With respect to the commercial retail sector, the market has experienced an increase in the availability of vacant commercial space in the commercial real estate area. However, due to the slow down in economic conditions commercial rental rates have stabilized with landlords giving rent concessions to entice new tenants. There appears to be a decline in rental rates with vacancy rates for commercial properties ranging from 15% to 30% for large multi —unit properties. Some vacancies are noted within neighborhood complexes and within the Central Business Districts throughout the Florida Keys due to the escalating rents over the past decade and the downturn in local tourism from 2008 to 2010, spurred by the national recession. However, the tourism market has significantly rebounded in 201 land 2012. In fact, many lodging facilities are attaining average daily rates (ADRs) and occupancy rates at all time highs or near the peak of the 2007 statistics. A turn -around was actually noted in the beginning of 2010, but the mid -year BP Oil Spill in the Gulf of Mexico eliminated the positive momentum. Even though oil never reached Keys waters and land, the negative press and media attention was extremely detrimental to the tourism and real estate market. Appraisal Company of Key West Page 7 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL According to interviews with several Realtors, it appears that the residential real estate market may be stabilizing with even some slight signs of appreciation. In addition, it appears that the number of days properties are on the market in the residential sector is decreasing due to shrinking inventory, which is a good sign. Most of the busiest commercial real estate agents and brokers indicate that the commercial market has stabilized with increased leasing and sales activity in 2012. Demographic trends taking place in the Islamorada and Upper Keys market area within 15 mile radius of the subject property are as follows, Appraisal Company of Key West Page 8 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL 9Demographic and Income ST'DBc+t+i. 103 Key Heights Dr, Islamorada, FL, 33070 Ring: 15 miles radius ProfileAppraisal Version Prepared by James Wilson Summary 2{}00 2010 201E Population 18,959 18,299 17,602 Households 8,518 7,977 7,646 Fam II les 5,197 4,747 4,487 Average Household Size 2.20 2.27 2.27 Owner Occupied Housing Units 5,994 5,554 5,347 Renter Occupied Housing Units 2,524 2,423 2,299 Median Age 44.3 48.1 49.7 Trends: 2010- 2015 Annual Rate Area state National Population -0.77% 0.84 % 0.76% Households -0.84% 0,83% 0,78% Families -1.12-k 0.64 % 0.54% Owner HHs -0.76 % U-89% 0.820/6 Median Household Income 2.22°7 2.3410 2.36% 2000 2010 2015 Households by Income Number Percent Number Percent Number Percent <$15,000 1,172 13.7% 824 10.3% 659 8.60!0 $15,000 - $24,999 1,108 12.9 % 748 9.4% 582 7.6% $25,000 - $34,999 1,240 14.5% 1,027 12.9% 779 10.2% $35,000 - $49,999 1,419 16.6n/a 1,210 15.2% 952 12.5% $50,000 - $74,999 1,606 18.8% 1,690 21.2% 2,023 26.5116 $75,000-$99,999 891 10.4% 1,000 12.5% 924 12.1% $100,000 - $149,999 646 7.5% 975 12.2% 1,163 15.2% $150,000-$199,999 153 1.8% 136 1.7% 163 2.1% $200,000+ 330 3.9% 367 4.6% 401 5.2% Median Household Income $41,598 $51,9133 $5B4O15 Average Household Income $59,709 $70,654 $79,232 Per Capita Income $26,754 $30,985 $34,202 2000 2010 2015 Population by Age Number Percent Number Percent Number Percent 0 - 4 816 4.3% 737 4.0% 673 3.9% 5-9 949 5.0% 839 4.6% 775 4.4% 10 - 14 1,037 5.5% 896 4.8 % 865 4.9% 15 - 19 980 5.2% 872 4.8% 815 4.6% 20 - 24 648 3.4nk 673 3.7% 625 3.6% 25 - 34 1,859 9.6% 1,607 818% 1,601 9.1% 35-44 3,463 18.3% 2,442 13.30/ 2,150 12.2% 45 - 54 3,574 18.9°/ 3,6B4 20.1% 3,080 17.5% 55 - 64 2,538 13.4% 3,337 18.2% 3,436 19.5% 65 - 74 1,796 9.5% 1,908 10.4% 2,292 13.0% 75 - 84 1,022 5.4% 951 5.2°% 936 5.3% B5+ 277 1.5%. 363 2.0% 354 2.0% Data Note: Income is expressed In current dollars Source: U.S. Bureau of the Census, 200n Census of Population and Housing. Esrl forecasts. for 2010 and 2015. January 30, 2013 Appraisal Company of Key West Page 9 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL D- •. .• • •Profile+.. • STAB+��i. 103 Key Heights Dr, Islamorada, FL, 33070 Prepared by James Wilson Ring: 15 miles radius Trends 2010-2015 2 v 1.s u v a 1 c v 4.5 6 0 c Area ■ State f USA -1 Populatlofl Households Famllies Owner HHs Median HIM Income Population by Age zo 113 16 14 12 10 a 9 6 4 -- f� 2010 2015 z 0 0-4 5-9 10114 15-19 20-24 25-34 35-44 45-54 55-64 55-74 75-64 05+ 2010 Household Income $75K - $99K 12.5% s100K - $149K 2.2% SSOK - S74K 21.2% SIS6 -$199K S209K+ 4.69d $35K - $49K 15.2 10.3% $25K - $34K 12.9% $24K 9.4% Source! U.S. Bureau of the census, 2000 Census of Population and Housing. Esd forecasts for 2010 and 2015. January 30, 2013 Appraisal Company of Key West Page 10 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Current Vacant Land Active Listings. The following real estate listings of similar use properties offered for sale were obtained from the local Multiple Listing Service: Active Listings for Vacant Land Use Properties MILS Asking Upland Price/SF Listing:# "rr'" ,.=Nam Status Comments Zoning DOM Price Area SF Land 115010 5645 MacDonal Avenue, Stock Island Expired Includes 3 ROGOS+700 SF NROGO MU 571 $150,000 6,250 $24.00 115011 5680 Laurel Avenue, Stock Island Expired Includes 5 ROGOS MU 366 $150,000 6,250 $24.00 555330 Blk 11, Lot 16 Key Heights, Overseas Hwy., Plantation Key Active Commercial Corner Lot, Vegatation HC 585 $99,000 12,600 $7.86 549463 86025 Overseas Highway, Plantation Key Active Commercial Corner Lot, Vegatation NC 1,121 $199,000 26,269 $7.58 556124 Blk2, Lot 14 Plantation Bch, Overseas Hwy. Active Commercial Interior Lot, Vegatation HC 471 $84,500 6,000 $14.08 556925 100700 Overseas Hi ghway, Key Lazo Active Commercial Corner, Ve atation, Large ROW SC 385 $179,000 13,000 $13.77 Average 583 $143,583 11,728 $15.21 Median 521 $150,000 9,425 $13.93 Minimum 366 $84,500 6,000 $7.58 Maximum 1,121 $199,000 26,269 $24.00 Although, none of the active listings is truly comparable to the subject property in all aspects, especially due to the subject's entitlements for 8 transient ROGOS or BPAS units. The properties vary as to site size and entitlements. The lack of availability of financing for vacant land has had the greatest impact on the sale of these property types, according to conversations with local Realtors. The first two expired listings above have nontransient ROGO entitlements. Based on a land sale which included ROGOs, adj acent to the first two listings to Monroe County for development of a new Fire Department, a premium of $15,000 per nontransient ROGO or $7.20 per square foot for the first listing and $12.00 for the second listing. There does not appear to be any significant premium for the NROGO (commercial floor area) for the first listing. The listings above indicate days on market from about 366 days to 1,121 days or about one to about three years with the mid point about one and one-half years or 18 months. Therefore, the subject would have to be priced aggressively within the estimated marketing time below to sell. My opinion of the subject's value at about $16 per square foot of site area (with entitlements), and $8 per square foot (without entitlements) which appears reasonable. MARKETING TIME The marketing time for the subject property is estimated at 12 to 18 months, based on an asking price within 5% of appraised value. It should be noted that the marketing time could be adversely affected by competition from similar use properties. EXPOSURE TIME Exposure time is the amount of time necessary to effect a sale of the subject property on the valuation date. Average marketing times of 12 to 18 months was noted for similar comparable sales. Therefore, we project a 12 to 18 month exposure time for the subject, based on a listing price within 5.0% of appraised value. Appraisal Company of Key West Page 11 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL OWNERSHIP, SALES HISTORY & CURRENT CONTRACTS The subject property had historically been utilized as the small "mom and pop" motel known as the Desert Palm Motel. The Monroe Property Appraiser's Office (MCPAO) indicates that the motel was built in 1970; however, according to a Dwelling Unit Determination letter prepared by Mr. Edward Koconis, AICP Deputy Village Manager / Planning and Development Services Director, Islamorada, dated July 7, 2008, indicates that an older Monroe County Property Card shows the existence of motel units since 1957. This small 8-unit, dry motel became outmoded and was sold from Islamorada Inn, Inc., Yogendra C. Patel, President (Seller/Grantor) to Monroe County (Buyer/Grantee) for a reported price of $330,000 or $41,250 per unit or $12 per square foot of site area on March 28, 1990. There have been no sales or transfers of the subject property since 1990 and it has not been listed for sale. The sale was recorded in the Monroe County Public Records, Official Record Book 1126, Pages 1528 and 1529. A prior sale took place in June 1987 for $200,000. According to Ms. Rebecca Orozco, Field Engineer, LAYNE, the subject property is not under contract for sale and purchase; however, the Islamorada and Monroe County are in negotiations. The subject property is not listed for sale. The subject property has been utilized by the Public Works Division of Monroe County since 1990. Public Works also occupies adjacent properties to the east, across Key Heights Drive. ZONING According to the Islamorada, Village of Islands, Zoning and Future Land Use Maps, the appraised pr- operty is zoned and has a future land use designation of PS, Public/Semi-Public Services. Mr. Shane Laakso, Planner, Islamorada Planning and Development Services Department, verified the subject's zoning district. Sec. 30-701. - Public and semi-public services (PS) zoning district. (a) Purpose and intent. (1)The purpose of the public and semi-public services (PS) zoning district is to accommodate existing public and semi-public services, facilities and uses, whether owned or managed by a by a federal, state, county or municipal agency, by an individual or corporation or by a public/private partnership, while ensuring that potential impacts on adjacent properties are mitigated. (2)This zoning district is established within the Residential High (RH), Mixed Use (MU), Public and Semi -Public Services (PS) and Industrial (1) FLUM categories. (b)Permitted uses. (1) Caretaker's cottage; (2) Accessory uses and structures; (3) Hurricane or emergency shelter; (4) Collocation on existing wireless facility; (5) Arts and cultural facility; (6) Civil defense facility; (7) Domestic violence center; (8) Detention facility; (9) Emergency medical and ambulance services; (10) Fire station; (11) Government offices; Appraisal Company of Key West Page 12 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL (12) Houses of worship and religious facilities; (13) Infrastructure and municipal utility facilities; (14) Police station; and (15) Residential -institutional uses. © Uses permitted as a minor conditional use. (1) Community pier or public dock; (2) Docking facility; (3) Health related institutions including care facility and supportive health care dwelling units; (4) Hospital complex; (5) Recycling center; (6) Rehabilitation center; (7) Sports arena; (8) Attached wireless facility; (9) Replacement of existing wireless facility; and (10) Stealth wireless facility. (d) Uses permitted as a major conditional use. (1) Helipad; (2) Schools; (3) New wireless facility; and (4) Outdoor storage and display areas pursuant to article VI, division 8 of this chapter. (e) Site development standards. (1) Minimum lot area: Not applicable. (2) Maximum building height: 35 feet. (3) Maximum developable lot coverage: Not applicable. (4) Setbacks: a. Front yard: Minimum 25 feet. b. Side yard: A minimum of five feet on each side for a minimum combined total of 15 feet for both sides. c. Rear yard: Minimum 20 feet. d. Rear yard on shoreline: See article VII, division 2 of this chapter. (5) Floor area: Maximum floor area for principal structures: 0.25 FAR or 0.35 FAR with TDRs. (6) Density: One dwelling unit per lot, or up to 12 dwelling units per acre for residential -institutional uses. (7) Open space: See article VII, division 4 of this chapter. (8) Landscape requirements: See division 6 of this article. (9) Parking requirements: See division 7 of this article. (Ord. No. 02-22, § 1(5.1.21), 1-31-2002; Ord. No. 02-29, § 7, 11-21-2002) The appraiser has referenced the criteria above. For further details, the reader is referred to the Islamorada Planning and Development Services Department and the Land Development Regulations ans Code of Ordinances for Islamorada, Village of Islands. No change in zoning is anticipated in the foreseeable future. Appraisal Company of Key West Page 13 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL REAL ESTATE TAX AND ASSESSMENTS Monroe County Public Works 103 Key Heights Drive, Islamorada, Florida Parcel No. 00417340-000000 - Alternate Key 1513512 Building NE Sc. Total Tag Tax Year Land Improvements Imprv. Assessment Burden N illage 2012 $89,700 $334,439 $1,680 $425,819 $0.00 10.2618 Since the subject property is owned by Monroe County, a governmental entity, it has been assessed, but no taxes have been levied. The total 2012 assessment is $15.52 per square foot of site area or $53,227 per transient unit (8), while the land assessment is $3.27 per square foot of site area or $11,213 per unit. The land appears to be under assessed and the building is over assessed based on my opinion of value. DESCRIPTION OF THE SUBJECT PROPERTY Site Anal The subject property consists of three contiguous lots, which form a corner, highway front parcel of land located within Islamorada, Village of Islands, Monroe County, Florida. A survey was provided by the client and was prepared by Mr. Thomas J. Galloway, PSM, of CPH Engineers, Inc., 500 West Fulton Street, Sanford, Florida, dated December 12, 2012. The subject parcel has approximately 100.39 linear feet of frontage along the northerly side of U.S. Highway No. 1, otherwise known as Overseas Highway, 229.41 linear feet of frontage on the westerly side of Key Heights Drive, plus 119.66 linear feet on the southerly side of Orlando Drive. According to the survey, subject site contains 27,442 square feet or 0.63 acres of upland area. There is a slight discrepancy in overall site size, according to the Monroe County Property Appraiser's Office records, the site area contains a total of 27,600 square feet of upland area. I have utilized the survey measured dimensions and site area throughout this report and in my analysis. The subj ect site is mostly scarified with trees scatterd mostly on the perimeter of the site and bordering the existing structure. Improved Anal The subject property was purchased by Monroe County about 22 years ago and subsequently has been utilized by the Public Works Department. The building improvements consist of an old, outmoded motel facility that has been used by the County for administrative offices, plus storage of equipment, parts, materials, and vehicles. The building is overall fair condition. Per the clients request, I have valued the subject "As If Vacant" as Islamorada is planning on razing the structure and construction of a vacuum pumping station for the central sewage treatment system. As a result, the existing building and minor site improvements do not have any significant contributory value. 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." The subject property is located within Block Number 9708. Appraisal Company of Key West Page 14 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL The subject site is located in Zone X, Outside of the Flood Zone as designated by the Federal Emer- gency Management Agency, Flood Insurance Rate Maps of Monroe County, Florida, Monroe County, Map Number 120424C 1006K dated February 18, 2005. Monroe County participates in aNational Flood Insurance Program and is covered by a regular program. Topography. Although a soil engineering report was not made available to me, it appears that the site and most of the properties in the immediate neighborhood show no signs of any subsurface instability. The subject site is generally level and slightly above the street grade. Easements/Encroachments: A copy of An Ownership and Encumbrance Report for the subject property, dated December 12, 2012 was made available by the client. American Government Services Corporation prepared the report and copy of the findings is within the addenda section of this report. There are a few easements for overhead electric wire utilities, which is common in the market area. The survey indicates some minor fencing encroachments, while there does not appear to be any building encroachments. The buyer does intend to raze or demolish the building and site improvements. Access: The subject property has exceptional accessability and favorable exposure. The property is a corner parcel and has access from U.S. Highway No. 1, otherwise known as Overseas Highway, the main highway into and out of the Florida Keys, Key Heights Drive and Orlando Drive, which are bordered by commercial and residential uses. Utilities: Municipal services available at the street. The subject parcel is serviced by public water, Florida Keys Aqueduct Authority (FKAA) and electric utilities, Florida Keys Electric Cooperative, sewage disposal will be available upon completion of the proposed collection system. The subject building is presently serviced by a septic tank and drain field. Environmental Concerns: A Phase I Environmental Site Assessment Report was made available by the client. The report was prepared Mr. Robert P. Crowell, PG of by Arcadis U.S., Inc., 2081 Vista Parkway, West Palm Beach, Florida, dated December 27, 2012. The report noted heavy oil staining in the absorbent soil material surrounding the waste oil tank, a potential for adverse substances in the septic tank and drain field due to its historical industrial use, plus the presence os asbestos -containing materials used in the construction of the old motel structure. Mr. Crowell recommends removal and disposal of stained soils, sampling of shallow groundwater for volatile organic compounds, petroleum compounds in the vicinity of the septic tank, drain field, and near the oil disposal tank. The potential cost of soil removal, testing, and any potential remediation has not been considered herein as further investigation by environmental professionals is warranted. If these environmental concerns are significant and costly to rectify, then the value of the subject property would be negatively impacted. HIGHEST AND BEST USE In order to estimate the Highest and Best Use of the subject property, the appraisers have considered those uses that are physically possible, legally permissible, maximally productive, and financially feasible. Appraisal Company of Key West Page 15 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL "As If Vacant": The subj ect property consists of a corner, highway front parcel of land, located in the incorporated Islamorada, Village of Islands, Monroe County, Florida. The subject parcel has approximately 100.39 linear feet of frontage along the northerly side of U.S. Highway No. 1, otherwise known as Overseas Highway, 229.41 linear feet of frontage on the westerly side of Key Heights Drive, plus 119.66 linear feet on the southerly side of Orlando Drive. According to the survey, subject site contains 27,442 square feet or 0.63 acres of upland area. It is located within the PS, Public Semi -Public zoning and future land use districts. The uses within this zoning district are almost exclusively used by government or quasi government entities. Thus, its use is quite restrictive. Hence, the Highest and Best Use of the subject property, as if vacant, would be for Public Semi -Public use with maximum utilization of the land as allowed by current zoning regulations. "As Improved": Per the clients request, I have valued the subject "As If Vacant" as the potential buyer, Islamorada, Village of Islands is planning on razing the structure and constructing a new vacuum pumping station for the proposed central sewage treatment system. In addition, the existing building and minor site improvements do not have any significant contributory value as they are outmoded and in fair condition. APPRAISAL DEVELOPMENT AND REPORTING PROCESS SCOPE OF WORK 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 and the property owner. If possible, more than one source is utilized to confirm the information. Improvements, if applicable, are inspected and measured by the appraiser. 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 appraiser describes the building improvements in detail, if applicable; these descriptions are based on a physical inspection and/or plans and specifications. The appraiser is not a contractor nor structural engineer; therefore, structure soundness or damage cannot be warranted. The appraiser will note any apparent or potential problems such as deferred maintenance, water damage or spalding. 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 inspected. 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. Appraisal Company of Key West Page 16 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Exterior site visits of the comparable improved and land sales are made. Interior walk-through visits to the improved comparable sales 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 First America Real Estate Solution and Realist.com, (FARES), and Rapattoni, computerized MLS (Multiple Listing System). All sources use data from the Monroe County Property Appraiser's Office, as well as, from the public records. Additional data sources include: newspaper clippings and the National Multiple Listing Service. Real estate agents in the market area are interviewed for the most current information on sales and listings. All of the information is analyzed in preparing the report and is utilized in supporting the indicated value. 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, as well as, the Certificate of Value. Finally, the three indicated values developed by the approaches, are reconciled to produce the final esti- mate 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. Per the clients request, I have value the subject "As If Vacant" due to the proposed use and the fair condition of the existing building and site improvements; thus, The Cost Approach was not applicable; in the case at hand. 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. In the case at hand, the subject parcel has historically been occupied by the Monroe County Public Works Division. The subject was formerly an outmoded small 8-unit motel. Islamorada is planning on constructing a pumping station for the proposed central sewage system. Most vacant lots, especially public use properties are not typically leased to tenants. As a result, the Income Approach was not considered applicable. THE SALES COMPARISON APPROACH This approach is also based on 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 Appraisal Company of Key West Page 17 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL comparable properties can indicate an estimate of value. This approach was considered to be the best indicator of value in valuing the subj ect property. Hence, the Sales Comparison Approach was weighted completely in the final reconciliation for Subject Property. Appraisal Company of Key West Page 18 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL SALES COMPARISON APPROACH This approach to value is based upon the principal of substitution; that is, when a property is placed in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no costly delays in making the substitution. These sales are analyzed and compared to the subject property. The Sales Comparison Approach bases its value indication on recent sales that are pertinent to the value of the subject property. From these comparable sales, the appraiser must extract meaningful "common denominators" to be applied to the subject building. Typically, the sale price per square foot of the land area, and the overall sale price are the most common denominators used in estimating the value of the properties similar to the subject. Market Data Analysis for Subject Property: A thorough search was conducted for commercial vacant land sales in the market area. Extensive research has indicated very limited commercial land sales. The subject is located within the PS, Public Semi -Public zoning and future land use districts. Thus, the use is narrowly defined and not marketable to the private sector without a possible change in zoning. Since sales or transfers of vacant parcels within the PS zoning district are rare to nonexistent, I have analyzed sales that are within commercial zoning districts, but were purchased for public or quasi public use. Most weight were placed on these sales. A survey of the market area resulted in three closed sales of land with entitlements for ROGOs or BPAS units. In addition, I analyzed seven closed sales that were mostly purchased for public use. Appraisal Company of Key West Page 19 M c 2 R —r—fi— � gig gig!i� NJ y a+ ~ I N I M w 0 :. c N bq 0 U Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL COMPARABLE SALES MAP card 70ke Lake fnqrahar� Bea, LAO ertlier Comparable # 3 Long Key Marathon $7760 Orerseas Hwy. 0.82 miles 5W 040 H wY Big Pi we Key Key West EI Comparable # 2 59229 Orerseas Hwy. 28.48 miles 5W Comparable # 1 5671 MacDonald Are. 79.53 miles SW Appraisal Company of Key West Page 21 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Discussion of Improved Commercial Properly Sales: Each of the comparable sales was analyzed in order to make comparisons to the subject property. Each of the sales is discussed below: Land Sale No. 1- 5671 MacDonald Avenue: This recent land sale 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. The property is not encumbered by any leases. This property was purchased by Monroe County in order to combine with a right-of-way and portion of abandoned MacDonald Avenue, and the existing fire station, and redevelop the entire property with a new, larger fire department. Thus, it was purchased for public use. Per a letter from Mr. Townsley Schwab, Monroe County Director of Planning and Environmental Resources, dated December 17, 2010, confirms the pro -rated development rights for Lots 13-15, Block 31 ofMaloney Subdivision based on a prior Pre -application Meeting Letter OfUnderstanding (PMLOU) for Lots 9, 12, 13-16, 19 and 20, Block 31, dated November 10, 2004. Per Mr. Schwab, 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 ofNROGO exemptions. According to the prior PMLOU, Lot 12 has 2 ROGO exemptions. Therefore, the total entitlements are I I ROGOs and 2,065 square feet of NROGO exemptions. At the time of purchase, the value of the ROGO or BPAS transferrable rights or premium paid by Monroe County was about $15,000 per ROGO. This property was purchased for public use and was appraised by my office at the time of sale. 23 32 17, F., Land Sale No. 2 - 59229 Overseas Highway, Grassy Key, Marathon: This property consists of Lots 15 and 16 and the south 25 feet of Lot 17, together with part of Old State Road adjacent to Lot 15, Amended Plat of Dorsett Subdivision, according to the Plat thereof, as recorded in Plat Book 2, at Page 153 in the Public Records of Monroe County, Florida. The site is located Mile Marker 59.3, bayside, and is accessible from the southbound lane of US Highway No.1, aka Overseas Highway, Grassy Key, Florida. The site is improved with two CBS/masonry structures connected by a covered breeze -way, forming an "L" shape around an open parking area with some tropical landscaping. The structures are Appraisal Company of Key West Page 22 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL mostly one-story, with a second level over a portion of the one structure. According to the Monroe County Property Appraiser's office, the structures were built in 1975. The structures encompass a total of 10 guest units, an office, laundry area and an owner/managers apartment. There is also a small carport and two small utility structures on the property, which appear to add little or no contributory value to the subject property. This motel is a typical older, outmoded non -waterfront, dry motel and is quite dated. The amenities include a swimming pool and laundry facilities. This motel operation was closed at the time of sale for about one-year. The seller, Centennial bank took -back a purchase money mortgage for $522,500 or approximately 80% of the purchase price. This property was purchased by a neighboring property owner who subsequently transferred the transient rights to another property. Since transferring the rights, this property, the former Flamingo Motel, is rented on a non -transient basis as apartments on a temporary basis. I deducted my estime of the contributory value of the building and site improvements based on an appraisal inorder to arrive at the extracted value of the land "as if vacant" with entitlements at the time of sale. 1� j}IxI�` Appraisal Company of Key West Page 23 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Land Sale No. 3 - 87760 Overseas Highway, Plantation Key, Islamorada: This comparable consisted of four buildings totaling 5,248 square feet of gross building area encompassing 13 transient units, an office plus a three bedroom two bath owner's apartment. The buildings were built between 1953 and 1988. The site consists of four individual parcels containing a total estimated site area of 35,887 square feet or 0.82 acres, according to the Monroe County Property Appraiser's records. The survey provided did not indicate total site area, however, the dimensions indicated, the survey appears to support the site area indicated by the Monroe County Tax assessor's records. The site is an interior site with approximately 300 feet of frontage along the northerly side of U.S. Highway No. 1 otherwise known as Overseas Highway and extending northerly with approximately 100 feet along its easterly boundary and approximately 162.61 along its westerly boundary and lastly, approximately 308.64 feet along the southerly side of Plantation Boulevard a secondary east west two-lane roadway at the rear of the motel. The Bank of Miami acquired the property through a foreclosure on July 22, 2010. On August 26, 2010 the Bank of Miami resold the property to Plantation Acquisition LLC. While public records did not indicate the sales price, according to the listing agent at the time of the most recent listing of the property, the recent sales price paid was $803,360.79 or $61,797 per unit, the amount of the outstanding balance due Bank of Miami at the time of foreclosure. The former Islamorada Motel has since been razed by the buyer. The swimming pool was not operational at the time of sale and this property had been vacant for an extended period of time with evidence of vandalism. This photo was taken after demolition of the improvements. Value Conclusion for Subject Property Including Entitlements: Market Conditions: Analysis of the comparable sales and historical sale/resale data in the appraiser's workfiles and considering the decrease in listing prices of active listings, I have adjusted all of the sales, which transpired over year prior to the effective date of valuation at -15.0% per annum based on my analysis of sales/resales data indicating depreciation rates since the height of the commercial market 2007/2008, the residential market peaked in 2005/2006. It appears that the market is finally starting to stabilize with increased sales and leasing activity noted. Financing/Sales Conditions: All comparable sales were considered to have sold for cash or cash equivalent and no adjustments were required for financing. Although Sale Nos. 2 and 3 were bank -owned or REOs at the time of sale, they Appraisal Company of Key West Page 24 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL were exposed to the open market for lengthy marketing periods. As a result, no adjustments were warranted for conditions of sale. Location: Sale No. 1 is located on an inferior street with less exposure than the subject in Stock Island. Sale 2 is most similar to the subject in location as it is only about one mile westerly from the subject. Sale 3 has a similar corner location on Grassy Key prior to the entrance of Marathon. Comparable 2 and 3 have similar highway frontage. Differences in location are considered in the weighting of the comparables. The comparables were generally similar to the subject. Unit of Measure: The subject property had historically been utilized as the small "mom and pop" motel known as the Desert Palm Motel. The Monroe Property Appraiser's Office (MCPAO) indicates that the motel was built in 1970; however, according to a Dwelling Unit Determination letter prepared by Mr. Edward Koconis, AICP Deputy Village Manager / Planning and Development Services Director, Islamorada, dated July 7, 2008, indicates that an older Monroe County Property Card shows the existence of motel units since 1957. This small 8-unit, dry motel became outmoded and was sold to Monroe County for a reported price of $330,000 or $41,250 per unit or $12 per square foot of site area on March 28, 1990. The Dwelling Unit Determination Letter confirms that Islamorada recognizes eight legally established transient dwelling (motel) units. The subject property (sender site) is located within the Public and Semi -Public Services (PS) zoning district, thus, the vested rights or entitlements could be transferred to a another site for development purposes. Per Village Ordinance 07-32, regarding Transfer of Development Rights, appropriate receiver sites would have to be located in the Village Center (VC), Tourist Commercial (TC) or Highway Commercial (HQ Zoning District. Depending the number of units transferred, the project would require a Site Plan and Minor or Major Conditional Use Approval. A copy of the letter is included in the Addenda section of this report. After analyzing the comparable sales, the most appropriate unit of measure was the adjusted sales price per ROGO or BPAS unit. Sale 2 was adjusted for the contributory value of the improvements in order to extract the land value and Sale 3 was adjusted for negative market conditions. The adjusted prices per unit are relatively tight at $45,455 to $59,091 with a mean at $54,403 and a mean at $58,664. Based on similarity to the subject, Sale 1 was lightly weighted as its entitlements were not transient, Sale 2 was moderately weighted due to its similar entitlements, and Sale 3 was heavily weighted due to its similar entitlements and proximate location to the subject property. Based on these most similar comparable sales, the following value indication is made for the subject property: No. of Units Times $/Unit Equals Overall Value 8 X $55,000 = $440,000 "AS IF VACANT" VALUE OF SUBJECT PROPERTY WITH ENTITLEMENTS VIA THE SALES COMPARISON APPROACH IS (Rounded): .................. $440,000 Appraisal Company of Key West Page 25 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL All of the comparables are fairly similar to the subject in site size. The comparables with entitlements indicate a sales price per square foot range from $16.48 to $26.00 with a mean at $20.15 and a median at $17.98. The above value estimate for the subject is $16.03 per square foot, which is reasonable. Appraisal Company of Key West Page 26 ti q 2 ojojojojojojojo = 0 .� 0 oI oI oI oI oI oI oI o x� � v 3I z5I z5I rI rI �I� o 41 �I �I�I°INI�INII�Iv N .� o N 8IgI8I8I8I8I8I8 .� u z .� .3 �INIoIoIolololo U m Fa �I �I �I � �I �I � `o d' � e •�• On � � �I�I�IBI�IBIBIB +� +• xlbl I�I�I�I�I� Gj I zl 31 131 31 3 � t-ttfi-t � i-1 w y � �rolrol;I�I;IroI; BIT�I BI;IBI�IB•� ehI ehI�I�O' ; Q .�� �,•� t ��x� yI o 'p �I NI NI III �I NI �I�I�I�IOI�IoI� O U :. U ct cz � O O CZ N � � O It U _N 0 . ct Ct U � � U N Q U CZ ro o ro cz o 4 cz � � U U 1. O cz H 0 y U O U z cz N bq 0 U ti Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL COMPARABLE SALES MAP North Key L Marvlfe¢-KE., Bay Aarnef Lnac Joe $rP}' Overseas Hwy Sound 92431 20.00 PD5 f Lok¢ Cuthbert AffigoW.'j,., . lake -_- iake Lake MaQeh-a - .K=' The Martrae _ncr_ l7 Lungs lake, - KEY Kem: Lr:,.:ic s ¢ftl,Rariklri. SP atfa�ffd Terre _an MaQ¢ire aighr _ _ _say Ksr r j J a Comparable # 5 95098-95190 Overseas Hw 6.08 miles NE ANCinCrc 0Leur Appraisal Company of Key West Page 28 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Discussion of Improved Commercial Propel:!. Sales: Each of the comparable sales was analyzed in order to make comparisons to the subj ect property. Due to the large number of sales, the discussion of the sales is summarized as follow. Sale No. 4 consists of two contiguous, interior, highway frontage parcels of land, located on Islamorada (Village of Islands), Florida. The parcel at 86025 Overseas Highway has 100.00 linear feet of frontage along the northerly side of U.S. Highway No. 1, otherwise known as Overseas Highway, and extends from 190.00 to 204.79 linear feet in depth and 176.52 feet of street frontage across the rear on the southerly side of Porto Salvo Drive. The site contains 26,259 square feet or 0.60 acres of upland. This comparable was previous under contract for sale and purchase with Islamorada in 2010 for $250,000. The deal fell through and the property owner recently sold it for quick -sale at $95,000 for cash and a two week closing. Sale 5, 102850 Overseas Highway, Key Largo consists of an interior commercial parcel of land with highway frontage located in Key Largo, Florida. The parcel has 50.00 linear feet of frontage along the northerly side of U.S. Highway No. 1, also known as the Overseas Highway, and extends 100.00 linear feet in depth with 50.00 feet of street frontage across the rear on the southerly side of Boyd Drive and an unnamed alley. According to a measurement, plat map and Monroe County Property Appraisers Office, the site contains 5,000 square feet or 0.11 acres of upland. The property is partially scarified upland along the front on the Florida Department of Transportation right of way and also along the rear on Boyd Drive, with moderately vegetated in between. There are no improvements currently on the property and according to the Monroe County Appraiser's records there are no permits showing any past or present improvements. According to the Monroe County Growth Management office the property was classified as "Tier -less," meaning that it is not ranked as either Tier 1 or 3; thus, it could not be developed at the time of sale. Furthermore, the property is also included on the Monroe County FEMA Injunction list which also restricts the development of the property, which could be removed from this injunction by filling the required forms and having a biological survey, which has not taken place. As a result, this property sold at the lower -end of the spectrum due to these concerns and that it was bank - owned at the time of sale. Sale 6, near Mile Marker 89 Overseas Highway, Plantation Key in Islamorada is the sale of a highway front lot that was actually zoned residential at the time of sale. The buyer had applied for a zoning change to commercial. Sale 7, 92431 Overseas Highway, Key Largo is the sale of a commercial parcel located in the median or between the north and south bound lanes of the Overseas Highway or U.S. Highway No. 1 consisting of two contiguous sites. This parcel contains 28,613 square feet of mostly vegetated land. It was sold to Key Largo Wastewater Treatment District for public or quasi -public use for sewage treatment. Sale 8, 95098-95190 Overseas Highway, Key Largo is the sale of a three contiguous commercial lots that combined form a parcel containing 29,732 square feet of mostly scarified land. The property was improved with a small retail and warehouse type structures. The buildings were dated and the estimated contributory value of the structures were deducted to arrive at the extracted land vale. This parcel was sold to Key Largo Wastewater Treatment District for public or quasi -public use for sewage treatment. Appraisal Company of Key West Page 29 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Sales 9 and 10, 81990 and 80700 Overseas Highway, Upper Matecumbe Key, Islamorada is the sale of a two contiguous commercially zoned tracts with highway frontage on the bayside of the Overseas Highway or U.S. Highway No. 1. These parcels contain 123,710 and 154,638 square feet of mostly vegetated upland area. They were purchased by Islamorada, Village of Islands for future public use. Sale 11, 76153 Overseas Highway, Lower Matecumbe Key, Islamorada is the sale of a two contiguous commercially zoned tracts with highway frontage on the Oceanside of the Overseas Highway or U.S. Highway No. 1. This parcel contain 141,570 square feet of mostly vegetated upland area at the time of sale. It was purchased by a private entity. Value Conclusion for Subject Property Without Entitlements: Market Conditions: Analysis of the comparable sales and historical sale/resale data in the appraiser's workfiles and considering the decrease in listing prices of active listings, I have adjusted all of the older sales, which transpired over year prior to the estimated bottom of the market, year-end 2012, at -15.0% per annum based on my analysis of sales/resales data indicating depreciation rates since the height of the commercial market 2007/2008, the residential market peaked in 2005/2006. It appears that the market is finally starting to stabilize with increased sales and leasing activity noted. Financina/Sales Conditions: All comparable sales were considered to have sold for cash or cash equivalent and no adjustments were required for financing. Only Sale No. 5 was bank -owned or REO at the time of sale, it was exposed to the open market for a lengthy marketing period. As a result, no adjustments were warranted for conditions of sale. Location: Differences in location are considered in the weighting of the comparables. The comparables were generally similar to the subject. Unit of Measure: After analyzing the comparable sales, the most appropriate unit of measure was the adjusted sales price per square foot of upland area. The adjusted prices per square foot are relatively tight at $3.62 to $11.39 with a mean at $7.57 and a median at $8.01. Based on differences with the subject, Sales 4 through 6 were lightly weighted as they were distressed, bank -owned or potential development was limited. Sales 7 and 8 were heavily weighted as they are similar in size to the subject. Sales 9 through 11 were moderately weighted as they are older transactions, but located within Islamorada. Appraisal Company of Key West Page 30 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Based on these most similar comparable sales, the following value indication is made for the subject property: No. of Square Feet Times $/SF Equals Overall Value 27,442 X $8.00 = $219,536 "AS IF VACANT" VALUE OF SUBJECT PROPERTY WITHOUT ENTITLEMENTS VIA THE SALES COMPARISON APPROACH IS (Rounded): ................. $220,000 The difference between the "As If' Vacant Land Value of the Subject Property Considering the Entitlements and Not Considering the Entitlements is $220,000 or $27,500 per unit. According to the Islamorada Planning Department, there have not been any recent sales of transferable development rights (TDRs); however, recent transfers in Marathon have been between $30,000 to $37,500, according to local brokers. A recent purchase by Monroe County indicates a premium paid of about $15,000 per unit for the ROGOS or BPAS entitlements. As the real estate market rebounds, and new construction or redevelopment activity returns, the value of such TDRs is expected to increase. Appraisal Company of Key West Page 31 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL RECONCILIATION The greatest weight is given to that approach in which the appraiser has the highest degree of confidence. This implies a minimum of assumptions and a sufficient quantity of data. Based on an analysis of the real estate market activity in the subject properties' market area, and after considering the reliability of the Cost, Income Approach and Sales Comparison Approach, it is my opinion that the Market Value of the subject property is most accurately reflected by the Sales Comparison Approach. Based on a recent site visit, research, and market analysis, it is my opinion that the "As If Vacant" Market Value of the Fee Simple Estate of the subject property, known as 103 Key Heights Drive, Plantation Key, Islamorada, Village of Islands, Monroe County, Florida 33073, based on its vested transferable development rights or entitlements for 8 transient units, subject to definitions, assumptions and limiting conditions, as of January 16, 2013, is: FOUR HUNDRED FORTY THOUSAND DOLLARS ($ 440,000 ) In addition, based on a recent site visit, research, and market analysis, it is my opinion that the "As If Vacant" Market Value of the Fee Simple Estate of the subject property, known as 103 Key Heights Drive, Plantation Key, Islamorada, Village of Islands, Monroe County, Florida 33073, not considering its vested transferable development rights or entitlements for 8 transient units, subject to definitions, assumptions and limiting conditions, as of January 16, 2013, is: TWO HUNDRED TWENTY THOUSAND DOLLARS ($ 220,000 ) No personal property has been included in the valuations herein. The reader is referred to the attached Assumptions and Limiting Conditions and Certification of Value. Appraisal Company of Key West Page 32 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL CERTIFICATE OF APPRAISAL I HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY: Ms. Rebecca Orozco, Field Engineer LAYNE 81990 Overseas Highway, Suite 204 Islamorada, Florida I have personally examined the following described property. COMMONLY KNOWN AS: 103 KEY HEIGHTS DRIVE PLANTATION KEY ISLAMORADA, VILLAGE OF ISLANDS, MONROE COUNTY, FLORIDA 33073 and based on an a recent site visit, research, and market analysis, it is my opinion that the "As If Vacant" Market Value of the Fee Simple Estate of the above subject property, based on its vested transferable development rights or entitlements for 8 transient units, subject to definitions, assumptions and limiting conditions, as of January 16, 2013, is: FOUR HUNDRED FORTY THOUSAND DOLLARS ($ 440,000 ) In addition, based on an a recent site visit, research, and market analysis, it is my opinion that the "As If Vacant" Market Value of the Fee Simple Estate of the above subject property, not considering its vested transferable development rights or entitlements for 8 transient units, subject to definitions, assumptions and limiting conditions, as of January 16, 2013, is: TWO HUNDRED TWENTY THOUSAND DOLLARS ($ 220,000 ) No personal property has been included in the valuations herein. 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. Appraisal Company of Key West Page 33 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL 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. O My engagement in this assignment was 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 analysis, opinion, and conclusion was developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. o James E. Wilson has made a site visit to subject property. 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. o I have not appraised the property, nor engaged in a feasability study, consultation assignment, or any other related service in connection with the above subject property. o James E. Wilson has completed the Professional Standards and Ethics educational requirement by the Appraisal Institute for Associate Members. APPRAISAL COMPANY OF KEY WEST S James E. Wilson, MRICS, President State certified general real estate appraiser RZ 2164 Appraisal Company of Key West Page 34 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL ASSUMPTIONS AND LIMITING CONDITIONS APPRAISAL DEVELOPMENT AND REPORTING PROCESS: In preparing this appraisal, the appraiser inspected the subject exterior only, per the client's request. As a result, the appraiser has relied upon the exterior site visit and Monroe County Property Appraisers records. Information on comparable land and improved sales were gathered, confirmed, and analyzed. This is a summary appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 24(b) the Uniform Standards of Professional Appraisal Practice for a summary appraisal report. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Such discussion of the data would not change the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS: This confidential report is prepared for the sole use of and benefits of Islamorada, Village of Islands and Monroe County, Florida, and is based, in part, upon documents, writings, and information owned and possessed by the client, Ms. Rebecca Orozco, Field Engineer, LAYNE, 81990 Overseas Highway, Suite 204, Islamorada, Florida 33036, who is representing Islamorada, Village of Islands in this matter. This report is provided for informational purposes only to third parties authorized to receive it. The appraiser -client relationship is with Ms. Orozco, as the client. This report should not be used for any purpose other than to understand the information available to the client concerning these properties. Appraisal Company of Key West assumes no responsibility if this report is used in any other manner. 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 authors, particularly as to valuation conclusions, the identity of the appraisers or firm with which they are connected. The distribution of value between land and building applies only under the present program of utilization and is invalidated if used in making a summation appraisal. No responsibility is assumed by the Appraiser for matters which are of legal nature, nor is any opinion on the title rendered herewith. Good title is assumed. The property has been appraised as though free of liens and encumbrances, except for leases as herein described. The management of the property is assumed to be competent and the ownership in responsible hands. 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 Appraisal Company of Key West Page 35 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL lease. The landlord's rights include the right to receive rent and the right of possession at the end of the lease period. The subject property is not encumbered by any long-term leases; thus, a Leased Fee Interest valuation was not applicable. The Fee Simple Estate was applicable for this report. The reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. The subject property consists of three contiguous lots, which form a corner, highway front parcel of land, located within Islamorada, Village of Islands, Monroe County, Florida. A survey was provided by the client and was prepared by Mr. Thomas J. Galloway, PSM, of CPH Engineers, Inc., 500 West Fulton Street, Sanford, Florida, dated December 12, 2012. The subj ect parcel has approximately 100.39 linear feet of frontage along the northerly side of U.S. Highway No. 1, otherwise known as Overseas Highway, 229.41 linear feet of frontage on the westerly side of Key Heights Drive, plus 119.66 linear feet on the southerly side of Orlando Drive. According to the survey, subject site contains 27,442 square feet or 0.63 acres of upland area. There is a slight discrepancy in overall site size, according to the Monroe County Property Appraiser's Office records, the site area contains a total of 27,600 square feet of upland area. I have utilized the survey measured dimensions and site area throughout this report and in my analysis. The subject site was purchased by Monroe County about 22 years ago and subsequently has been utilized by the Public Works Department. The building improvements consist of an old, outmoded motel facility that has been used by the County for administrative offices, plus storage of equipment, parts, materials, and vehicles. The building is overall fair condition. Per the clients request, I have value the subject "As If Vacant" as the Village of Islamorada is planning on razing the structure and construction of a vacuum pumping station for the central sewage treatment system. As a result, the existing building and minor site improvements do not have any significant contributory value. The subject property had historically been utilized as the small "mom and pop" motel known as the Desert Palm Motel. The Monroe Property Appraiser's Office (MCPAO) indicates that the motel was built in 1970; however, according to a Dwelling Unit Determination letter prpeared by Mr. Edward Koconis, AICP Deputy Village Manager / Planning and Development Services Director, Islamorada, dated July 7, 2008, indicates that an older Monroe County Property Card shows the existence of motel units since 1957. This small 8-unit, dry motel became outmoded and was sold to Monroe County for a reported price of $330,000 on March 28, 1990. The Dwelling Unit Determination Letter confirms that Islamorada recognizes eight legally established transient dwelling (motel) units. The subject property (sender site) is located within the Public and Semi -Public Services (PS) zoning district, thus, the vested rights or entitlements could be transferred to a another site for development purposes. Per Village Ordinance 07-32, regarding Transfer of Development Rights, appropriate receiver sites would have to be located in the Village Center (VC), Tourist Commercial (TC) or Highway Commercial (HQ Zoning District. Depending the number of units transferred, the project would require a Site Plan and Minor or Major Conditional Use Approval. A copy of the letter is included in the Addenda section of this report. As a result of the subject's unique location within the PS zoning and future land use district and the fact that it has transferable development rights or entitlements, I have estimated an "as if vacant" land value with rogo or BPAS entitlements for eight transient units, plus I have estimated an "as if vacant" land Appraisal Company of Key West Page 36 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL value without any vested development rights or entilements, based on comparable sale of parcels purchased for public or quasi -public use. A copy of An Ownership and Encumbrance Report for the subject property, dated December 12, 2012 was made available by the client. American Government Services Corporation prepared the report and copy of the findings is within the addenda section of this report. There are a few easements for overhead electric wire utilities, which is common in the market area. The survey indicates some minor fencing encroachments, while there does not appear to be any building encroachments. The buyer does intend to raze or demolish the building and site improvements. A Phase I Environmental Site Assessment Report was made available by the client. The report was prepared Mr. Robert P. Crowell, PG of by Arcadis U.S., Inc., 2081 Vista Parkway, West Palm Beach, Florida, dated December 27, 2012. The report noted heavy oil staining in the absorbent soil material surrounding the waste oil tank, a potential for adverse substances in the septic tank and drainfield due to its historical industrial use, plus the presence os asbestos -containing materials used in the construction of the old motel structure. Mr. Crowell recommends removal and disposal of stained soils, sampling of shallow groundwater for volatile organic compounds, petroleum compounds in the vicinity of the septic tank, drain field, and near the oil disposal tank. The potential cost of soil removal, testing, and any potential remediation has not been considered herein as further investigation by environmental professionals is warranted. If these environmental concerns are significant and costly to rectify, then the value of the subject property would be negatively impacted. No personal property has been included in the valuations herein. Information, estimates and opinions furnished to the appraisers, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsi- bility for accuracy of such items furnished to the Appraiser is assumed by the Appraiser. Disclosure of the content 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. Possession of this report does not carry with it the right of publication or advertisement of any of its conclusions, nor may any except the applicant use the same for any purpose without the previous written consent of the appraiser or the applicant. In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenance of the building, such as the presence of radon, asbestos insulation and/or existence of toxic waste, which may or may not be present on the property, has not been considered. I reserve the right to change the values herein if and/or when an environmental audit is made available. The appraiser is not qualified to detect such hazardous substances. I urge the client to retain an expert in this field, if desired. Appraisal Company of Key West Page 37 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraiser has not made a specific survey or analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, a possible noncompliance with the requirements of the ADA in estimating the value of the property has not been considered. 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 discovery of latent conditions is beyond the scope of this appraisal. Detection of latent conditions requires the expertise of qualified persons such as architects and engineers. Latent conditions include, among other things, non -apparent structural conditions; presence of prohibited hazardous wastes; presence of radon gas, methane gas, asbestos, lead, petroleum products and other air, soil, or water contaminants; and many other conditions too numerous to mention which may affect the value of the property being appraised. The 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 do 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 38 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL SUBJECT PHOTOGRAPHS Street Scene Looking Easterly Along Key Heights Drive View of Subject Property Looking Southerly From Key Heights Drive Appraisal Company of Key West Page 39 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL SUBJECT PHOTOGRAPHS Street Scene Looking Northerly Along the Overseas Highway L Street Scene Looking Southwesterly Along the Overseas Highway Appraisal Company of Key West Page 40 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL SUBJECT PHOTOGRAPHS View of the Subject Storage Lot Front View of the Subject Property Looking Northwesterly from the Intersection of Key Heights Drive and the Overseas Hwy Appraisal Company of Key West Page 41 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL SUBJECT PHOTOGRAPHS View of Subject Storage Lot View of Subject Storage Lot Appraisal Company of Key West Page 42 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL SUBJECT PHOTOGRAPHS Side View of Subject Building Looking Easterly View of Subject Storage Lot Appraisal Company of Key West Page 43 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL SUBJECT PHOTOGRAPHS View of Subject Looking Easterly Appraisal Company of Key West Page 44 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL PROFESSIONAL QUALIFICATIONS JAMES E. WILSON, III N 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 somewhat unique market area. 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 of the 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 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. Jim is past President of the Key West Gator Club, President -Elect of the Sunset Key West Rotary Club, and President of the Key West Chamber of Commerce. 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 A Debate of the Allocation of Hotel Total Assets, October 26, 2010 Appraisal Company of Key West Page 45 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Professional Oualifications of James E. Wilson, III (Continued) GOLD COAST SCHOOL OF REAL ESTATE (Continued) Appraisal Institute Update, May 19, 2011 Appraisal Curriculum Overview (2-day General) May, 2011 Perspectives from Commercial Review Appraisers, July 20, 2011 Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets, 05/07/2012 - 05/08/2012 Real Estate Principles, Practices, and Law - FREC Course 1, 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 II, January, 1994. Appraisal Company of Key West Page 46 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Professional Qualifications of James E. Wilson, III (Continued) 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#1299389 Affiliations: Past President of the Key West Gator Club (Alumni Organization of the University of Florida Member of Class VHI, Leadership Monroe County Board Member of the Rotary Club of Sunset Key West, 2012/2013 President -Elect 2009 Treasurer, 2010 Vice President, 2011 President -Elect, 2012 President Board of Directors of the Key West Chamber of Commerce, 2012 President 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 Appraisal Company of Key West Page 47 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL APPRAISER CERTIFICATION AC# 64 t 9233 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSICNAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD Sr=Q#T,121o23027e7 � ICI - _ - LICENSE NBR. 19 23 2012 120182481 RS2686 The CERTIFIED GENERAL APPRAISER Named below 19 CERTIFIED Under the provisions of Chapter 475 F6. Expiration date: NOV 30, 2014 WILSON, MARIA VIRGINIA 3229 FLAGLER AVE SUITE 101 KEY WEST FL 33040 RICK SCOTT KEN LAWSON GOVERNOR SECRETARY DISPLAY AS REQUIRED BYLAW Appraisal Company of Key West Page 48 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL TATE MAP day Mlnalta w vy Gn o . Tnomasvilei Valdosta I l e valei Crew Marie rn ® 4 �K n�lend le +y+p .. a Arieaot tiaslon. i7Ae�,dtir+kt4! •"' .m Fe nandina Beach Mi ton Ly wwak Cyyrasa`- o Ou ny b.s.-. St Ma f .. ° 5 ri Grelry ° LnSatQf�' r^4hls ' Taliahssaee ik95n Yo ngslpwn JackSPnvllle Ferey Penaatd 3 €yn Haven a F L 0 Ft 1 13 A. 0ak iiekaorivllla Beath B r a k e a ake OtY'Bellaii ° de Apalachicola Petry e Panama CRY Calaway Nagnal ° MrAlpin lake Palm Valley S e Rwasl ° Slfug•aafne IP�ium Beath High SPrmgSp Rlaohua ° P ,< r3 ! 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J The Site To Do 8usiarss a mi M e x i C 0 AwlrGp NaEinrr�ll Prfl,@n* Cverglpllvs N P Key lergo Taverner N.een n j(eyWoM .d Lillie a. 4,:Irrn �ardk c VA Walar Cay n raepw City R.nrem Pam m Pr�'i a �� Town widior's SOWn Twin L Man at War Soun o Money Tawnq Appraisal Company of Key West Page 49 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL FLORIDA KEYS MAP Kay I- rgo MM 99-106 'Ta V CtX-n i CL'3r I'71'1 91 -92 Plantation Kay MM 86-90 WSndley Kay MM84 aIA morada spar Mataeumbe Key MMSO J,awer Matecumbe Key MM74 -Fiesta Key MM70 % Lay-tnn FBI ng Key MM66-69 SCbnKIIA —Y0 MM61 Key --Grasses Key MM57-60 vc- naraLnon zsnores Key Colony Beach MM54 Yaca Kay Marathon MM50 Pigeon Key M,M45 7-mi]C Bridge ►�' 4P p►p _Sunshine Key MIS 40 MM 373 -8 � qpl Bia ahHrn oo" � � V3-�eJ�jo� � t's�MiM 2t3�e • amrod MM ��- $umm 7 A T d MM 2� �2 e�x• $ Sugaru33lt a®i� Key MM222-23 S`-a 7,ox� ugrloaT xcy MM 17 SaddZebuncY� Keys !7M 1--16 lg Coppstt M" 10 Boca ChiCa MM 7-8 4EStock =sIand MM S • Kay West MM 0-4 Appraisal Company of Key West Page 50 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL LOCATION MAP --�tiZe7'seas--Hw�s Plan�aoon Pvej' � - i�� C«... o, PLANTATION KEY �1 y G u f f a M e r i �h F—d" Fork Plantati8n I rop` crmcrr _�`y Skm STDB'jNLINE*a _ me sar T. D. 8urmru am Appraisal Company of Key West Page 51 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL PLAT MAP Appraisal Company of Key West Page 52 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL PLAT MAP K E Y H E I G H T S —SECTION 2---- I-OCOTED IN GOV'T. LOT 6SECT18N 7 8 COV'T. LOTS 3 9 A -SEC VCH 8 TOWNSHIP 63 SOUTH -RANGE 369AST PLANTATION KEY-MON'RGE COUNTY-FLORIDA • a .:... r.,.� a ,.. ... .- .. ...,... • .a S Ir. in IN- ZZ Appraisal Company of Key West Page 53 tDing Tave s *M- I yi - 1* 41k 4 As 45 I a jr NZ PCTI Summary Appraisal Report SURVEY im a ill In i� /ate/ 103 Key Heights Dr., Islamorada, FL {A A-75�' R.aw L � 76.t1' l • FY.SI' (8+s617E'Qrw to•8OWW w 4H3fHIG $GAIT' i it k01 {au103 iL x rh'S FIVE 103 SE• E.a'S wIN MWil6 Pdfn I ww a 1EY �PL4VARrr ropockow MAPg� ,PoW F.Ul ILrA-Qa ONp MfWRIT' Appraisal Company of Key West Page 56 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL WARRANTY DEED 6336 5 °EC1!26 hGE152S WARRANTY IIFED (lade ;his �of duty 0-P Marcht 1994, between ISLAMQRADA INN, INC., a Florida CC)rPOration Party of the first part, and MUNROE COUNTY, a Political subdivision of the State of Florida whose address is: Public Service ktuildinQ, Stack Island, Key West, FL 33*40 P-krty of the Second part, WITNESSETH, That the said party of the first part, for and an Consideration of the sum of Ten and Na7100th5 Dollars ($I'?.r)0;1, to it in hand pairl by the said party of the second Part, the receipt fDf which is hereby acknowledged, has granted, bargained, and sold to the said party of the second Part, the f---410winq described land, situate and being in the County of Monroe, State of Florida, to -wit., Lots 1, 2, and 24, Dloc4, 11, KEY HEIGHT'S, SECTION TWO, according to thL- plat thereof, as recorded in Plat Book 3t at Page 159, Of the Public Records of Monroe County, Florida. Subject to conditions, restrictions and reservationts of record, zconing -ordinances, easements for tf,e Public utilities, if any, taxes for the current and subsequent years. Lot # 1 Assessment #00417110-000000 Alternate key #151328B Lot # 2 Assessment 40041712C�-OtICP00+"J Alternate key #1513296 Lot 4424 As 4a5smeot 000417340-(�OooC)C) Alternate Key #i1512512 TO HAVE AND TO HOLD the same in fee simple forever. AND the Grantor hareby covenants with the said Brantee that the Grantc,r is lawfully seized of Said land in fee simple; that the Grantor has good right and lawful authority to se11 and Canvey said land; that Grzantcnr fully warrants the title to said land and will defend the same+ against the lawful claims of all persons whomsoever. G; r p QS Paid (Qf)x to .. — l L, NIONRO. d.;);,'1;TY Sy Lu a Q U. Page 57 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL WARRANTY DEED 6313605 HN 1 12 6 Drrl52 IN INFTDIEE5 WHI=RFUFp Ah5,9j-7 q.--ty rf tit rireF part has nvrounto set hic fund arc GeA: tho _a;r and year inrst written ague. U19hod. Staled wnU 4fM1LW'*Vrd Ln tha Nf#gi nCal Oft k e4sI �Di tnc'a ISLhMORAZA INN, INC., a FlWd" A�C. L�TSi STATF OF FLORIDA k CIJU VTY OF 110NR0U � I HFREQY 'CERTIFY kha5# -on th1% _ ` d,Ay+ of Mirehq 1994a ppr"ria.i I y pppoa rad vMFhMRA V- PhTELt PrDcldont of X1 L"WA A Ihadt INC., a Klorida borperaeaan, known to ho th�q person rzmmcrxGad in and who m%vcutod tho tt-regrolnip lnstra�q�#'- J'��'•{ and he acknoul"ed before me that ha executed the Pty Ccormisaion €x&iresi I .,, �' _ N o1141C NMI Or rLlal[a +M OPIMIlIG?I [iH �lil 11.14i4 _ �v a LD f[KA4 ud, iip riorary nuh] lc THIS lNSTR.MRKT PREPARED BYJ Dcm1r l t F. Q uneldlo jQOaSO ®uorSg4% HipPuj-.Mw Key LarpD, r1crida fi7 ftM" 6 L+0-10 tc"J;. r6d � Iif13' L. rou „uh CkMN 0.1 Appraisal Company of Key West Page 58 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL STATUTORY DEED T}113 3Ta4M Y LYIED, #Wul "5 ljay ai ry ` .�_ Iny• tzy the hcd Or Pq WARD 4F COI NTV CDJVih+135JVgE:2� OF w,0041RC)I` COUNtY Q pvGl'ul mmdiv-pion of Phe M �Wa of Fic;Acto and rcrl' CA the %-M parr. Poi ILAMORAMA. VLt&C� .}� ISLALNUS• o rimrWClpalil•,+ rho 51010 ,3 Ftriw c„ d MOO ai ihn mq -oria pit . wh)0wGI � ad reL:I� P€760 91i8, W4m,�Oda, FL 3333A d n WffNESWM. root Ph■ jWd pal,' er ll,q rrsi ;,art. Orr and ir' ccrisdffinello'n crr My - tiiaurnpkvd ri+Jw4idlcHan oncl ae!sparL-IPairihY° nrnr Iha p r �ryr�ci +nere4n, and pwjLxt-ht On rr. Ine ,naff1=0r AqrearmvO b4hyr,en Ifre LJrrku JgFed p0ku-v&- L- 'p. M d h r�V Qti v 6t i. 201. alien, "nruv. j:on'Frn, rernke find n wnio the Saud puOy CrP H+e cpr=,..el DWI icmvw ihe re7lhDWrk9 dedalbeJ 10P. Poe• tr porcoi tar IrJ,.7d ! +MU te. IYIr'7 Lin# Ix'ro in Via G-Aggy er Munr❑s g.1.4le Le -off kx ovir: IRO" rirrjurll+g dn117 PMn payled rocd*u! k and Aph9wl w inyl -ctxrenl6V In tk'er rMW rlhU ar 4slamorod4 ' lk;, w zI lllanrm. t�oL1'1k1� gip' �. !- Os do �j, .lf ,�" gPhxned fiemP* and Inc»rptor4M he3rWn by �- - rerfemenv�,. Z8 Hui+■ orrd I'a Holed Ph* ;Or-& rs.perhr wtlh -all and jJn9LA!r it.e PUDPLOInaf*,iO - i tr,"Urft DelcgUinG Li+ u, ©n•,wiaq Wes. ar* U11 the E196 e. IliZ61. ilrle 1001-ed lion: egAV Qnc wain, vwh9i Vew -:, HIM, Md 67 P3rfy ughmr f' "yr *quIIY: 6n `he PDPRF 1JWC, nPeneil qM-4 belr300 4' the old party vl PhO AcOrld Puri Irrrswer. . r,j H1 r+1h11+ W halve, Ir1a� Laid pWpy pi lksa ihj pM i,m =wed Phnr� Lis-mnls ir. bip ui ha %ecuivd ir. ris ropne !PY pis 130rd ar :CntY Cpmrnirrrcnen Ins day ono. yeui Cal obove It omflan a f1 60 Ct OF CIDU 1Tti CIgltlk 4&ClNM` A,1JII f1. }kI A ipe L. r41.+iAG� , CLOW oT maram- � o vc c, - 84PH I)ewv NO cp b a, 9 +o M) Inslrunearl Pff".d tix - S riarr'a A, F, ftri, Frdi &ib 1.22 �� 4mlltml urrr9.�tI }gQiNP,rf�+w !h F Id rl A, KIY"pAi tTOP010 key Wmv FL 33040 an a 94 f atrL F'a+u.ee�s' Appraisal Company of Key West Page 59 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL DWELLING UNIT DETERMINATION LETTER G Lt-' �•t isfanwra ffaye of lsfan& Mark Retell, FAmutiw Dirwc+r MQr-ue cows Larod AuAh■ar+ty 12C*'Frwtw Avvrru4 S.0 Lu V 7 Kc3, V L-4, FL 331MO NIJO .CU DWELLENOUNE BF-TUIMINATION AT I ILI KEY WEIGHTS kRWE, rpATiTA7TOWKFV'.1KjL +1QiLr DA, FL ur.►VWC;1 1A5i3 Dt-ur Nrr. limcp, ThiF 1atw cnr►tirms thm J,sWrrrrrr&Aa. Vil lage of Island% rmagnpqs erLjrt Ibjsllyra7n6Ji:ibed trnoale p awdlrnp Lw-L, , unJla di 04 eut,Jerr addmg. 7hi9 debwffilualwiv r€ l:-asrW [er tha fvNuwiukg mica as 16--*W In The 61 mrsadn Cok i i UwdOmwcs lWwjF i Qrrlirwnrre 9540- ■ Scu 30473(dKI), A hliahox- C&Am.. Fd*.utX k rd C&A &how 5g, tllc oxiUmoc uF ltrc nwbrrj ufrlf, sigrx 1953 NR$ heal lair vi&d PF*W t„ 19416em nry nv Mgrube C�Pwnky Zaiks Rawal bionx rrO th-- 7— db cigbi a rw ad em dd kaym 6wt euieutwuLL $r d3st rime. flit Card imajamu fie uudb Ccmdducd it. : • , , -ui 4r ml unity until khe We dare of Arri1 I. 19'o- Ar Ofiieiel —011) by Maw— C,r oy pmvWed 1: W&rwdr Umd, rm=NW air .4p.11 4, LWA. ']like deed hWicabm ik sal& ofilbrNvat Palms kotuk c*Nk,in s CUMFO,. You bffwc4ibcuqWTvJww tha tf fcrxNht.y of th*w riOhs Village Clyd urancc 07-32 {"the Ordinance" 1 regards tFwulLr DrkI]evalu Felt FUAh PmVidem lkw tha i0140,dlog Inlunuglun 'The s*,kil peup8rtp {9irvJurawe) d lucareu witlkin Ih Publf and 4snri-Public 5rryi 3 P5� nnirr�} [>'in11 I l Rc OMipmnce 9f1ows for ru=iwsr -sWt* iccw W ill et4Q Lite ViM ap Cenler (Y17}, Trmriri CannrnerLial {ICJ xw Fl oh liav ma"miml M1 dips diAr4d The wansW of Faur or bm udlrs wouW ccgWrw a SM. P6m aud Miaah Ccndlrraaai Um .ppmeal amd Ibc tramfu of flwe Lw uluLL iwmid Tr;pirr a• Sift Pun and ktAjur irentEitionAl lase Apprnwal I hwvF, m rekO r'he Ckd* rP;v ;n "F rcr yow mc. IFM tea any quejtiups, or if can to offurMU .sajNbam=, pkwc dra mot hgsGNr< to couw, t me it 30-Wi 5Eowt. Ll(U�a i<ne,�lrs. AlCt DmIwcy VUkV Malwar F%runialg and Bn lopmlmtSarvim INmajoF t' ! MUW! b hdids. VtllaSe *cia MPM hi4n4 Bmiake, Vi1bW AFlom y tr 1FjvOwPPMft L►m PffhIk rw, %OWMW 16]4i�F{laerlelsi3iehbu Ikmood Flush, hdlrrrrwikl r FL -■ l! ff OR 564. blurrrurAft, F I. S!4n r1 k;� V..+flS bOffl , %V-�1 - µ wr e;wmnrmA P u; Appraisal Company of Key West Page 60 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL i� ,j,JJ ygyg b°all sr g 2 3 ! IL T f i If�Fkgr�.....- LF;.vfFpFrq. 'V k w C) n W Cc k Cti q _. 4i wco'isr]...] ^� f Q o �cr.o LU BO UN DR Y Appraisal Company of Key West Page 61 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL ENVIRONMENTAL SITE ASSESSMENT REPORT ARCADIS Phase I Environmental Site Assessment Report Future Vacuum Pumping Station Property Middle Plantation Key Islamorada, Monroe County, Florida Prepared for: Village of Islamorada PrePared by: ARCADIS U.S., Inc. 2081 Vista Parkway West Palm Beach Florida 33411 Tel 561 697 7000 Fax 561 697 7751 Our Ref.: GA064013.0004 D.W December 2012 This document is intended only for the use of the individual or entity for which it was prepared and may contain information that is privileged, confidential and exempt from disclosure under applicable law. Any dissemination, distribution or copying of this document is strictly prohibited. Appraisal Company of Key West Page 62 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL ENVIRONMENTAL SITE ASSESSMENT REPORT ARCADIS 2. Site Description 2.1 Property Location The subject property is located northwest of U-S. Highway One (Overseas Highway) and southwest of Key Heights Drive on Plantation Key, Monroe County, Florida. Specifically, the subject property is located within the northwest quarter of the southwest quarter of the southwest quarter of Section B. Township 63 South, Range 38 East. Figure 1 shows the location of the subject property on a United States Geological Survey (USGS) topographic map, Figure 2 shows the property on a recent aerial photograph. The surrounding land use is mixed commercial and residential. 2.2 Legal Description The Legal Description, obtained from the Monroe County Property Appraiser website is Included as Appendix A. 2.3 Physical Site Characteristics The future Middle Plantation Key vacuum pump station parcel is primarily rectangular in shape and occupies approximately 0.28 acres. The property is approximately 120 feet long and 105 feet wide. The topography is generally flat throughout the property. Currently, the property is developed with an old motel building that has been used for at least 24 years by the Monroe County Public Works Department for administrative offices, equipment, parts, and materials storage. 2.4 Site Vicinity General Characteristics The right of way for Key Heights Drive borders the subject property to the northeast and the right of way for U.S. Highway One (Overseas Highway) borders the site to the southeast. The abutting property to the northwest is a continuation of the subject property currently occupied by the Monroe County Public Works Department. The Monroe County Sheriff office, the County Jail and the Public Works Garage are located adjacent to the northeast (across Key Heights Drive). A landscape nursery borders the property to the southwest. ]Y11" oN,pk++ wtt+p+,1 an reparXi,pk.,2-27-,i:duca Phase I Environmental Site Assessment Report Future Vacuum Pumping Station Middle Plantation Key Appraisal Company of Key West Page 63 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL ENVIRONMENTAL SITE ASSESSMENT REPORT 07 ARC'ADIS 2.5 Current Use of the Subject Property The subject property contains an old motel building that is currently used by the Monroe County Public Works Department for equipment, parts. and materials storage. 2.6 Description of Structures An old motel building is located in the southwest portion of the subject property. Based on a review of historical aerial photographs, the building was constructed prior to 1959. The building extends onto the abutting property to the northwest, which historically has been the same parcel, 2.7 Current Uses of the Adjoining Properties Abutters to the subject property include the following: To the Northeast: Key Heights Drive abuts the subject property to the northeast. The Monroe County Complex, which includes the Monroe County Sheriff office. the Monroe County Jail and the Monroe County Public Works Department Garage, is located across Key Heights Drive. Aboveground storage tanks were observed on this adjacent property. To the Northwest: The adjacent property to the northwest Is a continuation of the subject property occupied by the Monroe County Public Works. This property and the subject property have been historically one parcel. The aid motel building an the subject property extends onto this adjacent property Evidence of Public Works vehicle storage, drums, and pesticide storage were observed on this adjacent property. To the Southeast: The right of way for U.S_ One (Overseas Highway) abuts the subject property to the southeast, The land use across U.S. Highway One is residential. To the Southwest: A landscape nursery business (Gerry 8roney Landscaping) abuts the subject property to the southwest. ]'dryCypC[i18nY5EBRelr9[!o Y11" UNr4kYapvrW1I an IBPOIi-frylb-ti:+2%•t$. Phase t Environmental Site Assessment Report Future Vacuum Pumping station Middle Plantation Key Appraisal Company of Key West Page 64 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL ENVIRONMENTAL SITE ASSESSMENT REPORT Phase I Environmental Site ARCADIS Reportsessment Future Vacuum Pumping Station Middle Plantation Key The purpose of the reconnaissance was to visually identify evidence of "recognized environmental conditions This included indications of spills, chemical or solid -waste disposal practices, ASTs and USTs, and Other environmental concerns within the ASTM standard. The reconnaissance did not include quantitative sampling of water, soil, air, or materials at the subject property. The findings of the visual reconnaissance are presented below. 5.2 General Site Setting The subject property is rectangular in shape covering approximately 0.28 acres in size. The property contains and old motel building that had been used for storage of paints, signs, and equipment by the Monroe County Public Works Department. An asphalt drivewaylparking lot is located north of the bullding. A septic system is located on the property near the southeast corner of the old motel building. 5.3 Observations The following are descriptions of the general observations and operational information and observations made during the site reconnaissance. Representative photographs of the subject property taken during the site reconnaissance are included in Appendix E. The subject property was observed to contain an old motel building along the southwest property boundary. Asphalt -paved driveway/parking areas are located northeast of the building. Three sides of the property are secured with a chain -link fence. An unregulated (less than 500 gallons) aboveground waste -oil tank was observed on the subject property. The tank is used for public disposal of waste oil. The tank is not located within Impermeable secondary containment. The tank is located on a bermed area containing a layer of absorbent soil, but not within secondary containment. Heavy staining was observed in the absorbent sail at the base of the tank. According to the site owner representative, the tank is emptied on a weekly basis by a licensed waste oil disposallrecycling company, • A septic tank was observed on the property near the south and of the building. An inscription in the concrete of the septic tank indicated that it is 900 gallons and was installed in 1993 by Pinewood Enterprises. According to the owner representative, the facility has always used septic as the wastewater disposal method. �7�Y3�19f9[16 Yilly� p�Y9pkgili 99P 16�OFi•I�-t�.j']•i'�.dOC� � - Appraisal Company of Key West Page 65 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL ENVIRONMENTAL SITE ASSESSMENT REPORT Phase I Environmental ARCADIS Rep Assessment Future Vacuum Pumping Station Middle Plantation Key • An emergency generator with a built in fuel tank was observed on a concrete pad on the subject property. No staining or evidence of a fuel release was observed. ■ Seven units of the building (south portion that includes the subject property) were entered and observed. The interiors appeared to be in poor condition. Floor materials consisted of concrete, terrazzo, and vinyl floor tiles. (Nall board and popcorn ceiling materials also were observed. Many of these materials were observed to be damaged. • Several containers of "antifreeze" and transmission fluid were observed in their original containers on a shelf in one of the units. No staining or evidence of a release was observed. The presence of these may indicate the possibility of automotive maintenance operations. An official -looking metal sign on the door to one unit was inscribed "Radiological Services" and a hand-written sign on a door was inscribed "Paint Storage". No evidence of radiological equipment or paint storage was observed in these areas during the site reconnaissance. According to the owner representative (Section 6.1), approximately 12 years ago, under a special grant, an employee of Florida Power & Light (FPL} occupied office space in the building for public education of the FPL Turkey Point nuclear facility located approximately 35 miles to the northeast. The position at the subject property was administrative and clerical. A unit in the building previously was used for road -striping paint storage and for road sign manufacturing. 5.3.1 Material Handling and Storage A waste oil aboveground storage tank (for public drop-off of waste oil) was observed on the subject property. The tank is less than 500 gallons and therefore, is exempt from tank registration requirements. 5.3.2 Solid and Hazardous Waste No evidence of current hazardous waste or improper disposal was observed. A sign on one of the building doors said "Paint Storage". 5.3.3 Petroleum Products A waste -oil tank was observed on the subject property. gAapropds�eOislammda, village ofmpkMmpofiphl a report-mpk-12-27-12do 23 Appraisal Company of Key West Page 66 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL ENVIRONMENTAL SITE ASSESSMENT REPORT ,ram Phase I Environmental Site ARC'ADIS Reportsessment Future Vacuum Pumping Station Middle Plantation Key photographs and other historical resources, review of environmental databases, review of regulatory agency files, interviews, and a site reconnaissance. The assessment revealed the following recognized environmental conditions. Heavy oil staining in the absorbent soil material surrounding the waste oil tank_ The visibly -stained soils should be removed for proper disposal and confirmatory soil sampling for petroleum compounds and heavy metals should be conducted to confirm removal. If the staining is found to have penetrated the entire column of absorbent soil and has impacted the ground surface, sampling of the shallow groundwater in this area will be reoommended. The property has more than 20 years of use by the Public Works Department. An interview with the owner's representative indicated past road sign manufacturing operations on the property. Evidence of previous paint storage and sign storage were observed. Because of the past industrial use, a potential exists for substances to been disposed in the facility septic system. Sampling of the shallow groundwater for volatile organic compounds, petroleum compounds, and heavy metals in the vicinity of the septic tank and draiinfield is recommended. ■ An old motel building exists on the property. Based an the building's age, asbestos -containing materials may be present. Some of the potential asbestos - containing materials observed were in damaged condition. An asbestos assessment is recommended. If the building is scheduled for demolition, the asbestos inspection should be demolition -compliant in accordance with the !National Emission 'Standards for Hazardous Air Pollutants (NESHAP). 9. Deviations Due to the historical rural setting of the property, historic data going back to 1940 were not readily available. Therefore, this data failure is revealed. This is not considered significant because no evidence of previous development or commercial use of the property was ides#fed. 10. Additional Services No additional services were requested or performed �A"�"��Yp63�ryp18dB. Yillpys PN9nkxi{�Wt'F>✓li YBP fBpOfi-R�Ik-tZ.2'i•1'j.tjOF Appraisal Company of Key West Page 67 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL ENVIRONMENTAL SITE ASSESSMENT REPORT Phase I Environmental Site Assessment ARCADIS Report Future Vacuum Pumping Station Middla Plantation Key 11. ReferenGQS FOEP Oculus Database - h#@)1dwmedms.dep.state.q.us Geomet Technologies, Inc,, 1987. "Florida Statewide Radiation Study", prepared for the Florida Institute of Phosphate Research, November 1967. Medallion, Joe, 2012. Representative of current property owner, personal communication with Robert Crowell, December 14, 2012, Hurt, G-W., Nobel, C.V., and Drew, R.W., 1995. 'Soil Survey of Monroe County, Keys Area, Florida", United States Department of Agriculture, National Conservation Service, October 1995. 12. Signatures of Environmental Professionals We declare that, to the best of our professional knowledge and belief, we meet the definition of environmental professional as defined in §312-10 of 40 cFR 312. We have the specific qualifications based on education, training, and experience to assess a property of the nature, history, and setting of the subject property. We have developed and performed the all appropriate inquiries in conformance with the standards and practices set forth in 40 CFR Part 312 Robert P Crowe ll,.PG 2 1 '-7 e i 5en6i ; :rengst/Project Manager 13. Qualifications of Environmental Professionals Qualifications of individuals participating in this ESA are included in Appendix F. Il w�TNdi Wemo,.j8, w'LD9n p rerortMyac-12-27-12 dp _ c Appraisal Company of Key West Page 68 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL TAX INFORMATION DAN1SE 0. HENR1QIlEZ, CAC. 2U12 Paid Real Estate MONKr C:0(1WTYT" CVLLF--P3R NOTICE CIF AD VALOREM TAXES AND NON -AD VALOREM ASSESSMENTS • r YCIf1114.9E isUlINT'{ PU6LIC SIE4VICE PLUG 084175w7�00d3G0i77E:39 STOCK IstnNt7 193 KEY HEIr,HI talc KEN Y4FST FL :4040 gFY HFiaHT-9 �sz1:TrN 2 PK3-1513 PIANTATIPN XEY LOTS 12 asr 24 UK 11 OR456499 CM55I9.679 OR700,e71 11 All VALOR" TALXES SCIIO')LSTATE LAW ?I:B 425,619 425919 a .300 SCHOOL LOCAL BOARD 1148ti 426,A1�% i25 019 ¢ Q.70 GENERAL REVENUEFUND 0.9172 425919 425.010 6 000 FBF LAW ENFORCE RAIL ,JUDICIAL 219r3 A2r 810 425.019 a 9.9D HEALTH CLINIC 0.05134 425.81@ 4259119 0 090 p FLLIFRIDA KEYS MOSQUITO CW471ROL. 0 5171 425,919 A25 On 0 k)" ISLAMORADA VILLAGE OF ISLANDS 2-5320 425.919 62S 019 0 0.00 a SO 71. Vy,%TER MANAGE -VENT DIST 0 11;7 42; 819 425 019 a 17.00 � QKI=Eiai0 6EE 6ASI71 01919 125.019 425.019 0 0100 v9� EV€RC+iA1JE5 CONSTRUCTION TIC211 PRJT i.05 t3 4 J3h IDS 426 019 } 0,00 m p W _ ism' >oo� Mfg. TOTAL MILLAM 10.21510 AD VALOREIIIA TAX7M 50.30 >s NON -AU VALOREFAASBESSME1fT5 INCIN AQ WLI AMOMMEMM so,4G CaMBDiMTAXES AND ASSESSMENTS Jr q!'cI41M2"w 5v j Nnv 40 201: 0w 31.2111 Jan V. 2g13 FL�s zo :017 kArfSf,?�iS Phase Pay ! $0 n0 Sd5A0 'SR 00 50.00 IF PAID ®Y . DANISI: D, R'ENRIQUEZ, U.F.G, 2012 Paid Real EstatE VCNRG, 17,301'OTY ThX 1,'.13.1F'.T,7;, NOTICE OF AD VALOPEM TAXES AND NON -AD VALOREM ASSESSMENT$ � p8� MONRDE. ODOHT1' PUBLIC SERVICE OLDf; 9{1� F Y �IQE-ITS PRd STOCK ISLAND v.E`r WEST, FL 33040 KEV KBIS 4T'S SEX-710N 2 PB3-1M PLANTATION J(EJ LOT$ 1 2 a 24 ED k 11 QR4ng-399 OIR5ag-576 L1Fi7Gg-B71 C7 P CHROKSONU,zeANICBONLY 70DAN 0. FIENFOQUEL CACTAXCCLLEIvTOR PA, BOX ii4lKryWf5T,FLWw41-1179 if PiAtrmted @4 NoW 30. 2012 Dwa 31, 2017 An 31 20ia Feb Al ?U13 Mar 31. —'011 Pvh3wRao $0.00 30.0R 50,00 510.01) N.n0 Appraisal Company of Key West Page 69 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL FLOOD MAP Appraisal Company of Key West Page 70 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL ENGAGEMENT LETTER APPRAISAIT, . OF KEY WE $I J�nua�y �}. �+hJ'_• kcbDc l Crrr7Ce4- F icki r rIll- r Layne Emul: RGhri;l.-a.4an �rfL G�lmuu m 5ubleet: 103 1 4 HuigM- Ch IoaarsrYrrr,d8, FL 3111)(, haffPftoFAx FW&■19 Ke�WI-- ,110, [islaM. Ilaaivessla Mr. car Fgyi IaraM.f+i�i5f+ui�rrc PrwAuan1 to .. . Plearw -rprwJ %wr M&popl 4judinC1t, a71d tt I+$.[.tF Lhe lNa-L VJ LIL1L'11191bit% 171 prk La pf lWl .I. WL. dn.IgnrWnl. TIw apprsls+u inRpeclimp Will k 6die lulvJ uporr mceipl 4 lho pyre' [X ! NW{ anti # ai". 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Ttw; TrirrrmW r -Iwi14 rKK Ic rquiLILr -M. piifthM nw dWTibukd in aynlmnna:r wifficut wriLY, i DINL3cnt of _ "iser, Lu i4 L+ u&l4 b u( "lid& ie, a_tl!l &4w.Itlr jLL1 WA LIMMOMI altifilsulutlan"�ultirwhrapawik''1M.OMfid63001lmikd4 cuptedfrowtiNclmrer l .iligliLIML: In the v.-Pnl Apr+mrsmr i� ca llml rrpori kgIqrthtri fy ov oliicrwisc„ to osffy iu itlM or .dgiw Iieih rqo J61Lp ffic A jipii aal lk"t LIw uiu. 01muL 4guej iL7 ALLY m aLi1dliatw sum Lit 31LI W firer Iw,lr i)WN Aplm wt'++ tutlwl mod c4glarrLarlYj!prcrno. rYIikiniUnl aft Inrq Appraisal Company of Key West Page 72 Summary Appraisal Report 103 Key Heights Dr., Islamorada, FL Tv19. [its+L`ti.l L�riJlu, C�� 3 P'ILY1If4' I: The qF d No Is due E1ilmk caniplo im. I IMME PSI& ddlkL I 0ELM11 dUN dGIAM1134 L I *011 LIW ri'q6fft1 KFLII Wzti19IL st� Slur 00 MAY AlI d WLt tk2l inspwiun° Na sarr wmli� for 481jfwFrvoir IcawJonoIhmitolgw;,AII me. TIonk you kr camhjderjjkg+, F 611TI lO I�TUY P YLNi Its WrViLt FUrgae�Iiclr�saI]L}#kT[1ia�al�raple+ai alrqin I, "PonoArinuT Koy,411224FIpLkrMmur,Suile901, A1s'FRALSAL, C:OM PANY OF, KFY TATST rr°3 Si. CLm_ Cxn.. REIN viomu. No RZ ?164 b,I ALLL:490Ld it Norms ra a a: d ° I]Mc: 11i++LIL °IIIi�,3r—ILTEdMWI— —,i. Appraisal Company of Key West Page 73 Phase II Environmental Survey Prepared by: Matthew Hoffman, E.I. Staff Engineer Reviewed by: Michael Geden, P.G. Senior Geologist PHASE II ENVIRONMENTAL SITE ASSESSMENT Proposed Middle Plantation Key Pump Station 103 Key Heights Drive Plantation Key, Monroe County, Florida Universal Project No. 0540.1300032.0000 May 2, 2013 Prepared on behalf of: Weiler Engineering Corp. 6805 Overseas Highway Marathon, Florida 33050 Attention: Mr. Ed Castle, PE Prepared by: Universal Engineering Sciences, Inc. 5971 Country Lakes Drive Fort Myers, Florida 33901 www.UniversalEngineering.com COA BG33 Signature Signatut —s-- Consultants in: Geotechnical Engineering- Environmental Sciences • Construction Materials Tesli Offices in: Atlanta, GA- Daytona Beach, FL- Fort Myers, FL- Fort Pierce, FL- Gainesville, FL- Jacksonville, FL- Leesburg, City, FL- Orlando, FL- Palm Coast, FL- Panama City, FL- Pensacola, FL- Rockledge, FL- Sarasota, FL- St. Augustine, FL- Van rrr OFFICES IN: UNIVERSAL Atlanta DeBary Daytona Fort Myers Fort Pierce Gains�,ille ENGINEERING SCIENCES ED Jacksonville Leesburg consultants In: Geotechnical Engineering • Environmental Sciences Miami Ocala - Construction Materials Testing - Private Provider & Threshold Inspections Orlando Palm Coast Panama City Pensacola Rockledge Sarasota May 2, 209t�Augustine Tampa West Palm Beach Clermont Mr. Ed Castle, PE Weiler Engineering Corp. 6805 Overseas Highway Marathon, Florida 33050 Reference. Phase li Environmental Site Assessment Proposed Middle Plantation Key Pump Station 103 Key Heights Drive Plantation Key, Monroe County, Florida Universal Project No. 0540.1300032.0000 Dear Mr. Castle: Universal Engineering Sciences, Inc. (UES) has completed the Phase 11 Environmental Site Assessment (ESA) following the American Society for Testing and Materials (ASTM) E 1903-11, the Florida Department of Environmental Protection's (FDEP) Standard Operating Procedures (SOPS) and the scope of work outlined in the Project Agreement between Islamorada, Village of Islands, Florida and Weiler Engineering Corporation for the above referenced site located in Plantation Key, Monroe County, Florida (Appendix A-1: Site Location Map). The purpose of this evaluation was to evaluate the recognized environmental conditions (RECs) identified in the Phase I ESA, dated December 2012 prepared by ARCADIS US, Inc. for the subject property. The identified RECs are as follows: Heavy oil staining is in the absorbent soil material surrounding the waste oil tank. The visibly -stained soils should be removed for proper disposal and confirmatory soil sampling for petroleum compounds and heavy metals should be conducted to confirm removal_ If the staining is found to have penetrated the entire column of absorbent soil and has impacted the ground surface, sampling of the shallow groundwater in this area will be recommended. The property has more than 20 years of use by the Public Works Department. An interview with the owner's representative indicted past road sign manufacturing operations on the property. Evidence of previous paint storage and sign storage were observed. Because of the past industrial use, a potential exists for substances to have been disposed in the facility septic system. Sampling of the shallow groundwater for volatile organic compounds, petroleum compounds and heavy metals in the vicinity of the septic tank and drainfield is recommended. An old motel building exists on the property. Based on the building's age, asbestos - containing materials may be present. Some of the potential asbestos -containing materials observed were in damaged condition. An asbestos assessment is recommended, if the building is scheduled for demolition, the asbestos inspection should be demolition -compliant in accordance with the National Emission Standard for Hazardous Air Pollutants (NESHAP). 5971 Country Lakes Drive • Fort Myers, FL 33905 9 (239) 995-1997 + Fax (239) 313-2347 Based solely on the recommendations provided by ARCADIS US, Inc. outlined above, the collection and laboratory analyses of soil and groundwater samples at key locations of the subject property was performed as part of our Phase II ESA. An asbestos containing building materials survey performed on the onsite buildings is provide under separate cover. Based on results the Phase II ESA activities we conclude the following: Arsenic was reported at a concentration of 4.3 mg/kg in the soil sample obtained at B-1, at a depth of 3 feet below existing grade, which exceeds the Direct Exposure Residential SCTL of 2.1 mg/kg, per Chapter 62-777, FAC for arsenic. At this time, because the soils are located at a depth of around 3 feet below grade, exposure to the soils is currently restricted. Although we believe this arsenic soil impact is isolated to an area of less than 10' by 10', this cannot be fully delineated without additional soil confirmatory sampling_ We appreciate the opportunity to be of service as your environmental consultant on this project and look forward to a continued association. If you have any questions concerning this report or if we may be of any further service, please contact us at mhoffman(�universalengineering.com or 239-995-1997. - Respectfully submitted, Universal Engineering Sciences, Inc. Matthew A. Hoffman, E.l. Staff Engineer MAHlmah 3 cc: Client (email: edreastle@me.com) 1 cc: Mr. Tom Brzezinski — Wade Trim (email only: TBRZEZINSKI@WadeTrim.com) I� LIST OF APPENDICES Appendix A-1 USGS Map Appendix A-2 Sample Location Plan Appendix B Tables Appendix C Groundwater Sampling Logs Appendix D Laboratory Reports and Chain -of -Custody Documentation Appendix E UES General Conditions TABLE OF CONTENTS 1.0 INTRODUCTION...........................................................................................1 2.0 SOIL SAMPLING AND LABORATORY ANALYSIS..............................................................1 3.0 GROUNDWATER SAMPLING AND LABORATORY ANALYSIS .......................................... 2 4.0 CONCLUSIONS AND RECOMMENDATIONS......................................................................3 5.0 LIMITATIONS.......................................................................................................................3 6.0 USER RELIANCE......................................................................4 1.0 INTRODUCTION The purpose of this evaluation was to evaluate the recognized environmental conditions (RECs) identified in the Phase I ESA, dated December 2012 prepared by ARCADIS US, Inc. for the subject property. The identified RECs are as follows: • Heavy oil staining is in the absorbent soil material surrounding the waste oil tank. The visibly -stained soils should be removed for proper disposal and confirmatory soil sampling for petroleum compounds and heavy metals should be conducted to confirm removal. If the staining is found to have penetrated the entire column of absorbent soil and has impacted the ground surface, sampling of the shallow groundwater in this area will be recommended. • The property has more than 20 years of use by the Public Works Department. An interview with the owner's representative indicted past road sign manufacturing operations on the property. Evidence of previous paint storage and sign storage were observed. Because of the past industrial use, a potential exists for substances to have been disposed in the facility septic system. Sampling of the shallow groundwater for volatile organic compounds, petroleum compounds and heavy metals in the vicinity of the septic tank and drainfield is recommended. • An old motel building exists on the property. Based on the building's age, asbestos - containing materials may be present. Some of the potential asbestos -containing materials observed were in damaged condition. An asbestos assessment is recommended. If the building is scheduled for demolition, the asbestos inspection should be demolition -compliant in accordance with the National Emission Standard for Hazardous Air Pollutants (NESHAP). Based solely on the recommendations provided by ARCADIS US, Inc. outlined above, the collection and laboratory analyses of soil and groundwater samples at key locations of the subject property was performed as part of our Phase II ESA. An asbestos containing building materials survey performed on the onsite buildings is provide under separate cover. The soil and groundwater sampling activities were conducted in accordance with the Florida Department of Environmental Protection's Standard Operating Procedures for General Sampling Procedures (FS 1000), Groundwater (FS 2200), Soil (FS 3000) and according to the Cleaning/Decontamination Procedures (FC 1000). 2.0 SOIL SAMPLING AND LABORATORY ANALYSIS On April 10, 2013, UES conducted soil borings (B-1 to B-3) in the vicinity of the onsite used oil AST and (B-4) in the septic drainfield area for the purpose of detecting potential soil impacts associated with the indentified RECs. The borings were advanced below the groundwater table (-10 to 11 feet below ground surface) using a direct push drill rig equipped with a split spoon sampler. Soil samples were collected at 2-foot intervals to around 1 foot below the groundwater table at the boring locations and were screened for visual/olfactory impacts and for organic vapors using an Organic Vapor Analyzer (OVA) equipped with a photo ionization detector (PID) and physical observations (i.e. staining, petroleum odors, free product) were made. The OVA is useful for detecting organic vapors in the head space of a soil container to a lower limit of one part p 1 ID million (ppm). Before screening the soil samples collected at the boring locations, we checked the OVA to ensure proper functioning and then calibrated the instrument. We placed each sample in a 16-ounce jar, filling it approximately half full. The jars were covered with aluminum foil and the head space within the jar was allowed to equilibrate. The sample was then measured by inserting the tip of the OVA through the foil to collect the soil vapor measurement. An unfiltered and a filtered tip was used the OVA analysis. The unfiltered reading is an indicator of the total organic vapor concentration while the filtered reading is an indicator of the methane concentration. The difference between the two readings is an indicator of the petroleum or solvent derived organic vapor concentration. Each soil sample was also inspected for visual and olfactory evidence of contamination. Soil OVA readings above the 0 ppm were detected at several boring locations above the groundwater table. As such, per the scope of work, we obtained one soil sample at the location of boring B-1 at a depth of 3 feet below existing grade (location of the highest OVA reading) for laboratory analysis. The Boring Logs/OVA Field Measurements have been included in Table 1, Appendix B. The soil sample was placed into pre -cleaned laboratory sample containers and sent on ice to ESC Lab Sciences, Inc. (ESC) in Mt. Juliet, Tennessee for laboratory analysis. The boring and soil sample locations are shown on the Sample Location Plan presented in Appendix A-2. The soil sample was analyzed for volatile organic compounds (VOCs) using EPA Method 8260, polynuclear aromatic hydrocarbons (PAHs) using EPA Method 8270 the eight RCRA metals (Arsenic, Barium, Cadmium, Chromium, Lead, Mercury, Selenium and Silver) using EPA Method 6020. Arsenic was reported at a concentration of 4.3 milligrams per kilogram (mgfkg) which exceeds the FDEP Direct Exposure Residential Soil Cleanup Target Level (SCTL) of 2.1 mg/kg per Chapter 62-777, FAC for arsenic. Review of the laboratory analytical report indicated that although detectable concentrations of naphthalene, mercury, barium, cadmium, chromium and lead were observed in the soil samples as indicated on Table 2, the concentrations were below their respective Soil Cleanup Target Levels (SCTLs) per Chapter 62-777, FAC. All other parameters were below their respective laboratory detection limits (BDL), which were sufficient to detect exceedances of SCTLs for each parameter. Copies of the Chain -of -Custody Documentation and Laboratory Reports are attached in Appendix D. Soil analytical data is presented in Appendix B, Table 2. 3.0 GROUNDWATER SAMPLING AND LABORATORY ANALYSES On April 10, 2013 UES collected two (2) surficial groundwater samples at the location of the onsite waste oil AST and the septic drainfield area, W-1 and W-2, respectively, using a direct push drilling rig. The groundwater samples obtained from the geoprobe sampling were placed into pre -cleaned laboratory sample containers, and sent on ice to ESC in Mt. Juliet, Tennessee for laboratory analysis The location of the groundwater samples are shown on the Site Plan in Appendix A-2. The groundwater samples were obtained through the drill rod of a direct -push rig using a 4-foot screen. The groundwater table at the sample locations was generally encountered at a depth o around 9 feet below land surface (bls). The screen was generally set between depths of 8 to 1 tD feet bis for the surficial groundwater samples. The groundwater from the well screen was purged using a peristaltic pump and per the scope of work, field sampling parameters (turbidity, pH, conductivity, temperature and dissolved oxygen) were measured during purging. Following the purging operations, groundwater was collected using a peristaltic pump. Copies of the Groundwater Sampling Logs are attached in Appendix C. Groundwater samples W-1 and W-2 obtained from the subject property were analyzed for VOCs using EPA Method 8260, PAHs using EPA Method 8270sim the eight RCRA metals (Arsenic, Barium, Cadmium, Chromium, Lead, Mercury, Selenium and Silver) using EPA Method 6020. 3.1 Geoprobe Groundwater Laboratory Results Review of the laboratory analytical report indicated that although detectable concentrations of arsenic, barium, chromium, selenium, chloroform, anthracene, acenaphthene, benzo(a)anthracene, naphthalene, and 2-methylnaphthalene were observed in the groundwater samples as indicated on Tables 3 and 4, the concentrations were below the GCTLs. All other parameters were below their respective laboratory detection limits (BDL), which were sufficient to detect exceedances of Groundwater Cleanup Target Levels (GCTLs) per Chapter 62-777, FAC for each parameter. Copies of the Chain -of -Custody Documentation and Laboratory Reports are attached in Appendix D. Groundwater analytical data is presented in Appendix B, Tables 3 and 4. 4.0 CONCLUSIONS AND RECOMMENDATIONS Based on the findings of this Phase II Environmental Site Assessment, we present the following conclusions and recommendations: Arsenic was reported at a concentration of 4.3 mg/kg in the soil sample obtained at B-1, at a depth of 3 feet below existing grade, which exceeds the Direct Exposure Residential SCTL of 2.1 mg/kg, per Chapter 62-777, FAC for arsenic. At this time, because the soils are located at a depth of around 3 feet below grade, exposure to the soils is currently restricted. Although we believe this arsenic soil impact is isolated to an area of less than 10' by 10', this cannot be fully delineated without additional soil confirmatory sampling. 5.0 LIMITATIONS The findings of this report represent our professional judgement; UES offers no other warranty, express or implied. These findings are relevant to the dates of our site work and the information cited herein. This report should not be relied upon to represent site conditions on other dates or at locations other than those specifically cited within the report. Universal Engineering Sciences, Inc. can accept no responsibility for interpretations of these data made by other parties. N u 6.0 USER RELIANCE This report is intended for the sole use of Weiler Engineering Corp. and Wade Trim. Its contents may not be relied upon by other parties without the explicit written consent of UES. This is not a statement of suitability of the property for any use or purpose. In accepting this report, all parties herein mentioned agree to the General Conditions of the Agreement between Weiler Engineering Corp and UES on March 29, 2013. A copy of the General Conditions is contained in Appendix E. 4 I� I APPENDIX A UNIVERSAL ENGINEERING SCIENCES PROPOSED MIDDLE PLANTATION KEY VACUUM PUMP STATION 103 KEY HEIGHTS DRIVE PLANTATION KEY, MONROE COUNTY, FLORIDA SITE LOCATION PLAN DRAWN BY: Sandra.0 DATE: APRIL 2013 THECKED BY: M.H DATE: APRIL 2013 SCALE: NOT TO SCALE PROJECT NO: U540.1300032.DOD0 I REPORT NO: APPENDIX: A-1 E _ � y 4 e � - .rx P� ✓r � � y �� wax .. e'a DA ASS, s $eDtic . Draln Fleld N LEGEN a GEOPROBE SAMPLE LOCATION 5 UNIVERSAL ENGINEERING SCIENCES PROPOSED MIDDLE PLANTATION KEY VACUUM PUMP STATION 103 KEY HEGHTS DRIVE PLANTATION KEY, MONROE COUNTY, FLORIDA SAMPLE LOCATION PLAN DRAWN BY: S.0 DATE: APRIL 2013 CHECKED BY: M.H DATE: APRIL 2013 SCALE: NOT TO SCALE PROJECT N0: 0540.1300032.0000 1 REPORT NO: APPENDIX: A-2 APPENDIX B C) C) w N E M E �� 7 lll 0 p G] •L (O crl r_< a)o UJ � Lo a) 0 L L En w E ch Z O O +' e^ r -Z- U c d N d H U) W N � O O lil Ol Ql N N N N Q1 tll O O N N � Q) Q) N N N U) N N N N N N N N N N N N N N fq -0 "0 -0 _0 -O -O _0 -u 'O 'O 'O -0 _0 -0 -0-0 a 'O C C C C C C C C C C C C C C C C C it m (tl (m In [0 (U (U (6 (6 N (U N f[S -�G .X Y _IX U U U U U Y Y `-c U U U Y Y �C Y Y y U U U U U Y Y �C Y -he U U U U U N .O V O 0 0L 0L 0 00 OL D 0L 0 0L 0 0 0 0L.. 0 0 0L 0L C OL O L L L L L L- L L L 1. Ill w N N N L6 N (n N N N N N N N N 0 3 m m m m m 3 m m m m w m m m a,w m w m O O(D 0(D(DU' (D(D CD 0CD CD (D m J J J J J m J J J m .J J J J -j J J J J J al o 0-Lri 0 s- m cn � �°�°00000aoa0000 Z m LO aioii- Cl v W N M NT N � c -o O (1) M C4 LSD 00 ( ) r L � Q (� (� N (� aD N 1 i 1 1 I � I I I 1 1 I I 1 I I I I I I I I I 1 I I 1 [ f I 1 CL U IL '-' r- l(� r M CO r � O'mcDr—°w CN OD o(D Q M r ti� v) CD°�° C) 0 0 0 C) 0 0 C) C) CD CD C)� N Q�Mu�co�r Q m r N LO M LD (- Cr) T LO M In r- U) CO LO I- 0 r in M in E` 0) LL M M co (7 41 U O C) O p (6 N N N N N ❑ O Q C)O p ( v v v T v O) ,-- car M V. � m c5 of cfl b m w U m cn O m E J " -0 C- ro o N N m (D c _ J E \ \ E / \ 2 2 % 7 2 g 7 E \ 6 / \ \ 0 3 G @ u e m ° 7 2 =� £ U \ \ \ § ® / (V cu / \ 0 f 2 a)P- of t-- 2 0 q� 2 E % / \ $ ± _ e E E % / b co m -0 / En _U \0 /j7 /E / k = t CO a)& -0a ƒ / f ." —ffi , \ E % 2 \ / 2 5 % S o G=%_ iD / ± w_ m E $ \ $ f o % u ƒ m % \ ) 0 U ° %.2 E f q § ¢ » _ � � / \ f / m ' x % § 2 '02m\02 CM a u $R m t E 3:tEo%%20 o 0 „ a) ° n @ /%EI��$ 2 E f 2 0 2 b%}/ In § 3 Z 2 � 2 � a /_ � � J E C ± / % CD§ o § $ o � �gU T.- 0 °==9§ E = m o e aEC: 2 k /km / 0 \ 2 f E E \ $ / 2 / ) -j = 2 e cm co 9 y o 7 =&CN - E \ %$ / 5 � e ?? $ Ica e � 2 a --moo 2 wad ? 2 9 Q / E / g Z) Z o[ �oowo n= ¥w� \� as 7 G\- _ o » R CD ƒ z e fa m �--� � r o E \§ /b eel 2§ moo«% ##«a � 66� In C)U,j\ ƒ \ % / ZZ $ ± \\�O � o o � �^ kk E $ § \ S § / % $ R \ (V � k / O \ / /ƒ �) « a) \f \ :3 k o k �o § 7 /k �kc m �0 Co «f� E / E .r ° - @f®\ 77)fo $ k I 4 a � @ E / LL f % m §// o « > m mCO �/m�� I $ / ƒ k I c § / / 2 o m u � � \ 0 & ct 2 E o E \ 2 I o <« f f _ \/ E c 7 C _ & > / - a <\ E f »§q CD # � E o R @ - 9 = o / m C3 6 / § k E § � kD S� cu » CD ff o : D o a 2 § 6 b 2 e (D o aen�o _\� & _ [ a m «' CD®� g ~ a a / / \ \ any«: m n m /\ � /\BCD � 3 O � W E / d k APPENDIX C Form FD 9000-24 GROUNDWATER SAMPLING LOG SITE SITE NAME: Proposed Middle Plantation Key Pump Station I LOCATION: 103 Key Heights Drive, Plantation Key, Monroe County, FL WELL NO: W-2 SAMPLE ID: W-2 DATE: 04110113 PURGING DATA WELL DIAMETER (inches): 0.75 TUBING WELL SCREEN INTERVAL STATIC DEPTH PURGE PUMP TYPE DIAMETER (inches): DEPTH: 8 feet to 12 feet TO WATER (feet): -9 ft OR BAILER: Peristaltic Pump WELL VOLUME PURGE: 1 WELL VOLUME = (TOTAL WELL DEPTH - STATIC DEPTH TO WATER) X WELL CAPACITY (only fill out if applicable) = 12 feet- 9 feet) X 0.02 allonslfoot = 0.04 gallons EQUIPMENT VOLUME PURGE: 1 EQUIPMENT VOL. = PUMP VOLUME + (TUBING CAPACITY X TUBING LENGTH)+ FLOW CELL VOLUME (only fill out if applicable) = gallons + ( gallons/foot X feet} + gallons = gallons INITIAL PUMP OR TUBING DEPTH IN WELL (feet): 11 FINAL PUMP OR TUBING DEPTH IN WELL (feet): 11 PURGING INITIATED AT. 12:56 PURGING TOTAL VOLUME ENDED AT: 1:25 PURGED (gallons): 1 TIME VOLUME PURGED (gallons) CUMUL. VOLUME PURGED (gallons) PURGE RATE I (gpm) DEPTH TO WATER (feet) pH (standard units} TEMP. (°C) COND. (circle units) µmhoslcm or µslcm DISSOLVED OXYGEN {circle units} mg1L or saturation TURBIDITY (NTUs) COLOR (describe) ODOR (describe) 1:11 0.5 0.5 b.03 - 7.24 29.9 14.7 mSlcm 1.32 189 Cloudy None 1:16 0.15 0.65 0.03 - 7.24 29.3 14.6 1.25 80 Cloudy None 1:22 0.18 0.83 0.03 - 7.07 29.2 14.8 1.24 980 cloudy None WELL CAPACITY (Gallons Per Foot): 0.75" = 0.02; 1" = 0.04; 1.25" = 0.06; 2" = 0.16; 3" = 0.37; 4" = 0.65; 5" = 1.02, 6" = 1 A7; 12" = 5.88 TUBING INSIDE DIA. CAPACITY (Gal./Ft.): 118" = 0.0006, 3116" = 0.0014; 114" = 0.0026; 5116" = 0.004: 318" = 0.006; 112" = 0.010; 518" = 0 016 PURGING EQUIPMENT CODES: B = Bailer; BP = Bladder Pump; ESP = Electric Submersible Pump; PP = Peristaltic Pump; O = Other (specify) SAMPL TA SAMPLED BY (PRINT)1 AFFILIATION: Matthew Hoffman/UES SAMP. LZS' G r SAMPLING INITIATED AT: 1.: 0 SAMPLING ENDED AT: 1:50 PUMP OR TUBING DEPTH IN WELL (feet): 11.0 TUBING `MATERIAL CODE: PETS FIELD -FILTERED: Y N Filtration EquipmentTyp . FILTER SIZE: µm FIELD DECONTAMINATION: PUMP Y N TUBING Y N r laced) DUPLICATE: Y N SAMPLE CONTAINER SPECIFICATION SAMPLE PRESERVATION INTENDED ANALYSIS AND/OR METHOD SA G EQUIPMENT CODE SAMPLE PUMP FLOW RATE mL per minute SAMPLE ID CODE # CONTAINERS MATERIAL CODE VOLUME PRESERVATIVE USED TOTAL VOL ADDED 1N FIELD mL FINAL H W-2 2 AG 40 ml HCL - 8260 - VOAs SM W-2 3 AG 40 ml - - -- 8270 - PAHs APP W-2 2 HDPE 500 ml HNO3 5 mi < 2 RCRA 8 metals APP REMARKS: Geoprobe sampling MATERIAL CODES: AG = Amber Glass; CG = Clear Glass; PE = Polyethylene; PP = Polypropylene; S = Silicone; T = Teflon; O = Other (Specify) SAMPLING EQUIPMENT CODES: APP = After Peristaltic Pump; B = Bailer; BP = Bladder Pump; ESP = Electric Submersible Pump; RFPP = Reverse Flow Peristaltic Pump; SM = Straw Method (Tubing Gravity Drain); O = Other (Specify) NOTES: 1. The above do not constitute all of the information required by Chapter 62-160, F.A.C. 2. STABILIZATION CRITERIA FOR RANGE OF VARIATION OF LAST THREE CONSECUTIVE READINGS (SEE FS 2212. SECTION 3) pH: + 0.2 units Temperature: + 0.2 °C Specific Conductance: ± 5% Dissolved Oxygen: all readings < 20% saturation (see Table FS 2200-2); optionally, + 0.2 mg/L or ± 10% (whichever is greater) Turbidity; all readings < 20 NTU: optionally ± 5 NTU or + 10% (whichever is greater) Revision bate: February 12, 2009 Form FD 9000-24 GROUNDWATER SAMPLING LOG [ SITE SITE NAME: Proposed Middle Plantation Key Pump Station LOCATION: 103 Key Heights Drive, Plantation Ke , Monroe Count , FL i WELL NO: W-1 SAMPLE ID, W-1 DATE: 04/10113 PURGING DATA WELL DIAMETER (inches), 0.75 TUBING DIAMETER (inches): WELL SCREEN INTERVAL DEPTH: 8 feet to 12 feet STATIC DEPTH TO WATER (feet): -1Oft PURGE PUMP TYPE OR BAILER: Peristaltic Pump WELL VOLUME PURGE: 1 WELL VOLUME = (TOTAL WELL DEPTH - STATIC DEPTH TO WATER) X WELL CAPACITY (onty fill out if applicable) = 12 feet - 10 feet X 0.02 gallons1fool = 0.04 gakons EQUIPMENT VOLUME PURGE: 1 EQUIPMENT VOL. = PUMP VOLUME +(TUBING CAPACITY X TUBING LENGTH)+ FLOW CELL VOLUME (only fill out if applicable) = gallons + { gallons/foot X feet) + gallons = gallons INITIAL PUMP OR TUBING DEPTH IN WELL (feet): 11 FINAL PUMP OR TUBING DEPTH IN WELL (feet): 11 PURGING INITIATED AT: 11:45 PURGING ENDED AT: 12AC TOTAL VOLUME PURGED (gallons): 5 TIME VOLUME PURGED (gallons) CUMUL. VOLUME PURGED (gallons) PURGE RATE (gprn) DEPTH TO WATER (feet) pH (standard units) TEMP. o (C) COND. (circle units) µmhoslcm or µSlcm DISSOLVED OXYGEN (circle units) mg/L or /a saturation TURBIDITY (NTUs) COLOR (describe) ODOR {describe) 11:50 1 1 0.2 7.19 28.7 13.9 mSJcm 1.25 371 Milky None 11:58 1.6 2.6 0.2 I 7.16 29.1 14.3 1.01 631 Milky None 12:03 1 3.6 0.2 7.15 28.7 14.3 1.00 47 None None 12:08 1 4.6 0.2 - 7.18 28.5 14.3 1 A2 155 None None WELL CAPACITY (Gallons Per Foot): 0.75" = 0.02; 1" = 0.04; 1.25" - 0.06; 2" = 0.16; 3" = 0.37; 4" = 0.65; 5" = 1.02; 6" = 1.47; 12" = 5.88 TUBING INSIDE DIA. CAPACITY (Gal,/Ft,): 118" = 0.0006: 3116" = 0.0014; 114" = 0.0026; 5116" = 0.004: 318" = 0.006; 112" = 0,010; 518" = 0.016 PURGING EQUIPMENT CODES: B = Bailer; BP = Bladder Pump; ESP = Electric Submersible Pump; PP = Peristaltic Pump; O = Other (Specify) SAMPLIN-G DATA SAMPLED BY (PRINT) I AFFILIATION: Matthew HoffmarslUESTINITIATED SAMPLE SiGNATU SAMPLING AT: 1 15 SAMPLING ENDED AT: 12:25 PUMP OR TUBING DEPTH IN WELL (feet): 11.0 TUBING FIELD -FILTERED: Y N MATERIAL CODE: PETS Filtration Equipment Typ FILTER SIZE: µm FIELD DECONTAMINATION: PUMP Y N TUBING Y N r aced) DUPLICATE: Y N SAMPLE CONTAINER SPECIFICATION SAMPLE PRESERVATION INTENDED ANALYSIS ANDIOR METHOD SAMPIJNG EQUIPMENT CODE SAMPLE PUMP FLOW RATE mL er minute SAMPLE I CODE it CONTAINERS MATERIAL CODE VOLUME PRESERVATIVE USED TOTAL VOL ADDED INFIELD mL FINAL pH W-1 2 AG 40 ml HCL -- -- 8260 - VOAs SM W-1 3 AG 40 ml - -- -- 8270 - PAHs APP W-1 2 HDPE 500 ml HNO3 5 ml < 2 RCRA 8 metals APP REMARKS: Geoprobe sampling MATERIAL CODES: AG = Amber Glass; CG = Clear Glass; PE = Polyethylene; PP = Pofypropylene: S = Sikicone; T = Teflon; O = Other (Specify) SAMPLING EQUIPMENT CODES: APP = After Peristaltic Pump: B - Bailer; BP = Bladder Pump; ESP = Electric Submersible Pump; RFPP = Reverse Flow Peristaltic Pump; SM = Straw Method (Tubing Gravity Drain); O = Other (Specify) NOTES: ES: 1. The above do not constitute all of the information required by Chapter 62-160, F.A.C. 2. STABILIZATION CRITERIA FOR RANGE OF VARIATION OF LAST THREE CONSECUTIVE READINGS SEE FS 2212 SECTION 3 PH: ± 0.2 units Temperature: + 0.2 °C Specific Conductance: + 5% Dissolved Oxygen: all readings < 20% saturation (see Table FS 2200-2); optionally, ± 0.2 mg/L or + 109% (whichever is greater) Turbidity: all readings < 20 NTU; optionally ± 5 NTU or + 10% (whichever is greater) Revision Date: February 12, 2009 APPENDIX D JOESC L•A13 S•C-I•E•TV•C E•5 _�0£5 ;,ebancn Rd. Mc. Jul_et, TF 3''=22 75F-5858 =-53G-7e�-58�9 rat rG15; "'56-56`9 Tar. :.D. 6-06_92E5 Mr. Mathew Hoffman Universal Eng. Sciences -Ft 5971 Country Lakes Drive Fort Myers, FL 33905 Myers, FL Report Summary Tuesday April 23, 2013 Report Number: L630257 Samples Received: 04/12/13 Client Project: 0540.1300032.0006 Description: Plantation Ke The analytical results in this report are based upon information supplied by you, the client, and are for your exclusive use. 1f you have any questions regarding this data package, please do not hesitate to call. Entire Report Reviewed By: ii4 Hunt ESC Representative Laboratory Certification Numbers A2LA - 1461-01, AIHA - 100789, AL - 40660, CA - 01157CA, CT - PH-0197, YL - E87487, GA - 923, IN - C-TN-01, KY - 90010, KYJST - 0016, NC - ENV375/DW21704/B10041, ND - R-140. NJ - TN002, NJ NELAP - TN002, SC - 84004, TN - 2006, VA - 460132, WV - 233, AZ - 0612, MN - 047-999-395, NY - 11742, WI - 998093910, NV - TN000032011-1, TX - T104-704245-11-3, OK - 9915, PA - 68-02979, IA Lab #364 AccredLLatioe ie only applicable to :he test methods spec_`iec or. each scope of accreditation held by ESC Lab Sc_erces. Note: -he use of fire preparatory EPA Method 3511 is not approved or endorsed by the CA D .P. Tnis repel= may not be reproduced, ey.cept in full, without wri`_ten approval from ESC Law Sciences, Where appl_cable, samplino condLcted by ZSC is performec per Guidance provided in .laboratory standard operat_nc procedures: C60302, 060303, and 060304. Page 1 of 9 OESC 1 Mr. Matthew Hoffman Universal En9. Sciences -Et. Myers, 5971 Country Lakes Drive Fort Myers, FL 33905 Date Received Descriation Sample ID Collected By Collec_ion Date April 12, 2013 Plantation Key B-1 Matt Hoffman 04,110/13 11:35 REPORT OF ANALYSIS April 23, 2013 ESC Sample # �ebanor Rd. ��_ EE-SE�6 90G-'i6"-SH59 :ax i.C. 62--U8"_SZAG i94 L630257-01 S1te ID P--PNTATT4N KEY, EL Project # 0540.1300032.0006 Parameter Dry Result MDL RDL Units Qualifier Method Date Dil. Total Solids 73.6 0.0333 0.100 2540 G-2 04/17/13 1 Mercury 0.013 0.0014 0.027 mg/kg I 7471 04/15/13 1 Arsenic 4.3 0.32 1.4 mg/k_g 601OB 04/20/13 1 Barium 7.2 0.085 0.34 mg/kg 601OB 04/20/13 1 Cadmium 0.26 0.035 0.34 mg/kg I 601OB 04/20/13 1 Chromium 3.9 0.070 0.68 mg/kg 601OR 04/20/13 1 Lead 19 0.095 0.34 mg/kg 6010B 04/20/13 1 Selenium 0.37 0.37 1.4 mg/kg U 6010B 04/20/13 1 Silver 0.28 0.28 1.4 mg/kg UO 6010B 04/20/13 2 Volatile Aromatics Benzene 0.00027 0.00027 0.0014 mg/kg U 8260B 04/13/13 1 chlorobenzene 0.00021 0,00021 0.0014 mg/kg U 82603 04/13/13 1 1,2-Dichlorobenzene 0.00030 0.00030 0.0014 mg/kg U 8260B 04/13/13 1 1,3-Dichlorobenzene 0.00024 0.00024 0.0014 mg/kg U 8260B 04/13/13 1 1,4-Dichlorobenzene 0.00022 0.00023 0.0014 mg/kg U 8 2 6 0 E 04/13/13 1 Ethylbenzene 0.00030 0.00030 0.0014 mg/kg U 8260B 04/13/13 1 Methyl tert-butyl ether 0.00021 0.00021 0.0014 mg/kg U 8260B 04/13/13 1 Toluene 0.00043 0.00043 0.006E mg/kg U 8260B 04/13/13 1 Xylenes, Totai C.00070 0.00070 0.0041 mg/kg U 8260B 04/13/13 1 Volatile Hydrocarbons Brcmodichloromethane 0.00025 0.00025 0.0014 mg/kg U 8260B 04/13/13 1 Bromoform 0.00042 0.00042 0.0014 mg/kg U 8260B 04/13/13 1 Bromomethane C.0013 0.0013 0,0068 mg/kg U 8260B 04/13/13 1 Carbon tetrachloride 0.00C33 0.00033 0,0014 mg/kg U 8260B 04/13/13 1 Chlorodibromomethane O.00037 0.00037 0.0014 mg/kg U 826UB 04/13/13 1 Chloroethane 0.00095 0.00095 0.0068 mg/kg U 92608 04/13/13 1 2-Chlorcethyl vinyl ether 0.0023 0.0023 0.066 mg/kg U 8260B 04/13/13 1 Chloroform 0.00C23 0.00023 0.0068 mg/kg U 8260B 04/13/13 1 Chloromethane 0.00038 0.00038 0.0034 mg/kg U 8260B 04/13/13 1 Dichlorodifluoromethane 0.00071 0.00071 0.0068 rr,g/kg U 8260E 04/13/13 1 1,1-Dichloroethane O.00C20 0.00020 0.0014 mg/kg U 8260B 04/13/13 1 1,2-Dichloroethane 0.00026 0.00026 0.0014 mg/kg U 8260B 04/13/13 1 1,1-Dichloroethene 0.00030 0,00030 0.0014 mg/kg U 8260B 04/13/13 1 cis-1,2-Dichloroethene 0.00024 0.00024 U.OU14 mg/kg U 8260B 04/13/13 1 trans-1,2-Dichloroethene 0.00026 0,00026 0.0014 mg/kg U 8200B 04/13/13 1 1,2-Dichloropropane 0.00036 0,00036 0.0014 mg/kq U 8260B 04/13/13 1 cis-1,3-Dichloropropene 0.00026 0.00026 0.0014 mg/kg U 8260B 04/13/13 1 trans-1,3-Dichloroprapene 0.00027 0.00027 0.O014 mg/kg U 6260B 04/13/13 1 Methylene Chloride 0.0010 0,0010 0.0066 mg/kg U 8260B 04/13/13 1 1,1,2,2-Tetrachloroethane 0.00C36 0.00036 C.0014 rr�g/kg U 8260B 04/13/13 1 Tetrachloroethene 0.00028 0.00028 0.0014 mg/kq U 6200B 04/13/i3 1 Page 2 0£ 9 REPORT OF ANALYSIS Mr. Matthew Hoffman Universal Eng. Sciences -Ft. Myers, 5971 Country Lakes Strive Fort Myers, FL 33905 Gate Received April 12, 2013 Description - Plantation Key Sample ID B-= Ccllected By Matt Hoffman Collection Date 04/10/13 11:35 =Jv`� Lenanon Rd. Jul -'et' TN 37-32 zx r61 ) '75f'1-5839 .az =.D. 6`,-961 f 289 April 22, 2013 ESC Sample # : L630257--01 Site ID PLANTATION KEY, FL Project # : 0540.1300032.0006 Parameter Dry Result MDL RDL units Qualifier Method Date U_1. 1,1,1-Trichloroethane 0.00029 0,00029 0.0014 mg/kg U 82660B 04/13/13 1 1,1,2-Trichloroethane 0.00028 0.O002B 0.0014 mg/kg U 6260B 04/13/13 1 Trichloroethane 0-00028 0.0002E 0.0014 mg/kg U 8260R 04/13/13 1 Trichlorofluoromethane 0.00038 0.0003B 0.0068 mg/kg U 8260B 04/13/13 1 Vinyl chloride 0.00029 0.00029 0.0014 mg/kg U 8260B 04/13/13 1 Surrogate Recovery Toluene-d8 102. % Rec. 8260E 04/13/13 1 Gihromofluoromethane 95.5 � Rec. 8260E 04/13/13 1 a, a, a-Trifluorotoluene 9i.8 i Rec. 8260E 04/13/13 1 4-Bromofluorober.zene 9B.6 s Rec. 8260B 04/13/13 1 Po"_ynuclear Aromatic Hydrocarbons Anthracene Acenaphthene Acenaphthylene Benzo(a)anthracene Ber-zo(a)pyrene Benzo(b)fluoranthene Benzo(g,h,i)perylene Benzo(k)fluoranthene Chry8ene Dibenz(a,h)anthracene Fluoranthene Fluorene Indeno(1,2,3-cd)pyrene Naphthalene Phenanthrene Pyrene 1-N,ethylnaphthalene 2-Methylnapbthalene 2-Chloronaphthalene Surrogate Recovery Nitrobenzene-d5 2-Fluorobiphenyl p-Terpheriyl-d14 0.00060 0.00060 0.0082 mg/kg U 8270C-SI 04/15/1-3 1 0.0006C 0.00060 0.0062 mg/kg U 8270C-SI 04/15/13 1 0.0006C 0.00060 0.0082 mg/kg U 8270C-SI 04/15/13 1 0.00060 0.00060 0.0082 mg/kg U 8270C-SI 04/15/13 1 O.00060 0.00060 0.CC82 mg/kg U 8270C-SI 04/15/13 1 0,00060 0.00060 0.0082 mg/kg U 8270C-sI 04/15/13 1 0.0006C 0.00060 0.0082 mg/kg U 8270c-SI 04/15/13 1 0.00060 0.00060 0.0082 mg/kg U 8270C-Si 04/15/13 1 0.00060 0.00060 0.0082 mg/kg U 6270c-SI 04/15/13 1 0,00060 0.00060 0.0082 mg/kg U 8270C-SI 04/15/13 1 0.00060 0.00060 0.0082 mg/kg U 8270C-si 04/15/13 1 0.00060 0.00060 0.0062 mg/kg U B270C-ST_ 04/15/13 1 0.00060 0.00060 0.0062 mg/kg U 8270C-si 04/15/1-3 1 0.0030 0.0020 0.027 mg/kg I 8270C-SI 04/15/13 1 0.00060 0.00060 O.00B2 mg/kg U 8270C-SI 04/15/13 ". 0.00060 0.00060 0.0062 mg/kg U 8270C-SI 04/15/13 1 0.0020 0.0020 0,02-1 mg/kg U 6270C-SI 04/15/13 '_ 0.0020 0.0020 0.027 mg/kg U 8270C-Si- 04/15/13 1 0.0020 0.0020 0.027 mg/kg U 8270C-SI 04/15/13 1 112. % Rec. 8270C-SI 04/15/13 1 100. % Rec. 8270C-SI 04/15/13 1 103. �. Rec. B270C-SI 04/15/13 1 Results listed are dry weight basis. U = ND (Not Detected) MDL = Minimum Detection- Limit = LOD - TRRP SDL, RDL = Reported Detection Limit = LOQ = PQL = EQL = TRRP M Note: This report shall not be reproduced, except in full, without the written approval from ESC. The reported analytical results relate only to the sample submitted Reported: 04/23/13 16:46 Printed: 04/23/13 16:47 Page 3 of 9 _21c5 Lenanpr- M=. iL1iet, TN Rd. -22 756-5858 OESC "-500-'ii,7-5055 =ar. (E15;7�6-5555 t-A-B 5•C•I•E-N,C E•5 _a.. _.C. E2-0614289 WIRE - • _5'G REFDRT OF ANALYSIS Mr. Matthew Hof€mar. April 23, 2013 Universal Eng. Sciences -Ft. Mvers, 5971 Country La?es Drive Fort Myers, FL 33905 ESC Sample # L630257-02 Date Received April 12, 2013 Description Plantation Key Swte ID PLANTATION KEY, FL Sample ID W-1 Project # 0540.1300032.0006 Collected By Matt Hoffman Collection Date C-4/10/13 12:15 Parameter Result MDL RDL Units 4ualifier Me -nod Prep Analyze Dil Mercury 0.04E 0,049 0.20 ug/1 U 7470A 04/12/13 04/13/13 1 Arsenic 9.2 6.5 20, ug/i I 6010B 04/17/13 04/23/13 1 Barium 11, '_.7 5.0 ug/1 6010B 04/17/13 04/23/13 1 Cadmium 0.70 0.70 5.0 ug/1 U 6010B 04/17/13 09/23/13 1 Chromium 3.3 1.4 10. ug/1 I 6010E 04/17/13 04/23/13 1 Lead 1.9 1.9 5.0 ug/1 U 6010E 04/17/13 04/23/13 i Selenium 35. 7.4 20. ug/l 6010B 04/17/13 04/23/13 i Silvez 2.8 2.8 10. ug/l U 6010B 04/17/13 04/23/13 _ Volatile Aromatics Benzene 0.33 0.33 1.0 ug/l Ti 62nOB 04/12/13 04/13/13 Chlorcbenzene 0.35 0.35 1.G ug/1 U 8260B 04/12/13 04/13/13 _ 1,2-Dichlorobenzene 0.35 0.35 1.0 ug/l U 8260B 04/12/13 04/13/13 _ 1,3-Dichlorobenzene 0.22 0.22 1.0 ug/1 i] 8260E 04/12/13 04/13/13 i 1,4-Dichlorobenzene 0.27 0.27 1.0 ug/l U 8260E 04/12/13 04/13/13 = Ethylberzene 0.38 0.38 1.0 ug/1 U 826CB 04/12/13 04/13/13 Methyl tort -butyl ether 0.37 0.37 1.0 ug/1 U 8260B 04/12/13 04/13/13 Toluene 0.78 0.78 5.0 ug/1 U 8260B 04/12/13 04/13/13 Y.ylenes, Total 1.1 1.1 3.0 ug/1 U 8260E 04/12/13 04/13/13 _ Volatile Hydrocarbons Bromodichloromethane 0.38 0.38 1.0 ug/1 U 8260B C4/12/13 04/13/13 _ Bromoform 0.47 0.47 1.0 ug/l U 8260E 04/12/13 04/13/13 1 Bromomethane 0.87 0.87 5.0 ug/l U 8260B 04/12/13 04/13/13 Carbon tetrachloride 0.32 0.38 1.0 ug/l U 6260E 04/12/13 04/13/13 1 Chlozodibromomethane 0.33 0.33 1.0 ug/l U 62660E 04/12/13 04/13/13 _ Chloroethane 0.45 0.45 5.0 ug/l U B260E 04/12/13 04/13/13 _ 2-Chloroethyl vinvi ether 3.0 3.0 50. ug/l U 8260E 04/12/13 04/13/13 _ Chloroform 0.32 0.32 5.0 ag/1 U 8260B 04/12/13 04/13/13 Chloromethane 0.2E 0.28 2.5 ug/1 U 6260B 04/12/13 04/13/13 _ Dichlorodifluoromethane 0.55 0.55 5.0 ug/1 U 8260E 04/12/13 04/13/13 1,1-Dichlorocthane 0.26 0.26 1.0 ug/1 U 8260B 04/12/13 04/13/13 1,2-Dichloroethane 0.36 0.36 1.0 ug/l U 826CB 04/12/13 04/13/13 _ 1,1-Dichloroethene 0.40 0.40 1.0 ug/l U 8260B 04/12/13 04/13/13 1 cis-1,2-Dichloroethene 0.26 0.26 1.0 ug/l U 6260B 04/12/13 04/13/13 trans-1,2-Dichicroet:zene 0.40 C.40 1.0 ug/l U 8260B 04/12/13 04/13/13 1 1,2-Dichloropropane 0,31 0.31 1.0 ug/1 U 8260B 04/12/13 04/13/i3 1 cis-1,3-Dichloropropene 0.42 0.42 1.0 ug/1 U 8260B 04/12/13 04/13/13 1 trans-1,3-Dichloropropene 0.42 0.42 1.0 Ug/1 U 6260E 04/12/13 04/13/13 1 Methylene Chloride 1.0 1.0 5.0 ug/l U 8260B 04/12/13 04/13/13 1 1,2,2-Tetrachioroethane 0.50 0.58 1.0 Ug/1 U 8260B 04/12/13 C4/13/13 1 Tetzachloroethene 0.37 0.37 1.0 ug/l U 8260E 04/12/13 04/13/13 1 = 1,1-Trichloroethane 0.32 0.32 1.0 ug/l U 8260B 04/12/13 04/13/13 i -2 ,2-Trichloroethane 0.38 0.36 i.0 ug/1 U 8260B 04/12/13 04/13/13 1 Edge 4 of 9 JOESC L•A-B S•C•f-E•N•C E•S Mr. Matthew Hoffman Universal Eng. Sciences -Ft. Myers, 5971 Country Lakes Drive For- Mvers, FL 33905 Date Received April 12, 2013 Description Plantation Key Sample ID w-1 Collected By Collection Date Ma-t Hoffman 04/10/13 12:15 REPORT OF ANALYSIS Lenanon Rd. M=. i,___ TN .3,--- �6i�i ^jo-5876 to Y. : El i I 7Sfi -S�3 J a, 7.D. E2-08t62BG s. ,9-0 April 22, 2013 ESC Sample # : L630257-02 Site ID I PLANTATION KEY, FL Project # : 0540.1300032.0006 Parameter Result MDL RDL Units Qualifier Method Prep Analyze Dil. Trichloroethene C.40 0.40 1.0 ug/1 U 8260B 04/12/13 04/13/13 1 Trichlorofluoromethane 1.2 1.2 5.0 ug/i U 6260E 04/12/13 04/13/13 1 Vinyl chloride 0.2E 0.26 1.0 ug/1 U 8260B 04/12/13 04/13/13 1 Surrogate Recovery 'toluene-d8 102. % Rec. 8260E 04/12/13 04/13/13 1 DibromofIuoromethane 102_ % Rec. 8260E 04/12/13 04/13/13 1 4-Bromofluorobenzene 99.8 % Rec. 8260B 04/12/13 C4/13/13 1 Polynuclear Aromatic Fydrocarbons Anthracene 0.0076 0.0076 0.050 ug/1 U 6270C-S 04/14/13 04/15/13 1 Acenaphthene 0.00B2 0.0062 0.050 ug/1 U 8270C-S 04/14/13 04/15/13 _ Acenaphthylene 0.0068 0.0068 U.050 ug/l U 827OC-3 D4/14/13 04/15/13 _ Benzo(a)anthracene 0.012 0.012 0.050 ug/l I 8270C-S 04/•14/13 04/15/13 _ Benzc(a)pyrene 0.012 0.012 0.050 ug/1 U 8270C-S 04/14/13 04/15/13 1 Ben2c(b)fluoranthene 0.014 0.014 0.050 ug/1 U 8270C-S D4/14/13 04/15/13 Benzc(g,h,i)perylene 0.011 0.011 0.050 ug/1 U 8270C-5 04/14/13 04/15/13 1 Benzo(k)£luoranthene 0.014 C.C14 0.050 ug/1 U 8270C-S D4/14/13 04/15/13 Chrysene 0.011 0.611 0.050 ug/1 U 8270C-S 04/14/13 04/15/13 Dibenz(a,h)anthracene 0.004C 0.0040 0.050 ug/l U 8270C-S 04/14/13 04/15/13 1 Fluoranthene 0.016 0.016 0.050 ag/1 U B770C-S 04/14/13 04/15/13 1 Fluorene 0.0085 0.0085 0.050 ug/1 U B270C-S 04/14/13 04/15/13 - In6eno(1,2,3-cd)pyrene 0.015 0.015 0.050 ug/l U 8270C-S 04/14/13 04/15/13 1 Naphthalene 0.046 0.020 0.25 ug/l I 6270C-S 04/14/13 04/15/13 1 Phenanthrene 0.0082 0.0082 0.050 ug/l U 827OC-S 04/14/13 04/15/13 1 Pyrene 0.012 0.012 0.050 ug/1 U B270C-S 04/14/13 04/15/13 _ 1-Methylnaphthalene 0.0082 C.0082 0.25 ug/i U 8270C-S 04/14/13 04/15/13 1 2-Methylnaphthalene 0.012 0.0090 0.25 ug/1 I 6270C-S 04/14/13 04/15/13 2-Chloronaphthalene 0.0065 0.0055 0.25 ug/1 U 6270C-S 04/14/13 04/15/1-7 i Surrogate Recovery Nitrobenzene-d5 98.7 % Rec. 8270C-S 04/14/13 04/15/13 1 2-Fluorobiphenyi 102. % Rec. 627OC-S 04/14/13 04/15/13 1 p-Terphenyl-d14 97.5 � Rec. 8270C-S 04/14/13 04/15/13 1 U = ND (Not Detected) RDL = Reported Detection Limit = LOQ = PQL - EQL = TRRP MQL MDL = Minimum Detection Limit = LOD = TRRP SDL Note: The reported analytical results relate cnly to the sample submittea. Th-s -report shall not be reproduced, except in full, without the written approval from ESC. Reported: 04/23/13 16:46 Printed: 04/23/13 16:47 Page 5 of 9 1206c Lebanor Rd. "OESC61:;; 75N-5B58 __u.lp-�6,-5$So 'ar: �fi_5) 758-5854 REPORT OF ANALYSIS Mr. Matthew Hoffman April 23, 2013 Universal Eng. Sciences-F=. Myers, 3971 Country Lakes Drive Fort Myers, FL 33905 ESC Sample W L630257-03 Date Received April 12, 2013 Descrip-ion Plantation Key Site 1D PLANTATION KEY, FL Sample ID W-2 Project # 0540.1300032.0006 Collected By Matt Koffman Collection Date 04/10/13 13:30 Parameter Result MDL RDL Units Qualifier Method Prep Analyze Di11 . Mercury 0.049 0.049 0.20 ug/i U 7470A 04/12/13 04/13/13 _ Arsenic 7.5 6.5 20. ug/1 I 6010B 04/17/13 04/23/13 Barium 20. 1.7 5.0 ug/1 6010B 04/17/13 04/23/13 1 Cadmium 0.70 0.70 5.0 ug/l U 601DB 04/17/13 04/22/13 1 Chromium 3.4 1.4 10. ug/1 I 60i0B 04/17/13 04/23/13 1 Lead 1.9 1.9 5.0 ug/l U 6010B 04/17/13 04/23/13 1 Selenium 45. 7.4 20. ug/1 6010E 04/17/13 04/23/13 1 Silver 2.8 2.8 10. ug/1 U 6010B 04/17/13 04/23/13 1 Volatile Aromatics Benzene 0.33 0.33 1.0 ug/1 U 8260E 04/12/13 04/13/1-3 1 Chlorobenzene 0.35 0.35 1.0 ug/1 U 6260E 04/12/13 04/13/13 1 "_,2-Dichlorobenzene C.35 0.35 1.0 ug/l U 6260E 04/12/13 04/13/13 1 1,3-Dichlorobenzene 0.22 0.22 1.0 ug/l U 8260E 04/12/13 04/13/13 1 1,4-Dichlorobenzene 0.27 0.27 1.0 ug/l U 8260B 04/12/13 04/13/13 1 E-hylbenzene 0.3B 0.3E 1.0 ug/1 U B260B 04/12/13 04/13/13 1 Methyl tert-butyl ether 0.37 0.37 1.0 ug/1 U 626CE 04/12/13 04/13/13 1 Toluene 0.78 0.78 5.0 ug/1 U 8260B 04/12/13 C4/13/13 i yylenes, Total 1.2 1.1 3.0 ug/1 U 8260B 04/12/13 04/13/13 1 Volatile Hydrocarbons Bromodichloromnethane 0.38 0.38 1.0 ug/l U 6260B 04/12/13 04/13/13 1 Bromo£orm 0.47 0.47 1.0 ug/1 U 8260B 04/12/13 04/13/13 i Bromomethane 0.87 0.87 5.0 ug/l U 82608 04/12/13 04/13/13 1 Carbon tetrachloride 0.38 0.3B 1.0 ug/l U 8260B 04/12/13 04/13/13 1 C h 1 o r o d i b r omome t h a n e 0.33 0.33 1.0 ug/l U 8260E 04/12/13 04/13/13 1 Chlorcethane 0.45 0.45 5.0 u9,11 U 6260B 04/12/13 04/1-3/13 1 2-Chloroethyl vinyl ether 3.0 3.0 50. ug/1 U 8260E 04/12/13 04/13/13 Chloroform 0.43 0.32 5.0 ug/1 I 8260E 04/12/13 04/13/13 Chloromethane 0.28 0.28 2.5 ug/1 U 8260B 04/12/13 04/13/13 i Dichlorodifluoromethane 0.55 0.55 5.0 ug/1 U 8260E 04/12/13 04/13/13 _ 1,1-Dichloroethane 0.26 0.26 1.0 ug/l U 8260B 04/12/13 04/13/13 1 1,2-Dichloroethane 0.36 0.36 1.0 ug/1 U 8260E 04/12/13 04/13/13 1 1,1-Dichloroethene 0.40 0.40 1.0 ug/1 U 6260B 04/12/13 04/13/13 1 cis-1,2-Dichloroethene 0.26 0.26 I'D ug;'1 U 8260B 04/12/13 04/13/13 1 trans-1,2-Dichloroethene 0.40 0.40 1.0 ua/'_ U 6260E 04/12/13 04/13/13 1 1,2-Dichloropropane 0.31 0.31 1.0 ug/1 U 8260E 04/12/13 04/13/13 1 cis-1,3-Dichlcropropene 0.42 0.42 1.0 ug/1 U 8260E 04/12/13 04/13/13 1 trans-1,3-Dichloropropene 0.42 0.42 1.0 ug/1 U 8260E 04/12/13 04/13/13 1 Methylene Chloride 1.0 1.0 5.0 ug/i U 8260E 04/12/13 04/13/13 i 1,1,2,2-Tetrachloroethane C.38 0.58 1.0 ug/l U 8260B 04/12/13 04/13/13 1 Tetrachlcroethene 0,37 0.37 I.0 ug/l U 8260B 04/12/13 04/13/13 1 1,1,1-Trichloroethane 0.32 0.32 1.0 Ug/1 U 8260B 04/12/13 04/13/13 1 1,1,2-Trichloroethane 0.38 0,36 1.0 ug/l U 8260E 04/12/13 04/13/13 _ Page 6 of 9 Mr. Matthew Hoffman Universal Eng. Sciences-rt. Myers, 5971 Country Lakes Drive Fort Myers, FL 33905 Date Received April 12, 2013 Description Plantation Key Sample ID w-2 Collected ny Ma-r Hoffman Collection Date 04/-0/13 13:30 Parameter Trichloroethene Trichlorofluoromethane Vinyl chloride Surrogate Recovery Toluene -dB Dibromofluoromethane 4-Bromo£luorobenzene Polynuclear Aromatic F.ydrocarbons Anthracene Acenaphthene Acenaphthylene Benzo(a)anthracene Benzo(a)pyrene Benzo{b)fluoranthene Benzo(g,h,i)perylene Benzo(k)fluoranthene Chrysene Dibenz{a,h)anthracene Flucranthene Flucrene Indeno(1,2,3-cd)pyrene Naphthalene Phenanthrene Pyrene i-Methylnaphthalene 2--Methylnaphthalene 2-Chloronaphthalene Surrogate Recovery Nitrobenzene-d5 2-Fluorobiphenyi p--Terphenyl--d14 REPORT OF ANALYSIS -2De7 :,ebanon ka. M_. ?uliez' TN � --- _-gr:r-;6;-5655 _ax fel 158-5859 Tay.. 62-08,42� -970 April 23, 2013 ESC Sample # : :,630257-03 Site ID Pi AN A"IUN FEY, FL Project # 0540.1300032,0006 ReSu-t MDL P.DL Units Qualifier Method Prep Analyze 0.40 0.40 1.0 ug/1 U 6260B 04/12/13 04/13/13 _ 1.2 1.2 510 ug/l U 8260B 04/12/13 04/13/13 1 C.25 0.26 1.0 ug/1 U 8260E 04/12/13 04/13/13 103. i Rec. 8260B 04/12/13 04/13/13 1 99.7 � Rec. 8260E 04/12/13 04/13/13 1 98.0 s Rec. 8260E 04/12/13 04/13/13 1 0.013 0.0076 0.050 ug/l I 027OC-S 04/14/13 04/15/13 1 0.011 0.0082 0,050 rg/l I 8270C--5 04/14/13 04/15/13 i 0.0068 0.0068 0.05C Ug/1 U 627OC-S 04/14/13. 04/15/13 1 0.012 0.012 0.050 ug/1 U 827OC-S 04/14/13 04/15/13 ? 0.012 0.012 0.050 ug/l U 8270C-S 04/14/13 04/1_5/13 1 0.014 0.014 0.050 ug/1 U 6270C-S 04/14/13 04/15/13 i 0.011 0.011 0.050 ug/1 U 6270C-S 04/14/13 04/15/13 1 0.014 O-M 4 0.030 ug/1 U 6270C-S 04/14/13 04/'-5/13 1 0.011 0.011 01050 ug/1 U 827OC-S 04/14/13 04/15/13 1 0.004C 0.0040 0.050 ug/1 U 8270C-S 04/14/13 04/15/13 1 0.616 0.016 0.050 ug/1 U 8270C-S 04/14/13 04/1-5/13 0.00B5 0.0085 0.050 ug/1 U 8270C--5 04/14/13 04/15i13 1 0.015 0.015 0.050 ug/1 U 627OC-S 04/14/13 04/15/13 0.032 0.020 0.25 ug/1 I 8270C-S 04/14/13 04/15/13 1 0.0082 0.0082 0.050 ug/1 U 8270C-5 04/14/13 04/15/13 1 O.C12 0.012 O.C50 ug/1 U 8270C-S 04/14/13 04/15/13 1 0.0082 0.0082 0.25 ug/1 U 8270C-S 04/14/13 04/15/13 1 0.0093 0.0090 0.25 ug/1 I 8270C-5 04/14/13 04/15/13 1 0.0065 0.0065 0.25 ug/1 U 8270C-S 04/14/13 04/15/13 1 104. i Rec. 8270C-S 04/14/13 04/1-5/13 1 105. i Rec. 8270C-S 04/14/13 04/1-5/13 1 104. ; Rem- 8270C-S 04/14/13 04/15/13 U = ND (Not Detected% RDL - Reported Detection Limit = LOQ = PQL = EQL = TRRP MQL MDL = Minimum Detection Limit = LOD = --RRP SDL Note: The reported analytical results relate only to the sample submitted. This report shall no- be reproduced, eycept in full, without the writ -en approval from ESC. Reported: 04/23/13 16:46 Printed: 04/23/13 16:47 Page 7 of 9 Sample Number L630257-01 L630257-V2 L630257-03 Attachment A List of Ana_vtes with QC Qua'lfiers WorN Sample Run Group Type Analyze ID Qualifier WG65653B SAMP Cadmium R2629321 I wGE56538 SAMP Silver R2629321 C WG656032 SAMP Mercury R2618620 I WG656214 SAMP Naphthalene R2620342 1 WGE56631 SAMP Arsenic R2633226 I WG656a31 SAMP Chromium R263322C I WG656232 SAMP Benzo(a)anthracene R2620502 I WG656232 SAMP Naphthalene R2620502 I WG656232 SAMP 2-Methylnaphthalene R2620502 I WG656831 SAMP Arsenic R263322C _ WG656831 SAMP Chromium R2633220 _ WG656232 SAMP Anthracene P,2620502 _ WG656232 SAMP Acenaphthene R2E20502 I WG656232 SAMP Naphthalene R2620502 7 WG656232 SAMP 2-Methvinaphthalene R2620502 I WG656045 SAMP Chloroform P-2623240 I Page 8 of Attachment B Explanation of QC Qualifier _odes Qualifier Meaning !EPA) - Estimated value below the lowest calibration point. Confidence correlates with concentration. (ESC) Sample diluted due is matrix interferences that impaired the ability to make an accurate analytical determination. The detection limit is elevated in order to reflect the necessary dilution. Qualifier Report =nformation ESC utilizes sample and result qualifiers as set forth by the EPA Contract Laboratory Program and as required by most certifying bodies including NELAC. In addition to the EPA qualifiers adopted by ESC, we have implemented ESC qualifiers no provide more information pertaining to our analytical results. Each qualifier is designated in the qualifier explanation, as either EPA or ESC. Data qualifiers are intended to provide the ESC client with more detailed information concerning the potential bias of reported data. Because of the wide range of constituents and variety of matrices incorporated by most EPA methods,it is common for some compounds to fail outside of established ranges. These exceptions are evaluated and all reported data is valid and useable "unless qualified as W (Rejected)." Definitions Accuracy - The relationship of the observed value of a known sample to the true value of a known sample. Represented by percent recovery and relevant to samples such as: control samples, matrix spike recoveries, surrogate recoveries, etc. Precision - The agreement between a set of samples or between duplicate samples. Relates to how close together the results are and is represented by Relative Percent Differrence. Surrogate - Organic compounds that are similar in chemical composition, extraction, and chromotography to analyses of interest. The surrogates are used to determine the probable response of the group of analyzes that are Chem- ically related to the surrogate compound. Surrogates are added to the sample and carried through all stages of preparation and analyses. TIC - Tentatively Identified Compound: Compounds detected in samples that are not target compounds, internal standards, system monitoring compounds, or surrogates. Page 9 of 9 Summary of Remarks For Samples Printed 04/23/13 at 16:47:23 TSP. Signing Reports: 350 R5 - Desired TAT Use ASS, not ASICF, for GW; MDL/RDL, Paperless, MINV = $100 Sample: L630257-01 Account: UNIENGFMFL Received: 04/12/13 09:00 Due Date: 04/19/13 00:00 RPT Date: 04/23/13 16:46 Sample: L630257-02 Account: UNIENGFMFL Received: 04/12/13 09:00 Due Dame: 04/19/13 00:00 RPT Date: 04/23/13 100 Sample: L630257-03 Account: UNIENGFMFL Received: 04/12/13 09:00 Due Date: 04/19/13 00:00 RPT Date: 04/23/13 16:46 ADo 4 O t- 14 � C C532 b q 16_ CL M- H031MG/lIAS/IU10t, (HOa1N) HOA/VOA09ZSA _ry �ONH-3dCIHI UOS sI P�1i 8 '?I�3X Iti?° L .. SWjON-lI'DZOZ S_L ( saldoN-9LuVz°b WISHVdOLZ8AS �C saa�oN af��� ��aI�1I 8�2I ,I,M-saidON'Qu-'dIWOV IA'T MSHdd C X sas�o [ OOS'S3 aY1i'$ i�2i sw — 6i N 0 rr v L p Z � M Z� ZI O-s G Ll- W aLU z o a L LD LL to u' �- a a N ❑ QO 04 iy .n z Q} 0 co zm w �II 0 H 0 a L• f 4 R v aC+ n a)V C ]( G/ N � 1 114 CID CK r m � � � rY• n �+"�` c� a $ G7 00 Ul m XD o M N I w` W 2 lOH-RwVIwOb HOA/VOA09Z8A Ou n n r- C_ U LAa]0 E o -Zr z cc a w 3 o o O a7 L w d d rl I M5 CU p m = o � oED_1 a m L m O w z _ LO LL. i m lu IT] Vl x f9 J 7 ita o r ' V p m m m � co z ti g ym m o 711 atz i I I 1 0 ' i V 1 CD F^ •ate+ =i\i � r-r' :n � �!1 � � � O CW _ 2 l� m z 3 o O V U V U a)V m C Ul O7 X o E ti c APPENDIX E Universal Engineering Sciences, Inc. GENERAL CONDITIONS SECTION 1: RESPONSIBILMES 1.1 Universal Engineering Sciences, Inc., heretofore referred to as the Consultant, has the responsibility for providing the services described under the Scope of Services section. The work is to be performed_ according to accepted standards of care and is to be completed in a timely manner. The term "Consultant" as used herein includes all of Universal Engineering Sciences, Inc's agents, employees, professional staff, and subcontractors. 1.2 The Client or a duly authorized representative is responsible for providing the Consultant with a clear understanding of the project nature and scope. The Client shall supply the Consultant with sufficient and adequate information, including, but not limited to, maps, site plans, reports, surveys and designs, to allow the Consultant to properly complete the specified services. The Client shall also communicate changes in the nature and scope of the project as soon as possible during performance of the work so that the changes can be incorporated into the work product. SECTION 2: STANDARD F CARE 21 Services performed by the Consultant under this Agreement are expected by the Client to be conducted in a manner consistent with the level of care and skill ordinarily exercised by members of the Consultants profession practicing contemporaneously under similar conditions in the locality of the project. No other warranty, express or implied, is made. 2.2 The Client recognizes that subsurface conditions may vary from those observed at locations where borings, surveys, or other explorations are made, and that site conditions may change with time. Data, interpretations, and recommendations by the Consultant will be based solely on information available to the Consultant at the time of service. The Consultant is responsible for those data, interpretations, and recommendations, but will not be responsible for other parties' interpretations or use of the information developed. SECTION 3: SITE ACCESS AND SITE CONDITIONS 3,1 Client will grant or obtain free access to the site for all equipment and personnel necessary for the Consultant to perform the work set forth in th,s Agreement. The Client will notify any and all possessors of the project site that Client has granted Consultant free access to the site. The Consultant will take reasonable precautions to minimize damage to the site, but it is understood by Client that, in the normal course of work, some damage may occur, and the correction of such damage is not part of this Agreement unless so specified in the Proposal. 3.2 The Client is responsible for the accuracy of locations for all subterranean structures and utilities. The Consultant will take reasonable precautions to avoid known subterranean structures, and the Client waives any claim against Consultant, and agrees to defend, indemnity, and hold Consultant harmless from any claim or liability for injury or loss, including Costs of defense, arising from damage done to subterranean structures and utilities not Identified or accurately located. In addition, Client agrees to compensate Consultant for any time spent or expenses incurred by Consultant in defense of any such claim with compensation to be based upon Consultant's prevailing fee schedule and expense reimbursement policy. SECTION §&MPLE OWNERSHIP AND DISPOSAL 4.1 Soil or water samples obtained from the project during perfarmance of the work shall remain the property of the Client. 4.2 The Consultant will dispose of or return to Client all remaining soils and rock samples 60 days after submission of report covering those samples. Further storage or transfer of samples can be made at Ciient's expense upon Client's prior written request. 4.3 Samples which are contaminated by petroleum products or other chemical waste will be returned to Client for treatment or disposal, consistent with all appropriate federal, state, or local regulations, SECTION 6: BILLING AND PAYMENT 5.1 Consultant will submit invoices to Client monthly or upon completion of services. Invoices will show charges for different personnel and expense classifications. 5.2 Payment Is due 30 days after presentation of invoice and is past due 31 days from invoice date. Client agrees to pay a finance charge of one and one-half percent (1 % %) per month, or the maximum rate allowed by law, on past due accounts. 5.3 If the Consultant incurs any expenses to Collect overdue billings on invoices, the sums paid by the Consultant for reasonable attorneys' fees, court Costs, Consultant's time, Consultant's expenses, and interest will be due and owing by the Client. SECTION 6: OWNERSHIP OF DOCUMENTS 61 Ali reports, boring logs, field data, field notes, laboratory test data, calculations. estimates, and other documents prepared by the Consultant, as Instruments of service, shall remain the property of the Consultant. 6.2 Client agrees that all reports and other work furnished to the Client or his agents, which are not paid for, will be returned upon demand and will not be used by the Client for any purpose. 6.3 The Consultant will retain all pertinent records relating to the services performed for a period of five years following submission of the report, during which period the records will be made available to the Client at all reasonable limes. SECTION 7: DISCOVERY OF UNANTICIPATED HAZARDOUS MATERIAL 7.1 Client warrants that a reasonable effort has been made to inform Consultant of known or suspected hazardous materials on or near the project site. 7.2 Under this agreement, the term hazardous materials include hazardous materials (40 CFR 172.01), hazardous wastes (40 CFR 261.2), hazardous substances (40 CFR 300.6), petroleum products, poiychlohnaled biphenyls, and asbestos. 7.3 Hazardous materials may exist at a site where there is no reason to believe they could or should be present. Consultant and Client agree that the discovery of unanticipated hazardous materials constitutes a changed condition mandating a renegotiation of the scope of work. Consultant and Client also agree that the discovery of unanticipated hazardous materials may make it necessary for Consultant to take immediate measures to protect health and safety. Client agrees to compensate Consultant for any equipment decontamination or other costs incident to the discovery of unanticipated hazardous waste. 7.4 Consultant agrees to notify Client when unanticipated hazardous materials or suspected hazardous materials are encountered. Client agrees to make any disdosures required by law to the appropriate governing agencies. Client also agrees to hold Consultant harmless for any and all consequences of disclosures made by Consultant which are required by governing taw. In the event the project site is not owned by Client, Client recognizes that it is the Client's responsibility to inform the property owner of the discovery of unanticipated hazardous materials or suspected hazardous materials. 7.5 Notwithstanding any other provision of the Agreement, Client waives any claim against Consultant, and to the maximum extent permitted by law, agrees to defend, indemnify, and save Consultant harmless from any claim, liability, and/or defense costs for injury or loss arising from Consultant's discovery of unanticipated hazardous materials or suspected hazardous materials including any costs created by delay of the project and any Cost associated with possible reduction of the property's value. Client will be responsible for ultimate disposal of any samples secured by the Consultant which are found to be contaminated. SECTION 8: RISK ALLOCATIO 8.1 Client agrees that Consultant's liability for any damage on account of any error, omission or other professional negligence will be limited to a sum not to exceed $50,000 or Consultant's fee, whichever is greater. Client agrees that the foregoing limits of liability extend to all of consultant's employees and professionals who perform any services for Client. If Client prefers to have higher limits on professional liability, Consultant agrees to increase the limits up to a maximum of $1.000,000.00 upon Clients' written request at the time of accepting our proposal provided that Client agrees to pay an additional consideration of four percent of the total fee, or $400.00, whichever is greater. The additional charge for the higher liability limits Is because of the greater risk assumed and is not strictly a charge for additional professional liability insurance. SECTION 9: INSURANCE 9.1 The Consultant represents and warrants that it and its agents, staff and Consultants employed by it. is and are protected by workers compensation insurance and that Consultant has such coverage under public liability and property damage insurance policies which the Consultant deems to be adequate. Certificates for all such policies of insurance shall be provided to Client upon request In writing. Within the limits and conditions of such insurance, Consultant agrees to indemnify and save Client harmless from and against loss, damage, or liability arising from negligent acts by Consultant, Its agents, staff, and consultants employed by it. The Consultant shall not be responsible for any loss, damage or liability beyond the amounts, limits, and conditions of such insurance or the limits described in Section 8, whichever is less. The Client agrees to defend, indemnify and save Consultant harmless for loss, damage or liability arising from acts by Client, Client's agent, staff, and other consultants employed by Client. SECTION 10: DISPUTE RESOLLMON 10.1 All claims, disputes, and other matters in Controversy between Consultant and Client arising out of or in anyway related to this Agreement will be submitted to altemative dispute resolution (ADR) such as mediation and/or arbitration, before and as a condition precederd to other remedies provided by law. 102 If a dispute at law arises related to the services provided under this Agreement and that dispute requires litigation instead of ADR as provided above, then: (a) the claim will be brought and tried in judicial jurisdiction of the court of the county where Consultants principal place of business is located and Client waives the right to remove the action to any other county or judicial jurisdiction, and (b) The prevailing party will be entitled to recovery of all reasonable costs incurred, including staff time, court costs, attomeys' fees, and other claim related expenses. SECTION 11: TERMINATION 11.1 This agreement may be terminated by either party upon seven (7) days written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof. Such termination shall not be effective if that substantial failure has been remedied before expiration of the period specified in the written notice. In the event of termination, Consultant shall be paid for services performed to the termination notice date plus reasonable termination expenses. 11.2 In the event of termination, or suspension for more than three (3) months, prior to completion of all reports contemplated by the Agreement. Consultant may complete such analyses and records as are necessary to complete his files and may also complete a report on the services performed to the date of notice of termination or suspension. The expense of termination or suspension shalt include all direct costs of Consultant in completing such analyses, records and reports. SECTION 12: ASS19M 12.1 Neither the Client nor the Consultant may delegate, assign, sublet or transfer his duties or interest in this Agreement without the written consent of the other party_ SECTION 13. GOVERNING LAW AND SURVIVAL 13.1 The laws of the State of Florida will gavem the validity of these Terms, their interpretation and performance. 13.2 If any of the provisions contained in this Agreement are held illegal, invalid, or unenforceable, the enforceability of the remaining provisions will not be impaired. limitations of liability and indemnities will survive termination of this Agreement for any cause. Rev. 03/10/11 Asbestos Containing Building Materials Survey UNIVERSAL ENGINEERING SCIENCES ASBESTOS CONTAINING BUILDING MATERIAL SURVEY FORMER OFFICE AND STORAGE BUILDINGS 103 KEY HEIGHTS DRIVE LANTATION KEY, MONROE COUNTY, FLORIDA May 1, 2013 LIES Order No.: 0540.1300032.0000 Prepared By: Universal Engineering Sciences, Inc. 5971 Country Lakes Drive Fort Myers, Florida 33905 Ccnsuftants in: Gectechnlcal Engineering • Environmental Engineering • Construction Materials Testing • Threshold Inspection • Private Provider Inspection Offices in: Daytona Beach • DeBary • Fort Myers • Gainesville • Jacksonville • Dula - Orlando • f alm Coast Rockledge • Sarasota - St. Augustine • Tampa • West Palm Beach 054C.1300032.0t}00 Dos wth drax.ngs • keys wpd UNIVERSAL ENGINEERING SCIENCES Consultants In: Geotechnical Engineering - Environmental Sciences Construction Materials Testing - Private Provider & Threshold Inspections Weiler Engineering Corp. 6805 Overseas Highway Marathon, Florida 33050 Attention: Mr. Ed Castle OFFICES IN: Atlanta Day uma DeBar Fort Myers Fort Pierce Gains ille Jacksonville Leesburg Miami Ocala Orlando Palm Coast Panama City Pensacola Rocklcdgc Sarasota St. Augustine Tampa West Palm Beach Clermont Order No: 0540,1300032.0000 Date: May 1, 2013 Reference: ASBESTOS CONTAINING BUILDING MATERIAL SURVEY FORMER OFFICE AND STORAGE BUILDINGS 103 KEY HEIGHTS DRIVE Plantation Key, Monroe County, Florida Dear Ed: Universal Engineering Sciences, Inc. (LIES) is pleased to submit the enclosed report for the asbestos containing building materials survey conducted at the above referenced project on April 11, 2013. Should you have any questions concerning this report or if we may be of any further assistance, please d❑ not hesitate to contact this office. We appreciate the opportunity to be of service to you on this project and we look forward to a continued association. Respectfully submitted, ,,'�E�11N?1lI��I�r��' UNIVERSAL ENGINEERING SCIENCES, IN['�v'�V�cENSELC� NO. 41790 - — Lindsey N. Weaver, P.E. STATE OF . Florida Licensed Asbestos Consultant - #EAO - •.RORIDP,•' vil, 310NAL• g0� _'�. MAHlmah �/1111!11111111kON 3 cc: Addressee (1 via email: edreastle@a me.com) "WITtSbIfftirl Ua I gi ffie • Fort Myers, FL 33905 • (239) 995-1997 ■ Fax (239) 313-2347 UNIVERSAL ENGINEERING SCIENCES, INC. ASBESTOS CONTAINING BUILDING MATERIALS EVALUATION May 1, 2013 Facility Farmer Office and Storage Buildings Address 103 Key Heiqhts- Drive Plantation Key, Monroe County, Florida Project Number 0540.1300032.0000 Date of Survey April 11, 2013 Project Manager Lindsey N. Weaver Asbestos Inspector : Matthew A. Hoffman, E.I. Accredited Inspector - TREEO #080419-0085 Asbestos Consultant:: Lindsey N. Weaver, P.E. Florida Licensed Asbestos Consultant - #EA0000046 SE 140. 9p FLOIX T OW-1300032,0000 pos with draw ng$ - keys.wpd �u 1.0 INTRODUCTION 1.1 General In this report, we present the results of the asbestos containing building material evaluation performed on a vacant office building a storage building located at 103 Key Heights Drive in Plantation Key, Monroe County, Florida. We understand these structures will be demolished in the near future. This service was generally conducted according to our proposal dated March 19, 2913 and your written authorization received on March 29, 2013. 1.2 Purpose and Scope The purpose of this study was to perform an evaluation of the referenced structure for the presence of asbestos containing building materials (ACBM). The activities and procedures used to accomplish this task were as follows: 1, Review available information concerning the budding including the type and age of the original construction. 2. Walk-through and observe accessible areas within the building to identify, locate, and assess suspected ACBM. 3. Obtain samples of each suspected ACBM. 4. Analyze the collected samples using Polarized Light Microscopy (PLM) for the presence of asbestos fibers. 5. Prepare and submit a report of findings. Full destructive observation and sampling procedures were generally not used in our evaluation of the facility. Inaccessible areas of the building such as inside partitions, walls, or other sealed areas were not completely evaluated as part of this study. 0540.i300032.0000 pus with drawings - %eys.wpd q 2.0 BUILDING CHARACTERISTICS AND INFORMATION 2.1 General The existing office building is a single story, CBS and wood framed structure with a wood truss roof. The storage building is a single story, wood framed structure with a wood truss roof. The buildings are located at 133 Key Heights Drive in Plantation Key, Monroe County, Florida. Interior finishes within the structures generally consisted of sheetrock, surfacing, ceramic tile, roll flooring, floor tile, terrazzo flooring, wood paneling, ceiling tile and carpet. 2.2 Mechanical Systems The HVAC system of the vacant office building consisted of various window mounted A/C units. No HVAC system was observed within the storage building. No water heaters were observed within the structures at the time of our evaluation. There were no suspect materials on the water supply lines. 2.3 Available Material Information No plans, specifications, or other information concerning the original building construction and material types were available. 2.4 Buiidinq Use The buildings were vacant and unsecured with access available to owners and possibly others. 0 BUILDING INSPECTION 3.1 General Three forms of asbestos containing materials are typically found in buildings 1) sprayed or troweled -on surfacing materials; 2) insulation on pipes, boilers, and ducts; and 3) miscellaneous materials such as wall board, ceiling tiles, and floor tiles. A building walk-through inspection was conducted to identify these and other materials present within the portion of the building for renovation which are typically suspected of containing asbestos. 3.2 Inspection Procedures Our field inspection was performed by an Inspector accredited according to Federal Regulation 40 CFR, Part 763 (AHERA), under the direction of an Asbestos Consultant licensed in the State of Florida. After a preliminary walk-through of the planned renovation portion of the building, an inspection was conducted to evaluate the location and extent of the suspected asbestos containing building materials. Once identified, these materials were categorized into homogeneous areas containing materials of the same type, age, visual appearance, texture, composition, etc. Random, and in some cases, judgmental samples of each homogeneous area of material were then collected. The physical condition and potential for disturbance and damage of each material was assessed_ u 05a0.:300032-0000 pas wIri nraiwngs - keys-wpc In addition, a tactile inspection of materials was performed to evaluate friability. If Lhe material, when dry, can be crumbled, pulverized, or reduced to powder by hand pressure, it is considered friable. 3.3 Suspected Asbestos Containing Building Materials Based on our visual survey of the structures, eighteen (18) homogeneous materials were identified as possibly containing asbestos. Detailed information concerning the approximate quantity, location, and description of the suspected asbestos containing materials are shown on the Homogeneous Material Information sheets enclosed in Appendix A to this report_ 4.0 LABORATORY ANALYSIS The samples of the suspected asbestos containing building materials collected during the field inspection were transported with chain -of -custody documentation to EMSL Analytical in North Miami Beach, Florida. EMSL- is a National Voluntary Lab Accreditation Program (NVLAP) accredited laboratory for bulk sample analysis. These samples were analyzed for the presence of asbestos fibers using Polarized Light Microscopy (PLM). The analyses were performed according to EPA Method 600/R-931116, July 1993. A copy of the laboratory report for the suspect materials is enclosed in Appendix B to this report. 5.0 FINDINGS The laboratory test results indicated that asbestos fibers were detected in samples of one (1) of the eighteen (18) materials identified during our investigation. A summary of the asbestos containing materials is present in Table 1. TABLE 1 SUMMARY OF ASBESTOS CONTAINING MATERIAL Homogeneous Asbestos NESHAPS Material Description Location Condition Quantity ova Classification Number Portion of H16 Tan floor tile floor of Fair .-150 ft2 3% Category i, with mastic storage Non -Friable building 0540 1300032.0000 pas wish crawngs - Keys.wpd u 6.0 SUMMARY Inspection of the facility identified eighteen (18) different materials suspected of containing asbestos fibers as a constituent. Bulk samples of each of those materials were collected and submitted to an NVI-AP accredited laboratory for analyses. The results indicated that samples of one (1) material contained asbestos fibers. The only material found to contain asbestos fibers in excess of one percent was the was the resilient flooring material found in the storage building. This material was in fair condition and is non -friable. As such, we would classify this material as Category l non -friable materials under the current NESHAP regulations. 7.0 REGULATORY INFORMATION There are numerous federal and state statutes, regulations, and rules which govern the abatement and disposal of ACBM. in particular, the demolition of buildings containing ACBM is regulated under the National Emission Standard for Hazardous Airborne Pollutants (NESHAP) statute. The NESHAP regulations require notification to the controlling agency and removal of all regulated asbestos containing materials (RACM) prior to demolition. RACM is defined as (1) friable asbestos material, (2) Category 1 non -friable asbestos containing material that has become friable, (3) Category I non -friable asbestos containing material that will be or has been subjected to sanding, grinding, cutting, or abrading, or (4) Category II non -friable asbestos containing material that has a high probability of becoming or has become crumbled, pulverized, or reduced to powder by the forces expected to act on the material in the course of future demolition or renovation operations regulated by NESHAP. The NESHAP regulations are not applicable if the RACM is below the threshold quantities of 260 linear feet or 160 square feet of RACM. We strongly recommend that you contact the Controlling Agency prior to any future demolition or renovation regarding the proper disposition of the ACBM. The Agency responsible for the NESHAPS regulation in the Plantation Key area is the South District Office of the Florida Department of Environmental Protection (Phone No. 239/344-5600). It is important to note that even though an activity may be exempt from the EPA NESHAP regulations, such exemption does not extend to Occupational Safety and Health Administration (OSHA) standards or other state and federal statutes. Demolition/renovation activities in buildings that contain ACM or PACM (Presumed Asbestos Containing Material) are also regulated under the OSHA Asbestos Construction Standard (CFR 1926.1101), The OSHA standard requires the building owner to inform their employees who will work in or adjacent to areas containing ACM or PACM, perspective employers applying or bidding for work whose employees reasonably can be expected to work in or adjacent to areas containing ACM or PACM, all employers of employees on multi -employer work sites who will be performing work with or adjacent to areas containing asbestos, and tenants who will occupy areas containing ACM or PACM, of the presence, location, and quantity of ACM or PACM at the work sites in their buildings and facilities. Further, the OSHA standard (1926.1101) requires employers who discover ACM or PACM to convey information concerning the presence, location and quantity of such newly discovered ACM or PACM to other employers of employees working at the work site within 24 hours of discovery, While OSHA says the notification can be in written or personal communication, there are many advantages to written communication. 0540.1300032.0000 pas wile aramngs - keys.wpd R The OSHA construction standard (CFR 1926 1101) also contains specific training, work practices, procedures, engineering controls, notifications, permissible exposure limits, personal protection, record keeping, and a multitude of other requirements for the demolition, renovation, construction, alterations, repair, maintenance of structures, substrates or portions there of that contains asbestos. Any planned future demolition or renovation should be conducted in strict compliance with the aforementioned federal statutes and other applicable regulations, and good health and safety practices. Any material identified as non -friable ACBM must be treated as friable ACBM when the material is about to become friable as a result of activities performed within the building. 8.0 CONDITIONS AND LIMITATIONS OF THIS STUDY A representative of Universal Engineering Sciences, Inc. obtained samples of building materials which were observed during a walk-through of the subject facilities that are typically suspected of containing asbestos as a constituent. The bulk samples were submitted to an NVLAP approved laboratory for analysis using EPA approved methods or industry accepted standards. No warranty express or implied is given. In general, non-destructive inspection and sampling procedures were incorporated which allowed assessment of reasonably accessible building materials. Any suspect building material not addressed in this report which is encountered during renovation should be assessed for asbestos content prior to being damaged or removed. Building equipment, fixtures, or stored materials were not inspected or sampled as part of this evaluation. The indicated material quantities are approximate and should be considered preliminary in nature. Analysis of the floor the and other resinously bound materials by EPA Method 60O1R-931116, July 1993 may yield false - negative results because of method limitations in separating closely bound fibers and in detecting fibers of small length and diameter. Should you so desire, other analytical methods including Transmission Electron Microscopy can be used to further evaluate these types of materials. 4540.1300032.00M pas with drawings - Keys. wpd 'u APPENDIX A 91 UNIVERSAL [KO.Kow SVERCES inspector. Matar'io; Description HOM-01- SIENEOUS MATERIALS INPORMATION 0 HOMOGENEUS MATERIAL No 20.1 M. Hoffman with comcound Late riablc: y Yes - No Ouanilty: Approx 530C Sq -ft -u:- —Interior w and c-e-i'lings - main z�-d-iriQ Location: HC1 - 04 I r 4- -T- 1JC- 02 Hol-03 Sample Numbers: H01-01, H01-02, H01-03, H01-04 Comrnenfs: Mape=4-a-- in poor Cond--'----'on EB UNIVERSAL Euowtown XPEN6[5 Inspeciar: maferiul �esrripfian HOMOGENEOUS MATERIALS INFORMATION HOMOGENEUS MATMRiAL No H02 M- korfman Hole 4-11-" 3 _Friable; x Yes __ No OuonlilY: Approx Soto sc `-_ - -- - --- ----- Walls and La�4kiOn: ce:1ingc Of office~- rr.ain- Guiding - - - Hat -Oa _T I H02-05 140e-o6 SompkS Numbers: B02-05, H02-06, HC2-07, HC2-OB Cammanfs: - ?Material In poor Cond.tion H02-07 ED tdN�VER3AL EKMCCA.w SMKCEr inspe-cloy; Material De5Cripfion HOMOGENEOUS MATERIALS INFORMATION HOMOGENEUS MATERIAL No H03 M . Ho: `rear. 4 _ 1 Doi 9 Red Floor file with mastic rioble: Yes X No Guartfity; Approx 45 so F-_ Locofion: Closet area c` cffice H03-09 i $ample Numbers- H03-09, H03-10 Comments-. Material in poor ConC;tion ® HOMOGENEOUS MriATERiALS NFORMATiON h3OMOGENEUS MATERIAL No H04 LPMERSAL vMWEEMU Sullm is inspector: Opre Material Description Acoust-cal ceiling Tile Y, Friable: Yes Na ❑Uanfity; Approx = ❑ C sa f t Ceiling of rr.'du;e Office La�ation: Sample Nunnbers; -11, H04-12, 1404-13 mater-al in poor Condition H04-11 H04-13 ® HOMC)GENEOUS MATERIAi S INFORMATION HOMGGENEUS MATERIAL NQ H05 LII4IVERS� fnuu[CFIMw SCiC[1CS5 N. Hoffman inspector; Date -- - maferiW Description -Roll roofing with silver coatin❑ Friable: ---Yes x No Ouantity: Approx 2000 s❑ f Lacotiart: Por i or. of roof of main building HOS-16 i HOS--4 HOS-LS Sample Numbers: H05-14, H05-15, H05-16 Comments: .- Material ,n poor Condition I Ll ® HOMOGENEOUS MATERIA' S INEDRMATION HOMOGENEUS MATERIAL No HD6 un�vEFtSw.. rMo�wrr�c wcKccs N. 'Hoffman 4-11-13 Inspector: Owe Malarial �es�ripfinn Conore -e - — - Friabie: Yes X No Appror_ 2500 sa ft t?ucanfily: Lacafior.: Slab of main building H06-17 Hob-16 Sample Nurnbars: H06-17, HOG-18 Commenis: Material in good Condition ® HOMOGENEOUS MATERIALS INFORMATION NOMOGENEUS MATERIAL No H07 UNIVERSAL Vmmctm ICKNC(s Inspector: pate '~ Materia• Description Slue w-,Lh dark specks rollflooring "riable: Yes x No Quantity: Approx 400 sa ft Floor of central o-_`ice and ha_lwav L6C RfiOR: E07-2c Sample Numbers: H07-20, H07-19 comments: Material in. good Condition. 1p HOMOGENEOUS MATERIALS INFORMATION HOMOGENEUS MATERIAL No H08 UN EPSAL 1„anet4wa scwees 3n--mr• Materiol Description Speckled roll flooringMoieriol Date 4 1 7 _ - 3 viable: Yes x No 4uanth Approx 175 s _t. — Lacaiian: Floor of office Somple, Numbers: I_j H08-21, HOB-22 Comments:--_. Material in aood Condition HOMOGENEOUS MATERIALS I► FORMA71ON EB HOMGGENEUS MATERIAL No HO9 UR NEMAL crmwcmm %c "r" inspsef or: N . Hoffman Ao+e 4 • 11- 13 Moieriti: Descr�plinn Cove base with mas_ic Yes X No Approx 1-30 sc _ �uOnlily: _ Locpfian: Walls of offices R09-23 -A 5- r I HQ9-24 Somple Numbers: H09-23, H09-24 Commen#s: Material ir. good Cond" tion i HOMDGENEOUS MATERIALS IN-ORMATION 93 IiOMOGENEUS MATERIAL Na UNNE ssAL LHOWI&W U4NrE7 N. Hoffman Moferiai D@SCrlplion Stucco _ Friable: 4uonfiiy: APProx 3000 sa ft _ Locafion: Exterior w-mi -5 of main building rj -7 H10-25 Sompie Numbers- FID-27-, H10-26, H10-27 Cemrnerrfs:— Material in fair Condition Yes x No i i i H1❑-27 H10-26 ® HOMOGENEOUS MATERIALS INEORMATi'ON' HOMOGENEUS MATE -Rik- No x11 UNWERSAL &�U" 6 Sc4twcn inspector: N Hof _mar, Dale Malerial beseriplion Flat-c•iled rip? _�riaHle: Yes Ho auantity; Approx 12CC sa ft Lo-_abon; Roof of cen'=a__ o_fice and west side cf main buildinc -T H11-28 Sompie Numbers: Hll-28, HII-29 Commsnta: Md_er-ai 1F good Condition i __---.—_�I---_ - 'T'----._.— --- U11-29 91 LOOVERSAL E-OME[nxu satnccs In sp ec 10 r; m-werial past rip4ion HOMOGENEOUS MATERIALS iN ORMATION HOMOGENEUS MATERIAL No H12 M. So:` -man pale 4-11-13 Black mastic rionle: Yes X No 0uanfify: Approx 20 --:.near ft _ Locofian: Between main_ roof and roof of central office —I -j [ 1 I=12-30 Sampie Numbers: E12-30 Comments: Material in good Condition ® HOMDGENEDUS MATERIALS INFORMATION HQMOGENCUS MATERIAL No H13 UNWERSAL rM➢M[MHG SG[XCES Inspector; M• Ho`=man Date 4-11-13 hlaleriv; Description Slue door G_le with mastic Friable: Yes x No ❑oanlitp- Approx 140 so '- -Location: Floor of office H13-32 r H13-31 Sample Numbers: H13-31, H13-32 Comments: MaLer a' '_* oad Condit' or. 91 UNIVERSAL mmmL w &C&MCLS Inspscior: Materio, Description HOMOGENEOUS MATERIALS INFORMATION HOMOGENEUS MATERIAL No H14 M. Hoffman. Tara door the with mast_c Approx 140 sq f tivanllfy: Floor of otfice Location.: Sample Numbers H14-33, Hi4-34 Rote 4-11-53 riable: .._Yes _.. x No 1 H14-34 i _T._ F � i- H 14 - 3 3 ----� Comments-. Material in good Condition EDHOMOGENEOUS MATtRIA'•_S INr❑RMATION HOMOu£NCUS MATERIAL No H's UNNFASAL n.or[t"o sricken Inspector:___- M noffmar! pate 4-11-=3 Material Description Sheetrnnk w=th surfacing Frinble: -- Yes No Dunntly: Apprax 7C C sa f t iacaiion:Interior walls anc 9 ceilin ❑f stcra�e b =1d'n . - -- -- --- -� - H15 . I I I i I I Sample Numbers H15-35, H1-36, H15-37 Comments: Matena_ in poor Condition. H15-37 1p HOMOGENEOUS MATERIALS IWORMATION HOMOGENEUS MATMAL No hic LMERSAL M , Hof ffman Quantity: Loz:afion: 'fan floor the with mastic Approx 150 sQ ft Portion, of floor of shed Sample Rumblers H16-39 �ornrnenis-_. Material --n fair Condition Dale 4-11-23 __—Friabie: —Yes x No HIG-39 HIE-38 91 UNNERSAL M M[UM SCI[%Qj M. Inspector. Maferia: Description Roofin( HOMOGENEDUS MATERIA" INFORMAT:ON HOMOGEN£US MAT:7R;AL No H17 Hoffman Doie 4-11-13 Yes x No Quantify: Apprflx H17-401 Sample Numbers H17-40, H17-41 Carnments: Mate=ial in poor Condition. ® HOMOGENEOUS MATERIALS INFORMATION HOMOGENEUS MATERIAL No H=8 unuvERSa� CMpMCCCp1p SC411Cf5 lnspec}Dr: M- Hotfman Dgie 4-11-13 Maieridl Description Conorete -triable: Yes x No Qutrntliv: Approx 200 so . t Concrete slat pF shed t_Dcaiiort: i Scimp{e Numbers: F18-42, H18-43 %ommen�s: Matey=al in good condition 171E-43 APPENDIX B EMSL Analytical, Inc. EMSL Order: 171301639 <*— 19501 NE 10th Ave. Bay A, N. Miami Beach, FL 33179 CustomerlD: LJES057 Phone/Fax: (3051, 650-057 7 .; (305] 6 50-0 578 CustomerPO: WE] C+rvw+v.emsl.-orr mialnilabiaemsltorr: ProjectlD: Attn: Matt Hoffman Phone: (239) 995-1997 Universal Engineering Sciences Fax (239) 313-2347 5971 Country Lakes Drive Received. 04112113 12:50 P M Fort Myers, FL 33905 Analysis Date: 411812013 Collected: 411112013 i Project: Key Heights Dr. 10540.1300032.0000 Test Report: Asbestos Analysis of Bulk Materials via EPA 600/R-931116 and/or EPA 600/M4-82-020 Method(s) using Polarized Light Microscopy Non -Asbestos Asbestos Sam to Description Appearance % Fibrous % Non -Fibrous % Type H01.01 Sheetrockl Joint BrownlW hite 10% Cellulose 900/6 Non -fibrous (other) None Detected 17:301e39-oaal Compound Fibrous Heterogeneous Hot-02 Sheetrockl Joint Brown[While 10% Cellulose 90% Non -fibrous (other) None Detected Compound Fibrous .„30r s2s-aoa2 Heterogeneous H01-03 Sheetrockl Joint Brown/While 10% Cellulose 90% Non -fibrous (other) None Detected i 7' 307 E35 Z70IJ3 Compound Fibrous Heterogeneous H01-04 Sheetroek/ Joint TanNVhile 15% Cellulose 85% Non -fibrous (other) None Detected Compound Fibrous r 7 ^ 3[1 f 839-vA7a Heterogeneous H02-05 Surfacing Brown/White <1 % Cellulose 100% Non -fibrous (other) None Detected 7773a183sODpS Non -Fibrous Heterogeneous H02-06 Surfacing BrownANhite <1% Cellulose 100% Non -fibrous (other) None Detected 7130IE39-0006 Non -Fibrous Heterogeneous H02-07 Surfacing White 100"A Non -fibrous (other) None Detected 17f30f839-0007 Non -Fibrous Homogeneous H02-08 Surfacing BrownlW hire <1 % Cellulose 100% Non -fibrous (other) None Detected f"30f839-0008 Non -Fibrous Heterogeneous Analyst(s) rF fl i i /. 4� '_ire. 7'�,� L �7- Natasha Montoya (8) Kimberly Wallace, Laboratory Manager Robert Van (52} or other approved signatory EMSL maintains IIaNIrty limited to cost of analysis. Tnts report relates only to the samples feponMd and may no; be reproduced. eKcepI m full. without wniten approva! by EMSL. EMSL bears no responsibility for sample milection actimhes or analylica: melnod limitations Interpretation and use of test results are the responsibility of the client. This report must not be used by the client to ciaim proouct certihcation, approval, orendorsement by NVLAP. NISI p• any agency of the federal govemmem. Non -triable organically bound materials present a problem matrix and therefore EMSL recommends 9ram metnc red u;.hon prior to analysts Samples received in good condition unless oth erwse noted. Estmate d accuracy, precision and unCe no i my data available uoon req ues: ReportinG limit is 1% Samples analyzed by EMSLAnaiytica:. Inc N. Miami Beach FL NVLAP Lab Code 200204JD Initial report from 04/18/2013 12 44:30 Test Report PLM-7.28.7 Printed. 4/1812013 12:4420 PM 1 EMSL Analytical, Inc. EMSL Order: 171301839 19501 NE 10th Ave. Bay A, N. Miami Beach, FL 33179 CustomerlD: UES057 PhonelFax (305) 650-0577 ? (305) 650-0578 CustomerPO: httgmsi-cam miarrrilabr`gms. ^Uri ProjectlD: Attn: Matt Hoffman Phone: (239) 995-1997 Universal Engineering Sciences Fax (239) 313-2347 5971 Country Lakes Drive Received: 04/12/13 12:50 PM Fort Myers, FL 33905 Analysis [late. 4/18/2013 CNIected. 4/1112013 Project: Key Heights Dr. f 0540-1300032.0000 Test Report: Asbestos Analysis of Bulk Materials via EPA 6001R-931116 and/or EPA 5001M4-82-020 Method(s) using Polarized Light Microscopy n-Asbestp Asbestos Sample Descri tion Appearance u/ Fibrous % Non -Fibrous k Tvne H03-09A Floor Tile Red 100% Non -fibrous (other) None Detected Nan -Fibrous 7 f 30162y4)109 Homogeneous H03-"B Mastic Brown 100% Non -fibrous (other) None Detected Nor -Fibrous 17,'30t83b,00D9A Homogeneous H03-14A Floor Tile Red 100% Nan -fibrous {other] None Detected Non -Fibrous 77 3n rne4 �o,o Homogeneous H03-10B Mastic Brown <1% Cellulose 100% ikon -fibrous (other) None Detected Non -Fibrous 7 rsnfs3s�b roA Homogeneous H04-11 Ceiling Tile Brown/White 50% Cellulose 47% Non -fibrous (other) None Detected t�r3aae39oorr Fibrous 3% Glass Heterogeneous H04-12 Ceiling Tile Brown/White 50% Cellulose 47% Non -fibrous (other) None Detected r 7f3o1e3rtiror2 Fibrous 3% Glass Heterogeneous H04-13 Ceiling Tile Gray11V hate 50% Cellulose 47% Non -fibrous (other) None Detected �7s3D7839d1Q+3 Fibrous 3% Glass Heterogeneous H05-14 Roll Roofing Black 51r6 Glass 933% Non -fibrous (other) None Detected 17,307339-WI4 Non -Fibrous 2% Cellulose Heterogeneous Analyst(s) Natasha Montoya (8) Robert Van (52) Kimberly Wallace, Laboralory Manager or other approved signatory EMSL maintains liability limited to costal analysis. TrIS repot, relates only to the samples reported and may ndt be reproduced, except ir. full. w vLout watien approval by EMSL. EMSL bears no responsi bdrty for sample collection acti sties br analytical method J i m its tions. Interprela bon and use of lest iesu Its are the responsibility of the client This iepbr. must not be used by the cl lent to clarm product certification. approval. or endorsement by NVLAP NISI or any agency of Ihefederal omamment Non•fnaWe organically bound materias present a nrublam matrix and therefore EMSL recommends gravmetnc reduction prior to analyst$ Samples received in good condrlion unless athe se noted. Estmaled accuracy. precision and uncertaintydata available upon request Reportmg limit is I - Sam ples analyzec by EMSLAna lylicar. inc N. Miam Beacr R hIVLAP Lab Code 200204 0 Initial report from 04/18f2013 12:44:3D Test Report PLMr-7-28.7 Printed: 4/18/2013 12:44:30 PM 2 EMSL Analytical, Inc. EMSL Order. 171301839 19501 NE 10th Ave. Bay A N. Miartl Beach, FL 33179 CustomerlD: UES057 PhonelFax: (305) 650-0577 , (305) 650-0578 Cuslomei MID alwww.e m s!. c om UTWW hfdtem s l . com Project l D: Attn. Matt Hoffman Phone. (239) 995-1997 Universal Engineering Sciences Fax (239) 313-2347 5971 Country Lakes Drive Received: 04/12/13 12:50 PM Fort Myers, FL 33905 Analysis Date: 4/1812013 Collected 411112013 Project: Key Heights Dr. ! 0540.1300032-0000 Test Report: Asbestos Analysis of Bulk Materials via EPA 600/R-93/116 and/or EPA 600/M4-82-020 Method(s) using Polarized Light Microscopy Non -Asbestos Asbestos Sample Description Appearance k Fibrous % Non -Fibrous % Type H05.15 Rail Roofing Black 2% Cellulose 93% Non -fibrous (other) None Detected Fibrous 5% Glass 7 r30�839-0OT5 Heterogeneous H05-16 Roil Roofing $IacklSilver 2% Cellulose 93% Non -fibrous (other) None Detected Nan -Fibrous 5% Glass r7r3oa83s-0ots Heterogeneous H06-17 Concrete Gray 100% Non -fibrous (other) None Detected l7 t30r83@-0an Non -Fibrous Homogeneous HWIaA Concrete Gray 100% Non-flbrous (other) None Detected T71301639-0018 Non -Fibrous Homogeneous H07-19A Roll Flooring Green <1% Synthetic 100% Non -fibrous (other) None Detected r 7 r3or83S-0019 Non-Pibrous Homogeneous H07-19B Backing Gray 20% Cellulose 80% Non -fibrous (other) None Detected f 77 34 r 835-00 r 9A Fibrous Heterogeneous H07-20A Roll Flooring Green a1% Synthetic 100% Non -fibrous (other) None Detected 171301835-W20 NOrhFlbrQus Heterogeneous H07-20B Backing Gray 20% Cellulose 80% Non -fibrous (other) None Detected r7?34t839-W20A Fibrous Heterogeneous Analysts) Natasha Montoya (8) Robert Van (52) Kimberly W alIace, Laboratory Manager or other approved signatory EMSL maintains liability Itml ed to cost of analysis Tints reowl.. relates onIyto the samples re porteC and 'n"not be reproduced, except m iull. without wntter approval by EMSL EMSL Dears no res pony i bi lily for Sample collection acli Ati es or eno IAicai method II m iWion5 Inte rpreta bon and use a! les7 ies uit5 are the res ponsioi lily of the Own', This report must not be used by the ciie nt to Cl arw prodw! certifcabon. approval, or endorsement by NVLAi NISTd any agency of the federal governorenL Non -friable organically bound mate nags present a problem matrix and therefore EMS - recommends grawm en, reduction prior to analysts Samples received to good condition unless otherwise noted. Estimated accuracy. prects ion ono uncena i my data available upon request. Raoorh nc limit is 1 % Sampes an aly2ed by FMSLAnalytical, Inc. N. Miam, Beach. FL NVLAP Lab Code 200204-0 Initial report from 04/18/2013 12:44.30 Test Resort PLM-7.28.7 Printed: 4/1812013 12:44:30 PM 3 EMSL Analytical, Inc. EMSL Order: 171301839 <*— I)Vll�19501 NE 10th Ave. Bay A4 N. Miami Beach, FL 33179 Customerld- UES057 Phone/Fax: (305) 650-0577 ? (305) 650.0578 CustomerPO: nian t Iat�Cg ems I_c� Prgectl d : Attn: Matt Hoffman Phone: (239) 995-1997 Universal Engineering Sciences Fax. (239) 313-2347 5971 Country Lakes Drive Recelved: 04/12/13 12 50 PM Fort Myers, FL 33905 Analysis Date: 4/18/2013 Collected: 4/11/2013 Project: Key Heights Dr.10540.1300032.0000 Test Report: Asbestos Analysis of Bulk Materials via EPA 6001R-931116 andlor EPA 6001M4-82-020 Method(s) using Polarized Light Microscopy Non -Asbestos AsttE5tos Sample Description Appearance la Fibrous % Non -Fibrous % T e H08-21A Rdl Flooring Brown 100% Non -fibrous (other) None Detected Non -Fibrous f 7' 301839-0021 Homogeneous H08-21 B Backing Brown 15% Cellulose 85% Non -fibrous (other) None Detected Fibrous 17 ; 301839-0021 A Heterogeneous HOB-22A Roll Flooring Brown 100% Non-fibrous(other) None Detected Non-FibrousHomogeneous 177307839-0022 H05-22B Backing Brown 15% Cellulose 85% Non -fibrous (other) None Detected) 771307839-W22A Fibrous Heterogeneous HW23A Cove Base Black 1001A Non -fibrous (other) None Detected 713pT839-0023 Non -Fibrous Homogeneous H09-23B Mastic Brown ¢1 % Cellulose 100% Non -fibrous (other) None Detected i 7r30r839-0U23A Non -Fibrous Homogeneous H09-24A Cove Base Black 100% Non -fibrous (other) None Detected T7 3a783G-0024 Non-FIbrou3 Homogeneous H09-246 Mastic Brown <1 % Cellulose 100% Non -fibrous (other) None Detected 71301e39-724A Non -Fibrous Homogeneous Analyst(s) )Natasha Montoya (8j Kimberly Wallace, Laboratory Manager Robed Van (52) or other approved signatory EMSL maintains liability limited to cast of analysis. This report reiales only to the samples reponed and may nv1 be reproduced, except in full. withav w+rlters approval oy EMSL. EMSL bears no resaonsrbi lily for sample colhectton acti Hti as or analytical method limitations. Interpretation and use of test results are the responsibility of the client. This rayon must not be used bythe Gteni ra claim Prod Lint certdreatmn. approval, 0r endorsom enl by NVLAP, NIST Or any agency o! the federal government Nor�fna the orga ni catty bound materials present a problem matrix and therefore EMSL recommends grammatnc reduction prior to analysis Samples received in good condition unless otner-se noted. Estimated accuracy, precision and uncertainty data available upon request. Reportnq limit it 1 % S amyl es analyzed by EMSL Analytical, Inc. N. Miami Beach. FL NVtAP Lap Coda 200204-0 Initial repot) from 04/18/2013 12:44:36 Test Report PLM-7.28.7 Printed: 4/18/2013 12:44:30 PM 4 EMSL Analytical, Inc. EMSL Order 171301839 19501 NE 10th Ave, Bay A. N. Miami Beach, FL 33179 CustonleriD. UES057 PhornefFax: (305) 650-0577 ! (305) 650-0578 CustomerPO httnl+www.Qms1 com mlarnilab�a)emsi_norr ProjectID Attn- Matt Hoffman Phone- (239) 995-1997 Universal Engineering Sciences Fax (239) 313-2347 5971 Country Lakes Drive Received' 04?1211312:50 PM Fort Myers, FL 33905 Analysis Date: 4/18/2013 Collected. 4/11 /2013 Protect: Key Heights Dr. 10540,1300032.0000 Test Report: Asbestos Analysis of Bulk Materials via EPA 6001R-931116 andlor EPA 6001M4-82-020 Method(s) using Polarized Light Microscopy Asbestos Asbestos Sample_ Description Appearance % Fibrous % Non -Fibrous % Type__ H14.25 - Stucco i .., White <1% Cellulose 100% Non -fibrous (other) None Detected Non -Fibrous 17f307635-0025 Homogeneous H 10-26 Stucco Gray/White <1 % Cellulose 100% Non -fibrous (other) None Detected Non -Fibrous 171301835�26 Homogeneous 130.27 Stucco Gray/White <1% Cellulose 100% Non-fibrous(other) None Detected Non -Fibrous �'???F39 7027 Heterogeneous H11-28 Roll Roofing Black 5% Glass 90% Non -fibrous (other) None Detected r: �rs3s ooze Fibrous 5% Cellulose Heterogeneous H11-29 Roll Roofing Black 5% Glass 90% Non -fibrous (other) None Detected 71 ra?s3s oozy Fibrous 5% Cellulose Heterogeneous H12-30 Mastic Black <1% Synthetic 100% Non -fibrous (other) None Detected f7*301839-0030 Non -Fibrous [1% Ceulose Heterogeneous H13-31A Floor Tile Blue 100% Non -fibrous (other) None Detected ?7130r835-0037 Non -Fibrous Homogeneous H13-31 B Mastic Brown <1 % Cellulose 100% Non -fibrous (other) None Detected 771301836 ?fA Non -Fibrous Homogeneous Analyst(s) Natasha Montoya (8) Roberf Van (52) Kimberly Wallace, Laboratory Manager or other approved signatory EMSL maintains IIablliry I'm 'led to cost of anaeysis. This repay relates only to the samples reported and may not be reproduced, except in full. witnou, written approval by EMSL. EMSL bears no re sponsi biirty for sample corlecti on acts vi tie5 0r analytica' method limitations. Interpretation and use df test res un=_ are the re5ponsibi l ity of the clism. This report must not be used by the client to caim produce certrfrca[ion, approval, or endorsement by NVLAP- NIST a! any agencyaf the federal govemm ens, Wn-friable organically bound matenaIs present a problem matrix and therefore EMSL rec ommenas gra vim etric reducl ion prig: to analysis Samples received to good condition unless otherwise notes Estimated accuracy. preci sior. anc unt ertarnry data available upon request Repaid n5 limit is 1% Sam pl as ana+yzed by EM SL An a lAcal. Inc. N Miami Beacr FL NVLAP Lab Code 200204.0 Initial report trout 04/18/2013 12.44:30 Test Report PLM-7.28.7 Printed: 4118/2013 12.44:30 PM 5 EMSL Analytical, Inc. EMSL Order: 171301839 19S01 NE 10th Ara. Bay A N. 1Niami Beach, FL 33179 CustorrlerlD. UES057 Phone]Fax (305) 850-0577 ! (305) 650-0579 CustomerPO. http•flwWW entsl -om rnlamilaholems: �2rr. PrgectID: Attn: Matt Hoffman Phone. (239) 995-1997 Universal Engineering Sciences Fax (239) 313-2347 5971 Country Lakes Drive Received• 0411Z13 12 50 PM Fort Myers, FL 33905 Analysis Date. 41l$12013 Collected: 4/11120'. 3 Prgecl. Key Heights Dr. 1 0540-1300032.0001) Test Report: Asbestos Analysis of Bulk Materials via EPA 600/R-931116 and/or EPA 6001M4-82-020 Method(s) using Polarized Light Microscopy Non -Asbestos Ashestos Sample Description Appearance % Fibrous % Non -Fibrous r °I° Type H13.32A Floor Tile Blue 100% Non -fibrous (other] None Detected Non -Fibrous 7+307839-0637 Homogeneous H13-32B Mastic Brown 2% Cellulose 98% Non -fibrous (other) None Detected Nan -Fibrous 171301839-002PA Homogeneous H14-33A Floor Tile Tan 100% Non -fibrous (other) None Detected Nord=fibrous t 7.30t835•p433 Homogeneous H14-33B Mastic While <1% Cellulose 100% Non -fibrous (other) None Detected 171301e3s-W3aA Non -Fibrous Homogeneous H14-34A Floor Tile Tan 100% Nan -fibrous (other) None Detected t 7'.301fi39-X34 Non -Fibrous Homogeneous H14-34B Mastic While <1% Cellulose 100% Non -fibrous {other} None Detected 17; 301E39-0034A Non -Fibrous Homogeneous H14-35A 5heetrock Brown/White 10% Cellulose 90% Non -fibrous (other) None Detected 171307 63y_X35 Fibrous Heterogeneous H14-358 Surfacing White 5% Cellulose 95% Ikon -fibrous (other) None Detected 17�301839-0035A Non -Fibrous Homogeneous Analyst(s) Natasha Montoya (a) Robert Van (52) Kimberly Wallace, Laboratory Manager or other approved signatory EMSL ma+ntains liabi�1��,' alysis. T1115 repot: relates only to thg samples re➢ones and may nct ee reproducedexcept in Eullwithp.+t wrinen approval by EMSL. EMSL bearnO re5ppp5ibitgy to- samor anayhca! rnelhod Iim Patiens. tnl erpretatipn and use o! lest re5ut[s are the responsibility of the Ci+entS remnot be usbythnt product cnt by NVLAP NtST o• any agency of the federal government Non-f;tapl2 °rga,nicaily hpltnd rn ate++als presen! a prohtem matrix and therefore EMSL recommenCs pro wmetnc reduction prior to analysis Samples receiveG m govd cnntlition unless o:nennse nflted Estimatetl accuracy, precision and un.el7ai my tlata available upon request RepertinG Irmit 15 '"v Samples analyzed by EMSL Analyl+ca?. Inc. N. Miam Beacn. FL NVLAP Lau Code 200204-0 nitial report from D4/1&2013 12:44:30 Test Reow PLM-7.28.7 Printed: 4/18/201 a 12A-4:30 PM 6 EMSL Analytical, Inc. EMSL Order. 171301839 <*- 19501 NE loth Ave. Bay A, N. Miami Beach, fL 33179 CustomeriD: UES057 PhonelFax: ;.305) 650-0577 (305) 65b-0578 GustomerPO: h m t nlil m ProjectlD Attn: Matt Hoffman Phone (239) 995-1997 Universal Engineering Sciences Fax (239) 313-2347 5971 Country Lakes Drive Received: 04/12/43 12.50 PM Fort Myers, FL 33905 Analysis Date: 411812013 Colkerted: 411112013 Project: Key Heights Dr.10540-1300032.0000 Test Report: Asbestos Analysis of Bulk Materials via EPA 6001R-931116 and/or EPA 6001M4-82-020 Method(s) using Polarized Light Microscopy Non -Asbestos Asbestos sample Description Appearance % Fibrous % Non -Fibrous % Type H15-36A Sheetrock BrownlWhae 10% Cellulose 90% Non -fibrous (other) None Detected Nor -Fibrous ;7 Sote35ac3s Homogeneous H15-365 Surfacing White 5% Cellulose 95% Non-fbrous (other) None Detected Non -Fibrous t"301835-W3SA Homogeneous H15-37A Sheetrock Gray/Tan 10% Cellulose 90% Non -fibrous (other) None Detected Fibrous 171307839-003' Heterogeneous H15-37B Surfacing White <1% Cellulose 100% None -fibrous (other) None Detected Non -Fibrous 7 7' 301839-G037A Homogeneous H15.38A Floor Tile Tan 97 /1, Non -fibrous (other) 3% Chrysotile Non -Fibrous 171301839•0038 Homogeneous H15-38B Mastic Yellow 100% Non -fibrous (other) None Detected Non -Fibrous ]? 7301839-0G3aA Homogeneous H15.39A Floor Tile Tart 97% Non -fibrous (other) 3% Chrysotite 7 7 ] 3Q t 839-0C39 Non-Fi brou s Homogeneous H 16-39B Mastic Yellow 100% Non -fibrous (other) None Detected 17t3n1839-W39A Non -Fibrous Homogeneous Analyst(s) Natasha Montoya (8) Robert Van (52) Kimberly W all ace, Laboratory Manager or other approved signatory EMSL maintains liability limited to cost of analysis. This reWr,'elates only to rive samples reported aria may not oe reproduced, except it full, witnout wrrft�n approval by EMSL. EMSL bears no rm pens/bit itv fo- 5a mole mliection acti Lilies or an alytiCaI method tlm itati ons. interpretation and use of test resell is are the responsibility of the client. This repdrt must nDt be used by the client to Clarrr• p:oduc. cenif cation, approval, or endorsement by NVLAo• NtST or any agency of tha federal govern-em. Non -friable organically bound materials present. a problem matnx and therefore EMSL recpmmentls graNm eldc reduction prior to analysis Samples recerved it good condition unless otherwse noted Esomated accuracy, precision anc uncenamry data available upon request. RePOrting Ilmi'is'rc Samples analyzed by EMSL An a Iytl cal. inc N. Miam; aea&. Ft. NVLAP Lab code 200204.0 Initial report from 04/18/2013 12:44:30 Test Report PLM-7.28.7 Printed: 411 &2 013 12:4-4:30 PM 7 EMSL Analytical, Inc. EMSL order 171301839 19501 NE loth Ave. Bay A, N. Miami Beach, FL 33179 CustomerlD: UE5057 Phone/Fax: (305) 650-0577 r (305) 650.0578 CustomerP0. fitto:llwww.emsi.c�m mia_raL-LrMeM5!. Oro ProjectlD Ann= Matt Hoffman Phone: (239) 995-1997 Universal Engineering Sciences Fax- (239) 313-2347 5971 Country Lakes Drive Received. 04/12113 12:50 PM Fort Myers, FL 33905 Analysis Date: 4118/2013 Cdlected: 411112013 Project: Key -Heights Dr. 1 0540.1300032.0000 Test Report: Asbestos Analysis of Bulk Materials via EPA 600/R-93/116 and/or EPA 600/M4-82-020 Method(s) using Polarized Light Microscopy Non -Asbestos A§bestos Sample Description Appearance % Fibrous % Non -Fibrous % Type H1740 Concrete White 100% Non-fibrous(other) None Detected rr r 30fs35-aa4c Non -Fibrous Homogeneous H 17-41 Concrete White <1 % Cellulose 100% Non -fibrous (other) None Detected 171XI839-0047 Non -Fibrous Homogeneous H1842 Roofing Black 5% Cellulose 92% Non-fibrous(other) None Detected T 7' 30 f 839-W 42 Fibrous 3% Glass Heterogeneous H18-43 Roofing Black 5% Cellulose 92% Non -fibrous (other) None Detected 177307839-W43 Fibrous 3% Glass Heterogeneous Analyst(s) Na[asha Montoya (8) Kimberly Wallace. Laboratory Manager Robert Van (52) or other approved signatory EMSL maintains Ira bltity limited to cost of analyss. This report mates Ord to the samples reported and may not be reproduced. except in tut:, witho,_R written approval by EMSL EMSL bears no responsibility for sarnole wiiection actiuhes or anatyLcal melhod limitations. Interpretation and use of rest results ace the responsibility of the client This report must not be used by the Client to claim product ce6f,catian. approval, or eadorsament by NVLAP. Nl$T or any agency of the fed aral government- Nor -friable organicallybound materiat$ present a problem matrix and therefore EMSL recommends grammetnc reduction prior to analysis. Samples received in good condition unless otherwise poled Estimated accuracy, precision ano uncenarnly data aveilabte upon request Reporting limit is 1% Samples analyzed by EMSL Analytical, Inc. N Miami Beam FL NVLAP Lab Code 200204.0 Initial reporifrom 04l1$12013 12.44 30 Test Resort PLM-7,28-7 Printed 4/18/2013 12:44:30 PM THIS IS THE LAST PAGE OF THE REPORT. 8 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: May 15, 2013 Division: Engineering & Public Works Bulk Item: Yes X No _ Department: Public Works Staff Contact Person/Phone #:Wilson (453-8797) AGENDA ITEM WORDING: Approval of sale of County property to Islamorada, Village of Islands, legally described as Lot 1, 2, and 24, Block 11 of Key Heights Section Two, (RE#00417340-000000), located at 103 Key Heights Drive, Islamorada, at the NW corner of the intersection of US-1 and Key Heights Drive for use as a sewer pump station by the Village; approval of a Resolution authorizing the sale as prescribed by statute, the purchase and sale contract with the Village, and execution of deed, seller's affidavit, and other documents as required for completion of the transaction as approved by the County Attorney. The proposed net sales price including transfer of the eight (8) Transient Residential Units (TRU) that are legally established on the property is $510,000. ITEM BACKGROUND: The Village of Islamorada's sewer system design requires a pump station in the area of the Plantation Key Government Center property. Several options have been considered over the last several years including locating it on the site of the existing on -site sewer plant and on a County owned property at the intersection of US-1 and Lysiloma Lane. The selected site is used only for equipment storage and initial findings of the County wide space utilization study is already pointing to a conclusion that that storage site would be best relocated further north. Interim storage for the equipment is available on the existing property behind the Spottswood Building with minimal impact on operations. PREVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: TOTAL COST: NONE INDIRECT COST: Staff Time BUDGETED: Yes No X DIFFERENTIAL OF LOCAL PREFERENCE: N/A COST TO COUNTY: N/A SOURCE OF FUNDS: N/A REVENUE PRODUCING: Yes X No AMOUNT PER MONTH Year APPROVED BY: County Atty OMB/Purchasing Risk Management DOCUMENTATION: Included X DISPOSITION: Revised 7/09 Not Required AGENDA ITEM # C-42 with Additional backup materials Resolution Authorizing Sale RESOLUTION No. 4013 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 103 KEY HEIGHTS DRIVE, LEGALLY DESCRIBED AS LOTS 1,2, AND 24, BLOCK 11 OF KEY HEIGHTS, SECTION TWO ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 3, PAGE 159 OF THE PUBLIC RECORDS OF MONROE COUNTY, FLORIDA, TO ISLAMORADA, VILLAGE OF ISLANDS; AUTHORIZING THE MAYOR AND MAYOR PRO TEM, CHAIRMAN AND VICE — CHAIRMAN RESPECTIVELY TO EXECUTE DOCUMENTS TO CONVEY THE PROPERTY AND AUTHORIZING THE COUNTY ADMINISTRATOR TO EXECUTE ANCILLARY CLOSING DOCUMENTS WHEREAS, Monroe County (County) owns real property within the municipal limits of Islamorada, Village of Islands (Islamorada), located at 103 Key Heights Drive legally described as: Lots 1, 2, and 24, Block 11, of KEY HEIGHTS, SECTION TWO according to the plat thereof, recorded in Plat Book 3, page 159, of the Public records of Monroe County, Florida (Property) having Parcel ID# 00417340-000000, and WHEREAS, Islamorada, Village of Islands, is a Florida municipal corporation; and WHEREAS, the County may convey the Property to a municipality with an accompanying resolution pursuant to Florida Statute Sec. 125.38; and WHEREAS, the Property is currently used by the County for equipment storage which would be better located elsewhere for County use; and WHEREAS, Islamorada has applied to purchase the Property for a pump station site for its wastewater treatment system and the County is satisfied that the property is necessary for such use; and WHEREAS, the County no longer has a need for the Property; and Final Resolution Sale 103 Key Heights Drive WHEREAS, the price agreed to by the County and Islamorada is $_ NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: I. The Board approves the sale of the Property to Islamorada, Village of Islands, for the aforementioned sum pursuant to the Purchase and Sale Agreement attached hereto. 2. The Mayor/Chairman or Mayor pro tem/ Vice Chairman of the Board of County Commissioners of Monroe County is authorized to execute those documents necessary to convey the Property. 3. The County Administrator or his designee is authorized to execute ancillary documents as necessary for, or at, the closing transaction to carry out the purpose of this Resolution and facilitate the sale and closing of the Property including any personalty. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida at a regular meeting held on the day of .2013. Mayor George Neugent Mayor pro tem Heather Carruthers Commissioner Danny L. Kolhage Commissioner David Rice Commissioner Sylvia Murphy MONROE COUNTY BOARD OF COUNTY COMMISSIONERS By Mayor George Neugent Attest: AMY HEAVILIN, CLERK By Deputy Clerk 610,NROE COUNTY ATTORNEY PPROV D AS ORM' SUSAN hCGRIOISLEY Final Resolution AS S CANT COUN ATTORNEY Sale 103 Key Heights Drive �at� ._ :? G I Z Purchase & Sale Contract PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made and entered into as of the day of , 2013, by and between MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida (hereinafter referred to as "Seller"), and ISLAMORADA, VILLAGE OF ISLANDS, a Florida municipal corporation (hereinafter referred to as "Purchaser"). WHEREAS, Seller is the owner of certain improved real property consisting of approximately 27,442 square feet or 0.63 acres located at 103 Key Heights Drive, in Islamorada, Village of Islands ("Village"), Monroe County, Florida, and more specifically described on Exhibit "A" attached hereto and made a part hereof; and WHEREAS, Purchaser desires to purchase for the purpose of constructing and operating a vacuum pump station on the Property (hereinafter defined) and related wastewater uses in connection with Purchaser's centralized wastewater system, and Seller desires to sell the Property, upon the terms and conditions hereinafter set forth. NOW, THEREFORE, for and in consideration of the mutual covenants and promises contained herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Purchaser and Seller agree as follows: SECTION 1: DEFINITIONS For purposes of this Agreement, each of the following terms, when used herein with an initial capital letter, shall have the following meaning: 1.1 Business Day. Monday through Friday excluding bank holidays on which national banking associations are authorized to be closed. 1.2 Closm . The Closing and consummation of the purchase and sale of the Property as contemplated by this Agreement. 1.3 Closing Date for Date of Closing). The date upon which Closing occurs. 1.4 Condemnation Pro inQ. Any proceeding or threatened proceeding in condemnation, eminent domain or written request in lieu thereof. 1.5 Deed. The deed of conveyance of the Property from Seller to Purchaser. 1 1.6 Effective Date. The date when the last one of Seller or Purchaser has signed and initialed all changes to this Agreement. 1.7 Environmental Reports. The environmental assessment audits conducted on behalf of Purchaser or by Purchaser's environmental engineers, at Purchaser's expense, with respect to the Property, certified and delivered to Purchaser, including the Phase I Environmental Site Assessment Report prepared by Arcadis, dated December 27, 2012 (as to Lot 24 of the Property), Phase I Environmental Site Assessment Report prepared by Universal Engineering Sciences, Inc., dated May 3, 2013 (as to Lots 1 and 2 of the Property), the Phase II Environmental Site Assessment Report prepared by Universal Engineering Sciences, Inc., dated May 2, 2013, and the Asbestos Containing Building Material Survey prepared by Universal Engineering Sciences, Inc., dated May 1, 2013. 1.8 Evidence of Authority. Evidence of authority for the execution and performance of this Agreement by Seller including, without limitation, necessary resolutions, authorizations, consents, orders or directions. 1.9 Governmental Authority. Any federal, state, county, municipal or other entity, authority, commission, board, bureau, court, agency or any instrumentality of any of them. 1.10 Hazardous Substances. Any material or substance that, whether by its nature or use, is now or hereafter defined as hazardous waste, hazardous substance, pollutant or contaminant under any Legal Requirement, or which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous and which is regulated under any Legal Requirement, or which is or contains petroleum, gasoline, diesel fuel or another petroleum hydrocarbon product. 1.11 Improvements. All buildings, structures, fixtures, including, without limitation, all utility systems and drainage facilities, if any, and other improvements and facilities located on the Land, including an existing motel building currently in use by Seller as County administrative offices, and for storage of equipment and vehicles. 1.12 Intangible property. All intangible property owned by Seller and used in connection with or relating to the ownership, use, development, operation, management, occupancy or maintenance of the Land including, but not limited to, the permits, development rights, eight (8) transient motel units, and all public and private contract rights and development or usage rights of Seller with respect to the Land. 1.13 Land. The unproved real property consisting of approximately 27,442 square feet or 0.63 acres, as more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, and appurtenant easements thereto, together with all of Seller's right, title and interest in and to all easements, rights of way, strips and gores of land, 2 tenements, hereditaments and appurtenances, reversions, remainders, privileges, licenses and other rights and benefits belonging to, running with or m any way relating thereto; together with all right, title and interest of Seller (if any) in and to any land lying in the bed of any street, road or highway, open or proposed, in front of, abutting or adjoining the Land. 1.14 Legal Requirement. All laws, statutes, codes, acts, ordinances, orders, judgments, decrees, injunctions, rules, regulations, permits, licenses, authorizations, directions and requirements of all Governmental Authorities and quasi -governmental authorities, officials, agencies, and officers, ordinary or extraordinary, including any and all environmental laws, statutes, codes, acts, ordinances, orders, judgments, decrees, injunctions, rules, regulations, permits, licenses, authorizations, directions and requirements relating to or addressing the protection of the environment or human health, which now may be applicable to the Property or any use, operation or condition thereof. 1.15 Monetary Lien. Any mortgage, deed of trust, security deed, lien, monetary judgment, security interest, past due tax or assessment or other similar encumbrance of a monetary nature against the Property or any portion of the Property. 1.16 Owner's Title Policy. An Owner's marketability policy of title insurance on the most current ALTA Form for the Property in the amount of the Purchase Price, subject only to the Permitted Exceptions, and containing such additional endorsements permitted under Florida title insurance regulations as reasonably requested by Purchaser. 1.17 Permits. All consents, notices of completion, environmental and utility permits and approvals authorizations, variances, waivers, licenses, permits, certificates and approvals from any Governmental Authority or quasi -governmental authority issued or granted with respect to the Property now or prior to Closing. 1.18 Permitted Exceptions. Those matters identified or referred to in Section 5.3 and such other title exceptions as may hereafter be approved in writing (or deemed to have been approved by Purchaser) subject to and in accordance with the terms and provisions of Section 5 herein. 1.19 Person. Any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, institution, entity, party or government (whether national, federal, state, county, city, municipal or otherwise, including, without limitation, any instrumentality, division, agency, body or department thereof). 1.20 Property. The following shall constitute the Property: 1.20.1 The Land; 3 1.20.2 The Improvements; and 1.20.3 The Intangible Property and all interests of Seller therein. 1.21 Purchaser's Attorney. Weiss Serota Helfman Pastoriza Cole & Boniske, P.L., Attention: Lillian M. Arango, Esq. Purchaser's Attorney's mailing address is 2525 Ponce de Leon Blvd., Suite 700, Coral Gables, Florida 33134. Telephone: (305) 854-0800; Telecopier: (305) 854-2323. 1.22 Seller's Attorney, Susan Grimsley, Esq, Monroe County Attorney's Office. Seller's Attorney's mailing address is 1111 12th Street, Suite 408, Key West, Florida 33040. Telephone: (305) 292-3470; Telecopier: (305) 292-3516. 1.23 Survey. A survey of the Property prepared on behalf of Purchaser by a licensed surveyor in the State of Florida, certified as meeting the minimum standards for survey in the State of Florida. The Survey shows (i) the square footage and acreage of the Land, (ii) the location of all the improvements, utility and other lines and easements, either visible or recorded, and the recording references of all the recorded easements shown on the Title Commitment, (iii) the elevation and flood zone information, and (iv) contain such other items as may be reasonably required by Purchaser. 1.24 Title Commitment. The commitment for title insurance obtained by Purchaser pursuant to Section 5 below. 1.25 Title Company. Chicago Title Insurance Company or such other nationally recognized title insurance company licensed to write title insurance in the State of Florida approved by Purchaser. SECTION 2: PURCHASE AND SALE Purchaser shall purchase the Property from Seller, and Seller shall sell, convey, transfer and assign the Property to Purchaser, subject to and in accordance with the terms and conditions of this Agreement. SECTION 3: EARNEST MONEY Intentionally Deleted. No Earnest Money or Deposit shall be required from Purchaser. SECTION 4: PURCHASE PRICE The purchase price for the Property shall be Five Hundred and Thirty Thousand and No/100 Dollars ($530,000.00) (herein referred to as the "Purchase Price"). The entire Purchase 4 Price, subject to adjustments, prorations and credits as herein provided, shall be due and payable by cashier's check or in immediately available funds by wire transfer, at Closing. SECTION 5: TITLE/SURVEY Title to the Property shall be good and marketable and insurable fee simple title in an amount of the Purchase Price at no more than the Title Company's ordinary or promulgated rates for the Owner's Title Policy. Seller shall deliver such affidavits and agreements as may be reasonably required by the Title Company in order to issue the Owner's Title Policy in accordance with this Agreement. 5.1 Examination of Title. Purchaser has obtained, at Purchaser's expense, an ALTA marketability title insurance commitment (the "Title Commitment") issued by the Title Company with an effective date of March 31, 2013 covering the Land pursuant to which the Title Company agrees to issue the Owner's Title Policy to Purchaser. The cost of the Title Commitment and the Owner's Title Policy shall be paid by Purchaser. 5.2 Survey. Purchaser has obtained, at Purchaser's expense, a Survey of the Property from CPH dated December 12, 2012, under Project No. 44300-00. The cost of the survey shall be paid by Purchaser. 5.3 Permitted Exceptions. The sale of the Property shall be subject to the permitted title exceptions as set forth herein below: 5.3.1. The lien of all ad valorem real estate taxes for the year in which Closing occurs, to the extent applicable and should the property not be exempt from taxation, subject to proration as herein provided; 53.2. Any items shown on the Title Commitment, including the PIat of Key Heights, Section Two, as recorded in Plat Book 3, Page 159, of the Public Records of Monroe County, Florida; (ii) Easement in favor of Florida Keys Electric Cooperative Association, Inc., recorded January 31, 1980, in Official Records Book 805, Page 464, of the Public Records of Monroe County, Florida; and (iii) Easement in favor of Florida Keys Electric Cooperative Association, Inc., recorded October 1, 1981, in Official Records Book 840, Page 1365, of the Public Records of Monroe County, Florida 53.3 All laws, ordinances, and governmental regulations, including, but not limited to, all applicable building, zoning, land use and environmental ordinances and regulations; and 5 5.3.4 All matters shown on the Survey of the Property provided that the foregoing exception shall not be deemed to limit the rights and obligations of the Purchaser and Seller as set forth in Sections 5.4 and 5.5 below. The above items described in this Section 5.3 are herein collectively referred to as the "Permitted Exceptions". 5.4 Objections to Title/Survey. If any title matter other than a matter disclosed in the Title Commitment or the Survey arises or becomes known to Purchaser subsequent to the date of the Title Commitment (a "New Title Matter") and such New Title Matter (a) is a Monetary Lien or (b) was created or consented to by Seller, then Seller shall cure the New Title Matter, at Seller's expense, on or before Closing. If the New Title Matter constitutes a Monetary Lien, then Seller shall pay the amount due in satisfaction of each such Monetary Lien as to the Property only (or, subject to Purchaser's reasonable approval, otherwise cause the same to be removed as an exception in the Title Commitment) which amount, at the option of Seller, may be paid from the proceeds of the Purchase Price at Closing. If one or more Monetary Liens have not been satisfied before the Closing Date, then Purchaser is hereby authorized to satisfy such Monetary Liens from the proceeds of the Purchase Price at Closing. If the New Title Matter is not a Monetary Lien or was not created or consented to by Seller, then Seller shall have until the earlier of (i) five (5) Business Days of Seller's receipt of written notice thereof or (ii) the Closing Date, within which to cure the same, and if such New Title Matter is not cured within such period, then Purchaser may, at its sole option, exercised by written notice to Seller within five (5) Business Days following the expiration of the five (5) Business Day cure period, either (i) terminate this Agreement or (ii) elect to close subject to such New Title Matter. In the event of termination, neither party hereto shall have any further rights, obligations nor liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination of this Agreement. 5.5 Extension of Closing Date. The Closing Date shall be automatically extended to allow all time periods specified in this Section 5 to expire. SECTION 6: SELLER'S REPRESENTATIONS AND WARRANTIES Seller represents and warrants to Purchaser and covenants and agrees with Purchaser, on and as of the date hereof, to be certified to Purchaser on or as of the Closing, as follows: 6.1 Title. Seller is the fee simple owner of the Property free and clear of all encumbrances except for the Permitted Exceptions. There are no parties with a right to ownership, possession or use of the Property, including tenants, lessees, leaseholders, or other occupants of the Property, and prior to Closing any such lease, tenancy, or other form of interest or occupancy shall be terminated and the Property shall be free of such as it is free of all other encumbrances except for the Permitted Exceptions. 2 6.2 Organigation. Power and Authority. Seller is a political subdivision of the State of Florida, duly formed, validly existing and in good standing under the laws of the State of Florida. Seller has obtained all necessary authorizations and power to execute and deliver this Agreement and perform all its obligations hereunder. The execution, delivery and performance of this Agreement by Seller (i) has been duly and validly authorized by all necessary action on the part of Seller, including all required resolutions and authorizations from the Board of County Commissioners of Monroe County, Florida, and (ii) does not conflict with or constitute a breach of, or constitute a default under, any contract, agreement or other instrument by which Seller or the Property is bound or to which Seller is a party. 6.3 No Conflict with Laws. The execution and delivery of this Agreement by Seller and the performance by Seller of its obligations hereunder will not conflict with or result in a breach of any order, judgment, writ, injunction or decree of any court or Governmental Authority. 6.4 No Bankruptcy. Seller is not a party to any voluntary or involuntary proceedings under any applicable laws relating to the insolvency, bankruptcy, moratorium or other laws affecting creditors rights to the extent that such laws may be applicable to Seller or the Property. 6.5 No Litigation. Seller is not a party to or affected by any litigation, administrative action, investigation or other governmental proceeding which would or could have an adverse effect upon the Property or upon the ability of Seller to fulfill its obligations under this Agreement. There are no lawsuits, administrative actions, governmental investigations or similar proceedings pending or threatened against or adversely affecting the Property or any portion thereof or any interest therein. 6.6 Permits. All Permits and approvals required for the lawful operation, use and development of the Property have been issued and paid for and are in full force and effect. 6.7 Legal Requirements. Except as set forth in the Environmental Reports, the Property is in compliance with the zoning, subdivision and all other Legal Requirements. 6.8 Compliance. Except as set forth in the Environmental Reports, the Property is not in violation of any Legal Requirements. 6.9 No Violations. There are no presently outstanding and uncured notices of any violations of any Legal Requirements. 6.10 Utilities. All public utilities (including, without limitation, sanitary sewer, storm sewer, electricity, gas, water and telephone) which have been installed in connection with the Property or any part thereof, if any, are installed and operating and have been accepted by such utility company or governmental authority. Except for the Phase I Wastewater Assessments due the Village on the Property, all installation and connection fees, "tie-in" charges, impact fees, tap -on, permit and other fees with respect to the utilities or facilities now serving the Property, including, but not limited, to water, electric, telephone and gas, have been fully paid, except for monthly utility service bills which will be paid prior to delinquency. Seller has not received any complaint or claim with respect to storm water flow from any owner of adjacent property or otherwise. All such public utilities either enter the Land through adjoining public streets or, if they pass through adjoining private land, do so in accordance with valid and recorded public easements or private easements which inure to the benefit of Purchaser. 6.11 Condemnation. To Seller's actual knowledge, there are no proceedings pending or threatened against or affecting the Property or any portion thereof or interest therein in the nature of or in lieu of condemnation or eminent domain proceeding. 6.12 Assessments. Except with respect to the Phase I Wastewater Assessments levied by the Village on the Property, Seller has no actual knowledge and Seller has not received written notice of any assessments by a public body or state imposed, contemplated or confirmed and ratified against any of the Property for public or private improvements which are now or hereafter payable. 6.13 Contractors. All contractors, subcontractors, architects, materialmen, laborers, suppliers and other parties who have performed or furnished work, labor, materials, equipment or supplies or have labored on the Property to make improvements thereon or otherwise to improve the Property are paid in full, and there are no unpaid claims related to work that has been completed or is in progress. 6.14 Hazardous Substances on Property. Except as set forth in the Environmental Reports, Seller has not caused Hazardous Substances to be discharged, disbursed, released, stored, treated, generated, disposed of, or allowed to escape on, in, or under the Property in a manner which violates any Legal Requirements regulating such substances and, other than as specifically set forth herein, to the best of Seller's knowledge, no other Person has caused Hazardous Substances to be discharged, disbursed, stored, treated, generated or allowed to escape on, in or under the Property. Except as set forth in the Environmental Reports, no asbestos or asbestos containing materials have been installed, used, incorporated into, or disposed of on the Property by Seller, or, to the best of Seller's knowledge, by any other Person. No PCBs have been located on or in the Property, whether in electrical transformers, fluorescent light fixtures with ballasts, cooling oils, or otherwise, by Seller or, to the best of Seller's knowledge, by any other Person. No underground storage tanks are currently located on, at or under the Property. To best of Seller's knowledge, no investigation, administrative order, consent order or agreement, litigation, or settlement with respect to Hazardous Substances is proposed, threatened, anticipated or in existence with respect to the Property. The Property has not previously been used as a landfill, a cemetery, or a dump for garbage or refuse by Seller or, to the best of Seller's knowledge, by any other Person. Purchaser has received Environmental Reports performed on the Property. Seller has agreed to adjust and 8 reduce the Purchase Price at Closing in the amount of Twenty Thousand and No/100 Dollars ($20,000.00) in connection with any costs for removal, remediation or cleanup of any Hazardous Substances or other substances on the Property which may be incurred by Purchaser, and any and all other costs for removal, remediation or cleanup of any Hazardous Substances or other substances shall be the responsibility of Purchaser. Notwithstanding the foregoing adjustment or reduction in the Purchase Price, Purchaser shall not be required or obligated to perform any removal, remediation or cleanup of Hazardous Substances or other substances on the Property, and shall not be required or obligated to use such sum for such purposes. 6.15 No Rights to Purchase. Except for this Agreement, Seller has not entered into, and has no actual knowledge of any agreement, commitment, option, right of first refusal or any other agreement, whether oral or written, with respect to the purchase, assignment or transfer of all or any portion of the Property which is currently in effect. 6.16 No Latent Defects. To Seller's actual knowledge, the Property has no hidden or latent defects. 6.17 Parties in Possession. Other than Seller, there are no parties in occupancy or possession of any portion of the Property as lessees, tenants at sufferance or trespassers. Seller agrees to clean up and remove all abandoned personal property, trailers, refuse, garbage, trash and debris from the Property to the satisfaction of the Purchaser prior to the Closing Date. 6.18 Entrances and Exits. All current curb cuts, entrances and exits to the Real Property are lawful and permitted. 6.19 Access. There is permanent vehicular and pedestrian egress from and egress to the Land over public roads that abut the Land. 6.20 No Commitments to Dedicate Proper_yt . No commitments or agreements have been or will be made to any Governmental Authority, utility company or any other organization, group or individual, relating to the Land which would impose an obligation upon Purchaser to make any contributions or dedications of money or land to construct, install or maintain any improvements of a public or private nature on or off the Land, or otherwise impose liability on Purchaser. 6.21 Adverse Conditions. Seller has no actual knowledge of any adverse fact relating to the physical condition of the Land which has not been specifically disclosed in writing to Purchaser, including, without limitation, adverse soil conditions. 6.22 Unrecorded Agreements Restricting Use of the Property. Seller has not, nor to Seller's actual knowledge has any predecessor in title, executed or caused to be executed 9 any document with or for the benefit of any Governmental Authority restricting the development, use or occupancy of the Property that is not recorded in public records of Monroe County or has not been specifically disclosed in writing to Purchaser. 6.23 Survival. The foregoing representations, warranties, covenants and agreements of Seller in this Section 6 shall survive the Closing or termination of this Agreement. 6.24 Actual Knowledse. As used in this Agreement or in any Exhibit attached hereto, any reference to actual knowledge shall with respect to Seller mean the actual knowledge of Seller and its agents, officers and employees who have any association with the ownership, operation and use of the Property. SECTION 7: PURCHASER'S REPRESENTATIONS AND WARRANTIES Purchaser represents and warrants to Seller that the following facts and conditions exist and are true as of the date hereof and shall exist and be true as of the date of the Closing. 7.1 Purchaser is a validly formed municipal corporation in good standing organized and existing under the laws of the State of Florida and has all requisite power and authority to purchase the Property and to enter into and perform its obligations hereunder. SECTION 8: SELLER'S COVENANTS From and after the date hereof, through and including the Closing Date, Seller agrees as follows (each of which covenants is a condition to Purchaser's obligations to close under this Agreement and must be satisfied by Seller or waived by Purchaser in writing prior to Closing): 8.1 Inspection of Property. Seller will allow Purchaser and its agents and contractors to enter upon the Property for any purpose in connection with Purchaser's proposed purchase, use and operation of the Property. 8.2 Management and Operation Prior to Closing. Between the date of this Agreement and the Closing Date, Seller shall maintain the Property, committing or permitting no waste thereto, such that at the time of the Closing, the Property shall be in substantially the same physical condition as on the date of Seller's execution of this Agreement. 8.3 Notices. Seller shall, promptly upon Seller's obtaining knowledge thereof, provide Purchaser with a written notice of any event which has an adverse effect on the physical condition of the Property. 8.4 Notices of Violation. Promptly after Seller obtains actual knowledge or upon receipt of written notice thereof, Seller has provided or shall provide Purchaser with written 10 notice of any violation of any Legal Requirements affecting the Property, or any matter which affects Seller's ability to perform its obligations under this Agreement or any other correspondence or notice received by Seller which has or has the potential to have an adverse effect on the Property. 8.5 Seller's Cooperation. If requested by Purchaser, Seller will prior to the Date of Closing promptly execute all petitions, applications, easements, site plans and other documents which Purchaser may reasonably request and otherwise reasonably cooperate with Purchaser in connection with Purchaser obtaining or granting any permit, site plan approval, easement, right-of-way dedication, rezoning, right-of-way deed, variance or other administrative authorization required for Purchaser's proposed development of the Property. 8.6 Survival. Any claim for breach of the covenants contained in this Agreement including, without limitation, in this Section 8 shall survive the Closing. SECTION 9: PURCHASER'S DUE DILIGENCE AND INSPECTION OF PROPERTY 9.1 Inspection of Property. Purchaser or its appointed agents or independent contractors or consultants shall have, at all reasonable times prior to the Closing, the right of going upon the Property, at Purchaser's sole cost and expense, to inspect, examine, test and investigate the Property (including all improvements located thereon and the existing motel structure), for the purposes of conducting any further environmental assessments, tests and inspections as may be deemed necessary or appropriate by Purchaser. In exercising the privileges granted pursuant to this subsection 9.1, Purchaser shall substantially restore the Property to the condition existing prior to such activities on the Property. In consideration of Purchaser's right to inspect the Property as described in this subsection 9.1, subject to the provisions and monetary limitations of Section 768.28, Florida Statutes, Purchaser agrees to indemnify, defend and hold Seller harmless from any actions, suits, liens, claims, damages, expenses, losses and liability for damage to personal property or personal injury arising from or attributable to any acts performed by Purchaser or its appointed agents or independent contractors in exercising Purchaser's rights under this subsection 9.1 (including, without limitation, any rights or claims of materialmen or mechanics to liens on the Property, but excluding any matter to the extent arising out of the negligence or misconduct of Seller). This agreement to indemnify Seller shall survive the Closing and any termination of this Agreement. 9.2 Conditions Precedent/Termination Right. In addition to any other termination right or other remedy specified herein and notwithstanding any provision of this Agreement which may be interpreted to the contrary, if Purchaser is dissatisfied, for any reason and in Purchaser's exclusive judgment, with the results of Purchaser's investigation and study of the Property as set forth in Section 9.1 herein above, or the condition of the Property is not acceptable to Purchaser for any reason whatsoever, then Purchaser may terminate this Agreement by notifying Seller or Seller's Attorney of such termination on or before Date of Closing, whereupon thereafter neither party hereto shall have any further rights, obligations, 11 or liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination of this Agreement. SECTION 10: PURCHASER'S ADDITIONAL CLOSING CONTINGENCY Purchaser's obligation to close the transaction contemplated by this Agreement and purchase the Property is expressly subject and contingent upon obtaining on or before the Closing Date all final, non -appealable governmental approvals and exercises of authority, including, without limitation, (i) approval by the Council of Islamorada, Village of Islands, of this Agreement and authorization and approval to purchase the Property, and (ii) approval by the Board of County Commissioners of Monroe County, Florida authorizing and approving this Agreement and the sale of the Property to Purchaser (collectively the "Governmental Approvals"). Purchaser shall have up to and including the Closing Date to obtain the Governmental Approvals. If the Governmental Approvals are not obtained on or before the Closing Date, then Purchaser shall have the right to (i) terminate this Agreement by notifying Seller or Seller's Attorney of such termination on or before the Closing Date or (ii) waive this contingency. If this Agreement is terminated by Purchaser, thereafter neither party hereto shall have any further rights, obligations, or liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination of this Agreement. The parties acknowledge and agree that Purchaser's right to terminate under this Section 10 may be exercised upon the denial or any non -approval of any one of the Governmental Approvals necessary to authorize the purchase the Property. By way of example, if the Council of Islamorada, Village of Islands fails to approve the purchase of the Property and this Agreement, Purchaser may exercise its right to terminate hereunder without having to wait until the Closing Date to do so. Seller consents to Purchaser processing the necessary Governmental Approvals and agrees at Purchaser's request to execute any reasonable documentation necessary or appropriate in connection with the attainment of the Governmental Approvals. SECTION 11: CLOSING Subject to the satisfaction of all conditions on or before Closing, the Closing Date shall occur within thirty (30) days after the Governmental Approvals, unless the Closing Date is otherwise extended pursuant to the provisions of this Agreement or by written agreement of the parties. The Closing shall be held at the offices of Purchaser, at a time mutually acceptable to both parties. If no such selection is timely made, the Closing shall be held at 10:30 a.m. local time on the Closing Date or at such other time or such other place as may be mutually agreed in writing by the parties hereto. 12 11.1 Delivery: Possession. At Closing, Seller shall deliver to Purchaser the items required of Seller under this Agreement, and Purchaser shall deliver to Seller the balance of the Purchase Price (after making other adjustments, proration and credits as provided herein) and the other items required of Purchaser under this Agreement. Seller shall deliver possession of the Property to Purchaser, subject only to the Permitted Exceptions at the time of Closing. Risk of loss shall remain with Seller until Closing. 11.2 Closing Costs. 11.2.1 Seller's Costs. Seller shall pay (i) any property transfer, conveyance, sales and other taxes due on the transfer of the Property, (ii) the fees and expenses of Seller's attorney, (iii) the documentary stamps and surtaxes due on the Deed, if any, and (iv) the cost of recording any corrective instruments. 11.2.2 Purchaser's Costs. Purchaser shall pay (i) any costs incurred by Purchaser in preparing and performing its due diligence investigations, (ii) the cost of the Title Commitment, (iii) the premium for the Owner's Title Policy, (iv) the cost of recording the Deed, (v) the cost of the Survey, and (vi) the fees and expenses of Purchaser's Attorney. 11.2.3 Other Costs. Any other costs not specifically provided for in subsection 11.2.1, subsection 11.2.2 or otherwise pursuant to the terms of this Agreement shall be paid by the party who incurred those costs, or if neither party is charged with incurring any such costs, then by the party customarily assessed for such costs in the place where the Property is located. 11.2.4 Survival. The provisions of this subsection 11.2 shall survive the Closing and the delivery of the Deed. 11.3 Purchaser's Conditions to Closing. Purchaser's obligation to purchase the Property or otherwise to perform any obligation provided in this Agreement is expressly conditioned upon the fulfillment or satisfaction of each of the following condition precedent on or before the Closing Date (any of which may be waived only in writing by Purchaser in its discretion): 11.3.1 The attainment of all Governmental Approvals necessary to purchase the Property. 11.3.2 Seller shall have fully performed each undertaking and covenant and agreement to be performed by Seller under this Agreement 13 including, but not limited to, delivery of all items and documents required under Section 13 below; 11.3.3 Each representation and warranty made in this Agreement by Seller shall be complete, true and accurate; 11.3.4 The Owner's Title Policy shall be issued, or in lieu of issuance of the foregoing at Closing, the Title Company shall have delivered a "marked up" Title Commitment, subject only to the Permitted Exceptions, with gap coverage, deleting all requirements and deleting the standard exceptions; 11.3.5 Without additional cost or charge to Purchaser, the Intangible Property shall be assigned to Purchaser; 11.3.6 Except as cured by Seller or otherwise approved or waived in writing by Purchaser, no event shall have occurred which may have an adverse effect on the physical condition of the Property; 11.3.7 No amendments, restatement, adoption or repeal of any Legal Requirement of any Governmental Authority shall have occurred which is applicable to the Property and has or could have an adverse effect upon the value, use, operation, zoning, development or condition thereof. If any of the foregoing conditions are not satisfied at or before Closing, then in addition to any remedy available to Purchaser under this Agreement, Purchaser may terminate this Agreement by written notice to Seller, in which event the parties shall be released from all obligations and liabilities under this Agreement except those that expressly survive termination of this Agreement. SECTION 12: ADJUSTMENTS, PRORATIONS AND CREDITS AT CLOSING All adjustments, proration and credits provided to be made "as of the Closing Date" shall each be made as of 11:59 p.m. local time on the date immediately preceding the Closing Date. In each proration set forth below, the portion thereof allocable to periods beginning with the Closing Date shall be credited to Purchaser, or charged to Purchaser, as applicable, at Closing or, in the case of allocations made after Closing, upon receipt of such payments or invoice as of the Closing Date. Except as may otherwise be specified herein, the following items shall, as applicable, be prorated between Purchaser and Seller or credited to Purchaser or Seller: 12.1 Property Taxes and Assessments. 14 12.1.1 Taxes. The parties acknowledge and agree that the Property is being sold and purchased by exempt governmental entities and that the parties will comply with, to the extent applicable, Section 196.295, Florida Statutes, regarding real estate taxes. 12.1.2 Special Assessments. Certified, confirmed and ratified special assessments as of Date of Closing (and not as of the date of this Agreement), shall be paid by Seller, including the Phase I Wastewater Assessments due on the Property which shall be paid by Seller at Closing. Pending liens and assessments as of Date of Closing shall be assumed by Purchaser, including any Phase II Wastewater Assessment imposed or levied by the Village on the Property; provided, however, that where the improvement for which the special assessment was levied, had been substantially completed as of the date of this Agreement, such pending liens or assessments shall be considered as certified, confirmed or ratified and Seller shall, at Closing, be charged an amount equal to the estimated assessment for the improvement. 12.2 Other Matters. Seller and Purchaser shall make such other adjustments and apportionments as are expressly set forth in this Agreement and in Section 6.14. As set forth in Section 6.14 herein above, Seller shall credit Purchaser as a reduction or adjustment in the Purchase Price at Closing the sum of Twenty Thousand and No/ 100 Dollars ($20,000.00). 12.3 Survival. The provisions of this Section 12 shall survive the Closing and the delivery of the Deed. In the event final figures have not been reached on any of the adjustments, proration or costs which are to be adjusted at or prior to Closing pursuant to this Section 12, the parties shall close using adjustments and proration reasonably estimated by Seller and Purchaser, subject to later readjustment when such final figures have been obtained. The parties hereto agree that they shall seek to determine the amounts of all proration and adjustments required hereunder on or before the Closing Date, if possible, and to the extent not then obtainable within one (1) year of Closing. SECTION 13: CONVEYANCES AND DELIVERIES AT CLOSING 13.1 Deed. At Closing, Seller shall convey the Property to Purchaser by a duly executed and recordable deed in substantially the form attached hereto as Exhibit "B" (herein referred to as "Deed"), subject only to the Permitted Exceptions. 13.2 Bill of Sale. At Closing, Seller shall also convey any personal property located on the Property (as may be applicable and to the extent any personal property is located on the Property and has been agreed to be conveyed by the parties) to Purchaser by a duly executed Bill of Sale in substantially the form attached hereto as Exhibit "C". is 13.3 Affidavit of Title. At Closing, Seller shall execute and deliver to Purchaser and to the Title Company a no -lien, possession and gap title affidavit in the form required by the Title Company, together with such resolutions, affidavits, documents and certificates as the Title Company may reasonably require to issue the Owner's Title Policy in accordance with the terms of this Agreement, including a statement that Seller is not a "foreign person" as defined in Section 1445 of the Internal Revenue Code and the regulations thereunder. 13.4 Closing Statement. At Closing, Seller and Purchaser shall execute and deliver a Closing Statement which shall, among other items, set forth the Purchase Price, all credits against the Purchase Price, the amounts of all proration and other adjustments to the Purchase Price and all disbursements made at Closing on behalf of Purchaser and Seller in accordance with the terms of this Agreement. 13.5 Evidence of Authority. At Closing, Seller shall update Evidence of Authority dated not more that five days before the Closing Date. 13.6 Physical Possession. At Closing, Seller shall deliver to Purchaser possession of the Property free of any tenants, lessees, occupants, or other ownership or beneficial interests in the Property. 13.7 Other Documents. At Closing, Seller and Purchaser shall deliver to each other any other documents expressly required to be delivered or furnished pursuant to any other provisions of this Agreement or reasonably required to carry out the purpose and intent of this Agreement. SECTION 14: NOTICES All notices, consent, approvals and other communication which may be or are required to be given by either Seller or Purchaser under this Agreement shall be properly given only if made in writing and sent by (a) hand delivery, (b) electronic facsimile or other transfer device with telephone or other confirmation of receipt, provided that a hard copy of such notice is mailed by US first class mail, postage prepaid, on or before the next Business Day following such telecopy delivery or (c) a nationally recognized overnight delivery service (such as Federal Express, UPS Next Day Air or DHL Express), with all delivery charges paid by the sender and addressed to the Purchaser or Seller, as applicable, as follows, or at such other address as each may request in writing. Such notices shall be deemed received, (1) if delivered by hand or overnight delivery service on the date of delivery and (2) if sent by electronic transfer on the date transmission is confirmed by telephone or return electronic transfer from the receiving party, provided that a hard copy of such notice is mailed by US first class mail, postage prepaid, on or before the next Business Day following such telecopy delivery. The refusal to accept delivery shall constitute acceptance and, in such event, the date of delivery shall be the date on which delivery was refused. Said addresses for notices are to be as follows: 16 IF TO SELLER: with a copy to: Monroe County Attention: Kevin Wilson Monroe County Public Works & Engineering Division Murray E. Nelson Government & Cultural Center 10250 Overseas Highway, Room 214 Key Largo, FL 33037 Telephone No.: (305) 292-4560 (Key West) Telephone No.: (305) 453-8797 (Key Largo - direct) Telecopy No. (305) 453-8798 (Key Largo) Telecopy No. (305) 295-4321 (Key West) Susan Grimsley, Esq. Monroe County Attorney 1111 12th Street, Suite 408 Key West, Florida 33040. Telephone No.: (305) 292-3470 Telecopy No.: (305) 292-3516 IF TO PURCHASER: with a copy to: Islamorada, Village of Islands 86800 Overseas Highway, Third Floor Islamorada, Florida 33036 Attention: Village Manager Telephone No.: (305) 664-6410 Telecopy No.: (305) 664-6464 Weiss Serota Helfman Pastoriza Cole & Boniske, P.L. 2525 Ponce de Leon Blvd., Suite 700 Coral Gables, Florida 33134 Attention: Lillian M. Arango, Esq. Telephone No.: (305) 854-0800 Telecopy No.: (305) 854-2323 SECTION 15: CASUALTY AND CONDEMNATION 15.1 Cam. Prior to the Closing Date, and notwithstanding the pendency of this Agreement, the entire risk of loss or damage by fire or other casualty shall be borne and assumed by Seller, except as otherwise provided in this subsection 15. Until the Closing has 17 occurred, Seller shall keep all insurance policies in effect with respect to the Property. If, prior to the Closing Date, any part of the Property is damaged or destroyed by fire or other casualty, Seller shall immediately notify Purchaser of such fact. If such damage or destruction is material (as defined below), Purchaser shall have the option to terminate this Agreement upon written notice to Seller given not later than thirty (30) days after receipt of Seller's notice. For purposes hereof "material" shall be deemed to be any uninsured damage or destruction to the Property (except that a casualty shall not be deemed uninsured solely because all, or a portion of, the cost of the casualty is subjected to a deductible) or any insured damage or destruction (i) where the cost of repair or replacement is estimated, in Purchaser's good faith judgment, to be Fifty Thousand and No/100 Dollars ($50,000.00) or more for the Improvements, or (ii) where the repair or replacement is estimated, in Purchaser's good faith judgment, to require more than one hundred twenty (120) days to repair. If Purchaser does not exercise this option to terminate this Agreement, or if the casualty is not material, neither party shall have the right to terminate this Agreement, and the parties shall proceed to the Closing pursuant to the terms hereof without modification of the terms of this Agreement and without any reduction in the Purchase Price but, Seller, at Closing, shall assign to Purchaser, and Purchaser shall be entitled to receive and keep, any and all insurance proceeds payable with respect to such casualty, plus Seller shall pay over to Purchaser the sum of (a) any and all insurance proceeds previously paid to Seller with respect to such casualty (other than amounts expended by Seller for emergency repairs or for repairs which are approved in writing by Purchaser) and (b) an amount equal to the deductible amount with respect to the insurance. In such event, Seller shall not be obligated to repair or restore the Property. If Purchaser does not elect to terminate this Agreement by reason of any casualty, Purchaser shall have the right to participate in any adjustment of the insurance claim and, in such event, Purchaser and Seller shall cooperate each with the other in good faith. 15.2 Condemnation. At Closing, Seller shall assign to Purchaser all of Seller's right, title and interest in and to the beds of streets, roads, alleys, avenues and highways abutting the Property and all of Seller's right, title and interest in and to all awards in condemnation, or damages or any kind, to which Seller is entitled at the time of Closing, by reason of any exercise of power of eminent domain with respect thereto or for the taking of the Property or any part thereof or by reason of any other event affecting the Property which gives rise to a damage claim against a third Party after the date hereof. Prior to the Closing Date, if all or any portion of the Property is taken, or if access thereto is reduced or restricted by eminent domain or otherwise (or if such taking, reduction or restriction is pending, threatened or contemplated) (hereinafter a "Condemnation Proceeding"), Seller shall immediately notify Purchaser of such fact. In the event that such notice related to the taking of all or any portion of the Property, Purchaser shall have the option, in its sole and absolute discretion, to terminate this Agreement upon written notice to Seller given not later than thirty (30) days after receipt of Seller's notice; whereupon thereafter neither Party shall have any rights, obligations or liabilities hereunder except with respect to those rights, obligations or liabilities which expressly survive the termination of this Agreement. If Purchaser does not elect to terminate this Agreement as herein provided, Seller shall pay to Purchaser any award received by Seller prior to Closing and Purchaser shall have the right to participate with Seller in any 18 Condemnation Proceeding affecting the Property; provided, that in doing so Purchaser shall cooperate with Seller in good faith. SECTION 16: BROKERS Each party represents to the other that such party has not incurred any obligation to any broker, finder or real estate agent with respect to the purchase or sale of the Property. Each of Seller and Purchaser warrants and represents to the other that such party has not employed (expressly or impliedly) any broker, agent or other such Person as to which a commission or other such fee is or would become due or owing as a result of the purchase and sale contemplated hereby and has made no agreement (express or implied) to pay any broker's commission or other such fees in connection with the purchase and sale contemplated by this Agreement. Each of Seller and Purchaser agrees to indemnify and defend the other against, and to hold the other harmless of and from all claims, demands and liabilities (including reasonable attorney's fees and expenses incurred in defense thereof) for any commission or fees payable to, or claimed by, any broker, agent or other such Person arising out of the employment or engagement of such Person employed (expressly or impliedly) by Seller of Purchaser, as applicable, or with whom Seller or Purchaser, as applicable, has or is claimed to have, made an agreement (express or implied) to pay a commission or other such fee; provided, however, provided, however, that such indemnification obligations under this Section 16 are subject to the provisions and monetary limitations of Section 768.28, Florida Statutes. The representation, warranties, undertakings and indemnities of this Section 16 shall survive the Closing hereunder and any termination of this Agreement. SECTION 17: DEFAULT/REMEDIES 17.1 Seller's Default/Purchaser's Remedies. Notwithstanding any other remedy provided for herein, if Seller defaults in the observance or performance of its covenants and obligations hereunder, Purchaser may, at its option, terminate this Agreement or seek specific performance of this Agreement. 17.2 Purchaser's Default/Seller's Remedies. If Purchaser defaults in the observance or performance of its covenants and obligations hereunder, then Seller, as its sole and exclusive remedy, shall (as an election of remedies) terminate this Agreement or seek specific performance of this Agreement. Seller hereby waives, relinquishes and releases any and all other rights and remedies, including but not limited to: (1) any right to sue Purchaser for damages (2) any other right or remedy which Seller may otherwise have against Purchaser, either at law, or equity or otherwise. SECTION 18: ESCROW AGENT 18.1 Performance of Duties. The parties acknowledge and agree that no Earnest Money or Deposit shall be required of Purchaser pursuant to this Agreement. Escrow Agent undertakes to perform only such duties as may be expressly set forth in this Agreement and in 19 any amendment to this Agreement requiring Escrow Agent to perform any act or obligation. Escrow Agent shall not be deemed to have any implied duties or obligations under or related to this Agreement. 18.2 Reliance. Escrow Agent may (i) act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine; (ii) assume the validity and accuracy of any statement or assertion contained in such a writing or instrument; and (iii) assume that any person purporting to give any writing, notice, advice or instructions in connection with the provisions of this Agreement has been duly authorized to do so. Escrow Agent shall not be liable in any manner for the sufficiency or corrections as to form, manner of execution, or validity of any instrument deposited in escrow, nor as to the identity, authority, or right of any person executing any instrument; Escrow Agent's duties under this Agreement are and shall be limited to those duties specifically provided in this Agreement. 18.3 Right to Interplead. If the parties (including Escrow Agent) shall be in disagreement about the interpretation of this Agreement, or about their respective rights and obligations, or about the propriety of any action contemplated by Escrow Agent, Escrow Agent may, but shall not be required to, file an action in interpleader to resolve the disagreement; upon filing such action, Escrow Agent shall be released from all obligations under this Agreement. 18.4 Attorney's Fees and Costs. In any suit between Purchaser and Seller wherein Escrow Agent is made a party because of acting as Escrow Agent hereunder, or in any suit wherein Escrow Agent interpleads the subject matter of the Escrow, Escrow Agent shall recover reasonable attorney's fees and costs incurred with the fees and costs to be paid from and out of the escrowed funds or equivalent and charged and awarded as court costs in favor of the prevailing party. The parties hereby agree that Escrow Agent shall not be liable to any party or person for misdelivery to Purchaser or Seller of items subject to this escrow, unless such misdelivery is due to willful breach of this Agreement or gross negligence of Escrow Agent. 18.5 Escrow Agent as Counsel for Purchaser. It is acknowledged that Escrow Agent is counsel for Purchaser. It is agreed that Escrow Agent shall not be disabled or disqualified from representing Purchaser, its council members, officers, directors or agents in connection with any dispute or litigation which may arise out of or in connection with this transaction or this Agreement as a result of Escrow Agent acting as the escrow agent under this Agreement and the Seller, waives any claim or right to assert a conflict arising out of or in connection with the foregoing. SECTION 19: GENERAL PROVISIONS 19.1 Entire Agreement. This Agreement, and all the Exhibits referenced herein and annexed hereto, contain the final, complete and entire agreement of the parties hereto with 20 respect to the matters contained herein, and no prior agreement or understanding pertaining to any of the matters connected with this transaction shall be effective for any purpose. Except as may be otherwise expressly provided herein, the agreements embodied herein may not be amended except by an agreement in writing signed by the parties hereto. 19.2 Governing Law. This Agreement shall be governed by and construed under the laws of the State of Florida and venue shall be in Monroe County, Florida, Upper Division. 19.3 Further Assurances. Seller and Purchaser each agrees to execute and deliver to the other such further documents or instruments as may be reasonable and necessary in furtherance of the performance of the terms, covenants and conditions of this Agreement. This covenant shall survive the Closing. 19.4 Interpretation. The titles, captions and paragraph headings are inserted for convenience only and are in no way intended to interpret, define, limit or expand the scope or content of this Agreement or any provision hereto. If any party to this Agreement is made up of more than one Person, then all such Persons shall be included jointly and severally, even though the defined term for such party is used in the singular in this Agreement. This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing this Agreement to be drafted. If any words or phrases in this Agreement shall have been stricken out or otherwise eliminated, whether or not any other words of phrases have been added, this Agreement shall. be construed as if the words or phrases so stricken out or otherwise eliminated were never included in this Agreement and no implication or inference shall be drawn from the fact that said words or phrases were so stricken out or otherwise eliminated. 19.5 Counterparts. This Agreement may be executed in separate counterparts. It shall be fully executed when each party whose signature is required has signed at least one counterpart even though no one counterpart contains the signatures of all of the parties of this Agreement. Facsimile copies shall be deemed originals. 19.6 Non -waiver. No waiver by Seller or Purchaser of any provision hereof shall be deemed to have been made unless expressed in writing and signed by such party. No delay or omission in the exercise of any right or remedy accruing to Seller or Purchaser upon any breach under this Agreement shall impair such right to remedy or be construed as a waiver of any such breach theretofore or thereafter occurring. The waiver by Seller or Purchaser of any breach of any term, covenant or condition herein stated shall not be deemed to be a waiver of any other breach, or of a subsequent breach of the same or any other term, covenant or condition herein contained. 19.7 Severabhlity. This Agreement is intended to be performed in accordance with and only to the extent permitted by applicable law. If any provisions of this Agreement or the 21 application thereof to any Person or circumstance shall, for any reason and to any extent, be invalid or unenforceable, but the extent of the invalidity or unenforceability does not destroy the basis of the bargain between the parties as contained herein, the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected thereby, but rather shall be enforced to the greatest extent permitted by law. 19.8 Exhibits. The Exhibits referred in and attached to this Agreement are incorporated herein in full by this reference. 19.9 Attorneys' Fees. In the event of any controversy, claim or dispute between the parties arising from or relating to this Agreement (including, but not limited to, the enforcement of any indemnity provisions), the prevailing party shall be entitled to recover reasonable costs, expenses and attorneys' fees including, but not limited to, court costs and other expenses through all appellate levels. 19.10 Business Days. If any date provided for in this Agreement shall fall on a day which is not a Business Day, the date provided for shall be deemed to refer to the next Business Day. 19.11 Time is of the Essence. Time is of the essence in this Agreement. 19.12 No Personal Liability of Council Members, Board Members, Administrative Officials or Representatives of Parties. The parties acknowledge that this Agreement is entered into by a municipal corporation as Purchaser and Monroe County as Seller, and agree no individual council or board member, administrative official or representative of either party shall have any personal liability under this Agreement or any document executed in connection with the transactions contemplated by this Agreement. 19.13 Effective Date. For purposes of calculation of all time periods within which Seller or Purchaser must act or respond as herein described, all phrases such as "the date of this Agreement", "the date of execution of this Agreement" or any other like phrase referring to the date of the Agreement, shall mean and refer to the "Effective Date" of this Agreement. 19.14 Radon Disclosure. Pursuant to Section 404.056(5), Florida Statutes, the following disclosure is made. RADON GAS: "Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit." 19.15 Waiver of Trial by Jury. SELLER AND PURCHASER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT OR COUNTERCLAIM ARISING IN 22 CONNECTION WITH, OUT OF OR OTHERWISE RELATING TO THIS AGREEMENT AND ANY OTHER DOCUMENT OR INSTRUMENT NOW OR HEREAFTER EXECUTED AND DELIVERED IN CONNECTION THEREWITH. 19.16 No Contract With Other Persons. Seller agrees not to enter into a contract for the sale, lease, use or occupancy of the Property with any person or entity other than Purchaser for so long as this Agreement is in effect. 19.17 Police/Regulatory Powers. Purchaser cannot, and hereby specifically does not, waive or relinquish any of its regulatory approval or enforcement rights and obligations as it may relate to regulations of general applicability which may govern the Property, any improvements thereon, or any operations at the Property. Nothing in this Agreement shall be deemed to create an affirmative duty of Purchaser to abrogate its sovereign right to exercise its police powers and governmental powers by approving or disapproving or taking any other action in accordance with its zoning and land use codes, administrative codes, ordinances, rules and regulations, federal laws and regulations, state laws and regulations, and grant agreements. In addition, nothing herein shall be considered zoning by Agreement. 19.18 Negotiated Agreement. The parties have substantially contributed to the drafting and negotiation of this Agreement and this Agreement shall not, solely as a matter of judicial construction, be construed more severely against one of the parties than any other. The parties hereto acknowledge that they have thoroughly read this Agreement, including all exhibits and attachments hereto, and have sought and received whatever competent advice and counsel was necessary for them to form a full and complete understanding of all rights and obligations herein. 19.19 No Recordation. Neither this Agreement nor any notice or memorandum of this Agreement shall be recorded in any public records. 19.20 Merger. Unless expressly set forth herein, the terms and provisions of this Agreement shall not survive the closing and such terms and provisions shall be deemed merged into the Deed and extinguished at Closing. BALANCE OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE TO FOLLOW 23 IN WITNESS WHEREOF, Seller and Purchaser have caused this Agreement to be executed, as of the day and year set forth below their signatures. ATTEST: Village Clerk Approved as to Form and Legal Sufficiency: Village Attorney PURCHASER: ISLAMORADA, VILLAGE OF ISLANDS, a Florida municipal corporation Edward Koconis, Village Manager Date Executed: 24 Attest: Amy Heavilin, Clerk of Circuit Court Deputy Clerk Approved as to Form County Attdmey k- o, 3 SELLER: MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida By: MONROE COUNTY BOARD OF COUNTY COMMISSIONERS By: _ Name: Title: Date Executed: 25 ESCROW AGENT: Weiss Serota Helfbm Pastoriza Cole & Boniske, P.L. By:_ Name: Title: Date Executed: FA400436203ftmhase and Sale Agreement - b teresocts Invagments\PSA 09-21-09 v2 (w Exh A L egal).doc 26 EXMIT "A" LEGAL DESCRIPTION OF PROPERTY Lots 1, 2 and 24, Block 11, of KEY HEIGHTS, SECTION TWO, according to the Plat thereof, as recorded in Plat Book 3, Page 159, of the Public Records of Monroe County, Florida Parcel ID: 00417340-000000 27 EXHIBIT "B" FORM OF DEED This lmu=ent Prepared By: Susan Grimsley, Esq. Monroe County, Assistant County Attorney 1111 12'' Street, Fourth Floor Key West, Florida 33040 After Recording Return to: Lillian M. Arango, Esq. Weiss Santa Helfman Pastoriza Cole & Boniske, P.L. 2525 Ponce de Leon Blvd., Suite 700 Coral Gables, Florida 33134 Parcel Identification Number: 00417340-000000 Alternate Key: 1513512 DEED THIS DEED is made and executed this day of . 2013, by MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida (the "Grantor"), whose mailing address is 1100 Simonton Street, Key West, Florida 33040, and ISLAMORADA, VILLAGE OF ISLANDS, a Florida municipal corporation (the "Grantee'), whose mailing address is 86800 Overseas Highway, Islamorada, Florida 33036. WITNESSETH• That Grantor, for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration, the receipt whereof is hereby acknowledged, does hereby grant, bargain, sell, alien, remise, release, convey and confirm unto Grantee the real property (the "Property') located in Monroe County, Florida, and more particularly described as: Dots 1, 2 and 24, Block 11, KEY HEIGHTS, SECTION TWO, according to the Plat thereof, as recorded in Plat Book 3, Page 159, of the Public Records of Monroe County, Florida. SUBJECT TO: 1. All easements, conditions, covenants, restrictions and agreements of record, provided that this instrument shall not reimpose same. 2. Real estate taxes for the year 2013 and all subsequent years, to the extent applicable to the Property. 3. Existing applicable governmental building and zoning ordinances and other 28 governmental regulations. TOGETHER with all the tenements, hereditaments and appurtenances belonging or in any way appertaining to the Property, and all development rights belonging or appertaining to the Property, including all transient motel units located on the Property. TO HAVE AND TO HOLD the same in fee simple forever. IN WITNESS WHEREOF, Grantor has caused this Deed to be executed as of the day and year first written above in its name by its Board of County Commissioners acting by the Chair or Vice Chair of said Board. Attest: Amy Heavilin, Clerk of Circuit Court Monroe County, Florida Deputy Clerk Approved as to Form and Legal Sufficiency: County Attorney GRANTOR MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida By: MONROE COUNTY BOARD OF COUNTY COMMISSIONERS By: _ Name: Title: ;„O,410E COUNTY ATTORNEY jAPPRO AS TO FORM: SUS M. GRIMSLE 29 ASSISTANT COUNTY ATTORNEY STATE OF FLORIDA ) SS. COUNTY OF MONROE ) The foregoing instrument was acknowledged before me this day of , 2013, by , as of the BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, on behalf of MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida, on behalf of the County, who (check one) [ ] is personally known to me or [ ] has produced a Florida driver's license as identification. [SEAL] Notary Public, State of Florida Print, Type or Stamp Name of Notary Public Commission No. Commission Expires: 30 EXHIBIT "C" FORM OF BILL OF SALE KNOW ALL MEN BY THESE PRESENTS, that MONROE COUNTY, FLORIDA ("Seller"), for and in consideration of the sum of Ten and No/100 Dollars ($10.00) lawful money of the United States, to it paid by the ISLAMORADA, VILLAGE OF ISLANDS, a Florida municipal corporation ("Purchaser"), the receipt whereof is hereby acknowledged, has granted, bargained, sold, transferred and delivered, and by these presents does grant, bargain, sell, transfer and deliver unto the Purchaser, its successors and assigns, the following goods and chattels: All of the tangible personal property of Seller used in connection with and located in, on or at the real property located at 103 Key Heights Drive, Islamorada, Florida (the "Property"), including, but not limited to, the personal property listed on Exhibit "A" attached hereto (the "Personal Property"). TO HAVE AND TO HOLD the same unto the Purchaser, its successors and assigns forever. AND Seller does, for itself and its heirs, executors and administrators, covenant to and with the Purchaser, its successors and assigns, that Seller is the lawful owner of the Personal Property; that they are free from all encumbrances; that Seller has good right to sell the same aforesaid. IN WITNESS WHEREOF, Seller has executed this Bill of Sale as of the day of .2013. SELLER: MONROE COUNTY, FLORIDA, a political Subdivision of the State of Florida By: MONROE COUNTY BOARD OF COUNTY COMMISSIONERS By: Name: Title: C;;t;G�= CGUNTY AT fOHNi- A PR VIED AS TO FORM: SU;S N M. GRIMSLEY 31 ".�SIST NT CQ TY ATTORNJr Attest: Amy Heavilin, Clerk of Circuit Court Monroe County, Florida Deputy Clerk Approved as to Form and Legal Sufficiency: County Attorney STATE OF FLORIDA ) SS: COUNTY OF MONROE ) The foregoing instrument was acknowledged before me this day of 2013 by as of Board of County Commissioners of Monroe County, Florida, on behalf of Monroe County, Florida, a political subdivision of the State of Florida, who (check one) [ ] is personally known to me or [ ] has produced a driver's license as identification. My Commission Expires: Notary Public Print Name: 32 Seller's Affidavit SELLER'S NO -LIEN, POSSESSION GAP AND FIRPTA AFFIDAVIT STATE OF FLORIDA SS: COUNTY OF MONROE ) BEFORE ME, sworn, deposes and states that: the undersigned authority, personally appeared _ (hereinafter referred to as "Affiant"), who by me being first duly 1. That Affiant is the of the BOARD OF COUNTY COMMISSIONERS, on behalf of MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida ("the County'), and has personal knowledge of the matters set forth herein and is authorized to execute this Affidavit on behalf of the County. 2. That the County is the owner ("Owner) of fee simple title to the real property located in Monroe County, Florida, more particularly described as: Lots 1, 2 and 24, Block 11, KEY HEIGHTS, SECTION TWO, according to the plat thereof, as recorded in Plat Book 3, Page 159, of the Public Records of Monroe County, Florida (the "Property'l. 3. That there are no mechanic's liens under Chapter 713 of the Florida Statutes filed against the Property or any portion thereof, that there have been no repairs, improvements or other work done to or labor, materials or services performed upon the Property or any portion thereof for which any or all of the cost of the same remains unpaid; and that no person, firm or corporation is entitled to a mechanic's lien against the Property or any portion thereof under Chapter 713 of the Florida Statutes. 4. That County/Owner is in exclusive possession of the Property and no person, firm or corporation has any interest, right or claim of possession, or contract right with respect to the Property or any portion thereof which is not a matter of record in the Public Records of Monroe County, Florida, and there are no facts known to Affiant which would give rise to such a claim being asserted against the Property or any portion thereof. 5. That there are no unsatisfied judgments or any federal, state or county tax deficiencies, which are a lien against the Property or any portion thereof. 6. That the Property is free and clear of all mortgages, liens, taxes, assessments, fees, and encumbrances whatsoever, except for. (a) real estate taxes for 2013 and subsequent years, to the extent applicable to the Property, and (b) those matters appearing as exceptions to title in the title commitment issued on March 31, 2013, by Chicago Title Insurance Company (the "Title Company'). 7. That there are no actions or proceedings now pending in any state or federal court to which the County is a party which would affect the title to the Property or any portion thereof. 8. That to Affiant's knowledge, there are no unrecorded easements or claims of easements affecting the Property or any portion thereof. 9. Section 1445 of the Internal Revenue Code provides that a transferee (buyer) of a U.S. real property interest must withhold tax if the transferor (seller) is a foreign person. To inform the Buyer that W.\103 Key Heights Drive\35F589902-SeHees Affidavit - County Form (2) 05062013.doc 1 withholding of tax is not required upon the disposition of a U.S. real property interest by the County, Affiant hereby certifies the following: 9.1. The County is not a foreign person, foreign corporation, foreign partnership, foreign trust, or foreign estate for the purposes of U.S. income taxation (as those terms are defined in the Internal Revenue Code and Income Tax Regulations). 9.2. Affiant understands that this certification be disclosed to the Internal Revenue Service by the transferee and that any false statement contained herein could be punished by fine, imprisonment or both. 10. That there are no matters pending against the County that could give rise to a lien that would attach to the Property or any portion thereof between March 31, 2013, and the recording of the Deed from the County to Islamorada, Village of Islands, a Florida municipal corporation ("Grantee'), and that the County has not and will not execute any instrument that would adversely affect the title to or transfer of the Property or any portion thereof from the County. Affiant recognizes that Grantee and the Title Company, are materially relying on the veracity of the contents of this Affidavit, and that this Affidavit is being given for the purpose of inducing (a) Grantee to part with valuable consideration and consummate the purchase of the Property from the County, and (b) the Title Company to issue a policy of title insurance to Grantee in connection with the conveyance of the Property from the County to Grantee. In this regard, Affiant represents on behalf of the County that the statements contained herein are true and correct in all respects. FURTHER AFFIAN'T SAYETH NAUGHT. MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida By: MONROE COUNTY BOARD OF COUNTY COMMISSIONERS By: _ Name: Title: ATTEST: Amy Heavilin, Clerk of Circuit Court Deputy Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY: 1 ` County Attorney W:1103 Key Heights Drivel35F589902-Sellers Affidavit - County Form (2) 05062013.doc 2 STATE OF FLORIDA ) SS. COUNTY OF MONROE ) The foregoing instrument was acknowledged before me this day of 2013, by as of the BOARD OF COUNTY COMMISSIONERS, of MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida, on behalf of the County, who (check one) [ ] is personally known to me or [ ] has produced a Florida driver's license as identification. [SEAL] Notary Public, State of Florida Print, Type or Stamp Name of Notary Public Commission No. Commission Expires: W:\103 Key Heights Drivel35F589902-Sellers Affidavit - County Fonn (2) 05062013.doc 3