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Item C03 C.3 BOARD OF COUNTY COMMISSIONERS C ounty of M onroe Mayor Sylvia Murphy, District 5 Mayor Pro Tem Danny Kolhage, District 1 TheFloridaKeys Michelle Coldiron, District 2 Heather Carruthers, District 3 David Rice, District 5 County Commission Meeting February 20, 2019 Agenda Item Number: C.3 Agenda Item Summary #5163 BULK ITEM: Yes DEPARTMENT: Assistant County Administrator Kevin Wilson TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292-4441 no AGENDA ITEM WORDING: Approval of a contract to purchase a property at 316 Simonton Street in Key West for $2,020,000. The planned use of the property is for offices for the Public Defender. Funds will come from the Infrastructure Sales Surtax. ITEM BACKGROUND: Florida law requires that the County provide office space for the Public Defender. Art. V, § 14, Florida Constitution; and F.S. 29.008. The Public Defender currently occupies a rental property at an annual cost of approximately $390,000/year. The lease on the existing property expires at the end of March 2019. The landlord th will not agree to an extension. An interim location at 1111 12 street was leased at a cost of $154,374/year to allow time for completion of the renovation of the proposed new office. The contracted sale price is $2.02 million. Contingencies included in the contract are satisfactory environmental and structural inspections and approval by the City of Key West of the development plans for the property. The latter of these may be a major development approval and that is specifically cited in the contract contingent conditions. Staff obtained two appraisals, copies of which are attached as backup. They were $1.85 million and $2.19 million. The average of the two appraisals is $2.02 million. Because the proposed purchase price is the average of the two appraisals, this purchase can be approved by a simple majority of the Board. F.S. 125.355(1)(b). PREVIOUS RELEVANT BOCC ACTION: At its January 23, 2019 meeting, the BOCC approved the interim location lease. CONTRACT/AGREEMENT CHANGES: No STAFF RECOMMENDATION: Approval Packet Pg. 48 C.3 DOCUMENTATION: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase Appraisal Co of KW appraisal(316) Magenheimer Appraisal (316) FINANCIAL IMPACT: Effective Date: Upon approval by the BOCC Expiration Date: September 2019 Total Dollar Value of Contract: $2,020,000.00 Total Cost to County: $2,020,000 Current Year Portion: $2,020,000 Budgeted: Yes Source of Funds: CPI: N/A Indirect Costs: N/A Estimated Ongoing Costs Not Included in above dollar amounts: 6% of the purchase plus buildout costs ($5 million) estimated ongoing maintenance expense is $300,000 Revenue Producing: No If yes, amount: Grant: No County Match: N/A Insurance Required: Additional Details: Buildout costs will be incurred in FY20 or later Proposed purchase price is $2,020,000. The build out cost is estimated at $2-3 million REVIEWED BY: Kevin Wilson Completed 01/26/2019 12:11 PM William DeSantis Completed 01/29/2019 10:21 AM Bob Shillinger Completed 01/29/2019 6:28 PM Budget and Finance Completed 02/05/2019 8:12 AM Maria Slavik Completed 02/05/2019 12:33 PM Kathy Peters Completed 02/05/2019 12:42 PM Board of County Commissioners Pending 02/20/2019 9:00 AM Packet Pg. 49 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 50 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 51 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 52 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 53 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 54 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 55 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 56 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 57 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 58 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 59 C.3.a Attachment: 2019-01-22 County from Bernie Papy signed Agreement for Sale and Purchase (Purchase contract for 316 Simonton Street for PD) Packet Pg. 60 C.3.b December14,2018 Mr.KevinG.Wilson,P.E. AssistantCountyAdministrator MonroeCounty,FL(FloridaKeys) 102050OverseasHighway KeyLargo,FL33037 Email:Wilson-Kevin@MonroeCounty-FL.Gov Subject:AppraisalReport: MonroeCountyGlass 316and316½SimontonStreet KeyWest,Florida33040 OurFileNo.:224-18 DearMr.Wilson; IperformedanappraisalreportandreportedmyopinionoftheAsIsMarketValueoftheFeeSimple Interest inthesubjectpropertyknownas316&316½SimontonStreet,MonroeCounty,KeyWest, Florida,asofNovember7,2018. Thesubjectbuildingsconsistsofalargeone-storyhistoricalbrick/CBS/woodframestructurewhichwas originallytheheadquartersandofficeofBernieC.Papy,Sr.,oneofthemostpowerfulpolitician’sin KeyWesthistory.Mostofthemainbuilding(Building“A”)isgenerallyunfinishedandmostrecently utilizedforwarehouseandworkshop.Aboutaquarterofthebuildingisfinishedforretailorofficeuse. Thestructurewasbuiltcirca1890,perhistoricalsources.Thestructureencompassesagrossbuilding areaof5,633squarefeet.Mostofthestructureisvacant,whiletherearworkshop/warehouseareais occupiedbyMonroeGlassandMirror,plusa200squarefootsectionisoccupiedbyKeyWestEscape Room,anattraction. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) Building“B”totherear,isaonestoryCBS/masonrystructure,thatwasoriginallytheicehouseforthe SchlitzBeerdistributor,ownedbyMr.Papy.TheMonroeCountyPropertyAppraiserindicatesayear builtof1958.Itisowner-occupiedandutilizedforstorage/workshopandcontains850squarefeet. Building“C”isaone-storywarehousestructurewithasmallofficeandislocatedattheveryrearofthe site.Thisstructureincludes1,639squarefeetofgrossbuildingarea.Theoverallcomplexhasagross buildingareaof8,122squarefeet.ThisunitisoccupiedbyMonroeCountyGlassandMirror. Packet Pg. 61 C.3.b Mr.KevinG.Wilson,P.E. AssistantCountyAdministrator MonroeCounty,FL(FloridaKeys) December14,2018 Page2 Thesubjectsiteconsistsofanirregular-shapedinteriorcornerparcelwith86feetoffrontagealongthe westerlyboundaryofSimontonStreetandextending214.25feetwesterlyindepthforatotalsitearea of15,918squarefeet.ThesurveywaspreparedbyIslandSurveying,Inc.,datedApril25,2011.The appraisersutilizedthedimensionsprovidedinthesurveyandthesiteareaisreferencedfromtheMonroe CountyPropertyAppraiser’srecords.Anydeviationsfromthesesizeswilllikelyresultinachangein value.Ifandwhen,amorerecentsurveyismadeavailableforthesubjectproperty,theappraisers reservetherighttoamendthefinalvalue. Thesubjectpropertyhasaprimelocationintheheartofthetouristdistrictjustoneblockeasterlyof DuvalStreet,themainstreetindowntownKeyWest.Thissectionisknownas“OldTown,”withinthe HistoricPreservationDistrict.Thisareafeaturesthe“HighRent”district,whichboaststhehighest pedestriantraffic(mostlyduetocruiseshipshoppassengers)andaconcentrationoftouristattractions, restaurants/bars,retailareawithinthelowerDuvalStreetcorridor,MallorySquareandtheKeyWest HistoricalSeaport.Thecruiseshipsessentiallydebarkwithinafewblocksfromthesubjectproperty. MarketValueisdefinedasthemostprobablepriceincash(oritsequivalency)forwhichtheappraised propertywillsellinacompetitivemarketunderallconditionsrequisitetoafairsale.MarketValue assumesanormalorreasonabletimeforexposureontheopenmarket. Basedonmysitevisit,physicalwalkthroughinspection,marketdata,researchandanalysis,itismy opinionthattheAsIsMarketValueoftheFeeSimpleInterest intheSubjectPropertycommonly knownas,316and316½SimontonStreet,MonroeCounty,KeyWest,Florida,subjecttodefinitions, assumptionsandlimitingconditions,asofNovember7,2018is: TWOMILLIONONEHUNDREDNINETYTHOUSANDDOLLARS ($2,190,000) Thisreportcontainstheresultsofmyinvestigationandanalysismadeinordertofurnishanestimate oftheAsIsMarketValueoftheFeeSimpleInterest inthesubjectproperty.TheFeeSimpleInterest istheunencumberedvalueofthesubjectproperty;basically,marketrentsandtermsareconsideredwith noregardtoexistingleasesandterms.TheFeeSimpleInterestisanownershipinterestheldbythe landlord,whoconveystherightsofuseandoccupancytoatenantbylease.Thelandlord’srights includetherighttoreceiverentandtherightofpossessionattheendoftheleaseperiod.Thesubject Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) propertyistenantoccupiedbytwotenants,whilethestorageunitisowner-occupiedandthetwo SimontonStreetFrontUnitsandVacant.Thetenantoccupiedunitsarerentedonamonth-to-month. Inthecaseathand,onlytheFeeSimpleAnalysiswasapplicable. Theattachedappraisalreportwhichisintendedtocomplywiththereportingrequirementssetforth underStandardRule2-2(a)oftheUniformStandardsofProfessionalAppraisalPracticeforanappraisal report,TitleXIoftheFinancialInstitutionsReform,RecoveryandEnforcementActof1989(FIRREA), andtheCodeofProfessionalEthicsandStandardsofProfessionalPracticeoftheAppraisalInstitute, Packet Pg. 62 C.3.b Mr.KevinG.Wilson,P.E. AssistantCountyAdministrator MonroeCounty,FL(FloridaKeys) December14,2018 Page3 plustheappraisalguidelinesofMonroeCounty.Assuch,itmightnotincludefulldiscussionsofthe data,reasoning,andanalysesthatwereusedintheappraisalprocesstodeveloptheappraiser'sopinion ofvalue.Supportingdocumentationconcerningthedata,reasoning,andanalysesisretainedinthe appraiser'sfile.Theinformationcontainedinthisreportisspecifictotheneedsoftheclientandforthe intendedusestatedinthisreport.Theappraisersarenotresponsibleforunauthorizeduseofthisreport. Ifyouhaveanyquestionsregardingthisappraisalreport,pleasefeelfreetocontactme.Thankyoufor givingmetheopportunitytoprovidethisserviceforyou.Thistransmittallettermustremainattached tothereport,whichcontains102pagesincludingrelatedexhibits,inorderforthevalueopinionsetforth tobeconsideredvalid. Respectfullysubmitted, JamesWilson,MRICS,President State-certifiedgeneralrealestateappraiser RZ2164 ReportAttached: C:\\Comm-18\\Comm-224-18Revised.wpd Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 63 C.3.b APPRAISALREPORT PropertyCommonlyKnownas: 316&316½S IMONTON S TREET K EY W EST,M ONROE C OUNTY,F LORIDA 33040 PropertyType: R ETAIL/O FFICE/W AREHOUSE R EADY F OR C ONVERSION PreparedFor: M R.K EVIN G.W ILSON,P.E. A SSISTANT C OUNTY A DMINISTRATOR M ONROE C OUNTY,FL(F LORIDA K EYS) 102050O VERSEAS H IGHWAY K EY L ARGO,FL33037 EffectiveValuationDate “AsIs” November7,2018 DateofReport December13,2018 PreparedBy: JamesE.Wilson,MRICS,President State-CertifiedGeneralRealEstateAppraiser RZ2164 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) APPRAISALCOMPANYOFKEYWEST 3144NorthsideDrive,Suite201 KeyWest,Florida33040 OurFileNo.:224-18 Packet Pg. 64 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL TABLEOFCONTENTS TABLEOFCONTENTS...........................................................5 PartI SUMMARYOFSALIENTFACTS&CONCLUSIONS..................................7 SUBJECTPROPERTYPHOTOGRAPHS............................................10 STATEMAP...................................................................17 FLORIDAKEYSMAP...........................................................18 LOCATIONMAPOFSUBJECTPARCEL..........................................19 AERIALMAP..................................................................20 PartII FACTUALDATA..............................................................22 PurposeandIntendedUseofAppraisal........................................22 Definitions...............................................................22 PropertyRightsAppraised:..................................................24 LegalDescription:.........................................................24 SUBJECT’SMARKETAREAANALYSIS...........................................25 DEMOGRAPHICS..............................................................30 PROPERTYDATAANALYSIS...................................................37 Marketing................................................................37 ExposureTime............................................................37 Ownership...............................................................38 SalesHistory:.............................................................38 Zoning:..................................................................38 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) RealEstateTaxes&Assessment:............................................40 GeneralSiteDescription:....................................................42 FloodZone:..............................................................43 AnalysisofImprovements:..................................................45 BuildingSketches.........................................................49 AppraisalCompanyofKeyWestPage5 Packet Pg. 65 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PartIII ANALYSIS,VALUATIONANDCONCLUSIONS....................................52 STATEMENTOFHIGHESTANDBESTUSE........................................52 A.AsImproved...........................................................52 B.ScopeofWork..........................................................53 D.CostApproach.........................................................56 E.SalesComparisonApproach...............................................79 RECONCILIATIONANDFINALESTIMATEOFVALUE..............................91 CERTIFICATIONOFVALUES....................................................93 PartIV ADDENDA....................................................................98 QUALIFICATIONSOFAPPRAISERJAMESE.WILSON..............................98 ENDNOTES..................................................................102 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage6 Packet Pg. 66 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL SUMMARYOFFACTSANDCONCLUSIONS SubjectPropertyAddress:316and316½SimontonStreet KeyWest,Florida33040 Owner:BCP,LLC 1409SunTerrace KeyWest,Florida33040 PropertyType:Retail/Office/WarehouseUseReadyforConversionorRedevelopment LandSize: SiteSizeandDescription StreetSiteSiteLandSizeLandSize FrontageDepthShapeSq.Ft.Acres 86.00214.25Irregular15,9180.37 GrossBuildingArea: SUBJECTUNITMIX&BUILDINGSIZES UnitSize Bldg.UnitNo.UseSq.Ft. "A"No.1Retail/Warehouse2,860 "A"No.2Retail/Office1,178 "A"No.3Warehouse1,595 GBAforBuilding"A":5,633 "B"No.4Warehouse850 GBAforBuilding"B": 850 "C"No.5Office/Warehouse1,639 GBAforBuilding"C":1,639 GrossRentableArea:8,122 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) TotalCommonArea:0 GrossBuildingArea:8,122 FloodHazardZone:MapNo.:12087C1516K,2/18/05:ZoneX(OutsideofFloodZone) AppraisalCompanyofKeyWestPage7 Packet Pg. 67 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Zoning:HNC-11-HistoricNeighborhoodCommerceDistrict,CityofKeyWest. HighestandBestUse: “AsIfVacant”Retail/ResidentialMixed-Use “AsImproved”ConversionandBuildouttoRetail/OfficeUse ValueConclusions: ReconciliationofValues 316&3161/2SimontonStreet,KeyWest,Florida KeyWest,MonroeCounty,Florida33040 FeeSimpleInterest ValuationMethod:MarketValue CostApproach:$2,200,000 IncomeApproach:NotApplicable SalesComparisonApproach:$2,190,000 "AsIs"MarketValueoftheFeeSimpleInterest, asofNovember7,2018(Rounded):$2,190,000 DateofOn-siteVisit:November7,2018 DateofValuations:November7,2018 DateofReport:December13,2018 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage8 Packet Pg. 68 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL MarketingTime:9to18Monthsorlessbasedonalistpricewithin5percentofappraised value. ExposureTime:Equaltomarketingtime. Extraordinary Assumptions:None HypotheticalConditions:None Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage9 Packet Pg. 69 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PHOTOGRAPHSOFSUBJECTPROPERTY StreetViewLookingNortherlyAlongSimontonStreet Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) StreetViewLookingSoutherlyAlongSimontonStreet AppraisalCompanyofKeyWestPage10 Packet Pg. 70 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PHOTOGRAPHSOFSUBJECTPROPERTY Front/SideViewofSubjectProperty(MainStructure,Building“A”) Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) FrontViewofSubjectProperty(Building“A”) AppraisalCompanyofKeyWestPage11 Packet Pg. 71 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PHOTOGRAPHSOFSUBJECTPROPERTY FrontViewofBuilding“B” Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) FrontViewofBuilding“B”(Right)andBuilding“C”(Rear) AppraisalCompanyofKeyWestPage12 Packet Pg. 72 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PHOTOGRAPHSOFSUBJECTPROPERTY RearViewofBuilding“A” Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) SideViewofBuilding“A” AppraisalCompanyofKeyWestPage13 Packet Pg. 73 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PHOTOGRAPHSOFSUBJECTPROPERTY FrontViewofBuilding“C” Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) InteriorViewofBuilding“A” AppraisalCompanyofKeyWestPage14 Packet Pg. 74 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PHOTOGRAPHSOFSUBJECTPROPERTY InteriorViewofBuilding“A” Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) InteriorViewofBuilding“C” AppraisalCompanyofKeyWestPage15 Packet Pg. 75 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PHOTOGRAPHSOFSUBJECTPROPERTY InteriorViewofBuilding“A” Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) InteriorViewofRestroomofBuilding“A” AppraisalCompanyofKeyWestPage16 Packet Pg. 76 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL STATEMAP Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage17 Packet Pg. 77 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL FLORIDAKEYSMAP STCEJBU Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage18 Packet Pg. 78 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL LOCATIONMAP Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage19 Packet Pg. 79 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL AERIALMAP Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage20 Packet Pg. 80 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL APPRAISALREPORT Thisisanappraisalreportwhichisintendedtocomplywiththereportingrequirementssetforthunder StandardRule2-2(a)oftheUniformStandardsofProfessionalAppraisalPracticeforanappraisal report.Assuch,itmightnotincludefulldiscussionsofthedata,reasoning,andanalysesthatwereused intheappraisalprocesstodeveloptheappraiser'sopinionofvalue.Supportingdocumentation concerningthedata,reasoning,andanalysesisretainedintheappraiser'sfile.Theinformationcon- tainedinthisreportisspecifictotheneedsoftheclientandfortheintendedusestatedinthisreport. Theappraiserisnotresponsibleforunauthorizeduseofthisreport. CLIENT:Mr.KevinG.Wilson,P.E. AssistantCountyAdministrator MonroeCounty 25W.FlaglerSt.5thFloor Miami,Florida33130 APPRAISER:JamesE.Wilson,MRICS,President State-certifiedgeneralrealestateappraiser RZ2164 SUBJECT:316and316½SimontonStreet KeyWest,MonroeCounty,Florida33040 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage21 Packet Pg. 81 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PURPOSEANDINTENDEDUSEOFTHEAPPRAISAL The purpose ofthisappraisalistoestimatethe“AsIsMarketValueofthe ofthesubjectproperty,316 and316½SimontonStreet,KeyWest,Florida,asofNovember7,2018. The intendeduse/user ofthisappraisalisMonroeCountyofFlorida,CountyCommissioners,andstaff. DEFINITIONS 1 1.Appraisalistheactorprocessofestimatingvalue;anestimateofvalue. 2.AppraisalReportisthewrittenororalcommunicationofanappraisal;thedocumenttransmitted totheclientuponcompletionofanappraisalassignment.Thereportingstandardsaresetforth intheStandardsRulesrelatingtoStandards2and5oftheUniformStandardsofProfessional 2 AppraisalPractice. 3.CashEquivalencyAnalysisisamethodinwhichthesalespricesofcomparableproperties, whichsoldwithatypicalfinancingforthemarketareaareadjustedtoreflecttypicalmarket 3 terms. 4.FeeSimpleEstateisabsoluteownershipunencumberedbyanyotherinterest,subjectonlytothe 4 governmentallimitationsincluding:eminentdomain,escheat,policepower,andtaxation. 5.LeasedFeeInterestisanownershipinterestheldbythelandlord,whoconveystherightsofuse andoccupancytoatenantbylease.Thelandlord’srightsincludetherighttoreceiverentand therightofpossessionattheendoftheleaseperiod. 6.MarketValueoftheTotalAssetsoftheBusiness(MVTAB)isthemarketvalueoftheallofthe 6 intangibleassetsofabusinessasifsoldinaggregateasagoingconcern. 7.MarketValueisdefinedasfollows: "Themostprobablepricewhichapropertyshouldbringinacompetitiveandopen marketunderallconditionsrequisitetofairsale,thebuyerandsellereachacting Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) prudently,knowledgeably,andassumingthepriceisnotaffectedbyunduestimulus. Implicitinthisdefinitionistheconsummationofasaleasofaspecifieddateandthe passingoftitlefromsellertobuyerunderconditionswhereby: a)Buyerandselleraretypicallymotivated; AppraisalCompanyofKeyWestPage22 Packet Pg. 82 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL b)Bothpartiesarewellinformedorwelladvised,andeachactinginwhatheconsidershis ownbestinterest; c)Areasonabletimeisallowedforexposureintheopenmarket; d)PaymentismadeintermsofcashinU.S.dollarsorintermsoffinancialarrangements comparablethereto; e)Thepricerepresentsthenormalconsiderationforthepropertysoldunaffectedbyspecial 7 orcreativefinancingorsaleconcessionsgrantedbyanyoneassociatedwiththesale." Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage23 Packet Pg. 83 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PROPERTYRIGHTSAPPRAISED Thisreportcontainstheresultsofmyinvestigationandanalysismadeinordertofurnishanestimate oftheAsIsMarketValueoftheFeeSimpleInterest inthesubjectproperty.TheFeeSimpleInterest istheunencumberedvalueofthesubjectproperty;basically,marketrentsandtermsareconsideredwith noregardtoexistingleasesandterms.TheFeeSimpleInterestisanownershipinterestheldbythe landlord,whoconveystherightsofuseandoccupancytoatenantbylease.Thelandlord’srights includetherighttoreceiverentandtherightofpossessionattheendoftheleaseperiod.Thesubject propertyistenantoccupiedbythreetenants,whilethestorageunitisowner-occupiedandthetwo SimontonStreetFrontUnitsandVacant.Thetenantoccupiedunitsarerentedonamonth-to-month. Inthecaseathand,onlytheFeeSimpleAnalysiswasapplicable. LEGALDESCRIPTION ThefollowinglegaldescriptionwasobtainedfromtheListingBroker,asfollows: Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage24 Packet Pg. 84 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL SUBJECT’SMARKETAREA(NEIGHBORHOOD)ANALYSIS ThesubjectparcelislocatedwithinthedowntowncommercialbusinessdistrictintheNorthwesterly quadrantoftheCityofKeyWestapproximatelysevenblocksnortherlyofTrumanAvenue.Thesubject propertyislocatedonthe300blockofSimontonStreet.Allofthese“OldTown”mainstreetsprovide excellentaccessandexposuretothedowntownbusinessdistrict.Theimmediateareaofthesubject propertytendstoattractthemosttouristandpedestrians.Therefore,thesubjectpropertyhasexcellent exposurealonglowerDuvalStreetandtheKeyWestHistoricSeaportcorridor.Thissectionisknown as“OldTown,”withintheHistoricPreservationDistrictislocatedinthe“HighRent”district,the highestpedestriantrafficandtouristareaattractionswithintheDuvalStreetcorridor.Presently, MallorySquareboastsanightlyritualofsunsetcelebrationusuallyattendedbytourists,locals,jugglers, artists,fire-eatersandperformersofallsorts.Thisareaisutilizedduringthedayasacruiseportand nightlyasanopen-air“carnival”withvendorsandperformersforthesunsetcelebration. Thesubject'sneighborhoodisborderedonthenorthandwestbytheKeyWestHarborandtheGulfof Mexico,ontheeastbyEisenhowerDriveandonthesouthbyTrumanAvenue,U.S.HighwayNo.1. ThisneighborhoodiscommonlyreferredtoastheDowntown“OldTown”district.Itislocatedwithin asectionofthecity,wherearchitectureandbuildingconstructionarehistoricallypreserved. Thestructuresareamixtureofbrick,CBS/masonry,orframe,historicallypreservedstructuresmore than50yearsofage.Thisareaisapartofthe"OldTown"sectionoftheislandwhichisfullydeveloped exceptforafewisolatedvacantparcels.Theprincipallandusesarecommercialandcommer- cial/residentialmixed-usebuildings.Theoriginalmanufacturingorindustrial-typeuseshavevacated thearea. TheexistingprojectswithintheKeyWestBighta.k.a.HistoricalSeaportareaareatstabilized occupancyandthriving.Thoughsomeoftheproposedprojectswillbephased-in,offeringconcessions, andreducingrentalratesinordertooffsetvacancies,increasedcompetitionforcommercialtenants. Thereareveryfewunsightlyareasinanyofthesurroundingneighborhoodsofthesubjectparcel.There isanareawhichislocatedaboutone-halfmilewesterlyandtothesouth,whichhasnotseenthegrowth orrevitalizationofthemajorityofthe"OldTown"district.Someunsightlystructuresstillexistinthis area;however,slowlyimprovementsaretakingplace.Thisareaiscommonlyknownas"Bahama Village.”Renovationprojectsandindicateanactiveinterestingentrificationofthisarea,especially withitsproximitytotheTrumanAnnexCommunity.TheTrumanAnnexComplex,asecured,multi- Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) milliondollarmixed-usecommunity,islocatedadjacentnortherlyofBahamaVillage(whichislocated southerlyofAngelabetweenThomas/WhiteheadStreetsandnortherlyofLouisaStreet).TheTruman Annexcomplexislocatedapproximatelyoneblockwesterlyfromthesubjectproperty;therefore,the subjectispositivelyaffectedbythecontinuedsuccessofthisupscaledevelopment.Intheappraiser’s opinioneconomicswillcontinuetobringaboutrehabilitationandrestorationtoallofthesurrounding areaswitheventualrehabilitationofthe"BahamaVillage"areawhichispresentlyspotty. AppraisalCompanyofKeyWestPage25 Packet Pg. 85 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Developmentwithinthesubject’simmediateareahadbeenveryheatedasthereboundfromthe recessionhasbeenstrongsincetheof2011.ResidentialrealestateintheOldTownMarketareais approachingthealltimehighsagainpriortothegreatrecession,whilegrowthinthecommercialmarket issteady,butatanormalrate,exceptforlodging.Thelodgingseatshasexperiencedrecordsalesprices duetolargeLodgingTrustsorREITSpurchasinglargeresorthotel/motels,plusassemblingsmaller guesthouseproperties.TheDuvalStreetcorridorisexperiencingrecenthighervacanciesforretail, restaurantandbarusesasrentalrateshavelikelyhittheirpeaks. TradeArea: ThetouristtradeandtraffichavebeenexpandingrapidlyinKeyWestinrecentyears.TheCityhas promotedforadditionalcruiseshipsandtheimprovementofMallorySquareasacruiseport.Thishas causedagreatdemandforthevaluablewaterfrontpropertythatwasformerlyoccupiedbythefishing industry.Theconstructionofcondominiums,timeshareunits,resortmotelsandothertourist-related businesseshaveenhancedandincreasedthevalueofthedowntownbusinessdistrictasatouristhaven. RecenttrendswithinthetradeareaincludeNationaltenantleasesalongDuvalStreet,withfamiliar namessuchas:Express,BathandBodyWorks,TheHardRockCafé,BananaRepublic,Denny’s, Coach,Starbucks,Walgreens,andCVS.Asaresult,theremaybeafurtherinfluxofthesefranchises duetothetourismdemographicswithinthearea,whichincludesmorethan2,600,000overnightvisitors withanaverageannualfamilyincomeof$60,000. Baseduponalloftheforegoingmarketactivity,currentandproposed,coupledwiththesubject’s locationandfavorableexposureandaccess,itappearsthatthesubject’slocationforcommercialretail usewouldcontinuetobesupportedbyadequatedemand,especiallysincetheOldTownsectionofthe Cityisregularlyinundatedwithcruiseshippassengersandalargesunsetpedestriancrowd.Tourists tendtowalkfromMallorySquareeasterlyonWall,FrontandGreeneStreetstowardDuvalStreet,then southerlyandnortherlyalongDuvalStreet,duetoitsbeingthemainshoppingdistrict.Touristsalso walkalongSimontonStreet,mostlyalongthefirstfourorfiveblocks.Thelimitednumberofvacant sitesandthestrictercurrentzoningregulationsgreatlyrestrictsthepotentialforadditionalmaximized commercialuses(competingproperties)withinthesubject’smarketarea. GeneralEconomicConditions: Therenovations,improvementsanddemandforpropertieswithintheareahadbeensteady;however, becauseofthenationalslowdowninthehousingmarketsupplyhadexceededdemanduntillate2011. Adistinctdeclineintheresidentialsalesvolumeandpropertyvaluesduetoincreasesininventory,less Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) demandandthedifficultyinobtainingfinancingfromtheheightofthemarket2005/2006untilabout year-end2011.Duringthisdownturn,“shortsale”,foreclosure,anddistressedsalesactivitybecame quiteprominent,unfortunately,affectingtheentiremarket.Theresidentialmarkethassignificantly rebounded.Inventoryhasactuallybecometightsince2012withincreasesnotedinaskingandsales pricesfrom2013toyeartodate2018. AppraisalCompanyofKeyWestPage26 Packet Pg. 86 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Withrespecttothecommercialretailsector,themarkethasexperiencedanincreaseintheavailability ofvacantcommercialspaceinthecommercialrealestateareaduringtherecession.However,the commercialmarket“bottomedout”neartheendof2011andhassubsequentlystabilizedfollowedby anappreciationinvalues.Therewasasignificantincreaseinsalesandleasingactivitysince2013to present.Rentalratesandoccupancyratesaretoclimbedtodate;however,itappearsDuvalStreet commercialrentalratesareatleaststabilizingasvacanciesareincreasing. Signsofrecoveryhavebeenoutstandinginthetourismmarketsince2011statisticshavebeenstrong. MostlodgingfacilitiesinKeyWestarenearoratalltimehighsinADR,occupancy,andRevPAR. February2017presentedaslightdecreaseinoccupancylevelscomparedto2016by0.8%.Inaddition, 316moreroomswereavailableinFebruary2017thanFebruary2016.However,vacationrentalsappear tohavebecomemoreandmorepopularastheyofferlargerspacesandhome-likeaccommodations. Accordingtopropertymanagers,theyhavebecomequitemarketablewithweddingpartiesandlarger familiesthatcansplitthecostandhavemoreamenitiesandprivacy.There-openingof500plushotel roomsintheNewTownareaofKeyWest,plustwonewhotelsthathave175and100roomsinnearby StockIsland,havealsotakenatollontheKeyWestmarketforADRandoccupancyfor2016and2017. Theincreaseinvacationrentalhomesandestateshavebroughtmorecompetitiontothemarket.Key WesthasenjoyedalmostsevenyearsofincreasesinADRandoccupancy.KeyWesttypicallyleads theStateofFloridaintheirstatisticsandhasbeenoneofthemostdesirablelocationsforlargehotel REITS.Therehasbeenanextremelyactivemarketforsalesoflargeresorthotels,atrecordprices,up to$1millionperkeyorroom. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage27 Packet Pg. 87 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Thefollowingaveragedailytwo-waytrafficdatawasprovidedbytheStateofFloridaDepartmentof Transportation: AVERAGEDAILYTRAFFICCOUNTS AverageDailyTrafficCount(BothDirections) D.O.T. StationLocation2010201120122013201420152016 5004US-1/TrumanAve.,200'W.FirstSt.22,00020,50019,50019,60015,50018,10021,000 5008SR-5/US-1/TrumanAve.,200'W.WhiteSt.17,70014,70013,60014,70016,10016,70015,700 5011SR-5/US-1/TrumanAve.,200'E.DuvalSt.9,7009,0008,1008,5009,30010,2009,100 AdvantagesandDisadvantagesofSubjectProperty: Strengths •LocatedinwithinproximitytoDuvalStreet,downtownmainstreetandtheKeyWestHistoric Seaport •Neighborhoodis99%developedwithlimitedpotentialfornewconstruction •PredominatelyHistoricalStructures •Excellentpedestriantraffic •WalkingdistancetoMallorySquare,KeyWestHistoricSeaport,CruisePortandtourist attractions(Essentiallynextdoor) •AppreciatingMarketValues Weakness: •Seasonaltraffic •LargeGrossBuildingAreathatneedstobeOccupied •Parkingislimitedandveryexpensiverates.SubjectPropertyhassignificanton-siteparking, whichisatypical.Probably14to15spaces,moreifparkedintandem MarketParticipants: Interviewswithlocalshopownersandtenantsreveledthattheysufferedduringthewholemonthof SeptemberwhiletheCitywasintherecoverycleanupperiodafterHurricaneIrma.TheCityofKey thst Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) WestwasessentiallyclosedfromSeptember9toOctober1,2017.Manyoftheownershelpedrelieve theeconomicpressurebyofferingthetenantsdeferredrentforoneortwomonthsfollowingthe hurricane.TheCitybegantorecoverduringOctoberasaresultoftheannualeventsandfestivitiesof FantasyFest.Thoughtheeconomybegantorecover,itwasnotaswellattendedasinpreviousyears. Duringthissameperiodthecruiseshipsbegantoreturnwhichalsohelpedintherecovery.Many AppraisalCompanyofKeyWestPage28 Packet Pg. 88 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL ownersandtenantsreceivedassistancefromFEMAandacquiredSBAloantoassistthemduringthe tryingtimes. Theappraisersinterviewedorobtainedinformationfromthefollowingmarketparticipantsincluding ClaudeJ.GardnerJr.,WillLangley,PrincipalBroker(BerkshireHathaway,Knight&GardnerRealty), CurtisA.Skomp,CCIM,(RE/MaxRealEstate),andMarilynWilbarger,SeniorPropertyManagerfor theCityofKeyWest.MostoftheRealtor’sandbrokersthatweinterviewedindicatedthatHurricane IrmadidnotsubstantiallynegativelyimpacttheKeyWestresidentialorcommercialmarket.Noneof themindicatedthatanexistingtransactionwasindefault.Realtors’indicatedthatshowingsare continuingwithanaverageofprospectivebuyers,thoughsomearelookingfor“belowmarket”deals. However,brokers’areoptimisticwiththehighseasoninthecomingmonths. AsshowninDemographicschart,theKeyWestChamberofCommerceTourismCommitteeprovided datawhichindicateda62.8%decreaseincruiseshippassengerarrivalscomparedtoSeptember2016. However,upuntilSeptemberitappearsnumberswere9.8%higherfortheyearcomparedto2016.The th KeyWestSeaportwasclosedfromSeptember6toSeptember22,2017.Inaddition,theKeyWest InternationalAirportindicateda64.5%decreasecomparedtoSeptember2016.Theairportwasclosed th fromSeptember8toSeptember19,2017.Overall,theoccupancyratesremainedstrongforKeyWest comparing2016to2017,at83.1%and82.1%,respectively.ConsideringHurricaneIrmamadelandfall inKeyWest,theoccupancyratesdidn’tchangegreatly,onlyby1%.Furthermore,theaveragedaily ratesremainedstableat$256.13for2016and$256.15for2017.JanuarytoMarch2018indicatean occupancyrateof91.5%andaveragedailyratesat$310.93.ComparingMarch2017toMarch2018, therewasincreaseof5%inaveragedailyrate. Historically,KeyWestandMonroeCountyhashadaquickrecoveryfollowingpastseverehurricanes, includingDonna,George,WilmaandnowIrma.Generally,economicconditionsbegantorecover withinmonthsfollowingthehurricaneorthepassageofthenextwinterwhichismyhighseason. Furthermore,frequentlymanyextrathecruiseshiparereroutedtoourisland,becauseoftenmanyof theCaribbeanIslandshavebeenimpactedandhaveclosedtheirports.Astourismisthedriving economicforcewehavemanyseasonalsecondhomedwellersandmanyspecialeventsthroughoutthe entireyear.TheseincludeWorldChampionshipboatraces,sailboatraces,artshows,Hemingwayand literaryweek,FantasyFest(Halloween),fishingtournaments,Parrot’Headsannualsongwriters,Key WestTheater,KeyWestArtCenter,KeyWestFilmFestival,HarborWalkLights,etc. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage29 Packet Pg. 89 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL DEMOGRAPHICS IincludedthemostrecentDashboardTrendsfromtheKeyWestChamberofCommerceonthe followingpages. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage30 Packet Pg. 90 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage31 Packet Pg. 91 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL IntermsofdemographictrendstakingplaceinKeyWest,Floridathefollowinginformationhasbeen compiledbytheKeyWestChamberofCommerce: Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage32 Packet Pg. 92 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage33 Packet Pg. 93 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage34 Packet Pg. 94 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage35 Packet Pg. 95 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage36 Packet Pg. 96 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL MARKETINGTIME Basedonsalesofcomparablecommercialpropertiesinthesubject'smarketarea,Iestimateda9to18 monthsorlessmarketingtimeiflistedwithin5.0percentoftheappraisedvalue.Themarketingtime estimateisbasedoninterviewsofrealestateagentsandmarkettimeinformationanddaysonmarket (DOM)forthecomparableproperties.Thismarketingtimecouldbenegativelyaffectedbycompetition fromsimilarfacilities.Theactivelistingsindicatearangeof75to1,314days,(3.6years)withamean of541days(18months)andamedianof235days(about8months).Ianalyzedthedaysonmarketof commercialsalesforthesubjectpropertyarea.Althoughthesaleswerenottrulysimilartothesubject property,duetoitslargegrossbuildingareaandsitearea,thesalesindicatearangefrom0to500days, withameanandmedianof260and260days,respectively. ActiveListingsofPropertiesLocatedinDowntownMarketArea MLSOriginalListSq.Ft./Land$/SF$/SFTotalDays NumberPropertyAddressListPricePriceGBASq.Ft.GBALandOnMarketStatusComments CBSbuildinglocatedneartheKWSeaport.Structure offersretail/warehouse/workshopdownstairsand 582797311MargaretSt.$2,495,000$3,595,0008,7508,200$411$4381,314Active office/storage/apartmenton2ndfloor.Property includesageneratorandon-siteparking. CBSbuildinglocatedinNewTownAreaofKeyWest. Structureissplitinabouthalfofficespaceand 5819083420NorthsideDrive$4,950,000$4,950,00011,73184,000$422$5975Active warehousearea.HadquartersoftheKWCitizen newspaper. MetalFreeSpanbuildinglocatedinNewTownArea 5820561910N.Rsvlt.Blvd.$3,600,000$3,700,0005,25032,491$705$114235ActiveofKeyWest.Structureisusedbyascooter/cartrental business. Mean$513$204541 Median$422$114235 Minimum$411$5975 Maximum$705$4381,314 Althoughthelistingsarenotidenticaltothesubjectproperty,theydemonstratetheavailableproperties atthistime. EXPOSURETIME Exposuretimeistheamountoftimenecessarytoeffectasaleofthesubjectpropertyonthevaluation Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) date.Therefore,weconservativelyprojecta9to18monthsexposuretimeforthesubject,basedona listingpricewithin5.0%ofmyappraisedvalue. AppraisalCompanyofKeyWestPage37 Packet Pg. 97 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL OWNERSHIP AccordingtotheMonroeCountyPropertyAppraiser'srecords,thesubjectpropertyisownedby: BCPLLC 1409SunTerrace KeyWestFL33040 SALESHISTORYOFSUBJECTPROPERTYANDCURRENTCONTRACTS ThesubjectpropertyhasbeeninthePapyfamilysincetheearly1900's.Thesubjecthasbeenlistedfor saleforapproximately250daysorabout(8.3months)withanaskingpriceof$2,350,000.OnMarch 23,2018,thesubjectpropertywaspropertywasundercontractforsaleandpurchasefor$2.3million; however,thebuyercouldnotproveproofoffundsandthecontractwascancelled.OnJuly26,2018, thesubjectpropertywasundercontractforsalesandpurchaseatapriceof$2million.Thecontract pricewaslaterchangedto$2,190,000.Thecontractwascontingentonthereceivingapprovalsfromthe CityofKeyWestandHARC(HistoricalArchitecturalReviewCommission)todemolishtheexisting building.Thebuyerintendedtoredevelopthepropertyasaparkinglot.Asaresult,thebuyerwas paying$2,190,000plusdemolitionforlandvalue.However,HARCdeniedtherequestasitconsidered thestructuresas“Contributing”duetothemainbuildingsconstruction(brick)andthehistorical significanceofbeingownedbyBernieC.Papy,Sr.,knownastheKingofKeyWest,onofthemost influentialandaccomplishedpoliticiansinKeyWesthistory.Thepropertyisnotcurrentlyundercon ZONING ThesubjectpropertyislocatedwithinthehistoricneighborhoodcommercialdistrictTruman/Simonton (HNC-1)consistsofSimonton,TrumanAvenue,andWhiteStreetSouthCorridors.TheHNC-1district islocatedalongmajorsegmentsofSimontonStreet,fromCarolineSouthtoUnitedStreet;Truman Avenue,fromSimontonStreetnortheasttoWhiteStreet;andWhiteStreet,fromTrumanAvenuesouth toUnitedStreet;andgenerallyincludeslargerscalecommercialusesorientedtowardthemotoring public. TheHNC-1districtisrestrictedtosmalloffices,neighborhoodshops,restaurantswithverylimited Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) seatingandothercommercialusessimilarincharactertotraditionalneighborhoodcommercialservices, whichhavelimitedsquarefootageandgeneratelowtraffic.Thezoningdistrictpermitssingle/two familyandmulti-familyresidentialdwellings,businessandprofessionaloffices,limitedcommercial activities,medialservices,parkinglotsandfacilities,restaurants(excludingfastfoodanddrive-ups), veterinarypropertyservices,andplacesofworship.Transientguestunitsarenotpermittedasofright. AppraisalCompanyofKeyWestPage38 Packet Pg. 98 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL ThedimensionalrequirementsintheHistoricNeighborhoodCommercialDistrictTruman/Simonton (HNC-1)areasfollows;however,constructionmaybelimitedbyproportion,scaleandmass considerationsasexpressedthroughthehistoricarchitecturalreviewcommissiondesignguidelines: (1)Maximumdensity:16dwellingunitsperacre(16du/acre). (2)Maximumfloorarearatio:1.0.Refertosection122-776foradditionalrestrictionsthat regulatethesquarefootageofgrossleasablefloorareabasedontripgenerationwithinHNC areas. (3)Maximumheight:35feet. (4)Maximumlotcoverage: a.Maximumbuildingcoverage:50percent. b.Impervioussurfaceratio:60percent. (5)Minimumlotsize:4,000squarefeet. a.Minimumlotwidth:40feet. b.Minimumlotdepth:100feet. (6)Minimumsetbacks: a.Front:5feet. b.Side:5feet. c.Rear:15feet. d.Streetside:7.5feet. Thesubjectpropertyisalegal,nonconforminguse,whichhasbeengrandfatheredwithrespectot maximumlotcoverageandsetbackregulations.ThereaderisreferredtotheHighestandBestUse Sectionforfurtherdetailsoncurrentzoningregulations. Therefore,iftheimprovementsaredestroyedbyfireornaturaldisaster,theywouldnotrequire variancesorspecialexceptionforreconstruction.However,intheeventthattheyarebuiltbelowthe floodzonecriteria,andtheimprovementsaredestroyedbeyond49.9percentoftheimprovementvalue, thesubjectwouldalsoberequiredtomeetthepresentfloodelevationcriteriaandregulationsineffect. Theappraiserhasreferencedsomezoningcriteriaabove.Forfurtherdetails,thereaderisreferredto theCityofKeyWestBuildingDepartmentortheLandDevelopmentRegulationsfortheCityofKey West. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage39 Packet Pg. 99 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL REALESTATETAXESANDASSESSMENT 316&3161/2SimontonStreet,KeyWest,Florida ParcelNo.00004220-000000-AlternateKey1004391 StormwaterTotal BuildingMisc.JustTotalTaxTax TaxBurdenTaxBurden YearLandImprovementsImprv.MarketValueAssessmentBurdenMillage 2017$1,087,250$0$0$1,087,250$1,087,250$9,973.24$1,046.60$11,019.849.1729 2018$1,342,840$546,896$5,560$1,895,296$1,195,975$13,124.29$1,046.60$14,170.899.0102 Basedonthe2017millagerateof$9.0102per$1,000ofthesubject’s2018assessedvalueis$1,195,975 withatotaltaxburdenof$14,170.89,includingthe$1,046.60stormwaternon-advaloremassessment. Theoverallassessmentforthesubjectrealpropertyisonly55%ofthe“AsIs”valueofthesubject property.TheJustMarketValueof$1,895,296isthevaluesetbytheCountyPropertyAppraiser.This valueissolelyutilizedbytheStateandCountyforschools,thetotalassessmentisusedbytheother varioustaxingdistricts.The2018millagerateis9.0102(perthousand).The2018millageratehasnot yetbeenfinalized.Therefore,ataxappealdoesnotappearfeasibleatthistime.Acopyofthereal estateandtangibletaxassessmentsandtaxburdenisincludedasfollows.Itappearsthatthe2018real estatetaxeshavebeenpaid.However,atitlesearchwasnotmadeforthesubjectproperty. RealEstateTaxAnalysisFor2017 $/S.F. TotalAssessmentperSq.Ft.ofSiteArea:$119.07 TotalTaxBurdenperSq.Ft.ofSiteArea:$0.89 TotalAssessmentperSq.Ft.ofGBA:$233.35 TotalTaxBurdenperSq.Ft.ofGBA:$1.74 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage40 Packet Pg. 100 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL TAXINFORMATIONFOR2018 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage41 Packet Pg. 101 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL DESCRIPTIONOFTHESUBJECTPROPERTY SiteAnalysisThesubjectsiteconsistsofanirregular-shapedinteriorcornerparcelwith86feetof frontagealongthewesterlyboundaryofSimontonStreetandextending214.25feetwesterlyindepth foratotalsiteareaof15,918squarefeet.ThesurveywaspreparedbyIslandSurveying,Inc.,dated April25,2011.Theappraisersutilizedthedimensionsprovidedinthesurveyandthesiteareais referencedfromtheMonroeCountyPropertyAppraiser’srecords.Anydeviationsfromthesesizeswill likelyresultinachangeinvalue.Ifandwhen,amorerecentsurveyismadeavailableforthesubject property,theappraisersreservetherighttoamendthefinalvalue. AccordingtoMr.JimAndersonoftheTallahassee,FloridaDivisionoftheUnitedStatesCensus Bureau,MonroeCountyisnotdividedintoCensusTracts;butrather“BlockNumberingAreas.” Accordingto2010CensusMaps,thesubjectpropertyislocatedwithinBlockNumber9725. FloodZone:AnElevationCertificatewasnotmadeavailable.Thesitedoesnotappeartobelocated inaSpecialFloodHazardArea.ItislocatedinZoneX,FederalEmergencyManagementAgencyFlood InsuranceRateMapsofMonroeCounty,Florida,CityofKeyWest,MapNumber12087C1516K,dated February18,2005.Accordingtothesurveyprovided,theBuilding“A”,“B”and“C”havefinished floorelevationsof8.36feet,12.48feetand10.11feet.Therefore,itappearsthatthefirstlevelofthe subjectbuildingsdomeetcurrentFEMAelevationrequirements. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage42 Packet Pg. 102 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL FEMAFLOODMAP&PANEL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage43 Packet Pg. 103 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL COUNTYFLOODMAP Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage44 Packet Pg. 104 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL ImprovementAnalysis:Thesubjectbuildingsconsistsofalargeone-storyhistoricalbrick/CBS/wood framestructurewhichwasoriginallytheheadquartersandofficeofBernieC.Papy,Sr.,oneofthemost powerfulpolitician’sinKeyWesthistory.Mostofthemainbuilding(Building“A”)isgenerally unfinishedandmostrecentlyutilizedforwarehouseandworkshop.Aboutaquarterofthebuildingis finishedforretailorofficeuse.Thestructurewasbuiltcirca1890,perhistoricalsources.Thestructure encompassesagrossbuildingareaof5,633squarefeet.Mostofthestructureisvacant,whiletherear workshop/warehouseareaisoccupiedbyMonroeGlassandMirror,plusa200squarefootsectionis occupiedbyKeyWestEscapeRoom,anattraction. Building“B”totherear,isaonestoryCBS/masonrystructure,thatwasoriginallytheicehouseforthe SchlitzBeerdistributor,ownedbyMr.Pappy.TheMonroeCountyPropertyAppraiserindicatesayear builtof1958.Itisowner-occupiedandutilizedforstorage/workshopandcontains850squarefeet. Building“C”isaone-storywarehousestructurewithasmallofficeandislocatedattheveryrearofthe site.Thisstructureincludes1,639squarefeetofgrossbuildingarea.Theoverallcomplexhasagross buildingareaof8,122squarefeet.ThisunitisoccupiedbyMonroeCountyGlassandMirror. SUBJECTUNITMIX&BUILDINGSIZES UnitSize Bldg.UnitNo.UseSq.Ft. "A"No.1Retail/Warehouse2,860 "A"No.2Retail/Office1,178 "A"No.3Warehouse1,595 GBAforBuilding"A":5,633 "B"No.4Warehouse850 GBAforBuilding"B":850 "C"No.5Office/Warehouse1,639 GBAforBuilding"C":1,639 GrossRentableArea:8,122 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) TotalCommonArea:0 GrossBuildingArea:8,122 AppraisalCompanyofKeyWestPage45 Packet Pg. 105 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Aconstructionsummaryofthebuildingimprovementsfollows: ElementDescription BasicStructure:Three,One-StoryBrick;CBSorFrame Use:Retail/Office/Warehouse YearBuilt:1890,1958and1953 Foundation:ConcreteFooterFoundation FloorStructure:ConcreteSlabonGrade ExteriorWalls:PaintedPlasteroverBrick,StuccooverCBS&Frame ExteriorWindows:FixedStorefrontPlateGlassWindowsandMetalSashWindows ExteriorDoors:GlassSolidWoodDoorswithsomeFrenchdoorsalongeasterlyside ofbuildingandmetaldoors. RoofStructure&WoodFrameTrussFlatandGabledRoofSystemswithFibertiteand Cover:MetalCover InteriorFloorFinish:ConcreteFloorsCeramicTileandVinylTile InteriorWalls:PaintedDrywallWallsorExposedCBS InteriorCeilings:PaintedDrywallorExposedRoof ElectricService:AdequateforUse Bathrooms:Multiple2FixtureRestrooms AirConditioning:MostlynoHVAC,someSplitSystemsandWallUnits ConstructionQuality:Average ImprovementCondition:Average BuildingAge: SubjectPropertyEffectiveAge&EconomicLifeSummary 316&3161/2SimontonStreet,KeyWest,Florida Remaining YearEffectiveEconomicEconomic BuildingDescriptionBuiltAgeAgeLifeLife Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) One-Story/CBS/Brick/Frame1890128355015 A OneStory/CBS/Masonry195860405010 B One-Story/CBS/Masonry195365305020 C AppraisalCompanyofKeyWestPage46 Packet Pg. 106 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Amenities,Extras&Site Improvements:Thereisoffstreetparkingforabout14to15vehicles,perhaps substantiallymoreifparkedintanden.Adrivewayextendsalongthe southerlysideofthesite.On-street,meteredparkingisavailablealong SimontonStreet,alongwithmanymunicipalandprivatelyowned parkinglotswithintheimmediatearea.Thesubjectpropertyislocated withinaparkingwaiverzone;thus,on-siteparkingisnotrequired. Fixtures &Equipment:Thevaluationdoesnotconsideranypersonalpropertyorfurniture, fixturesandequipmentinmyevaluation. EnvironmentalIssues:Inthisappraisalassignment,theexistenceofpotentiallyhazardous materialusedintheconstructionormaintenanceofthebuilding,suchas thepresenceofradon,asbestosinsulationand/orexistenceoftoxicwaste, whichmayormaynotbepresentontheproperties,hasnotbeen considered.Weurgetheclienttoretainanexpertinthisfieldifdesired. ADACompliance:TheAmericanswithDisabilitiesAct("ADA")becameeffectiveJanuary 26,1992.Theappraisershavenotmadeaspecificsurveyoranalysisof thispropertytodeterminewhetherornotitisinconformitywiththe variousdetailedrequirementsoftheADA.Theappraisersrecommend thataContractororEngineerbehiredtodeterminecomplianceor noncompliance,ifsodesired.Theappraisersarenotcontractorsandare notqualifiedtomakeadeterminationifthebuildingadherestothe requirements.Theproperty,togetherwithadetailedanalysisofthe requirementsoftheADA,couldrevealthatthepropertymayormaynot beincompliancewithoneormoreoftherequirementsoftheAct.Ifso, thisfactcouldhaveaneffectuponthevalueoftheproperty. LotCoverage Ratio:Thesubject'slotcoverageratioiscalculatedbydividingthefirstfloor buildingfootprint,includinganycoveredentriesandporchesbytheland size.Therefore,thesubject'slotcoverageratiois: Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) 0.51%(8,122SF/15,918SF) Alotcoverageof50.0%isallowedinthesubject'szoningdistrict; therefore,thesubjectpropertyappearstoslightlyexceedthepermissible lotcoveragerestriction. AppraisalCompanyofKeyWestPage47 Packet Pg. 107 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL FloorAreaRatio:Thesubject'sfloorarearatio(FAR)iscalculatedbydividingthetotal grossbuildingareabythelandsize.Thesubjectproperty'sfloorarea ratiois0.51:1.00(8,122SF/15,918SF).AFloorAreaRatio(grossfloor areatolotarea)ofupto1:1ispermittedinthesubject'sdistrict; therefore,thesubjectpropertyiswellwithinthepermissibleratio guideline. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage48 Packet Pg. 108 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL BUILDINGSKETCH Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage49 Packet Pg. 109 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL FLOORPLAN Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage50 Packet Pg. 110 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL SURVEY Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage51 Packet Pg. 111 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL HIGHESTANDBESTUSE InordertoestimatetheHighestandBestUseofthesubjectproperty,theappraisershaveconsidered thoseusesthatarephysicallypossible,legallypermissible,maximallyproductive,andfinancially feasible. "AsIfVacant":Thesubjectsiteconsistsofa15,918squarefootslightlyirregular-shapedcornersite withapproximately86feetoffrontagealongthewesterlysideofSimontonStreetandextending214.25 feetindepth.Thecurrentzoningregulationsrequireaminimumlotsizeof4,000squarefeetwitha minimumlotwidthof40.0feetandaminimumlotdepthof100.0feet.Thesubjectsitedoesconform tominimumlotsizerequirements.Basedontheabovephysicalfacts,variouslandusesarepossible. Thephysicalaspectsofthelandimposethefirstconstraintsonanypossibleuseoftheproperty.The HighestandBestUseisthatfeasibleusewhichproducesthehighest(greatest)returntotheland.Based onthecurrentzoning,coupledwiththelimitednumberofsimilarsitesinthesubject'sarea,myopinion isthattheHighestandBestUseofthesite,ifvacant,wouldbeforacommercialretail/officeormixed commercialandresidentialuseobtainingmaximumutilizationofthelandasallowedbycurrentzoning regulations. "AsImproved":Thebuildingcontains8,122squarefeetofgrossbuildingarea.Although,thesubject buildingandsiteimprovementsonlyhaveacontributoryvalue(basedonsignificantdepreciation)of onlyabout$350,000.BasedonHARC,theexistingbuildingscannotbedemolishedandanyconversions orredevelopmentmustutilizetheexistingstructuresduetothehistoricalnatureoftheproperty. Thereforeexistingimprovementsstillmakeacontributiontothetotalpropertyinexcessofthevalue ofthesite.Asaresult,noalternativelegalusewouldeconomicallyjustifyremovaloftheexisting improvements,plusitsnotpermissibleperHARC.Thecurrentuseofthesubjectparcelasamostly warehouseuseisnottheHighestandBestUseofthesiteasofthedateofthisreport. Abuyerwouldlikelyconvertorbuildoutthepropertyintoaretail/officeuse.Thesubjectdoesnothave anyresidentialentitlements.TransientROGOscouldbepurchasedontheopenmarketandtransferred totheproperty;however,theyaredifficulttofindandcostly.ThepotentialusebyMonroeCountyfor thePublicDefender’sofficeappearstobefeasible,andislikelythehighestandbestfutureuse.I analyzedcomparablesaleswhichwereallpurchasedforconversionandrequiredsubstantialbuildout andrenovations.Thearchitectforthecountyestimatesrenovationcostsinthe$250persquarefoot range,whichindicatesacompletedexpense(acquisitionplusrenovations)ofabout$520to$550per Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) squarefootofgrossbuildingarea,whichistowardstheupperlimitforofficespace,especiallylarger insize.Thus,Iwouldcautiontotrytoadequatelybudgetthecosts,althoughretrofitcostsareoften higherthannewconstruction,toensurepotentialfeasibility. AppraisalCompanyofKeyWestPage52 Packet Pg. 112 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL APPRAISALDEVELOPMENTANDREPORTINGPROCESS SCOPEOFWORK Therearethreetypicalapproachestovaluetoconsiderineachappraisalassignment.Thethree traditionalapproachestovaluearetheCostApproach,theSalesComparisonApproachandtheIncome (DirectCapitalizationand/orDiscountedCashFlow)Approach.Thethreeapproachestovaluearenot alwaysapplicabletotheassignment;however,thethreeapproachestovaluearealwaysconsidered. Allappraisalsbeginbyidentifyingthesubjectproperty(propertytobeappraised)andtheappraisal problem.Datarelevanttothesubjectpropertyisobtainedfromvarioussourcesincludingbutnot limitedto:theMonroeCountyPropertyAppraiser'sOffice,surveys,buildingplansandspecifications andthepropertyowner.Ifpossible,morethanonesourceisutilizedtoconfirminformation. Improvements,ifapplicable,areinspectedandmeasuredbytheappraisers.Ifandwhenbuildingplans orsketchesaremadeavailable,themeasurementsareverifiedforaccuracy.Landsizeisbasedon recordedplatmaps,MonroeCountypublicrecords,legaldescriptionsorsurveys(whenavailable).The localgeographicalmarketwasresearchedandanalyzed. Theappraisersdescribethebuildingimprovementsindetail,ifapplicable;thesedescriptionsarebased onaphysicalinspectionand/orplansandspecifications.Theappraisersarenotcontractorsnor structuralengineers;therefore,structuresoundnessordamagecannotbewarranted.Theappraiserwill noteanyapparentorpotentialproblemssuchasdeferredmaintenance,waterdamageorspaulding. TheCostApproachconsistsofcombiningtheestimatedvalueoftheland,basedoncomparablesales, withthedepreciatedvalueoftheimprovements.Thevacantlandsalesarealwaysinspected.Thecost oftheimprovementsisestimatedbyutilizingacostservice,MarshallandSwift,plusknowledgeof coststoconstructobtainedfromlocalcontractors. Exteriorsitevisitsofthecomparableimprovedsalesarealwaysmade;interiorwalk-throughvisitsare madewhenpossible.Salespricesforthecomparablesalesareobtainedfromthepublicrecords.Prices arecustomarilyconfirmedwithapartytothetransaction,i.e.,buyer,seller,closingagent/attorney,or realestateagent.Thepublicrecordsareresearchedformortgagetermsandinformation. ThecomparablesalesareresearchedutilizingFirstAmericaRealEstateSolutionandRealist.com, (FARES),FlexMLSandLoopNet.comarecomputerizedMLS(MultipleListingSystem).Allsources Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) usedatafromtheMonroeCountyPropertyAppraiser’sOffice,aswellas,fromthepublicrecords.The dataisverifiedandcompiledintosalesheetslocatedwithinthisreport.Additionaldatasourcesinclude: newspaperclippingsandtheNationalMultipleListingService.Realestateagentsinthemarketarea areinterviewedforthemostcurrentinformationonsalesandlistings.Alloftheinformationisanalyzed inpreparingthereportandisutilizedinsupportingtheindicatedvalue. AppraisalCompanyofKeyWestPage53 Packet Pg. 113 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Thereaderoftheappraisalshouldbemadeawarethatthevaluationcontainedhereinisbasedona specificdate.Thevalueestimatedonthespecifiedvaluationdatewilllikelydifferfromthevalueone, twoorthreeyearsinthefutureorinthepast.ThereaderisadvisedtoreviewtheAssumptionsand LimitingConditionsinSection,aswellas,theCertificateofValue. Finally,thethreeindicatedvaluesdevelopedbytheapproaches,arereconciledtoproducethefinalesti- mateofvalue.Abriefdescriptionofeachoftheapproachestovaluefollows: THECOSTAPPROACH TheCostApproachisdeterminedbytakingthevalueofthelandandaddingtoitthedepreciatedvalue ofthepresentimprovements.Aseparatelandanalysisisdonetodeterminethevalueoftheland.This approachisbasedonthePrincipleofSubstitution,whichstatesthatapurchaserwillnotpaymorefor anexistingpropertythanthecosttoreproduceit,inasimilararea,assumingthatitcouldbereproduced withoutdelay. Similar,fairlyrecentvacantlandsalewereavailableforanalysisandareliablelandvalueforthesubject wasestimatedherein.Thesubjectbuildingsareolderwithalargeamountofdepreciationandmostly lacksubstantialbuildout.Asaresult,thebuildingandsiteimprovementsdonotaddasignificant amountofcontributoryvalue,whichactuallymakestheCostApproachmorereliableastheLandValue issolidandrepresentsthemajorityoftheoverallvalue.TheCostApproachwasweightedmoderately inthefinalreconciliation. THEINCOMEAPPROACH TheIncomeApproachtovaluepresumesthatnoprudentbuyerwillpaymoreforthesubjectproperty thanthecapitalizedrentalvalueattainablethroughownershipoftheproperty.Thebuyerwillonlybe willingtopaythepresentvalueofwhatheconsidersthosefuturebenefitstobe.Thisapproachis consideredtobethestrongestindicatorofcurrentfairmarketvaluewhenthepropertyispurchasedas anincome-producingpropertyhavingareliablehistoricalcashflow.Inthecaseathand,thesubject propertyhasafewmonth-to-monthtenantsatbelowmarketrentalrates.TheIncomeApproachisnot consideredapplicableasmostofthestructuresareunfinishedandthepropertyisgenerallyunder- utilized.Furthermore,abuyerwouldlikelypurchasethesubjectforredevelopmentorconversion. THESALESCOMPARISONAPPROACH ThisapproachisalsobasedonthePrincipleofSubstitution.Whenapplied,itstatesthatwhensimilar Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) (comparable)propertiesinsimilarlocationsareadjustedforanydissimilarities,thevaluefromthese comparablepropertiescanindicateanestimateofvalue.Thisapproachwasalsoconsideredareliable indicatorofvalueasthesubjectpropertyisanowner-usertypepropertywithincomeproduction. Ihaveconsideredcomparablesalesofsimilarlargecommercialpropertiesthatrequiredsubstantial buildoutandconversion.Thesecomparablesalesareatthelower-endofthespectrumwithregardto AppraisalCompanyofKeyWestPage54 Packet Pg. 114 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL pricepersquarefootofgrossbuildingarea.Allofthecomparablepropertieswerewithinthe Downtown,OldTownarea. Eachofthecomparablesalesindicatesaunitofmeasurevaluebasedonitssaleprice.Ananalysisof thesalesonapricepersquarefootofgrossbuildingarearesultedinarelativelytightvaluerange.Due totherelativesimilarityofthesubjectpropertyandthecomparablesales,thismethodwasdeemedthe applicable.ThevalueindicationbytheSalesComparisonApproachforthesubjectwasheavily weightedinthefinalreconciliation. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage55 Packet Pg. 115 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL THECOSTAPPROACH TheCostApproachisbasedontheprincipleofsubstitution,thebeliefthatapurchaserwouldnotpay morethanthecostofacquiringasimilarsiteplusthecostofconstructionofareplicaorsimilar structure.TheCostApproachisbasedontheunderstandingthatmarketparticipantsrelatevaluetocost. IntheCostApproachthevalueofapropertyisderivedbyaddingtheestimatedvalueofthelandtothe currentcostofconstructingareproductionorreplacementfortheimprovementsandthensubtracting theamountofdepreciation(i.e.,deteriorationandobsolescence)inthestructuresfromallcauses.Profit forcoordinationbytheentrepreneurisincludedinthevalueindication.Thisapproachisparticularly usefulinvaluingnewornearlynewimprovementsandpropertiesthatarenotfrequentlyexchangedin themarket.CostApproachtechniquescanalsobeemployedtoderiveinformationneededintheSales ComparisonandIncomeCapitalizationApproachestovalue. Thecurrentcoststoconstructtheimprovementscanbeobtainedfromcostestimators,costestimating publications,buildersandcontractors.Depreciationismeasuredthroughmarketresearchandthe applicationofspecificvaluationprocedures.Landvalueisestimatedseparatelyinthecostapproach. Thelandvalueisdeterminedbyanalyzingrecentsalesofvacanttractswithinthesubject'smarketarea. AnappraisermustfollowaseriesofstepsinderivingavalueindicationbytheCostApproach.These stepsareasfollows: Estimatethevalueofthesubjectsite.Thelandvalueestimateisasthoughthelandwasvacant andavailabletobedevelopedtoitsHighestandBestUse.Adjustmentsaremadeifnecessary forfinancing/financingconcessions,time,andforphysicaldifferences,i.e.location,size,and topography,etc. Afteralandvalueisderivedforthesubjectsite,thereproductioncostorreplacementcostofthe improvementsmustbeestimatedasoftheeffectivedateoftheappraisal.Thisestimateincludes direct(hard)costs,aswellasindirect(soft)costs. Othercosts(indirect)whichmustbeincurredafterconstructiontobringthenew,vacant structureuptooccupancylevelsandmarketconditionsmustbeestimated. Arelevantentrepreneurialprofitmustbeestimatedfrommarketanalysisandresearch. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) Atotalreplacementorreproductioncostoftheprimarystructureisestimatedbyadditionofall ofthesecosts(directandindirect). Anestimateoftheamountofaccrueddepreciationinthestructuremustbeconsidered.This depreciationisdividedintothreecategories:physicaldeterioration,functionalobsolescenceand externalobsolescence. AppraisalCompanyofKeyWestPage56 Packet Pg. 116 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Theestimatedaccrueddepreciationmustbedeductedfromthetotalreproductionorreplacement costoftheprimarystructure(s)toderiveanestimateofthedepreciatedreproductionor replacementcost. Then,anestimatedreproductionorreplacementcostforaccessorybuildingsandsite improvementsshouldbeestimatedwithdeductionsmadefordepreciation.Theseimprovements aretypicallyappraisedattheirnetvalue(onadepreciatedcostbasis). Thedepreciatedreproductionorreplacementcostsoftheprimarystructure(s),theaccessory structures,andthesiteimprovementsareaddedtoderivethetotaldepreciatedreproductionor replacementcostofallimprovements. Thesitevalueandtotaldepreciatedreproductionorreplacementcostofallimprovementsare addedtoarriveattheindicatedvalueoftheFeeSimpleInterestintheproperty. TheFeeSimpleValueisadjustedtoreflectthepropertyinterestbeingappraised,ifnecessary, toarriveatanindicatedvalueoftheinterestinthesubjectpropertybeingappraised. 1.LandValuation: AthoroughsearchwasconductedforrecentsalesofcommercialzonedlandintheCityofKey West.Thesubjectpropertyisinanareawhichismostlydevelopedwithmorethan95.0%of thetractsactuallybuilt-upordeveloped.Thesubjectpropertyconsistsofa15,918squarefoot or0.37acresite.Ireportedthemostrecentcomparablesalesavailableforanalysis. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage57 Packet Pg. 117 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) C.3.b Packet Pg. 118 Zoning $9,515$115.63 $13,416$143.99$12,677$137.65$18,000$178.33 AdjustedAdjusted Page58 15,918861.500NANAHNC-1 $828,0004,643461.501$18,000$178.33HRCC-1$647,0005,168681.001$9,515$125.19HNC-1$647,0004,64346 $1,078,6007,63985$1,149,0008,34772$1,552,00010,525142 ValueofAdj.Mkt.LandMain 316&316½SimontonStreet,KeyWest,FL ResumeofComparableKeyWestLandSales MedianMinimum 5.0%Maximum 10/31/16$750,000$002/23/15$540,000$009/23/14$1,145,000($150,000)$1,217,00010,525961.000$12,677$115.63HRCC-102/28/14$880,000$33,870$1,149,0008,347721.501$15,958$137.65HNC-111/07/18Average 1=Corner 515AngelaStreet1100-1104WhiteStreet110&112AnnStreet631WhiteheadSt&409AngelaSt.07/21/14$1,200,000$58,125$1,552,0009,5141421.501$10,930$163.13HRO921TrumanAvenueValuationDate:Corner:0=InteriorAppreciati onRate: 12345 No.Address,KeyWestSaleDateSalesPriceImprov./Demo.Cond.SP(Rnd)Sq.Ft.FrotnageLocationCorner$/FrontFt$/SFLand Sale Subject316-3161/2SimontonStreet AppraisalReport Alandsaleslocationmapandsummariesofthelandsalescanbefoundonthefollowingpages:AppraisalCompanyofKeyWest C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL LANDSALESMAP Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage59 Packet Pg. 119 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL LandSaleNo.1-515AngelaStreet:ThisrecentsaleislocatedintheHRCC-1zoningdistrictlocated betweenDuvalandSimontonStreet.Thissiteispresentlyutilizedasashort-termparkinglotwithan on-sitepay-to-parkmachineormeter.Thehighestandbestuseistoeventuallyredeveloptheproperty. Thesubjectfronts46.5feetalongthenortherlysideofAngelaStreetandextends99.83feetindepth withfrontagealonganaccessroad/easementadjacenttoaCityparkinglot.Thesiteissurroundedby guesthouses,bars,retailstoresandrestaurants.Thiswasanarm’slengthtransaction.Itwasacash transaction.Thissalewasappraisedbymyoffice LandSaleNo.2-1100-1104WhiteStreet:Thislandsalewasascarifiedandlevelsitewiththeprevious improvementsrazedfollowingafireinJune2008.Thispropertyiscomprisedofthreecontiguouslots. Thissitefronts68linearfeetalongthewesterlysideofWhiteStreetand76linearfeetalongthe southerlysideofVirginiaStreet.Thesitecontains5,168squarefeetandwassoldfor$75.46persquare footofsiteareaonFebruary27,2009duringtherecession,buthasresoldonFebruary23,2015for $104.49persquarefoot,whichisabouta39%increaseor6.5%perannum.Thissitehasdevelopment rightstorebuild4,352squareofthepreviousbuildingfootprintwithouthavingtoconformtocurrent setbackrequirements.Iappraisedthiscomparableatthetimeofsale. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage60 Packet Pg. 120 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL LandSaleNo.3110&112AnnStreet:ThisisthesaleoftwocontiguouslotsbehindtheTwoFriends RestaurantandBar(locatedonFrontStreet)withatotal96feetoffrontagealongthewesterlysideon AnnStreetandextending46.5feetindepth.Theinteriorparcelcontains10,525squarefeet.Itfeatures adowntownlocation;however,itlacksfrontagealongasignificantcommercialstreet.AnnStreetis moreofanarrowalleybehindcommercialandmixedusesfrontingonDuvalStreet.112AnnStreetwas improvedwithasmalltwo-storywoodframemixed-usestructurewithtwosmallapartmentsandasmall office.Thegrossbuildingareawas997squarefeetandthestructurewasinoverallaveragecondition. Myofficeappraisedthepropertypriortothesale.Ideductedmyestimateofthecontributoryvalueof thebuildingimprovements(depreciatedcost)inordertoarriveatthelandvalue.Theremainingsitearea wasutilizedforopenparking.110AnnStreetwasvacantandlicensedwiththCityasacommercial parkinglot.Thiswasanarm’slengthtransaction.ThebuyeralsopurchasedtheadjacentRestaurantand Barandutilizesthisparcelforshort-termparking.Thistransactionincludedconventionalfinancing. LandSaleNo.4-631WhiteheadSt/409AngelaStreet:Thisisthesaleofanimprovedproperty consistingofavacant,twostory,CBS/woodframe,mixed-usebuilding,whichhastwocommercial officescontaining2,366squarefootandoneunlicenced,non-transient1,384squarefoot,residential unit.Thebuildingcontainsagrossbuildingareaof3,750squarefeet.AccordingtotheMonroeCounty PropertyAppraiser’srecords,thestructurewasbuiltin1958.Thissalealsoincludestheadjacentvacant lotlocatedat409AngelaStreet,whichconsistsofa10spaceparkinglotwithnoimprovements.The sitelocatedat631WhiteheadStreetconsistsofa7,638squarefootcornerlotwhichfronts67linearfeet alongtheeasterlysideofWhiteheadStreetandextendseasterlyapproximately114linearalongthe northerlysideofAngelaStreet.Thesitelocatedat409AngelaStreetfronts28linearfeetalongthe northerlysideofAngelaStreetandextends67linearfeetindepthandencompassesasiteareaof1,876 squarefeet.Thetwoparcelscontainatotalof9,514squarefeetofsiteareaandwerepurchasedasone Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) economicunit.Thebuyer’splanwastorazetheexistingstructureandconstructalargecommercial parkinglot,whichcouldservenearbyguesthousecomplexesthatsheowns.Asaresult,atthetimeof purchasetheexistingimprovementsdidnotaddanysignificantcontributoryvalue.Thiswasanarm’s lengthsalewithconventionalfinancing.Thispropertywasappraisedbymyofficeatthetimeofsale. Theestimateddemolitioncostswereconsideredinordertoarriveatthelandvalue. AppraisalCompanyofKeyWestPage61 Packet Pg. 121 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL LandSaleNo.5-921TrumanAvenue:Thisproperty,wasformerlytheKyushuJapaneseRestaurant whichwasdestroyedbyfireinJanuary2011.Thesitehas71.75feetoffrontagealongthenortherlyside ofTrumanAvenueand116.33feetalongthewesterlysideofPackerStreet.Thesitecontains8,347 squarefeet.Thebuildinghasnocontributoryvalueasitwillbedemolishedbythenewowner.This sitehasbeenredevelopedandisthenewlocationofSevenFish,apopularnearbyrestaurantwithlimited seating.Thiswasacashsalewithnofinancing. QuantitativeAdjustmentstoComparableSales: Thefivemostrecentandsimilarcomparablesaleswereanalyzedinordertomakecomparisonstothe subjectproperty.Adjustmentsarerequiredforindividualphysicalandlocationalcharacteristicswhich typicallyaffectvalue.Eachcharacteristicisdetailedbelowwithanexplanationofadjustmentswhich Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) weremadetothecomparablesales. PropertyRights: AllofthesalessoldFeeSimple.Asaresult,noadjustmentswerewarranted. AppraisalCompanyofKeyWestPage62 Packet Pg. 122 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Financing: Allofthecomparablesaleswereconsideredcashequivalent,eithercash,conventionalfinancingor PMM(ownerfinancing)atmarketrates.Thus,noneofthecomparablesrequiredadjustmentfor financing. MarketConditions: Iconsideredthismarketsegmenttohavestabilizedin2011withappreciationsince,especiallyin2015 and2016.Ianalyzedthesales/resalesofthecomparablelandsalesovertimetoestimateareliable appreciationrate. Basedonthemarketdata,Iprojectedaconservativeannualappreciationrateof5%. PreviousPreviousAnnualDifference SaleSalesSales2ndPrice/ChangeAppreciationInDates Address,KeyWest No.DatePriceSq.Ft.PriceRateYears 515AngelaStreet 1 06/03/14$550,000$118.46$200,00013.71%2.4 1100-1104WhiteStreet 2 03/02/09$390,000$75.46$150,0005.59%6.0 110&112AnnStreet 3 N/AN/AN/AN/AN/AN/A 631WhiteheadSt&409AngelaSt. 4 N/AN/AN/AN/AN/AN/A 921TrumanAvenue03/01/96$500,000 5 $59.90$380,0003.19%18.0 Subject316-3161/2SimontonStreet Mean7.5%8.8 Median5.6%6.0 Minimum3.2%2.4 Maximum13.7%18.0 ConditionsofSale: Allofthecomparableswerearm’slengthtransactions;thusnoadjustmentsforconditionofsalewas warrantedherein. LandSize: Theunitofmeasureispricepersquarefoot.Typically,thelargerthesite,thelowerthepricepersquare foot(diminishingreturns),whichissupportedbymarketdata.Eachcomparablewasnegatively adjustedduetothesmallersitearea. MainStreetFrontage:Comparables1,2,4,and5aresimilartothesubjectinthisaspect.Sale3is Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) inferiorinthisaspectandispositivelyadjusted. Corner:Thereappearstobeaslightpremiumforcornerlotsascomparedtoaninteriorlot.Thesubject isaninteriorsite.Sales1,2,4and5werenegativelyadjusted,astheyaresuperiorcornersites.Sale3 issimilar. AppraisalCompanyofKeyWestPage63 Packet Pg. 123 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL OverallLocation: Locationadjustmentsweremadeforsuperiororinferiorneighborhoodsbasedonpairedsalesbetween thecomparables.ThesubjectislocatedinOldTownKeyWestwithintheSimontonStreetcorridor.All thesalesaresimilartothesubjectinlocation;thusnoadjustmentsweremade. NROGO:Thesubjecthasredevelopmentrightsorentitlementsforreplacementofcommercialfloorarea orNROGO.AllofthesubjectcomparableshavecommercialfloorareaorROGOentitlements;thus, theywereconsideredsimilar. Zoning:ThesubjectiszonedHNC-1HistoricNeighborhoodCommercialDistrict,comparables2and 5arelocatedinthesamezoningdistrict.Sales1and3locatedinsuperiorzoningdistricts;thus,they werenegativelyadjustedherein.Sale4islocatedinaninferiorHROdistrict,whichonlyallows residentialandofficeuse.Asaresult,thissalewaspositivelyadjusted. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage64 Packet Pg. 124 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) C.3.b Packet Pg. 125 100% $116.04 ======= Yes -5% 8,347 Sale5 -10%-15% 25.0% SimilarSimilar$29.25 HNC-1 $137.65 02/28/14-$20.65 $137.65$117.00 Arm'sLgth/NoCons. ===== Yes -5%-5% 9,514HRO10% Sale4-10%-10% 15.0% SimilarSimilar$22.02 $163.13 07/21/14-$16.31 $163.13$146.82 $1,552,000$1,149,000 KeyWestKeyWestFeeSimpleFeeSimple Page65 Arm'sLgth/Adj.Owner ===== No 5% -5%-5%-5% Sale3 -10% 10,52525.0%$26.02 Similar ROGOROGO/NROGONROGO $115.63 -$11.56 09/23/14 HRCC-1$115.63$104.07 $1,217,000 KeyWestFeeSimple No,Inferior ======= Yes -5% 5,168 Sale2-15%-20% 20.0% SimilarSimilar$20.03 HNC-1 $125.19 02/23/15-$25.04 $647,000$125.19$100.15 ConventionalConventionalConventionalConventional Adjustments 316&316½SimontonStreet,KeyWest,FL ===== Yes -5%-5%-5% Cash 4,643 Sale1-15%-30% 15.0% SimilarSimilar $18.72 $178.33 10/31/16-$53.50 $828,000 $178.33$124.83 HRCC-1 FeeSimpleFeeSimple AppreciationAppreciationAppreciationAppreciationAppreciation BPAS(ROGO)NROGO Adj.SPConsidersAdj.SPConsidersAdj.SPConsidersAdj.SPConsidersAdj.SPConsiders Arm'sLgth/NoCons.Arm'sLgth/NoCons.Arm'sLgth/NoCons. NoNo N/AN/AN/AYesN/AYesYes 15,91815,918 HNC-1 SubjectHNC-1 SubjectPropertyAdjustmentGridfortheSubjectPropertyValue NROGO OldTown OldTown KeyWestKeyWestKeyWest 316SimontonSt.515AngelaSt.1100-1104WhiteSt.110&112AnnSt.409AngelaSt.921TrumanAve. Subject/Comparable:Address:Key:AdjustedSalesPriceAdjustedSalesPrice/SFSalesDatePropertyRightsFinancingConditionsofSaleMarketConditionsUplandAreaSquareFeetMainStreetFrontageCorner/AccessOverallLocatio nROGO/NROGOEntitlementsZoningAdjustedSalesPrice/AcrePropertyRightsFinancingConditionsofSaleMarketConditionsSiteSizeinSquareFeetMainStreetFrontageCorner/AccessOverallLocationROGO/NROGOEntitlementsZoni ngIndicatedOverallAdjustments%IndicatedOverallAdjustments$IndicatedOverallAdj.Value/SFWeight AppraisalReport Thequantitativelandadjustmentgridfollows.AppraisalCompanyofKeyWest C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL ValuefortheSubjectParcelConclusion: Inordertoestimatethevalueofthesubjectproperty,Ianalyzedrecentsalesofcomparablecommercial land.Ontheprecedingtables,adetailedadjustmentgridispresentedforthesubjectparcel.The comparablesindicateanadjustedvaluepersquarefootfrom$100.15to$146.82persquarefootwith ameanat$118.57andamedianat$117.00. Basedonanalysisandadjustmentstotheindividualcomparables,Sales3and5wereweightedthe heaviestastheyaremoresimilarinsize,location,andfrontage;thus,requiringtheleasegross adjustments.Theweightedaverageofthecomparablesequaled$116.00(rounded)persquarefoot.The valuecalculationsarenotedasfollows. $/SFMultipliedBySiteSizeinSFEqualsLandValue $116.0015,918=$1,846,488 X Roundedto:$1,850,000 LessDemolition:$0 EqualsLandValue:$1,850,000 ValueoftheSubjectPropertySite viatheSalesComparisonApproachasofNovember7,2018(Rounded)Is:........$1,850,000 EstimateofReplacementCostsNewfortheSubjectStructure: Theexistinglandandbuildingimprovementsweredescribedearlierinthisreport,thereplacementcost ofimprovementshasbeenestimatedusingtheMarshall&Swift/Boeckh,LLCserviceandmy knowledgeofactuallocalcoststoconstructinthearea.Thesecostsarecontinuouslyupdatedand adjustedforlocaldifferences. TheMarshall&Swift/Boeckhcostestimatesincludelabor,materialsandsalestax,averagearchitect andengineer'sfees,jobsupervisionandinsurance,andcontractor'soverheadandprofit.Thecost estimatesdonotinclude:costsofbuying/assemblingtheland(i.e.,escrowfees,legalfees,demolition, stormdrainsorroughgrading),costsoflandplanningorpreliminaryconceptandlayoutforalarge development,discountsorbonusesforfinancing,developer'soverheadandprofit,andinterestortaxes onland. Thesubjectproperty'sreplacementcostestimateutilizingtheMarshall&Swift/Boeckh,LLCmaybe Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) foundonthefollowingpages.Thiscostestimatingsoftwareandmanualsarecontinuouslyandadjusted forlocalconditions.Thereplacementcostnewforthesubjectbuildingshavebeenconsideredherein. AppraisalCompanyofKeyWestPage66 Packet Pg. 126 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Note:TheappraiserisnotanexpertinthefieldofFireResistivematerialsandhaverelieduponthe definitionsofClassISO2and6bytheInsuranceConstructionClassifications,InsuranceUnderwriters andtheInsuranceServicesOffice(ISO). Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage67 Packet Pg. 127 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage68 Packet Pg. 128 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage69 Packet Pg. 129 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage70 Packet Pg. 130 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage71 Packet Pg. 131 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage72 Packet Pg. 132 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage73 Packet Pg. 133 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage74 Packet Pg. 134 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage75 Packet Pg. 135 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Inestimatingthequalityofthevariousstructures,IutilizedtheBVSqualitysystemwhichrangesfrom 2.0Averageto2.6Superior.TheBVSorsystemgeneratedworksheetsystemdoesnothaveanGood orVeryGoodrankingforconstructionqualitygrades.Thesubjectpropertyconsistsofmostlybrickor CBS/masonrybuildingswithconcreteslabatgradeandconcretefooters.Mostofthestructuresare minimallybuilt-out.IhaveappliedaConstructionQualityof2.0forBuildingAandBuildingC.I appliedaConstructionQualityof1.7forBuildingB.Theappraisermustutilizehis/herjudgementand experienceinrankingthequalityofconstructionofthesubjectstructureswithintheFloridaKeys. Further,theseareReplacementCostNewestimates,notReproductionCosts,whichmustmeetlocal BuildingCodesandcurrentrequirements. IincludedtheMarshall&SwiftResortAreaMultiplier.The"Resort"multiplierhasbeenusedinthe FloridaKeysformanyyearsasamethodtoadjustforthedifficultytoobtainskilled,constructionlabor andaccesstomaterials.Marshall&Swift,Section99,Page1,statesthatSpecialLocalconditions requirecertainLocalMultipliersandadjustmentsforResortLocations,ie:"requirehigherfreight chargesonmaterials,noncompetitiveconditionsforlaborormaterials,disproportionatecrewingor laborperdiemcharges.Examplesareisland,mountain,desertorresortlocations..."Thesubject property’sResortmultiplierhasbeencomparedagainstactualconstructioncostsonanongoingbasis. Ifeelthe1.3resort1.1laborshortageanda1.1abovenormalcontractorprofitmultiplier,isa reasonablemeasureforthesubject'sKeyWestlocation(SouthernmostintheContinentalU.S.atthis time),especiallysubsequenttoHurricaneIrma,whichmadelandfallintheLowerFloridaKeyson September10,2017.DamagewasincurredthroughouttheKeys(theheaviestintheLowertoMiddle Keys). Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage76 Packet Pg. 136 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL ThefollowingCostApproachfortheoverallpropertyisasfollows. EstimatedCostApproach Quantity/EffectiveTotalReplacementDepreciated DetailedCostEstimateSizeUnitCostAgeLifeDepreciationCostNewValue CostNewforBuilding"A":5,633$133.27355070.0%$750,720$225,216 CostNewforBuilding"B":850$177.52405080.0%$150,889$30,178 CostNewforBuilding"C":1,639$140.31305060.0%$229,970$91,988 TotalCostNewforBuildingImprovements:$1,131,579$347,382 ReplacementCostNewBuildingImprovements(Rounded):$1,132,000 Plus:SiteImprovements&Extras: AsphaltPaving4,000$4.00152075.0%$16,000$4,000 TotalSiteImprovements:$16,000$4,000 TotalCostNewofBuildingandSiteImprovements:$1,147,579$351,382 PlusEstimatedLandValue:$1,850,000 ReplacementCostNewforBuildingandSiteImprovements(Rnd):$1,148,000 DepreciatedValueAsIndicatedbytheCostApproach(Rounded):$2,200,000 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage77 Packet Pg. 137 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL EntrepreneurialIncentive:EntrepreneurialIncentiveisamarket-derivedfigurethatreflectstheamount anentrepreneurexpectstoreceiveforhisorhercontribution.Thisamountisinadditiontothecosts oftheproject.Thereareacoupleofmethodswhichcanbeutilizedinordertoestimateamarket entrepreneurialprofitrate.Recentlyconstructedpropertiesinthemarketareacouldbeanalyzedby estimatingthedifferencebetweentheirsalespriceandthetotalcosts(directandindirect)plusland value.Thismethodofestimatingentrepreneurialincentivewasnotavailable,duetothelackof comparables. Sincethesubjectwasdevelopedsolongagoandwillbeutilizedbyaownerusergovernmententity, entrepreneurialincentivewasnotapplicableinthecaseathand. Thesubjectbuildingsareolderranginginagefrom60to128yearsold.Depreciationcanbecategorized intothefollowinggroups: a.Physicaldeterioration.Thisisanelementofaccrueddepreciation,whichcanbecurableor incurable.Curablephysicaldeteriorationisacurabledefectcausedbydeferredmaintenance. Incurablephysicaldeteriorationisanincurabledefectcausedbyphysicaldeteriorationthatis impracticaloruneconomictocorrect. b.Functionalobsolescence.Thisisalossinvaluecausedbyfactorsinherentwithinabuildingor buildingequipmentunit.Factorsincludechangesinconstructionmaterialsandtechniques, whichresultinexcesscapitalcostsinexistingfacilities;lackoffulluseofspace;andan inabilitytoexpandorupdatetheproperty. c.Economicobsolescence.Thisiscausedbyexternalfactorssuchasgeneraleconomicconditions, availabilityoffinancing,ordisharmoniouspropertyuses. Thephysicaldepreciationwascalculatedbyestimatingtheeffectiveageforthebuildingandsite improvements.Therewerenofurniture,fixtures,andequipment.Theeffectiveagesaredividedbythe estimatedtotaleconomiclifeforeachitem,resultinginthedepreciationrateforitem.Thedepreciation ratesandamountsareindicatedontheCostApproachchartonthepriorpage. IndicatedValueofFeeSimpleEstateViatheCostApproach asofNovember7,2018(rounded):...........................................$2,200,000 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage78 Packet Pg. 138 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL THESALESCOMPARISONAPPROACH Thisapproachtovalueisbasedupontheprincipalofsubstitution;thatis,whenapropertyisplacedin themarket,itsvaluetendstobesetatthecostofacquiringanequallydesirablesubstituteproperty, assumingnocostlydelaysinmakingthesubstitution.TheSalesComparisonApproachbasesitsvalue indicationonsalesofothersimilarpropertiesinthearea.Thesesalesareanalyzedandcomparedtothe subjectproperty.TheSalesComparisonApproachbasesitsvalueindicationonrecentsalesthatare pertinenttothevalueofthesubjectproperty.Fromthesecomparablesales,theappraisermustextract meaningful"commondenominators"tobeappliedtothesubjectbuilding.Typically,thesalepriceper squarefootofgrossbuildingarea,persquarefootoflandareaandtheoverallsalepricearethemost commondenominatorsusedinestimatingthevalueofthepropertiessimilartothesubject.Adjustments aremadetotheindicatedsalespricefordifferencesbetweenthesaleandthesubject,whenpossible. Themoresimilarthesaleistothesubjectproperty,thefewerrequiredadjustments,andthebetterit servesasanindicatorofvalue. MarketData: Athoroughsearchwasconductedforrecentsaleoflargercommercialpropertiesinthedowntown marketarea.Asurveyofthemarketarearesultedinfivesalesofpropertiesinthedowntownmarket andtheyallrequiredsignificantbuildoutorsubstantialconversion.Thesesaleswereconsidereda reliablerepresentationwithinthesubject’smarketareaandlocatedwithinthedowntowncorridor shoppingandentertainmentdistrict,withinproximitytothesubjectproperty. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage79 Packet Pg. 139 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) C.3.b Packet Pg. 140 Est. OAREGIM $220.21$104.627.5%10.0$289.77$412.258.8%12.1 $263.67$256.268.2%11.1$278.36$299.908.3%11.1 AdjustedAdjusted Page80 316&316½SimontonStreet,KeyWest,FL Adjusted Minimum$1,750,0004,8887,185Maximum$3,450,00032,97712,027 N/AN/AN/A15,9188,1220.001.000.51N/AN/AN/AN/A 0.00%Median$2,350,0007,8368,455 06/19/18$1,750,000$1,750,0004,8887,9470.001.001.63$220.21$358.028.3%10.007/28/16$2,350,000$2,350,0007,8369,6651.001.001.23$243.15$299.90N/AN/A12/31/15$2,450,000$2,450,0005,9438,4550.501.001.42$289.77 $412.25N/AN/A04/07/15$3,450,000$3,450,00032,97712,0271.001.000.36$286.85$104.628.8%N/A08/06/14$2,000,000$2,000,00018,7807,1850.001.000.38$278.36$106.507.5%12.111/07/18Average$2,400,00014,0859,056 SaleDateSalesPriceSalesPriceLandSFGBASFCondLoc.FAR$/SFGBA$/SFLand DowntownCommercial"OldTown",KeyWestLargeComparableSales Address 417SouthardStreet524FrontStreet520FrontStreet801EisenhowerDrive725CarolineStreetValuationDate:AppreciationRate* Iutilizedthefivemostrecent,largestcomparablesalesintheadjustmentgrid.Myofficehasappraisedalloftheabovecomparablesalesutilizedatthetimeofsale 12345 No. Sale Subj.316&3161/2SimontonStreet Location0=LowerRentalDistricts1=MidDuvalSt.orMediumRentDistrict2=DuvalSt.HighRentDistrictCondition:0=Average,1=Good,2=V.Good,3=Excellent AppraisalReport Thefollowingchartsummarizedrelevantunitsofmeasureofthecomparablesalesfollowedbyabriefdescriptionofeachofthecomparablesales.Note:orprior.AppraisalCompanyofKeyWest C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL SalesComparisonMap Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage81 Packet Pg. 141 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL IMPROVEDSALENO.1 PROPERTYTYPE:ZONING:HRCC-1:HistoricResidentialComm'lCore Shop/Retail/ResidentialMixed-Use HRO:HistoricResidential/Office PARCELNUMBER:ALTERNATEKEY#: 00010040-0000001010324 PROPERTYLOCATION:MileMarker: 417SouthardStreet,101,KeyWest,Florida330401.0 LEGALDESCRIPTION: KWPartofLots1and4.Square51,MonroeCounty SALEDATE:DAYSONMARKET: 6/19/201891 SALESPRICE:LISTINGPRICE:RATIO: $1,750,000$1,995,00087.7% GRANTOR: TapleyO.Johnson,III GRANTEE: 417SouthardStreet.LLC DOCUMENTTYPE:OFFICIALRECORDBOOK/PAGE:2912/1800 WarrantyDeed CONDITIONOFSALE:VERIFICATION: Arm'sLengthMLS,PublicRecords,ListingAgent,PriorAppraisal FINANCING:SPECIALTERMS: PMM(OwnerFinancing)MarketRate&Terms YEAR:ASSESSMENT:TAXBURDEN: 2018$1,684,103$15,316.49 SITEAREASQ.FT.:ACRES:DOLLAR/SQ.FT.: 4,8880.11$358.02 GROSSBUILDINGAREASQ.FT.:DOLLAR/SQ.FT.: 7,947$220.21 COMMENTS: Thetwo-storyCBS/masonrystructureconsistsofa4,539squarefootcommercialspacedownstairs,formerretail,office,storage, andmechanicserviceshop.ACityofKeyWestvariancewasgrantedforanadditional975squarefootconvertedcarport-scooter rentalarea.Therefore,thefirstfloorcontainsatotalof5,514squarefeetofgrossbuildingarea.Thesecondlevelconsistsofa513 squarefootfinishedhalf-story,officeunitoverthescooterrentalspaceplusa1,920squarefootresidentialareaovertheretailarea thatisdividedintotwo,largeapartments.Theoverallgrossbuildingareais7,947squarefeet.Thebuildingwasbuiltcirca1928, accordingtotheMonroeCountyProperty'sAppraiser'srecords.Thispropertywasappraisedbymyofficeinthepast.The propertywasvacantatthetimeofsale.Thispropertyneedstotalbuild-out. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage82 Packet Pg. 142 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL IMPROVEDSALENO.2 PROPERTYTYPE:ZONING:HRCC-1:HistoricResidentialComm'lCore RetailUse PARCELNUMBER:ALTERNATEKEY#: 00000330-0000001000329 PROPERTYLOCATION:MileMarker: 524FrontStreet,KeyWest,Florida330401.00 LEGALDESCRIPTION: KWPtLot2and3Sqr6,MonroeCounty SALEDATE:DAYSONMARKET: 7/28/2016N/A SALESPRICE:LISTINGPRICE:RATIO: $2,350,000N/AN/A GRANTOR: SunsetVenturesLLC GRANTEE: 524Front,LLC DOCUMENTTYPE:OFFICIALRECORDBOOK/PAGE:ORBk2808,Page651 WarrantyDeed CONDITIONOFSALE:VERIFICATION: Arm'sLengthPublicRecords,Agent,Appraisal FINANCING:SPECIALTERMS: ConventionalMarketRate YEAR:ASSESSMENT:TAXBURDEN: 2018$2,422,500$21,827.22 SITEAREASQ.FT.:ACRES:DOLLAR/SQ.FT.: 7,8360.18$299.90 GROSSBUILDINGAREASQ.FT.:DOLLAR/SQ.FT.: 9,665$243.15 COMMENTS: ThispropertywascommonlyknownastheformerPirateSoulMuseumlocatedat524FrontStreet,KeyWest,FL33050.The propertyconsistsofatwo-story,CBS/masonry,L-shapedbuildingcontainingalargeretailunitareaonthefirstfloorandalarge office,plustwonon-transientresidentialapartmentsonthesecondlevel.Thestructurecontainsagrossbuildingareaof9,665 squarefeetandagrossrentableareaof8,852squarefeet.AccordingtotheMonroeCountyPropertyAppraiser’srecords,the buildingwasbuiltin1977.ThemeasurementswerereferencedfrombuildingplanspreparedbyMichaelB.IngramArchitectand Associates,datedApril23,2004,plusasurveyperformedbyIslandSurveying,Inc.,datedNovember4,2003.Thesiteconsistsof aslightlyirregular-shaped,interiorparcelwithapproximately80.0feetoffrontagealongthesoutherlysideofFrontStreetand extendsapproximately100.0feetsoutherlyindepth.Thesitecontains7,836squarefeet,accordingtothepreviouslymentioned survey.Thispropertywasappraisedbymyofficeinthepast.Thefirstlevelrequiresbuild-out. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage83 Packet Pg. 143 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL IMPROVEDSALENO.3 PROPERTYTYPE:ZONING: RetailUse(ConvertedtoOffice)HRCC-1 PARCELNUMBER:ALTERNATEKEY#: 00000340-0000001000337 PROPERTYLOCATION: 520FrontStreet,KeyWest,Florida LEGALDESCRIPTION: KWPTLot3Sqr6 SALEDATE:DAYSONMARKET: 12/31/20157 SALESPRICE:LISTINGPRICE:RATIO: $2,450,000$2,450,000100.0% GRANTOR: KeysIslandPropertiesLLC GRANTEE: HVOKeyWestHoldingsLLC DOCUMENTTYPE:OFFICIALRECORDBOOK/PAGE: WarrantyDeed2776/1789 CONDITIONOFSALE:VERIFICATION: Arm'sLengthPublicRecords,Agent,Appraisalby JW FINANCING:SPECIALTERMS: CashN/A YEAR:ASSESSMENT:TAXBURDEN: 2018$2,197,730$29,994 SITEAREASQ.FT.:ACRES:DOLLAR/SQ.FT.: 5,9430.14$412.25 DOLLAR/SQ.FT.: $289.77 GROSSBUILDINGAREASQ.FT.: 8,455 COMMENTS: Thisisthesaleofalargesingletenantcommercialbuilding.ThebuildingislocatedonthecornerofFront Street,one-halfblockfromDuvalStreet.Thiscomparableissituatedona5,943squarefootsite. AccordingtotheMonroeCountyPropertyAppraiser’srecordsitwasconstructedin1948.This CBS/masonrybuildingconsistsof8,455squarefeetofgrossbuildingareaaccordingtothelistingagent. Thiswasanarm’slengthtransactionandaREO,bank-ownedsale.Ourofficehasappraisedthis propertyinthepast.Thisbuildingrequiredsubstantialbuild-outandwasconvertedtosalesofficeuse. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage84 Packet Pg. 144 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL IMPROVEDSALENO.4 PROPERTYTYPE:ZONING:CG,CommercialGeneral OfficeUse(Conversion) PARCELNUMBER:ALTERNATEKEY#: 00023190-0000001023965 PROPERTYLOCATION:MileMarker: 801EisenhowerDr.,KeyWest,FL330401.7 LEGALDESCRIPTION: Lot7-8ofTract7G55-357(Deed19839),KWBenJ.Albury'sSudbPB1-3 SALEDATE:DAYSONMARKET: 4/7/2015527 SALESPRICE:LISTINGPRICE:RATIO: $3,450,000N/AN/A GRANTOR: StrombusCorporation GRANTEE: OldTownTrolleyToursofWashington,Inc. 2734/20 DOCUMENTTYPE:OFFICIALRECORDBOOK/PAGE: WarrantyDeed CONDITIONOFSALE:VERIFICATION: Arm'sLengthPublicRecords,Broker,Buyer,Appraisal FINANCING:SPECIALTERMS: ConventionalMarketRate YEAR:ASSESSMENT:TAXBURDEN: 2018$3,362,006$30,292.34 SITEAREASQ.FT.:ACRES:DOLLAR/SQ.FT.: 32,9770.76$106.50 GROSSBUILDINGAREASQ.FT.:DOLLAR/SQ.FT.: 12,027$278.36 COMMENTS: Thispropertyconsistsofanofficeusepropertyimprovedwithatwo-story,combinationofCBS/masonryandWoodFrame structure.The12,027squarefootstructureislocatedonawaterfrontsitecontaining32,977squarefeetofarea.Thisoffice complexofferswaterfrontviewoftheharbor,balcony,openatriumandoffstreetparking.Thepropertyisinoverallaboveaverage condition.TheoriginalCBS/masonryportionofthebuildingwasconstructedin1958.Thestructurewascompletelyrenovatedwith additionalofficespacein1995.Thissalewasanarm’slengthtransactionwithconventionalfinancing.Thispropertydidhavealong- termandashort-termleaseinplaceatthetimeofsale.Theappraiserdidaninspectionanddetailedanalysisatthetimeofsale. Thebuyerpurchasedthepropertyforconversionofuseandthepropertywillbetotallyrenovatedandexpanded. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage85 Packet Pg. 145 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL IMPROVEDSALENO.5 PROPERTYTYPE:ZONING:CG,CommercialGeneral RetailUse(Conversion) PARCELNUMBER:ALTERNATEKEY#: 0000770-0000001000787 PROPERTYLOCATION:MileMarker: 725CarolineStreet,KeyWest,FL330401.0 LEGALDESCRIPTION: KWPartLot1,Square11 SALEDATE:DAYSONMARKET: 8/6/2014523 SALESPRICE:LISTINGPRICE:RATIO: $2,000,000$2,600,00076.9% GRANTOR: GalettaPropertyGroup,LLC GRANTEE: AmericanFederateTitleCorp.,asTrusteeunderLandTrustNumber725KW DOCUMENTTYPE:OFFICIALRECORDBOOK/PAGE:2697/1805 WarrantyDeed CONDITIONOFSALE:VERIFICATION: Arm'sLengthPublicRecords,MLS,Broker,PastAppraisal FINANCING:SPECIALTERMS: ConventionalMarketRate YEAR:ASSESSMENT:TAXBURDEN: 2018$1,857,667$16,737.94 SITEAREASQ.FT.:ACRES:DOLLAR/SQ.FT.: 18,7800.43$106.50 GROSSBUILDINGAREASQ.FT.:DOLLAR/SQ.FT.: 7,185$278.36 COMMENTS: Thisisthesaleofone-storymetalfreespanstructurecommercialretail/warehousestructuresituatedonacornersite.The structurewasoccupiedbyWestMarine,whomovedtoanewlyconstructedbuilding.Thebuildingwasvacantatthetimeofsale andcontains7,185squarefeetofgrossbuildingarea.Thestructureissituatedonalarge18,780squarefootsitewithapproximately 156feetalongthenortherlysideofCarolineandabout120feetalongWilliamStreets,adjacenttotheKeyWestSeaport.This propertywasappraisedbymyofficeinthepastandwaslargelyunfinished.Thebuyerconvertedthepropertyintoamulti-bay building.Thetenantbuilt-outalargegym,theremainingcornerspaceisbeingmarketedtowardsapotentialrestauranttenant, althoughitisnotpresentlybuilt-out.Thiscomparablewaspurchasedforconversionandrequiredtotalbuildout. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage86 Packet Pg. 146 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) C.3.b Packet Pg. 147 ===== -5%-5% 7,185 10% Sale5 -10%-10% 18,780 25.0% SimilarStable$62.63 $278.36$106.50 08/06/14 -$27.84 $278.36$250.52 $2,000,000 KeyWestFeeSimple Conventional ==== 5% 15% 55% Sale4 -35%-15%-15% 12,02732,97710.0% SimilarStable$24.38 $286.85$104.62 04/07/15-$43.03 $286.85$243.82 $3,450,000 KeyWest LeasedFee Conventional Page87 === == 8,4555,94320% 10%10%30% -10% 20.0% Sale3 SimilarStable$63.75 $28.98 $289.77$412.25 12/31/15 $289.77$318.75 $2,450,000 KeyWestFeeSimple ==== 5% 9,6657,83615%10%10%30% Sale2-10% 20.0% SimilarStable$53.49 $24.31 $243.15$299.90 07/28/16 $243.15$267.46 $2,350,000 KeyWestFeeSimple Adjustments 316&316½SimontonStreet,KeyWest,FL ====== 7,9474,88820% 20%20%20% Sale1 25.0% Similar Stable$66.06 $44.04 $220.21$358.02 06/19/18 $220.21$264.25 OldTownSuperiorOldTownSuperiorOldTownMidTownS'lyInferiorKWSeaportSimilar $1,750,000 KeyWestFeeSimple Inc.inAdjust.SPInc.inAdjust.SPInc.inAdjust.SPInc.inAdjust.SPInc.inAdjust.SP Arm'sLength/NoConc.Arm'sLength/NoConc.Arm'sLength/NoConc.Arm'sLength/NoConc.Arm'sLength/NoConc. PMM(OwnerFinancing)ConventionalConventional N/AN/AN/AN/A N/A 8,1228,122 SubjectPropertyAdjustmentGridUtilizingImprovedComparableSales 15,91815,918 Subject AverageAverage OldTownOldTown KeyWestFeeSimple : 316SimontonSt.417SouthardStreet524FrontStreet520FrontStreet801EisenhowerDrive725CarolineStreet Subject/Comparable:Address:Key:AdjustedSalesPriceAdjustedSalesPrice/SFofGBAAdjustedSalesPrice/SFofSiteSalesDatePropertyRightsUplandSiteArea(SquareFeet)OverallLocationCondition/QualityofConstructionGr ossBuildingArea(SquareFeet)UplandSiteArea(SquareFeet)OverallLocation FinancingConditionsofSaleMarketConditionsGrossBuildingArea(SquareFeet)AdjustedSalesPrice/SFofGBAPropertyRightsFinancingConditionsofSaleMarketConditionsCondition/QualityofConstructionIndicatedOverallN etAdjustments%IndicatedOverallAdjustments$IndicatedOverallAdj.Value/SFNetAdj.as%ofSPGrossAdj.as%ofSPWeight AppraisalReport AdjustmentValueSalesGridThefollowinggridwasutilizedfortheSalesComparisonApproach:AppraisalCompanyofKeyWest C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL UnitsofMeasure:Typically,thesetypesofcommercialusepropertiesareanalyzedviathesalesprice persquarefootofgrossbuildingareaorpricepersquarefootofsitearea.Inthecaseathand,theprice persquarefootofgrossbuildingareaisamorereliableunitofmeasure. PropertyRights:Sales1,2,3and5allsoldwithnoleasesinplaceencumberingtheproperties,SaleNo. 4didhavealong-termleaseinplace;however,itwasconsideredtobeatmarketrentalratesandterms. Asaresult,noadjustmentwasnecessary. Financing:Allofthecomparablesaleswereconsideredcashequivalent,eithercashorconventional financingatmarketrates.Thus,noneofthecomparablesrequiredadjustmentforfinancingorcondition ofsale. ConditionsofSale:Alloftheothersaleswerearm’slengthtransactions;thus,noadjustmentswere warrantedatthistime. MarketConditions:Marketresearchindicatesthatmarketconditionswereappreciatingupuntiltheend of2006whenthemarketpeaked;thereafter,themarketbegantodeclinetilltheendof2011whenthe marketbegantostabilize.Marketresearchindicatesthatmarketconditionsstabilizedtowardtheend of2011withsomeappreciationnotedthereafter.However,theselargecomparablesalesthatrequire substantialbuildoutsandconversionsindicatebasicallynogrowth.Ananalysisofthesecomparable salesandtheirpriorsaleinformationindicatedtherehasbeena-2.3%toa2.7%annualappreciation. Asaresult,noadjustmentformarketcondition(“time”)adjustmentwasmade. PreviousPreviousAnnualDifference SaleSalesSales2ndPrice/ChangeAppreciationInDates Address,KeyWest No.DatePriceSq.Ft.PriceRateYears 417SouthardStreet 1 05/08/12$2,015,000$253.55-$265,000-2.3%6.1 524FrontStreet 2 01/02/04$3,000,000$310.40-$650,000-1.9%12.6 520FrontStreet 3 05/23/02$1,700,000$201.06$750,0002.7%13.6 801EisenhowerDrive 4 08/11/00$2,500,000$207.87$950,0002.2%14.7 725CarolineStreet 5 N/AN/AN/AN/AN/AN/A Subj.316&3161/2SimontonStreet Mean0.2%11.7 Median0.1%13.1 Minimum-2.3%6.1 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) Maximum2.7%14.7 AppraisalCompanyofKeyWestPage88 Packet Pg. 148 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL GrossBuildingArea:Typically,thesmallerthegrossbuildingarea,thehigherthepricepersquarefoot ofGBA,grossbuildingarea.Buildingsizeandpricepersquarefootareinverselyrelated.Asaresult, thesmallercomparablearenegativelyadjusted,whilethelargercomparablearepositivelyadjusted,and viceversa. UplandLandSize:Marketdataindicatesthatthelargerthesitearea,thenthepricepersquarefootof grossbuildingareaincreasesresultinginandirectrelationship.Therefore,thesmallersitesrequirea positiveadjustment.Therefore,Sales1,2and3requiredapositiveadjustmentandviceversa. OverallLocation:Thesubjectpropertyislocatedwithinthedowntown,OldTownareaofKeyWest. SaleNos.1and5wereconsideredsimilar.Sales2and3arejusteasterlyofDuvalStreet,themain shopping,entertainment,anddiningdistrict;thus,theywerenegativelyadjusted.SaleNo.4was consideredtobeinferiorasitislocatedinMidtown. Condition/QualityofConstruction:Thesubjectpropertyisconsideredtobeaveragecondition.The Saleswereconsideredoverallsimilartothesubjectproperty,astheyallrequiredsignificantbuildout ortotalconversion. ValueConclusion: Eachofthecomparablesaleswasanalyzedandresearchedwithcomparableunitsofmeasure considered.WeanalyzedtheSalesComparisonApproachutilizingaSalesAdjustmentGrid.The appraisershaveutilizedpriceperunitasthemostreasonableunitofmeasure.Afteradjustments,the salesrangedfrom$243.82to$318.75persquarefootofgrossbuildingarea.Themeanandmedianof thesalesonapricepersquarefootbasiswas$268.96and$264.25.Aftertakingintoconsiderationthe weightingofthecomparables,thepricepersquarefootofgrossbuildingareautilizedwas$270.00for thesubjectproperty. Asaresult,IhaveconcludedthevaluebelowviatheSalesComparisonApproachforthesubjectprop- erty. $/SFMultipliedByGBAinSFEqualsMarketValue(Rnd) $270.008,122=$2,190,000 X Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage89 Packet Pg. 149 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL SubjectGrossBuildingArea:8,122ValuePerValuePer SubjectSiteSize(SF):15,918SFofGBASFofLand "AsIs"ValueviatheSalesComparisonApproach:$2,190,000 "AsIs"ValueviatheSalesComparisonApproach(Rnd):$2,190,000$269.64$137.58 “AsIs”ValueoftheFeeSimpleInterestAsIndicatedby TheSalesComparisonApproach,asofNovember7,2018(Rounded)............$2,190,000 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage90 Packet Pg. 150 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL RECONCILIATIONANDFINALESTIMATEOFVALUE ThefollowingFeeSimplevalueindicationshavebeendevelopedinmyanalysisoftheMarketData. ReconciliationofValues 316&3161/2SimontonStreet,KeyWest,Florida KeyWest,MonroeCounty,Florida33040 FeeSimpleInterest ValuationMethod:MarketValue CostApproach:$2,200,000 IncomeApproach:NotApplicable SalesComparisonApproach:$2,190,000 "AsIs"MarketValueoftheFeeSimpleInterest, asofNovember7,2018(Rounded):$2,190,000 Thegreatestweightisgiventothatapproachinwhichtheappraiserhasthehighestdegreeof confidence.Thisimpliesaminimumofassumptionsandasufficientquantityofdata.Basedon analysisoftherealestatemarketactivityinthesubjectpropertymarketarea,andafterconsideringthe applicabilityandreliabilityofeachofthevalueindicationsderivedbytheCostandSalesComparison Approach,itistheappraisers'opinionthattheMarketValueofthesubjectpropertyismostaccurately indicatedbytheSalesApproach.Iresearchedandanalyzedsalesoflargecommercialpropertiesthat requiredsubstantialbuildoutorconversiontoanotherusebythebuyer.Asaresult,thesesalesare towardsthelower-endofthespectrumonapricepersquarefootofgrossbuildingarea.Accordingly, theheaviestweighthasbeenplacedontheSalesComparisonApproachduetotheincomeproducing potentialofthesubjectproperty.ThevalueindicationviatheCostApproachwasmoderatelyweighted asitwasconsideredreasonableduetothelandvaluebeingamajorportionoftheoverallvalue.The subjectbuildingsareolderwithsignificantdeprecationandmostlylacksignificantbuildout.Asaresult, theoverallCostApproachismorereliableduetotheavailabilityofrecentlandsales.TheIncome Approachisnotconsideredapplicableasmostofthestructuresareunfinishedandtheyarerentedbelow market.Furthermore,abuyerwouldlikelypurchasethesubjectpropertyforredevelopment. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage91 Packet Pg. 151 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Basedonmysitevisit,physicalwalkthroughinspection,marketdata,researchandanalysis,itismy opinionthattheAsIsMarketValueoftheFeeSimpleInterest,intheSubjectPropertycommonly knownas,316and316½SimontonStreet,MonroeCounty,KeyWest,Florida,subjecttodefinitions, assumptionsandlimitingconditions,asofNovember7,2018is: TWOMILLIONONEHUNDREDNINETYTHOUSANDDOLLARS ($2,190,000) Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage92 Packet Pg. 152 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL CERTIFICATEOFAPPRAISAL IHEREBYCERTIFYTHATUPONAPPLICATIONFORVALUATIONBY: Mr.KevinG.Wilson,P.E. AssistantCountyAdministrator MonroeCounty 102050OverseasHighway KeyLargo,FL33037 Ipersonallyexaminedthefollowingdescribedproperty: COMMONLYKNOWNAS:316 AND 316½S IMONTON S TREET K EY W EST,M ONROE C OUNTY,F LORIDA 33040 andbasedonmysitevisit,physicalwalkthroughinspection,marketdata,researchandanalysis,itis myopinionthattheAsIsMarketValueoftheLeasedFeeInterest,intheaboveSubjectProperty, subjecttodefinitions,assumptionsandlimitingconditions,asofNovember7,2018is: TWOMILLIONONEHUNDREDNINETYTHOUSANDDOLLARS ($2,190,000) IADDITIONALLYCERTIFYthat,tothebestofmyknowledgeandbelief: "Thestatementsoffactcontainedinthisreportaretrueandcorrect. "Thereportedanalyses,opinion,andconclusionsarelimitedonlybythereportedassumptions andlimitingconditions,andaremypersonal,impartial,andunbiasedprofessionalanalyses, opinionsandconclusions. "Ihavenobiaswithrespecttothepropertythatisthesubjectofthisreportortotheparties involvedwiththisassignment. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) "Myengagementinthisassignmentwasnotcontingentupondevelopingorreporting predeterminedresults. "Mycompensationforcompletingthisassignmentisnotcontingentuponthedevelopmentor reportingofapredeterminedvalueoradirectioninvaluethatfavorsthecauseoftheclient,the AppraisalCompanyofKeyWestPage93 Packet Pg. 153 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL amountofthevalueopinion,theattainmentofastipulatedresult,ortheoccurrenceofa subsequenteventdirectlyrelatedtotheintendeduseofthisappraisal. "Myanalyses,opinions,andconclusionsweredevelopedandthisreporthasbeenpreparedin conformitywiththeUniformStandardsofProfessionalAppraisalPractice. "JamesE.Wilsonhasmadeapersonalsitevisitofthepropertythatisthesubjectofthisreport. "Noonehasprovidedsignificantprofessionalassistancetothepersonssigningthisreport. "TheuseofthisreportissubjecttotherequirementsoftheStateofFloridarelatingtoreviewby theFloridaRealEstateAppraisalBoardoftheDepartmentofProfessionalRegulations,Division ofRealEstate. "Thereportedanalyses,opinionsandconclusionsweredeveloped,andthisreporthasbeen prepared,inconformitywiththerequirementsoftheCodeofProfessionalEthicsandthe StandardsofProfessionalAppraisalPracticeoftheAppraisalInstitute. "TheuseofthereportissubjecttotherequirementsoftheAppraisalInstituterelatingtoreview byitsdulyauthorizedrepresentatives. "Myofficehasnotappraisedthesubjectpropertyinthepastthreeyears.Inaddition,noother professionalserviceswererenderedbymyofficeinconnectiontothesubjectpropertyoverthe lastthreeyears. "JamesE.WilsonhascompletedtheStandardsandEthicseducationrequirementoftheAppraisal InstituteforAssociateMembers. APPRAISALCOMPANYOFKEYWEST Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) JamesE.Wilson,MRICS,President Statecertifiedgeneralrealestateappraiser No.RZ2164 AppraisalCompanyofKeyWestPage94 Packet Pg. 154 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL ASSUMPTIONSANDLIMITINGCONDITIONS APPRAISALDEVELOPMENTANDREPORTINGPROCESS:Inpreparingthisappraisal,the appraiserinspectedthesubjectsiteandboththeexteriorandinterioroftheimprovements.Information oncomparablelandandimprovedsalesweregathered,confirmed,andanalyzed.Theappraisalreport whichisintendedtocomplywiththereportingrequirementssetforthunderStandardRule2-2(a)ofthe UniformStandardsofProfessionalAppraisalPracticeforanappraisalreport,TitleXIoftheFinancial InstitutionsReform,RecoveryandEnforcementActof1989(FIRREA),andtheCodeofProfessional EthicsandStandardsofProfessionalPracticeoftheAppraisalInstitute,plustheappraisalguidelines ofMonroeCounty.Assuch,itmightnotincludefulldiscussionsofthedata,reasoning,andanalyses thatwereusedintheappraisalprocesstodeveloptheappraiser'sopinionofvalue.Supporting documentationconcerningthedata,reasoning,andanalysesisretainedintheappraiser'sfile.The informationcontainedinthisreportisspecifictotheneedsoftheclientandfortheintendedusestated inthisreport.Theappraisersarenotresponsibleforunauthorizeduseofthisreport. Inpreparingthisappraisal,theappraisersvisitedthesubjectsiteandaphysicalwalk-throughofthe improvements.Informationoncomparableimprovedsalesandrentalswasgathered,confirmed,and analyzed. THISVALUATIONISCONTINGENTUPONTHEFOLLOWINGCONDITIONS: Thisappraisalistobeusedinwholeandnotinpart,inparticular,nopartofthecontentsofthisreport shallbeconveyedtothepublicthroughadvertising,publicrelations,news,salesorothermedia,without thewrittenconsentandapprovaloftheauthor,particularlyastovaluationconclusions,theidentityof theappraiserorfirmwithwhichheisconnected. Thedistributionofvaluebetweenlandandbuildingappliesonlyunderthepresentprogramof utilizationandisinvalidatedifusedinmakingasummationappraisal. Thisreportcontainstheresultsofmyinvestigationandanalysismadeinordertofurnishanestimate oftheAsIsMarketValueoftheFeeSimpleInterest inthesubjectproperty.TheFeeSimpleInterest istheunencumberedvalueofthesubjectproperty;basically,marketrentsandtermsareconsideredwith noregardtoexistingleasesandterms.TheFeeSimpleInterestisanownershipinterestheldbythe landlord,whoconveystherightsofuseandoccupancytoatenantbylease.Thelandlord’srights includetherighttoreceiverentandtherightofpossessionattheendoftheleaseperiod.Thesubject propertyistenantoccupiedbytwotenants,whilethestorageunitisowner-occupied.Thetenant Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) occupiedunitsarerentedonamonth-to-monthatbelowmarketrents.Inthecaseathand,onlytheFee SimpleAnalysiswasapplicable. NoresponsibilityisassumedbytheAppraiserformatterswhichareoflegalnature,norisanyopinion onthetitlerenderedherewith.Goodtitleisassumed. AppraisalCompanyofKeyWestPage95 Packet Pg. 155 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL Thepropertyhasbeenappraisedasthoughfreeofliensandencumbrances,exceptashereindescribed. Themanagementofthepropertyisassumedtobecompetentandtheownershipinresponsiblehands. TheappraiserutilizedthedimensionsprovidedinasurveypreparedbyIslandSurveying,Inc.,dated April25,2011.Ifand/orwhenanupdatedsurveyismadeavailableorifanydiscrepanciesarefound withregardtoeasements,encroachments,orsitedimensions,theappraisersreservetherighttoamend thevaluationcontainedherein. TheAppraiserhereinisnotrequiredtogivetestimonyincourtunlessarrangementshavebeen previouslymadethereof. TheAppraiserassumesthattherearenohiddenorunapparentconditionsoftheproperty,subsoil,or structures,whichwouldrenderitmoreorlessvaluable.TheAppraiserassumesnoresponsibilityfor suchconditions,orforengineeringwhichmightberequiredtodiscoversuchfactors. Information,estimatesandopinionsfurnishedtotheappraisers,andcontainedinthereport,were obtainedfromsourcesconsideredreliableandbelievedtobetrueandcorrect.However,norespon- sibilityforaccuracyofsuchitemsfurnishedtotheAppraisercanbeassumedbytheAppraisers. DisclosureofthecontentsoftheappraisalreportisgovernedbytheBylawsandRegulationsofthe professionalappraisalorganizationswithwhichtheAppraiserisaffiliated. TheundersignedAppraiserhasnopresentorcontemplatedfutureinterestinthepropertyandthe compensationisinnomannercontingentuponthevaluereported. Possessionofthisreportdoesnotcarrywithittherightofpublicationoradvertisementofanyofits conclusions,normayanyexcepttheapplicantusethesameforanypurposewithoutthepreviouswritten consentoftheappraiserortheapplicant. Therewasnovisibleevidenceofwaterdamageintheformofceilingstainsinbuildings.However,a recentbuildinginspectionreportshavenotbeenprovided. Inthisappraisalassignment,theexistenceofpotentiallyhazardousmaterialusedintheconstructionor maintenanceofthebuilding,suchasthepresenceofradon,asbestosinsulationand/orexistenceoftoxic waste,whichmayormaynotbepresentontheproperty,hasnotbeenconsidered.Duetotheageof thesubjectstructures,thepresenceoflead-basedpaintisprobable.TheAppraiserisnotqualifiedto Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) detectsuchsubstancesandanexpertinthefieldisrecommended. TheAmericanswithDisabilitiesAct("ADA")becameeffectiveJanuary26,1992.Theappraisershave notmadeaspecificsurveyoranalysisofthispropertytodeterminewhetherornotitisinconformity withthevariousdetailedrequirementsoftheADA.Itispossiblethatacompliancesurveyofthe property,togetherwithadetailedanalysisoftherequirementsoftheADA,couldrevealthatthe AppraisalCompanyofKeyWestPage96 Packet Pg. 156 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL propertyisnotincompliancewithoneormoreoftherequirementsoftheAct.Ifso,thisfactcouldhave anegativeeffectuponthevalueoftheproperty.Sincetheappraiserhasnodirectevidencerelatingto thisissue,possiblenoncompliancewiththerequirementsoftheADAinestimatingthevalueofthe propertyhasnotbeenconsidered. ThisappraisalreporthasbeenmadeinconformitywithandissubjecttotherequirementsoftheCode ofProfessionalEthicsandStandardsofProfessionalConductoftheappraisalorganizationswithwhich theAppraisersareaffiliated. Thediscoveryoflatentconditionsisbeyondthescopeofthisappraisal.Detectionoflatentconditions requirestheexpertiseofqualifiedpersonssuchasarchitectsandengineers.Latentconditionsinclude, amongotherthings,non-apparentstructuralconditions;presenceofprohibitedhazardouswastes; presenceofradongas,methanegas,asbestos,lead,petroleumproductsandotherair,soil,orwater contaminants;andmanyotherconditionstoonumeroustomentionwhichmayaffectthevalueofthe propertybeingappraised.Theappraiserconductingthisappraisalisnotqualifiedtodetectlatent conditionsandhasconductedthisappraisalupontheassumptionthatnolatentconditions(including thosementionedaboveandothers)existonthepropertycoveredbythisappraisal. ACCORDINGLYNOTICEISHEREBYGIVENthatneithertheappraisersconductingthisappraisal, northeAPPRAISALCOMPANYOFKEYWESTmakeanywarranty,expressorimplied,toproperty coveredbythisappraisal,andneithershallhaveanyliabilitytoanypersonfordifferencesinthevalue oftheappraisedproperty,orotherdamages,resultingfromdiscoveryoflatentconditions(including thosementionedaboveandothers)on,orinproximityto,theappraisedlands. ThisappraisalreportisinconformitywiththeUniformStandardsofProfessionalAppraisalPractices andthisappraisalassignmentwasnotbasedonarequestedminimumvaluation,aspecificvaluation, ortheapprovalofaloan. Idoherebycertifythattothebestofmyknowledgeandbeliefthestatementsoffactcontainedinthis report,uponwhichtheanalyses,opinionsandconclusionsexpressedhereinarebased,aretrueand correct;alsothisreportsetsforthallthelimitingconditionsaffectingtheanalyses,opinionsand conclusionscontainedinthisreport;alsothisreporthasbeenmadeinconformitywiththeAppraisal Institute. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage97 Packet Pg. 157 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL PROFESSIONALQUALIFICATIONS JAMESE.WILSON,III,MRICS JamesE.WilsonhasbeenaresidentofSouthFloridasince1976.HiseducationincludesaBachelorof ScienceinBusinessAdministrationwithaMajorinEconomicsfromtheUniversityofFlorida,1987-1991. Hisexperienceintherealestateindustrybeganinearly1992asaresidentialrealestateappraiserin PompanoBeach,Florida.Heappraisedawidevarietyofsingleandmulti-familyresidentialpropertiesin Dade,Broward,andPalmBeachcountiesoveratwo-yearperiod.Inthesearchofadvancementand challenge,JamesWilsonmovedtotheCityofKeyWest,MonroeCounty,Floridainordertoobtain experienceandpracticecommercialrealestateappraisalvaluationtechniquesinademandingandsomewhatuniquemarketarea.Over thepast25yearsJameshasbeenexposedtoawide-rangeofappraisalprojects,includinghighestandbestusestudies,complexproperty appraisals,andwetlandandenvironmentallysensitivevaluationsincludingtransferrabledevelopmentrights.Hisappraisalexperience includesfinancialandinvestmentanalysis,appraisalreview,feasibilityandplanninganalysis,aswellasmarketresearchandanalysis. JamesWilsonisaStateCertifiedGeneralRealEstateAppraiser(licensedtoperformresidentialandcommercialappraisals)andaGeneral AssociateMemberoftheAppraisalInstitute.HeisamemberofRICS(RoyalInstitutionofCharteredSurveyors),whichisan internationalmemberorganizationforprofessionalsinproperty,land,realestate,constructionandrelatedenvironmentalissues.Jimis pastPresidentoftheKeyWestGatorClub,2013/2014PresidentoftheSunsetKeyWestRotaryClub,memberofClassVIILeadership Monroe,2012PresidentoftheKeyWestChamberofCommerce,andhasbeenelectedtocontinuetoserveontheBoardofDirectorsof theKeyWestChamberofCommerce.JimisstillanactivememberontheBoardofDirectorsfortheKeyWestChamberofCommerce. Education:SOUTHBROWARDHIGHSCHOOL,Hollywood,FL,1987. UNIVERSITYOFFLORIDA,Gainesville,Florida-BachelorofScienceinBusinessAdministration- MajorinEconomics,1987-1991. APPRAISALINSTITUTE AppraisalReportingofComplexResidentialProperties,October,1993. PersuasiveStyleinNarrativeAppraisalReports,May,1994. ACE1779-“SpecialPurposeProperties-TheChallengeofRealEstateAppraisinginLimitedMarkets”, September,1996. 410StandardsofProfessionalPractice,PartA(USPAP),8/97. 420StandardsofProfessionalPractice,PartB,August,1997. 520Highest&BestUseandMarketAnalysis,October,1997. Non-ConformingUsesSeminar,January,1998. 510AdvancedIncomeCapitalization,May,1998. 530AdvancedSalesComparison&CostApproach,May,1998. 540ReportWriting&ValuationAnalysis,August,1998. 550AdvancedApplications,February,1999. RegressionAnalysisinAppraisalPractice:Concepts&Applications,Seminar,March,2000. GeneralDemonstrationAppraisalReportWritingSeminar,March,2000. 800SeparatingPersonal&RealPropertyfromIntangibleBusinessAssets,March,2002. SuccessfulCompletionoftheGeneralComprehensiveExaminationfortheAppraisalInstitute UniformAppraisalStandardsforFederalLandRequisitions,March,2007 GeneralDemonstrationAppraisalReportWritingSeminar,August,2007 ValuationofConservationEasements,January,2008. AppraisingDistressedCommercialRealEstate,June,2009 Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) OilSpillsandPropertyValues,Webinar,August,2010 BusinessPracticesandEthics,September,2010 ADebateoftheAllocationofHotelTotalAssets,October26,2010 AppraisalInstituteUpdate,May19,2011 AppraisalCurriculumOverview(2-dayGeneral)May,2011 AppraisalCompanyofKeyWestPage98 Packet Pg. 158 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL ProfessionalQualificationsofJamesE.Wilson,III(Continued) APPRAISALINSTITUTE PerspectivesfromCommercialReviewAppraisers,July20,2011 FundamentalsofSeparatingRealProperty,PersonalProperty,andIntangibleBusinessAssets,05/07/2012- 05/08/2012 UAD-UpCloseandPersonal,November,2014 ExpertWitnessTestimony:ToDoorNottoDo,November,2014 AnalyzeThis!ApplicationsofAppraisalAnalysis,November,2014 FloridaAppraisalLawsandRegulationsUpdate ReviewersChecklist,November,2014 NationalUSPAPUpdateEquivalent(2014-2015),November,2014 PurchasePriceAllocationsforFinancialReportandTax,April16,2014 BehindtheHeadlines,theNewRealEstateRealEstateEconomy,May16,2014 GOLDCOASTSCHOOLOFREALESTATE RealEstatePrinciples,Practices,andLaw-FRECCourseI,May,1992. SalesmanPost-LicenseProgram,February,1994. MortgageBroker,Exam-PrepProgram,September,1992. ABI-AppraisalBoard-FundamentalsofR.E.Appraising,5/92. ABII-Appr.Board-AppraisingResid.&IncomeProperties,2/94. ABIIb-AppraisalBoard-Cert.Resid.AppraisalCourse,7/94. ABIII-AppraisalBoard-CertifiedGeneralAppraisalCourse(IncomeCapitalizationCourse),February, 1995. USPAP-UniformStandardsofProfessionalAppraisalPractice,6/92. USPAPCourse,September,1995. A-102-PlanReadingforAppraisers,September,1995. NationalUSPAPUpdateCourse,June2006 TechniquesofIncomePropertyAppraisal,June2006 McKISSOCKDATASYSTEMS AutomatedValuationModels,October,2000. UniformStandardsofProfessionalAppraisalPractice,October,2000. FactoryBuiltHousing,October,2000. AppraiserLiability,September,2002. AppraisingNonconforming&DifficultProperties,September,2002. AppraiserLiability,USPAP,September,2002. AppraisingfortheSecondaryMarket,October,2004. AppraisingHigh-ValueResidentialProperties,October,2004. FloridaLawsandRegulations,October,2004. LimitedAppraisalsandtheScopeofWorkDecision,October,2004. NationalUSPAPEquivalent,October,2004. FloridaLawsandRegulations,September2006. DisclosuresandDisclaimer,September,2006. AppraisalTrends,September2006. NationalUSPAPUpdateEquivalent(2008-2009),November,2008. IntroductiontoExpertWitnessTestimony,November2008. MortgageFraud-ProtectYourself,November,2008. FloridaAppraisalSupervisor-TraineeRolesandRelationships,November,2008. FloridaLawsandRegulations,November,2008. NationalUSPAPUpdateEquivalent(2010-2011),August,2010. RiskyBusiness:WaystoMinimizeLiability,August,2010. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage99 Packet Pg. 159 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL ProfessionalQualificationsofJamesE.Wilson,III(Continued) FloridaLawsandRegulations,August2010. FloridaApprisalSupervisor-TraineeRolesandRelationships,August,2010. TheChangingWorldofFHAAppraising,August,2010. SystemsBuiltHousing:AdvancesinHousingfortheNewMillennium,October,2012 DerivingandSupportingAdjustments,October,2012 IntroductiontoRegressionAnalysisforAppraisers,October,2012 IntroductiontoResidentialGreenBuildingforAppraisers,October,2012 FloridaAppraisalLawsandRegulationsUpdate NationalUSPAPUpdateEquivalent(2012-2013),October,2012 AppraisalofFastFoodFacilities,November,2016 2016-2017-HourNationalUSPAPUpdateCourse,November,2016 ManagingAppraiserLiability,November,2016 FloridaAppraisalLawsandRegulations,November,2016 AdvancedHotelAppraising-FullServiceHotels,November,2016 FloridaAppraisalLawsandRegulations,October31,2018 2018-20197-HourNationalUSPAPUpdateCourse,November2018 AppraisingSmallApartmentProperties,November2018 AppraisalofLandSubjecttoGroundLeases,November2018 TheBasicsofExpertWitnessforCommercialAppraisers,November2018 VALUEINFORMATIONTECHNOLOGY,INC. "PerspectivesonAppraisals"FREABCourseACE#1591,June,1995. NORTHBROWARDBOARDOFREALTORS ACE591-BasicsofConstruction-HowaFloridaHomeisBuiltII,January,1994. Certification:Statecertifiedgeneralrealestateappraiser,asdesignatedbytheDepartmentofProfessionalRegulation, StateofFlorida;RegistrationNo.RZ2164. LicensedRealEstateSalesperson,asdesignatedbytheDepartmentofProfessionalRegulation,Stateof Florida;LicenseNo.SL0589552(currentlyinactive). Professional Associations:KeyWestBoardofRealtors GeneralAssociateMemberoftheAppraisalInstitute MemberofRICS(RoyalInstituteofCharteredSurveyors),October,2010Member#1299389 Affiliations:PastPresidentoftheKeyWestGatorClub(AlumniOrganizationoftheUniversityofFlorida MemberofClassVIII,LeadershipMonroeCounty BoardMemberoftheRotaryClubofSunsetKeyWest,2013/2014President,2009Treasurer,2010Vice President,2011President-Elect,2012PresidentBoardofDirectorsoftheKeyWestChamberofCommerce, CurrentBoardMember Experience:WILCOVALUATIONS,P.A.d/b/aAPPRAISALCOMPANYOFKEYWEST,JamesWilson,President andhiswife,MariaVirginiaWilson,alsoaStateCertifiedGeneralRealEstateAppraiserpurchasedthe AppraisalCompanyofKeyWestfromMr.RichardPadroninApril,2004. APPRAISALCOMPANYOFKEYWEST,INC.,FeeCommercialRealEstateAppraiser,April,1994to April,2004. F.C.P.APPRAISALSERVICES,INC.,SeniorRealEstateAppraiserandTrainer,May,1992toApril, 1994. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage100 Packet Pg. 160 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL AppraisedvarioustypesofpropertiesintheFloridaKeys,including: RetailStoresCommercial/ResidentialCondominiums RestaurantsFull-ServiceMarinas/BoatYards StripCentersEnvironmentallySensitiveAcreage OfficeBuildingsIndustrialUses Mixed-UsePropertiesGuestHouses/Hotels/Motels ServiceStationsMobileHomeandRVParks Multi-familyProjectsWarehouse(includingmini-storage) ProposedDevelopmentsSpecial-UsePropertiesincludingSchools Single-familyEstatesSeafoodProcessingPlants APPRAISERCERTIFICATION Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage101 Packet Pg. 161 C.3.b AppraisalReport316&316½SimontonStreet,KeyWest,FL 1TheDictionaryofRealEstateAppraisal,ThirdEdition,1993,AppraisalInstitute,Page16. 2TheDictionaryofRealEstateAppraisal,Page17. 3TheDictionaryofRealEstateAppraisal,Page50. 4TheDictionaryofRealEstateAppraisal,Page140. Attachment: Appraisal Co of KW appraisal(316) (Purchase contract for 316 Simonton Street for PD) AppraisalCompanyofKeyWestPage102 Packet Pg. 162 C.3.c th 7245 S.W. 87 Avenue, Suite 300 Miami, Florida 33173 APPRAISAL OF REAL PROPERTY 316 Simonton Street Key West, Monroe County, Florida 33040 Appraisal Report SJM File: 18536 PREPARED FOR Mr. Kevin G. Wilson, P.E. Assistant County Administrator Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Monroe County 102050 Overseas Highway Key Largo, FL 33037 1 Packet Pg. 163 C.3.c Andrew H. Magenheimer, MAI Theodore W. Slack, MAI Cert. Gen. RZ1073 (1902- 1992) Theodore C. Slack, MAI (1931-2015) Sue Barrett Slack, MAI (Retired) Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) SLACK, JOHNSTON & MAGENHEIMER, Inc. th 7245 S.W. 87 Avenue, Suite 300, Miami, Florida 33173 Telephone (305) 670-2111 ¤ Email: SJMIAMI@aol.com Packet Pg. 164 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 165 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 166 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 167 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 168 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 169 C.3.c SUBJEC Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 170 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 171 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 172 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 173 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 174 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 175 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 176 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 177 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 178 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 179 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 180 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 181 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 182 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 183 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 184 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 185 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 186 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 187 C.3.c SUBJECT Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 188 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 189 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 190 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 191 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 192 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 193 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 194 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 195 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 196 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 197 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 198 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 199 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 200 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 201 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 202 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 203 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 204 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 205 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 206 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 207 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 208 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 209 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 210 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 211 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 212 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 213 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 214 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 215 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 216 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 217 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 218 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 219 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 220 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 221 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 222 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 223 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 224 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 225 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 226 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 227 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 228 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 229 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 230 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 231 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 232 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 233 C.3.c Attachment: Magenheimer Appraisal (316) (Purchase contract for 316 Simonton Street for PD) Packet Pg. 234