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Item O3 0.3 County �� � .�� �y,4 ' �, "tr, BOARD OF COUNTY COMMISSIONERS Mayor Michelle Coldiron,District 2 �1 nff `ll Mayor Pro Tem David Rice,District 4 -Ile Florida.Keys Craig Cates,District 1 Eddie Martinez,District 3 w Mike Forster,District 5 County Commission Meeting January 20, 2021 Agenda Item Number: 0.3 Agenda Item Summary #7630 BULK ITEM: No DEPARTMENT: Assistant County Administrator Kevin Wilson TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292-4441 No AGENDA ITEM WORDING: Approval of a resolution authorizing a land exchange with Fishermen's Health, Inc. to convey a portion of the property containing the old Marathon branch library to Fishermen's in exchange for Fishermen's property at 2855 Overseas Highway in Marathon with a 15 year restrictive covenant prohibiting the latter property from any medical use, and authorizing the Mayor to execute any documents necessary to complete exchange. ITEM BACKGROUND: Fishermen's Health, Inc. approached the County with a proposal to exchange its property at 2855 Overseas Highway; Marathon, FL for a portion of the County's property at 3251 Overseas Highway; Marathon, FL. The County's parcel includes the current branch library (7,210 SF) and a total of approximately 1.51 acres of land surrounding the library. The Fishermen's property is approximately 0.34 acres with a 5,832 SF building. Appraisals of both properties were made by both the County and Fishermen's. A tabulation of the various appraisals is included in the backup as well as copies of all inspections completed on the Fishermen's property (2855 Overseas Highway) to date by County consultants. Under F.S. 125.37 the BOCC has the discretion to exchange any County owned property not needed for County purposes for another property desired for County purposes, provided that the BOCC adopts a resolution authorizing the exchange after publishing notice once a week for at least two weeks in a newspaper of general circulation in the County. Notice of the terms and conditions of the proposed exchange is being published in the Key West Citizen (1/6 & 1/13) as required by statute as well as the Keys Weekly (1/7 & 1/14), and the News Barometer (1/8 & 1115)per County policy. The transaction would enable Fishermen's to expand the medical services it provides to residents and visitors to Marathon and the Middle Keys because the library property is adjacent to Fishermen's hospital. Fishermen's intends to renovate the library property to house offices for medical specialists and other providers in support of the hospital. In exchange, the County will be receiving a building site that is suitable for office space in location Packet Pg. 2312 0.3 that is convenient to the Marathon Courthouse and the County's Marathon Government Center. The new space will house the Public Defender and the Supervisor of Elections offices, both of which will be moving out of rented space. The County is obligated to provide office space for constitutional officers. The statute requires that the Board approve the exchange by resolution. The first document attached as backup is the draft resolution approving the sale. Exhibit 1 to the resolution is the draft contract which conveys a portion of the library parcel at 3251 Overseas Highway (identified in the resolution and the deed as Parcel A) from the County to Fishermen's in exchange for the Fishermen's property at 2855 Overseas Highway (identified in the resolution and the deed as Parcel B). Exhibit 2 is the reciprocal agreement conveying the Fishermen's property to the County. Exhibit 3 is a copy of the notice of proposed exchange of County property that is being published in the newspapers. PREVIOUS RELEVANT BOCC ACTION: None CONTRACT/AGREEMENT CHANGES: New STAFF RECOMMENDATION: Approval DOCUMENTATION: Item 03 - Resolution with signed Agreements_01-12-21 Resolution Authorizing Land Swap Marathon Library for Fishermen parcel 2020-11-06 Fisherman's Proposal Library Appraisal Comparisons 2020-10-29 Appraisal of Library (1.51ac) (by County) 2017-12-30 Appraisal of Library Appraisal (0.63ac)(by County) 2020-04-29 Appraisal of Library (by Fishermans) 2020-09-15 reappraisal of 2855 (by Fishermans) 2018-10-25 Appraisal of 2855 (by Fishermans) 2020-01-24 Appraisal of 2855 (by County) (market rate) 2020-01-13 FEMA Repl Cost for 2855(by County) Survey of library & associated land to transfer( 10.6.20) 2019-11-21 Structural Assesment(2855) 2019-12-16 Roof(2855) 2019-11-05 Mechanical (2855) FINANCIAL IMPACT: Effective Date: 20 January 2021 Expiration Date: N/A Total Dollar Value of Contract: $1,465,000.00 Total Cost to County: $0 Current Year Portion: $1,465,000.00 Packet Pg. 2313 0.3 Budgeted: No Source of Funds: N/A CPI: N/A Indirect Costs: Staff time Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: No If yes, amount: Grant: County Match: Insurance Required: Additional Details: N/A N/A REVIEWED BY: Kevin Wilson Completed 12/30/2020 9:09 AM Bob Shillinger Completed 01/05/2021 11:25 AM Purchasing Completed 01/05/2021 11:25 AM Budget and Finance Completed 01/05/2021 12:12 PM Maria Slavik Completed 01/05/2021 12:53 PM Liz Yongue Completed 01/05/2021 12:57 PM Board of County Commissioners Pending 01/20/2021 9:00 AM Packet Pg. 2314 0.3.a A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA FINDING THAT A PORTION OF A COUNTY OWNED PARCEL ("PARCEL A") IN THE CITY OF MARATHON LOCATED AT 3251 OVERSEAS HIGHWAY WITH A PARCEL ID NUMBER OF 00102310-000000 AND KNOWN LOCALLY AS THE MARATHON BRANCH LIBRARY WILL NO LONGER BE NEEDED FOR COUNTY PURPOSES AFTER COMPLETION OF A NEW BRANCH LIBRARY AT ANOTHER LOCATION AND THAT SWAPPING THAT PARCEL PURSUANT TO F.S. 125.37 FOR A PARCEL OWNED BY FISHERMEN'S HEALTH, INC. ("PARCEL B") LOCATED AT 2855 OVERSEAS HIGHWAY, MARATHON = WITH A PARCEL ID NUMBER OF 00321730-000000 IS IN THE BEST INTERESTS OF MONROE COUNTY; APPROVING THAT EXCHANGE OF REAL PROPERTY; AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS NECESSARY TO EFFECTUATE SAID EXCHANGE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Monroe County ("the County"), a political subdivision of the State of Florida, pursuant to its home rule powers and F.S. 125.37, has the authority to determine that certain County property is no longer needed for County purposes and to exchange such property for other property which the County may desire to acquire for County purposes; and WHEREAS, the County currently owns in fee simple, a 1.51 acre parcel of land N with a 7,210 square foot building that is located at 3251 Overseas Highway, Marathon, Florida, the current location of the Marathon branch library, which has a parcel ID number of 00102310-000000. The County intends to convey a portion of this property, hereinafter referred to as "Parcel A," as more fully described in the purchase and sale agreement incorporated into this Resolution as Exhibit 1; and WHEREAS, the County is currently finishing the construction of a new Marathon branch library building at another location; and WHEREAS, the Board finds that once construction of the new library building is completed in 2021, Parcel A will no longer be useful to the County; and WHEREAS, the Fishermen's Health, Inc., a Florida not-for-profit corporation, owns in fee simple a 0.34 acre parcel of land with a 5,832 square foot building that is located at 2855 Overseas Highway, Marathon, Florida, which has a parcel ID number of 00321730-000000 (hereinafter "Parcel B"), more fully described in Exhibit 1 as Parcel B; and 1 Packet Pg. 2315 0.3.a WHEREAS, Fishermen's Health, Inc. operates Fishermen's Hospital, the only hospital located within the Middle Keys; and WHEREAS, Fishermen's Hospital is part of the Baptist Health Systems network; and WHEREAS, as part of the renovation of Fishermen's Hospital made necessary after that facility was damaged by Hurricane Irma, Fishermen's Health, Inc. desires to Ch expand its facilities to include an office building for physicians and other medical providers; and WHEREAS, Parcel A is adjacent to Fishermen's Hospital; and WHEREAS, Fishermen's Health Inc. has expressed a desire to acquire Parcel A as a site for an office building for physicians and other medical providers; and WHEREAS, the Board finds that a fully functional Fishermen's Hospital complete with an office building for physicians and other medical providers in support of the hospital is necessary for the health, safety, and welfare of residents of the Middle Keys; and N WHEREAS, the Board finds that exchanging Parcel A for Parcel B with Fishermen's Health, Inc. is therefore in the best interests of the County, the City of Marathon, and their residents; and WHEREAS, the Board finds that receipt of Parcel B will serve a public purpose by providing office space for Constitutional Officers that is convenient to the Marathon Branch Courthouse and the Marathon Government Center; and WHEREAS, F.S. 125.37 states that "[w]henever, in the opinion of the board of county commissioners, the county holds and possesses any real property, not needed for county purposes, and such property may be to the best interest of the county exchanged for other real property, which the county may desire to acquire for county purposes, the said board of county commissioners of any county is authorized and empowered to make such an exchange. Provided, however, before any exchange of property shall be effected, , a notice, setting forth the terms and conditions of any such exchange of property, shall be first published, once a week for at least 2 weeks, in a newspaper of general circulation published in the county, before the adoption by the board of county commissioners of a resolution authorizing the exchange of properties[;]" and WHEREAS, in accordance with F.S. 125.37, the County published a Notice of Exchange of Real Property once a week for two (2) weeks in a newspaper of general circulation, which notice is attached as Exhibit 3 to this Resolution; and WHEREAS, the Board desires to approve and authorize the exchange of Parcel A for Parcel B; and 2 Packet Pg. 2316 0.3.a WHEREAS, County staff and representatives of Fishermen's Health, Inc. have negotiated and prepared two reciprocal purchase and sale agreements detailing the exchange described above, which attached as Exhibits 1 (Library to Fishermen's Health) and 2 (Fishermen's building to County); and NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA THAT: 1. The above recitals set forth above are true, accurate, and deemed incorporated herein as though set forth in full hereunder. 2. The Board authorizes the exchange of County Property identified above. 3. The Board approves of the instruments effectuating the exchange, which are incorporated into this Resolution as Exhibits 1 and 2, and authorizes the Mayor or, in the Mayor's absence, the Mayor Pro Tem to execute same. 4. The deeds shall be recorded in the Official Records of Monroe County, Florida. N 5. This resolution shall be effective upon adoption. Passed and Adopted by the Board of County Commissioners of Monroe County, N Florida, at a regular meeting of the Board held on the 20t" day of January, 2021. Mayor Michelle Coldiron Mayor Pro Tem David Rice Commissioner Craig Cates Commissioner Eddie Martinez N Commissioner Mike Forster Attest: Kevin Madok, Clerk Board of County Commissioners of Monroe County, Florida by: by: As Deputy Clerk Michelle Coldiron Mayor of Monroe County Approved as to form and legal sufficiency by Monroe County Attorney Robert B. Shillinger for reliance by the Monroe County BOCC only. Digitally signed by Robert B. Robert B. Shillinger DN:Cn-Robert B.Shillinger, o-Monroe County BOCC, ou-Monroe County Attorney, ennail=shill ger- Shillinger Date@2 nrA7A5unt-fl.g OS00S 3 Packet Pg. 2317 0.3.a Exhibit 1 Purchase and Sale Agreement Conveying County Library Property to Fishermen's Inc. N N N 4 Packet Pg. 2318 0.3.a Execution Copy AGREEMENT FOR PURCHASE AND SALE THIS AGREEMENT FOR PURCHASE AND SALE (the "Agreement") is made as of the day of , 2021 by and between FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation, having its address at 6855 Red Road, Suite 600, Coral Gables, Florida 33143 (hereinafter called "Purchaser"), and MONROE COUNTY, a political subdivision of the State of Florida, having it's address at 1100 Simonton Street Suite 2-216, Key West, Florida 33040 (hereinafter called"Seller"). WITNESSETH: WHEREAS, Seller is the owner of that certain parcel of land comprising approximately 1.51 acres, located at 3251 Overseas Highway, Marathon, Florida 33050, situated, lying and being in Monroe County, Florida, and legally described in Exhibit "A" attached hereto, including the land and all improvements thereto and thereon, all fixtures and equipment affixed or attached thereto, and all easements, rights of way, privileges, appurtenances and other rights pertaining thereto (hereinafter collectively referred to as the"Property"); and WHEREAS, Seller is desirous of selling and conveying and Purchaser is desirous of acquiring Seller's interest in the Property. N NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and Ni valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Seller agrees to sell and convey and Purchaser agrees to acquire Seller's interest in the Property upon E the terms and conditions hereinafter set forth. 1. SALE-PURCHASE: Seller hereby agrees to sell and convey to Purchaser its fee simple interest in and to the Property, and Purchaser hereby agrees to purchase Seller's fee simple interest in and to the Property, with such conveyance to be subject to and in accordance with the terms, provisions, covenants and conditions more particularly set forth in this Agreement. Seller also agrees to convey to Purchaser at Closing all of Seller's right, title and interest in and to all governmental orders, resolutions, grants, site plans or approved plats, zoning approvals, development rights, resolutions, permits and rights accruing to Seller as a result of its ownership of the Property, and the operation of same, contract rights, easements, covenants, privileges, servitudes, appurtenances, strips of land and roadways adjoining the Property, and other rights relating to the Property (collectively the "Rights and Permits"). 2. PURCHASE PRICE: E The purchase price ("Purchase Price") for the Property shall be One Million Four Hundred Sixty Five Thousand and No/100 Dollars ($1,465,000.00), payable by Purchaser in whole to Seller by conveyance to Seller of that certain parcel of real property located at 2855 Overseas Highway, Marathon, Florida 33050, and legally described in Exhibit 1111" attached hereto (the "Exchange Property"). The parties agree that for the purposes of this transaction that both the Property and the Exchange Property are equal in value and that each has a fair market value of$1,465,000.00, respectively. Concurrently with the execution of this Agreement, Packet Pg. 2319 0.3.a Purchaser and Seller have executed an Agreement for Purchase and Sale of the Exchange Property (the "Exchange Agreement"). At Closing, Seller shall deliver the documents described in Paragraph 9 below for conveyance of the Property to Purchaser and on a future date to be mutually agreed upon prior to the Closing of this property Purchaser shall execute similar documents for conveyance of the Exchange Property to Seller. 3. "AS IS" CONVEYANCE WITH INSPECTION PERIOD: Purchaser is purchasing the Property in its "as-is" physical condition, specifically and expressly without any warranties, representations or guarantees, either express or implied, of any kind, nature, or type y whatsoever from or on behalf of Seller, except those as otherwise expressly set forth in this Agreement. Purchaser shall have until 5:00 p.m. on the one hundred twentieth (120t') day following the Effective Date, within which to conduct and complete its inspections and evaluations of the Property and the records relating to the operation thereof (the "Inspection Period"), which may include, but are not limited to, obtaining zoning approval for use of the Property for medical uses, Phase I and Phase II environmental surveys and soil tests. Seller shall provide Purchaser and its employees and agents access to the Property and to any y contracts, operating expenses and such other information as the Purchaser may reasonably request regarding the Property and the operation thereof. Seller agrees to give Purchaser and Purchaser's employees and agents reasonable access to the Property for the purposes of conducting such inspections and evaluations as the Purchaser deems necessary. If Purchaser provides Seller with written notice that Purchaser is not satisfied with the Property prior to 5:00 P.M. on the last day of the Inspection Period (the "Termination Notice"), this Agreement shall be deemed to be terminated. To be effective written notice of termination must be sent to Seller in accordance with the provisions of Section 18 below prior to the end of the Inspection Period. E If Purchaser terminates this Agreement, it shall, at its cost, repair any damage to the Property resulting from its inspections and evaluations. Purchaser and its agents shall keep the information obtained as a part of the due diligence confidential to the extent permitted by law. Purchaser shall indemnify, defend and hold Seller harmless from and against any and all action, N demands, liabilities, loss, damage or expense, including, but not limited to, construction liens and attorneys' fees, arising from or related to any incident, occurrence, damage, personal injury or property damage resulting from Purchaser or Purchaser's agents, contractors, employees, or anyone on Purchaser's behalf, performing Purchaser's examinations, inspections, measurements and testing of and on the Property. Purchaser agrees to give Seller prior reasonable advance notice of any inspections of the Property. Purchaser's indemnity and hold harmless pursuant to this Section shall survive the termination or expiration of this Agreement by Closing or otherwise. Within ten (10) days following the Effective Date, Seller will provide Purchaser with copies of all environmental surveys, soil tests and other studies in the possession of Seller or to which Seller has access, if any, which relate to the Property, and copies of any service contracts, records, documents and notices relating to the Property in Seller's possession or to which Seller has access. Seller acknowledges Purchaser may desire to discuss or otherwise inquire about plans, documents, agreements and other records of various governmental entities, districts and utilities regarding the Property or otherwise impacting, restricting, or affecting its use or value ("Governmental Records") with various governmental entities and utilities. In this regard, Purchaser is permitted to contact all necessary third parties and discuss with such third parties the Governmental Records. In the event this Agreement is terminated the Exchange Agreement shall also terminate. 2 Packet Pg. 2320 0.3.a 4. PERMITTED EXCEPTIONS: This sale is being made and Purchaser shall take title to the Property subject to the following(the"Permitted Exceptions"): A. Taxes and assessments for the years 2021 and thereafter. B. Restrictions, easements, covenants, conditions, limitations and reservations of record, provided that this recital shall not operate to re-impose same. C. Zoning and applicable governmental ordinances. 5. TITLE: (A) Seller represents that it is the owner of the Property and that there is no limitation or restriction upon or against its right to enter into this Agreement and to convey the Property as herein provided. (B) Purchaser shall, promptly after receipt of the Survey and the legal description of the Property, order a commitment for title insurance (the "Title Insurance W Commitment") from Chicago Title Insurance Company (the "Title Insurer"). Purchaser, at its own expense, prior to, or upon recording of the deed conveying title to the Property from Seller N to Purchaser, shall obtain an owner's policy of title insurance in the amount of the Purchase Price insuring Purchaser's title to the Property and, unless Purchaser consents otherwise, subject only Ni to those liens and encumbrances which shall be discharged by Seller at or before Closing, and the Permitted Exceptions. Purchaser will cause a copy of the Title Insurance Commitment to be delivered to Seller's attorney within three (3) business days of its receipt by Purchaser's attorney. Purchaser, within fifteen (15) days following the date on which Purchaser receives the Title Insurance Commitment, shall deliver to Seller written notice of Purchaser's objections, if any, to any exceptions which render title to the Property unmarketable or unusable for Purchaser's intended uses (the "Title Objections"). If Purchaser fails to deliver such written notice or N objection to Seller within such fifteen (15) day period, Purchaser shall be deemed to have waived its right to object. In the event that Purchaser shall provide Seller with any Title Objections, Seller shall promptly notify Purchaser following the date of Purchaser's notice of such objections that either (a) the Title Objection has been, or will be at or prior to Closing, satisfied or cured by y Seller, or (b) the Title Objection will not be satisfied or cured. If Seller notifies Purchaser that a Title Objection will not be satisfied or cured,then Purchaser may elect either: (i) to terminate this Agreement and the Exchange Agreement; E or (ii) to take title as it then is, subject to any Title Objection which Seller has notified Purchaser it will not satisfy or cure, with the election of section (i) above or this section (ii) to be made within ten (10) business days following receipt of notice from Seller described in Section 5(B)(b) above, provided that if Purchaser fails to make an election within the said ten (10) business day period, Purchaser shall be deemed to have elected(i). 3 Packet Pg. 2321 0.3.a If Purchaser receives notice from Seller as described in Section 5(13)(b) above, and makes a timely election of(ii)above,then: (i) Purchaser shall be deemed to have agreed to accept title as it then is, subject to any Title Objection which Seller has notified Purchaser it will not satisfy or cure, without any reduction in the Purchase Price; (ii) all Title Objections described in Purchaser's notice under y Section 5(13)(b) above not to be satisfied or cured will thenceforth be deemed Permitted Exceptions; and (iii) this Agreement shall remain in full force and effect. Seller shall have no affirmative obligation hereunder to expend any funds or incur any liabilities in order to cause any title exceptions to be removed from the Title Insurance y Commitment, except that Seller shall pay, discharge or bond off any monetary lien or encumbrance affecting the Property at or prior to Closing, provided such lien or encumbrance is W not created by Purchaser. Seller shall, prior to the Closing Date, obtain all resolutions and approvals necessary for Seller to convey title to the Property to Purchaser, and to convey the N Rights and Permits to Purchaser. i b. SURVEY: Purchaser may, at its sole cost and expense, order a survey (the "Survey") of the Property prepared by a surveyor licensed to practice in the State of Florida and satisfactory to Purchaser, duly certified to Purchaser, Purchaser's attorney, and to the Title Insurer. The Survey shall show the Property, adjoining streets and roads, including the points of ingress and egress thereto, and shall set forth the exact location of all easements on and upon the Property, together with all N rights-of-way and easements relating to the Property, and shall further reflect and certify there are no encroachments either way with respect to the Property. In the event the Survey shows any condition which shall render Seller's fee simple title other than good, marketable and insurable, including, but not limited to, any encroachments, overlaps, gores, gaps, strips or hiatuses (collectively, "Survey Defects"), Purchaser, within ten (10) days after receipt of the Survey, but a in no event later than the expiration of the Inspection Period, may deliver to Seller written notice of those Survey Defects to which it objects. If Purchaser fails to deliver to Seller written notice of Purchaser's objections to any Survey Defects within such period, then Purchaser shall be E deemed to have waived any right to such an objection and the Survey Defects shall thereafter be deemed Permitted Exceptions. In the event that Purchaser shall so object to a Survey Defect, then it shall be handled in the same manner as that of a Title Objection which is timely objected to as set forth in Section 5(B) above. 7. CLOSING: If all the conditions hereof are met the delivery of the deed, documents, money and other acts necessary to accomplish the transactions provided for in this Agreement (the "Closing") shall take place on the later of(i) thirty (30) days following the end of the Inspection Period, or (ii) thirty (30) days after Seller has completed its new library and has vacated the Property, 4 Packet Pg. 2322 0.3.a unless extended in writing by the parties (the "Closing Date"). The Closing shall take place in Monroe County, Florida, or at such other location as may be agreed upon by the parties. The Closing on the purchase and sale of the Property is contingent upon a simultaneous closing on the purchase and sale of the Exchange Property. 8. CLOSING COSTS AND ADJUSTMENTS: At Closing, the following items shall be borne, adjusted, prorated or assumed by or between Seller and Purchaser: y (A) Adjustments and Pro-rations: (i) Real Estate Taxes: Seller is a tax exempt entity and there will be no tax pro ration required in the purchase year. (ii) Certified/Pending Liens: Certified, confirmed and ratified governmental liens as of the Closing Date shall be paid by Seller, provided, however, if there are any improvement district or special taxing district liens or similar assessments which encumber the Property, Purchaser shall assume the obligation to pay any future installments of such liens or assessments affecting the Property which accrue after the Closing Date. Any such liens or N assessments for the current payable period shall be prorated up to the Closing Date. Pending liens as of the Closing Date shall be assumed by Purchaser, provided, however, that where the Ni improvement has been substantially completed as of the Closing Date, such pending lien shall be considered as certified, confirmed or ratified and Seller shall, at Closing, be charged an amount E equal to the last estimate by the public body, of the assessment for the improvement. a (B) Closing Costs: (i) Seller shall pay the following costs and expenses in connection y with the Closing: all fees and costs incurred if Seller elects to clear title to the Property, the cost of lien searches, Seller's attorneys' fees, the cost of obtaining and recording any corrective instruments, and the costs of discharging any monetary liens on the Property. (ii) Purchaser shall pay the following costs and expenses in connection with the Closing: documentary stamps on the Deed, the cost of the Purchaser's inspections of the , Property, the cost of title searches and title insurance,the cost of recording the Deed, Purchaser's attorneys' fees, the cost of the Survey, if ordered by Purchaser, and the cost of environmental surveys and soils tests of the Property. 9. CLOSING DOCUMENTS: (A) Seller's Documents at Closing: At Closing, Seller shall execute and/or deliver to Purchaser the following: (i) A Statutory Quit Claim Deed pursuant to Florida Statute Section 125.411. 5 Packet Pg. 2323 0.3.a (ii) Four (4) executed Closing Statements itemizing the dollar amounts of all financial matters related to the Closing, including the adjustments and pro-rations provided herein; (iii) A certified copy of a Seller resolution authorizing the execution of this Agreement by the Seller, authorizing the sale of the Property to the Purchaser as provided herein, and providing the names and titles of the individuals authorized to execute and deliver the Statutory Quit Claim Deed and other required closing documents; (iv) Seller's executed title affidavit, including mechanic's lien, possession and gap provisions, in form sufficient to enable the Title Insurer to delete the standard exceptions (e.g. the Gap, construction liens and parties in possession) from Purchaser's owner's title insurance policy; _ (v) Such corrective instruments as may be required to satisfy or cure any Title Objections Seller has elected to satisfy or cure; (vi) An Assignment of Rights and Permits (including zoning and W development rights) relating to the Property; and N N (vii) Any other documents reasonably required under the Title Insurance Commitment or otherwise necessary or advisable to consummate the N, transactions contemplated hereby. (B) Purchaser's Documents at Closin At Closing, Purchaser shall execute and/or deliver to Seller the following: (i) Four(4) executed counterparts of the Closing Statement; (ii) Any other documents reasonably necessary or advisable to consummate the transaction contemplated hereby; and e (C) Concurrently with the delivery of the foregoing documents the parties shall execute and deliver the Closing documents for the Exchange Property, along with any consideration due in addition to the Exchange Property if applicable. 10. RADON GAS: In accordance with Section 404.056, Florida Statues, Seller hereby notifies Purchaser as follows. Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time; levels of radon that exceed federal and state guidelines have been W found in buildings in Florida; and additional information regarding radon and radon testing may be obtained from the Miami-Dade County health department. 11. FAILURE OF PERFORMANCE: If Seller fails to perform this Agreement within the times specified, Purchaser may elect to terminate this Agreement and the Exchange Agreement. The waiver by one party of any condition or of any subsequent breach of the same or any other term, covenant, or condition herein contained shall not be deemed to be a waiver of Packet Pg. 2324 0.3.a any other condition or of any subsequent breach of the same or any other term, covenant or condition contained herein. 12. ATTORNEY'S FEES: Should Seller and/or Purchaser employ an attorney or attorneys to enforce any of the provisions hereof, or to protect its interest or enforce its rights in any matter arising under this Agreement, the party prevailing shall be entitled to payment by the other party of all reasonable costs, charges and expenses, including reasonable attorneys' fees and costs in all pre-trial, trial and appellate levels, expended or incurred in connection therewith by the prevailing party. y 13. AFFIRMATIVE COVENANTS OF SELLER: (A) From and after the Effective Date, Seller will (i) refrain from creating or incurring any mortgage, lien, pledge or other encumbrances in any way affecting the Property or any portion thereof; (ii) observe all laws, ordinances, regulation, and restrictions affecting the Property or any portion thereof and its use until the Closing; (iii) refrain from entering into any y leases, easements, covenants or other agreements affecting the Property; and (iv) neither transfer nor remove any fixtures or equipment belonging to the Property, except for purposes of CO W replacement thereof, in which cases such replacements shall be promptly installed prior to N Closing and shall be comparable in quality to the items being replaced. (B) Prior to the Closing Date Seller shall cause all leases and other occupancy N, agreements affecting the Property to be terminated and shall cause all books and furnishings within the Property to be removed. The Property shall be delivered to Purchaser at Closing free E CD of any tenants or occupants and in broom clean condition. 14. REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE PROPERTY: Seller hereby represents and warrants to Purchaser that, as of the date hereof: (A) No Condemnation, Pending or Threatened: Seller has no knowledge of any pending or threatened condemnation or similar proceeding affecting the Property or any portion thereof. (B) Seller's Authority: Seller has, full right, power and authority to perform this Agreement and doing so will not result in breach of, or constitute any default under, or result , in the imposition of, any lien or encumbrance upon the Property or any portion thereof under any agreement or other instrument to which Seller is a party or by which Seller or the Property may be bound. The execution and delivery of this Agreement by Seller, and the consummation by Seller of the transactions contemplated hereby or the performance by Seller of its obligations does not require consent or approval of any governmental authority. Seller is not a "foreign E person" as defined in Section 1445 of the Internal Revenue Code of 1954, as amended. (C) Pending Litigation: Seller has not received notice of any legal actions, suits, or other legal or administrative proceedings pending or threatened, which affect or could affect the Property or any portion thereof, and Seller is not aware of any facts which might result in any such action, suit or other proceedings. 7 Packet Pg. 2325 0.3.a (D) Possession: There are no leases, subleases, licenses or occupancy agreements (written or verbal) which affect or relate to the Property. (E) Compliance with Laws: To Seller's knowledge, Seller has not received any notice that the Property and/or the present use thereof is not in compliance with applicable laws, ordinances, regulations, statutes, rules and restrictions pertaining to and affecting the Property and to the best of Seller's knowledge, there are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against or involving Seller which could have a material or adverse effect on the Property y or the use, condition or operation thereof. (F) No Violation of Zoning Laws: To Seller's knowledge, no zoning, building or similar law, ordinance or regulation is, as of the Effective Date, being violated by the continued maintenance, operation or use of any buildings, improvements or structures presently erected on the Property. To Seller's knowledge, there are no uncured violations of federal, state or municipal laws (including, without limitation, sales tax laws, ordinances, orders, regulations or requirements)affecting any portion of the Property. (G) No Hazardous Materials: To Seller's knowledge, the Property is not contaminated with any chemical, material or substance to which exposure is prohibited, limited N or regulated by any federal, state, county, local or regional authority or which is known to pose a hazard to health and safety; and Seller has no knowledge that the Property has ever been used for N� a landfill, dump site, underground improvements, storage of hazardous or regulated substances, or by a manufacturer of any product or for any other industrial. (H) Underlying Structure: Seller has no knowledge of sinkholes, caverns, faults, conduits, voids, mines, or other geological anomalies which could affect the development of the Property. (I) Special Assessments: There are no special assessments affecting the Property. Seller agrees that the foregoing representations and warranties shall survive the Closing for a period of one year. a 15. BROKERAGE: Seller and Purchaser represent and warrant to each other that no brokers have been engaged to represent them in connection with the negotiations of this Agreement and/or the consummation of the purchase and sale contemplated hereby. Seller and Purchaser each hereby agrees to indemnify and hold the other harmless from all loss, cost, damage or expense (including reasonable attorneys' fees) incurred by the other as a result of any claim arising out of the acts of the indemnifying party (or others on its behalf) for a commission, finder's fee or similar compensation made by any broker, finder or any party who claims to have dealt with such party. The representations, warranties and indemnities contained in this Section shall survive the Closing. 16. RISK OF LOSS: In the event of damage or destruction to the Property or any portion thereof prior to the Closing, Purchaser and Seller shall consummate this Agreement, 8 Packet Pg. 2326 0.3.a provided that Seller shall assign to Purchaser its right under all insurance policies covering such damage or destruction. 17. NOTICES: Any and all notices, requests, demands, consents, approvals or other communications hereunder shall be in writing and sent addressed to the parties as follows: As to Seller: Monroe County, Florida Kevin G. Wilson ACA_ 1100 Simonton St Suite 206 Key West, FL 33040 Tel: (305) 292 4529 Email:Wilson-Kevin@MonroeCounty-FL.Gov With a copy to: Adele V. Stones Oropeza,Stones& Cardenas 221 Simonton Street Key West, FL 33040 Tel: (305) 849 2352 Email:Ginny@keyslaw.net i As to Purchaser: Kathleen S. Moorman, Vice President Baptist Health Enterprises, Inc. CD 6855 Red Road, Suite 600 Coral Gables, Florida 33143 Tel: (786) 662-7386 Email: kathleenmo@baptisthealth.net And with a copy to: Kyle R. Saxon, Esq. Saxon& Fink, LLP 2121 Ponce De Leon Boulevard, Suite 740 Coral Gables, Florida 33134 y Tel: 305-371-9575 Email: kylesaxon@saxonfink.com Any such notices shall be either(a) sent by certified mail, return receipt requested, in which case notice shall be deemed delivered three (3) business days after deposit, postage prepaid in the U.S. mail, or (b) sent by a nationally recognized overnight courier, in which case notice shall be deemed delivered one (1) business day after being deposited during business hours with such courier, or (c) sent on a business day by email followed by a copy sent first class mail, postage prepaid, deposited in the U.S. Mail on the same day that the email is sent, in which case notice shall be deemed delivered on the day the email is sent. The above addresses may be changed by written notice to the other party; provided, however, that no notice of a change of address shall be effective until actual receipt of such notice. 18. INTERPRETATIONS: This Agreement shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been 9 Packet Pg. 2327 0.3.a prepared by counsel for one of the parties, it being recognized that both Seller and Purchaser have contributed to the preparation of this Agreement. 19. CAPTIONS AND HEADINGS: Captions and Article headings contained in this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Agreement nor the intent of any provision hereof. 20. NO WAIVER: No waiver of any provision of this Agreement shall be effective unless it is in writing, signed by the party against whom it is asserted and any such written y waiver shall only be applicable to the specific instance to which it related and shall not be deemed to be a continuing or future waiver. 21. COUNTERPARTS: This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement. An electronic or PDF signature of an executed counterpart shall have the same validity as an original signature. y 22. BINDING EFFECT: This Agreement shall inure to the benefit of and shall be W binding upon the parties hereto and their respective successors and permitted assigns. N N 23. GOVERNING LAW: This Agreement shall be construed and interpreted according to the internal laws of the State of Florida. Ni 24. INTERPRETATION: Wherever used in this Agreement, "gam' means "any • s and all"; "include" and "including' each are without imitation; may not and other negative forms of the verb "m ' each are prohibitory; and "will", "must", and "should" each are mandatory. Unless this Agreement expressly or necessarily requires otherwise (i) any time period measured in "days" (and not "business days') means consecutive calendar days, except that the expiration of any time period measured in days that expires on a Saturday, Sunday or N legal holiday automatically will be extended to the next day so that it is not a Saturday, Sunday or legal holiday; (ii) any action is at the sole expense of the party required to take it; and (iii)the scope of any indemnity includes any costs and expenses, including reasonable attorneys' fees incurred through all appellate levels, whether suit be instituted or not, incurred in defending any indemnified claim, or in enforcing the indemnity, or both. a 25. NO RECORDING: Neither Purchaser nor Seller shall record this Agreement or any memorandum thereof. 26. TIME OF THE ESSENCE: Purchaser and Seller mutually agree that time is of the essence throughout the term of this Agreement and every provision hereof in which time is E an element. No extension of time for performance of any obligations or acts shall be deemed an extension of time for performance of any other obligations or acts. If any date for performance of any terms, conditions or provisions hereof shall fall on a Saturday, Sunday or legal holiday, then the time of such performance shall be extended to the next business day thereafter. 27. ENTIRE AGREEMENT: This Agreement and the Exhibits attached hereto contain the entire agreement between the parties. There are no promises, agreements, conditions, undertakings, warranties, or representations, oral or written, express or implied, 10 Packet Pg. 2328 0.3.a between the parties other than as herein set forth. No amendment or modification of this Agreement shall be valid unless the same is in writing and signed by the parties hereto. No waiver of any of the provisions of this Agreement or any other agreement referred to herein shall be valid unless in writing and signed by the party against whom enforcement is sought. 28. POST CLOSING PERFORMANCE: Seller and Purchaser agree to cooperate with each other after the Closing and to execute and deliver any documents reasonably necessary to effect the terms and conditions of this Agreement, including permitting and other approvals. 29. WAIVER OF TRIAL BY JURY: Seller and Purchaser, to the extent they may legally do so, hereby expressly waive any right to trial by jury of any claim, demand, action, cause of action, or proceeding arising under or with respect to this Agreement, or in any way connected with, or related to, or incidental to, the dealings of the parties hereto with respect to this Agreement or the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and irrespective of whether sounding in contract, tort, or otherwise. To the n extent they may legally do so, Seller and Purchaser hereby agree that any such claim, demand, action, cause of action, or proceeding shall be decided by a court trial without a jury and that any party hereto may file an original counterpart or a copy of this Section with any court as written evidence to the consent of the other party or parties hereto to waiver of its or their right to trial by jury. N i 30. TIME FOR ACCEPTANCE: This Agreement, when duly executed by all of the parties hereto, shall be binding upon the parties hereto, their heirs, representatives, successors and assigns. In the event this Agreement and the Exchange Agreement have not been duly and fully executed by Purchaser and Seller and duly executed counterparts delivered to Purchaser and Seller by the tenth (10t') business day following an Affirmative Vote of the Board of County Commissioners approving the Agreement and the Exchange Agreement, then the offers herewith made by Purchaser and Seller shall terminate and this Agreement and the Exchange Agreement shall be null and void. 31. APPROVAL OF BOARD OF TRUSTEES OF BAPTIST HEALTH SOUTH FLORIDA, INC.: Notwithstanding anything to the contrary contained herein, this Agreement y and the Exchange Agreement are subject to and contingent upon approval by the Board of Trustees of Baptist Health South Florida, Inc. If the Board of Trustees of Baptist Health South Florida, Inc. does not approve the purchase of the Property prior to 5:00 p.m. on the last day of the Inspection Period (or such later date as may be agreed to in writing by the parties hereto), E then this Agreement and the Exchange Agreement shall be deemed to be terminated and of no further force or effect. Purchaser shall promptly notify Seller of the action taken by the Board of Trustees regarding this Agreement and the Exchange Agreement. SIGNATURES ARE ON THE NEXT PAGE ll Packet Pg. 2329 0.3.a IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, as of the day and year written below their respective signatures. SELLER: MONROE COUNTY, a political subdivision of the State of Florida By: Name: Title: Dated: , 2021 PURCHASER: N FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation By: Rick FreebuijTCfti4 Execut er Dated: January 2021 y MONROE C U ATT APPR I~RT S.SHIWNOER.JR. 01 1 . Packet Pg. 2330 0.3.a Execution Copy EXHIBIT"A" LEGAL DESCRIPTION OF THE PROPERTY A parcel of land lying in Section 9, Township 66 South, Range 32 East, Marathon, Monroe County, State of Florida, and being more particularly described by metes and bounds as follows, to-wit: Commencing at the intersection of the Northeasterly right of way line of 30th Street, also known as Marathon Avenue, according to the recorded plat of Sombrero Subdivision No. 6, as recorded in Plat book 2 at page 93 of the public records of Monroe county, and the Southeasterly right of way line of U.S. Highway No. 1, also known as Overseas Highway, said point also being y the Northwest corner of lot B1, according to said plat of Sombrero Subdivision No. 6, thence N73°53'03"E along the Southeasterly right of way line of said U.S. Highway No. 1 for a distance of 352.00 feet to the Point of Beginning of the parcel of land hereinafter described; thence N73°53'03"E continuing along the said Southeasterly right of way line of U.S. Highway No. 1 for a distance of 108.00 feet to the Northwest comer of the lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S 16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book y 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 400.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page -- 1081 of the Public Records of Monroe County, Florida; thence N73°53'03"E along the N Southeasterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 100.00 feet to the Southeast corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S 16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 115.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S73°53'03"W for a distance of 197.00 feet to a point; thence N16°06'57"W for a distance of 160.50 feet to a point; thence N61°06'57"W for a distance of N 28.28 feet to a point; thence N16°06'57"W for a distance of 137.00 feet to a point; thence N73°53'03"E for a distance of 20.00 feet to a point; thence N16°06'57"W for a distance of 98.00 feet to a point; thence S73°53'03"W for distance of 13.50 feet to a point; thence N16°06'57"W for a distance of 67.50 feet to a point; thence N73°53'03"E for a distance of 2.50 feet to a point; thence N16°06'57"W for a distance of 32.00 feet back to the Point of Beginning. Said parcel of land contains 65,658.25 Square Feet or 1.51 Acres, more or less. Packet Pg. 2331 0.3.a EXHIBIT "B" LEGAL DESCRIPTION OF THE EXCHANGE PROPERTY Lots A-4, B-4 and D-14, of SOMBRERO SUBDIVISION NO. b, according to the Plat thereof as recorded in Plat Book 2, Page 43, of the Public Records of Monroe County, Florida. y Parcel ID#00321730-000000 N N N 14 Packet Pg. 2332 0.3.a Exhibit 2 Purchase and Sale Agreement Conveying Fishermen's Property to County N N N 5 Packet Pg. 2333 0.3.a Execution Copy AGREEMENT FOR PURCHASE AND SALE THIS AGREEMENT FOR PURCHASE AND SALE (the "Agreement") is made as of the _ day of 2021 by and between MONROE COUNTY, a political subdivision of the State of Florida, having it's address at 1100 Simonton Street, Suite 2- 216, Key West, Florida 33040 (hereinafter called "Purchaser"), and FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation, having its address at 6855 Red Road, Suite 600, Coral Gables, Florida 33143 (hereinafter called"Seller"). WITNESSETH: WHEREAS, Seller is the owner of that certain parcel of land comprising 0.34+/- acres, located at 2855 Overseas Highway, Marathon, Florida 33050, situated, lying and being in Monroe County, Florida, and legally described in Exhibit "A" attached hereto, including the land and all improvements thereto and thereon, all fixtures and equipment affixed or attached thereto, and all easements, rights of way, privileges, appurtenances and other rights pertaining thereto(hereinafter collectively referred to as the "Property"); and WHEREAS, Seller is desirous of selling and conveying and Purchaser is desirous of acquiring Seller's interest in the Property. NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Seller agrees to sell and convey and Purchaser agrees to acquire Seller's interest in the Property upon E the terms and conditions hereinafter set forth. Q 2 1. SALE-PURCHASE: Seller hereby agrees to sell and convey to Purchaser its fee simple interest in and to the Property, and Purchaser hereby agrees to purchase Seller's fee simple interest in and to the Property, with such conveyance to be subject to and in accordance with the terms, provisions, covenants and conditions more particularly set forth in this Agreement. Seller also agrees to convey to Purchaser at Closing all of Seller's right, title and interest in and to all governmental orders, resolutions, grants, site plans or approved plats, zoning approvals, development rights, resolutions, permits and rights accruing to Seller as a result of its ownership of the Property, and , the operation of same, contract rights, easements, covenants, privileges, servitudes, appurtenances, strips of land and roadways adjoining the Property, and other rights relating to the Property(collectively the "Rights and Permits"). 2. PURCHASE PRICE: E The purchase price ("Purchase Price") for the Property shall be One Million Four Hundred Sixty Five Thousand and No/100 Dollars ($1,465,000.00), payable by Purchaser to Seller by conveyance to Seller of that certain parcel of real property located at 3251 Overseas Highway, Marathon, Florida 33050, and legally described in Exhibit "B" attached hereto (the "Exchange Property"). The parties agree that for the purposes of this transaction that both the Property and the Exchange Property are equal in value and that each has a fair market value of $1,465,000.00. Concurrently with the execution of this Agreement, Purchaser and Seller have Packet Pg. 2334 0.3.a executed an Agreement for Purchase and Sale of the Exchange Property (the "Exchange Agreement"). At Closing, Seller shall deliver the documents described in Paragraph 9 below for conveyance of the Property to Purchaser and Purchaser shall execute similar documents for conveyance of the Exchange Property to Seller. 3. "AS IS" CONVEYANCE WITH INSPECTION PERIOD: Purchaser is purchasing the Property in its "as-is" physical condition, specifically and expressly without any warranties, representations or guarantees, either express or implied, of any kind, nature, or type whatsoever from or on behalf of Seller, except those as otherwise expressly set forth in this y Agreement. Purchaser shall have until 5:00 p.m. on the one hundred twentieth (1201") day following the Effective Date, within which to conduct and complete its inspections and evaluations of the Property and the records relating to the operation thereof (the "Inspection Period"), which may include, but are not limited to, Phase I and Phase II environmental surveys and soil tests. Seller shall provide Purchaser and its employees and agents access to the Property and to any contracts, operating expenses and such other information as the Purchaser may reasonably request regarding the Property and the operation thereof. Seller agrees to give y Purchaser and Purchaser's employees and agents reasonable access to the Property for the purposes of conducting such inspections and evaluations as the Purchaser deems necessary. If Purchaser provides Seller with written notice that Purchaser is not satisfied with the Property prior to 5:00 P.M. on the last day of the Inspection Period (the "Termination Notice"), this Agreement shall be deemed to be terminated. To be effective written notice of termination must be sent to Seller in accordance with the provisions of Section 18 below prior to the end of the Inspection Period. If Purchaser terminates this Agreement, it shall, at its cost, repair any damage to the Property resulting from its inspections and evaluations. Purchaser and its agents shall keep E the information obtained as a part of the due diligence confidential to the extent permitted by law. Purchaser shall indemnify, defend and hold Seller harmless from and against any and all action, demands, liabilities, loss, damage or expense, including, but not limited to, construction liens and attorneys' fees, arising from or related to any incident, occurrence, damage, personal N injury or property damage resulting from Purchaser or Purchaser's agents, contractors, employees, or anyone on Purchaser's behalf, performing Purchaser's examinations, inspections, measurements and testing of and on the Property. Purchaser agrees to give Seller prior reasonable advance notice of any inspections of the Property. Purchaser's indemnity and hold harmless pursuant to this Section shall survive the termination or expiration of this Agreement by Closing or otherwise. Within ten (10) days following the Effective Date, Seller will provide Purchaser with copies of all environmental surveys, soil tests and other studies in the possession of Seller or to which Seller has access, if any, which relate to the Property, and copies of any service contracts, records, documents and notices relating to the Property in Seller's possession or to which Seller has access. Seller acknowledges Purchaser may desire to discuss or otherwise inquire about plans, documents, agreements and other records of various governmental entities, districts and utilities regarding the Property or otherwise impacting, restricting, or affecting its use or value ("Governmental Records")with various governmental entities and utilities. In this regard, Purchaser is permitted to contact all necessary third parties and discuss with such third parties the Governmental Records. In the event this Agreement is terminated the Exchange Agreement shall also terminate. 4. PERMITTED EXCEPTIONS: This sale is being made and Purchaser shall take title to the Property subject to the following (the"Permitted Exceptions"): 2 Packet Pg. 2335 0.3.a A. Taxes and assessments for the years 2021 and thereafter. B. Restrictions, easements, covenants, conditions, limitations and reservations of record, provided that this recital shall not operate to re-impose same. C. Zoning and applicable governmental ordinances. 5. TITLE: (A) Seller represents that it is the owner of the Property and that there is no limitation or restriction upon or against its right to enter into this Agreement and to convey the Property as herein provided. (B) Purchaser may, at its discretion and expense, order a commitment for title insurance (the "Title Insurance Commitment") from Chicago Title Insurance Company (the "Title Insurer"). Purchaser, at its own expense, upon recording of the deed conveying title to y the Property from Seller to Purchaser, may obtain an owner's policy of title insurance in the amount of the Purchase Price insuring Purchaser's title to the Property and, unless Purchaser W consents otherwise, subject only to those liens and encumbrances which shall be discharged by Seller at or before Closing and the Permitted Exceptions. Purchaser will cause a copy of the N Title Insurance Commitment to be delivered to Seller's attorney within three (3)business days of its receipt by Purchaser's attorney. Purchaser, within fifteen (15) days following the date on Ni which Purchaser receives the Title Insurance Commitment, shall deliver to Seller written notice of Purchaser's objections, if any, to any exceptions which render title to the Property unmarketable or unusable for Purchaser's intended uses (the "Title Objections"). If Purchaser fails to deliver such written notice or objection to Seller within such fifteen (15) day period, Purchaser shall be deemed to have waived its right to object. In the event that Purchaser shall provide Seller with any Title Objections, Seller shall promptly notify Purchaser following the date of Purchaser's notice of such objections that either (a) the Title Objection has been, or will y be at or prior to Closing, satisfied or cured by Seller, or (b) the Title Objection will not be satisfied or cured. If Seller notifies Purchaser that a Title Objection will not be satisfied or cured,then Purchaser may elect either: 0 (i) to terminate this Agreement and the Exchange Agreement; or ' (ii) to take title as it then is, subject to any Title Objection E which Seller has notified Purchaser it will not satisfy or cure, with the election of section (i) above or this section (ii) to be made within ten (10) business days following receipt of notice from Seller described in Section 5(B)(b) above, provided that if Purchaser fails to make an election within the said ten(10) business day period, Purchaser shall be deemed to have elected(i). If Purchaser receives notice from Seller as described in Section 5(B)(b) above, and makes a timely election of(ii)above, then: 3 Packet Pg. 2336 0.3.a (i) Purchaser shall be deemed to have agreed to accept title as it then is, subject to any Title Objection which Seller has notified Purchaser it will not satisfy or cure, without any reduction in the Purchase Price; (ii) all Title Objections described in Purchaser's notice under Section 5(B)(b) above not to be satisfied or cured will thenceforth be deemed Permitted Exceptions; and (iii) this Agreement shall remain in full force and effect. Seller shall have no affirmative obligation hereunder to expend any funds or incur any liabilities in order to cause any title exceptions to be removed from the Title Insurance Commitment, except that Seller shall pay, discharge or bond off any monetary lien or encumbrance affecting the Property at or prior to Closing, provided such lien or encumbrance is not created by Purchaser. Seller shall, prior to the Closing Date, obtain all resolutions and y approvals necessary for Seller to convey title to the Property to Purchaser, and to convey the Rights and Permits to Purchaser. 6. SURVEY: Purchaser may, at its sole cost and expense, order a survey (the"Survey") of the Property N, prepared by a surveyor licensed to practice in the State of Florida and satisfactory to Purchaser, duly certified to Purchaser, Purchaser's attorney, and to the Title Insurer. The Survey shall show E the Property, adjoining streets and roads, including the points of ingress and egress thereto, and a shall set forth the exact location of all easements on and upon the Property, together with all rights-of-way and easements relating to the Property, and shall further reflect and certify there are no encroachments either way with respect to the Property. In the event the Survey shows any condition which shall render Seller's fee simple title other than good, marketable and insurable, N including, but not limited to, any encroachments, overlaps, gores, gaps, strips or hiatuses (collectively, "Survey Defects"), Purchaser, within ten (10) days after receipt of the Survey, but in no event later than the expiration of the Inspection Period, may deliver to Seller written notice of those Survey Defects to which it objects. If Purchaser fails to deliver to Seller written notice y of Purchaser's objections to any Survey Defects within such period, then Purchaser shall be deemed to have waived any right to such an objection and the Survey Defects shall thereafter be deemed Permitted Exceptions. In the event that Purchaser shall so object to a Survey Defect, then it shall be handled in the same manner as that of a Title Objection which is timely objected E to as set forth in Section 5(B) above. 7. CLOSING: If all the conditions hereof are met the delivery of the deed, documents, money and other acts necessary to accomplish the transactions provided for in this Agreement (the "Closing") shall take place on the later of(i) thirty (30) days following the end of the Inspection Period, or (ii) thirty (30) days after Seller has completed its new library and has vacated the Exchange Property, unless extended in writing by the parties (the "Closing Date"). The Closing shall take place in Monroe County, Florida, or at such other location as may be agreed upon by the parties. 4 Packet Pg. 2337 0.3.a The Closing on the purchase and sale of the Property is contingent upon a simultaneous closing on the purchase and sale of the Exchange Property. 8. CLOSING COSTS AND ADJUSTMENTS: At Closing, the following items shall be borne, adjusted, prorated or assumed by or between Seller and Purchaser: (A) Adjustments and Pro-rations: (i) Real Estate Taxes: Taxes and assessments on the Property shall be prorated through the Closing Date based on the 2020 ad valorem tax bill(s), with due allowance made for the maximum allowable discount. Seller shall pay to Purchaser, at Closing, the amount of the prorated taxes for the period of January 1, 2021 to the Closing. (ii) Certified/Pending Liens: Certified, confirmed and ratified governmental liens as of the Closing Date and the outstanding balance on the wastewater special assessment shall be paid by Seller. Any such liens or assessments for the current payable period shall be prorated up to the Closing Date. Pending liens as of the Closing Date shall be assumed by Purchaser, provided, however, that where the improvement has been substantially completed as of the Closing Date, such pending lien shall be considered as certified, confirmed or ratified and Seller shall, at Closing, be charged an amount equal to the last estimate by the public body, N, of the assessment for the improvement. (B) Closing Costs: (i) Seller shall pay the following costs and expenses in connection with the Closing: documentary stamps on the deed, all fees and costs incurred if Seller elects to clear title to the Property, the cost of lien searches, Seller's attorneys' fees, the cost of obtaining and recording any corrective instruments, and the costs of discharging any monetary liens on the Property. (ii) Purchaser shall pay the following costs and expenses in connection with the Closing: the cost of the Purchaser's inspections of the Property, the cost of title searches and title insurance, the cost of recording the Deed, Purchaser's attorneys' fees, the cost of the Survey, if ordered by Purchaser, and the cost of environmental surveys and soils tests of the Property. 9. DECLARATION OF RESTRICTIONS. At Closing Purchaser and Seller shall execute a Declaration of Restrictions in the form of Exhibit"C" attached hereto (the "Declaration"), which shall be recorded in the Public Records of Monroe County, Florida,at the time of Closing. 10. CLOSING DOCUMENTS: (A) Seller's Documents at Closing: At Closing, Seller shall execute and/or deliver to Purchaser the following: 5 Packet Pg. 2338 0.3.a (i) A Special Warranty Deed (the "Deed"), subject only to the Permitted Exceptions; (ii) Four(4) executed Closing Statements itemizing the dollar amounts of all financial matters related to the Closing, including the adjustments and pro-rations provided herein; (iii) A FIRPTA Withholding Certificate or non-foreign certification satisfactory in form and substance to avoid transferee liability under Section 1445, Internal y Revenue Code of 1954, as amended; (iv) A certified copy of a Seller resolution authorizing the execution of this Agreement by the Seller, authorizing the sale of the Property to the Purchaser as provided herein,and providing the names and titles of the individuals authorized to execute and deliver the Special Warranty Deed and other required closing documents; (v) Seller's executed title affidavit, including mechanic's lien, possession and gap provisions, all in form sufficient to enable the Title Insurer to delete the W standard exceptions (e.g. the Gap, construction liens and parties in possession) from Purchaser's N owner's title insurance policy; N (vi) Such corrective instruments as may be required to satisfy or cure any Title Objections Seller has elected to satisfy or cure; (vii) An Assignment of Rights and Permits (including zoning and development rights) relating to the Property; and (viii) Any other documents reasonably required under the Title Insurance Commitment or otherwise necessary or advisable to consummate the transactions N contemplated hereby. (B) Purchaser's Documents at Closing: At Closing, Purchaser shall execute and/or deliver to Seller the following: (i) Four(4) executed counterparts of the Closing Statement; (ii) Any other documents reasonably necessary or advisable to consummate the transaction contemplated hereby. (C) Concurrently with the delivery of the foregoing documents the parties shall execute and deliver the Closing documents for the Exchange Property and Purchaser shall execute and deliver the Declaration to Seller for recording. 11. RADON GAS: In accordance with Section 404.056, Florida Statues, Seller hereby notifies Purchaser as follows: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time; levels of radon that exceed federal and state guidelines have been 6 Packet Pg. 2339 0.3.a found in buildings in Florida; and additional information regarding radon and radon testing may be obtained from the Miami-Dade County health department. 12. FAILURE OF PERFORMANCE: If Seller fails to perform this Agreement within the times specified, Purchaser may elect to terminate this Agreement and the Exchange Agreement. The waiver by one party of any condition or of any subsequent breach of the same or any other term, covenant, or condition herein contained shall not be deemed to be a waiver of any other condition or of any subsequent breach of the same or any other term, covenant or condition contained herein. 13. ATTORNEY'S FEES: Should Seller and/or Purchaser employ an attorney or attorneys to enforce any of the provisions hereof, or to protect its interest or enforce its rights in any matter arising under this Agreement, the party prevailing shall be entitled to payment by the other party of all reasonable costs, charges and expenses, including reasonable attorneys' fees and costs in all pre-trial, trial and appellate levels, expended or incurred in connection therewith by the prevailing party. y 14. AFFIRMATIVE COVENANTS OF SELLER: (A) From and after the Effective Date, Seller will (i) refrain from creating or N incurring any mortgage, lien, pledge or other encumbrances in any way affecting the Property or any portion thereof; (ii) observe all laws, ordinances, regulation, and restrictions affecting the Ni Property or any portion thereof and its use until the Closing; (iii) refrain from entering into any leases, easements, covenants or other agreements affecting the Property; and (iv) neither transfer nor remove any fixtures or equipment belonging to the Property, except for purposes of replacement thereof, in which cases such replacements shall be promptly installed prior to Closing and shall be comparable in quality to the items being replaced. (B) Prior to the Closing Date Seller shall cause all leases and other occupancy N agreements affecting the Property to be terminated and shall cause all furnishings within the Property to be removed. The Property shall be delivered to Purchaser at Closing free of any tenants or occupants and in broom clean condition. 0 15. REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE PROPERTY: Seller hereby represents and warrants to Purchaser that, as of the date hereof: (A) No Condemnation, Pending or Threatened: Seller has no knowledge of any pending or threatened condemnation or similar proceeding affecting the Property or any portion thereof. (B) Seller's Authority: Seller has, full right, power and authority to perform this Agreement and doing so will not result in breach of, or constitute any default under, or result in the imposition of, any lien or encumbrance upon the Property or any portion thereof under any agreement or other instrument to which Seller is a party or by which Seller or the Property may be bound. The execution and delivery of this Agreement by Seller, and the consummation by Seller of the transactions contemplated hereby or the performance by Seller of its obligations does not require consent or approval of any governmental authority. Seller is not a "foreign person"as defined in Section 1445 of the Internal Revenue Code of 1954, as amended. 7 Packet Pg. 2340 0.3.a (C) Pending Litigation: Seller has not received notice of any legal actions, suits, or other legal or administrative proceedings pending or threatened, which affect or could affect the Property or any portion thereof, and Seller is not aware of any facts which might result in any such action, suit or other proceedings. (D) Possession: There are no leases, subleases, licenses or occupancy agreements (written or verbal)which affect or relate to the Property. (E) Compliance with Laws: To Seller's knowledge, Seller has not received y any notice that the Property and/or the present use thereof is not in compliance with applicable laws, ordinances, regulations, statutes, rules and restrictions pertaining to and affecting the Property and to the best of Seller's knowledge, there are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against or involving Seller which could have a material or adverse effect on the Property or the use, condition or operation thereof. (F) No Violation of Zoning Laws: To Seller's knowledge, no zoning, building or similar law, ordinance or regulation is, as of the Effective Date, being violated by the CO W continued maintenance, operation or use of any buildings, improvements or structures presently erected on the Property. To Seller's knowledge, there are no uncured violations of federal, state or municipal laws (including, without limitation, sales tax laws, ordinances, orders, regulations or requirements) affecting any portion of the Property. N� (G) No Hazardous Materials: To Seller's knowledge, the Property is not E contaminated with any chemical, material or substance to which exposure is prohibited, limited or regulated by any federal, state, county, local or regional authority or which is known to pose a hazard to health and safety; and Seller has no knowledge that the Property has ever been used for a landfill, dump site, underground improvements, storage of hazardous or regulated substances, or by a manufacturer of any product or for any other industrial. (H) Underlying Structure: Seller has no knowledge of sinkholes, caverns, faults, conduits, voids, mines, or other geological anomalies which could affect the development of the Property. y (1) Special Assessments: There are no special assessments affecting the Property. 0 Seller agrees that the foregoing representations and warranties shall survive the Closing for a period of one year. lb. BROKERAGE: Seller and Purchaser represent and warrant to each other that no brokers have been engaged to represent them in connection with the negotiations of this Agreement and/or the consummation of the purchase and sale contemplated hereby. Seller and Purchaser each hereby agrees to indemnify and hold the other harmless from all loss, cost, damage or expense (including reasonable attorneys' fees) incurred by the other as a result of any claim arising out of the acts of the indemnifying party (or others on its behalf) for a commission, finder's fee or similar compensation made by any broker, finder or any party who claims to have Packet Pg. 2341 0.3.a dealt with such party. The representations, warranties and indemnities contained in this Section shall survive the Closing. 17. RISK OF LOSS: In the event of damage or destruction to the Property or any portion thereof prior to the Closing, Purchaser and Seller shall consummate this Agreement, provided that Seller shall assign to Purchaser its right under all insurance policies covering such damage or destruction. 18. CONDEMNATION OR EMINENT DOMAIN: In the event of any y condemnation or eminent domain proceedings for any public or quasi-public purposes at any time prior to Closing, resulting in a taking of any part or all of the Property, Purchaser shall have the option (i) to cancel this Agreement, in which event this Agreement shall be of no further force and effect; or (ii) to close the transaction contemplated by this Agreement, in which event the Purchase Price shall not be adjusted, provided, however, that Seller shall pay over or assign any condemnation or eminent domain award to Purchaser in respect to any condemnation or eminent domain proceeding subsequent to the Effective Date. Seller agrees not to enter into any settlement of any condemnation proceedings or eminent domain award without the prior written consent of Purchaser. NOTICES: Any and all notices, requests, demands, consents, approvals or other N communications hereunder shall be in writing and sent addressed to the parties as follows: N i As to Purchaser: Monroe County, Florida Kevin G. Wilson,ACA 1100 Simonton Street, Suite 206 Key West, Florida 33040 N Tel: (305)292-4529 Email: Wilson-Kevin@MonroeCountyFL.Gov Adele V. Stones With a copy to: Oropeza, Stones &Cardenas 221 Simonton Street Key West, Florida 33040 Tel: (305) 849-2352 E Email: Ginny@keyslaw.net As to Seller: Kathleen S. Moorman,Vice President Baptist Health Enterprises, Inc. 6855 Red Road, Suite 600 Coral Gables, Florida 33143 Tel: (786) 662-7386 Email: kathleenmo@baptisthealth.net 9 Packet Pg. 2342 0.3.a With a copy to: Kyle R. Saxon, Esq. Saxon& Fink, LLP 2121 Ponce De Leon Boulevard, Suite 740 Coral Gables, Florida 33134 Tel: 305-371-9575 Email: kylesaxon@saxonfink.com Any such notices shall be either(a) sent by certified mail, return receipt requested, in which case notice shall be deemed delivered three (3) business days after deposit, postage prepaid in the U.S. mail, or (b) sent by a nationally recognized overnight courier, in which case notice shall be deemed delivered one (1) business day after being deposited during business hours with such courier, or (c) sent on a business day by email followed by a copy sent first class mail, postage prepaid, deposited in the U.S. Mail on the same day that the email is sent, in which case notice shall be deemed delivered on the day the email is sent. The above addresses may be changed by written notice to the other party; provided, however, that no notice of a change of address shall be effective until actual receipt of such notice. 19. INTERPRETATIONS: This Agreement shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been N prepared by counsel for one of the parties, it being recognized that both Seller and Purchaser have contributed to the preparation of this Agreement. i N 20. CAPTIONS AND HEADINGS: Captions and Article headings contained in this Agreement are for convenience and reference only and in no way define, describe, extend or E limit the scope or intent of this Agreement nor the intent of any provision hereof. 2 21. NO WAIVER: No waiver of any provision of this Agreement shall be effective unless it is in writing, signed by the party against whom it is asserted and any such written waiver shall only be applicable to the specific instance to which it related and shall not be deemed to be a continuing or future waiver. e 22. COUNTERPARTS: This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which shall constitute y one and the same agreement. An electronic or PDF signature of an executed counterpart shall have the same validity as an original signature. 23. BINDING EFFECT: This Agreement shall inure to the benefit of and shall be E binding upon the parties hereto and their respective successors and permitted assigns. 24. GOVERNING LAW: This Agreement shall be construed and interpreted according to the internal laws of the State of Florida. 25. INTERPRETATION: Wherever used in this Agreement, "gny" means "any and all"; "include" and "including" each are without limitation; "may not" and other negative forms of the verb "may" each are prohibitory; and "will", "must", and "should" each are mandatory. Unless this Agreement expressly or necessarily requires otherwise (i) any time period measured in "days" (and not "business days") means consecutive calendar days, except that the expiration 10 Packet Pg. 2343 0.3.a of any time period measured in days that expires on a Saturday, Sunday or legal holiday automatically will be extended to the next day so that it is not a Saturday, Sunday or legal holiday; (ii) any action is at the sole expense of the party required to take it; and (iii)the scope of any indemnity includes any costs and expenses, including reasonable attorneys' fees incurred through all appellate levels, whether suit be instituted or not, incurred in defending any indemnified claim, or in enforcing the indemnity, or both. 26. NO RECORDING: Neither Purchaser nor Seller shall record this Agreement or any memorandum thereof. 27. TIME OF THE ESSENCE: Purchaser and Seller mutually agree that time is of the essence throughout the term of this Agreement and every provision hereof in which time is an element. No extension of time for performance of any obligations or acts shall be deemed an extension of time for performance of any other obligations or acts. If any date for performance of any terms, conditions or provisions hereof shall fall on a Saturday, Sunday or legal holiday, then the time of such performance shall be extended to the next business day thereafter. n 28. ENTIRE AGREEMENT: This Agreement and the Exhibits attached hereto contain the entire agreement between the parties. There are no promises, agreements, conditions, undertakings, warranties, or representations, oral or written, express or implied, between the parties other than as herein set forth. No amendment or modification of this Agreement shall be valid unless the same is in writing and signed by the parties hereto. No waiver of any of the N� provisions of this Agreement or any other agreement referred to herein shall be valid unless in writing and signed by the party against whom enforcement is sought. 29. POST CLOSING PERFORMANCE: Seller and Purchaser agree to cooperate with each other after the Closing and to execute and deliver any documents reasonably necessary to effect the terms and conditions of this Agreement. 30. WAIVER OF TRIAL BY JURY: Seller and Purchaser, to the extent they may legally do so, hereby expressly waive any right to trial by jury of any claim, demand, action, cause of action, or proceeding arising under or with respect to this Agreement, or in any way connected with, or related to, or incidental to, the dealings of the parties hereto with respect to y this Agreement or the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and irrespective of whether sounding in contract, tort, or otherwise. To the extent they may legally do so, Seller and Purchaser hereby agree that any such claim, demand, action, cause of action, or proceeding shall be decided by a court trial without a jury and that any E parry hereto may file an original counterpart or a copy of this Section with any court as written evidence to the consent of the other party or parties hereto to waiver of its or their right to trial by jury. 31. TIME FOR ACCEPTANCE: This Agreement, when duly executed by all of the parties hereto, shall be binding upon the parties hereto,their heirs, representatives, successors and assigns. In the event this Agreement and the Exchange Agreement have not been duly and fully executed by Purchaser and Seller and duly executed counterparts delivered to Purchaser and Seller by the tenth (10t') business day following an Affirmative Vote of the Board of County Commissioners approving the Agreement and the Exchange Agreement, then the offers herewith 11 Packet Pg. 2344 0.3.a made by Purchaser and Seller shall terminate and this Agreement and the Exchange Agreement shall be null and void. 32. APPROVAL OF BOARD OF TRUSTEES OF BAPTIST HEALTH SOUTH FLORIDA, INC.: Notwithstanding anything to the contrary contained herein, this Agreement and the Exchange Agreement are subject to and contingent upon approval by the Board of Trustees of Baptist Health South Florida, Inc. If the Board of Trustees of Baptist Health South Florida, Inc. does not approve the purchase of the Property prior to 5:00 p.m. on the last day of the Inspection Period (or such later date as may be agreed to in writing by the parties hereto), then this Agreement and the Exchange Agreement shall be deemed to be terminated and of no further force or effect. Seller shall promptly notify Purchaser of the action taken by the Board of Trustees regarding this Agreement and the Exchange Agreement. SIGNATURES ARE ON THE NEXT PAGE N N N W 12 Packet Pg. 2345 0.3.a IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, as of the day and year written below their respective signatures. SELLER: FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation 4. /117 By: Ri Free , ief Execut' `icer Dated: January , 2021 PURCHASER: �-- N MONROE COUNTY, a political subdivision of the State of Florida N By: Name: Title: Dated: , 2021 WNRee @ APPRO Rlay a V. G� A R.jot 1 Packet Pg. 2346 0.3.a Execution Copy EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY Lots A-4, B-4 and D-14, of SOMBRERO SUBDIVISION NO. G, according to the Plat thereof as recorded in Plat Book 2, Page 93, of the Public Records of Monroe County, Florida. Parcel ID# 00321730-000000 N N N i CD 2 Packet Pg. 2347 0.3.a EXHIBIT "B" LEGAL DESCRIPTION OF THE EXCHANGE PROPERTY A parcel of land lying in Section 9, Township 66 South, Range 32 East, Marathon, Monroe County, State of Florida, and being more particularly described by metes and bounds as follows, to-wit: Commencing at the intersection of the Northeasterly right of way line of 30th Street, also known as Marathon Avenue, according to the recorded plat of Sombrero Subdivision No. 6, as y recorded in Plat book 2 at page 93 of the public records of Monroe county, and the Southeasterly right of way line of U.S. Highway No. 1, also known as Overseas Highway, said point also being the Northwest corner of lot B1, according to said plat of Sombrero Subdivision No. 6, thence N73°53'03"E along the Southeasterly right of way line of said U.S. Highway No. 1 for a distance of 352.00 feet to the Point of Beginning of the parcel of land hereinafter described; thence r- N73°53'03"E continuing along the said Southeasterly right of way line of U.S. Highway No. 1 for a distance of 108.00 feet to the Northwest comer of the lands described in Official Records y Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 400.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence N73°53'03"E along the Southeasterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 100.00 feet to the Southeast corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S 16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 115.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of N Monroe County, Florida; thence S73°53'03"W for a distance of 197.00 feet to a point; thence N16°06'57"W for a distance of 160.50 feet to a point; thence N61°06'57"W for a distance of 28.28 feet to a point; thence N 16°06'57"W for a distance of 137.00 feet to a point; thence N73°53'03"E for a distance of 20.00 feet to a point; thence N16°06'57"W for a distance of 98.00 feet to a point; thence S73°53'03"W for distance of 13.50 feet to a point; thence N16°06'57"W for a distance of 67.50 feet to a point; thence N73°53'03"E for a distance of 2.50 feet to a point; thence N16'06'57"W for a distance of 32.00 feet back to the Point of Beginning. Said parcel of land contains 65,658.25 Square Feet or 1.51 Acres, more or less. 15 Packet Pg. 2348 0.3.a EXHIBIT "C" DECLARATION OF RESTRICTONS This instrument was prepared by: Name: Kyle R. Saxon, Esq. Address: Saxon&Fink, LLP 2121 Ponce De Leon Blvd., Suite 740 Coral Gables, Florida 33134 DECLARATION OF RESTRICTIONS THIS DECLARATION OF RESTRICTIONS (the "Declaration") is made and entered into as of the day of , 2021, by FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation (hereafter referred to as "Fishermen's") and n MONROE COUNTY, a political subdivision of the State of Florida (hereafter referred to as "Monroe County"). N N WITNESSETH THAT: N i WHEREAS, Fishermen's is the owner of the developed real property legally described in Exhibit"A" attached hereto (the"Property"), and E WHEREAS, Fishermen's has agreed to sell the Property to Monroe County, and WHEREAS, a condition of Fishermen's selling the Property to Monroe County is the N execution and recording of this Declaration, NOW, THEREFORE, in consideration of Fishermen's selling the Property to Monroe County and other valuable considerations, the receipt and sufficiency of which are hereby acknowledged,the parties agree as follows: 1. The foregoing recitals are true, correct and are incorporated herein by this reference as E if set forth in their entirety. 2. Neither Monroe County nor any successor owner of the Property shall develop or utilize the Property for medical offices or medical related uses, including, but not limited to a day hospital or short-term hospital, an outpatient or urgent care facility, a free standing emergency department, a dedicated emergency department, an ambulatory surgery facility or other type of facility that provides outpatient surgery, or an endoscopy facility (collectively "Medical Uses"), or permit any tenant, lessee or assignee to utilize the Property for Medical Uses. 16 Packet Pg. 2349 O.3.a 3. The limitations, covenants and restrictions contained in this Declaration shall be for the benefit Fishermen's. This Declaration shall be recorded in the Public Records of Monroe County, Florida, shall constitute a covenant running with the land and shall remain in full force and effect and be binding on the owners of the Property until such time as this Declaration is modified or terminated. 4. This Declaration shall be binding on the owners on the Property for a period of fifteen (15) years from the date this Declaration is recorded in the Public Records of Monroe County, Florida, after which time this Declaration shall terminate and be of no further force or effect. 5. Fishermen's, and its successor, if applicable, shall have the right to enforce the terms and conditions of this Declaration, at law or in equity, to prevent the occurrence or continuance of any violation of any provision of this Declaration. In the event enforcement of the terms of this Declaration becomes necessary, the party violating the terms or conditions of this Declaration shall be liable to Fishermen's or its successor for all costs and fees incurred by Fishermen's or its N successor in enforcing the terms of this Declaration, including reasonable attorneys' fees at the trial and appellate levels. 6. This Declaration may be modified or amended only upon written agreement executed by Fishermen's and Monroe County, or their successors, if applicable. 7. The invalidation of any one of the limitations, covenants or restrictions contained herein shall not affect or invalidate any of the remaining limitations, covenants and restrictions, which shall remain in full force and effect. 8. This Declaration shall not restrict Monroe County or any successor owner of the Property from selling, assigning or conveying its interest in the Property or placing a mortgage on the Property. ' 9. The failure of Fishermen's, or its successor, if applicable,to insist upon strict performance of any of the terms or conditions of this Declaration shall not be deemed to be a waiver of any rights that Fishermen's, or its successor, if applicable, may have hereunder or at law or equity E and shall not be deemed a waiver of any subsequent breach or violation. 10. This Declaration shall be binding on Fishermen's and Monroe County and their respective successors and assigns and upon any successor owners of the Property. 1 Packet Pg. 2350 0.3.a 11. The invalidation of any provision of this Declaration by judgment or court order shall in no way affect any other provisions of this Declaration. 12. Nothing herein contained shall be deemed to be a gift or dedication of any portion of the Property to the general public or for the general public or for any public purpose whatsoever. 13. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida. Venue for any action arising out of, or in any way connected with this Agreement, shall be in the Circuit Court in Monroe County, Florida. IN 'WITNESS WHEREOF, the parties hereto have caused this Declaration to be executed = by their authorized representatives as of the day and year first above written (Signatures are on the next pages) N N i 1 Packet Pg. 2351 0.3.a Signed, sealed and delivered In the presence of: MONROE COUNTY, a political subdivision of the State of Florida Name: Name: By: Name: Title: _ STATE OF FLORIDA COUNTY OF MONROE y The foregoing instrument was acknowledged before me by means of physical presence or online notarization, this day of 2021, by N as _ of MONROE COUNTY, a political subdivision of the State of Florida. He/she is personally known to me or has produced Ni as identification and did not take an oath. E Notary Public, State of Florida My Commission Expires: 19 Packet Pg. 2352 0.3.a Signed, sealed and delivered In the presence of: FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation Name: Name: By- Name: Title: STATE OF FLORIDA COUNTY OF MIAMI-DADE The foregoing instrument was acknowledged before me by means of physical presence or _ online notarization, this day of 2021, by -- the of FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation. He is personally known to me or has produced as identification and did not take an oath. Notary Public, State of Florida My Commission Expires: e 20 Packet Pg. 2353 0.3.a EXHIBIT "A" TO DECLARATION LEGAL DESCRIPTION OF THE PROPERTY Lots A-4, B-4 and D-14, of SOMBRERO SUBDIVISION NO. 6, according to the Plat thereof as recorded in Plat Book 2, Page 93, of the Public Records of Monroe County, Florida. Parcel ID# 00321730-000000 N N N i 2 Packet Pg. 2354 0.3.a Exhibit 3 Published Notice of Intent to Exchange County Property N N N 6 Packet Pg. 2355 0.3.a NOTICE OF INTENT TO EXCHANGE COUNTY PROPERTY NOTICE IS HEREBY GIVEN PURSUANT TO F.S. 125.37 that the Board of County Commissioners of Monroe County, Florida shall meet on January 20,2021, at 9:00 a.m. at the Marathon Government Center, 2798 Overseas Highway,Marathon,Florida,or as soon thereafter as may be heard to consider the adoption of a resolution authorizing the exchange of a portion of real property owned by Monroe County,Florida,located at 3251 Overseas Highway,Marathon,Florida (Parcel A)for real property owned by Fishermen's Health, Inc., located at 2855 Overseas Highway, Marathon, Florida (Parcel B). The purpose of the exchange is to provide for better health care and facilities for the citizens of Monroe County and to provide for additional office space for Constitutional Officers and County Departments. Due to COVID precautions, the public can participate in the meeting via the Zoom platform by: , Telephone: Dial(646) 518-9805 or(669) 900-6833. When prompted, enter the Webinar ID#913 1016 8691 followed by the 4 key, then *9 to be recognized by the host when item is called. Video Conference via Zoom link: htt ://iiionroecoLinty-fl.,00v/BoccMeetin(,Jan20. n When prompted, enter your email address and name. When the item is called, select the "Raised Hand" feature that appears at the bottom of the screen to be recognized by the host. cv To report problems with the broadcast or participation in the Zoom webinar,please call(305) 872-8831. COUNTY PROPERTY (Parcel A) N The County property is the current Marathon branch library, which has a street address of 3251 Overseas E Highway,Marathon,Florida and a portion of the parcel with ID number of 00102310-000000. The County ' intends to convey a portion of that property (Parcel A) that has a legal description as follows: A parcel of land lying in Section 9, Township 66 South, Range 32 East, Marathon, Monroe County, State of Florida, and being more particularly described by metes and bounds as follows, to-wit: Commencingat t the _ intersection of the Northeasterly right of way line of 30th Street, also known as Marathon Avenue, according to the recorded plat of Sombrero Subdivision No. 6, as recorded in Plat Book 2 at Page 93 of the Public Records of Monroe County, Florida and the Southeasterly right of way line of U.S. Hi..hhwwav No. 1, c also known as Overseas Highway, said point also being the Northwest corner of Lot B1, according to said plat of Sombrero Subdivision No. 6,thence N73°53'03"E along the Southeasterly right of way line of said U.S.Highway No. 1 for a distance of 352.00 feet to the Point of Beginning of the parcel of land hereinafter described, thence N73°53'03"E continuing along the said Southeasterly right of way line of U.S. Highway No. 1 for a distance of 108.00 feet to the Northwest corner of the lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, thence S 16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 400.00 feet to the Southwest corner of the said lands described in Official Records Book 2862,at Page 1081 of the Public Records of Monroe County Florida, thence N73°53'03"E along the Southeasterly boundary line of the said lands described in Official Records Book 2862,at Page 1081 of the Public Records of Monroe County,Florida,for a distance of 100.00 et feet to the Southeast corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, thence S16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County,Florida,for a distance of 115.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S73°53'03"W Packet Pg. 2356 O.3.a for a distance of 197.00 feet to a point,thence N16°06'57"W for a distance of 160.50 feet to a point, thence N61°06'57"W for a distance of 28.28 feet to a point, thence N16°06'57"W for a distance of 137.00 feet to a point, thence N73°53'03"E for a distance of 20.00 feet to a point, thence N16°06'57"W for a distance of 98.00 feet to a point, thence S73°53'03"W for a distance of 13.50 feet to a point, thence N16°06'57"W for a distance of 67.50 feet to a point, thence N73°53'03"E for a distance of 2.50 feet to a point, thence N16°06'57"W for a distance of 32.00 feet back to the Point of Beginning. Said parcel of land contains 65,658.25 Square Feet or 1.51 Acres, more or less. THE FISHERMEN'S HEALTH, INC. PROPERTY (Parcel B) The Fishermen's Health, Inc. property is located at 2855 Overseas Highway, Marathon, Florida and has a parcel ID number of 00321730-000000. The legal description is as follows: Lots A-4, B-4 and D-14, of SOMBRERO SUBDIVISION NO. 6, according to the Plat thereof as recorded in Plat Book 2, Page 93, of the Public Records of Monroe County, Florida. TERMS AND CONDITIONS OF PROPOSED EXCHANGE y The County and Fishermen's Health, Inc. agree to convey to each other title to their respective parcels by good and sufficient deeds, free and clear of all liens and encumbrances, except that Parcel B will be encumbered by a restrictive covenant prohibiting the County or any successors in interest from developing `44 cv or utilizing Parcel B for medical offices or medical related uses for a period of 15 years. Fishermen's Health, Inc. will pay off a sewer assessment lien on Parcel B in the amount of$7,981.82. Fishermen's i Health,Inc.will pay any and all documentary stamp fees required to be paid on both properties. The closing shall take place on the latter of thirty (30) days after the end of the 120 day inspection period or after the E County has completed its new library and vacated Parcel A,unless extended in writing by the parties. The closing on each property is contingent on simultaneous closing on the other property. Both properties are being conveyed"as is"with respect to physical condition. Copies of the proposed Resolution and supporting documentation may be obtained from the County N Attorney's Office, 1111 12' Street, Suite 408, Key West, FL 33040 or online at: htt ://monroecountvfl.i iiz2.coiiz/Citizens Detail Vleetin(,.asi)x?1Q=1131 c ADA ASSISTANCE: If you are a person with a disability who needs special accommodations to participate, contact (305) 292-4441, between the hours of 8:30a.m. — S:OOp.m.,prior to the scheduled meeting; ifyou are hearing or voice-impaired, call "711': Dated at Key West, Florida, this 30th day of December, 2020. KEVIN MADOK, Clerk of the Circuit Court and (SEAL) ex officio Clerk of the Board of County Commissioners E of Monroe County, Florida Publication Dates: Key West Citizen: Wed., 01/06/2021; 01/13/2021 Keys Weekly: Thur., 01/07/2021; 01/14/2021 News Barometer: Fri., 01/08/2021; 01/15/2021 Packet Pg. 2357 0.3.b A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA FINDING THAT A PORTION OF A COUNTY OWNED PARCEL ("PARCEL A") IN THE CITY OF MARATHON LOCATED AT 3251 OVERSEAS HIGHWAY WITH A y PARCEL ID NUMBER OF 00102310-000000 AND KNOWN LOCALLY AS THE MARATHON BRANCH LIBRARY WILL NO LONGER BE NEEDED FOR COUNTY PURPOSES AFTER COMPLETION OF A NEW BRANCH LIBRARY AT _ ANOTHER LOCATION AND THAT SWAPPING THAT PARCEL PURSUANT TO F.S. 125.37 FOR A PARCEL OWNED BY FISHERMEN'S HEALTH, INC. ("PARCEL B") LOCATED AT 2855 OVERSEAS HIGHWAY, MARATHON WITH A PARCEL ID NUMBER OF 00321730-000000 IS IN THE BEST INTERESTS OF MONROE COUNTY; APPROVING THAT EXCHANGE OF REAL PROPERTY; 2 AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS NECESSARY TO EFFECTUATE SAID EXCHANGE; AND PROVIDING FOR AN EFFECTIVE E DATE. WHEREAS, Monroe County ("the County"), a political subdivision of the State of Florida, pursuant to its home rule powers and F.S. 125.37, has the authority to determine that certain County property is no longer needed for County purposes and to exchange such property for other property which the County may desire to acquire for County purposes; and WHEREAS, the County currently owns in fee simple, a 1.51 acre parcel of land with a 7,210 square foot building that is located at 3251 Overseas Highway, Marathon, Florida, the current location of the Marathon branch library, which has a parcel ID number of 00102310-000000. The County intends to convey a portion of this property, hereinafter referred to as "Parcel A," as more fully described in the purchase and sale agreement incorporated into this Resolution as Exhibit 1; and WHEREAS, the County is currently finishing the construction of a new Marathon branch library building at another location; and WHEREAS, the Board finds that once construction of the new library building is completed in 2021, Parcel A will no longer be useful to the County; and y WHEREAS, the Fishermen's Health, Inc., a Florida not-for-profit corporation, owns in fee simple a 0.34 acre parcel of land with a 5,832 square foot building that is located at 2855 Overseas Highway, Marathon, Florida, which has a parcel ID number of 00321730-000000 (hereinafter "Parcel B"), more fully described in Exhibit 1 as Parcel B- and 1 Packet Pg. 2358 0.3.b WHEREAS, Fishermen's Health, Inc. operates Fishermen's Hospital, the only hospital located within the Middle Keys; and WHEREAS, Fishermen's Hospital is part of the Baptist Health Systems network; and y WHEREAS, as part of the renovation of Fishermen's Hospital made necessary after that facility was damaged by Hurricane Irma, Fishermen's Health, Inc. desires to expand its facilities to include an office building for physicians and other medical providers; and WHEREAS, Parcel A is adjacent to Fishermen's Hospital; and WHEREAS, Fishermen's Health Inc. has expressed a desire to acquire Parcel A as a site for an office building for physicians and other medical providers; and WHEREAS, the Board finds that a fully functional Fishermen's Hospital complete with an office building for physicians and other medical providers in support of the hospital is necessary for the health, safety, and welfare of residents of the Middle Keys; and E WHEREAS, the Board finds that exchanging Parcel A for Parcel B with Fishermen's Health, Inc. is therefore in the best interests of the County, the City of Marathon, and their residents; and WHEREAS, the Board finds that receipt of Parcel B will serve a public purpose by providing office space for Constitutional Officers that is convenient to the Marathon Branch Courthouse and the Marathon Government Center; and WHEREAS, F.S. 125.37 states that "[w]henever, in the opinion of the board of county commissioners, the county holds and possesses any real property, not needed for county purposes, and such property may be to the best interest of the county exchanged for other real property, which the county may desire to acquire for county purposes, the said board of county commissioners of any county is authorized and empowered to make such an exchange. Provided, however, before any exchange of property shall be effected, a notice, setting forth the terms and conditions of any such exchange of property, shall be first published, once a week for at least 2 weeks, in a newspaper of general circulation published in the county, before the adoption by the board of county commissioners of a resolution authorizing the exchange of properties[;]" and WHEREAS, in accordance with F.S. 125.37, the County published a Notice of Exchange of Real Property once a week for two (2) weeks in a newspaper of general circulation, which notice is attached as Exhibit 3 to this Resolution; and WHEREAS, the Board desires to approve and authorize the exchange of Parcel A for Parcel B; and 2 Packet Pg. 2359 0.3.b WHEREAS, County staff and representatives of Fishermen's Health, Inc. have negotiated and prepared two reciprocal purchase and sale agreements detailing the exchange described above, which attached as Exhibits 1 (Library to Fishermen's Health) and 2 (Fishermen's building to County); and NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA THAT: 1. The above recitals set forth above are true, accurate, and deemed incorporated herein as though set forth in full hereunder. 2. The Board authorizes the exchange of County Property identified above. 3. The Board approves of the instruments effectuating the exchange, which are incorporated into this Resolution as Exhibits 1 and 2, and authorizes the Mayor or, in the Mayor's absence, the Mayor Pro Tem to execute same. 2 4. The deeds shall be recorded in the Official Records of Monroe County, Florida. E 5. This resolution shall be effective upon adoption. Passed and Adopted by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of the Board held on the 20t" day of January, 2021. Mayor Michelle Coldiron Mayor Pro Tem David Rice Commissioner Craig Cates Commissioner Eddie Martinez Commissioner Mike Forster Attest: Kevin Madok, Clerk Board of County Commissioners of Monroe County, Florida 0 by: by: As Deputy Clerk Michelle Coldiron Mayor of Monroe County 0 Approved as to form and legal sufficiency by Monroe County Attorney Robert B. Shillinger for reliance by the Monroe County BOCC only. Digitally signed by Robert B. Robert B. Shillinger DN:Cn-Robert B.Shillinger, o-Monroe County BOCC, ou-Monroe County Attorney, ger- Shillinger Date@2 nrA7A5unt-fl.g OS00S 3 Packet Pg. 2360 0.3.b Exhibit 1 Purchase and Sale Agreement Conveying County Library Property to Fishermen's Inc. E 0 4 Packet Pg. 2361 0.3.b 1-3-21 Draft AGREEMENT FOR PURCHASE AND SALE THIS AGREEMENT FOR PURCHASE AND SALE (the "Agreement") is made as of the day of 2021 by and between FISHERMEN'S HEALTH, a INC., a Florida not-for-profit corporation, having its address at 6855 Red Road, Suite 600, Coral Gables, Florida 33143 (hereinafter called "Purchaser"), and MONROE COUNTY, a political subdivision of the State of Florida, having it's address at 1100 Simonton Street Suite 2-216, Key West, Florida 33040 (hereinafter called "Seller"). WITNESSETH: WHEREAS, Seller is the owner of that certain parcel of land comprising approximately 1.51 acres, located at 3251 Overseas Highway, Marathon, Florida 33050, situated, lying and being in Monroe County, Florida, and legally described in Exhibit "A" attached hereto, including the land and all improvements thereto and thereon, all fixtures and equipment affixed or attached thereto, and all easements, rights of way, privileges, appurtenances and other rights Z pertaining thereto (hereinafter collectively referred to as the "Property"); and WHEREAS, Seller is desirous of selling and conveying and Purchaser is desirous of E acquiring Seller's interest in the Property. NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Seller 0 agrees to sell and convey and Purchaser agrees to acquire Seller's interest in the Property upon the terms and conditions hereinafter set forth. .2 1. SALE-PURCHASE: Seller hereby agrees to sell and convey to Purchaser its fee simple interest in and to the Property, and Purchaser hereby agrees to purchase Seller's fee simple interest in and to the Property, with such conveyance to be subject to and in accordance with the terms, provisions, U) covenants and conditions more particularly set forth in this Agreement. Seller also agrees to convey to Purchaser at Closing all of Seller's right, title and interest in and to all governmental orders, resolutions, grants, site plans or approved plats, zoning approvals, development rights, resolutions, permits and rights accruing to Seller as a result of its ownership of the Property, and the operation of same, contract rights, easements, covenants, privileges, servitudes, 0 appurtenances, strips of land and roadways adjoining the Property, and other rights relating to the Property (collectively the "Rights and Permits"). 2. PURCHASE PRICE: The purchase price ("Purchase Price") for the Property shall be One Million Four Hundred Sixty Five Thousand and No/100 Dollars ($1,465,000.00), payable by Purchaser in whole to Seller by conveyance to Seller of that certain parcel of real property located at 2855 Overseas Highway, Marathon, Florida 33050, and legally described in Exhibit "B" attached hereto (the "Exchange Property"). The parties agree that for the purposes of this transaction C that both the Property and the Exchange Property are equal in value and that each has a fair market value of$1,465,000.00, respectively. Concurrently with the execution of this Agreement, Packet Pg. 2362 0.3.b Purchaser and Seller have executed an Agreement for Purchase and Sale of the Exchange Property (the "Exchange Agreement"). At Closing, Seller shall deliver the documents described in Paragraph 9 below for conveyance of the Property to Purchaser and on a future date to be mutually agreed upon prior to the Closing of this property Purchaser shall execute similar documents for conveyance of the Exchange Property to Seller. 3. "AS IS" CONVEYANCE WITH INSPECTION PERIOD: Purchaser is purchasing the Property in its "as-is" physical condition, specifically and expressly without any warranties, representations or guarantees, either express or implied, of any kind, nature, or type whatsoever from or on behalf of Seller, except those as otherwise expressly set forth in this s Agreement. Purchaser shall have until 5:00 p.m. on the one hundred twentieth (120th) day following the Effective Date, within which to conduct and complete its inspections and evaluations of the Property and the records relating to the operation thereof (the "Inspection Period"), which may include, but are not limited to, obtaining zoning approval for use of the Property for medical uses, Phase I and Phase II environmental surveys and soil tests. Seller shall provide Purchaser and its employees and agents access to the Property and to any 2 contracts, operating expenses and such other information as the Purchaser may reasonably request regarding the Property and the operation thereof. Seller agrees to give Purchaser and Purchaser's employees and agents reasonable access to the Property for the purposes of E conducting such inspections and evaluations as the Purchaser deems necessary. If Purchaser provides Seller with written notice that Purchaser is not satisfied with the Property prior to 5:00 P.M. on the last day of the Inspection Period (the "Termination Notice"), this Agreement shall 0 be deemed to be terminated. To be effective written notice of termination must be sent to Seller LN in accordance with the provisions of Section 18 below prior to the end of the Inspection Period. If Purchaser terminates this Agreement, it shall, at its cost, repair any damage to the Property resulting from its inspections and evaluations. Purchaser and its agents shall keep the 0 information obtained as a part of the due diligence confidential to the extent permitted by law. Purchaser shall indemnify, defend and hold Seller harmless from and against any and all action, demands, liabilities, loss, damage or expense, including, but not limited to, construction liens and attorneys' fees, arising from or related to any incident, occurrence, damage, personal injury or property damage resulting from Purchaser or Purchaser's agents, contractors, employees, or anyone on Purchaser's behalf, performing Purchaser's examinations, inspections, measurements and testing of and on the Property. Purchaser agrees to give Seller prior reasonable advance CD notice of any inspections of the Property. Purchaser's indemnity and hold harmless pursuant to this Section shall survive the termination or expiration of this Agreement by Closing or 0 otherwise. Within ten (10) days following the Effective Date, Seller will provide Purchaser with copies of all environmental surveys, soil tests and other studies in the possession of Seller or to which Seller has access, if any, which relate to the Property, and copies of any service contracts 2 records, documents and notices relating to the Property in Seller's possession or to which Seller 0 has access. Seller acknowledges Purchaser may desire to discuss or otherwise inquire about plans, documents, agreements and other records of various governmental entities, districts and utilities regarding the Property or otherwise impacting, restricting, or affecting its use or value ("Governmental Records") with various governmental entities and utilities. In this regard, Purchaser is permitted to contact all necessary third parties and discuss with such third parties the Governmental Records. In the event this Agreement is terminated the Exchange Agreement C shall also terminate. 2 Packet Pg. 2363 0.3.b 4. PERMITTED EXCEPTIONS: This sale is being made and Purchaser shall take title to the Property subject to the following (the "Permitted Exceptions"): A. Taxes and assessments for the years 2021 and thereafter. B. Restrictions, easements, covenants, conditions, limitations and reservations of record, provided that this recital shall not operate to re-impose same. C. Zoning and applicable governmental ordinances. 5. TITLE: (A) Seller represents that it is the owner of the Property and that there is no limitation or restriction upon or against its right to enter into this Agreement and to convey the Property as herein provided. (B) Purchaser shall, promptly after receipt of the Survey and the legal description of the Property, order a commitment for title insurance (the "Title Insurance Commitment") from Chicago Title Insurance Company (the "Title Insurer"). Purchaser, at its E own expense, prior to, or upon recording of the deed conveying title to the Property from Seller to Purchaser, shall obtain an owner's policy of title insurance in the amount of the Purchase Price insuring Purchaser's title to the Property and, unless Purchaser consents otherwise, subject only to those liens and encumbrances which shall be discharged by Seller at or before Closing, and , the Permitted Exceptions. Purchaser will cause a copy of the Title Insurance Commitment to be delivered to Seller's attorney within three (3)business days of its receipt by Purchaser's attorney. Purchaser, within fifteen (15) days following the date on which Purchaser receives the Title r- Insurance Commitment, shall deliver to Seller written notice of Purchaser's objections, if any, to E any exceptions which render title to the Property unmarketable or unusable for Purchaser's intended uses (the "Title Objections"). If Purchaser fails to deliver such written notice or objection to Seller within such fifteen (15) day period, Purchaser shall be deemed to have waived its right to object. In the event that Purchaser shall provide Seller with any Title Objections, v) Seller shall promptly notify Purchaser following the date of Purchaser's notice of such objections that either (a) the Title Objection has been, or will be at or prior to Closing, satisfied or cured by Seller, or (b) the Title Objection will not be satisfied or cured. If Seller notifies Purchaser that a S Title Objection will not be satisfied or cured, then Purchaser may elect either: (i) to terminate this Agreement and the Exchange Agreement; or c (ii) to take title as it then is, subject to any Title Objection 0 which Seller has notified Purchaser it will not satisfy or cure, with the election of section (i) above or this section (ii) to be made within ten (10) business days following receipt of notice from Seller described in Section 5(B)(b) above, provided that if Purchaser fails to make an election within the said ten (10)business day period, Purchaser shall be deemed to have elected (i). 3 Packet Pg. 2364 0.3.b If Purchaser receives notice from Seller as described in Section 5(B)(b) above, and makes a timely election of(ii) above, then: (i) Purchaser shall be deemed to have agreed to accept title as it then is, subject to any Title Objection which Seller has notified Purchaser it will not satisfy or cure, without any -� reduction in the Purchase Price; (ii) all Title Objections described in Purchaser's notice under Section 5(B)(b) above not to be satisfied or cured will s thenceforth be deemed Permitted Exceptions; and (iii) this Agreement shall remain in full force and effect. Seller shall have no affirmative obligation hereunder to expend any funds or incur any liabilities in order to cause any title exceptions to be removed from the Title Insurance 6 Commitment, except that Seller shall pay, discharge or bond off any monetary lien or encumbrance affecting the Property at or prior to Closing, provided such lien or encumbrance is not created by Purchaser. Seller shall, prior to the Closing Date, obtain all resolutions and E approvals necessary for Seller to convey title to the Property to Purchaser, and to convey the Rights and Permits to Purchaser. 6. SURVEY: Purchaser may, at its sole cost and expense, order a survey (the "Survey") of the Property -2 prepared by a surveyor licensed to practice in the State of Florida and satisfactory to Purchaser, r- duly certified to Purchaser, Purchaser's attorney, and to the Title Insurer. The Survey shall show the Property, adjoining streets and roads, including the points of ingress and egress thereto, and shall set forth the exact location of all easements on and upon the Property, together with all rights-of-way and easements relating to the Property, and shall further reflect and certify there are no encroachments either way with respect to the Property. In the event the Survey shows any v) condition which shall render Seller's fee simple title other than good, marketable and insurable, including, but not limited to, any encroachments, overlaps, gores, gaps, strips or hiatuses (collectively, "Survey Defects"), Purchaser, within ten (10) days after receipt of the Survey, but in no event later than the expiration of the Inspection Period, may deliver to Seller written notice of those Survey Defects to which it objects. If Purchaser fails to deliver to Seller written notice of Purchaser's objections to any Survey Defects within such period, then Purchaser shall be deemed to have waived any right to such an objection and the Survey Defects shall thereafter be deemed Permitted Exceptions. In the event that Purchaser shall so object to a Survey Defect, then it shall be handled in the same manner as that of a Title Objection which is timely objected 0 to as set forth in Section 5(B) above. 7. CLOSING: If all the conditions hereof are met the delivery of the deed, documents, money and other acts necessary to accomplish the transactions provided for in this Agreement (the "Closing") shall take place on the later of(i) thirty (30) days following the end of the Inspection Period, or (ii) thirty (30) days after Seller has completed its new library and has vacated the Property, 4 Packet Pg. 2365 0.3.b unless extended in writing by the parties (the "Closing Date"). The Closing shall take place in Monroe County, Florida, or at such other location as may be agreed upon by the parties. The Closing on the purchase and sale of the Property is contingent upon a simultaneous closing on the purchase and sale of the Exchange Property. 8. CLOSING COSTS AND ADJUSTMENTS: At Closing, the following items shall be borne, adjusted, prorated or assumed by or between Seller and Purchaser: (A) Adjustments and Pro-rations: (i) Real Estate Taxes: Seller is a tax exempt entity and there will be no tax pro ration required in the purchase year. (ii) Certified/Pending Liens: Certified, confirmed and ratified governmental liens as of the Closing Date shall be paid by Seller, provided, however, if there are any improvement district or special taxing district liens or similar assessments which encumber the Property, Purchaser shall assume the obligation to pay any future installments of such liens or E assessments affecting the Property which accrue after the Closing Date. Any such liens or u assessments for the current payable period shall be prorated up to the Closing Date. Pending liens as of the Closing Date shall be assumed by Purchaser, provided, however, that where the improvement has been substantially completed as of the Closing Date, such pending lien shall be 0 considered as certified, confirmed or ratified and Seller shall, at Closing, be charged an amount equal to the last estimate by the public body, of the assessment for the improvement. 0 (B) Closing Costs: (i) Seller shall pay the following costs and expenses in connection with the Closing: all fees and costs incurred if Seller elects to clear title to the Property, the cost of lien searches, Seller's attorneys' fees, the cost of obtaining and recording any corrective U) instruments, and the costs of discharging any monetary liens on the Property. (ii) Purchaser shall pay the following costs and expenses in connection with the Closing: documentary stamps on the Deed, the cost of the Purchaser's inspections of the Property, the cost of title searches and title insurance, the cost of recording the Deed, Purchaser's c attorneys' fees, the cost of the Survey, if ordered by Purchaser, and the cost of environmental surveys and soils tests of the Property. c 9. CLOSING DOCUMENTS: (A) Seller's Documents at Closing: At Closing, Seller shall execute and/or deliver to Purchaser the following: E (i) A Statutory Quit Claim Deed pursuant to Florida Statute Section 125.411. 5 Packet Pg. 2366 0.3.b (ii) Four (4) executed Closing Statements itemizing the dollar amounts of all financial matters related to the Closing, including the adjustments and pro-rations provided herein; (iii) A certified copy of a Seller resolution authorizing the execution of this Agreement by the Seller, authorizing the sale of the Property to the Purchaser as provided herein, and providing the names and titles of the individuals authorized to execute and deliver the Statutory Quit Claim Deed and other required closing documents; (iv) Seller's executed title affidavit, including mechanic's lien, possession and gap provisions, in form sufficient to enable the Title Insurer to delete the standard exceptions (e.g. the Gap, construction liens and parties in possession) from Purchaser's owner's title insurance policy; (v) Such corrective instruments as may be required to satisfy or cure any �-- Title Objections Seller has elected to satisfy or cure; (vi) An Assignment of Rights and Permits (including zoning and development rights) relating to the Property; and E (vii) Any other documents reasonably required under the Title Insurance Commitment or otherwise necessary or advisable to consummate the transactions contemplated hereby. 0 (B) Purchaser's Documents at Closing: At Closing, Purchaser shall execute and/or deliver to Seller the following: 0 E (i) Four(4) executed counterparts of the Closing Statement; (ii) Any other documents reasonably necessary or advisable to consummate the transaction contemplated hereby; and (C) Concurrently with the delivery of the foregoing documents the parties shall execute and deliver the Closing documents for the Exchange Property, along with any consideration due in addition to the Exchange Property if applicable. 0 10. RADON GAS: In accordance with Section 404.056, Florida Statues, Seller hereby notifies Purchaser as follows: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who 2 are exposed to it over time; levels of radon that exceed federal and state guidelines have been found in buildings in Florida; and additional information regarding radon and radon testing may be obtained from the Miami-Dade County health department. 11. FAILURE OF PERFORMANCE: If Seller fails to perform this Agreement within the times specified, Purchaser may elect to terminate this Agreement and the Exchange Agreement. The waiver by one party of any condition or of any subsequent breach of the same or any other term, covenant, or condition herein contained shall not be deemed to be a waiver of 6 Packet Pg. 2367 0.3.b any other condition or of any subsequent breach of the same or any other term, covenant or condition contained herein. 12. ATTORNEY'S FEES: Should Seller and/or Purchaser employ an attorney or attorneys to enforce any of the provisions hereof, or to protect its interest or enforce its rights in any matter arising under this Agreement, the party prevailing shall be entitled to payment by the other party of all reasonable costs, charges and expenses, including reasonable attorneys' fees and costs in all pre-trial, trial and appellate levels, expended or incurred in connection therewith by the prevailing party. 13. AFFIRMATIVE COVENANTS OF SELLER: (A) From and after the Effective Date, Seller will (i) refrain from creating or incurring any mortgage, lien, pledge or other encumbrances in any way affecting the Property or any portion thereof, (ii) observe all laws, ordinances, regulation, and restrictions affecting the Property or any portion thereof and its use until the Closing; (iii) refrain from entering into any leases, easements, covenants or other agreements affecting the Property; and (iv) neither transfer nor remove any fixtures or equipment belonging to the Property, except for purposes of replacement thereof, in which cases such replacements shall be promptly installed prior to E Closing and shall be comparable in quality to the items being replaced. (B) Prior to the Closing Date Seller shall cause all leases and other occupancy agreements affecting the Property to be terminated and shall cause all books and furnishings , within the Property to be removed. The Property shall be delivered to Purchaser at Closing free of any tenants or occupants and in broom clean condition. 0 14. REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE PROPERTY: Seller hereby represents and warrants to Purchaser that, as of the date hereof: (A) No Condemnation, Pending or Threatened: Seller has no knowledge of any pending or threatened condemnation or similar proceeding affecting the Property or any v) portion thereof. (B) Seller's Authority: Seller has, full right, power and authority to perform this Agreement and doing so will not result in breach of, or constitute any default under, or result in the imposition of, any lien or encumbrance upon the Property or any portion thereof under any agreement or other instrument to which Seller is a party or by which Seller or the Property may be bound. The execution and delivery of this Agreement by Seller, and the consummation by Seller of the transactions contemplated hereby or the performance by Seller of its obligations does not require consent or approval of any governmental authority. Seller is not a "foreign 0 person" as defined in Section 1445 of the Internal Revenue Code of 1954, as amended. (C) Pending Litigation: Seller has not received notice of any legal actions, a suits, or other legal or administrative proceedings pending or threatened, which affect or could affect the Property or any portion thereof, and Seller is not aware of any facts which might result in any such action, suit or other proceedings. 7 Packet Pg. 2368 0.3.b (D) Possession: There are no leases, subleases, licenses or occupancy agreements (written or verbal) which affect or relate to the Property. (E) Compliance with Laws: To Seller's knowledge, Seller has not received a any notice that the Property and/or the present use thereof is not in compliance with applicable laws, ordinances, regulations, statutes, rules and restrictions pertaining to and affecting the -� Property and to the best of Seller's knowledge, there are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against or involving Seller which could have a material or adverse effect on the Property or the use, condition or operation thereof. s (F) No Violation of Zoning Laws: To Seller's knowledge, no zoning, building or similar law, ordinance or regulation is, as of the Effective Date, being violated by the continued maintenance, operation or use of any buildings, improvements or structures presently erected on the Property. To Seller's knowledge, there are no uncured violations of federal, state or municipal laws (including, without limitation, sales tax laws, ordinances, orders, regulations 2 or requirements) affecting any portion of the Property. (G) No Hazardous Materials: To Seller's knowledge, the Property is not E contaminated with any chemical, material or substance to which exposure is prohibited, limited or regulated by any federal, state, county, local or regional authority or which is known to pose a U- hazard to health and safety; and Seller has no knowledge that the Property has ever been used for 0 a landfill, dump site, underground improvements, storage of hazardous or regulated substances, 4- or by a manufacturer of any product or for any other industrial. (H) Underlying Structure: Seller has no knowledge of sinkholes, caverns, faults, conduits, voids, mines, or other geological anomalies which could affect the development E of the Property. (I) Special Assessments: There are no special assessments affecting the Property. v) Seller agrees that the foregoing representations and warranties shall survive the Closing for a period of one year. 15. BROKERAGE: Seller and Purchaser represent and warrant to each other that c E no brokers have been engaged to represent them in connection with the negotiations of this Agreement and/or the consummation of the purchase and sale contemplated hereby. Seller and Purchaser each hereby agrees to indemnify and hold the other harmless from all loss, cost, damage or expense (including reasonable attorneys' fees)incurred by the other as a result of any 0 claim arising out of the acts of the indemnifying party (or others on its behalf) for a commission, finder's fee or similar compensation made by any broker, finder or any party who claims to have dealt with such party. The representations, warranties and indemnities contained in this Section shall survive the Closing. 16. RISK OF LOSS: In the event of damage or destruction to the Property or any portion thereof prior to the Closing, Purchaser and Seller shall consummate this Agreement, 8 Packet Pg. 2369 0.3.b provided that Seller shall assign to Purchaser its right under all insurance policies covering such damage or destruction. 17. NOTICES: Any and all notices, requests, demands, consents, approvals or other communications hereunder shall be in writing and sent addressed to the parties as follows: As to Seller: Monroe County, Florida Kevin G. Wilson ACA_ _ 1100 Simonton St Suite 206 Key West, FL 33040 Tel: (305) 292 4529 Email:Wilson-Kevin@MonroeCounty-FL.Gov With a copy to: Adele V. Stones 6 Oropeza,Stones & Cardenas 221 Simonton Street Key West, FL 33040 E Tel: (305) 849 2352 Email:Ginny@keyslaw.net 0 As to Purchaser: Kathleen S. Moorman, Vice President LN Baptist Health Enterprises, Inc. 6855 Red Road, Suite 600 Coral Gables, Florida 33143 0 Tel: (786) 662-7386 E Email kathleenmo@baptisthealth.net And with a copy to: Kyle R. Saxon, Esq. Saxon& Fink, LLP U) 2121 Ponce De Leon Boulevard, Suite 740 Coral Gables, Florida 33134 Tel: 305-371-9575 � Email: kylesaxon@saxonfink.com 0 Any such notices shall be either (a) sent by certified mail, return receipt requested, in which case notice shall be deemed delivered three (3) business days after deposit, postage prepaid in the U.S. mail, or (b) sent by a nationally recognized overnight courier, in which case notice shall be 0 deemed delivered one (1) business day after being deposited during business hours with such courier, or (c) sent on a business day by email followed by a copy sent first class mail, postage prepaid, deposited in the U.S. Mail on the same day that the email is sent, in which case notice shall be deemed delivered on the day the email is sent. The above addresses may be changed by E written notice to the other party; provided, however, that no notice of a change of address shall be effective until actual receipt of such notice. < 18. INTERPRETATIONS: This Agreement shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been 9 Packet Pg. 2370 0.3.b prepared by counsel for one of the parties, it being recognized that both Seller and Purchaser have contributed to the preparation of this Agreement. 19. CAPTIONS AND HEADINGS: Captions and Article headings contained in a this Agreement are for convenience and reference only and in no way define, describe, extend y or limit the scope or intent of this Agreement nor the intent of any provision hereof. 20. NO WAIVER: No waiver of any provision of this Agreement shall be effective unless it is in writing, signed by the party against whom it is asserted and any such written waiver shall only be applicable to the specific instance to which it related and shall not be .2 deemed to be a continuing or future waiver. 21. COUNTERPARTS: This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement. An electronic or PDF signature of an executed counterpart shall have the same validity as an original signature. 22. BINDING EFFECT: This Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective successors and permitted assigns. E 23. GOVERNING LAW: This Agreement shall be construed and interpreted according to the internal laws of the State of Florida. LN 24. INTERPRETATION: Wherever used in this Agreement, "ate" means "any and all"; "include" and "including" each are without limitation; "may not" and other negative -2 forms of the verb "may" each are prohibitory; and "will" "must", and "should" each are mandatory. Unless this Agreement expressly or necessarily requires otherwise (i) any time period measured in "days" (and not "business days') means consecutive calendar days, except that the expiration of any time period measured in days that expires on a Saturday, Sunday or legal holiday automatically will be extended to the next day so that it is not a Saturday, Sunday or legal holiday; (ii) any action is at the sole expense of the party required to take it; and (iii)the v) scope of any indemnity includes any costs and expenses, including reasonable attorneys' fees incurred through all appellate levels, whether suit be instituted or not, incurred in defending any indemnified claim, or in enforcing the indemnity, or both. 25. NO RECORDING: Neither Purchaser nor Seller shall record this Agreement or c any memorandum thereof. 26. TIME OF THE ESSENCE: Purchaser and Seller mutually agree that time is of c the essence throughout the term of this Agreement and every provision hereof in which time is 0 an element. No extension of time for performance of any obligations or acts shall be deemed an extension of time for performance of any other obligations or acts. If any date for performance of any terms, conditions or provisions hereof shall fall on a Saturday, Sunday or legal holiday, then the time of such performance shall be extended to the next business day thereafter. 27. ENTIRE AGREEMENT: This Agreement and the Exhibits attached hereto contain the entire agreement between the parties. There are no promises, agreements, conditions, undertakings, warranties, or representations, oral or written, express or implied, 10 Packet Pg. 2371 0.3.b between the parties other than as herein set forth. No amendment or modification of this Agreement shall be valid unless the same is in writing and signed by the parties hereto. No waiver of any of the provisions of this Agreement or any other agreement referred to herein shall be valid unless in writing and signed by the party against whom enforcement is sought. 28. POST CLOSING PERFORMANCE: Seller and Purchaser agree to cooperate with each other after the Closing and to execute and deliver any documents reasonably necessary to effect the terms and conditions of this Agreement, including permitting and other approvals. 29. WAIVER OF TRIAL BY JURY: Seller and Purchaser, to the extent they may legally do so, hereby expressly waive any right to trial by jury of any claim, demand, action, cause of action, or proceeding arising under or with respect to this Agreement, or in any way connected with, or related to, or incidental to, the dealings of the parties hereto with respect to this Agreement or the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and irrespective of whether sounding in contract, tort, or otherwise. To the 2 extent they may legally do so, Seller and Purchaser hereby agree that any such claim, demand, action, cause of action, or proceeding shall be decided by a court trial without a jury and that any party hereto may file an original counterpart or a copy of this Section with any court as E written evidence to the consent of the other party or parties hereto to waiver of its or their right to trial by jury. U- 0 30. TIME FOR ACCEPTANCE: This Agreement, when duly executed by all of LN the parties hereto, shall be binding upon the parties hereto, their heirs, representatives, successors and assigns. In the event this Agreement and the Exchange Agreement have not been duly and fully executed by Purchaser and Seller and duly executed counterparts delivered 0 to Purchaser and Seller by the tenth (loth) business day following an Affirmative Vote of the E Board of County Commissioners approving the Agreement and the Exchange Agreement, then the offers herewith made by Purchaser and Seller shall terminate and this Agreement and the Exchange Agreement shall be null and void. v) 31. APPROVAL OF BOARD OF TRUSTEES OF BAPTIST HEALTH SOUTH FLORIDA, INC.: Notwithstanding anything to the contrary contained herein, this Agreement CD and the Exchange Agreement are subject to and contingent upon approval by the Board of S .N Trustees of Baptist Health South Florida, Inc. If the Board of Trustees of Baptist Health South Florida, Inc. does not approve the purchase of the Property prior to 5:00 p.m. on the last day of the Inspection Period (or such later date as may be agreed to in writing by the parties hereto) then this Agreement and the Exchange Agreement shall be deemed to be terminated and of no r- further force or effect. Purchaser shall promptly notify Seller of the action taken by the Board of Trustees regarding this Agreement and the Exchange Agreement. SIGNATURES ARE ON THE NEXT PAGE 11 Packet Pg. 2372 0.3.b IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, as of the day and year written below their respective signatures. SELLER: MONROE COUNTY, a political subdivision of the State of Florida By: Name: Title: Dated: , 2021 PURCHASER: E FISHERMEN'S HEALTH, INC. a Florida not-for-profit corporation 0 LN By: Name: c Title: Dated: , 2021 0 c 0 12 Packet Pg. 2373 0.3.b 1-3-21 Draft EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY A parcel of land lying in Section 9, Township 66 South, Range 32 East, Marathon, Monroe a County, State of Florida, and being more particularly described by metes and bounds as follows, to-wit: Commencing at the intersection of the Northeasterly right of way line of 30th Street, also known as Marathon Avenue, according to the recorded plat of Sombrero Subdivision No. 6, as recorded in Plat book 2 at page 93 of the public records of Monroe county, and the Southeasterly right of way line of U.S. Highway No. 1, also known as Overseas Highway, said point also being the Northwest corner of lot B 1, according to said plat of Sombrero Subdivision No. 6, thence s N73°53'03"E along the Southeasterly right of way line of said U.S. Highway No. 1 for a distance of 352.00 feet to the Point of Beginning of the parcel of land hereinafter described; thence N73°53'03"E continuing along the said Southeasterly right of way line of U.S. Highway No. 1 for a distance of 108.00 feet to the Northwest corner of the lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 400.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence N73°53'03"E along the Southeasterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 100.00 feet to the i_ Southeast corner of the said lands described in Official Records Book 2862, at Page 1081 of the 0 Public Records of Monroe County, Florida; thence S16°06'57"E along the Southwesterly L boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 115.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of 0 Monroe County, Florida; thence S73°53'03"W for a distance of 197.00 feet to a point; thence N16°06'57"W for a distance of 160.50 feet to a point; thence N61°06'57"W for a distance of 28.28 feet to a point; thence N16°06'57"W for a distance of 137.00 feet to a point; thence N73°53'03"E for a distance of 20.00 feet to a point; thence N16°06'57"W for a distance of 98.00 feet to a point; thence S73°53'03"W for distance of 13.50 feet to a point; thence N16°06'57"W for a distance of 67.50 feet to a point; thence N73°53'03"E for a distance of 2.50 feet to a point; thence N16°06'57"W for a distance of 32.00 feet back to the Point of Beginning. Said parcel of land contains 65,658.25 Square Feet or 1.51 Acres, more or less. 0 c Packet Pg. 2374 0.3.b EXHIBIT `B" LEGAL DESCRIPTION OF THE EXCHANGE PROPERTY a Lots A-4, B-4 and D-14, of SOMBRERO SUBDIVISION NO. 6, according to the Plat thereof as recorded in Plat Book 2, Page 93, of the Public Records of Monroe County, Florida. Parcel ID # 00321730-000000 E 0 14 Packet Pg. 2375 0.3.b Exhibit 2 Purchase and Sale Agreement Conveying Fishermen's Property to County E 0 5 Packet Pg. 2376 0.3.b 1-4-21 Draft AGREEMENT FOR PURCHASE AND SALE THIS AGREEMENT FOR PURCHASE AND SALE (the "Agreement") is made as of the day of 2021 by and between MONROE COUNTY, a a political subdivision of the State of Florida, having it's address at 1100 Simonton Street, Suite 2- 216, Key West, Florida 33040 (hereinafter called "Purchaser"), and FISHERMEN'S -� HEALTH, INC., a Florida not-for-profit corporation, having its address at 6855 Red Road, Suite 600, Coral Gables, Florida 33143 (hereinafter called"Seller"). WITNESSETH: WHEREAS, Seller is the owner of that certain parcel of land comprising 0.34+/- acres, located at 2855 Overseas Highway, Marathon, Florida 33050, situated, lying and being in Monroe County, Florida, and legally described in Exhibit "A" attached hereto, including the land and all improvements thereto and thereon, all fixtures and equipment affixed or attached thereto, and all easements, rights of way, privileges, appurtenances and other rights pertaining Z thereto (hereinafter collectively referred to as the "Property"); and WHEREAS, Seller is desirous of selling and conveying and Purchaser is desirous of E acquiring Seller's interest in the Property. NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Seller 0 LN agrees to sell and convey and Purchaser agrees to acquire Seller's interest in the Property upon the terms and conditions hereinafter set forth. .2 1. SALE-PURCHASE: c Seller hereby agrees to sell and convey to Purchaser its fee simple interest in and to the Property, and Purchaser hereby agrees to purchase Seller's fee simple interest in and to the Property, with such conveyance to be subject to and in accordance with the terms, provisions, U) covenants and conditions more particularly set forth in this Agreement. Seller also agrees to convey to Purchaser at Closing all of Seller's right, title and interest in and to all governmental orders, resolutions, grants, site plans or approved plats, zoning approvals, development rights, resolutions, permits and rights accruing to Seller as a result of its ownership of the Property, and the operation of same, contract rights, easements, covenants, privileges, servitudes, 0 appurtenances, strips of land and roadways adjoining the Property, and other rights relating to the Property (collectively the "Rights and Permits"). 2. PURCHASE PRICE: The purchase price ("Purchase Price") for the Property shall be One Million Four Hundred Sixty Five Thousand and No/100 Dollars ($1,465,000.00), payable by Purchaser to Seller by conveyance to Seller of that certain parcel of real property located at 3251 Overseas Highway, Marathon, Florida 33050, and legally described in Exhibit "B" attached hereto (the "Exchange Property"). The parties agree that for the purposes of this transaction that both the C Property and the Exchange Property are equal in value and that each has a fair market value of $1,465,000.00. Concurrently with the execution of this Agreement, Purchaser and Seller have Packet Pg. 2377 0.3.b executed an Agreement for Purchase and Sale of the Exchange Property (the "Exchange Agreement"). At Closing, Seller shall deliver the documents described in Paragraph 9 below for conveyance of the Property to Purchaser and Purchaser shall execute similar documents for conveyance of the Exchange Property to Seller. 3. "AS IS" CONVEYANCE WITH INSPECTION PERIOD: Purchaser is purchasing the Property in its "as-is" physical condition, specifically and expressly without any warranties, representations or guarantees, either express or implied, of any kind, nature, or type whatsoever from or on behalf of Seller, except those as otherwise expressly set forth in this Agreement. Purchaser shall have until 5:00 p.m. on the one hundred twentieth (120th) day s following the Effective Date, within which to conduct and complete its inspections and evaluations of the Property and the records relating to the operation thereof (the "Inspection Period"), which may include, but are not limited to, Phase I and Phase 11 environmental surveys and soil tests. Seller shall provide Purchaser and its employees and agents access to the Property and to any contracts, operating expenses and such other information as the Purchaser may reasonably request regarding the Property and the operation thereof. Seller agrees to give 2 Purchaser and Purchaser's employees and agents reasonable access to the Property for the purposes of conducting such inspections and evaluations as the Purchaser deems necessary. If Purchaser provides Seller with written notice that Purchaser is not satisfied with the Property E prior to 5:00 P.M. on the last day of the Inspection Period (the "Termination Notice"), this Agreement shall be deemed to be terminated. To be effective written notice of termination must U_ be sent to Seller in accordance with the provisions of Section 18 below prior to the end of the 0 Inspection Period. If Purchaser terminates this Agreement, it shall, at its cost, repair any damage LN to the Property resulting from its inspections and evaluations. Purchaser and its agents shall keep the information obtained as a part of the due diligence confidential to the extent permitted by law. Purchaser shall indemnify, defend and hold Seller harmless from and against any and all 0 action, demands, liabilities, loss, damage or expense, including, but not limited to, construction liens and attorneys' fees, arising from or related to any incident, occurrence, damage, personal injury or property damage resulting from Purchaser or Purchaser's agents, contractors, employees, or anyone on Purchaser's behalf, performing Purchaser's examinations, inspections measurements and testing of and on the Property. Purchaser agrees to give Seller prior reasonable advance notice of any inspections of the Property. Purchaser's indemnity and hold harmless pursuant to this Section shall survive the termination or expiration of this Agreement by C Closing or otherwise. Within ten (10) days following the Effective Date, Seller will provide N Purchaser with copies of all environmental surveys, soil tests and other studies in the possession 0 of Seller or to which Seller has access, if any, which relate to the Property, and copies of any service contracts, records, documents and notices relating to the Property in Seller's possession or to which Seller has access. Seller acknowledges Purchaser may desire to discuss or otherwise inquire about plans, documents, agreements and other records of various governmental entities, 0 districts and utilities regarding the Property or otherwise impacting, restricting, or affecting its use or value ("Governmental Records")with various governmental entities and utilities. In this regard, Purchaser is permitted to contact all necessary third parties and discuss with such third parties the Governmental Records. In the event this Agreement is terminated the Exchange Agreement shall also terminate. 4. PERMITTED EXCEPTIONS: This sale is being made and Purchaser shall take title to the Property subject to the following (the "Permitted Exceptions"): 2 Packet Pg. 2378 0.3.b A. Taxes and assessments for the years 2021 and thereafter. B. Restrictions, easements, covenants, conditions, limitations and reservations of record,provided that this recital shall not operate to re-impose same. C. Zoning and applicable governmental ordinances. 5. TITLE: (A) Seller represents that it is the owner of the Property and that there is no limitation or restriction upon or against its right to enter into this Agreement and to convey the Property as herein provided. (B) Purchaser may, at its discretion and expense, order a commitment for title insurance (the "Title Insurance Commitment") from Chicago Title Insurance Company (the "Title Insurer"). Purchaser, at its own expense, upon recording of the deed conveying title to the Property from Seller to Purchaser, may obtain an owner's policy of title insurance in the amount of the Purchase Price insuring Purchaser's title to the Property and, unless Purchaser consents otherwise, subject only to those liens and encumbrances which shall be discharged by E Seller at or before Closing and the Permitted Exceptions. Purchaser will cause a copy of the Title Insurance Commitment to be delivered to Seller's attorney within three (3)business days of U- its receipt by Purchaser's attorney. Purchaser, within fifteen (15) days following the date on 0 which Purchaser receives the Title Insurance Commitment, shall deliver to Seller written notice -LN of Purchaser's objections, if any, to any exceptions which render title to the Property unmarketable or unusable for Purchaser's intended uses (the "Title Objections"). If Purchaser fails to deliver such written notice or objection to Seller within such fifteen (15) day period, 0 Purchaser shall be deemed to have waived its right to object. In the event that Purchaser shall provide Seller with any Title Objections, Seller shall promptly notify Purchaser following the date of Purchaser's notice of such objections that either (a) the Title Objection has been, or will be at or prior to Closing, satisfied or cured by Seller, or (b) the Title Objection will not be satisfied or cured. If Seller notifies Purchaser that a Title Objection will not be satisfied or U) cured, then Purchaser may elect either: (i) to terminate this Agreement and the Exchange Agreement; or (ii) to take title as it then is, subject to any Title Objection which Seller has notified Purchaser it will not satisfy or cure, with the election of section (i) above or this section (ii) to be made within ten (10) business days following receipt of notice from Seller described in Section 5(B)(b) above, provided that if Purchaser fails to make an election within the said ten (10)business day period, Purchaser shall E be deemed to have elected (i). If Purchaser receives notice from Seller as described in Section 5(B)(b) above, and makes a timely election of(ii) above, then: 3 Packet Pg. 2379 0.3.b (i) Purchaser shall be deemed to have agreed to accept title as it then is, subject to any Title Objection which Seller has notified Purchaser it will not satisfy or cure, without any reduction in the Purchase Price; (ii) all Title Objections described in Purchaser's notice under Section 5(B)(b) above not to be satisfied or cured will thenceforth be deemed Permitted Exceptions; and (iii) this Agreement shall remain in full force and effect. Seller shall have no affirmative obligation hereunder to expend any funds or incur any liabilities in order to cause any title exceptions to be removed from the Title Insurance Commitment, except that Seller shall pay, discharge or bond off any monetary lien or encumbrance affecting the Property at or prior to Closing, provided such lien or encumbrance is not created by Purchaser. Seller shall, prior to the Closing Date, obtain all resolutions and approvals necessary for Seller to convey title to the Property to Purchaser, and to convey the Rights and Permits to Purchaser. E 6. SURVEY: Purchaser may, at its sole cost and expense, order a survey (the "Survey") of the Property prepared by a surveyor licensed to practice in the State of Florida and satisfactory to Purchaser 0 duly certified to Purchaser, Purchaser's attorney, and to the Title Insurer. The Survey shall show the Property, adjoining streets and roads, including the points of ingress and egress thereto, and shall set forth the exact location of all easements on and upon the Property, together with all rights-of-way and easements relating to the Property, and shall further reflect and certify there are no encroachments either way with respect to the Property. In the event the Survey shows any condition which shall render Seller's fee simple title other than good, marketable and insurable, including, but not limited to, any encroachments, overlaps, gores, gaps, strips or hiatuses (collectively, "Survey Defects"), Purchaser, within ten (10) days after receipt of the Survey, but v) in no event later than the expiration of the Inspection Period, may deliver to Seller written notice of those Survey Defects to which it objects. If Purchaser fails to deliver to Seller written notice of Purchaser's objections to any Survey Defects within such period, then Purchaser shall be deemed to have waived any right to such an objection and the Survey Defects shall thereafter be deemed Permitted Exceptions. In the event that Purchaser shall so object to a Survey Defect, then it shall be handled in the same manner as that of a Title Objection which is timely objected to as set forth in Section 5(B) above. 7. CLOSING: y If all the conditions hereof are met the delivery of the deed, documents, money and other acts necessary to accomplish the transactions provided for in this Agreement (the "Closing") E shall take place on the later of(i) thirty (30) days following the end of the Inspection Period, or (ii) thirty (30) days after Seller has completed its new library and has vacated the Exchange Property, unless extended in writing by the parties (the "Closing Date"). The Closing shall take place in Monroe County, Florida, or at such other location as may be agreed upon by the parties. 4 Packet Pg. 2380 0.3.b The Closing on the purchase and sale of the Property is contingent upon a simultaneous closing on the purchase and sale of the Exchange Property. 8. CLOSING COSTS AND ADJUSTMENTS: a At Closing, the following items shall be borne, adjusted, prorated or assumed by or between Seller and Purchaser: (A) Adjustments and Pro-rations: (i) Real Estate Taxes: Taxes and assessments on the Property shall be prorated through the Closing Date based on the 2020 ad valorem tax bill(s), with due allowance made for the maximum allowable discount. Seller shall pay to Purchaser, at Closing, the amount of the prorated taxes for the period of January 1, 2021 to the Closing. (ii) Certified/Pending Liens: Certified, confirmed and ratified governmental liens as of the Closing Date and the outstanding balance on the wastewater special assessment shall be paid by Seller. Any such liens or assessments for the current payable period shall be prorated up to the Closing Date. Pending liens as of the Closing Date shall be assumed E by Purchaser, provided, however, that where the improvement has been substantially completed u as of the Closing Date, such pending lien shall be considered as certified, confirmed or ratified and Seller shall, at Closing, be charged an amount equal to the last estimate by the public body, `- of the assessment for the improvement. 0 (B) Closing Costs: -2 (i) Seller shall pay the following costs and expenses in connection c with the Closing: documentary stamps on the deed, all fees and costs incurred if Seller elects to clear title to the Property, the cost of lien searches, Seller's attorneys' fees, the cost of obtaining and recording any corrective instruments, and the costs of discharging any monetary liens on the Property. c) (ii) Purchaser shall pay the following costs and expenses in connection with the Closing: the cost of the Purchaser's inspections of the Property, the cost of title searches and title insurance, the cost of recording the Deed, Purchaser's attorneys' fees, the cost of the Survey, if ordered by Purchaser, and the cost of environmental surveys and soils tests of the c Property. 9. DECLARATION OF RESTRICTIONS. 0 At Closing Purchaser and Seller shall execute a Declaration of Restrictions in the form of Exhibit"C" attached hereto (the"Declaration"), which shall be recorded in the Public Records of Monroe County, Florida, at the time of Closing. E 10. CLOSING DOCUMENTS: (A) Seller's Documents at Closing: At Closing, Seller shall execute and/or deliver to Purchaser the following: 5 Packet Pg. 2381 0.3.b (i) A Special Warranty Deed (the "Deed"), subject only to the Permitted Exceptions; (ii) Four (4) executed Closing Statements itemizing the dollar amounts a of all financial matters related to the Closing, including the adjustments and pro-rations provided ?: herein; -� (iii) A FIRPTA Withholding Certificate or non-foreign certification satisfactory in form and substance to avoid transferee liability under Section 1445, Internal Revenue Code of 1954, as amended; s (iv) A certified copy of a Seller resolution authorizing the execution of this Agreement by the Seller, authorizing the sale of the Property to the Purchaser as provided herein, and providing the names and titles of the individuals authorized to execute and deliver the Special Warranty Deed and other required closing documents; (v) Seller's executed title affidavit, including mechanic's lien, possession and gap provisions, all in form sufficient to enable the Title Insurer to delete the standard exceptions (e.g. the Gap, construction liens and parties in possession) from Purchaser's E owner's title insurance policy; (vi) Such corrective instruments as may be required to satisfy or cure any Title Objections Seller has elected to satisfy or cure; 0 (vii) An Assignment of Rights and Permits (including zoning and development rights) relating to the Property; and 0 E (viii) Any other documents reasonably required under the Title Insurance Commitment or otherwise necessary or advisable to consummate the transactions contemplated hereby. (B) Purchaser's Documents at Closing: At Closing, Purchaser shall execute and/or deliver to Seller the following: (i) Four (4) executed counterparts of the Closing Statement; 0 (ii) Any other documents reasonably necessary or advisable to consummate the transaction contemplated hereby. c (C) Concurrently with the delivery of the foregoing documents the parties shall execute and deliver the Closing documents for the Exchange Property and Purchaser shall execute and deliver the Declaration to Seller for recording. 11. RADON GAS: In accordance with Section 404.056, Florida Statues, Seller E hereby notifies Purchaser as follows: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time; levels of radon that exceed federal and state guidelines have been 6 Packet Pg. 2382 0.3.b found in buildings in Florida; and additional information regarding radon and radon testing may be obtained from the Miami-Dade County health department. 12. FAILURE OF PERFORMANCE: If Seller fails to perform this Agreement a within the times specified, Purchaser may elect to terminate this Agreement and the Exchange Agreement. The waiver by one party of any condition or of any subsequent breach of the same or any other term, covenant, or condition herein contained shall not be deemed to be a waiver of any other condition or of any subsequent breach of the same or any other term, covenant or condition contained herein. 13. ATTORNEY'S FEES: Should Seller and/or Purchaser employ an attorney or attorneys to enforce any of the provisions hereof, or to protect its interest or enforce its rights in any matter arising under this Agreement, the party prevailing shall be entitled to payment by the other party of all reasonable costs, charges and expenses, including reasonable attorneys' fees and costs in all pre-trial, trial and appellate levels, expended or incurred in connection therewith by the prevailing party. 2 14. AFFIRMATIVE COVENANTS OF SELLER: (A) From and after the Effective Date, Seller will (i) refrain from creating or incurring any mortgage, lien, pledge or other encumbrances in any way affecting the Property or any portion thereof, (ii) observe all laws, ordinances, regulation, and restrictions affecting the Property or any portion thereof and its use until the Closing; (iii) refrain from entering into any - LN leases, easements, covenants or other agreements affecting the Property; and (iv) neither transfer nor remove any fixtures or equipment belonging to the Property, except for purposes of replacement thereof, in which cases such replacements shall be promptly installed prior to r_ Closing and shall be comparable in quality to the items being replaced. (B) Prior to the Closing Date Seller shall cause all leases and other occupancy agreements affecting the Property to be terminated and shall cause all furnishings within the Property to be removed. The Property shall be delivered to Purchaser at Closing free of any v) tenants or occupants and in broom clean condition. 15. REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE PROPERTY: Seller hereby represents and warrants to Purchaser that, as of the date hereof: 0 E (A) No Condemnation, Pending or Threatened: Seller has no knowledge of any pending or threatened condemnation or similar proceeding affecting the Property or any portion thereof. 0 (B) Seller's Authority: Seller has, full right, power and authority to perform this Agreement and doing so will not result in breach of, or constitute any default under, or result in the imposition of, any lien or encumbrance upon the Property or any portion thereof under any agreement or other instrument to which Seller is a party or by which Seller or the Property may be bound. The execution and delivery of this Agreement by Seller, and the consummation by Seller of the transactions contemplated hereby or the performance by Seller of its obligations does not require consent or approval of any governmental authority. Seller is not a "foreign person" as defined in Section 1445 of the Internal Revenue Code of 1954, as amended. 7 Packet Pg. 2383 0.3.b (C) Pending Litigation: Seller has not received notice of any legal actions, suits, or other legal or administrative proceedings pending or threatened, which affect or could affect the Property or any portion thereof, and Seller is not aware of any facts which might result in any such action, suit or other proceedings. (D) Possession: There are no leases, subleases, licenses or occupancy agreements (written or verbal) which affect or relate to the Property. (E) Compliance with Laws: To Seller's knowledge, Seller has not received any notice that the Property and/or the present use thereof is not in compliance with applicable s laws, ordinances, regulations, statutes, rules and restrictions pertaining to and affecting the Property and to the best of Seller's knowledge, there are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against or involving Seller which could have a material or adverse effect on the Property or the use, condition or operation thereof. CO (F) No Violation of Zoning Laws: To Seller's knowledge, no zoning, building or similar law, ordinance or regulation is, as of the Effective Date, being violated by the continued maintenance, operation or use of any buildings, improvements or structures presently E erected on the Property. To Seller's knowledge, there are no uncured violations of federal, state or municipal laws (including, without limitation, sales tax laws, ordinances, orders, regulations or requirements) affecting any portion of the Property. 0 LN (G) No Hazardous Materials: To Seller's knowledge, the Property is not contaminated with any chemical, material or substance to which exposure is prohibited, limited or regulated by any federal, state, county, local or regional authority or which is known to pose a hazard to health and safety; and Seller has no knowledge that the Property has ever been used for E a landfill, dump site, underground improvements, storage of hazardous or regulated substances, or by a manufacturer of any product or for any other industrial. (H) Underlying Structure: Seller has no knowledge of sinkholes, caverns faults, conduits, voids, mines, or other geological anomalies which could affect the development of the Property. (1) Special Assessments: There are no special assessments affecting the Property. Seller agrees that the foregoing representations and warranties shall survive the Closing for a period of one year. 0 16. BROKERAGE: Seller and Purchaser represent and warrant to each other that no brokers have been engaged to represent them in connection with the negotiations of this �. Agreement and/or the consummation of the purchase and sale contemplated hereby. Seller and Purchaser each hereby agrees to indemnify and hold the other harmless from all loss, cost, damage or expense (including reasonable attorneys' fees) incurred by the other as a result of any claim arising out of the acts of the indemnifying party (or others on its behalf) for a commission, finder's fee or similar compensation made by any broker, finder or any party who claims to have 8 Packet Pg. 2384 0.3.b dealt with such parry. The representations, warranties and indemnities contained in this Section shall survive the Closing. 17. RISK OF LOSS: In the event of damage or destruction to the Property or any portion thereof prior to the Closing, Purchaser and Seller shall consummate this Agreement, provided that Seller shall assign to Purchaser its right under all insurance policies covering such -� damage or destruction. 18. CONDEMNATION OR EMINENT DOMAIN: In the event of any condemnation or eminent domain proceedings for any public or quasi-public purposes at any time prior to Closing, resulting in a taking of any part or all of the Property, Purchaser shall have the option (i) to cancel this Agreement, in which event this Agreement shall be of no further force and effect; or (ii) to close the transaction contemplated by this Agreement, in which event the Purchase Price shall not be adjusted, provided, however, that Seller shall pay over or assign any condemnation or eminent domain award to Purchaser in respect to any condemnation or eminent domain proceeding subsequent to the Effective Date. Seller agrees not to enter into any settlement of any condemnation proceedings or eminent domain award without the prior written consent of Purchaser. E NOTICES: Any and all notices, requests, demands, consents, approvals or other communications hereunder shall be in writing and sent addressed to the parties as follows: 0 LN As to Purchaser: Monroe County, Florida Kevin G. Wilson, ACA E 1100 Simonton Street, Suite 206 Key West, Florida 33040 Tel: (305)292-4529 Email: Wilson-Kevin@MonroeCoun@L.Gov U) Adele V. Stones With a copy to: Oropeza, Stones & Cardenas 221 Simonton Street Key West, Florida 33040 Tel: (305) 849-2352 Email: Ginn@keyslaw.net As to Seller: Kathleen S. Moorman, Vice President Baptist Health Enterprises, Inc. 6855 Red Road, Suite 600 Coral Gables, Florida 33143 E Tel: (786) 662-7386 Email kathleenmo@baptisthealth.net 9 Packet Pg. 2385 0.3.b With a copy to: Kyle R. Saxon, Esq. Saxon & Fink, LLP 2121 Ponce De Leon Boulevard, Suite 740 Coral Gables, Florida 33134 Tel: 305-371-9575 Email kylesaxon@saxonfink.com Any such notices shall be either (a) sent by certified mail, return receipt requested, in which case notice shall be deemed delivered three (3) business days after deposit, postage prepaid in the -2 U.S. mail, or (b) sent by a nationally recognized overnight courier, in which case notice shall be s deemed delivered one (1) business day after being deposited during business hours with such courier, or (c) sent on a business day by email followed by a copy sent first class mail, postage prepaid, deposited in the U.S. Mail on the same day that the email is sent, in which case notice shall be deemed delivered on the day the email is sent. The above addresses may be changed by CO written notice to the other party; provided, however, that no notice of a change of address shall be effective until actual receipt of such notice. 2 19. INTERPRETATIONS: This Agreement shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been E prepared by counsel for one of the parties, it being recognized that both Seller and Purchaser have contributed to the preparation of this Agreement. U- 0 20. CAPTIONS AND HEADINGS: Captions and Article headings contained in this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Agreement nor the intent of any provision hereof. 0 21. NO WAIVER: No waiver of any provision of this Agreement shall be effective unless it is in writing, signed by the party against whom it is asserted and any such written waiver shall only be applicable to the specific instance to which it related and shall not be deemed to be a continuing or future waiver. v) 22. COUNTERPARTS: This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement. An electronic or PDF signature of an executed counterpart shall have the same validity as an original signature. 23. BINDING EFFECT: This Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective successors and permitted assigns. 24. GOVERNING LAW: This Agreement shall be construed and interpreted y according to the internal laws of the State of Florida. 25. INTERPRETATION: Wherever used in this Agreement, "aM" means "any and all"; "include" and "including' each are without limitation; "may not' and other negative forms of the verb "May' each are prohibitory; and "will", "must", and "should" each are mandatory. Unless this Agreement expressly or necessarily requires otherwise (i) any time period measured in "days" (and not"business days") means consecutive calendar days, except that the expiration 10 Packet Pg. 2386 0.3.b of any time period measured in days that expires on a Saturday, Sunday or legal holiday automatically will be extended to the next day so that it is not a Saturday, Sunday or legal holiday, (ii) any action is at the sole expense of the party required to take it; and (iii) the scope of any indemnity includes any costs and expenses, including reasonable attorneys' fees incurred through all appellate levels, whether suit be instituted or not, incurred in defending any indemnified claim, or in enforcing the indemnity, or both. 26. NO RECORDING: Neither Purchaser nor Seller shall record this Agreement or any memorandum thereof. 27. TIME OF THE ESSENCE: Purchaser and Seller mutually agree that time is of the essence throughout the term of this Agreement and every provision hereof in which time is an element. No extension of time for performance of any obligations or acts shall be deemed an extension of time for performance of any other obligations or acts. If any date for performance of any terms, conditions or provisions hereof shall fall on a Saturday, Sunday or legal holiday, then the time of such performance shall be extended to the next business day thereafter. 2 28. ENTIRE AGREEMENT: This Agreement and the Exhibits attached hereto contain the entire agreement between the parties. There are no promises, agreements, conditions, E undertakings, warranties, or representations, oral or written, express or implied, between the parties other than as herein set forth. No amendment or modification of this Agreement shall be valid unless the same is in writing and signed by the parties hereto. No waiver of any of the 0 provisions of this Agreement or any other agreement referred to herein shall be valid unless in 4- writing and signed by the party against whom enforcement is sought. 29. POST CLOSING PERFORMANCE: Seller and Purchaser agree to cooperate with each other after the Closing and to execute and deliver any documents reasonably necessary E to effect the terms and conditions of this Agreement. 30. WAIVER OF TRIAL BY JURY: Seller and Purchaser, to the extent they may legally do so, hereby expressly waive any right to trial by jury of any claim, demand, action cause of action, or proceeding arising under or with respect to this Agreement, or in any way connected with, or related to, or incidental to, the dealings of the parties hereto with respect to this Agreement or the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and irrespective of whether sounding in contract, tort, or otherwise. To the extent they may legally do so, Seller and Purchaser hereby agree that any such claim, demand, action, cause of action, or proceeding shall be decided by a court trial without a jury and that any C party hereto may file an original counterpart or a copy of this Section with any court as written r- evidence to the consent of the other party or parties hereto to waiver of its or their right to trial by jury. vc, 31. TIME FOR ACCEPTANCE: This Agreement, when duly executed by all of the parties hereto, shall be binding upon the parties hereto, their heirs, representatives, successors and assigns. In the event this Agreement and the Exchange Agreement have not been duly and fully executed by Purchaser and Seller and duly executed counterparts delivered to Purchaser and Seller by the tenth (IOth) business day following an Affirmative Vote of the Board of County Commissioners approving the Agreement and the Exchange Agreement, then the offers herewith 11 Packet Pg. 2387 0.3.b made by Purchaser and Seller shall terminate and this Agreement and the Exchange Agreement shall be null and void. 32. APPROVAL OF BOARD OF TRUSTEES OF BAPTIST HEALTH SOUTH a FLORIDA, INC.: Notwithstanding anything to the contrary contained herein, this Agreement and the Exchange Agreement are subject to and contingent upon approval by the Board of Trustees of Baptist Health South Florida, Inc. If the Board of Trustees of Baptist Health South Florida, Inc. does not approve the purchase of the Property prior to 5:00 p.m. on the last day of the Inspection Period (or such later date as may be agreed to in writing by the parties hereto), then this Agreement and the Exchange Agreement shall be deemed to be terminated and of no s further force or effect. Seller shall promptly notify Purchaser of the action taken by the Board of Trustees regarding this Agreement and the Exchange Agreement. SIGNATURES ARE ON THE NEXT PAGE a� LL E 0 0 0 c 0 12 Packet Pg. 2388 0.3.b IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, as of the day and year written below their respective signatures. SELLER: FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation By: Name: Title: Dated: , 2021 PURCHASER: E MONROE COUNTY, a political subdivision of the State of Florida 0 By: Name: c Title: Dated: , 2021 0 c 0 13 Packet Pg. 2389 0.3.b 1-4-21 Draft EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY Lots A-4, B-4 and D-14, of SOMBRERO SUBDIVISION NO. 6, according to the Plat thereof as recorded in Plat Book 2, Page 93, of the Public Records of Monroe County, Florida. ' Parcel ID # 00321730-000000 E 0 c c c Packet Pg. 2390 0.3.b EXHIBIT `B" LEGAL DESCRIPTION OF THE EXCHANGE PROPERTY a A parcel of land lying in Section 9, Township 66 South, Range 32 East, Marathon, Monroe County, State of Florida, and being more particularly described by metes and bounds as follows, to-wit: Commencing at the intersection of the Northeasterly right of way line of 30th Street, also known as Marathon Avenue, according to the recorded plat of Sombrero Subdivision No. 6, as recorded in Plat book 2 at page 93 of the public records of Monroe county, and the Southeasterly s right of way line of U.S. Highway No. 1, also known as Overseas Highway, said point also being the Northwest corner of lot B1, according to said plat of Sombrero Subdivision No. 6, thence N73°53'03"E along the Southeasterly right of way line of said U.S. Highway No. 1 for a distance of 352.00 feet to the Point of Beginning of the parcel of land hereinafter described; thence N73°53'03"E continuing along the said Southeasterly right of way line of U.S. Highway No. 1 for a distance of 108.00 feet to the Northwest corner of the lands described in Official Records 2 Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, for a distance of 400.00 E feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence N73°53'03"E along the i_ Southeasterly boundary line of the said lands described in Official Records Book 2862, at Page 0 1081 of the Public Records of Monroe County, Florida, for a distance of 100.00 feet to the LN Southeast corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S 16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the 0 Public Records of Monroe County, Florida, for a distance of 115.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S73°53'03"W for a distance of 197.00 feet to a point; thence N16°06'57"W for a distance of 160.50 feet to a point; thence N61°06'57"W for a distance of 28.28 feet to a point; thence N16°06'57"W for a distance of 137.00 feet to a point; thence N73°53'03"E for a distance of 20.00 feet to a point; thence N16°06'57"W for a distance of 98.00 feet to a point; thence S73°53'03"W for distance of 13.50 feet to a point; thence N16°06'57"W for a distance of 67.50 feet to a point; thence N73°53'03"E for a distance of 2.50 feet to a point; thence N16°06'57"W for a distance of 32.00 feet back to the Point of Beginning. Said parcel of land contains 65,658.25 Square Feet or 1.51 Acres, more or less. c 15 Packet Pg. 2391 0.3.b EXHIBIT "C" DECLARATION OF RESTRICTONS This instrument was prepared by: Name: Kyle R. Saxon, Esq. Address: Saxon & Fink, LLP 2121 Ponce De Leon Blvd., Suite 740 Coral Gables, Florida 33134 DECLARATION OF RESTRICTIONS THIS DECLARATION OF RESTRICTIONS (the "Declaration") is made and entered into as of the day of 2021, by FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation (hereafter referred to as "Fishermen's") and MONROE COUNTY, a political subdivision of the State of Florida (hereafter referred to as "Monroe County'). E WITNESSETH THAT: 0 WHEREAS, Fishermen's is the owner of the developed real property legally described LN in Exhibit "A" attached hereto (the "Property'), and WHEREAS, Fishermen's has agreed to sell the Property to Monroe County, and c E WHEREAS, a condition of Fishermen's selling the Property to Monroe County is the execution and recording of this Declaration, v) NOW, THEREFORE, in consideration of Fishermen's selling the Property to Monroe County and other valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: ° 0 1. The foregoing recitals are true, correct and are incorporated herein by this reference as if set forth in their entirety. 0 2. Neither Monroe County nor any successor owner of the Property shall develop or a utilize the Property for medical offices or medical related uses, including, but not limited to a day hospital or short-term hospital, an outpatient or urgent care facility, a free standing emergency E department, a dedicated emergency department, an ambulatory surgery facility or other type of facility that provides outpatient surgery, or an endoscopy facility (collectively "Medical Uses"), or permit any tenant, lessee or assignee to utilize the Property for Medical Uses. 16 Packet Pg. 2392 O.3.b 3. The limitations, covenants and restrictions contained in this Declaration shall be for the benefit Fishermen's. This Declaration shall be recorded in the Public Records of Monroe _ County, Florida, shall constitute a covenant running with the land and shall remain in full force and effect and be binding on the owners of the Property until such time as this Declaration is modified or terminated. 4. This Declaration shall be binding on the owners on the Property for a period of fifteen (15) years from the date this Declaration is recorded in the Public Records of Monroe County, Florida, after which time this Declaration shall terminate and be of no further force or effect. 5. Fishermen's, and its successor, if applicable, shall have the right to enforce the terms and conditions of this Declaration, at law or in equity, to prevent the occurrence or continuance of 2 any violation of any provision of this Declaration. In the event enforcement of the terms of this Declaration becomes necessary, the parry violating the terms or conditions of this Declaration shall be liable to Fishermen's or its successor for all costs and fees incurred by Fishermen's or its successor in enforcing the terms of this Declaration, including reasonable attorneys' fees at the trial and appellate levels. 0 6. This Declaration may be modified or amended only upon written agreement executed by Fishermen's and Monroe County, or their successors, if applicable. 0 7. The invalidation of any one of the limitations, covenants or restrictions contained herein shall not affect or invalidate any of the remaining limitations, covenants and restrictions, which shall remain in full force and effect. v) 8. This Declaration shall not restrict Monroe County or any successor owner of the Property from selling, assigning or conveying its interest in the Property or placing a mortgage on the Property. 9. The failure of Fishermen's, or its successor, if applicable, to insist upon strict performance of any of the terms or conditions of this Declaration shall not be deemed to be a waiver of any c rights that Fishermen's, or its successor, if applicable, may have hereunder or at law or equity 0 and shall not be deemed a waiver of any subsequent breach or violation. 10. This Declaration shall be binding on Fishermen's and Monroe County and their E respective successors and assigns and upon any successor owners of the Property. 17 Packet Pg. 2393 0.3.b 11. The invalidation of any provision of this Declaration by judgment or court order shall in no way affect any other provisions of this Declaration. 12. Nothing herein contained shall be deemed to be a gift or dedication of any portion of the Property to the general public or for the general public or for any public purpose whatsoever. 13. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida. Venue for any action arising out of, or in any way connected with this 2 Agreement, shall be in the Circuit Court in Monroe County, Florida. IN WITNESS WHEREOF, the parties hereto have caused this Declaration to be executed by their authorized representatives as of the day and year first above written (Signatures are on the next pages) E 0 0 0 c 0 18 Packet Pg. 2394 0.3.b Signed, sealed and delivered In the presence of: MONROE COUNTY, a political subdivision of the State of Florida Name: Name: By: Name: Title: STATE OF FLORIDA COUNTY OF MONROE 2 The foregoing instrument was acknowledged before me by means of physical E presence or online notarization, this day of 2021, by u as _ of MONROE COUNTY, a political i- subdivision of the State of Florida. He/she is personally known to me or has produced as identification and did - LN not take an oath. 0 E Notary Public, State of Florida My Commission Expires: 0 c 0 19 Packet Pg. 2395 0.3.b Signed, sealed and delivered In the presence of: FISHERMEN'S HEALTH, INC., a Florida not-for-profit corporation Name: Name: By: Name: Title: STATE OF FLORIDA COUNTY OF MIAMI-DADE The foregoing instrument was acknowledged before me by means of physical presence or online notarization, this day of 2021, by the of FISHERMEN'S HEALTH, INC., a E Florida not-for-profit corporation. He is personally known to me or has produced as identification and did i_ not take an oath. 0 LN Notary Public, State of Florida 0 My Commission Expires: 0 c 0 20 Packet Pg. 2396 0.3.b EXHIBIT "A" TO DECLARATION LEGAL DESCRIPTION OF THE PROPERTY Lots A-4, B-4 and D-14, of SOMBRERO SUBDIVISION NO. 6, according to the Plat thereof as recorded in Plat Book 2, Page 93, of the Public Records of Monroe County, Florida. ' Parcel ID # 00321730-000000 E 0 c c c 21 Packet Pg. 2397 0.3.b Exhibit 3 Published Notice of Intent to Exchange County Property E 0 6 Packet Pg. 2398 0.3.b NOTICE OF INTENT TO EXCHANGE COUNTY PROPERTY NOTICE IS HEREBY GIVEN PURSUANT TO F.S. 125.37 that the Board of County Commissioners of Monroe County, Florida shall meet on January 20,2021, at 9:00 a.m. at the Marathon Government Center, 2798 Overseas Highway,Marathon,Florida,or as soon thereafter as may be heard to consider y the adoption of a resolution authorizing the exchange of a portion of real property owned by Monroe a County,Florida,located at 3251 Overseas Highway,Marathon,Florida (Parcel A)for real property T owned by Fishermen's Health, Inc., located at 2855 Overseas Highway, Marathon, Florida (Parcel L B). The purpose of the exchange is to provide for better health care and facilities for the citizens of Monroe County and to provide for additional office space for Constitutional Officers and County Departments. _ Due to COVID precautions, the public can participate in the meeting via the Zoom platform by: Telephone: Dial(646) 518-9805 or(669) 900-6833. When prompted, enter the Webinar ID#913 1016 8691 followed by the 4 key, then *9 to be recognized by the host when item is called. Video Conference via Zoom link: htt ://iiionroecoLinty-fl.,00v/BoccMeetin(,Jan20. When prompted, enter your email address and name. When the item is called, select the "Raised Hand" feature that appears at the bottom of the screen to be recognized by the host. E To report problems with the broadcast or participation in the Zoom webinar,please call(305) 872-8831. COUNTY PROPERTY (Parcel A) 0 The County property is the current Marathon branch library, which has a street address of 3251 Overseas Highway,Marathon,Florida and a portion of the parcel with ID number of 00102310-000000. The County intends to convey a portion of that property (Parcel A) that has a legal description as follows: A parcel of 0 land lying in Section 9, Township 66 South, Range 32 East, Marathon, Monroe County, State of Florida, and being more particularly described by metes and bounds as follows, to-wit: Commencingat t the intersection of the Northeasterly right of way line of 30th Street, also known as Marathon Avenue, according to the recorded plat of Sombrero Subdivision No. 6, as recorded in Plat Book 2 at Page 93 of the Public Records of Monroe County, Florida and the Southeasterly right of way line of U.S. Hi.ghwy No. 1, also known as Overseas Highway, said point also being the Northwest corner of Lot B1, according to said plat of Sombrero Subdivision No. 6,thence N73°53'03"E along the Southeasterly right of way line of said U.S.Highway No. 1 for a distance of 352.00 feet to the Point of Beginning of the parcel of land hereinafter described, thence N73°53'03"E continuing along the said Southeasterly right of way line of U.S. Highway 0 No. 1 for a distance of 108.00 feet to the Northwest corner of the lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida, thence S 16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of 0 the Public Records of Monroe County, Florida, for a distance of 400.00 feet to the Southwest corner of the said lands described in Official Records Book 2862,at Page 1081 of the Public Records of Monroe County Florida, thence N73°53'03"E along the Southeasterly boundary line of the said lands described in Official Records Book 2862,at Page 1081 of the Public Records of Monroe County,Florida,for a distance of 100.00 feet to the Southeast corner of the said lands described in Official Records Book 2862, at Page 1081 of the E Public Records of Monroe County, Florida, thence S16°06'57"E along the Southwesterly boundary line of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County,Florida,for a distance of 115.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1081 of the Public Records of Monroe County, Florida; thence S73°53'03"W Packet Pg. 2399 0.3.b for a distance of 197.00 feet to a point,thence N16°06'57"W for a distance of 160.50 feet to a point, thence N61°06'57"W for a distance of 28.28 feet to a point, thence N16°06'57"W for a distance of 137.00 feet to a point, thence N73°53'03"E for a distance of 20.00 feet to a point, thence N16°06'57"W for a distance of 98.00 feet to a point, thence S73°53'03"W for a distance of 13.50 feet to a point, thence N16°06'57"W for a distance of 67.50 feet to a point, thence N73°53'03"E for a distance of 2.50 feet to a point, thence N16°06'57"W for a distance of 32.00 feet back to the Point of Beginning. Said parcel of land contains -a 65,658.25 Square Feet or 1.51 Acres, more or less. THE FISHERMEN'S HEALTH, INC. PROPERTY (Parcel B) The Fishermen's Health, Inc. property is located at 2855 Overseas Highway, Marathon, Florida and has a = parcel ID number of 00321730-000000. The legal description is as follows: Lots A-4, B-4 and D-14, of SOMBRERO SUBDIVISION NO. 6, according to the Plat thereof as recorded in Plat Book 2, Page 93, of v, the Public Records of Monroe County, Florida. TERMS AND CONDITIONS OF PROPOSED EXCHANGE The County and Fishermen's Health, Inc. agree to convey to each other title to their respective parcels by good and sufficient deeds, free and clear of all liens and encumbrances, except that Parcel B will be encumbered by a restrictive covenant prohibiting the County or any successors in interest from developing u or utilizing Parcel B for medical offices or medical related uses for a period of 15 years. Fishermen's Health, Inc. will pay off a sewer assessment lien on Parcel B in the amount of$7,981.82. Fishermen's Health,Inc.will pay any and all documentary stamp fees required to be paid on both properties. The closing - LN shall take place on the latter of thirty (30) days after the end of the 120 day inspection period or after the County has completed its new library and vacated Parcel A,unless extended in writing by the parties. The closing on each property is contingent on simultaneous closing on the other property. Both properties are being conveyed"as is"with respect to physical condition. Copies of the proposed Resolution and supporting documentation may be obtained from the County Attorney's Office, 1111 12' Street, Suite 408, Key West, FL 33040 or online at: � htt ://monroecountvfl.i iiz2.coiiz/Citizens/L)etail Vleetina.aspx`>1L)=1131 v) ADA ASSISTANCE: If you are a person with a disability who needs special accommodations to participate, contact (305) 292-4441, between the hours of 8:30a.m. — 5:06p.m.,prior to the scheduled meeting; ifyou are hearing or voice-impaired, call "711': 0 Dated at Key West, Florida, this 30th day of December, 2020. c KEVIN MADOK, Clerk of the Circuit Court and (SEAL) ex officio Clerk of the Board of County Commissioners 0 of Monroe County, Florida Publication Dates: Key West Citizen: Wed., 01/06/2021; 01/13/2021 Keys Weekly: Thur., 01/07/2021; 01/14/2021 News Barometer: Fri., 01/08/2021; 01/15/2021 Packet Pg. 2400 0.3.c SAXON & FINK, LLP 2121 PONCE DE LEON BLVD. SUITE 740 CORAL GABLES, FLORIDA 33134 (305) 371-9575 FAX (305) 371-8011 November 6, 2020 Mr. Roman Gastesi v, Monroe County Administrator 1100 Simonton Street Via Federal Express Key West, Florida 33040 Re: Proposed Land Swap between Monroe County and Fishermen's Health, Inc. Monroe County Property: The property located at 3251 Overseas Highway, Marathon, Florida 33050 (the "Library Property"). Fishermen's Property: 2855 Overseas Highway, Marathon, Florida 33050, with a 5,832 square foot commercial building (the Fishermen's Property"). '✓ 0 Dear Mr. Gastesi: 0. 0 I represent Fishermen's Health, Inc., a Florida not-for-profit corporation which owns and operates the hospital located in Marathon, Florida. Over the past year, I and the Fishermen's Health principals have been in talks with Kevin Wilson, Assistant County Administrator and Ginny Stones, Esq. regarding an exchange of the Library Property for the Fishermen's Property. The two properties have been appraised and are very close in U_ value. Purchase and sale agreements for the two properties have been prepared and reviewed by Ginny Stones, Esq. and I believe they are close to being in final form. The following is a summary of the proposed terms for the exchange of the two properties: cv 1. The agreed upon fair market value of each property, based on recent appraisals is $1,465,000. 2. Each purchase and sale agreement provides for the property to be purchased in its "as-is" condition, with a 120 day Inspection Period. 3. The Fishermen's Property will be subject to a Declaration of Restrictions that prohibits the Fishermen's Property from being used for medical uses. 4. The two exchanges shall close simultaneously on the later of (i) thirty (30) days following the end of the Inspection Period, or (ii) thirty (30) days after Monroe County has completed its new library and has vacated the Library Property (subject to all necessary County Commission approvals having been obtained). 5. For the purchase of the Library Property by Fishermen's, Fishermen's will pay the documentary stamps on the Deed, the cost of its's inspections of the Library Packet Pg. 2401 Property, the cost of title searches and title insurance, and the cost of recording the Deed. 6. For the purchase of the Fishermen's Property by Monroe County, Fishermen's will pay the documentary stamps on the Deed and the cost of lien searches. It is my understanding that Section 125.37, Florida Statures governs the proposed exchange. If that is correct, the statute states that a "notice setting forth the terms and conditions of any such exchange of property shall be first published, once a week for at least 2 weeks, in a newspaper of general circulation published in the county, before the adoption by the board of county commissioners of a resolution authorizing the exchange of properties". I and the Fishermen's team will appreciate the assistance of you and Mr. Shillinger in � preparing the required notice and getting it published and in placing this matter on the County Commission agenda. If possible we would like to get on the December 9, 2020 agenda. Please let me Imow if you need any additional information and what we can do to expedite this matter. I can be reached by email at kylesaxon(c saxonfink.com or by telephone at 305-371-9575 or on my cell phone at 305-495-5001. Sincerely yours, c KYLE R. SAXON P cc: Bob Shillinger, Esq. E Monroe County Attorney 111 1211' Street, Suite 408 Via Federal Express Key West, FL 3 3 040 Kevin G. Wilson, P. E. Via Email CD Assistant County Administrator c4 U Packet Pg. 2402 (dasmmfue jq!l HiW isgdeq) suospedwoolm &fue jq!-1:juawLjoejjV co . ; k ! \� }\o [ \ ) : {aa ) \ \\o \\\ \ - / § § 4 ~~ : _ o § \ \ ) _ 2f\ \ § / E # : / o oo \\ 7 \ 0 �z \\ \\ § \ / f \ Z} \=\\ § \ \ \ \ { � ) & ; { ; / 7aJi \ \ / \{ }\ } § ) -Z - - (� ) \ / E ) ) ) {ƒ) ) \ § [i3 § } - 2 - _ _ - - ; ) [ - - - _ _ _ / : \5 /\ [ [} ) { \ \ 2o ) \ \ \ \ j ) 7r ©fzz {0 < Em | & &% _ < 2 ; { [ § E § = : % „ : a : § § ; �a " & � #z2 : o77 : J : � � . » _ Z4r /6 2 ! ! ! 0.3.e 3144 No the€de Drive,Ste 201 � Key West FL 33(40 APPRAISAL off'im t3051296-4563 , [`«sN,t3031 312.21I€1 Website:th-kecsrrpp,Htsals.eom R?-tti�d:j inn a„#la-kUJ�;21ai�t.a�sa�€�.e•;o�tt November 17, 2020 Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL(Florida Keys) 102050 Overseas Highway Key Largo, Florida 33037 s Appraisal Report: George Dolezal Monroe County Branch Library 3251 Overseas Highway Marathon, Florida 33050 P.O.421000192 Our File No.: 200-20 0 Dear Mr. Wilson: We have performed an appraisal assignment and estimate of the "As Is"Market Value of the Fee Simple Iq Estate of the subject property commonly known, the Marathon Library, 3251 Overseas Highway, LN CU Marathon, Florida, as of October 29, 2020. The reader is advised to review the Scope of Work section within this report. 0 The subject property is located on the Overseas Highway,within the City of Marathon at approximately 9 mile market 49. The subject site is a proposed split-out of a large Monroe County owned parcel consisting of 2.61 acres of uplands, plus 2.40 acres of environmental sensitive land. A survey of the subj ectproperty prepared by Florida Keys Land Surveying,dated 10/02/2020 was made available which is included herein. However,the appraisers could not verify if there are any easements or encroachments as this is a split-out of a large parcel. The site would be an interior irregular parcel with 108 feet of frontage along the southerly side of the Overseas Highway and extending southerly 515 linear feet in depth. Thus, according to the proposed split-out and the survey provided, the subject site will consist E of approximately 43,560 square feet of upland area,plus 22,098 square of environmentally sensitive for U a total site area of 65,658 square feet or 1.51 acres. The subject site is improved with an elevated CBS/Masonry library building containing a gross building area of 7,055 square feet. In addition,there is a large covered-canopy, covered walkway,porches,plus an open loading ramp totaling 2,376 square feet. The subject has historically been utilized as a Monroe County Branch library, which was built in 1982 per a plaque on the building. The entire property is owner-occupied. We personally inspected the subj ect building and site improvements. The overall site Packet Pg. 2404 0.3.e Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL(Florida Keys) November 17, 2020 Page 2 area and dimensions were referenced from a Monroe County staff. The building dimensions were referenced from the survey and verified by on site measurements. This report contains the results of our investigation and analysis made in order to furnish an estimate of the Market Value of the Fee Simple Estate of the Subject Property. The Fee Simple Estate is the unencumbered value of the subject property; basically, market rents and terms are considered with no LN regard to existing leases and terms. The subj ectproperty consists of an owner-occupied property,which _2 is not encumbered by any long term leases. Therefore, only the Fee Simple Interest is included herein. However, the reader is cautioned that a title search was not made; thus, no other encumbrances are 2 considered herein. The County is considering selling the library portion of the overall government complex to the adjacent Fishermen's Community Hospital Market Value is defined as the most probable price in cash(or its equivalency)for which the appraised property will sell in a competitive market under all conditions requisite to a fair sale. Market value assumes a normal or reasonable time for exposure on the open market. Based on market analysis and research,it is our opinion that the "As Is"Market Value of the Fee Simple Estate ofthe Subject Property,commonly known as 3251 Overseas Highway, Marathon,Florida,33050, subject to split-out from a larger parcel,definitions, assumptions and limiting conditions, as of October . 29, 2020 is: ONE MILLION FIVE HUNDRED FORTY THOUSAND DOLLARS ($1,540,000) � The "As Is" Market Value for the subject property considers no personal property. N There appears to be spalling under the commercial canopy. At the time of this appraisal cost estimates N for repair were not available. It is not possible to estimate without a contract's or engineers estimate. N Therefore, the cost to cure the spalling has not been deducted. a� This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a)of the Uniform Standards of Professional Appraisal Practice. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning,and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. This confidential report is prepared for the sole use and benefit of the Monroe County Board of County Commissioners, is based, in part,upon documents,writings, and information owned and possessed by Packet Pg. 2405 0.3.e Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL(Florida Keys) November 17, 2020 Page 3 the client, Monroe County. This report is provided for informational purposes only to third parties authorized to receive it. Appraisal Company of Key West assumes no responsibility if this report is used in any other manner. If you have any questions regarding this appraisal report,please feel free to contact me. Thank you for giving me the opportunity to provide this service for you. This transmittal letter must remain attached LN to the report,which contains 96 pages including related exhibits, in order for the value opinion set forth _2 to be considered valid. s Respectfully submitted, CO �A c qq ®Ve W James E. Wilson, MAI, MIRCS, President Richard Padron, CCIM, MSA State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ544 . email. iintO`th-1_cys<ipp <ii;!,jis cone email: richardp(a�fla-keysa�raisals.com Report Attached: c R:\Comm-20\200-20\Comm-20-200.wpd w cv cv CD cv U Packet Pg. 2406 0.3.e APPRAISAL REPORT Property Type: COUNTY PUBLIC LIBRARYTOSSIBLE OFFICE CONVERSION Property Commonly Known As: y GEORGE DOLEZAL MONROE COUNTY BRANCH LIBRARY 3251 OVERSEAS HIGHWAY, GULF MARATHON,MONROE COUNTY, FLORIDA 33050 Prepared For: MR. KEVIN G.WILSON,P.E. ASSISTANT COUNTY ADMINISTRATOR MONROE COUNTY,FL(FLORIDA KEYS) U 102050 OVERSEAS HIGHWAY KEY LARGO,FL 33037 Valuation Date: OCTOBER 29,2020 c c� Prepared By: w cv James E. Wilson, MAI, MRICS,President Richard Padron, CCIM, MSA State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ 544 `14 APPRAISAL COMPANY OF KEY WEST 3144 Northside Drive, Suite 201 Key West, Florida 33040 Our File No.: 200-20 Packet Pg. 2407 Appraisal Report 3251 Overseas Highway, Marathon, FL TABLE OF CONTENTS COVER PAGE LETTER OF TRANSMITTAL SUMMARY OF FACTS AND CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 SUBJECT PROPERTY PHOTOGRAPHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 LN ASSUMPTIONS AND LIMITING CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 STATEMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 FLORIDA KEYS MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 LOCATION MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 0 AERIAL PLAT MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 (3' SURVEY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 PURPOSE & INTENDED USE OF THE APPRAISAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 .2 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 0 PROPERTY RIGHTS APPRAISED & DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 04 SUBJECT'S MARKET AREA (NEIGHBORHOOD) ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . 28 04 CD DEMOGRAPHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 04 MARKETING TIME/EXPOSURE TIME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 E OWNERSHIP /SALES HISTORY/HISTORY OF THE SUBJECT . . . . . . . . . . . . . . . . . . . . . . . . 35 ZONING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 REAL ESTATE TAX AND ASSESSMENT AND BURDEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Appraisal Company of Key West Page I Packet Pg. 2408 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL TABLE OF CONTENTS (Continued) PROPOSED SUBJECT SITE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 DESCRIPTION OF THE SUBJECT PROPERTY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 FLOODMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 BUILDING SKETCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 HIGHEST AND BEST USE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 SCOPEOF WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 ca COST APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 0 THE INCOME APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 THE SALES COMPARISON APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 RECONCILIATION AND CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 W CERTIFICATE OF APPRAISAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 0 ADDENDA QUALIFICATIONS OF APPRAISER JAMES E. WILSON . . . . . . . . . . . . . . . . . . . . . . . . 87 04 QUALIFICATIONS OF APPRAISER RICHARD PADRON . . . . . . . . . . . . . . . . . . . . . . . 91 cv CD PURCHASE ORDER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 04 Appraisal Company of Key West Page 2 Packet Pg. 2409 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUMMARY OF FACTS AND CONCLUSIONS Subject Property: George Dolezal Monroe County Branch Library 3251 Overseas Highway, Gulf Marathon, Monroe County, Florida 33050 Property Type: County Public Library/Possible Office Conversion Overall Land Size: Site Sizes and Description s Upland Emir.Sensitive (Street Site Size Laud Size Site Size Site Size: .Parcel Assessor's# - Description Frontage Depth Sq.R. Acres Sq,Ft. Acres Split-Out of: 00102310-000000'9 6632 Key Vacas Pt.Lot 1(Metes&Bounds) 108.00 515.00 43,560 1.00 22,098 0.51 Total 108.00 43,560 1.00 22,098 0.51 �y 0 Zoning: Public Use, zoning district, City of Marathon, Florida � Flood Zone: FEMA Map 12087C1378K February 18, 2005 Zone: AE(Elevations 7 and 8 Feet) Improvement Site: Building Description 3251 Overseas Highway, Marathon, FL 33050 1� N GBA Porch/ ' Unit Type Size Canopy Year N No. Description Use / Type Construction Sq. Ft. Sq. Ft. Built 1 First Level Library/Office CBS/Masonry 7,055 2,376 1982 a Tota 1 7,051[ 2,3761 Highest and Best Use: As Improved for Library-Use As Proposed for Possible Purchase and Conversion into Medical Office Use Appraisal Company of Key West Page 3 Packet Pg. 2410 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Date of Site Visit: October 29, 2020 Valuation Date: October 29, 2020 Report Date: November 17, 2020 Value Indications: Reconciliation Fee SimpleLn Valuation Method: Market Value Cost Approach N/A Income Approach: $1,540,000 Sales Comparison Approach $1,543,000 As Is" Market Value of the Fee Simple Estate of the Subject Property, as of October $1,540,000 29, 2020 (Rounded): W Exposure Time: 6 to 18 Months based on a list price within 5 percent of appraised value 0 and based on stable economic conditions. ru 9) Extraordinary Assumptions: Please refer to the Assumptions and Limiting Conditions regarding the subject property from the overall parent, county-owned tract. cv As of the effective date, the short and long term impact on the market from the COVID-19 virus is unknown; however, it is reasonable to assume that the current restrictions in market activity due to the virus will E extend marketing times at beyond the current levels. At this time, the appraisers assume that the delay in market activity, but not a significant long-term shift in demand or supply which would result in a change in market prices. These are considered to be extraordinary assumptions which, if proven false should impact the opinions and conclusions expressed herein. The impact could fluctuate over time. Appraisal Company of Key West Page 4 Packet Pg. 2411 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL There appears to be spalling under the commercial canopy. At the time of this appraisal, cost estimates for repair were not available. It is not possible to estimate without a contractor's bid or engineer's report. Therefore, the cost to cure the spalling has not been deducted herein. Hypothetical Assumptions: None CO c cv cv cv Appraisal Company of Key West Page S Packet Pg. 2412 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL APPRAISAL REPORT This is an appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a)of the Uniform Standards of Professional Appraisal Practice for an appraisal report. As such, it might not include full discussions of the data,reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning,and analyses is retained in the appraisers' file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not 2 responsible for unauthorized use of this report. The reader is referred to the Scope of Work section of this report. CLIENT: Mr. Kevin G. Wilson, P.E. �+ Assistant County Administrator Monroe County, FL(Florida Keys) 102050 Overseas Highway Key Largo, FL 33037 0 OWNER OF Monroe County, Florida RECORD: 500 Whitehead Street Key West, Florida 33040 0 APPRAISERS: James E. Wilson, MAI, MRICS, President State-certified general real estate appraiser RZ 2164 cv Richard Padron, CCIM, MSA State-certified general real estate appraiser RZ 544 N SUBJECT: George Dolezal Monroe County Branch Library 3251 Overseas Highway Gulf Marathon, Monroe County, Florida 33050 Appraisal Company of Key West Page 6 Packet Pg. 2413 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY t � rt � s � Street View Looking Easterly the Overseas Hi _hway N N W u Street View Looking Westerly Along the Overseas Hi _hwgy Appraisal Company of Key West Page 7 Packet Pg. 2414 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY cn Front View of the Subject ProPeM Looking SoutheasterlX N N N Front View of the Subject Property Looking SoutheasterlX Appraisal Company of Key West Page 8 Packet Pg. 2415 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY T) q V Front View of the Subject Property Looking SouthwesterlX m v r 711 , a N, r N U Rear View of Subject Property Looking NortheasterlX Appraisal Company of Key West Page 9 Packet Pg. 2416 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY � F 0 ME 0 CJ View of the Library t F `� m �g•ti : N N N U View of the Library Appraisal Company of Key West Page 10 Packet Pg. 2417 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL c c w cv cv CD cv u Appraisal Company of Key West Page 11 Packet Pg. 2418 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY +t 5 F fr CJ View of the Library ,ww 1+ eu• �y 4 � .. , � � P) � � �{ � tiE t •� CV 3,t CV , N View of the Library Appraisal Company of Key West Page 12 Packet Pg. 2419 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY T�11y� £F sy' �s9 y tas = Interior View of Employee Kitchen � r u ( 4F h �+ Interior View of the Employee Restroom Appraisal Company of Key West Page 13 Packet Pg. 2420 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY } S41"'` cn kS wr r � View of the Public Restroom S: View of the Canopy and Covered WalkwaX Appraisal Company of Key West Page 14 Packet Pg. 2421 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY � rit a W View of Library c r CV r® N N u View of the Canopy and Covered Walkway and Spalling Appraisal Company of Key West Page 15 Packet Pg. 2422 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY i Ott CJ View of Spalling st3 D CV CD c44 S: u View of Spallin Appraisal Company of Key West Page 16 Packet Pg. 2423 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a)of the Uniform Standards of Professional Appraisal Practice. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning,and analyses � is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. This confidential report is prepared for the sole use and benefit of Monroe County Board of County _2 Commissioners, is based, in part,upon documents,writings, and information owned and possessed by the client, Monroe County. This report is provided for informational purposes only to third parties authorized to receive it. Appraisal Company of Key West assumes no responsibility if this report is used v, in any other manner. THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS: 0 This appraisal report has been prepared to comply with our understanding of the requirements of the � Uniform Standards of Professional Appraisal Practice. Market Value is defined as the most probable price in cash(or its equivalency)for which the appraised property will sell in a competitive market under all conditions requisite to a fair sale. Market value assumes a normal or reasonable time for exposure on the open market. As of the effective date, the short and long term impact on the market from the COVID-19 virus is 0 unknown; however, it is reasonable to assume that the current restrictions in market activity due to the 9 virus will extend marketing times at beyond the current levels. At this time,the appraisers assume that the delay in market activity,but not a significant long-term shift in demand or supply which would result in a change in market prices. These are considered to be extraordinary assumptions which, if proven false should impact the opinions and conclusions expressed herein. The impact could fluctuate over CD' N time. N The subject site is a proposed split-out of a large Monroe County owned 2.61 acre tract of uplands,plus 2.40 acres of environmental sensitive land. A survey of the subject property prepared by Florida Keys Land Surveying, dated 10/02/2020 was made available which is included herein. However, the appraisers could not verify if there are any easements or encroachments as this is a split-out of a larger parcel. The site would be an interior irregular parcel with 108 feet of frontage along the southerly side of the Overseas Highway and extending southerly 515 linear feet in depth. Thus, according to the proposed split-out and the survey provided,the subject site will consists of approximately 43,560 square Appraisal Company of Key West Page 17 Packet Pg. 2424 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL feet or 1.0 acres of upland area, plus 22,098 square of environmental sensitive for a total site area of 65,658 square feet or 1.51 acres. No responsibility is taken by this office for the accuracy or in regard to any questions on the nature of encroachments, encumbrances, or dissimilarities in measurement. Any maps or plats reproduced and included in this report are intended only for the purpose of showing spatial relationships. They are not measured surveys nor measured maps, and no responsibility for cartographic or surveying errors is assumed. The appraisers reserve the right to change the final indicated value herein, if subsequent surveys are made available and any encroachments and/or easements area noted. There appears to be spalling under the commercial canopy. At the time of this appraisal, cost estimates for repair were not available. It is not possible to estimate without a contractor's bid or engineer's report. Therefore, the cost to cure the spalling has not been deducted herein. v, This appraisal is to be used in whole and not in part, in particular,no part of the contents of this report -- shall be conveyed to the public through advertising,public relations,news,sales or other media,without the written consent and approval of the author,particularly as to valuation conclusions, the identity of the appraisers or firm with which he or she is connected. No responsibility is assumed by the Appraisers for matters which are of legal nature,nor is any opinion M T- on the title rendered herewith. Good title is assumed as a title search was not made available. The property has been appraised as though free of liens and encumbrances, except as herein described. Delinquent charges for solid waste collection stormwater,or central sewage system or other liens against c q g g Y g the subject property have not been considered in the valuation contained herein as a title search was note made available or conducted by the appraisers. The management of the property is assumed to be competent and the ownership in responsible hands. N r The management of the property is assumed to be competent and the ownership in responsible hands. ' N N The Appraisers herein are not required to give testimony in court unless arrangements have been previously made thereof. E The Appraisers assume that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The Appraisers assume no responsibility for such conditions, or for engineering which might be required to discover such factors. Appraisal Company of Key West Page 18 Packet Pg. 2425 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Information, estimates and opinions furnished to the appraisers, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no respon- sibility for accuracy of such items furnished to the Appraisers can be assumed by the Appraisers. The Americans with Disabilities Act("ADA")became effective January 26, 1992. The appraisers have not made a specific survey or analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property,together with a detailed analysis of the requirements of the ADA,could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a L negative effect upon the value of the property. Since the appraisers have no direct evidence relating to 2 this issue, a possible noncompliance with the requirements of the ADA in estimating the value of the M property has not been considered. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the Appraisers are affiliated. CO The undersigned Appraisers have no present or contemplated future interest in the property and the compensation is in no manner contingent upon the value reported. Possession of this report does not carry with it the right of publication or advertisement of any of its M conclusions,nor may any except the applicant use the same for any purpose without the previous written consent of the appraisers or the applicant. This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which c PP g � the Appraisers are affiliated. This appraisal report is in conformity with the Uniform Standards of Professional Appraisal Practices and this appraisal assignment was not based on a requested minimum valuation,a specific valuation,or the approval of a loan. ' N N The discovery of latent conditions is beyond the scope of this appraisal. Detection of latent conditions requires the expertise of qualified persons such as architects and engineers. Latent conditions include, E among other things, non-apparent structural conditions; presence of prohibited hazardous wastes; presence of radon gas, methane gas, asbestos, lead, petroleum products and other air, soil, or water contaminants; and many other conditions too numerous to mention which may affect the value of the property being appraised. An environmental site assessment report for subject property was not provided. The appraisers are not an expert in the field of environmental hazards. The appraiser has Appraisal Company of Key West Page 19 Packet Pg. 2426 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL assumed that subj ectproperty is environmentally"clean".Asa result,if environmentally cleanup and/or remediation is required then the subject's market value could be adversely affected. ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraisers conducting this appraisal, nor the APPRAISAL COMPANY OF KEY WEST makes any warranty,express or implied,to property covered by this appraisal, and neither shall have any liability to any person for differences in the value of the appraised property, or other damages, resulting from discovery of latent conditions (including those mentioned above and others) on, or in proximity to, the appraised lands. We hereby certify that to the best of our knowledge and belief the statements of fact contained in this report, upon which the analyses, opinions and conclusions expressed herein are based, are true and correct; also this report sets forth all the limiting conditions affecting the analyses, opinions and conclusions contained in this report; also this report has been made in conformity with the Appraisal v, Institute. 0 0 9 cv cv cv Appraisal Company of Key West Page 20 Packet Pg. 2427 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL STATE MAP 3 J a ff7 CV CD CD CV CD CV u Appraisal Company of Key West Page 21 Packet Pg. 2428 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL FLORIDA KEYS MAP FLORIDA Key Largo MM 99-106 Tavernier MM 91-92 Plantation Key MM 86-90 E5- Windley Key MM84 Islamorada ¢' Upper Matecumbe Key MM80 N d o N E CD _ Lower Matecumbe Key MM74 - r wr & Flesta Key MM70 r� Layton ><S W `� Long Key MM66-69 'ConhKeKyys MM61 &ll is -Grassy Key MM_57-60 ravel Key -- -,rathon Shores Key Colony Beach MM� Yaca Key Marathon MM50 r eon Key MM45 & LO 7 e Bridge N W OpJZ",� Sun ne Key MM 40 Q� iiBia. pai Honda MM 37-38 30- • dt een aYic Mid e Torqq 8 H amrod MM 2b-227 $3ummerland MM 24-25 Sugasl2�a? Key2MM2 2-23 Lower Sugarloaf Key MM 17 Saddlebunch Keys MM 13-16 ff7 ig Coppitt MM 10 Boca Chica MM 7-8 Stock Island MM 5 �y • Key West MM 0-4 r N CD U Appraisal Company of Key West Page 22 Packet Pg. 2429 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL LOCATION MAP T �.. c c D w cv cv CD cv u Appraisal Company of Key West Page 23 Packet Pg. 2430 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL AERIAL PLAT MAP OF PARENT TRACT ,�,, ftblic.n ' Monroe County, FL Overview � 1 r � Fr i Legend Major Roads y - a Centerline � I o Hooks t8 I�t•; tt s ,.,, Road Center RightsofWay Cando Building ¢+ %Conservation � Easement O �I Key Names �:. Subdivisions � n G Parcels Parcel ID 00102310-000000 Alternate ID 1119512 Owner Address MONROECOUNTYFLA Sec/Twp/Rng 09/66/32 Class COUNTY 500WHITEHEADST Property Address 3103 OVERSEAS HWY KEYWEST,FL33040 MARATHON District n/a Brief Tax Description 9 66 32 KEY VACCAS PT LOT l OR15-374/76 OR284-18/20 �. (Note:Not to be used on legs I documents) Data seated:8/16/2017 Last Data Uploaded:e/16/20172:31:09AM f.1 Developedby Scheid.The Sdmeider Corporation N N Appraisal Company of Key West Page 24 Packet Pg. 2431 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SURVEY OF SPLIT-OUT OF SUBJECT PROPERTY 1,15���tf cu r jech st �10 r— III � s cu s� V 1t t� t x • s � s � ffi It � uq j IfI l P' N N E .- VAi OP H0Uf,D KY 5UFY&Y FLORIDA KEYS LAAJU SURVLYiNG . ... Appraisal Company of Key West Page 25 Packet Pg. 2432 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL PURPOSE AND INTENDED USE OF THE APPRAISAL The purpose of this appraisal is to estimate of the "As Is"Market Value of the Fee Simple Estate of the subject property commonly known as 3251 Overseas Highway, Gulf, Marathon,Florida, as of October 29, 2020. The intended use of this appraisal is for possible split-out and sale by Monroe County Board of County Commissioners to the adjacent Fisherman's Hospital The intended user of the appraisal report is Monroe County Board of County Commissioners. This appraisal is for exclusive use by Monroe County Board of County Commissioners. Parties that may receive a copy of the apprisal or review report do not become intended users unless specified by the client at the time of engagement. MARKET VALUE DEFINITION Market Value: as defined by the Office of the Comptroller of the Currency (OCC) is: c "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and Iq assuming the price is not affected by undue stimulus. Implicit in this definition is consummation of a Z, sale as of a specified date and the passing of title from seller to buyer under conditions whereby: L 0 1) buyer and seller are typically motivated; 2) both parties are well informed or well advised and each acting in what he considers his own best interest; 3) a reasonable time is allowed for exposure in the open market; N 4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements thereto; and 5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Appraisal Company of Key West Page 26 Packet Pg. 2433 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL PROPERTY RIGHTS APPRAISED & DEFINITIONS This appraisal is made with the understanding that the present ownership of the property includes all the rights that may lawfully be held under a Fee Simple Estate. These rights are sometimes referred to in appraisal literature as the "bundle of rights." It includes the right to use, keep others from using, sell, rent or otherwise dispose of the property. The elements which have been included in this appraisal are a the land and any existing improvements. Fee Simple Estate Definition: According to The Dictionary of Real Estate Appraisal, Sixth Edition, "Fee Simple Estate is absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." This report contains the results of our investigation and analysis made in order to furnish an estimate of T) the Market Value o the Fee Simple Estate of the subject roe The subject roe consists of an .f P J property.�'� J property�' � owner operated property which is not encumbered by any long term leases. Therefore, only the Fee `✓ Simple Interest is included herein. However, the reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. c 0 D N N CD U Appraisal Company of Key West Page 27 Packet Pg. 2434 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL LEGAL DESCRIPTION: The legal description for the proposed split-out of the subject property is as follows. LEGAL_ Df-SGRIPTION **(AUTHORED 13Y THE UNDERSIGNED)" A parcel of land lying in Section 9, Township GG South, Range 32 East, Marathon, Monroe County, State of Florida, and being more particularly described by metes and bounds as follows, to-wit: — Commencing at the intersection of the Northeasterly righht of way line of 30th Street, also known a5 Marathon Avenue, according to the recorded plat of Sombrero 5ubdjen5ion = No. G, as recorded in Plat book 2 at page 93 of the public records of Monroe county, and the Southeasterly right of way line of U.S. Highway No. 1 , also known as Overseas Highway, Said point also being the. Northwest corner of lot B 1 , according to 5ajd plat of Sombrero Subdivision No. G, thence N73'53'03"E a,lonc3 the Southeasterly right of way Ilene of said U.S. Highway No. I for a distance of 352.00 feet to the Point of Beginning ca of the parcel of land hereinafter de5crjbed; thence N73'53'03"F continuing along the said Southeasterly right of ,,way Ijne of U.S. Highway No. I for a distance of 108.00 feet 5 to the Northwest corner of the lands described in Official Records Book 28G2, at Page 1081 of the Public Records of Monroe County, Florida; thence 5100057"If along the Southwesterly boundary line of the Said lands described in Official Records Book 2862, at Page 1051 of the Public Records of Monroe County, Florida, for a distance of 400.00 feet to the Southwest garner of the 5ajd lands described in Official Records Book 28G2, at Page 1081 of the Public KecorJ5 of Monroe County, Florida; thence: N73"53'03"F along the Southeasterly boundary line of the said lands described in Official '✓ Records Book 28G2, at Page 1081 of the Public Records of Monroe County, Florida, for a distance: of 100.00 feet to the Southeast corner of the said lands desc,rfbed in Official ( ecord5 Bock 28G2, at Page 1081 of the Public Reoord5 of Monroe County, Florida; thence 51 G°OG'57"E along the Southwesterly boundary line of the said lands de5cr{bed in Official R.ecord5 Book 28G2, at Page 1051 of the Public records of Monroe County, I'lori;da, for a 6115tance of J 15.00 feet to the Southwest corner of the said lands described in Official Records Book 2862, at Page 1051 of the Public Records of Monroe County, Florida; thence 57315303"W for a distance of 197.00 feet to a point; thence N I G'OG'57"W for a distance of I GO.5O feet to a point; thence NG I°OG'57'"W for a distance of 25.28 feet to a point; thence N I G'0057"W for a distance of 137.00 feet to a point; thence N7315303"If for a distance of 20,00 feet CD to a point; thence N I G"OG'57"W for a dj5tance of 9B.00 feet to a point; thence 573°53'03"W for distance of 13.50 feet to a point; thence N I G'OG"57'"W for a Ji5tance of G7.50 feet to a point; thence N73*5.3'03"E for a distance of 2.50 feet to a Point; � thence N I G'0057"W for a distance of 32.00 feet back to the Point of Beginning. Said parcel of land contains G5,G58.25 Square Feet or 1 ,5 1 Acres, more or less. Appraisal Company of Key West Page 28 Packet Pg. 2435 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL MARKET AREA (NEIGHBORHOOD)ANALYSIS The subject property is located in the incorporated area commonly known as the City of Marathon, Florida. Marathon was incorporated on November 30, 1999. It is located approximately at mile marker 49 approximately 44 miles northeasterly from Key West, stretching across twenty-seven bridges. The property is located in a mixed commercial/residential waterfront area in the heart of downtown Ch Marathon's commercial area providing all of the services necessary within an urban area. Being a main population area of the Middle Keys, Marathon offers much in terms of commerce,residential housing LN and service as well as industrial areas. This is an area of mixed zoning and uses which services the demands and requirements of the Middle Keys market. s The subject property is located on the southerly side of the Overseas Highway also known as U.S. Highway No.1. The commercial uses along U. S. Highway No. 1 include hotels, motels, restaurants, professional offices,hospital(adjacent easterly from the subj ect),retail shops and strip shopping centers, tourist-related businesses, service establishments,recreational and commercial marinas,marine related uses, and mobile home parks. The surrounding uses on Coco Plum Drive consist mostly of marinas, restaurants, and marine related businesses. The property is located about two miles westerly from the Marathon Airport. The Marathon Airport is used for privately owned airplanes, as well as for light commercial traffic which services the population Iq area. The airport was upgraded with a new terminal. Although the main commercial carrier at the LN Marathon Airport has ceased service,negotiations are on-going. Rent concessions and other perks willcu have to be made in order to secure the new carrier. Marathon also offers the only substantially sized shopping district for the Middle Keys community, having two large commercial shopping centers, as c well as many smaller strip shopping centers,utility company offices, Monroe County offices, schools, etc. Throughout the Florida Keys, only Key West and Key Largo provide a similar variety of services. The subject property is located within the hub, Central Business District, of Marathon. Marathon has developed steadily over the past ten years;this development accelerated as a result of the conversion of CD the Overseas Highway from a two-lane to a four-lane highway in the late 1980's and early 1990's through a� Marathon. E Marathon has recently opened three major motel/hotels with marinas, as well as the redevelopment of older mom and pop motels. The most recent franchise hotel is the Courtyard Marriott which purchased an adjacent mom and pop motels which also include a marina. In 2015 the luxury Hyatt Hotel and Faro Blanco Marina were opened. This was a historic luxury resort built in the 1050's that was totally rebuilt with 125 rooms, a marina and gourmet restaurant. Most recently the Singh development group built Appraisal Company of Key West Page 29 Packet Pg. 2436 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL a 199-unit ocean front resort with marina, spa and luxury hotel, the Isa Bella Beach Resort and Spa. Furthermore, there are additional proposed developments anticipated that within the next few years. S"ply and Demand The supply of commercial space is limited and new commercial construction has been restricted since 1996 due to a commercial building moratorium that had been in effect until the commercial rate of Ch growth ordinance (NROGO) was implemented. Therefore, the current and ongoing regulations are expected to place upward pressure on price levels of existing units. Even to a greater extent because of , the difficulty and high cost in obtaining building permits for new construction, both residential and commercial s Commercial real estate experienced a decline of 30% to 60% since the economic downturn in 2007- 2008. Although it appears that generally the market reached the bottom at the end of 2011 and stabilized in 2012. However, there have been more transactions since 2012, lessening the supply and indicating a strengthening market. However, some sectors of the market have not completely recovered from the peak in 2005. IMPLEMENTATION OF COMMERCIAL R.O.G.O. Sales of vacant, commercially zoned parcels within the Florida Keys have dwindled over the past few Iq years due to a commercial building moratorium which existed until 2002,when the non-residential rate of growth ordinance NROGO went into effect. This system is similar to the residential R.O.G.O.system in that it awards building permits based on a point system. The Non-Residential Rate of Growth Ordinance (N.R.O.G.O.) was enacted with an effective date of January 1, 2002. Under the new and c current regulations the maximum allowable square footage for new commercial development is 21500 9 square feet per parcel. The ordinance does provide for Administrative Relief in the event that the 0. applicant is not successful in obtaining an allocation award, a permit, within at least three of four consecutive annual allocation periods. The remedies for relief are to grant the applicant an allocation award, offer to purchase the property, or suggest such other relief as may be necessary and appropriate. N N Saply and Demand Analysis for the Subject Property: The subject property is a large library building servicing Marathon. The subject is adjacent to Fishermen's Community Hospital and is proximate to the city center and shopping areas. The potential for new competing facilities is remote. The subject could be easily converted to professional office or medical office. However, medical office use would require more of a substantial build-out. General Economic Conditions: The Florida Keys have flourished over the past two decades with tourism developing as the County's primary economic base. The County has had tremendous success with its advertising efforts and Appraisal Company of Key West Page 30 Packet Pg. 2437 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL attraction of tourists of all Nationalities. Hotels and motel facilities in Monroe County have flourished over the past decade. However, we experienced a decrease in tourism as a result of the very active hurricane seasons of 2004 and 2005, followed by the national decline in the real estate housing market and the economic recession and credit crisis. However, it is unknown how long it will take for the Florida Keys to recover because of the current pandemic. Even though,the tourism and the real estate market have historically rebounded quickly,especially the hospitality industry,because of our location. Ch The local tourist industry was strong in 2019 and the market was up for the first few months in 2020, prior to the onset of COVID-19 Pandemic reaching the United States. The recovery once all businesses are open may be slow, although pent-up demand is present as the County has been closed off from s outside visitors for approximately two months. Therefore,in our opinion local and national economics will help bring about continued rehabilitation and restoration to the surrounding area, though we have been experiencing appreciation in the housing market and industrial properties due to the limited supply and great demand. Conclusion: 0 In summary, the subject property is located in the Middle Keys where there is a concentration of services employment and sho m Only Key West and Key Largo offer similar services each is shopping. Y Y Y g located 40 to 60 miles away. Residential uses are located off the highway;these neighborhoods,as well M as neighboring communities support the commercial businesses in the area. In 1994-1995, Monroe County moved some of its divisions to a new facility in Marathon across the highway from the subject . property, increasing the employment population,which requires more goods and services. Marathon's central location is appealing, especially with the increasing availability of services. The neighborhood may be undergoing an increase in desirability in the future due to improvements with respect to goods c and services and its accessibility to the mainland. Two such developments,representative of Marathon's central region location, include the opening of Home Depot, Office Depot and two Walgreens Drug stores. Most recently the Winn Dixie is remodeling and expanding their store. Furthermore,there has been the redevelopment of Knights Key with a new resort hotel with a large marina, the Hyatt Hotel, Faro Blanco and marina, and Courtyard Marriott. N N The surrounding structures are generally well maintained in average to above average condition. The considerable amount of automobile traffic along U.S. Highway No. 1, a.k.a. the Overseas Highway, E provides good exposure to this area. We anticipate continued improvement in the general quality of the neighborhood, particularly with the increased demand for this type of property due to building and environmental restrictions placed on all properties in the Florida Keys. Appraisal Company of Key West Page 31 Packet Pg. 2438 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL The following average daily two-way traffic data for U.S. Highway No. 1 was provided by the State of Florida Department of Transportation: Average Daily Traffic Count (Both Directions) D.O.T. Station Location 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 66 ESR 5/US 1,100'N 7 Mile Bridge 12,600E 13,400 12,300E 15,100 16,700 17,�1500 12,800 11,900 12,800 65 E SR 5/US 1,325U N Channel 5 Bridge 12,000E 12,000 12,200E 10,400 11,200 11, 00 11,500 12,900 12,700 -� 45 ESRS/US1,200'NKeyvacaBridge 20,000: 24,000 25,000: 29,500 29,500 27,000E 27,000E 24,000E 24.000 24,000 Survey of Market Participants The appraisers interviewed or obtained information from the following market participants including Claude J. Gardner Jr., (Berkshire and Hathaway Realty), Curtis A. Skomp, CCIM, (RE/Max), Brian Schmitt,Coldwell Bankers Schmitt Real Estate,Jo Ann Cook,Ocean Sotheby's International Realty and George Garrett,Marathon Planning Director. Other commercial Realtors,real estate investors,tenants and landlords, were also contacted in our research. t� In analyzing the active listings of commercial and mixed use properties, it appears that they have been Z on the market from about two months to 11 months with continued reduction in listing prices. The mid point of the listings is about nine months. Well-priced properties have sold.The closed comparable sales Iq analyzed for this appraisal indicated days on market from five to 661 days with a mean at 226 days and a medium at 161 days. A number of active listings for commercial and mixed-use properties are noted as follows. Active Listing of Mixed-Use'Properties in the Florida Keys c t� MLS'. list Sq.Ft./ Land S/SF S/SF Days Number Property Address Keylhland Price GBA SgXt. GBA Land FAR On AU ket Status Comments Q, :Connuercial Mimed Use Property that extends fiomthe Overseas Highway to Florida Bay.CBS/masonry 592291 :14 125th Street Grff :Marathon : $2,000,000: 6,128 : 68,290: $326.37 $29.29 9.0% 70:,yctive:buildings conmiercialunits with elevator with � ;potential for additional development with _ _ ,waterfiontage. ...........:.....................................:............................... ..................... ........ ........ ..... ........ .... store plus all ice luaciiiii-e—v-e-lid—ing :wi 580073 :82681 Overseas Highway :Islamorada : $1,350,000, 51948: 23,000: $226.97 $58.70 25.9% 331,Active:Property llorcatedloil the Overseas Hig way with N N ...........:.....................................:.................:...............:........ ..... ........ ........ ..... ........ .... additional development. workfor , ..... .... ..... ..... ..... ..;affordable housdiug_or_co rnz eroliahuse.f............... :ConmrerciaL retail store plus an ice nrachnre vending dy :with 150 linear fee ofhighway fiontage.Mimed Use 588635 E2675 Overseas Highway :Marathon $599,000: 2,599: 15,000E $230.47 $39.93 17.3% 331:Active:Property located on the Overseas Highway with .� :potential l for additional development ofworkforce, ...........:.....................................:.................:-............ ..... ..... ........ ........ ..... ........ .... ............................................................... :affordable housing or conmrercial use. _ :Multi-use Property with 3,462 square feet of newly 590195 :12235-37 Overseas Highway ;Marathon $1,250,000: 3,492: 40,600: $357.96 $30.79 8.6% 244:Activerefurbished conmrerciaL building with updated l/1 :cottage apartment.Lots ofvacant undeveloped land :with potential for future additional development. Mean $285.44 $39.68 15.2% ` 244 Median $27842 $35.36 13.2% 288 Minimum $226.97 $29.29 8.6% 70 Maximum $357.96 $58.70 25.9% 331 Appraisal Company of Key West Page 32 Packet Pg. 2439 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Advantages and Disadvantages of Subject Property Stren hs • Neighborhood is at least 85% developed with very limited potential for new construction of competing large office or medical space, especially adjacent to Fisherman's Hospital_ • Great Access to Marathon Airport • Ample On-Site Parking • The Marathon market has appreciating land values, which is a significant barrier to entry , • Great Access and Exposure from the Overseas Highway Weakness: y • Finding reliable workforce and even management is difficult in the Florida Keys due to the extremely high cost of living and lack of affordable housing. 0 0 N N N U Appraisal Company of Key West Page 33 Packet Pg. 2440 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL DEMOGRAPHICS In terms of demographic trends taking place in Marathon,Florida,the following data has been compiled by from the CCIM Site To Do Business within a 30-mile radius of the subject property: y rim r. ,,■h-1c and Income Profile 3083.3159 Overseas Hwy,Marathon,Florida,3345o prepared by Esri Ring:30 mile radius sm Summary Cerium 2410 202111 2025 Population 20,798 20,655 20,849 Households 9,647 9,543 9161.8 Families 5,769 5,637 5,657 Average Household Size 2.12 2.13 2 13 Owner Occupied Housing Units 6,311 6,093 6,192 ¢, Renter Occupied Housing units 3,336 3AS0 3,426 N Medan Age 50 5 54 4 S6 tl Trends;2020-2A2S Aini ual Rate Area State National (� population 0.19% 1..33-16 0.72% 100 Households 0.16% 1.2.7% 0,72% I"anr ll e3 0.0791. 1.2:3% GF 6446 Owner HHs. 0.32% 1.22% 0.72% Median H9115ehold Income IAt3% 1..51% 1.60% 2020 2025 HousettaldstbyIncome Number Percent Number Percent '. =$15,000 584 6A% 463 4.8% $15,000-$24,999 758 7.9,% 694 7.2% $25,000-$34r999 841. 8.a% $00. a-3I $35,C100-$49,599 1,346 14..1% 1,261 13.1% � $50,000-$74,999 1,192 12,5% 1,130 11.7% $75r000-$99,999 1.,430 1:5-0% 1,503 1..516% rm $IGOr000-$149,999 1,530 16.0% 1,707 17.7% Lq $150,000.519I,999 817 8.696 929 9.7% P' $200,000+ 1,046 11.0% 1,131. 11.'846 LN Median Household Tmt-e $75,65$ $81,120 tu Average Household Income $103,.910 $114,040 Per Capita income $48,01.3 $52,611 Comas 2014 '.2020 2025 (Population by Ale Number Permrvt ! Number Pereerit Number Percent 0-4 821 3 9%,:.:. 660 3.3% 689 3.3% 5-9 733 3.5% 771. 33% 738 3.5% ru 10-14 781 3.8% 874 4.2% 857 4.1% 1$.19 79B 33% 645 3-146 791, 3.8°S 20-24 819 3.9% 628 3,-0% 568 2,.7§:6 25-34 1,996 9.6% 1,922.. 9.3% 1,67E 7.8% 35-44 2,459 11.8% 2,152.. 10,4 16 2,305 11..1% 45-54 3,785 182% 2,835 13,7'% 2,504 1.2,0'% 55-€s4 4r302 20.7% 4,22.5 20-9% 3,839 18.4% 65-74 2.,717 13.1% 3,899 18.9-k 4,288 20.6% 75-84 1.,223 5.9% 1575 7,61A 2,126 10.2% 85•i• 363 1.7% 449 2.2'% 500 2,4% CV Comm's 24i11 "Zo 2025 Race and Ethrdelty, Number Percent Number Percent Number Percent CV White Alone 19,405 93 3% 18,887 ,...91,V% 18,867 90.546... B1aCk Alone 523 3:0°.tu., 773 3.7% 863 4.1% Americana India.Alone 77 0.4% 90 0-4% 101.. 0.5% � Asian Alone 179 019% 244 1.2% 285 1..4% Pacific Islander Alone 8 0.0% 9 0,0% 10 0.0% Some Other Race Alone 181 0.995 242.. 1„2% 269 1.3% (B Two or More Races 325 1.6% 410 2-Q% 453 2.2% Hispanic Origin(Any Race) 3,322 16.0% 4,271 2.0.7°6 4,865 23.3% nata Not [ o-ig a i} *`.Said in c Al dsyllAr%. Saw rceeUS Cansa,a 73uxr-'C'.e&us n1,0 R.1. Fial'f-,OMS lair 2020 _W 7317,. November 10,202.13 Appraisal Company of Key West Page 34 Packet Pg. 2441 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL sri 081•3159 QN4'rwjtjt Hwy,Marathvn,Florida,33050 arwparod by Esn � Ring:30 rr ilo,rad(ua ug Trends 2020-2025 14 0 1�k u a 1.2 rgFa1 #,' f 1fj k �. a i1�1 ��.. � �}3 of 0� Area c Stag �. a 0.2 s, 01, USA s W ....Population Households Families Owner HHs Median HH lneonr.e _ Population by Mtge 2t1 4( 1s I Ca 16 14 1 \ lrj9LO W 1 ��, C�lii ssl 2020 (10 jj 0 0-4 5.9 0-1,4 15-19 20.24 25.34 35.44 45.54 515.64 6544 75.84 85 2020 Household Income 2020 population by Race 90 4 70 $50K $T4K N d, 1 CD 40 3{1^ CD ST r%-ilk S o.3` CD • tsoK Si�A9x 1Q= ¢i say White Black Am.[,,d As,ar' Pacific, Other Two+ 2020 Percent Hispanic{lrig0m2'.0,7% U .°itl rm Id,4.Ckral F%i4)u.W!, .G 7.fl Sdex HST#Pik, Z(B�I(i.9e 200,5• November 10,2020 Appraisal Company of Key West Page 35 Packet Pg. 2442 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL EXPOSURE TIME Exposure time considers the amount of time necessary to affect a sale of the subject property on the valuation date. In the case at hand, it is our opinion that the exposure time would be between 6 and 18 months, based on a listing price within 5.0% of our appraised value. This exposure time appears reasonable based on analysis of the active listings and closed sales utilized herein. As of the effective date, the short and long term impact on the market from the COVID-19 virus is unknown; however, it is reasonable to assume that the current restrictions in market activity due to the virus will extend marketing times at beyond the current levels. At this time,the appraisers assume that s the delay in market activity,but not a significant long-term shift in demand or supply which would result in a change in market prices. These are considered to be extraordinary assumptions which, if proven false should impact the opinions and conclusions expressed herein. The impact could fluctuate over time. OWNERSHIP 0 According to the Monroe County Property Appraiser's Records, the subject property is owned by: -a Monroe County FLA 500 Whitehead Street Key West, FL 33040 SALES HISTORY OF SUBJECT PROPERTY AND CURRENT CONTRACTS c 9 According to the Monroe County Property Appraiser's records,the subj ect property's has not sold within 0. the past five years. N The subject property has not been under contract for sale and purchase nor listed for sale over the past five years. N ZONING According to the City of Marathon Land Use Code,the Subject is zoned P,Public Zoning District. The "P" District is intended to establish areas appropriate for public service facilities, government facilities and institutions, designated with the Public Facilities (PF)future land use category on the Future Land Use Map (FLUM). Appraisal Company of Key West Page 36 Packet Pg. 2443 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Density: 10-25 Units per Acre (Affordable) Range 3-25 Units per Acre (Transient) Min Lot Area: 1,742 (Affordable) FAR: 0.15 to 0.75:1.00 Setbacks: Front: 15 Feet Rear: 10 Feet Interior Side: 5 Feet s Street Side: 5 Feet Height Limit: 37 Feet Open Space Ratio: 0.20:1.00 0 c cv cv cv Appraisal Company of Key West Page 37 Packet Pg. 2444 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL ZONING MAP �rtY rgff IN1t4~ �} b� 'Il�tltVS i 5I H `4 F. t8 IF .e r r �' - � , - � n �� et � N4 City of Marathon,Florida ........ officialzoning Map Series PANEL 1 CD CD Appraisal Company of Key West Page 38 Packet Pg. 2445 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL REAL ESTATE TAX ASSESSMENT & TAX BURDEN As noted earlier, the subject property could be separated from the larger County tract and sold to an adjacent owner. The overall assessment for the parent tract is $4,652,086. Since the tract is owned by Monroe County, the real estate taxes are not levied. �i DANISE 0.NENRIQUEE G.F.C. 2019 Paid Real Estate MONROE COUNTY TAX COLLECTOR' NOTICE OF ADO VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS 1119512 50CM '.. 1119512 MONROE COUNTY FLA 0010231001000000SO632 1200 TKOm Ave Ste 206 3261 OVERSEAS H" Key West.EL 300404270 8 66 32 KEY VACCAS PT LOT i OR.I 5.374R6 OR284-18t20 -r, mom- SCHOOL STAYS LAW 305-293-1490 15650 4,652, 05 4,652,086 0 0.00 S4'_H{7OL LOCAL BOARD 305-29.3-1400 1.7880 4,652,086 4,652,086 0 0.00 00 GENERAL FUND 305-292-4473 0.7597 4,652,086 4,652,086 0 0.00 F&F LAW ENFORCE FAIL 305-292-7017 13747 4,652,086 4,652,086 0 0.00 HEALTH CLINIC 305-296-4986 0.0437 4662.096 4,652,086 U 0.00 w MOSQUITO CONTROL. 306-2927190 0.4608'... 4.662,086 4,652,086 0 0.00 _ CITY OF MARATHON', 305-743.6686 2.5900 4,652,088 4,652,086 0 0.00 &FVIM GIST 000.432.2045 0.1152 4.652.005 4,652086 0 0 00 �n OKEECHOBEE BASIN 800-452-2045 0.1246 4662,086 4,652006 U 0011 MIDDLE KEYS HEALTH CARE 305.292-4473 0.5000 4652,086 4.652,006 0 000 m EVERGLADES CONST PRJT' 800.432.2045 0.0397 4,652,086 40,2,086 0 O UU W TOTAL MILLA.GE 9.7514 AD VALORkM TAXES I $0.00 NOW-ADVALGREM ASSESSMENTS 54.01) COMBINED TAXES AND ASSESSMENTS $0,00 See re•rsrexasesfde far �OPmrtaaat mkamaairs C44 CV fBPOstmarked By 0&30,2020 -' PIee3O PegPACD ID BY � k b DANISE D.HENRIQUE` C.F.Cz. 2019 Paid Real Estate ' MONROE COUNTY TAX COLLECTOR NOTICE OF AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS C44 F I FY f.-a•a'1 i F 1185 2. 50GM I 1196 12 001 D23100000 OWE6632 MONRDE COUNTY FL.A 325t OVERSEAS Hwy 12U0 Tru€neO Ave SLe 206 Key'N1esF,FL 33G40-7270 9 66 32 KEY VACCA$PT LOT 1 0RI5-374176 � OR284.18/20 ca{eeRS Ora U.s.amxxs axvar nrtaOe ParnaiE iO eaewisE o..ReaaRiquez.e.a.e.TnxeOueeTOR.P.o.eox.aiz�.Kev v�sT cl seas i•na� If PostrrLarked By Oct 34,2020 Please Payfl.® Appraisal Company of Key West Page 39 Packet Pg. 2446 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL PROPOSED SUBJECT SITE } �� rt r n s r 'I VSr� 1 C �}} } f!9 N v. r N CV U _ t8 UI-BUL t L A'.gUKVpY FLORIDA KLYS LAND SURVEYING I Appraisal Company of Key West Page 40 Packet Pg. 2447 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL DESCRIPTION OF THE SUBJECT PROPERTY Site Anal: The subject site is a proposed split-out of a large Monroe County owned parcel consisting of 2.61 acres of uplands,plus 2.40 acres of environmental sensitive land. A survey of the subject property prepared by Florida Keys Land Surveying, dated 10/02/2020 was made available. The site would be an interior Ch irregular parcel with 108 feet of frontage along the southerly side of the Overseas Highway and extending southerly 515 linear feet in depth. Thus, according to the proposed split-out and the survey LN provided, the subject site will consist of approximately 43,560 square feet or 1.0 acres of upland area plus 22,098 square of environmentally sensitive for a total site area of 65,658 square feet or 1.51 acres. s Easements/Encroachments: A survey of the subject property was provided, however,the appraisers could not verify if there are any easements or encroachments as this is a split-out of a large parcel. No responsibility is taken by this office for the accuracy or in regard to any questions on the nature of encroachments, encumbrances, or dissimilarities in measurement. Any maps or plats reproduced and included in this report are intended only for the purpose of showing spatial relationships. They are not measured surveys nor measured maps, and no responsibility for cartographic or surveying errors is assumed. We reserve the right to change the final indicated value herein, if a recent survey is made z available and any further encroachments and/or easements area noted. Topography: Although no soil engineering report was made available to us,it appears that the site and most of the properties in the immediate neighborhood show no signs of any subsurface instability. The subject site is level and slightly above the street grade,with adequate drainage sloping toward the street. 0 Utilities: Municipal services available and currently serving the property include electricity,water and 9 central sewer system. Additional utility services including: telephone, cable television and LP bottled gas are available with the private sector. All utilities appeared to be adequate and typical for the area and use. The electrical and plumbing systems in the buildings appeared to be in average condition. Census Tract: According to Mr. Jim Anderson of the Tallahassee, Florida Division of the United States Census Bureau,Monroe County is not divided into Census Tracts;but rather`Block Numbering Areas". According to 2010 Census Maps, the subject property is located within Block Number 9713. E Flood Zone: The subject site is located in a Special Flood Hazard Area, specifically Zone AE, Elevations 7 and 8 feet, according to the Federal Emergency Management Agency Flood Insurance Rate Maps of Monroe County, Florida, Map Number 12087C1378 K, dated February 18, 2005. The subject library was built after the inception of FEMA regulations and is elevated on small stilts or concrete piers. It is unknown if the subject structure meets the current FEMA elevation regulations or not without the benefit of arecent elevation certificate.If the subject structure does notmeet current FEMA elevation Appraisal Company of Key West Page 41 Packet Pg. 2448 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL requirements, and was destroyed more than 49.9 percent of it's improvement value, then it would be required to meet FEMA regulations in effect at the time of reconstruction. Monroe County does participate in a National Flood Insurance Program and is covered by a regular program. The reader is cautioned that the subject's flood zone should be verified by a vendor's report as required by Federal regulations. FLOOD MAP 3 F- :,5wamc ragram at 1-60n-6913-6620. ZONE.11E N zl _ IEL alp ' 4 77 FLAP SCADS 1" 500' �. „ 7 7 no" 0 0 500 1000 FEET jl J� 7 _ ZONE Yht ve �\ 7 i s r tZONE ,aE PANEL 1378K 7` v AA09� ���` FIRM x r FLOOD WURANCE RATE MAP AAa$67 i7 MONROE COUNTY, Cab F5A0888 (� R 01 AA03©4,,,• « FLORIDA AND INCORPORATED AREAS kf) E'AE 8vtts= A��� 8l + PAIR 1378 OF 1585 ,t fr 7 m stfgt s, �d 0 t 7 IS W i zpNE7 ae �1 v_i Jt ,,I,7 �. MAP NUMBER 12087C1378R MAP REVISED N FEBRUARY 18,2005 ' H.d«I[imscgenq 91¢oegcmest 9Sancy i ZONE VE J � a E al i�. .�: , ,, .,; ,'', � i3.�, • �n m�ran +n ar noo an m C44 t ^t d V'G L f d at eR l M1 Wrk�F h l t p tl Po at!�n G NAG IFI I P2y3^mm petit}maic theca iM1a FErylrtt Flaap f��1ore u! x nc Icm a.SK+'o E Appraisal Company of Key West Page 42 Packet Pg. 2449 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Improvement Anal The subject site is improved with an elevated CBS/Masonry library building containing a gross building area of 7,055 square feet. In addition, there is a large covered-canopy, covered walkway, covered porches,plus an open loading ramp totaling 2,376 square foot. The subject has historically been utilized as a Monroe County Branch library, which was built in circa 1982. The entire property is owner-occupied. We personally inspected the subj ectbuilding and site improvements. The building dimensions were referenced from the survey and verified by our on site measurements. �+ The following descriptions of the improvements were based upon a physical inspection of the interior and exterior of the buildings and site improvements, and the Monroe County Property Appraiser's records. A construction summary of the building improvements follows: _ Building Description 3251 Overseas Highway, Marathon, FL 33050 GBA Porch/ 0 Unit Type Size Canopy Year No. Description Use / Type Construction Sq. Ft. Sq. Ft. Built Eota First Level Library/Office CBS/Masonry 7,055 2,376 1982 LO 7,0551 2,376 Foundation&Floors: The library structure is built on raised concrete piers with a CBS/Masonry c perimeter wall foundation. The floor structure is an elevated concrete 9 slab. The floors were finished with rubber (Johnsonite non-skid) and 0. carpet throughout. The restrooms are finished with ceramic the floors. cv Exterior Walls: The exterior walls of the subject painted stucco over CBS/Masonry exterior walls. The exterior doors are glass and solid metal, while the CD windows are fixed glass. a� Roof: The office has a gabled and flat roof structure. The flat roof is covered by U a single-ply membrane,while the gabled roof is covered by a clay barrel tile. Roof repairs were made subsequent to Hurricane Irma,which made landfall in September 2017. The roof is assumed to be in average condition. However, a roof inspection was not made available. Appraisal Company of Key West Page 43 Packet Pg. 2450 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Electrical Service: The electrical services to the buildings appeared adequate for the use of the property. Air Conditioning: The subject structure has three roof-top central air conditioner/heat systems. Plumbing: The subject building has a two-fixture employee restroom,plus a men's and women's two fixture public restroom. Furnishings & Equipment: The valuation of the subject property does not consider any personal property or library fixtures. y Construction Quality: Above Average .�. Improvement Condition: Average to Above Average Building Ages: Effective Age & Economic Life Summary' Remaining Build Year Actual Effective Economic Economic ID. Built Age Age Life Life _2 J 1 1982 38 30 50 20 c� Environmental Issues: In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenance of the building or the overall property,such as the presence of radon,asbestos insulation and/or existence of toxic waste, which may or may not be present on the property, has not been considered. The appraisers are not qualified to detect such substances. The appraisers are not an expert in the field of environmental hazards. An expert in the field is recommended if desired, E as no environmental tests were made by the appraisers. ADA Compliance: The Americans with Disabilities Act("ADA")became effective January 26, 1992. The Appraisers have not made a specific survey or analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. The Appraisers recommend that a Contractor or Engineer be hired to determine compliance or Appraisal Company of Key West Page 44 Packet Pg. 2451 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL noncompliance, if so desired. The Appraisers are not a contractor and is not qualified to make a determination if the building adheres to the requirements. The property, together with a detailed analysis of the requirements of the ADA, could reveal that the property may or may not be in compliance with one or more of the requirements of the Act. If so, this fact could have an effect upon the value of the property. Cost to Cure: The value herein does not include the potential cost for repairing the LN spalling within the entrance canopy. It is not possible to estimate the cost to cure without a contractor's or engineer's estimate to repair. A repair s bid was not available at the time of this appraisal_ 0 c N N N Appraisal Company of Key West Page 45 Packet Pg. 2452 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL BUILDING SKETCH Marathon Library 3251 Overseas Highway Marathon, Florida 33050 133' 94.H' �........ Public >m Ch i l dren's Restroorns Parkin 6 G[ Section Conference g Room 53.3' 25.9 12.8' Employee Restroom e . ...... ...... .... N Afred ice v d Couer�d o. CanaPy a Covered Walkway 'w �nrr Office v' u 70' cB _........ ............. ...... ............ 13.3' 25.9' • Stairs u1 01 M Nan Fiction computers Fiction Q Section Parking u 0 Parking LN r 9m J Scale: 1=30 AREA CALCULATIONS SUMMARY BUILDING AREA BREAKDOWN Cods Description Net Size Net Totals Breakdown Subtotals 9� GBAI First Floor 7054.79 7054.19 First Flour P/P Porch. 335.16 94.80 x 25..20 238'8.96 Porch 408.31. I8.60 x 84.50 I571.70 Covered Entry 438,96 9.99 x 108.10 97.29 canopy 518.00 108.10 x 0.80 86.48 Covered.Walkway 676.00 2376.43 30.70 x 94.80 2910.36 CN rtl cV CD cV Net BUILDING Area (rounded) 7055 5 Items (rounded) 7055 Appraisal Company of Key West Page 46 Packet Pg. 2453 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL HIGHEST AND BEST USE: In appraisal practice, the concept of Highest and Best Use represents the premise upon which value is based. The four criteria the highest and best use must meet are: Legally permissible; Physically possible; . Financially feasible; and Maximum profitability s Highest and Best Use analysis involves assessing the subject both "as if vacant" and "as improved." "As If Vacant" Physically Possible Use - The subject site consists of an interior commercial parcel in the City of Marathon in the Florida Keys. The site has 108 feet of frontage along the southerly side of the Overseas Highway encompasses 1 acre of upland area, plus 0.51 acres of environmentally sensitive (mangrove and wetlands) area. Legally Permissible Use-The subject property is zoned P,Public Zoning District. The "P"District is Iq intended to establish areas appropriate forpublic service facilities,government facilities and institutions, LN designated with the Public Facilities(PF)future land use category on the Future Land Use Map(FLUM). cu For further details, the reader is referred to the City of Marathon Building Department or the Land c Development Regulations. Financially Feasible Use - The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. As previously discussed,vacant land in this Public zoning district is limited. The general commercial uses in the subject's area were previously discussed. It is the appraisers' opinion that, if vacant and CD available, development of the subject site for Public use would provide a positive net return to the site and would therefore be considered feasible. Maximum Profitable Use- In the final analysis, a determination must be made as to which feasible use is the Highest and Best Use of the parcel as if vacant. It is our opinion that the Highest and Best Use of the subject site would be for Public use, as permitted by zoning with maximization of the site. The subject would likely be converted to the MU(Mixed-Use)zoning district if sold to a private entity. The "MU" zoning district is designed to accommodate a wide variety of commercial and retail activities. However,based on the subject's location professional or medical office use would be the most feasible. Appraisal Company of Key West Page 47 Packet Pg. 2454 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL "As Improved": In the final analysis, the appraisers must determine if the land alone is worth more than the existing property "As Is"to determine if the improvements contribute to the overall property. The subject site has a prime frontage on the Overseas Highway or US Highway 1, offers good highway access. The subject's location and layout are attractive, especially to Public office or Medical Office use. Most of Ch the commercial properties surrounding the airport are light Public or Medical use. The existing improvements still make a substantial contribution to the total property in excess of the value of the site. Therefore,no alternative legal use would economically justify removal of the existing s improvements. Thus, in our opinion the subject property's Highest and Best Use is "As Improved" as a Public Library. The property proposed to be possibly split-out of the Monroe County Government Complex and sold to the adjacent Fishermen's Community Hospital. The subject could be easily converted to professional office or medical office use 0 0 N N N Appraisal Company of Key West Page 48 Packet Pg. 2455 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL APPRAISAL DEVELOPMENT AND REPORTING PROCESS SCOPE OF WORK There are three typical approaches to value to consider in each appraisal assignment. The three traditional approaches to value are the Cost Approach,the Sales Comparison Approach and the Income Ch (Direct Capitalization and/or Discounted Cash Flow)Approach. The three approaches to value are not always applicable to the assignment; however, the three approaches to value are always considered. , All appraisals begin by identifying the subject property (property to be appraised) and the appraisal problem. Data relevant to the subject property is obtained from various sources including but not limited to: the Monroe County Property Appraiser's Office, surveys,building plans and specifications and the property owner. If possible, more than one source is utilized to confirm information. Improvements, if applicable, are inspected and measured by the appraisers. If and when building plans or sketches are made available,the measurements are verified for accuracy. Land size is based on recorded plat maps, Monroe County public records, legal descriptions or surveys (when available). The local geographical 0 market was researched and analyzed. The appraisers describe the building improvements in detail, if applicable;these descriptions are based on a physical inspection and/or plans and specifications. The appraisers are not a contractor nor Iq structural engineer;therefore, structure soundness or damage cannot be warranted. The appraisers will LN note any apparent or potential problems such as deferred maintenance, water damage or spalling. The Cost Approach consists of combining the estimated value of the land, based on comparable sales, c with the depreciated value of the improvements. The vacant land sales are always inspected. The cost 9 of the improvements is estimated by utilizing a cost service, Marshall and Swift/Boeckh, LLC, plus 0. knowledge of costs to construct obtained from local contractors. N Exterior site visits of the comparable improved sales are always made; interior walk-through visits are made when possible. Sales prices for the comparable sales are obtained from the public records. Prices are customarily confirmed with a party to the transaction, i.e., buyer, seller, closing agent/attorney, or real estate agent. The public records are researched for mortgage terms and information. The comparable sales are researched utilizing First America Real Estate Solution and CRS Data, FLEX MLS and LoopNet.com are computerized MLS (Multiple Listing System). All sources use data from the Monroe County Property Appraiser's Office,as well as,from the public records. The data is verified and compiled into sale sheets located within this report. Additional data sources include: newspaper clippings and the National Multiple Listing Service. Real estate agents in the market area are Appraisal Company of Key West Page 49 Packet Pg. 2456 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL interviewed for the most current information on sales and listings. All of the information is analyzed in preparing the report and is utilized in supporting the indicated value. The reader of the appraisal should be made aware that the valuation contained herein is based on a specific date. The value estimated on the specified valuation date will likely differ from the value one, two or three years in the future or in the past. The reader is advised to review the Assumptions and Limiting Conditions in Section, as well as, the Certificate of Value. Finally,the three indicated values developed by the approaches,are reconciled to produce the final esti- mate of value. A brief description of each of the approaches to value follows: s 0 0 N N N Appraisal Company of Key West Page SO Packet Pg. 2457 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL THE COST APPROACH The Cost Approach is based on the principle of substitution, the belief that a purchaser would not pay more than the cost of acquiring a similar site plus the cost of construction a replica or similar structure. "The Cost Approach is based on the understanding that market participants relate value to cost. In the Cost Approach the value of a property is derived by adding the estimated value of the land to the current Ch cost of constructing areproduction or replacement for the improvements and then subtracting the amount of depreciation (i.e., deterioration and obsolescence) in the structures from all causes. Incentive for , coordination by the entrepreneur is included in the value indication. This approach is particularly useful in valuing new or nearly new improvements and properties that are not frequently exchanged in the s market. Cost Approach techniques can also be employed to derive information needed in the Sales Comparison and Income Approaches to value. In preparing this appraisal,the appraisers inspected the subject site and both the exterior and interior of the building improvement. Information on comparable land sales was gathered, confirmed, and analyzed. The subject property is utilized as apublic library. The Cost Approach consists of combining the estimated value of the land, based on comparable sales, with the depreciated value of the improvements. A purchaser would normally give little consideration to this value approach when his Z primary interest in the property is its income stream and desirable rate of return on his equity. The two major exceptions might be in the case of a purchaser who is acquiring a property for his own use and Iq occupancy, an owner-user property, or in valuing a special use property. In the case at hand, a reliable valuation of the subject site was not possible due to the lack of recent land sales in the market area, especially within the P,Public zoning district. Furthermore, due to the age and c condition of the structure, a reliable depreciation estimate would be difficult. Thus,the Cost Approach was considered, but not deemed applicable. �t N N N U Appraisal Company of Key West Page 51 Packet Pg. 2458 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL THE INCOME APPROACH The Income Approach to value presumes that no prudent buyer will pay more for the subject property than the capitalized rental value attainable through ownership of the property. The Income Approach represents the value an owner may consider paying in order to gain the benefits and profits of the Ch business as well as that of the real estate. The buyer will only be willing to pay the present value of what he considers those future benefits to be. This approach has greatest application when the property being LN appraised is a type that purchasers buy for investment purposes. In the case at hand,the subj ect property is totally owner-occupied. s The Direct Capitalization Method takes into consideration the current estimated net income, which is capitalized at a rate of return for similar property or investments of comparable risk,to indicate the price that a prudent and knowledgeable investor would be justified in paying for ownership. The traditional Direct Capitalization Method was considered appropriate in valuing the subject property. 0 Income Analysis: The Income Approach was based upon market rate rental rates for the commercial properties in the Z subject's market area. This report contains the results of our investigation and analysis made in order to furnish an estimate of LN the Market Value of the Fee Simple Estate of the Subject Property subject to the split-out from a larger parcel. The Fee Simple Estate is the unencumbered value of the subject property;basically,market rents and terms are considered with no regard to existing leases and terms. The subject property consists of c an owner-occupied property,which is not encumbered by any long term leases. Therefore,only the Fee 9 Simple Interest is included herein. However, the reader is cautioned that a title search was not made; 0. thus, no other encumbrances are considered herein. N Therefore, a one-year stabilized net income is estimated for the property based on market data and comparison to most comparable rental data available was considered and will be capitalized into value CD utilizing a market extracted overall capitalization rate (OAR). In short, the Direct Capitalization Method utilizes the net annual operating income that the property is expected to produce. This estimated W net income is capitalized, according to prevailing rates of return on similar property or investments of comparable risk, to indicate the price an investor would be justified in paying for ownership. Historical financials for the subject property were not available. The subject has historically been utilized as aPublic Library. The subject property is adjacent to Fishermen's Hospital and could be easily converted to medical office use. Appraisal Company of Key West Page 52 Packet Pg. 2459 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Analysis of Potential Rental Income: The subj ectproperty is a large branch library,which could be used as office space with adequate parking. As a result,we have researched leases of larger government office comparables. Similar,large facilities are quite limited in the Florida Keys. Therefore, we projected the potential rent income based on the following rent comparables. Large Commercial Rent Comparables in the Florida Keys Rent Unit Size Tenant/Unit Monthly Annual Base Comp No. Address (SF) Use Base Rent Rent Rent/SF Terms 1 5171 Overseas Hwy.,Marathon 10,060 U.S.Post Office $13,413 $160,960 $16.00 NNN* 2 3770 Overseas Hwy.,Marathon 11,234 U.S.Customs $15,447 $185,361 $16.50 NNN* 3 11296Overseas Hwy.,Marathon 6,732 U.S.Homeland Security $15,646 $187,755 $27.89 NNN* 4 25000 Overseas Hwy.,Sunmierland 9,175 U.S.FEMA $14,321 $171,848 $18.73 NNN** Subj. 3251 Overseas Hwy.,Marathon 7,055 Marathon Library NA NA NA NA Mean $19.78 Median $17.62 *:Have been converted from Modified Cross for Comparison Purposes Nlinimum $16.00 *:Lease was temrinated last year. It is now owner occupied. Nlaximum $27.89 Based on these comparables, it appears that the base rent for similar properties range from $16.00 to c $27.89 per square foot of gross building area per year with a mean at$19.78 and a median at$17.62. Thus, based on the market rent comparables, we projected a market rent at $18.50 per square foot, Z which is at the midrange of the spectrum. This equals an annual rental of $130,518 or $10,879 per month. Thus, the rent projection is well supported. 0 cv cv cv Appraisal Company of Key West Page 53 Packet Pg. 2460 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Rent Comparable Map a M M _ s , N Kov cu `Yic � Cudj Y vs,v— 0 N,,,val Au S1a9aJ'�,� ' iu 4.v s cu 0 U7 N N CD U Appraisal Company of Key West Page 54 Packet Pg. 2461 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Rent Comp Photo No. 1 Rent Comp Photo No. 2 r, j}It �{,� fi •_ tm t� 1 �t�kU TT J � 1 L, 5171 Overseas Highway-Marathon, FL 3770 Overseas Highway-Marathon, FL 0 Rent Comp Photo No. 3 Rent Comp Photo No. 4 U) s a C44 tv ))}t r , , t 4 lY tt t isi s13}t�it�b�{11((y��{Qf ,,r N CD 11296 Overseas Highway-Marathon, FL 25000 Overseas Highway-Summerland Key, FL We projected the overall lease on a triple net basis with the tenant paying utilities,his/her pro rata share of the real estate tax, hazard insurance, and repairs and maintenance. Triple net rent is typical in the market area for most commercial properties. Appraisal Company of Key West Page SS Packet Pg. 2462 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Potential Market Rent(Fee Simple) Analysis: Market rent was projected after interviewing market participants including landlords and rental agents. The potential rent was estimated at the mid range of the comparable rents due to the subject's premium direct highway front location and proximity to the Fishermen's Hospital on the Central Business District of the City of Marathon. Hence, we projected a market rent as follows. Fee Simple Potential Rent for Subiect Property 3251 Overseas Highway, Marathon, FL Size Monthly Annual Ann.Rent Utilities Paid Us e/T S Ft. Rent Rent S Ft. Lease Tenant 3'l� q q �' Library /Office 7,055 $10,876 $130,518 $18.50 NNN All Total Potential Rent: 7,055 $10,876 $130,518 Most commercial units within the subject's market area are leased on a triple net basis. In a triple net lease, the tenant is responsible for all utilities plus a pro-rata share of the real estate taxes, building maintenance, hazard insurance and overall building operation expense. Vacancy and Collection Allowance: Vacancy&Collection losses include allowances for vacancy due to tenant turnover or loss of rents from a tenant who vacates the building or is late with payments. Typically,the market is experiencing a 3% to 10%vacancy and collection losses on commercial retail/office use properties on an annual basis. The Iq higher end of the spectrum is for large, multi-unit structures. Because of the subject's prime location and being a single unit and most likely being occupied by an owner-user,we estimated a fractional 3% vacancy and collection loss rate in our analysis for the potential office space. 0 Reimbursable Expenses: We considered the tenant's pro-rata share based on the unit's percentage of gross income of the entire property.In the case at hand,the subject's commercial unit,which is projected to be leased on triple net terms, represents 100% of the overall property. The reimbursable expenses are based upon a pro-rata percentage at triple net terms. The property operating expenses were based on our estimated projected expenses. The lease rate is projected on triple net terms, whereby the tenants are responsible to pay additional rent Tenant's prorated share of all cost incurred by the Landlord in the operation for the maintenance, repair and of real estate taxes, insurance, and utilities. E Landlord's Vacancy and Collection Share: We projected a 3% vacancy and collection loss for the subject. This vacancy and collection loss would also apply to the reimbursables, as the landlord would be responsible for this share upon vacancy losses. Therefore,the reimbursable income was reduced by 3% in order to estimate Effective Reimbursable Income. Appraisal Company of Key West Page 56 Packet Pg. 2463 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL The Effective Gross Rental Income from the rental of the Subject Parcel plus the Total Reimbursable Income yields Total Operating Income (after vacancy and collection losses). This income is then adjusted for typical operating expenses summarized on the following page. Expense Analysis: In our analysis,we considered the landlord's expenses for the property,which include real estate taxes, building hazard insurance,exterior building and common area maintenance, basic utilities when vacant, Ch property management and reserves for replacement. Real Estate Taxes: The subject is a proposed split-out of the larger county-owned government complex; thus, there is no s historical assessment just for the subject parcel_ In addition, since it is County-owned, no real estate taxes were levied. We projected this expense at 75%of our final"As Is"value estimate for the subject. This equals a tax assessment of$1,163,000 and a tax burden of$11,341 (based on the 2020 millage rate). Building Insurance: This expense is for fire, windstorm and flood insurance for the building improvements. Typical insurance rates in the market area indicate $1.25 to $2.50 per square foot of U building area for structures like the subject.The subject's historical insurance expense was not available. Z Hence,we estimated this expense at$14,110 or$2.00 per square foot of gross building area due to the subject's large size. Building Maintenance and Repairs Expense: This expense includes all general operating expenses, including building repairs and maintenance for the subj ect property. This expense typically ranges from J $0.50 to $2.00 per square foot of building area for similar properties. Historical data was not available. c Considering the large gross building area of the subject property and its current condition,we utilized $1.50 per square foot of gross building area for the repairs and maintenance expenses for the subject parcel. This expense is well supported by other large complexes within the local market. �t cv Utilities Expense: In a triple net lease, the utility expenses are paid 100%by the tenant. cv cv Property Management: This expense includes the collection of rents and actions necessary to keep the property in good condition and the owner informed. This expense is based on a percentage of Effective °i E Gross Income. Typical management expenses range from 4.0 to 60.0 percent of Effective Gross Income for commercial properties, depending on the size of the building and the number of tenants. As the subject is realistically a single-tenant property, We estimated a property management fee at 5% of effective gross income. Reserves for Replacement: This expense includes items which have a shorter economic life than the building. Reserves for replacement typically range from 1.5%to 2.0%of Total Operating Income. We Appraisal Company of Key West Page 57 Packet Pg. 2464 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL estimated a conservative rate of 2.2% of Total Operating Income, which is well-supported by the RealtyRates.com Investor survey-3th Quarter 2020,which indicates that the National Surveyed Reserve Requirements ranged from $0.32 to $0.85 with a mean at$0.61 per square foot of gross building area. Our projection of$3,528 is $0.50 per square foot of gross building area,which is well within the range. Income and Expense Summary: A Projected Fee Simple,Income and Expense Statement is shown for the subject property. 0 0 N N N Appraisal Company of Key West Page 58 Packet Pg. 2465 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Stabilized Operating Income Statement 3251 Overseas Highway, Marathon, Florida Fee Sim le Interest $/Sq.Ft. Income: Percent of EGI GBA Potential Commercial Income: Total Potential Commercial Income: $130,518 Less: Vacancy/Collection Loss ( _ °1 ) Effective Rental Income: $126,602 Effective Gross Income: $126,602 $17.95 Plus: Reimbursables Real Estate Taxes $11,263 Insurance $14,110 0 Repairs & Maintenance $10,583 U Total Reimbursable Income $35,956 $5.10 Less Vacancy/Collection Loss: ( i 1-2 Vie) Effective Reimbursable Income $34,877 $4.94 Total Operating Income: $161,479 Less: Operating Expenses 0 Real Estate Taxes &Non-Ad Valorem $11,263 8.9% $1.60 Insurance $14,110 11.1% $2.00 Repairs & Maintenance $10,583 8.4% $1.50 Property Management $6,330 5.0% $0.90 Reser\,es $3,528 2.8% $0.50 Total Expenses: $45,814 36.2% $6.49 cv Total Operating/Expense Ratio: 28.4% Net Operating Income: $115,665 Capitalization: Capitalization can be defined as a method of converting an income stream into a capital sum by dividing the net income of the future income stream by an overall rate (OAR) or capitalization rate. The result Appraisal Company of Key West Page 59 Packet Pg. 2466 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL should be the indicated value of the total property or the income-producing package. The capitalization rate was determined by the Mortgage Equity Method,from capitalization rates derived from the market, and from Debt Coverage Analysis as detailed below. Band of Investment Model or Mortgage Equity Method: An overall rate based on the Band of Investment Method was estimated at 7.4%. Assume a mortgage of 70% of the value, 4.5% interest with a 20-year term, the mortgage constant will be 0.0759; a down Ch payment of 30% as equity and an Equity Capitalization of 7.0%. Comparable Sales Analysis: We have estimated a 7.5%capitalization rate for the subj ectproperty via the Comparable Sales Method, .2 based on an analysis of local overall rates, which range from 4.8%to 9.8%with a mean of 7.7% and a median of 7.9%. According to RealtyRates.com, national Suburban Office Capitalization rates range from 4.19%to 10.96%with a mean at 7.87% Debt Coverage Analysis: An overall rate based on the Debt Coverage Method was estimated at 7.4%. After analysis of current financing availability for similar properties with quoted rates ranging from 4.0%to 6.0% and loan-to- U value ratios of from 70%to 80%,We estimated a 7.59%mortgage constant for the subj ectproperty with a loan-to-value at 70.0%. A conservative debt coverage ratio of 1.40 was considered appropriate for the subject according to a survey of local commercial banks. Thus, an overall rate based on the debt Iq coverage analysis was estimated. A reconciled Overall Rate(OAR)of 7.5%has been estimated for the subj ectproperty with heavy weight 4- being given to the Comparable Sales method as it is most reflective of the local market. The following c chart summarizes the three methods utilized. 9 N N CD U Appraisal Company of Key West Page 60 Packet Pg. 2467 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Development of Capitalization Rate Loan Ratio 70.0% Loan Term(Years) 20 Loan Rate 4.50% Equity Capitalization Rate 7.00% Band of Investment Method Cap. Capital Source Portion Rate Rate Mortgage Loan 70.00% 7.59% 5.31% Equity Funds 30.00% 7.00% 2.10% Overall Rate 7.41% , Overall Rate Via Band of Investment Method(Rounded): 7.40 Debt Coveral4e Analysis = Debt Coverage Ratio 1.40 X Loan to Value Ratio 70.0% X Mortgage Constant 0.0759 Overall Rate 7.44% Overall Rate Via Debt Coverage Analysis(Rounded): Market Derived Capitalization Rates: Local Realty Rates .Com 3rd Quarter 2020: Market U Office Suburban Low 4.19% 4.80% High 10.96% 8.800/0 Average 7.87% 7.30% Median N/A 7.20% r Overall Rate Via Market Approach(Rounded): 7.50% Reconciled Overall Rate. 7.50% 0 As a result,we estimated a 7.5%capitalization rate for the subj ect prop erty,which is well-supported by 9 market data. The estimated value via the Income Approach is as follows. Subject r _ er Subject GBA 7,055 N Subject Site Size (SF): 27,500 Net Operating Income (NOI): $115,665 NOI Divided by Cap Rate: 7.50% Value Per Value Per Value Via the Income Approach: $1,542,200 SF of GBA SF of Land Market Value - Fee Simple (Rnd.): $1,540,000 $218.28 $56.00 Appraisal Company of Key West Page 61 Packet Pg. 2468 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Conclusion: In summary, this technique is viewed as a long-term investment valuation, subject to definitions, assumptions and limiting conditions. The Income Approach is most applicable to properties that are purchased for rental value. In the case at hand, the subject property has historically been utilized as a Ch public library. As such, the Income Approach was considered applicable and weighted heavily in the r_ final reconciliation. , "AS IS"VALUE OF THE FEE SIMPLE INTEREST OF THE SUBJECT PROPERTY VIA THE INCOME APPROACH,AS OF OCTOBER 29,2020 ROUNDED IS: $ 1,540,000 0 0 w cv cv CD cv Appraisal Company of Key West Page 62 Packet Pg. 2469 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL THE SALES COMPARISON APPROACH This approach to value is based upon the principal of substitution; that is, when a property is placed in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no costly delays in making the substitution. The Sales Comparison Approach bases its value indication on sales of other similar properties in the area. These sales are analyzed and compared to the subject property. The Sales Comparison Approach bases its value indication on recent sales that are pertinent to the value of the subject property. From these comparable sales,the appraisers must extract r_ meaningful "common denominators"to be applied to the subject building. Typically,the sale price per , square foot of gross building area, per square foot of land area and the overall sale price are the most common denominators used in estimating the value of the properties similar to the subject. Adjustments s are made to the indicated sales price for differences between the sale and the subject, when possible. The more similar the sale is to the subject property, the fewer required adjustments, and the better it serves as an indicator of value. The appraisers utilized a multiple regression analysis which is widely used in both appraisal practice and in related real estate research, as it is similar to the Sales Comparison technique of matched paired analysis. The use of regression model relates to traditional sales comparison,whereby,the influence of is time adjusted sale prices, site size,property size, condition, location and floor area ratio to the subject property in relation to their mean or average. The appraisers also utilized a qualitative adjustment grid to analyze five of the most similar comparable LN sales in terms of floor area ratio in order to make compare to the subject property. All of the sales are office/retail use properties in Marathon and Plantation Key market area. However, adjustments are J 4- required for individual physical and locational characteristics which typically affect value. c Market Data: The subject property consists of 7,055 square feet of gross building area located on 43,560 square feet or 1.0 acres of upland plus, 0.51 acres of environmentally sensitive mangrove and wetland. Extensive research has revealed a reliable number of potential comparable sales.However,there have been no sales of public libraries. Due to the availability of the fairly similar owner-user, large comparable sales, this approach was given heavily weight in the final reconciliation. a� The following chart summarizes relevant units of measure for each of the comparable sales. A description of each of the sales is included on the following pages. Appraisal Company of Key West Page 63 Packet Pg. 2470 (dems Duel Ajejq!l H-LW 4sgdeg) (A4unoo Aq) (3e L9- Ajejq!-1 jo lesiejddV 6Z-0 L-OZOZ :4uqwq3e44V 0 tm J, J, 'o 't r 00 .o r i,:� Qo W) W) Cn' O O v 1.0 rt Cn r N Qv en C1 m i rt .0 00 W) r-- Ef3 EH EH;EH 69 -t 00 r- W) 00 00 W) 1.0 r- .o E r r-- C� rr ai N I— � Ef3 kr) Ir, c\ O 00 C� 1.0 1.0 W) 1.0 1— W, CrN 1.0 C1 n 1.0 00 C1 r- 1.0 N N n W, -v r- g en en W) 1.0 W) 00 00 W) r W1 CO m W) r 69 r- r- .o 1.0 77� 77� .o C� .......... CA CA lc� lc� lc� c13 7z 9z 00 C� 1.0 r- SO -t '.6 00 00 00 m r- Ir,00 r-- 2 en 'IT CrN 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL SALES COMPARISON COMPARABLES MAP .... - �.-Sul,rdse, rod Lauderdale East Ngles Pembroke P!6es 'T pig Cypiea M1 �r�r�iaa ��HOHl'anODd Na ion I'. e.a HI Iah a L�re�r ecr�ga2.i I _ Park - f� Flo a Y uM r Key uveit cB tJ u � cu r L(3 tligrs is Ocean Lq Havana c) w cv CD CD cv CD cv Appraisal Company of Key West Page 65 Packet Pg. 2472 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Sale No. 1 -2945-2975 Overseas Highway, Marathon: This comparable is the most recent sale of an office property. Though it is a condominium form of ownership, the sellers agreed to dissolve the condominium; thus, a single-property with a fee simple interest ownership. The parcel is rectangular shaped corner parcel fronting on the Overseas Highway and 30`h Street located one brock from the subject property. The parcel also includes the end of a canal. Two of the condominium units were owner-occupied and the third was tenant-occupied on an annual lease. The parcel has 160 linear feet along the Overseas Highway, 108 linear feet along 30`h Street and approximately 60 linear feet along the canal. Hence,the parcel contains 16,000 square feet or 0.37 acres according to the survey in the Condominium Documents. This building consists of a two-story CBS/masonry structure which contains a total of 6,236 square feet of gross building area. Unit-A is located on the corner of the Overseas Highway and 30`h Street and is utilized as a law office.This unit is one-story and it contains 2,873 square feet.Unit-B is a two-story unit that also fronts on the Overseas Highway and contains a total of 1,789 square feet. The downstairs T portion of this unit is utilized as a law office. The upstairs is utilized as storage for the law office. Unit- C is also a one-story unit that shares a party wall with Unit-A. This unit contains a total of 1,061 square feet of gross building area. It is currently tenant-occupied. The condominium contains 513 square feet r_ of common area consisting of exterior and party walls according to our measurements taken from the 0 Condominium Documents. The exterior of the building is finished with painted stucco. According to the Monroe County Property Appraiser's records,the subject structure was built in 1973. The property has approximately sixteen off-street parking spaces on three sides of the building. This property was appraised by our company for the sale. \' c c� Sale No. 2 - 12640 Overseas Highway, Marathon: This is a recent sale of a large single user building on 126`h Street and Overseas Highway in Marathon, formerly the Iberia branch bank. The site consists of a corner irregular-shaped lot fronting 429.43 linear feet along the northerly side of Overseas Highway and extends to the shoreline of the Gulf of Mexico. The total site area consists of 44,160 square feet of scarified plus 62,145 square feet of hardwood hammock,according to the Monroe County Property Record. The property is improved with a two-story Appraisal Company of Key West Page 66 Packet Pg. 2473 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL CBS/masonry building containing 9,972 square feet of gross building area. In addition, it includes an ADA compliant parking lot,ramps and elevator. This property was considered to be in above average condition. This property has great potential for redevelopment and expansion. According to the Monroe County Property Appraiser's records, the subject property was built in 1989. The sale was an arm's length transaction and sold with a 49% loan to value conventional loan. There were no seller concessions or adjustments according to the listing/selling agent. 1111115r { �z t r 0 tJ Sale No. 3 - 7885 Overseas Highway, Marathon: This is the most recent sale of a single user building on the corner of 79`h Street and Overseas Highway in Marathon. The site consists of a corner lot fronting 120.95 linear feet along the southerly side of Overseas Highway and fronts 145.57 linear feet along the westerly side of 79`h Street for a total site area of 13,752 square feet, according to the County Plat Map. The property is improved with a one-story wood frame building containing 2,148 square feet of gross building area. In addition, it includes a 160 0 square foot utility building. This property was in below average condition in need of remodeling. According to the Monroe County Property Appraiser's records, the subj ect property was built in 1958. The sale was an arm's length transaction and sold with a 14%purchase money mortgage. There were no seller concessions. This property was previously appraised by our company. N N N Appraisal Company of Key West Page 67 Packet Pg. 2474 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL 14 Sale No. 4 -3015 Overseas Highway, Marathon: This is the most recent sale of a single user office building across 30`h Street from the subj ect property, on the sale side of the highway. The site consists of a corner lot fronting 100 linear feet along the southerly side of Overseas Highway and fronts 87 linear feet along the westerly side of 30`h Street for 0 a total site area of 8,700 square feet, according to the County Plat Map. The property is improved with a one-story CBS/masonry building containing 3,850 square feet of gross building area. In addition, it includes a 350 square foot covered-entrance. This comparable was formerly utilized by the Keynoter newspaper for office use. According to the Monroe County Property Appraiser's records, the subject W property was built in 1963. The sale was an arm's length transaction and sold for cash. There were no seller concessions. This property was appraised by our company for the sale. 0 �i N Sale No. 5 - 85998 Overseas Highway, Plantation Kew This comparable consists of an owner-occupied,two-story,CBS/Masonry structure with covered porches on both levels. The Monroe County Property Appraiser's Office records indicate that the gross building area is 1,568 square feet and was built in 1998. The first floor area consists of approximately 784 square Appraisal Company of Key West Page 68 Packet Pg. 2475 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL feet of office/service area including two,2-fixture restrooms.The second level contains about784 square feet utilized of office space and one 2-fixture restroom. The attic is well finished as an office,but was not included in the gross building area calculations. The attic containing approximately 337 square feet which were considered as an amenity, however, this area had not been permitted for occupancy by the local governing agency. The building is in good condition and well maintained. The improvements are situated on a 9,500 square foot site which fronts 50 linear feet along the northerly side of Overseas Highway and extends 190 linear feet to the northerly in depth to the side of Porto Salvo Drive. The sale was an arm's length transaction. This property was previously appraised by our company. w, �„ ft CfliiNl l�l��a9��i�ll�l .E+ y a s.i. r It Sale No. 6 - 7849 Overseas Highway, Marathon: W This comparable is on an irregular shaped highway parcel at approximately mile marker 51.5 in Marathon,Florida. The subject consists of a mixed-use commercial/residential property. According to the Monroe County Property Appraiser's records and plat map,the dimension of this comparable fronts 0 80.98 linear feet along the southerly side of the Overseas Highway and extends 120 linear feet in depth along the westerly side, 150.53 linear feet along the easterly side and 75 linear feet across the rear. Hence,the site contains 10,145 square feet. The building consists of a one-story wood frame structure with a total of 1,864 square feet of gross building area. The easterly side of the building was commercial use, either office or retail, it contains 1,022 square feet and the westerly side formerly a two-bedroom one bathroom contains 816 square feet. The exterior of the building finished with painted T-111 wood N siding. The property includes parking along the front and side with a canopy-covered patio in the rear. Furthermore, the site improvements include a wooden handicap ramp that provides access to the rear entrance of the commercial section. According to the Monroe County Property Appraiser's records,the subject property was built in 1975. The property was in below average condition at the time of the sale as it had been damaged by Hurricane Irma. The sale was an arm's length transaction. This property was appraised by our company for the sale. Appraisal Company of Key West Page 69 Packet Pg. 2476 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL t }011\�lr£ � Sale No. 7 - 87889 Overseas Highway, Plantation: The site consists of an interior parcel with 175 feet of frontage along the Overseas Highway, US Highway No. 1, extending northerly approximately 120 feet along in depth. The property is located at approximately Mile Marker 87.8 in the Village of Islamorada,Plantation Key,Monroe County,Florida. 0 The site is a rectangular-shaped parcel has 175 feet of frontage along the southerly side of the Overseas Highway and extending generally in a southerly direction, about 120 feet in depth. The property also has 175 feet of frontage along the northerly side of Old County Road, also known as State Road 4A. Hence the property contains 21,000 square feet of upland area. The site measurements were confirmed with the Monroe County Property Appraiser's Records. A copy of the survey and plat map were made available. 2 0 This comparable is unique due to its large and prime highway frontage with a minimal amount of building improvements having a fairly low floor area ratio. Lot 14 and the northeasterly 1/z of Lot 15 at the westerly boundary of this property were undeveloped and are heavily wooded. However, the remaining improved site area is sufficient to support the current use of the property as a commercial office use structure. N According to the plans and specifications prepared by Siskind, Carlson &Partners, (SCP), Architects, the site is improved with a one-story 2,475 square feet Free Span Steel commercial building constructed on a concrete slab with a 791 square foot mezzanine. Hence, the building has a gross building area (GBA), of 3,266 square feet. The building is currently used as a multi office law firm. The property has adequate parking both in front, Overseas Highway, and in the rear on State Road 4A. The sale was an arm's length transaction and sold with 87%conventional financing. There were no seller concessions. This property was previously appraised by our office. Appraisal Company of Key West Page 70 Packet Pg. 2477 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL s 5 y �� Il� if fll q Sale No. 8 - 100460 Overseas Highway, Key Largo: This comparable consists of a rectangular, interior site with 100 feet of frontage along the Overseas Highway at approximately mile marker 100.5 and it contains 21,418 square feet of upland area. The site is improved with a one and one-half story mixed-use CBS building, which contains 8,200 square feet of gross building area. The current unit mix includes medical office, office, retail and a two- r_ bedroom/two bathroom upstairs apartment. 0 This is an arm's length transaction, wherein John H. Smith, Trustee sold the property to Commercial Center of the Florida Keys,LLC.This property was previously appraised by our office. This comparable was purchased for conversion to a medical clinic. 0 U) u '•� � N r N CD U Sale No. 9 -3988 Overseas Highway, Marathon: This is a comparable sale of a multi-tenant property that consists of three offices plus a large retail area. This comparable consists of a rectangular-shaped parcel,fronting approximately 50 linear feet along the northerly side of Florida Department of Transportation Right of Way and the Overseas Highway Appraisal Company of Key West Page 71 Packet Pg. 2478 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL encompassing 7,500 square feet of site area. The property also has 50 linear feet along the southerly side of Washington Street. A loading dock is located at the northeast side of the building and a loading ramp is graded toward Washington Street. The building consists of a metal, free-span building containing a gross building area of 1,969 square feet. There is also an unfinished,plywood floor mezzanine of 725 square feet that was included in the overall total of 2,694 square feet of gross building area. The mezzanine is utilized for storage plus it has a wood stairway providing access to the storage space. The a building contains a service/repair area, one 2-fixture restroom with a sales office/counter, storage area and two 10'by 16'overhead doors with mechanical openers. The building was built in 1991, according to the Monroe County Property Appraiser's records. The listing agent stated that the downstairs unit was in need of repair. The sale was an arm's length transaction and sold for cash. There were no seller CU concessions. This property was previously appraised by our office. `Sd p 1 s � J � 0 U r Sale No. 10 - 13367 & 13369 Overseas Highway, Marathon: 2 This is the recent sale of a mixed-use medical office and residential apartment property encompassing 0 two detached CBS structures with a total gross building area of 5,640 square feet. The facility is situated on a 1.29 acre upland site,plus there is an additional 0.91 acres of environmentally sensitive land. It appears that the existing leases were below market. The sale was an arms length transaction, all cash, wherein Alan G. Schmitt, Inc. Sold the property to 13367 Overseas Hwy.,LLC. cv Appraisal Company of Key West Page 72 Packet Pg. 2479 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Sale No. 11- 68100 Overseas Highway, t� This is the sale of a two-story mixed-use CBS structure containing 6,544 square feet of gross building area. There is a convenience store at the first level with apartments above. The improvements are situated on a 22,754 square foot highway front site within the City of Layton. The parcel does have a small amount of a canal frontage. This was an arm's length transaction. . z r lip qt .N Sale No. 12 -24752 Overseas Highway, Summerland Key. This is a comparable sale of a multi-tenant property that consists of a large retail and office area,which r_ could be subdivided. This comparable consists of a rectangular-shaped parcel,fronting approximately 0 120 linear feet along the southerly side of the Overseas Highway 100 linear feet in depth to the canal The property also fronts 120 feet along the canal with deep water access to the Atlantic Ocean. The parcel has four docking stations along the canal with a Tiki hut. The building consists of a solid concrete , structure with an elevated floor that conforms to the flood elevation. The building contains a gross LN building area of 3,690 square feet. The building was built in 1984, according to the Monroe County Property Appraiser's records. The sale was an arm's length transaction and sold with 74%conventional financing. 0 3= 1 }u N U Appraisal Company of Key West Page 73 Packet Pg. 2480 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL 1. Valuation Multiple Regression Anal: The appraisers analyzed twelve comparables from March 2016 and dismissed the outliers in our analysis. The outliers were not included in the above comparable sales, as they were excluded because they were well outside of the expected range. These were the most similar recent comparables and were considered reliable in valuing the subject property. Due to the lack of paired sales data, percentage adjustments and/or comparisons were not utilized. Instead, we a considered a multiple regression analysis of the comparables based on reasonable units of measure. We found a reliable correlation between the land area(square feet),gross building area (square feet), condition at the time of sale, floor area ratio (FAR) and the adjusted sales price. LN The x-variables, four independent variables are the site area, gross building area, condition at time of sale and floor area ratio for each of the comparables. The subject property is an office i- property that is in a similar zoning district as all of the comparables,though they have different locations, they are all on the Overseas Highway. Hence,we analyzed the various variables for similarities. They-variable,dependent variable,are the comparables adjusted sale price. This data population r- sample of the comparable sales indicates a reliable correlation which is measured by the R2 of the data set. In the case at hand, an acceptable correlation, R2 of 0.986 was indicated. Correlations near 1.0 are considered most reliable; therefore, the subject's correlation is considered to be very reliable, and the population sample appears appropriate in our valuation model and can be considered credible in the units of measure for the subject property. The W valuation computer analysis of this model indicated the following values: Subject Property Subject No./Coefficients $34,355.50 c Site Areal G.B.A.2 Condition3 FARO Tract B -Xn 43,560 7,055 1.75 0.16 Bn $0.79 1 $167.28 1 $174,646.37 -$186,479.33 11 r N CD In equation form, the regression model looks like this: N Y = (X1B1) + (X2132) + (X3133) + (X4134) +Intercept U Subject Property = (43,560 X $0.79) + (7,055 X $167.28) + (1.75 X $174,646.37) + (0.16 X - $186,479.33) + ($34,355.50) _ $1,524,723 Appraisal Company of Key West Page 74 Packet Pg. 2481 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL VALUE OF THE SUBJECT PROPERTY VIA MULTIPLE REGRESSION ANALYSIS IN THE SALES COMPARISON APPROACH(ROUNDED): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,520,000 2. Valuation Ouantitative Adjustments: Each of the comparable sales was analyzed in order to base the following factors in making comparisons to the subject property. No two commercial or mixed-use properties lend y themselves to the traditional match pair analysis. Each sale is considered generally similar to the subject in location on the Overseas Highway within the Middle Keys market area. LN However,adjustments are required for individual physical characteristics which typically affect value. Each characteristic is detailed below with an explanation of adjustments which were made to the comparable sales. The appraisers utilized the three most recent Comparable Sales No. 1,2, 3,plus Sales No. 5 and 7 which are older sales but more similar to the subject property T in terms of floor area ratio,thus,it was included in our adjustment grid. Our office has appraised four of these sales analyzed herein. Units of Measure: Typically, large retail/office use properties are analyzed via the sales price per square foot of gross building area.The price per square foot of gross building area is the most Za reliable unit of measure, in the case at hand. Discussion of Adjustments: W Market Conditions: Each of the comparable sales was analyzed in order to make comparisons to the subject property. The appraisers utilized sales since March 2016 located in the Middle Keys market area. Market 0 research of market conditions and our analysis of comparable sales indicated there has been a -0.9%to a 36.0%appreciation over the past number of years with a mean at 7.6%and a median at 2.3%per annum. We estimated 4.0% market condition ("time") adjustment for sales that occurred one-year prior to the onset of COVID-19, March 1, 2020. An analysis of the comparable sales/resales activity is as follows. N N U Appraisal Company of Key West Page 75 Packet Pg. 2482 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Previous Previous Annual Difference Sale lasting SP/LP Sales Sales 2ndPtice/ Change Appreciation In Dates No. DOM Price Ratio Date Puce Sq.Ft. Price Rate Years 1 N/A E N/A N/A N/A N/A N/A N/A N/A N/A ........................:.............................. .. . ...................:.......................:...................s...................................................................... 2 423E $2,400,000 85.4%:: N/A N/A N/A N/A N/A N/A 3� 161: $649,000 86.7%: 04/02/04 $435,000 $202.51 $127,500 1.7% 15.59 4 5, $799,500 93.8%. N/A N/A N/A N/A N/A N/A 5 321E $599,000 96.8%E N/A N/A N/A N/A N/A N/A 6 141E $340,000 88.2%E 06/01/00: $230,000': $123.39E $70,000 1.5% 18.13 ...................................:............................................ :....................:.......................:...................:..................................................................... 7 192: $899,000 89.0%E 12/09/09: $550,000: $168.40E $250,000 4.6% 8.28 ............................................................ .................:....................:. ..............................;............................................... 8 58E $1,300,000 100.0%E N/A N/A E N/A N/A N/A N/A :................................................................... ...........................................s...................................................................... 9 331E $650,000 89.2%E 07/28/16E $400,OOOE $148.48: $180,000 36.0% 1.21 10 95E $1,000,000 110.0%E 12/O1/95': $580,000 $102.84E $520,000 3.0% 21.84 11 160E $1,295,000 90.7%E N/A � N/A �N/A N/A N/A N/A ...................................{............................................:....................;......................{....................E.................................................................... 12 N/A N/A N/A:: O5/O1/09 $775,000 $210.03E $50,000 0.9% 7.00 Subject y Mean 189 93.0% 7.6% Median 161 90.0% 2.3% M Minimum 5 85.4% -0.9% '✓ Maximum 423 110.0% 36.0% 51 0 tJ Property Rights: The subject has no leases encumbering the property; thus, a Fee Simple analysis is warranted herein. All the comprables were owner-occupied or no long-term leases Iq were in place; thus, they were considered Fee Simple Interest. Conditions of Sale: All of the sales were arm's length transactions; thus, no adjustments were warranted herein. 0 Financing: All of the comparable sales were considered cash equivalent, either cash, conventional or private financing(purchase money mortgage)at market rates. Thus,none of the comparables required adjustment for financing. Floor to Area Ratio (FAR): Most of the comparables, had generally similar FAR's (Building N CD Area to Land Area Ratios). Sale No. 2 has a lower FAR;thus, it was negatively adjusted,while Sale No. I was positively adjusted due to having a higher FAR. The other sales were considered equal in floor area ratio. Typically, a sale with a lower FAR has a higher price per square foot of gross building area, which is the most reliable unit of measure, in the case at hand. e( Gross Building Area: Market data indicates that the larger the gross building area,then the price per square foot of gross building area,decreases resulting in an inverse relationship. Therefore, the smaller sites require a negative adjustment. The smaller the gross building area,the higher the price per square foot of gross building area. Sale No. 2 is larger and is positively adjusted, Appraisal Company of Key West Page 76 Packet Pg. 2483 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL while the other Sales No. 3, 5 and 7 are smaller negatively adjusted. Sale No. 1 was similar in gross building area; thus, considered equal. Highway Frontage: The subject has frontage along the Overseas Highway in Marathon. All of the comparables are located on-the-highway; thus, no adjustments were made. Water Frontage: The subject is a dry, nonwaterfront lot. Sales 1 has a small amount of canal frontage and Sale No. 2 has water view with a mangrove fringe which was not boatable. Thus, these comparables were negatively adjusted. Overall Location: Sales No. 3, 5 and 7 were considered to be similar overall in location. No adjustments were warranted. Sales No. 1 and 2 were had corner locations;thus,were negatively adjusted. Zoning: The subject is located within the P, Public Use Zoning District. All the comparables are located in superior commercial districts. Thus, they were negatively adjusted. Condition/Quality of Construction: The subject property is considered to be in above average 0 condition. Sales No. 1, 5 and 7 were superior; thus, they were negatively adjusted. Sales No. za 2 and 3 were inferior and positively adjusted. The following grid summarizes each sale and shows the necessary adjustments as previously LN described: 0 N N N Appraisal Company of Key West Page 77 Packet Pg. 2484 (dems Duel aq!l /4sg ) (A4un Rq) (3e L -L) aq! jo Isla 6 - L- :4uqwq3e44V to m co C4 �a tij r O •r.+ � V:M:� �'� N:��'V:O � : c3: ,??I 00 U 't O O 00: kri nl oo �+ cn �;vi:cn �: :�:�vi:vi; z r II : II : II .�. r II � M y Ala :z: J C1 M N; II II II M N M M oo ••o x �? E .��vi''' E E � � E VOi ° ea tV 'o ,� m; cai II II II II o: II II II o O Cl O 00 ca v, �';�:oo �:U �c�i i,� a: N � N N: N � � N oM :....:........ .... .. °v oo kc,, 0 fy O r O N: C a:p:;r:M:p a�: ° o o:SN: �i �;cN 0 3 ll i Ili II II c o: ll v� v� v, o ° kc' o 0 a c�: o 0 0 � � � N. 00 � N x r :n � .� : O V� V� o 0 0 0 y r �, p. .p a:A i M.O:G1 'C� o o \o \o \o o C ? 0 k ev O�c^• �:�'' °�'•-• �' .(� � II : II : II II � II : II o 0 0 �p � N v G4: 16, ct .4O � �' � � � c3 bl o U � � �, s. a � °�' c4 S7 U pr a: �, s, a � r07•, r°7•, °' "'O y' N P. w 0 O � N ti U ti � 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL $221.00 X 7,055 = $1,559,Eli Value via the Adjustment Grid via Sales Comparison Approach (Rounded): $1,560, Based upon the above adjustment grid, the subject's value range was between $199.24 and a $258.43 per square foot of gross building area with a mean of$215.44 and a median of$205.58. As a result, we estimated a price of$221.00 per square foot of gross building area. This was deemed appropriate for the subject property based on a weighted mean and upon the various factors previous described. Sales Comparison Approach Correlation: The Sales Comparison Approach was considered applicable in the subject's valuation due to the sales and market activity within the Middle Keys market. We have included the most recent T sales in the market area considered being the most representative of the subject property. Furthermore, the appraisers have utilized units of measure and a large population sample with a very tight correlation indicated. This approach was considered applicable as it demonstrates r- buyers and sellers'reactions and the market activity for similar use properties. The two methods 0 in the Sales Comparison Approach were correlated to determine the market value of the subject property. In correlating this value, both the regression model and the adjustment grid was weighted equally. We have only weighted the Sales Comparison Approach heaviest in our final reconciliation of values as it most representative of the market. MARKET VALUE OF THE SUBJECT PROPERTY IN FEE SIMPLE ESTATE BY THE SALES COMPARISON APPROACH,AS OF OCTOBER 29,2020,(ROUNDED): . . . . . . . . . . . $1,540,000 9 3. Market Data: (Environmentally Sensitive Wetlands) A thorough search was conducted for recent sales of similar wetlands or bay bottom land properties which were purchased for preservation. Most of the preservation or conservation properties are purchased by governmental or quasi-governmental agencies. A survey of the market area resulted in seven sales, which were considered and utilized in a value estimate for N the subject property. The following is a summary of the relative sales. Appraisal Company of Key West Page 79 Packet Pg. 2486 (dems Duel Ajejq!l H-LW 4sgdeg) (A4unoo Aq) (3e L9- Ajejq!-1 jo lesiejddV 6Z-0 VOZOZ :4u8wq3B44V co 0 a. 9z rN GJ a°'+ N o � c c O O: N \V'� d' �°•'I '� E E gz ICI o b C, 8 C, C, 8 <E 0 0 z sz 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Value Anal The environmentally sensitive wetlands and/or bay bottom comparable sales have the same Highest and Best Use as the subject property environmental land. These sales reflect an adjusted range from $0.004 to$0.29 per square foot of land area with a mean of$0.12 per square foot and a median of$0.07 per square foot. Each of the comparable sales was analyzed and researched with comparable units of measure a considered. In order to eliminate some of the disparities,we have analyzed the comparable sales based on a regression model. We have considered a trend line regression model and found a moderately reliable correlation between the site size(SF)of each comparable within the market area. Market condition adjustment was not considered as these preservation sales are typically not subject to variables in the market. .2 The statistical analysis or regression is a technique used to identify and measure variable to the sale prices of comparable properties. Regression is a widely used model in both appraisal practice and in related real estate research, as it is similar to the Sales Comparison technique of CO matched paired data. The use of regression model relates to traditional sales comparison, whereby,the influence of time adjusted sale prices,property size, dollars per square foot to the subject property in relation to their mean or average. Regression produces both a point estimate of value (mean) and an objectively determined measure of dispersion (standard deviation or Za standard error)around the point estimate. The greater the number of sample size the greater the M statistical significance and the closer to a 1:1 correlation the more assured is the resultant value. The x-variables, independent variables, is the site size (square feet) of each comparable within the market area. The y-variable, dependent variable, is the comparable's sale price per square foot. This data population sample of the comparable sales indicates a reliable correlation which 0 is measured by the R2 of the data set. The subject data set indicated a correlation of+0.618. Correlations near 1.0 are considered most reliable; therefore, the subject's correlation is considered fairly reliable,and the population sample appears appropriate in our valuation model and can be considered credible in the units of measure for the subject property. In the case at hand, the appraisers utilized a power trendline. A power trendline is a curved line that is best used with data sets that compare measurement that increase or decrease at a specific rate for example, the increase or decrease of a price per square foot at incremental size intervals. You cannot create a power trendline if your data contains zero or negative values. a "As Is " Environmentally Sensitive and Wetlands Land Value Analysis: The following Site Size Analysis data sorted by site size, as well as a computer analysis graph of the data set. Appraisal Company of Key West Page 81 Packet Pg. 2488 Appraisal Report 3251 Overseas Highway, Marathon, FL Site Size Analysis Sale Sales Lot Area Price/ No. Price Sq Ft $/Sq. Ft. 1 $1,800 443,876 $0.004 ..................................................................................................................... 2 $9,333 201,247 $0.046 3 $20,000 827,640 $0.024 4 $20,000 166,834 $0.120 5 $12,328 174,240 $0.071 6 $3,000 10,285 $0.292 7 $838 3,350 r $0.250 Subject, N/A 22,0981 $0.13 0 EnvironmentM Site Size AnMysis /Sq. Ft. $0.500 $0.450 y=45,051x-O... R2 0,634 rq Iq $0.400 $0.350 0 -ru $0.300 Mn $0,292 $0.250 $0,250 C14 $0.200 C44 CD $0.150 C44 $0,13,9 0, $0,120 $0.100 E $0,071 $0.050 046 $0,024 $0.000 a $0,004 1 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000 750,000 800,000 850,000 Appraisal Company of Key West Page 82 Packet Pg. 2489 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL In equation form, the regression model looks like this: Y =45.204x-0.511 Y = (45.204 x 22'098-0.578) _ $0.1379/Square Foot Subject Property Value: 22,098 Square Feet X $0.1379/Square Foot= $ 3,080 INDICATED PRESERVATION VALUE OF THE ENVIRONMENTALLY SENSITIVE PORTION OF THE y SUBJECT PROPERTY BY THE SALES COMPARISON APPROACH, VIA THE REGRESSION ANALYSIS,AS OF OCTOBER 29,2020(ROUNDED): . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000 Valuation Conclusion: In order to estimate the value of the subject property,we analyzed recent — sales of large comparable most office properties. In our preceding analysis,a regression analysis model and a detailed adjustment grid is presented for the subject property.However,the subject property contains approximately 22,098 square feet of environmentally sensitive land which must be added to the upland analysis. Therefore,in our opinion the subject's overall value should be noted below,which is considered reasonable and well-supported. The calculation is noted as follows. Market Value via the Sales Comparison Approach Rnd : $1; 540,002 Z Environmental Sensitive $3,000 "As Is" Value via Sales Com arison Approach (Rounded): $1,543,000 "AS IS"VALUE OF THE FEE SIMPLE INTEREST IN THE SUBJECT PROPERTY,AS INDICATED BY THE SALES COMPARISON APPROACH(Rounded) . . . . . . . . . . . . . . . . . . . . . . . . . $1,543,000 c) w cv cv CD cv Appraisal Company of Key West Page 83 Packet Pg. 2490 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL RECONCILIATION AND FINAL ESTIMATE OF VALUE The following Fee Simple value indications have been developed in our analysis of the Market Data. Reconciliation Fee Simple i2 Valuation Method: Market Value Cost Approach N/A Income Approach: $1,540,000 Sales Comparison Approach $1,543,000 As Is" Market Value of the Fee Simple W Estate of the Subject Property, as of October $1,540,000 29, 2020 (Rounded): The greatest weight is given to that approach in which the appraisers have the highest degree of confidence. This implies a minimum of assumptions and a sufficient quantity of data. The Cost Approach was not considered applicable due to the age and condition of the building improvements as estimating depreciation would be very subject and lessen the reliability of the valuation method,plus the lack of land sales, especially in the Public Zoning district. Based on analysis of the real estate market activity in the subject property market area and considering the applicability and reliability of each of 0 the approaches, it is our opinion that the Market Value of the subject property is most accurately indicated by the Sales Comparison Approach, due to the availability of recent similar use owner- occupied properties. Accordingly,greatest weight has been placed on the Sales Comparison Approach. The Income Approach was weighted moderately due to the income producing potential for subject property, (if leased as an office) and reliable market rental income and expense data. N Based on market analysis and research,it is our opinion that the "As Is"Market Value ofthe Fee Simple Estate ofthe Subject Property,commonly known as 3251 Overseas Highway,Marathon,Florida,33050, 0) subject to proposed split-out from larger parcel, definitions, assumptions and limiting conditions, as of October 29, 2020 is: �t ONE MILLION FIVE HUNDRED FORTY THOUSAND DOLLARS ($1,540,000) The "As Is" Market Value for the subject property considers no personal property. Appraisal Company of Key West Page 84 Packet Pg. 2491 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL CERTIFICATE OF APPRAISAL We HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY: Mr. Kevin G. Wilson, P.E. Assistant County Administrator y Monroe County, FL (Florida Keys) 102050 Overseas Highway Key Largo, FL 33037 We have personally examined the following property: Commonly Known as: 3251 Overseas Highway Marathon, Florida 33050 ca and based on market analysis and research, it is our opinion that the "As Is"Market Value of the Fee Simple Estate ofthe above Subject Property,subj ect to proposed split-out from larger parcel,definitions, assumptions and limiting conditions, as of October 29, 2020 is: ONE MILLION FIVE HUNDRED FORTY THOUSAND DOLLARS ($1,540,000) The "As Is" Market Value for the subject property considers no personal property. 0 cv cv CD cv Appraisal Company of Key West Page 85 Packet Pg. 2492 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL WE ADDITIONALLY CERTIFY that, to the best of our knowledge and belief: o The statements of fact contained in this report are true and correct. o The reported analyses,opinion,and conclusions are limited only by the reported assumptions and limiting conditions,and are ourpersonal,impartial,and unbiased professional analyses,opinions a and conclusions. o We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. o Our engagement in this assignment was not contingent upon developing or reporting predetermined results. o Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or a direction in value that favors the cause of the client,the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal o Our analyses, opinions, and conclusions were developed and this report has been prepared in M conformity with the Uniform Standards of Professional Appraisal Practice. o James E. Wilson has made a site visit of the exterior and interior walk-through of the property that are the subject of this report. Richard Padron only made an exterior site visit. 0 o No one has provided significant professional assistance to the persons signing this report. o The use of this report is subject to the requirements of the State of Florida relating to review by the Florida Real Estate Appraisal Board of the Department of Professional Regulations,Division of Real Estate. o The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the a Standards of Professional Appraisal Practice of the Appraisal Institute. o The appraisers have performed no services, as an appraiser or in any other capacity, regarding the property this is the subj ect of this report within the three years period immediately preceding acceptance of this assignment. Appraisal Company of Key West Page 86 Packet Pg. 2493 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL o James E.Wilson,MAI,MRICS,has completed both the Standards and Ethics education program requirements of the Appraisal Institute for Members. APPRAISAL COMPANY OF KEY WEST James E. Wilson, MAI, MRICS, President Richard Padron, CCIM, MSA State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ 544 c c cv cv cv Appraisal Company of Key West Page 87 Packet Pg. 2494 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL PROFESSIONAL QUALIFICATIONS JAMES E. WILSON, III, MAI, MRICS James E.Wilson has been a resident of South Florida since 1976. His education includes a Bachelor of Science in Business Administration with a Major in Economics from the University of Florida, 1987- a 1991. His experience in the real estate industry began in early 1992 as a residential real estate appraiser in Pompano Beach, Florida. He appraised a wide variety of single and multi-family residential properties in Dade, Broward, and Palm Beach counties over a two-year period. In the search of advancement and challenge,James Wilson moved to the City of Key West,Monroe County,Florida in order to obtain experience and practice commercial real estate appraisal valuation techniques in a demanding and somewhat unique market area. Over the past 27 years James has been exposed to a wide-range of appraisal projects, including highest and best use studies, complex property appraisals, and wetland and environmentally sensitive valuations including transferrable development rights. His T appraisal experience includes financial and investment analysis, appraisal review, feasibility and planning analysis, as well as market research and analysis. James Wilson is a State Certified General Real Estate Appraiser(licensed to perform residential and commercial appraisals)and a Member of the Appraisal Institute,MAI. James obtained the MAI designation on March 26,2020.He is also a member of RICS (Royal Institution of Chartered Surveyors),which is an international member organization for professionals in property, land, real estate, construction and related environmental issues. Jim is past President of the Key West Gator Club, 2013/2014 President of the Sunset Key West Rotary Club, member of Class VII Leadership Monroe,2012 President of the Key West Chamber of Commerce, and has been elected to continue to serve on the Board of Directors of the Key West Chamber of Commerce. Education: SOUTH BROWARD HIGH SCHOOL, Hollywood, FL, 1987. 0 9 UNIVERSITY OF FLORIDA, Gainesville, Florida - Bachelor of Science in Business Administration - Major in Economics, 1987-1991. cv APPRAISAL INSTITUTE Appraisal Reporting of Complex Residential Properties, October, 1993. Persuasive Style in Narrative Appraisal Reports, May, 1994. ACE 1779 - "Special Purpose Properties - The Challenge of Real Estate Appraising in Limited Markets", September, 1996. 410 Standards of Professional Practice, Part A (USPAP), 8/97. 420 Standards of Professional Practice, Part B, August, 1997. 520 Highest& Best Use and Market Analysis, October, 1997. Non-Conforming Uses Seminar, January, 1998. 510 Advanced Income Capitalization, May, 1998. 530 Advanced Sales Comparison & Cost Approach, May, 1998. Appraisal Company of Key West Page 88 Packet Pg. 2495 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL 540 Report Writing & Valuation Analysis, August, 1998. 550 Advanced Applications, February, 1999. Regression Analysis in Appraisal Practice: Concepts & Applications, Seminar, March, 2000. General Demonstration Appraisal Report Writing Seminar, March, 2000. 800 Separating Personal&Real Property from Intangible Business Assets,March, a 2002. y Successful Completion of the General Comprehensive Examination for the Appraisal Institute Uniform Appraisal Standards for Federal Land Requisitions, March, 2007 General Demonstration Appraisal Report Writing Seminar, August, 2007 Valuation of Conservation Easements, January, 2008. Appraising Distressed Commercial Real Estate, June, 2009 Oil Spills and Property Values, Webinar, August, 2010 Business Practices and Ethics, September, 2010 A Debate of the Allocation of Hotel Total Assets, October 26, 2010 Appraisal Institute Update, May 19, 2011 Appraisal Curriculum Overview (2-day General) May, 2011 c c, Professional Qualifications of James E. Wilson, III (Continued) APPRAISAL INSTITUTE Perspectives from Commercial Review Appraisers, July 20, 2011 0 Fundamentals of Separating Real Property, Personal Property, and Intangible ru Business Assets, 05/07/2012 - 05/08/2012 UAD-Up Close and Personal, November, 2014 Expert Witness Testimony: To Do or Not to Do, November, 2014 Analyze This! Applications of Appraisal Analysis, November, 2014 Florida Appraisal Laws and Regulations Update Reviewers Checklist , November, 2014 National USPAP Update Equivalent(2014-2015) , November, 2014 a Purchase Price Allocations for Financial Report and Tax, April 16, 2014 Behind the Headlines,the New Real Estate Real Estate Economy,May 16,2014 General Demonstration Report Writing, Online, October 28, 2019 GOLD COAST SCHOOL OF REAL ESTATE Real Estate Principles, Practices, and Law - FREC Course I, May, 1992. Salesman Post-License Program, February, 1994. Appraisal Company of Key West Page 89 Packet Pg. 2496 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Mortgage Broker, Exam-Prep Program, September, 1992. AB I- Appraisal Board- Fundamentals of R.E. Appraising, 5/92. AB II- Appr. Board - Appraising Resid. & Income Properties, 2/94. AB IIb - Appraisal Board - Cert. Resid. Appraisal Course, 7/94. AB III - Appraisal Board - Certified General Appraisal Course (Income Capitalization Course), February, 1995. USPAP -Uniform Standards of Professional Appraisal Practice, 6/92. USPAP Course, September, 1995. A-102 -Plan Reading for Appraisers, September, 1995. National USPAP Update Course, June 2006 Techniques of Income Property Appraisal, June 2006 McKISSOCK DATA SYSTEMS Automated Valuation Models, October, 2000. Uniform Standards of Professional Appraisal Practice, October,2000. Factory Built Housing, October, 2000. Appraiser Liability, September, 2002. Appraising Nonconforming & Difficult Properties, September,2002. Appraiser Liability, USPAP, September, 2002. Appraising for the Secondary Market, October, 2004. 0 Appraising High-Value Residential Properties, October, 2004. Florida Laws and Regulations, October, 2004. Limited Appraisals and the Scope of Work Decision, October, 2004. National USPAP Equivalent, October, 2004. Florida Laws and Regulations, September 2006. Disclosures and Disclaimer, September, 2006. Appraisal Trends, September 2006. National USPAP Update Equivalent(2008-2009), November, 2008. Introduction to Expert Witness Testimony, November 2008. 0 Mortgage Fraud-Protect Yourself, November, 2008. v Florida Appraisal Supervisor-Trainee Roles and Relationships,November,2008. Florida Laws and Regulations, November, 2008. National USPAP Update Equivalent(2010-2011), August, 2010. Risky Business: Ways to Minimize Liability, August, 2010. cv cv Appraisal Company of Key West Page 90 Packet Pg. 2497 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Professional Oualifications of James E. Wilson, III (Continued) Florida Laws and Regulations, August 2010. Florida Apprisal Supervisor-Trainee Roles and Relationships, August, 2010. The Changing World of FHA Appraising, August, 2010. Systems Built Housing:Advances in Housing for the New Millennium,October, 2012 Deriving and Supporting Adjustments, October, 2012 Introduction to Regression Analysis for Appraisers, October, 2012 Introduction to Residential Green Building for Appraisers, October, 2012 Florida Appraisal Laws and Regulations Update National USPAP Update Equivalent(2012-2013), October, 2012 ' Appraisal of Fast Food Facilities, November, 2016 _2 2016-201 7-Hour National USPAP Update Course, November, 2016 s Managing Appraiser Liability, November, 2016 Florida Appraisal Laws and Regulations, November, 2016 Advanced Hotel Appraising-Full Service Hotels, November, 2016 Florida Appraisal Laws and Regulations, October 31, 2018 2018-2019 7-Hour National USPAP Update Course, November 2018 Appraising Small Apartment Properties, November 2018 Appraisal of Land Subject to Ground Leases, November 2018 The Basics of Expert Witness for Commercial Appraisers, November 2018 VALUE INFORMATION TECHNOLOGY, INC. "Perspectives on Appraisals" FREAB Course ACE41591, June, 1995. _ NORTH BROWARD BOARD OF REALTORS ACE 591 - Basics of Construction - How a Florida Home is Built H, January, 1994. 0 Certification: State certified general real estate appraiser, as designated by the Department of Professional Regulation,State of Florida;Registration No. RZ 2164. Licensed Real Estate Salesperson, as designated by the Department of c„ Professional Regulation, State of Florida; License No. SL 0589552 (currently inactive). E Professional Associations: Key West Board of Realtors MAI, Member of the Appraisal Institute, March, 2020 Member4224192 Member of RICS (Royal Institute of Chartered Surveyors), October, 2010 Member41299389 Appraisal Company of Key West Page 91 Packet Pg. 2498 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Affiliations: Past President of the Key West Gator Club (Alumni Organization of the University of Florida Member of Class VHI, Leadership Monroe County Board Member of the Rotary Club of Sunset Key West, 2013/2014 President, 2009 Treasurer,2010 Vice President,2011 President-Elect,2012 PresidentBoard of Directors of the Key West Chamber of Commerce, Board Member for 10+ years Experience: WILCO VALUATIONS,P.A. d/b/a APPRAISAL COMPANY OF KEY WEST, James Wilson, President and his wife, Maria Virginia Wilson, , also a State Certified General Real Estate Appraiser purchased the CU Appraisal Company of Key West from Mr. Richard Padron in April, 2004. _ APPRAISAL COMPANY OF KEY WEST, INC., Fee Commercial Real Estate Appraiser, April, 1994 to April, 2004. F.C.P. APPRAISAL SERVICES, INC., Senior Real Estate Appraiser and Trainer, May, 1992 to April, 1994. 0 0 cv cv CD cv Appraisal Company of Key West Page 92 Packet Pg. 2499 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Appraised various types of properties in the Florida Keys, including: Retail Stores Commercial/Residential Condominiums Restaurants Full-Service Marinas/Boat Yards Strip Centers Environmentally Sensitive Acreage Office Buildings Industrial Uses Mixed-Use Properties Guest Houses /Hotels/Motels Service Stations Mobile Home and RV Parks Multi-family Projects Warehouse (including mini-storage) Proposed Developments Special-Use Properties including = Schools Single-family Estates Seafood Processing Plants APPRAISER CERTIFICATION 0 }'. r.. PICK 5CCT-T,GOVERNOR JONATHANZACHEM,SECRETARY a dbpr a W STATE OF FLORIDA � DEPARTMENT OF BUSINESSAND PROFESSIONAL REGULATION � FLORIDA REAL ESTATI:APPRAISAL BD 0 THE CERTIFIED GENERAL APP",,',ISE !HFIR ERTjFIED UNDER THE PgVllgl SO 1IIAP7f435FL( FtlITTTES 'VI�II�So`N�JArUlES " 14t'CFI'Si�E�R��iT cv c44 f , r N LICENSE 46M��i2 RZ21b4 EXPIi2ATZ I)�� 41riB 12 3t),2( t3 Always verity licenses online at MyRoridal.icense.eom Do not alter this document in any form. � This is your license.It is unlawful for anyone other than the licensee to use this document. Appraisal Company of Key West Page 93 Packet Pg. 2500 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Professional Oualifications Richard Padron, CCIM, MSA,AAR, SRC Richard Padron has a diverse background in the real estate industry. His experience and education in the real estate profession have continually excelled. He has been affiliated in residential construction, real estate development and the real estate brokerage business for more than 28 years. During this time, he has managed construction projects,marketed,and sold several hundred homes in various subdivisions in the Florida Keys and Key West, and has appraised thousands of single family, multi-family and commercial properties. His real estate career has involved the entire development process from acquisition to project sellout, including the permitting and operation of wastewater treatment systems, as well as dealing with environmental concerns. _2 Prior to founding the firm, Appraisal Company of Key West, Inc., Mr. Padron formed the corporation of Richard Padron&Associates,Inc.,areal estate brokerage corporation. These corporations have been in existence since 1984,providing all types of real estate services,including brokerage;market,financial T and investment analysis; expert witness testimony; appraisals;property operation review, and planning and feasibility analysis. Education: Real Estate Certificate from Florida Keys Community College 0 Professional >% Activities: MSA: Master Senior Appraiser, (1984). Certificate No. 00883. CCIM: Certified Commercial-Investment Member, (1986). Certificate No. 2765. AAR: Accredited in Appraisal Reviewer, ( 1987). Certificate No. 77. SRC: Senior Real Estate Councilor, (1993). Certificate No. 89. Certification: State-Certified General Real Estate Appraiser, License No. c 0000544, (1990). v Licensed Real Estate Broker, State of Florida. Licensed Class A Wastewater Treatment Plant Operator,State of Florida. N Associations: National Association of Realtors Florida Association of Realtors Key West Board of Realtors Marathon and Lower Keys Board of Realtors. National Association of Master Appraisers E Commercial-Investment Real Estate Council Accredited Review Appraisers Council National Association of Counselors Experience: Appraisal Company of Key West, Inc. (Since 1987) Richard Padron & Associates, Inc. (Since 1984) Michael A. Padron, Inc. (1978-1984) Riviera Enterprises, Inc. (1968-1984) Appraisal Company of Key West Page 94 Packet Pg. 2501 O.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL Area of Expertise: • Analysis and evaluation of many types of real estate • Assessment of project feasibility including: Market research, investment analysis, and feasibility study Highest and Best Use Analysis • Litigation support and expert witness testimony • Types of properties appraised, evaluated, and analyzed: Hotels, Motels & Guesthouses Retail/Office and/or Specialty Stores v, Shopping Centers & Malls Warehouses (Mini, Storage & Distribution) Restaurants Highest& Best Use Study Theaters Mobile Home & Recreation Vehicle Parks Marinas, Boat Storage & Repairs Single Family Residential & Condominiums Seafood Packing House Multi-Family & Income Properties `✓ Multi-Family Projects Environmentally Sensitive Tracts 0 Proposed Development Projects 0 N N N Appraisal Company of Key West Page 95 Packet Pg. 2502 0.3.e Appraisal Report 3251 Overseas Highway, Marathon, FL APPRAISER CERTIFICATION ���v Ran 4eSanis,Governor Halsey Beshears Secretary ($ Y� dbpr y STATE OF FLORIDA DERARTIVIENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APpRPIS @ HEREIRI IS dERTIFIED UNDER THE PRdVISIdNS dF CI I F+TE{ 75,FI t77?IDA ,TATUTFS dt ����2P FL.F GLRR AYF if�^01 � t is rc 64ty E NUMBJER PR 544 O EXPIRATION DATE: NOVEMBER 30,2022 Always verify licenses online at MyFloridaLicense.cQm Q � (3' Do not alter this document in any farm. (B r This is your license.It is unlawful for anyone other than the licensee to use this document. 0 N N N Appraisal Company of Key West Page 96 Packet Pg. 2503 0.3.f 3144^earths€de Drive,Ste 201 � Key West FL 33(40 APPRAISAL off'im t3051296-4563 , [`«sN,t3031 312.21I€1 Website:th-kecsrrpp,Htsalsxom R?-tti�d:j inn a„#la-kUJ�;21ai�t.a�sa�€�.e•;o�tt January 11, 2018 Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL(Florida Keys) 102050 Overseas Highway Key Largo, Florida 33037 Appraisal Report: George Dolezal Monroe County Branch Library 3251 Overseas Highway Marathon, Florida 33050 P.O.458186 0 Our File No.: 188-17 Dear Mr. Wilson: I performed an appraisal assignment and estimate of the "As Is"Market Value of the Fee Simple Estate v of the subject property commonly known, the Marathon Library, 3251 Overseas Highway, Marathon, Florida,as of December 30,2017.The reader is advised to review the Scope of Work section within this LN report. The subject property is located on the Overseas Highway,within the City of Marathon at approximately mile market 49. The subject site is a proposed split-out of a large Monroe County owned 2.61 acre tract of uplands, plus 2.40 acres of environmental sensitive land. The site would be an interior rectangular parcel with 100 feet of frontage along the southerly side of the Overseas Highway extending southerly, approximately 275 feet in depth.Thus,according to the proposed split-out,the subj ect site would consist of approximately 27,500 square feet or 0.63 acres of upland area. The subject site is improved with an elevated CBS/Masonry library building containing a gross building area of 7,055 square feet. In addition, there is a large covered canopy, covered walkway,porches,plus an open loading ramp totaling 2,376 square feet. The subject has historically been utilized as a Monroe County Branch library, which was built in 1982 per a plaque on the builddng. The entire property is owner-occupied.Ipersonally inspected the subj ectbuilding and site improvements.The overall site area and dimensions were referenced from a Monroe County staff.The building dimensions were referenced from the survey and verified by my on site measurements. Packet Pg. 2504 0.3.f Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL(Florida Keys) February 1, 2018 Page 2 This report contains the results of my investigation and analysis made in order to furnish an estimate of the Market Value of the Fee Simple Estate of the Subject Property. The Fee Simple Estate is the unencumbered value of the subject property; basically, market rents and terms are considered with no regard to existing leases and terms. The subj ect property consists of an owner occupied property,which 2 is not encumbered by any long term leases. Therefore, only the Fee Simple Interest is included herein. However, the reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. The County is considering selling the library portion of the overall government complex to the adjacent Fishermen's Community Hospital Market Value is defined as the most probable price in cash(or its equivalency)for which the appraised property will sell in a competitive market under all conditions requisite to a fair sale. Market value r_ assumes a normal or reasonable time for exposure on the open market. 0 Based on market analysis and research,it is my opinion that the "As Is"Market Value ofthe Fee Simple U Estate ofthe Subject Property,commonly known as 3251 Overseas Highway, Marathon,Florida,33050, IR subj ectto split-out from a largerparcel,definitions,assumptions and limiting conditions,as of December e 76 30, 2017 is: ONE MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS ($1,350,000) The "As Is" Market Value for the subject property considers no personal property. 0 This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a)of the Uniform Standards of Professional Appraisal Practice. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning,and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. This confidential report is prepared for the sole use and benefit of the Monroe County Board of County Commissioners, is based, in part,upon documents,writings, and information owned and possessed by the client, Monroe County. This report is provided for informational purposes only to third parties authorized to receive it. Appraisal Company of Key West assumes no responsibility if this report is used in any other manner. Packet Pg. 2505 0.3.f Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL(Florida Keys) February 1, 2018 Page 3 If you have any questions regarding this appraisal report,please feel free to contact me. Thank you for giving me the opportunity to provide this service for you. This transmittal letter must remain attached to the report,which contains 76 pages including related exhibits, in order for the value opinion set forth to be considered valid. Respectfully submitted, CO James E. Wilson, MRICS, President c State-certified general real estate appraiser RZ 2164 email: intO th-1_Cyscipp cii��jis cons � ci Report Attached: R:AComm-17\188-17\Comm-188-17.wpd 0 c� r9 cv r. cv U Packet Pg. 2506 0.3.f APPRAISAL REPORT Property Type: COUNTY PUBLIC LIBRARY/POSSIBLE OFFICE CONVERSION Property Commonly Known As: GEORGE DOLEZAL MONROE COUNTY BRANCH LIBRARY 3251 OVERSEAS HIGHWAY, GULF s MARATHON,MONROE COUNTY,FLORIDA 33050 Prepared For: MR. KEVIN G.WILSON,P.E. ASSISTANT COUNTY ADMINISTRATOR MONROE COUNTY,FL(FLORIDA KEYS) 102050 OVERSEAS HIGHWAY KEY LARGO,FL 33037 Valuation Date: DECEMBER 30,2017 Prepared By: James E. Wilson, MRICS, President State-certified general real estate appraiser RZ 2164 cv APPRAISAL COMPANY OF KEY WEST E 3144 Northside Drive, Suite 201 Key West, Florida 33040 < Our File No.: 188-17 Packet Pg. 2507 Appraisal Report 3251 Overseas Highway, Marathon, FL TABLE OF CONTENTS COVER PAGE LETTER OF TRANSMITTAL SUMMARY OF FACTS AND CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 SUBJECT PROPERTY PHOTOGRAPHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ASSUMPTIONS AND LIMITING CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 STATEMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 FLORIDA KEYS MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 0 LOCATION MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 AERIAL PLAT MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 6 PURPOSE & INTENDED USE OF THE APPRAISAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 PROPERTY RIGHTS APPRAISED & DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 SUBJECT'S MARKET AREA (NEIGHBORHOOD) ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . 25 DEMOGRAPHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 04 MARKETING TIME/EXPOSURE TIME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 04 OWNERSHIP /SALES HISTORY/HISTORY OF THE SUBJECT . . . . . . . . . . . . . . . . . . . . . . . . 32 E ZONING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 REAL ESTATE TAX AND ASSESSMENT AND BURDEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 PROPOSED SUBJECT SITE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Appraisal Company of Key West Page I Packet Pg. 2508 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL TABLE OF CONTENTS (Continued) DESCRIPTION OF THE SUBJECT PROPERTY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 FLOODMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 BUILDING SKETCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 2 HIGHEST AND BEST USE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 SCOPEOF WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 v, COST APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 -- THE INCOME APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 THE SALES COMPARISON APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 RECONCILIATION AND CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 CERTIFICATE OF APPRAISAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 ADDENDA QUALIFICATIONS OF APPRAISER JAMES E. WILSON . . . . . . . . . . . . . . . . . . . . . . . . 72 PURCHASE ORDER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 cn cv CD cv Appraisal Company of Key West Page 2 Packet Pg. 2509 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUMMARY OF FACTS AND CONCLUSIONS Subject Property: George Dolezal Monroe County Branch Library 3251 Overseas Highway, Gulf Marathon, Monroe County, Florida 33050 Property Type: County Public Library/Possible Office Conversion Overall Land Size: Site Size and Description Parcel Parcel Alternate's Legal Street UplandSize LandSize' I.D. Account No. Key Address Description Frontage S Ft. Acres SjlitOuto 00102310-000000®1119512 ®3251 Overseas Hwy.,Marathon®®96632Key Vaccas®Pt Lot 1�;®_100.0_0_ 1__27,50_0_ 1 0.63_ Totals: 100.00 27,500 0.63 tJ U Zoning: P-Public Use, zoning district, City of Marathon, Florida Flood Zone: FEMA Map 12087C1378K February 18, 2005 Zone: AE(Elevations 7 and 8 Feet) Improvement Site: _2 i t S S t x �t t t(s �is (i i�i i I t � }t- t si t fs r tr rs r i 4 �� it r i�Y. { t _t t �i�s� �lo'�1 y�� t f�Sys b ( f r �t St � � t i iu ig i f l ��I �4 (%r Library/Officei 1-Story CBS 1i _7,0551i 1982 c44 Totals: �7,055� r� cv Highest and Best Use: As Improved for Library-Use As Proposed for Possible Purchase and Conversion into Medical E Office Use Date of Site Visit: August 25, 2017 and December 30, 2017 (Post Hurricane Irma) Appraisal Company of Key West Page 3 Packet Pg. 2510 O.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Valuation Date: December 30, 2017 Report Date: February 1, 2018 Value Indications: lIgI �i 1 t Sty' i t r t jt 7it,�i "As Is"Fee Simple Valuation Method: Market Value Cost Approach: Not-Applicable Income Approach: $1,380,000 Sales Comparison Approach: $1,330,000 0 "As Is" Market Value of the Fee Simple Interest as of December 30, 2017 (Rounded) $1,350,000 r9 Exposure Time: 6 to 18 Months based on a list price within 5 percent of appraised value and based on stable economic conditions. Extraordinary Assumptions: Please refer to the Assumptions and Limiting Conditions regarding the LN subject property from the overall parent, county-owned tract. _2 0 Hypothetical Assumptions: None 9 cv cv Appraisal Company of Key West Page 4 Packet Pg. 2511 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL APPRAISAL REPORT This is an appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a)of the Uniform Standards of Professional Appraisal Practice for an appraisal report. As such, it might not include full discussions of the data,reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning, and analyses is retained in the appraisers' file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for unauthorized use of this report. The reader is referred to the Scope of Work section of this report. CLIENT: Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL(Florida Keys) 0 102050 Overseas Highway Key Largo, FL 33037 OWNER OF Monroe County, Florida u RECORD: 500 Whitehead Street Key West, Florida 33040 APPRAISER: James E. Wilson, MRICS, President State-certified general real estate appraiser RZ 2164 � SUBJECT: George Dolezal Monroe County Branch Library 3251 Overseas Highway Gulf Marathon, Monroe County, Florida 33050 Appraisal Company of Key West Page 5 Packet Pg. 2512 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY t y k r' }7 r _ U M Street View Looking Easterly the Overseas Highway M . N r N u Street View Looking Westerly Along the Overseas Highway Appraisal Company of Key West Page 6 Packet Pg. 2513 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY OR, 4 >v r9 Front View of the Subject Property Looking SoutheasterlX y P�m rrx I 1� CV ,t. r R- N U Front View of the Subject Property Looking SoutheasterlX Appraisal Company of Key West Page 7 Packet Pg. 2514 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY k r9 Front View of the Subject Property Looking Southwesterly r N U Rear View of Subject Property Looking Northwesterly Appraisal Company of Key West Page 8 Packet Pg. 2515 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY View of Roof(Pre-Hurricane Irma) { M N h f E View of Roof(Pre-Hurricane Irma) Appraisal Company of Key West Page 9 Packet Pg. 2516 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY rAA � of '� ��• � S 1 , - �� s � U M View of the Lobby and Circulation Desk 76 c N N - (J View of the Reading LibLM Appraisal Company of Key West Page 10 Packet Pg. 2517 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY } tJ M View of the Library N � Y r h 1 CV View of the Library Appraisal Company of Key West Page 11 Packet Pg. 2518 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY t� 1� i 1 f s �3 0 Interior View of Employee Kitchen c� .. +, A cl 1s ttQt. _- cl E+ N 4 h Interior View of the Employee Restroom Appraisal Company of Key West Page 12 Packet Pg. 2519 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY ;)4�q: S5 S l }� tFf Jul i � SF'j"} � $�_ i4 �r14U�i s Z- G ;rs � ssS�}��I -•.'` �s Qu«1�lttlih�431 ,ti�ii��{�1 �r is� s 4 � �� l�i� .F+ �d9 View of the Public Restroom t C" N View of the Canopy and Covered Walkway Appraisal Company of Key West Page 13 Packet Pg. 2520 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SUBJECT PROPERTY t �ti ' #1 �I!CYYY� y ll I i T) � s ) U M Entrance of the Subject ProPe!U D 0 D N N Appraisal Company of Key West Page 14 Packet Pg. 2521 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a)of the Uniform Standards of Professional Appraisal Practice. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning,and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. This confidential report is prepared for the sole use and benefit of Monroe County Board of County Commissioners, is based, in part,upon documents,writings, and information owned and possessed by n the client, Monroe County. This report is provided for informational purposes only to third parties authorized to receive it. Appraisal Company of Key West assumes no responsibility if this report is used in any other manner. 0 THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS: This appraisal report has been prepared to comply with my understanding of the requirements of the M Uniform Standards of Professional Appraisal Practice. CD Market Value is defined as the most probable price in cash(or its equivalency)for which the appraised property will sell in a competitive market under all conditions requisite to a fair sale. Market value e( assumes a normal or reasonable time for exposure on the open market. The subject site is a proposed split-out of a large Monroe County owned 2.61 acre tract of uplands,plus 2.40 acres of environmental sensitive land. The site would be an interior rectangular parcel with 100 ru feet of frontage along the southerly side of the Overseas Highway extending southerly, approximately cu 275 feet in depth. Thus, according to the proposed split-out as determined by Monroe County staff,the subject property would consist of approximately 27,500 square feet of upland area. If the site area is significantly different, then the subject's value could be altered. A survey of the subject property was not available. Thus,the appraisers could not verify if there are any easements or encroachments. No responsibility is taken by this office for the accuracy or in regard to a any questions on the nature of encroachments, encumbrances, or dissimilarities in measurement. Any E maps or plats reproduced and included in this report are intended only for the purpose of showing spatial relationships. They are not measured surveys nor measured maps,and no responsibility for cartographic C or surveying errors is assumed. The appraiser reserves the right to change the final indicated value herein, if subsequent surveys are made available and any further encroachments and/or easements area noted. Appraisal Company of Key West Page 15 Packet Pg. 2522 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL This appraisal is to be used in whole and not in part, in particular,no part of the contents of this report shall be conveyed to the public through advertising,public relations,news,sales or other media,without the written consent and approval of the author,particularly as to valuation conclusions, the identity of the appraiser or firm with which he or she is connected. No responsibility is assumed by the Appraisers for matters which are of legal nature,nor is any opinion on the title rendered herewith. Good title is assumed as a title search was not made available. The property has been appraised as though free of liens and encumbrances, except as herein described. Delinquent charges for solid waste collection,stormwater,or central sewage system or other liens against the subject property have not been considered in the valuation contained herein as a title search was not CO made available or conducted by the appraiser. The management of the property is assumed to be competent and the ownership in responsible hands. 0 c, The management of the property is assumed to be competent and the ownership in responsible hands. The Appraiser herein is not requiredto give testimony in courtunless arrangements have been previously made thereof. 76 The Appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The Appraiser assumes no responsibility for such conditions, or for engineering which might be required to discover such factors. 0 Information, estimates and opinions furnished to the appraisers, and contained in the report, were ru obtained from sources considered reliable and believed to be true and correct. However, no respon- M sibility for accuracy of such items furnished to the Appraiser can be assumed by the Appraiser. The Americans with Disabilities Act("ADA")became effective January 26, 1992. The appraiser has not made a specific survey or analysis of this property to determine whether or not it is in conformity I CD with the various detailed requirements of the ADA. It is possible that a compliance survey of the N property,together with a detailed analysis of the requirements of the ADA,could reveal thatthe property a is not in compliance with one or more of the requirements of the Act. If so, this fact could have a E negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, a possible noncompliance with the requirements of the ADA in estimating the value of the C property has not been considered. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the Appraisal Company of Key West Page 16 Packet Pg. 2523 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL professional appraisal organizations with which the Appraiser is affiliated. The undersigned Appraiser has no present or contemplated future interest in the property and the compensation is in no manner contingent upon the value reported. Possession of this report does not carry with it the right of publication or advertisement of any of its 2 conclusions,nor may any except the applicant use the same for any purpose without the previous written consent of the appraisers or the applicant. This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which v, the Appraiser is affiliated. This appraisal report is in conformity with the Uniform Standards of Professional Appraisal Practices and this appraisal assignment was not based on a requested minimum valuation,a specific valuation,or 0 the approval of a loan. The discovery of latent conditions is beyond the scope of this appraisal. Detection of latent conditions requires the expertise of qualified persons such as architects and engineers. Latent conditions include, among other things, non-apparent structural conditions; presence of prohibited hazardous wastes; presence of radon gas, methane gas, asbestos, lead, petroleum products and other air, soil, or water contaminants; and many other conditions too numerous to mention which may affect the value of the property being appraised. An environmental site assessment report for subject property was not provided. The appraiser is not an expert in the field of environmental hazards. The appraiser has assumed that subj ectproperty is environmentally"clean".As aresult,if environmentally cleanup and/or remediation is required then the subject's market value could be adversely affected. ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraiser conducting this appraisal, nor the APPRAISAL COMPANY OF KEY WEST makes any warranty,express or implied,to property covered by this appraisal, and neither shall have any liability to any person for differences in the value N of the appraised property, or other damages, resulting from discovery of latent conditions (including I those mentioned above and others) on, or in proximity to, the appraised lands. I hereby certify that to the best of my knowledge and belief the statements of fact contained in this report upon which the analyses,opinions and conclusions expressed herein are based,are true and correct;also this report sets forth all the limiting conditions affecting the analyses, opinions and conclusions C contained in this report; also this report has been made in conformity with the Appraisal Institute. Appraisal Company of Key West Page 17 Packet Pg. 2524 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL STATE MAP . ca c c� r9 cv r. CD cv u Appraisal Company of Key West Page 18 Packet Pg. 2525 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL FLORIDA KEYS MAP FLORIDA � Key largo MM 99-106 Tavernier MM 91-92 Plantation Key MM 86-90 ¢ [}-Windley Key MM84 Islamorada Upper Matecumbe Key MM80 ft E o Lower Matecumbe Key MM74 V & Fiesta Key MM70 on W S �' 91=,tKy MM66-69 };GGan h Keys MM61 lllc�C. Key w ' Grassy Key MM57-60 (J Crawl Key t8 arathon Shores Key Colony Beach MM54 to Vaca Key Marathon MM50 Ml eon Key MM45 Fs U) 7 e Bridge H Oo3° Sun Line Key MM 40 Epp� Ba a Honda NM 37-38 B Pine h Q • Mid e Toro c 838 amrod MM 2b-F7 ,Summer}l{�a�nd MM 2 4-25 Sugaxlt of Key2MM2 2-23 Lower Sugarloaf Key MM 17 4- Sadfllebunch Keys MM 13-16 _ a; ig Cogpitt MM 10 U7 Boca Chica MM 7-8 Stock Island MM 5 • Key West MM 0-4 CD N CD h r N U Ml Appraisal Company of Key West Page 19 Packet Pg. 2526 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL LOCATION MAP � c M N N u Appraisal Company of Key West Page 20 Packet Pg. 2527 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL AERIAL PLAT MAP OF PARENT TRACT ,�,, ftblic.n ' Monroe County, FL Overview s Legend Major Roads Centerline Hooks 0 r Road Center Rights of Way Cando Building � Conservation t8 - r Easement Key Names CD Subdivisions u - Parcels r � cu Parcel ID 00102310-000000 Alternate ID 1119512 Owner Address MONROECOUNTYFLA Sec/Twp/Rng 09/66/32 Class COUNTY 500WHITEHEADST Property Address 3103 OVERSEAS HWY KEYWEST,FL33040 U7 MARATHON District n/a Brief Tax Description 9 66 32 KEY VACCAS PT LOT l OR15-374/76 OR284-18/20 (Note:Not to be used on Iega I documents) CD Data created:8/16/2017 Last Data Uploaded:8/16✓2D172:31:09AM N Sch� Developed by P' The Sdmeider Corporation N Appraisal Company of Key West Page 21 Packet Pg. 2528 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL VIEW OF AERIAL MAP (SPLIT-OUT OF SUBJECT PROPERTY) r �s kit Al" 1} �- 1. { �t Ih1 3� _ t lYvafi rat J�S x J NINE 11 tt7 M N r h r N u Appraisal Company of Key West Page 22 Packet Pg. 2529 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL PURPOSE AND INTENDED USE OF THE APPRAISAL The purpose of this appraisal is to estimate of the "As Is"Market Value of the Fee Simple Estate of the a subj ectproperty commonly known as 3251 Overseas Highway,Gulf,Marathon,Florida,as of December 30, 2017. The intended use of this appraisal is for possible split-out and sale by Monroe County Board of County 2 Commissioners to the adjacent Fisherman's Hospital. The intended user of the appraisal report is Monroe County Board of County Commissioners. This appraisal is for exclusive use by Monroe County Board of County Commissioners. Parties that may T receive a copy of the apprisal or review report do not become intended users unless specified by the client at the time of engagement. 0 MARKET VALUE DEFINITION Market Value: as defined by the Office of the Comptroller of the Currency (OCC) is: "The most probable price which a property should bring in a competitive and open market under all 9 conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is consummation of a LN sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 0 1) buyer and seller are typically motivated; ru 9 2) both parties are well informed or well advised and each acting in what he considers his own best interest; 3) a reasonable time is allowed for exposure in the open market; N 4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements a thereto; and 5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Appraisal Company of Key West Page 23 Packet Pg. 2530 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL PROPERTY RIGHTS APPRAISED & DEFINITIONS a This appraisal is made with the understanding that the present ownership of the property includes all the rights that may lawfully be held under a Fee Simple Estate. These rights are sometimes referred to in appraisal literature as the "bundle of rights." It includes the right to use, keep others from using, sell, rent or otherwise dispose of the property. The elements which have been included in this appraisal are the land and any existing improvements. Fee Simple Estate Definition: According to The Dictionary of Real Estate Appraisal, Sixth Edition, T "Fee Simple Estate is absolute ownership unencumbered by any other interest or estate, subject only to ca the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." 0 U This report contains the results of my investigation and analysis made in order to furnish an estimate of the Market Value of the Fee Simple Estate of the subject property. The subject property consists of an U owner operated property which is not encumbered by any long term leases. Therefore, only the Fee Simple Interest is included herein. However, the reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. LEGAL DESCRIPTION: At the time of the appraisal, a legal description for the proposed split-out of the subject property from the overall large, County-owned parent tract was not available. 0 D cv cv U Appraisal Company of Key West Page 24 Packet Pg. 2531 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL MARKET AREA (NEIGHBORHOOD)ANALYSIS The subject property is located in the incorporated area commonly known as the City of Marathon, Florida. Marathon was incorporated on November 30, 1999. It is located approximately at mile marker 49 approximately 44 miles northeasterly from Key West, stretching across twenty-seven bridges. The property is located in a mixed commercial/residential waterfront area in the heart of downtown Marathon's commercial area providing all of the services necessary within an urban area. Being a main population area of the Middle Keys, Marathon offers much in terms of commerce,residential housing :2 and service as well as industrial areas. This is an area of mixed zoning and uses which services the demands and requirements of the Middle Keys market. The subject property is located on the southerly side of the Overseas Highway also known as U.S. M Highway No.1. The commercial uses along U. S. Highway No. 1 include hotels, motels, restaurants, professional offices,hospital(adjacent easterly from the subj ect)�retail shops and strip shopping centers, � tourist-related businesses, service establishments,recreational and commercial marinas,marine related 0 uses, and mobile home parks. The surrounding uses on Coco Plum Drive consist mostly of marinas, restaurants, and marine related businesses. The property is located about two miles westerly from the Marathon Airport. The Marathon Airport is used for privately owned airplanes, as well as for light commercial traffic which services the population v area. The airport was upgraded with a new terminal. Although the main commercial carrier at the Marathon Airport has ceased service,negotiations are on-going. Rent concessions and other perks will have to be made in order to secure the new carrier. Marathon also offers the only substantially sized L shopping district for the Middle Keys community, having two large commercial shopping centers, as 2 well as many smaller strip shopping centers,utility company offices, Monroe County offices, schools, etc. Throughout the Florida Keys, only Key West and Key Largo provide a similar variety of services. The subject property is located within the hub, Central Business District, of Marathon. Marathon has developed steadily over the past ten years;this development accelerated as a result of the conversion of the Overseas Highway from a two-lane to a four-lane highway in the late 1980's and early 1990's through Marathon. N Appraisal Company of Key West Page 25 Packet Pg. 2532 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Marathon has recently opened two major motel/hotels with marinas, as well as the redevelopment of older mom and pop motels. The most recent hotel is the Courtyard Marriott which purchased an adjacent mom and pop motel which also includes a marina. Approximately one year ago the luxury Hyatt Hotel and Faro Blanco Marina were opened. Hence, it is anticipated that within the next two years there will be additional rooms added to the present inventory. SUply and Demand :2 The supply of commercial space is limited and new commercial construction has been restricted since 1996 due to a commercial building moratorium that had been in effect until the commercial rate of growth ordinance (NROGO) was implemented. Therefore, the current and ongoing regulations are expected to place upward pressure on price levels of existing units. Even to a greater extent because of M the difficulty and high cost in obtaining building permits for new construction, both residential and commercial. 0 Commercial real estate experienced a decline of 30% to 60% since the economic downturn in 2007- > 2008. Although it appears that generally the market reached the bottom at the end of 2011 and stabilized in 2012. However, there have been more transactions since 2012, lessening the supply and indicating a strengthening market. However, some sectors of the market have not completely recovered from the S peak in 2005. v D IMPLEMENTATION OF COMMERCIAL R.O.G.O. Sales of vacant, commercially zoned parcels within the Florida Keys have dwindled over the past few 2 J years due to a commercial building moratorium which existed until 2002,when the non-residential rate - of growth ordinance NROGO went into effect. This system is similar to the residential R.O.G.O.system ru in that it awards building permits based on a point system. The Non-Residential Rate of Growth Ordinance (N.R.O.G.O.) was enacted with an effective date of January 1, 2002. Under the new and current regulations the maximum allowable square footage for new commercial development is 2,500 square feet per parcel. The ordinance does provide for Administrative Relief in the event that the applicant is not successful in obtaining an allocation award, a permit, within at least three of four consecutive annual allocation periods. The remedies for relief are to grant the applicant an allocation award, offer to purchase the property, or suggest such other relief as may be necessary and appropriate. E Saply and Demand Analysis for the Subject Property: The subject property is a large library building servicing Marathon. The subject is adjacent to Fishermen's Community Hospital and is proximate to the city center and shopping areas. The potential for new competing facilities is remote. The subject could be easily converted to professional office or Appraisal Company of Key West Page 26 Packet Pg. 2533 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL medical office. However, medical office use would require more of a substantial build-out. General Economic Conditions: The Florida Keys have flourished over the past two decades with tourism developing as the County's primary economic base. The County has had tremendous success with its advertising efforts and attraction of tourists of all Nationalities. Hotels and motel facilities in Monroe County have flourished over the past decade. However, we experienced a decrease in tourism as a result of the very active hurricane seasons of 2004 and 2005, followed by the national decline in the real estate housing market and the economic recession and credit crisis. However, the tourism and the real estate market have rebounded, especially the hospitality industry. Furthermore,the traffic count has increased every year since 2011 to the present. Conclusion: In summary, the subject property is located in the Middle Keys where there is a concentration of services, employment and shopping. Only Key West and Key Largo offer similar services, each is 0 located 40 to 60 miles away. Residential uses are located off the highway;these neighborhoods,as well as neighboring communities support the commercial businesses in the area. In 1994-1995, Monroe County moved some of its divisions to anew facility in Marathon;therefore,increasing the employment population which requires goods and services. Marathon's central location is appealing,especially with e the increasing availability of services. The neighborhood may be undergoing an increase in desirability v in the future due to improvements with respect to goods and services and its accessibility to the mainland. Two such developments, representative of Marathon's central region location, include the opening of Home Depot, Office Depot and two Walgreens Drug stores. Most recently the Winn Dixie L is remodeling and expanding their store. _2 0 The surrounding structures are generally well maintained in average to above average condition. The ru considerable amount of automobile traffic along U.S. Highway No. 1, a.k.a. the Overseas Highway, provides good exposure to this area. I anticipate continued improvement in the general quality of the neighborhood, particularly with the increased demand for this type of property due to building and environmental restrictions placed on all properties in the Florida Keys. The following average daily two-way traffic data for U.S. Highway No. 1 was provided by the State of Florida Department of Transportation: E Average Daft/Traffic Count Both Directions) D.O.T. Station Location 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 66 i SR 5/US 1,10Y N 7 Mile Bridal 1 13,3001 13,3001 11,2001 14,8001 12,6001 13,4001 12,3001 15,1001 16,7001 17,9001 15,500 ----------------------- ---------------- --- -----I 65® SR S/US 1,3250 N Channel 5 Bridge ®1 12,3001 12,3001 10,2001 9,9001 12,0001 12,0001 12,2001 10,4001 11,2001 11,6001 13,300 45 SR 5/US 1,2W N Key vaca Bridge i 24,000;29,000;25,(Mi 30,0001i 20,0001i 24,0001i 25,0001i29,500;'29,5001i27,000';27,000 Appraisal Company of Kev West Page 27 Packet Pg. 2534 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Survey of Market Participants The appraiser interviewed or obtained information from the following market participants including Claude J. Gardner Jr., (Berkshire and Hathaway Realty), Curtis A. Skomp, CCIM, (RE/Max), Brian Schmitt,Coldwell Bankers Schmitt Real Estate,and George Garrett,Marathon Planning Director. Other 2 commercial Realtors, real estate investors, tenants and landlords, were also contacted in my research. 2 In analyzing the active listings of commercial and mixed use properties, it appears that they have been on the market from about two months to 16 months with continued reduction in listing prices. The mid point of the listings is about nine months. Well priced properties have sold.The closed comparable sales analyzed for this appraisal indicated days on market from zero to 256 days.With a mean at 117 days and M a medium at 113 days. A number of active listings for commercial and mixed-use properties are noted as follows. Active listi n2s of Commercial&Nixed-Use Properties N" list Sq.Ft/ land SSF 5/SF Days M Number RnpetiyMike- KeyMand Nice CRA sq t (EX land On Ma ket Status Conmients RetaiUServicevvith Ul Cottage and separate 572989 1122350verseas Hvy. 1 Marathon $1,100,0001 4,1901 40,60N $262.531 0.091 4041 Active 1 i 30,492 SF Parcel ------------------------------i--- ----i -----i------ -----h-----t--------------------- icantConneiotalFomterRestaurantvvrth 576372 i810310verseasH y. i Islamrada $1,400,000i 8,286! 60,5480 $168.96! $23.12i 171i Active i ----------------------------- --- ----!----- ---- ---- -----1Apartrt�ntsReadyforRedevelopment--- i i FomrrBankBranch ffid with Eti,e-Tluu, i i i i i i i i i g 577448 i901840cerseas H«ry. i lslatmrada $1,495,500� 6,017i 31,SOOl $2A8.55i $4748i 57i Active i i Tvvo-Story CBS --- —_ 572069 K6810cerseasH y. Islamrada $1,500,000: 8,7501 15,0i 70: $171.431 $99.541 463: Active �� CBS'MultiUnrt,Fomer�ulc Story 1 Branch with Drive-Ihru -------------------------------!--- ----?------------3------1-----1 i 576491 i 14125th Street ChY i Marathon $2,200,0001ii 6,128!i 68,290(i $359.01ii $3222i 160! Active j Evo-Story CBS,Multi-Unit,Fomter Church ---------------------------------:-------------------------- i 2--Story CBS over Pahang 6Offrces plus 6 573949 191421 Overseas Hwy. 1 Tavernier $2,800,000!. 7,4521 15,6751 $375.74! $178.63! 3311 Ftipired Uq i ' iResid Apts.,Mixed-Ue Nkan $264.37 $68.01 264 Nkdan $25554 $39.85 251 Mininami $168L% $23.12 57 Nlaxirrarm $375.74 $178.63 40 M M N r Advantages and Disadvantages of Subject Property N Stren hs • Neighborhood is at least 85% developed with very limited potential for new construction of competing large office or medical space, especially adjacent to Fisherman's Hospital. • Great Access to Marathon Airport • Ample On-Site Parking Appraisal Company of Key West Page 28 Packet Pg. 2535 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL • The Marathon market has appreciating land values, which is a significant barrier to entry • Great Access and Exposure from the Overseas Highway Weakness: • Finding reliable workforce and even management is difficult in the Florida Keys due to the extremely high cost of living and lack of affordable housing. Hurricane Irma made landfall in the Florida Keys September 10, 2017. The subject property did not appear to suffer some storm damage. However, many properties within the Florida Keys sustained damage. Several high end transient operations in the Upper Keys have numerous rooms off-line. In T) addition, it was reported in the Miami Herald that a well known resort, known as Hawks Cay, located M in Duck Key (approximately mile marker 60) has recently laid off approximately 250 employees and hopes to re-open by mid-summer 2018. The clean-up process has been non-stop and effective. However, at this time, the true extent of the impact is unable to measure. 0 9 0 9 cv cv Appraisal Company of Key West Page 29 Packet Pg. 2536 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL DEMOGRAPHICS In terms of demographic trends taking place in Marathon,Florida,the following data has been compiled by from the CCIM Site To Do Business within a 10-mile radius of the subject property: wesr[ 23 Catrr plum Dr,A'lasa[hor5,Florida,33050 Prepared by t.`Mi'I 2 RInp Dond:0.,10 mile radius 5tammaay. 4e€rsus 2016 2017 2022 popu'alion 9,)18 to,2.at 80,s.,18 H9uscho%ds 4,412 4,581 4,747 ¢, Fa rn i€ies 2,615 2,692 2,780 fn Me.rage Household Ssm 2.15 2.16 2.17 ¢' Owne Occualed Housing Wilts 2,s55 2,464 2, 37 Renter Occu pied Housing Units. 1,657 2,.117 2,210 00 Median Age 49.3 51..8 515 Trends,2017:.2022Annual state Area state National Pcip-Wa"on 0..75% 1..36% 0,83% 51 House111J1d,,5 0,71 Jo 1°3e% 0.7S% ra rm lhi,s 0-65% 'i.'esho 0,71,a✓o Orwner HH" 13 59% 1119% 0..72% Med,w,Household lntonre 2.Ci 2...13% 2,12m 2017 2022 Households by Income: p$umltmr. 6'encsrit Number Percent <$1%cou "2 i1,S% A6 11,5% g15,C100-$24,999 592 12.9% 559 11.8% 525,080-$34,999 495 10.8% 458 9,6% 535,000-s49.999. s39 1.1.836 453 9..5% 55©,4iCri7-;s74,999 944 20.6 8S6 M7% i75,000-$99,999 433. 9.5% 484 10.2% 5 I Q'i000`5149,9139 SW I1..sto 624 13,I% W sISQ,000{ .5199,'Y9 206 4,5.% ,7 3 6.1:% $200,000+ 320 7.01. 449 9 5% MF?rftwn Ho-,hold lotorne 1,52,174 J-Ss'Ws .Average Househa£v Income. 179,216 195,078 Per Capita Income 136,150 343,226 Census 2010 7,017 2022 Population by Age Number Percent Number Percent Number percent 0°4 417 4.3% 382 3.8% 3i35 3J% 5..9 3A3 3.9% 430 4.2% 424 4..0% 10-14 416. 4.3% 417 4.1% 464 4.4% 15-19 389 4.0% 335 3.8% 421 4,0% 20•74 414 4.3% 346 3.5°+0 354 1.4% � 25-34 990 10.2% 1,.038 10.2% 961 9A% 35-44 1,174 12.1% 1.,.078 10.6% 1,170 11.1% L. 45,.54 1,619 16. % 1.,441 14.2% 1,296 12,2% 55-64 1,900 19.6% 1.,919 18.9% 1 564 17.7% 65-74 1,23.:7 12.7% 1,.684 16.6% 1,9'.54 18.6% 75-84 605 6.3% 7!51. 7.4% "0 1.3% 85+ 1.68 1.7'% 221 2.2% 256 2,4% census 2010 2017 2022. CV Ram and Et33nie@ty Number percent Number Percent Number Percent WhIte Alone fi,812 917.7% 8,931 84.2r. 9,200 87.5% Black Alone 491 5.1% 618 6.1% 721 6,9% American Indian Alone 30 0.3% 31. 0.3% 3.2 03% CV Asion Alone 93 I'S1% 119 1.2% UP 1.3% Pa€9k:Islander Atone 2 0.0% 2 0.0% 3... 0.0% S.-Other Race A.iom. 13.,1 1.3% 166 Y 6% 136 1,3% � Two oa More Races i 60 1.,6% 201 2.0% 2:36 21 r'a U Hispanic Origin(Any llare) 2,304 23.7% 2,.753 27.2% 3,135 293% (� 09 tii Ni slib il S,.W l�w ,iiWIM e, &-rce;4 Le%¢sus.Hu-nu,Ce.n.aa. 0 U.,ss.,-He 1.. Esri foii Eo:T'2G17 and 2012. 3.1y 63,201.7 Appraisal Company of Key West Page 30 Packet Pg. 2537 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Gesri, 21 Coco Plum or,Marathon,Florida,33050 Prepared by Esri Ring Band:0-10 mile radius t8 Trends 2017-2022 2- c: � 1.6- a 1.4- 1.2- - Y u � t m 0.6 Area �... 0.4- State Q 0.2- ;�d USA 0 `�, rY Population Households Families Owner HHs Median HH Income 0 Population by Age is .� 16 ` C? 14 12 ci 10 a 8 6 4 1 i,� ri I;,l IYY 2017 tff t 1 i i, ( Irk fi Yc= 1 2022 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ 2017 Household Income 2017 Population by Race J $21as�o4K $1sK-$24K 80 L,9 $0 70sK-g49K r ,. f!9 <$15K 60 - _ 11 8% L. JY C 50 U a 40 -F $2n0K+ 30 7.0 4 N $SOK-$74K C.. 20 20e916 $150K-$199K � 4si h 10 r $100K-$149K - $75K-$99K 1,1-'o 0 -' (V 9.5% White Black Am.Ind. Asian Pacific Other Two+ 2017 Percent Hispanic Origin:27.2% U Source:U.S.Census Bureau,Census 2010 Summary File 1. Esn forecasts for 2017 and 2022. July 03,2017 Appraisal Company of Key West Page 31 Packet Pg. 2538 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL EXPOSURE TIME Exposure time considers the amount of time necessary to affect a sale of the subject property on the valuation date. In the case at hand, it is my opinion that the exposure time would be between 6 and 18 months, based on a listing price within 5.0% of my appraised value. This exposure time appears reasonable based on analysis of the active listings and closed sales utilized herein. OWNERSHIP According to the Monroe County Property Appraiser's Records, the subject property is owned by: Monroe County FLA 500 Whitehead Street Key West, FL 33040 0 SALES HISTORY OF SUBJECT PROPERTY AND CURRENT CONTRACTS According to the Monroe County Property Appraiser's records,the subject property's has not sold within the past five years. The subject property has not been under contract for sale and purchase nor listed for sale over the past five years. �t ZONING According to the City of Marathon Land Use Code,the Subject is zoned P,Public Zoning District. They "P" District is intended to establish areas appropriate for public service facilities, government facilities and institutions, designated with the Public Facilities (PF)future land use category on the Future Land Use Map (FLUM). Density: 10-25 Units per Acre (Affordable) Range 3-25 Units per Acre (Transient) E Min Lot Area: 1,742 (Affordable) e( FAR: 0.15 to 0.75:1.00 Appraisal Company of Key West Page 32 Packet Pg. 2539 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Setbacks: Front: 15 Feet Rear: 10 Feet Interior Side: 5 Feet Street Side: 5 Feet Height Limit: 37 Feet Open Space Ratio: 0.20:1.00 c c cv cv Appraisal Company of Key West Page 33 Packet Pg. 2540 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL ZONING MAP qt'i LUraz 7owi cr.� ( ?r r _Est �I ', ••.. hy r 6 r -o "Wo. �tEp� N 0 — t - wry°i�t�ti CfJ City at Marathon,Florida m )fficial Zoning Map Series s" - — PANEL 1 0 D N N My u Appraisal Company of Key West Page 34 Packet Pg. 2541 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL REAL ESTATE TAX ASSESSMENT & TAX BURDEN As noted earlier, the subject property could be separated from the larger County tract and sold to an adjacent owner. The overall assessment for the parent tract is $4,652,086. Since the tract is owned by Monroe County, the real estate taxes are not levied. T'rt' 2017 Paid Real Estate MONRIOSCO ED.NEANRDLLEGFZ9 C.EC. NOTICE OF AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS PROPERTY ID4 ESCROW GO MILLAGE a 1119512 50CM r 1119512 MONROE COUNTY FLA 00102310000000096632 0 2 500WAITEHEADST 3251 OVERSEAS HWY KEYWEST,FL 3 304 0-6 581 9 66 32 KEY VACCAS PT LOT 1 OR15-374f76 OR284-10/20 1 SCHOOL STATE LAW 1.6080 4,652,086 r4,652,016 0 0.00 SCHOOL LOCAL BOARD 1.7480 4,652,086 4,652,086 0 0.00 GENERAL REVENUE FUND 0.6949 4,652,086 4,652,086 0 0.00 F&F LAW ENFORCE JAIL JUDICIAL 1.9539 4,652,086 4,652,086 0 0.00 HEALTH CLINIC 0.0469 4,652,086 4,652,086 0 0.00 FLORIDA KEYS MOSQUITO CONTROL 0.4646 4,652,086 4,652,086 0 0.00 y CITY OF MARATHON 2.5900 4,652,086 4,652,086 0 0.00 (, SO FL WATER MANAGEMENT DIST 0A275 4,652,086 4,652,086 0 0.00 (B OKEECHOBEE BASIN 0A384 4,652,086 4,652,086 0 0.00 $ EVERGLADES CONSTRUCTION PRJT 0.0441 4,652,086 4,652,086 0 0.00 9 F O AZZ 9 C s a00 �3 a O TOTAL MILLAGE 9.4163 AD VALOREM TAXES $0.00 N LEVYING AUTHORITY RATE AMOUNT 0 Opc NOWAD VALOREM ASSESSMENTS $0.00 COMBINEDTAXE$AND ASSE55MENI5 $0.00 See never Adefor �+ impoMn Irf�f�Ra40n. If Postmarked By Nov 30,2017 _ Please Pay $0.00 IF PAID BY _ DANISE D.HENRIQUEZ C.F.C. 2017 Paid Real Estate vt MONROE COUNTY TAX COLLECTOI{ NOTICE OF AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS N 1119512 r 500M • 1119512 �1 T_ 00102310000000096632 CD MONROE COUNTY FLA 3251 OVERSEAS HWY f 600 V HITEHEAD ST .. KEY WEST,FL 33040-6501 9 66 32 KEY VACCAS PT LOT 1 OR15-374/76 .1r € OR284-18/20 c CHECKS ON U.S.BANKS ONLY TO DANISE D.HENNOUEZ,CF.C.TAX COLLECTOR•P.O.BOX 1128,IQ=Y WEST,FL 8 9 0 91-112 9 If Postmarked By Nov 30,2017 Please Pay $0.00 Appraisal Company of Key West Page 35 Packet Pg. 2542 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL PROPOSED SUBJECT SITE lc C? "yc l' 1 ff7 M N r h r N U Appraisal Company of Key West Page 36 Packet Pg. 2543 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL DESCRIPTION OF THE SUBJECT PROPERTY Site Anal: The subject property is located on the Overseas Highway,the City of Marathon at approximately mile market 49. The subject site is a proposed split-out of a large Monroe County owned 2.61 acre tract of uplands,plus 2.40 acres of environmental sensitive land. The site would bean interior rectangular parcel with 100 feet of frontage along the southerly side of the Overseas Highway extending southerly, approximately 275 feet in depth. Thus, according to the proposed split-out the subject property would consist of approximately 27,500 square feet of upland area. Site Size and Description Parcel Parcel Alternate Legal Street UldandSize LandSize' LD. Account No. 51 Ke Address Descri ion Fronta'e S' Ft. Acres S it-Out o£li 00102310-000000 1119512 - 3251 Ov ers eas Hwy,Marathon 9 66 32 KeyVaccas Pt.Lot 1 100.00 27,500 0.63 � Totals: 100.00 27,500 0.63 tJ U Easements/Encroachments: A survey of the subject property was not available, thus the appraiser could not verify the existence or not of any easements or encroachments. No responsibility is taken by this office for the accuracy or in regard to any questions on the nature of encroachments, encumbrances, v or dissimilarities in measurement. Any maps or plats reproduced and included in this report are intended only for the purpose of showing spatial relationships. They are not measured surveys nor measured maps,and no responsibility for cartographic or surveying errors is assumed. Ireserve the right to change the final indicated value herein, if a recent survey is are made available and any further encroachments and/or easements area noted. Topograph. Although no soil engineering report was made available to us,it appears that the site and most of the properties in the immediate neighborhood show no signs of any subsurface instability. The subject site is level and slightly above the street grade,with adequate drainage sloping toward the street. Utilities: Municipal services available and currently serving the property include electricity,water and central sewer system. Additional utility services including: telephone, cable television and LP bottled gas are available with the private sector. All utilities appeared to be adequate and typical for the area and use. The electrical and plumbing systems in the buildings appeared to be in average condition. Census Tract: According to Mr.Jim Anderson of the Tallahassee,Florida Division of the United States Census Bureau,Monroe County is not divided into Census Tracts;but rather`Block Numbering Areas". According to 2010 Census Maps, the subject property is located within Block Number 9713. Appraisal Company of Key West Page 37 Packet Pg. 2544 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Flood Zone The subject site is located in a Special Flood Hazard Area,specifically Zone AE,Elevations 7 and 8 feet, according to the Federal Emergency Management Agency Flood Insurance Rate Maps of Monroe County,Florida,Map Number 12087C 1378 K,dated February 18,2005.The subject library was built after the inception of FEMA regulations and is elevated on small stilts or concrete piers. It is unknown if the subject structure meets the current FEMA elevation regulations ornotwithoutthe benefit of a recent elevation certificate. If the subject structure does not meet current FEMA elevation � requirements, and was destroyed more than 49.9 percent of it's improvement value, then it would be :2 required to meet FEMA regulations in effect at the time of reconstruction. Monroe County does participate in a National Flood Insurance Program and is covered by a regular program. The reader is cautioned that the subject's flood zone should be verified by a vendor's report as required by Federal regulations. FLOOD MAP 0 na o nsurance ragram ar F-PQ. 3 26. � MAP SCALE 1" _ 500' f 0 0 Soo 1000 FEET W r Z(}PJE-EVE -c Q (EL 13� :ZONE AE GI F �� �r�;l I PANEL 137eK U/ !, '(EL ut 1 AA0300 FIRM x xAA0309 i FLOOD INSURANCE RATE MAP .4A9887 rffiy A10NROEE COUNTY, � WG,a8B8x AAC394 r FLORIDA 0 AND INCORPORATED AREAS EJ,AE PANEL 137R OF 1585 a k i ! 1 iEL 71 r MAP NUMBER N y 42087CC370R MAP REMISED y - t Z4NE A€ FEBRUARY lk 2005 ! E ! t - '0°'" I'd—E lime s u v Maaa Yt3NE VE II 'L j�L NI 1 � t. k` aA Appraisal Company of Key West Page 38 Packet Pg. 2545 O.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Improvement Anal The subject site is improved with an elevated CBS/Masonry library building containing a gross building area of 7,055 square feet. In addition, there is a large covered canopy, a covered walkway, covered porches,plus an open loading ramp totaling 2,376 square foot. The subject has historically been utilized as a Monroe County Branch library, which was built in circa 1982. The entire property is owner-occupied. I personally inspected the subject building and site improvements. The building dimensions were referenced from the survey and verified by my on site measurements. The following descriptions of the improvements were based upon a physical inspection of the interior and exterior of the buildings and site improvements, and the Monroe County Property Appraiser's records. A construction summary of the building improvements follows: )t� r t ri r�i{ Iltt t>.r tr( 1+ +4 � i4 it +$ � 1tt t �l 1 (, i � l�£t t(tt t ! ...✓ 1 t f i yi 4 rt til i i tt t IS ? \ it tt+ t �ijt S-. � tt A i lit trjtt tt i t s t r )-s t + t t t tt it: 4 I S :1t 4 Ctrs � t rt f-t4 i £ is t /t1t S- it' << ks 1 0 £ t { It t It): ( lifil hf tst S£ t t\f i ti ttti fs f. i i4 £ ij�fi i £: S{s r, a I t t t 7 �i � /f i7 1 s{ 1Ilr't�lsrs i; t tt _ i(t s£ht 1 £ i £tr � £ it t r' 1( ;tti ti trt 3! } � i41 tt i ii s 4 -s4 k 1 _ Library/Office 1-Story CBS 7 055 1982 Totals:____________________—________ ____—L TOSS c� Foundation&Floors: The library structure is built on raised concrete piers with a CBS/Masonry < perimeter wall foundation. The floor structure is an elevated concrete L slab. The floors were finished with rubber (Johnsonite non-skid) and _2 J carpet throughout. The restrooms are finished with ceramic the floors. - Exterior Walls: The exterior walls of the subject painted Stucco over CBS/Masonry exterior walls. The exterior doors are glass and solid metal, while the windows are fixed glass. Roof: The office has a gabled and flat roof structure. The flat roof is covered by a single-ply membrane,while the gabled roof is covered by a clay barrel tile. The roof is assumed to be in average condition prior to Hurricane Irma. According to Mr. Rick Velzy, there was some roof damage and leaks due to Hurricane Irma. Electrical Service: The electrical services to the buildings appeared adequate for the use of the property. Appraisal Company of Key West Page 39 Packet Pg. 2546 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Air Conditioning: The subject structure has three roof-top central air conditioner/heat systems. Plumbing: The subject building has a two-fixture employee restroom,plus a men's and women's two fixture public restroom. Furnishings & Equipment: The valuation of the subject property does not consider any personal property or library fixtures. Construction Quality: Above Average Improvement Condition: Average to Above Average Building Ages: a , ,, c E�cc e $ Eoc kfw­ him �l� fit�t��t:f�i�ti{y r�'i II ili4F Pjl I� i I i III !I i ICJ Dili � }R � ��/4 i�rt �d9 1 s tt 4 r t +r 1 1 1982 35 30 50 20 Environmental Issues: In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenance of the building or the L overall property,such as the presence of radon,asbestos insulation and/or existence of toxic waste, which may or may not be present on the property,has not been considered.The appraiser is not qualified to detect such substances. The appraiser is not an expert in the field of environ- mental hazards. An expert in the field is recommended if desired, as no environmental tests were made by the appraiser. ADA Compliance: The Americans with Disabilities Act("ADA")became effective January 26, 1992. The Appraiser has not made a specific survey or analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. The Appraiser recommends that a Contractor or Engineer be hired to determine compliance or noncompliance,if so desired. The Appraiser is not a contractor and is not qualified to make a determination if the building adheres to the require- ments.The property,together with a detailed analysis of the requirements Appraisal Company of Key West Page 40 Packet Pg. 2547 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL of the ADA, could reveal that the property may or may not be in compliance with one or more of the requirements of the Act. If so, this fact could have an effect upon the value of the property. Cost to Cure: The subject building suffered some damage due to Hurricane Irma in the form of electrical services, exterior air condition panels, clay barrel roof tiles, interior roof leaks, plus there was some existing evidence of spalling. A preliminary estimate was approximately $50,000; however, contractor and repair bids were not available. The estimated Cost to Cure of$50,000 was deducted from the valuation methods, in order to arrive at the "As Is" Value. 0 0 N N Appraisal Company of Key West Page 41 Packet Pg. 2548 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL BUILDING SKETCH Marathon Library 3251 Overseas Highway Marathon, Florida 33050 Public - Children's Restrooms Parkin > Section Conference V Room `✓ 13.3 25,9' 12.N' N Employee - y Resteoisrn Office ? a Covered o Canopy .. Czvered WaPkway ...m m N Y office Area Entry "' .... .... ..._. (.� ]3.3' n9 178.__' _ Stairs Non Fiction Computers Fiction v Section ea Parking uCD Parking LN Scale: 1-30 AREA CALCULATIONS SUMMARY BUILpeNG AREA BREAKDOWN ff7 Code r t)escdptloo Not Size Not Totals Breakdown Subtotals � GBAI First Floor 7054.79 7054.79 First Floor P/P Porch 335.16 94,80 x 25-20 2388.96 Boren 408.31 18.60 x 84.50 1571.70 Covered Entry 438.96 0,90 x 108.10 97,29 Canopy 518.00 108.10 x 0.80 86.48 CD Covered walkway E76,00 2376,43 30,70 x 94,80 2910,36 cy N CD N U Net BUILDING Area (mounded) 7055 5 Items (rounded) 7055 Appraisal Company of Key West Page 42 Packet Pg. 2549 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL HIGHEST AND BEST USE: In appraisal practice, the concept of Highest and Best Use represents the premise upon which value is based. The four criteria the highest and best use must meet are: Legally permissible; Physically possible; Financially feasible; and Maximum profitability Highest and Best Use analysis involves assessing the subject both "as if vacant" and "as improved." "As If Vacant" • 0 Physically Possible Use- The subject site consists of an interior commercial lot in the City of Marathon in the Florida Keys. The site has 100 feet of frontage along the southerly side of the Overseas Highway encompasses 27,500 square feet of upland area. The subject has frontage at the rear along environmen- tally sensitive (mangrove and wetlands) area. Legally Permissible Use-The subject property is zoned P,Public Zoning District. The "P"District is intended to establish areas appropriate forpublic service facilities,government facilities and institutions, designated with the Public Facilities(PF)future land use category on the Future Land Use Map(FLUM). L For further details, the reader is referred to the City of Marathon Building Department or the Land Development Regulations. Financially Feasible Use - The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. As previously discussed, vacant land in this Public zoning district is limited. The general commercial uses in the subject's area were previously discussed. It is the appraiser's opinion that, if vacant and available, development of the subject site for Public use would provide a positive net return to the site and would therefore be considered feasible. Maximum Profitable Use- In the final analysis, a determination must be made as to which feasible use is the Highest and Best Use of the parcel as if vacant. It is my opinion that the Highest and Best Use of the subject site would be for Public use, as permitted by zoning with maximization of the site. The subject would likely be converted to the MU(Mixed-Use)zoning district if sold to a private entity. The Appraisal Company of Key West Page 43 Packet Pg. 2550 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL "MU" zoning district is designed to accommodate a wide variety of commercial and retail activities. However,based on the subject's location professional or medical office use would be the most feasible. "As Improved": In the final analysis, the appraiser must determine if the land alone is worth more than the existing property "As Is"to determine if the improvements contribute to the overall property. The subject site has rime frontage on the Overseas Highway or US Highway 1 offers good highway access. The P g g Y g Y � g g Y subject's location and layout are attractive, especially to Public office or Medical Office use. Most of :2 the commercial properties surrounding the airport are light Public or Medical use. The existing improvements still make a substantial contribution to the total property in excess of the value of the site. Therefore,no alternative legal use would economically justify removal of the existing M improvements. Thus, in my opinion the subject property's Highest and Best Use is "As Improved" as a Public Library. The property proposed to be possibly split-out of the Monroe County Government Complex and sold to the adjacent Fishermen's Community Hospital. The subject could be easily 0 converted to professional office or medical office use 0 N N Appraisal Company of Key West Page 44 Packet Pg. 2551 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL APPRAISAL DEVELOPMENT AND REPORTING PROCESS SCOPE OF WORK There are three typical approaches to value to consider in each appraisal assignment. The three traditional approaches to value are the Cost Approach,the Sales Comparison Approach and the Income 2 (Direct Capitalization and/or Discounted Cash Flow)Approach. The three approaches to value are not always applicable to the assignment; however, the three approaches to value are always considered. All appraisals begin by identifying the subject property (property to be appraised) and the appraisal problem. Data relevant to the subject property is obtained from various sources including but not limited to: the Monroe County Property Appraiser's Office, surveys,building plans and specifications and the M property owner. If possible, more than one source is utilized to confirm information. Improvements, if applicable, are inspected and measured by the appraiser. If and when building plans or sketches are made available,the measurements are verified for accuracy. Land size is based on recorded plat maps, 0 Monroe County public records, legal descriptions or surveys (when available). The local geographical market was researched and analyzed. The appraiser describe the building improvements in detail, if applicable; these descriptions are based on a physical inspection and/or plans and specifications. The appraiser is not a contractor nor structural v engineer; therefore, structure soundness or damage cannot be warranted. The appraiser will note any apparent or potential problems such as deferred maintenance, water damage or spalling. LN The Cost Approach consists of combining the estimated value of the land, based on comparable sales, _2 J with the depreciated value of the improvements. The vacant land sales are always inspected. The cost - of the improvements is estimated by utilizing a cost service, Marshall and Swift/Boeckh, LLC, plus ru knowledge of costs to construct obtained from local contractors. Exterior site visits of the comparable improved sales are always made; interior walk-through visits are made when possible. Sales prices for the comparable sales are obtained from the public records. Prices are customarily confirmed with a party to the transaction, i.e., buyer, seller, closing agent/attorney, or real estate agent. The public records are researched for mortgage terms and information. The comparable sales are researched utilizing First America Real Estate Solution and Realist.com, (FARES),FLEX MLS and LoopNet.com are computerized MLS(Multiple Listing System). All sources use data from the Monroe County Property Appraiser's Office,as well as,from the public records. The data is verified and compiled into sale sheets located within this report. Additional data sources include: newspaper clippings and the National Multiple Listing Service. Real estate agents in the market area Appraisal Company of Key West Page 45 Packet Pg. 2552 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL are interviewed for the most current information on sales and listings. All of the information is analyzed in preparing the report and is utilized in supporting the indicated value. The reader of the appraisal should be made aware that the valuation contained herein is based on a specific date. The value estimated on the specified valuation date will likely differ from the value one, two or three years in the future or in the past. The reader is advised to review the Assumptions and 2 Limiting Conditions in Section, as well as, the Certificate of Value. � 2 Finally,the three indicated values developed by the approaches,are reconciled to produce the final esti- mate of value. A brief description of each of the approaches to value follows: 0 0 N N Appraisal Company of Key West Page 46 Packet Pg. 2553 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL THE COST APPROACH The Cost Approach is based on the principle of substitution, the belief that a purchaser would not pay more than the cost of acquiring a similar site plus the cost of construction a replica or similar structure. "The Cost Approach is based on the understanding that market participants relate value to cost. In the Cost Approach the value of a property is derived by adding the estimated value of the land to the current cost of constructing areproduction or replacement for the improvements and then subtracting the amount of depreciation (i.e., deterioration and obsolescence) in the structures from all causes. Incentive for :2 coordination by the entrepreneur is included in the value indication. This approach is particularly useful in valuing new or nearly new improvements and properties that are not frequently exchanged in the market. Cost Approach techniques can also be employed to derive information needed in the Sales Comparison and Income Approaches to value. In preparing this appraisal,the appraiser inspected the subject site and both the exterior and interior of the building improvement. Information on comparable land sales was gathered, confirmed, and 0 analyzed. The subject property is utilized as apublic library. The Cost Approach consists of combining the estimated value of the land, based on comparable sales, with the depreciated value of the improvements. A purchaser would normally give little consideration to this value approach when his primary interest in the property is its income stream and desirable rate of return on his equity. The two e major exceptions might be in the case of a purchaser who is acquiring a property for his own use and v occupancy, an owner-user property, or in valuing a special use property. In the case at hand, a reliable valuation of the subj ect site was not possible due to the lack of recent land sales in the market area, especially within the P,Public zoning district. Furthermore, due to the age and 2 J condition of the structure, a reliable depreciation estimate would be difficult. Thus,the Cost Approach - was considered, but not deemed applicable. N N U Appraisal Company of Key West Page 47 Packet Pg. 2554 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL THE INCOME APPROACH The Income Approach to value presumes that no prudent buyer will pay more for the subject property than the capitalized rental value attainable through ownership of the property. The Income Approach represents the value an owner may consider paying in order to gain the benefits and profits of the business as well as that of the real estate. The buyer will only be willing to pay the present value of what he considers those future benefits to be. This approach has greatest application when the property being appraised is a type that purchasers buy for investment purposes. In the case at hand,the subj ect property is totally owner-occupied. The Direct Capitalization Method takes into consideration the current estimated net income, which is capitalized at a rate of return for similar property or investments of comparable risk,to indicate the price M that a prudent and knowledgeable investor would be justified in paying for ownership. The traditional Direct Capitalization Method was considered appropriate in valuing the subject property. 0 Income Analysis: The Income Approach was based upon market rate rental rates for the commercial properties in the subject's market area. This report contains the results of my investigation and analysis made in order to furnish an estimate of v the Market Value of the Fee Simple Estate of the Subject Property subject to the split-out from a larger parcel.The Fee Simple Estate is the unencumbered value of the subject property;basically,market rents and terms are considered with no regard to existing leases and terms. The subject property consists of L an owner occupied property,which is not encumbered by any long term leases. Therefore,only the Fee _2 Simple Interest is included herein. However, the reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. Therefore, a one-year stabilized net income is estimated for the property based on market data and comparison to most comparable rental data available was considered and will be capitalized into value utilizing a market extracted overall capitalization rate(OAR). In short,the Direct Capitalization Method utilizes the net annual operating income that the property is expected to produce. This estimated net income is capitalized, according to prevailing rates of return on similar property or investments of comparable risk, to indicate the price an investor would be justified in paying for ownership. E Historical financials for the subj ectproperty were not available.The subject has historically been utilized as a Public Library. The subject property is adjacent to Fishermen's Hospital and could be easily converted to medical office use. Appraisal Company of Key West Page 48 Packet Pg. 2555 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Analysis of Potential Rental Income: The subj ectproperty is a large branch library,which could be used as office space with adequate parking. As a result, I have researched leases of larger government office comparables. Similar, large facilities are quite limited in the Florida Keys. Therefore, I projected the potential rent income based on the following rent comparables. Rent Unit Size Tenant/Unit Monthly Annual Base 2 6� Comp.No. Address (SF) Use Base Rent Rent Rent1SF Terms' 1 5171 Overseas Hwy.,Marathon 10,060 U.S.Post Office $13,070 $156,839 $15.59 NNN* 2 4801 Overseas Hwy,Marathon 6,944 Sandal Factory/Stand Alone Retail $11,157 $133,880 $19.28 NNN S 3 112960verseas H-,vy.,Marathon 6,732 U.S.Homeland Security $15,646 $187,755 $27.89 NNN* 4 25000Overseas Highway,Summerland 9,175 U.S.FEMA $14,321 $171,848 $18.73 NNN* Subj. 3251 Overseas Hwy.,Marathon 7,055 Marathon Library NA NA NA NA Mean $20.37 Median $19.01 Minimum $15.59 *:Have been converted from Modified Cross for Comparison Purposes Maximum $27.89 1 Based on these comparables, it appears that the base rent for similar properties range from $15.59 to 0 $27.89 per square foot of gross building area per year with a mean at$20.37 and a median at$19.01. Thus,based on a market rent comparables,I projected a market rent at$18.00 per square foot,which is at the mid-range of the spectrum. This equal an annual rental of$126,990 or$10,583 per month. Thus, M the rent projection is well supported. Rent Comparable Map v Y,li �eb !Marat on N Big Pi- Sumni cr nd Rey CV 6aY 7rxrn .. 1� 1 � S i. Appraisal Company of Key West Page 49 Packet Pg. 2556 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Rent Comp Photo No. 1 Rent Comp Photo No. 2 ca k � as r + db. 5171 Overseas Highway-Marathon FL 4801 Overseas Highway-Marathon FL 0 Rent Comp Photo No. 3 Rent Comp Photo No. 4 Ali � f!9 J N P' h P' 11296 Overseas Highway-Marathon, FL 25000 Overseas Highway-Summerland Key, FL N I projected the overall lease on a triple net basis with the tenant paying utilities, his/her pro rata share of the real estate tax, hazard insurance,plus repairs and maintenance . Triple net rent is typical in the market area for most commercial properties. C Appraisal Company of Key West Page SO Packet Pg. 2557 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Potential Market Rent(Fee Simple) Analysis: Market rent was projected after interviewing market participants including landlords and rental agents. The potential rent was estimated at the mid range of the comparable rents due to the subject's premium direct highway front location and proximity to the Fishermen's Hospital on the Central Business District of the City of Marathon. Hence, I projected a market rent as follows. �� c r _r �rtsss s s r r) sr t I I s ss s ss sr it E ' s tirr i i- ri i err i rrsrs�z4s tfrr rlsi s su4 ` �- s Ss s r t r� sl ids rs r(s` 4 isrr}s" � Library/Office 7,055 $10,583 $126,990 $18.00 NISI All Total Potential Rent: 7,055 $10,583 $126,990 'sn Most commercial units within the subject's market area are leased on a triple net basis. In a triple net lease, the tenant is responsible for all utilities plus a pro-rata share of the real estate taxes, building 0 maintenance, hazard insurance and overall building operation expense. Vacancy and Collection Allowance: Vacancy&Collection losses include allowances for vacancy due to tenant turnover or loss of rents from e a tenant who vacates the building or is late with payments. Typically,the market is experiencing a 3% 6 to 10%vacancy and collection losses on commercial retail/office use properties on an annual basis. The higher end of the spectrum is for large, multi-unit structures. Because of the subject's prime location and being a single unit, I estimated a fractional 5%vacancy and collection loss rate in my analysis for the potential office space. 0 Reimbursable Expenses: I considered the tenant's pro-rata share based on the unit's percentage of gross income of the entire M property.In the case at hand,the subject's commercial unit,which is projected to be leased on triple net term, represents 100% of the overall property. The reimbursable expenses are based upon a pro-rata CD percentage at triple net terms. The property operating expenses were based on my estimated projected expenses. The lease rate is projected on triple net terms, whereby the tenants are responsible to pay additional rent Tenant's prorated share of all cost incurred by the Landlord in the operation for the maintenance, repair and of real estate taxes, insurance, and utilities. E Landlord's Vacancy and Collection Share: Iprojected a 5% vacancy and collection loss for the subject. This vacancy and collection loss would also apply to the reimbursables, as the landlord would be responsible for this share upon vacancy losses. Therefore,the reimbursable income was reduced by 5% in order to estimate Effective Reimbursable Income. Appraisal Company of Key West Page 51 Packet Pg. 2558 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL The Effective Gross Rental Income from the rental of the Subject Parcel plus the Total Reimbursable Income yields Total Operating Income (after vacancy and collection losses). This income is then adjusted for typical operating expenses summarized on the following page. Expense Analysis: In my analysis, I considered the landlord's expenses for the property, which include real estate taxes, building hazard insurance,exterior building and common area maintenance, basic utilities when vacant, 2 property management and reserves for replacement. Real Estate Taxes: M The subject is a proposed split-out of the larger county-owned government complex; thus, there is no historical assessments just for the subject parcel_ In addition, since it is County-owned, no real estate T taxes were levied.I proj ected this expense at 75%of the my final"As Is"value estimate for the subj ect. M This equates to a tax assessment of$1,012,500 million and a tax burden of$9,534(based on the current millage rate). 0 Building Insurance: This expense is for fire, windstorm and flood insurance for the building improvements. Typical insurance rates in the market area indicate $1.25 to $2.50 per square foot of building area for structures like the subject.The subject's historical insurance expense was not available. Hence, I estimated this expense at $12,346 or $1.75 per square foot of gross building area due to the S subject's large size. ru D Building Maintenance and Repairs Expense: This expense includes all general operating expenses, < including building repairs and maintenance for the subj ect property. This expense typically ranges from L $0.50 to $2.00 per square foot of building area for similar properties. Historical data was not available. _2 Considering the large gross building area of the subject property and its current condition, I utilized $1.50 per square foot of gross building area for the repairs and maintenance expenses for the subject ru parcel. This expense is well supported by other large complexes within the local market. Utilities Expense: In a triple net lease, the utility expenses are paid 100%by the tenant. Property Management: This expense includes the collection of rents and actions necessary to keep the " property in good condition and the owner informed. This expense is based on a percentage of Effective Gross Income. Typical management expenses range from 4.0 to 60.0 percent of Effective Gross Income for commercial properties, depending on the size of the building and the number of tenants. As the subject is realistically a single-tenant property,I estimated aproperty management fee at 4%of effective gross income. Reserves for Replacement: This expense includes items which have a shorter economic life than the building. Reserves for replacement typically range from 1.5%to 2.0% of Total Operating Income. I Appraisal Company of Key West Page 52 Packet Pg. 2559 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL estimated a conservative rate of 2% of Total Operating Income, which is well-supported by the RealtyRates.com Investor survey-4th Quarter 2017,which indicates that the National Surveyed Reserve Requirements ranged from $0.28 to $0.72 with a mean at$0.52 per square foot of gross building area. My projection of$3,030 is $0.43 per square foot of gross building area,which is well within the range. 0 r9 c� 0 c� r9 cv cv Appraisal Company of Key West Page 53 Packet Pg. 2560 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Income and Expense Summary: A Projected Fee Simple, Income and Expense Statement is shown for the subject property. Proiected Stabilized Operating Statement Subiect Property+ 3251 Overseas Hwy,,Marathon,Florida Potential Gross Commercial Rental Income: $126,990 Less 5%Vacancy&Collection Allowance: $( 6,350) Effective Gross Commercial Rental Income: $120,640 N Total Effective Rental Income: $120,640 Plus Reimbursable Income: Real Estate $9,534 Insurance $12,346 0 Repairs&Maintenance $10,583 >% Total Reimbursable Income $32,463 Less 5%Vacancy&Collection Allowance: $( 1,623) Total Reimbursable Income: $30,840 Total Operating Income: $151,480 Less Operatim!Expenses: %of EGI %of TOI $/SF of GBA Real Estate Incl.Non-Ad Valorem $9,534 7.90% 6.29% $1.35 Insurance $12,346 10.23% 8.15% $1.75 Repairs&Maintenance $10,583 8.77% 6.99% $1.50 Property Management $4,826 4.00% 3.19% $0.68 Reserves For Replacement $3,030 2.51% 2.00% $0.43 0 Total Expenses: $40,319 33.42% 26.62% $5.71 Net Operating Income: $111,161 r9 N ram. N U Appraisal Company of Key West Page 54 Packet Pg. 2561 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Capitalization: Capitalization can be defined as a method of converting an income stream into a capital sum by dividing the net income of the future income stream by an overall rate (OAR) or capitalization rate. The result should be the indicated value of the total property or the income-producing package. The capitalization rate was determined by the Mortgage Equity Method,from capitalization rates derived from the market, and from Debt Coverage Analysis as detailed below. Band of Investment Model or Mortgage Equity Method: An overall rate based on the Band of Investment Method was estimated at 7.7%. Assume a mortgage of 70% of the value, 4.5% interest with a 20-year term, the mortgage constant will be 0.0759; a down payment of 30% as equity and an Equity Capitalization of 8.0%. Comparable Sales Analysis: I have estimated a 7.8% capitalization rate for the subject property via the Comparable Sales Method, based on an analysis of local overall rates, which range from 5.8%to 8.9%with a mean of 7.7% and a median of 8.0%. According to RealtyRates.com, national Suburban Office Capitalization rates range 0 from 4.53%to 11.95%with a mean at 8.90% Debt Coverage Analysis: An overall rate based on the Debt Coverage Method was estimated at 7.4%. After analysis of current S financing availability for similar properties with quoted rates ranging from 4.0%to 6.0% and loan-to- value ratios of from 70%to 80%,I estimated an 7.59%mortgage constant for the subject property with a loan-to-value at 70.0%. A conservative debt coverage ratio of 1.40 was considered appropriate for the subject according to a survey of local commercial banks. Thus, an overall rate based on the debt L coverage analysis was estimated. _2 0 N N U Appraisal Company of Key West Page 55 Packet Pg. 2562 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL A reconciled Overall Rate (OAR) of 7.75% has been estimated for the subject property with heavy weight being given to the Comparable Sales method as it is most reflective of the local market. The following chart summarizes the three methods utilized. Development of Capitalization Rate Loan Ratio 70.0°ro Loan Term(Yeais) 20 Loan Rate 4.50% Equity Capitalization Rate 8.000/0 Band of Investment Method C Calital Source Portion Rate Rate '✓ Mortgage Loan 70.00% 7.591/o 5.310 Fclwty Funds 30.00% 8.00% 2.40°/ c U Overall Rate 7.71% Overall Rate Via Band of Investment Method(Rounded: Debt Coverage Analysis abt Coverage Ratio 1.40 X Loan to Value Ratio 70.0% X Mortgage Constant 0.0759 Overall Rate 7.44% Overall Rate Via Debt Coverage Analysis(Rounded: 0 Market Derived Capitalization Rates: National Local Realty Rates .Com4th Quarter 2017: Office Suburban Marke Low 4.53% 5.8% High 11.95% 8.9% Average 8.901/0 7.7% Median N/A 8.0% cv Overall Rate Via Market Affoach(Rounded: 7.80% Reconciled Overall Rate: F 7.75% Appraisal Company of Key West Page 56 Packet Pg. 2563 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL As a result, I estimated a 7.7% capitalization rate for the subject property, which is well-supported by market data. The estimated value via the Income Approach is as follows. Subject Property Subject GBA: 7,055 Subject Site Size(SF): 27,500 Net Operating Income: $111,161 Value Per Value Per NOI Divided by Cap Rate: 7.75% SF of GBA SF of Land = Indicated Value(Rounded): $1,430,000 $202.69 $52.00 Less Cost to Cure(Rounded): ($50,000) "As Is"Value Via Income Approach(Rnd): $1,380,000 $195.61 $50.18 Cost to Cure: The Cost to Cure for deferred maintenance and damage due to Hurricane Irma was detached in the 0 Improvement Analysis Section of this report. The rough estimate of$50,000 was deducted in order to estimate the "As Is"value of the subject property. Conclusion: In summary, this technique is viewed as a long-term investment valuation, subject to definitions, assumptions and limiting conditions. The Income Approach is most applicable to properties that are purchased for rental value. In the case at hand, the subject property has historically been utilized as a public library.As such the Income Approach was considered applicable and weighted heavily in the final reconciliation. 0 "AS IS"VALUE OF THE FEE SIMPLE INTEREST OF THE SUBJECT PROPERTY VIA THE INCOME APPROACH,AS OF December 30, 2017 (Rounded) IS: . . . . . . . . . . . . . . $ 1,380,000 � cv cv Appraisal Company of Key West Page 57 Packet Pg. 2564 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL THE SALES COMPARISON APPROACH This approach to value is based upon the principal of substitution; that is, when a property is placed in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no costly delays in making the substitution. The Sales Comparison Approach bases its value indication on sales of other similar properties in the area. These sales are analyzed and compared to the 2 subject property. The Sales Comparison Approach bases its value indication on recent sales that are pertinent to the value of the subject property. From these comparable sales, the appraiser must extract meaningful "common denominators"to be applied to the subject building. Typically,the sale price per square foot of gross building area, per square foot of land area and the overall sale price are the most common denominators used in estimating the value of the properties similar to the subject. Adjustments T are made to the indicated sales price for differences between the sale and the subject, when possible. M The more similar the sale is to the subject property, the fewer required adjustments, and the better it serves as an indicator of value. 0 Market Data: The subject property consists of 7,055 square feet of gross building area located on a 27,000 square feet of dry, upland. Extensive research has revealed a reliable number of potential comparable sales. However,there have been no sales of public libraries. Due to the availability of the fairly similar owner- user, large comparable sales, this approach was given heavy weight in the final reconciliation. 6 9 The following chart summarizes relevant units of measure for each of the comparable sales. A < description of each of the sales is included on the following pages. 0 9 cv cv U Appraisal Company of Key West Page 58 Packet Pg. 2565 Duel Ra aq!l HiW /4sg ) (A4un Rq)(3 ` ) l sl a aq!-1 jo l sl a - VLL :4u8wq3B44V to M N 0 Cb a_ m ac a `i i f' y; ool��iIo,ENI Ioo � r o 0o a «tr, b� �t ,,� �I�I�IoIo�Icn N oo er cn � i oloiloolvilcrilcri CAI�I�Io d v�i o �' "4 �I�ImI�olmloo 00 O et o0 nI ?Ic�IO I I� 69I69I69I69I69I69 �i N N H N 3�{f�&T, Est ' ""3 oIo[o[o[o[o o �' t i� �y �y OEOIOIOIOIO p r ts lt� , ,I I [ I~[ [ ~ , t t £'""Jf I�IMIoINIo r o el rl �o ,�."s',� ololololc�Ioo 0 0 0 0 � �y 4 .I. pQ l rl��Iir tiro�i�f�'. o o m cC V) cC ca � ct In s y aj) aj°�) sr oImI�I�Iooloo N � R+ eC O �, s, NI MI7Iv;II-o U 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL SALES COMPARISON COMPARABLES MAP dE! Hialei!, errd"all; �y Ca1a�Gahie& sm av, n v:C West CD Y �tlf3f'J1Ru^.�Ir�� F .F+ V I,, IIV W I pyy i ff7 sm sm ff7 sm M CV T— CD N u Appraisal Company of Key West Page 60 Packet Pg. 2567 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Sale Not - 100460 Overseas Highway, Key Largo: This recent comparable consists of a rectangular, interior site with 100 feet of frontage along the Overseas Highway at approximately mile marker 100.5 and it contains 21,418 square feet of upland area. The site is improved with a one and one-half story mixed-use CBS building, which contains 8,200 square feet of gross building area. The current unit mix is comprised of medical office,office,retail and a two bedroom/two bathroom upstairs apartment. This is an arm's length transaction, wherein John H. Smith, Trustee sold the property to Commercial Cent of the Florida Keys, LLC. The appraiser recently appraised the property. This comparable was :2 purchased for conversion to a medical clinic. M W ry� - ®®0y VuJ - W Sale No.2 - 13367 & 13369 Overseas Highway, Marathon: This is the recent sale of a mixed-use medical office and residential apartment property encompassing two detached CBS structures with a total gross building area of 5,640 square feet. The facility is situated on a 1.29 acre upland site,plus there is an additional 0.91 acres of environmentally sensitive land. 2 0 It appears that the existing leases were below market. The sale was an arms length transaction, all cash ru wherein Alan G. Schmitt, Inc. Sold the property to 13367 Overseas Hwy.,LLC. � r9 cv " } N Ei �+f1 ai F. E k � Appraisal Company of Key West Page 61 Packet Pg. 2568 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Sale No.3 -3414 Duck Avenue, Unit 8, Key West: This is the recent sale of a large medical office unit within the Poinciana Plaza Condominium. The subject unit contains 5,676 square feet of gross leaseable area, which is a bout 36% of the overall professional office condominium. The site reported is a pro-rated estimate. It was formerly used as the Key West Diagnostic Center and was purchased for medical office use. This comparable was analyzed due to its use.This sold with conventional financing;however,the property was owned by Capital Bank, after its foreclosure was finalized. I appraised this unit at the time of sale. rss � 0 CJ r9 9) Sale No.4 - 81981 Overseas Highway, pper Matecumbe: This comparable parcel consists of a < rectangular-shaped interior parcel with approximately 300 feet fronting along the southerly side of L Overseas Highway, aka U.S. Highway No. 1,plus 300 feet along the northerly side of Old State Road 2 4A. The site extends 167.46 feet in depth and contains 50,238 square feet or 1.15 acres of upland area. The site encompasses three contiguous platted lots. The property is commonly known as Island Silver ru and Spice,an upscale retail department store featuring clothing,swim wear,shoes,jewelry,house wares and gifts. The property is located at 81981 Overseas Highway, at about Mile Marker 82, Islamorada Florida. The property has a prime location within the downtown central business district of Islamorada, Village of Islands with excellent visibility from both the northbound and southbound lanes of Overseas Highway. N The comparable improvements consist of a one-story CBS/masonry structure with awood frame addition that contains 13,179 square feet of gross building area. The building encompasses several retail areas, E a retail mezzanine, customer and private restroom facilities, storage rooms, and offices. There is a covered entry/exit at the easterly side of the building,which is accessible from the large parking lot on the easterly two-thirds of the overall site. According to the Monroe County Property Appraiser's records, the original portion of the building was constructed in 1956. Appraisal Company of Key West Page 62 Packet Pg. 2569 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL This sale was an arm's length transaction. Island Silver and Spice, Inc. sold the subject to RTG Islamorada Retail Ventures,LLC via a warranty deed that was recorded in Official Record Book 2788, Page 21 in the Monroe County Public Records. I appraised this comparable in the past. :E+ 3F f U U M Sale No.5-68100 Overseas Highway, t� This is the sale of atwo-story mixed-use CBS structure containing 6,544 square feet of gross building area. There is a convenience store at the first level with apartments above. The improvements are situated on a 22,754 square foot highway front site within the City of Layton. The parcel does have a small amount of canal frontage. This was an arm's length transaction. ' 0 -k f t) N h N Sale No.6 -4801 Overseas Highway, Marathon: Although this property is identified by one County parcel number,it consists of an improved parcel,plus a vacant parcel,which is considered excess land. The excess land has been deducted for a more reliable analysis. The property consists of two rectangular-shaped sites,with each encompassing 6 contiguous lots and each parcel fronting approximately100 linear feet on the southerly side of U.S. Highway No. Appraisal Company of Key West Page 63 Packet Pg. 2570 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL 1,also known as the Overseas Highway; each parcel is approximately 200 linear feet in depth,with 100 linear feet fronting along the northerly side of Lynmeade (Ocean) Boulevard. The excess parcel also fronts 200 linear feet along the westerly side of 49`h Street. Each of the comparables site area is 20,000 square feet, for an overall total area of 40,000 square feet. Parcel A is improved with a CBS building containing a total of 6,944 square feet of gross building area for retail sales. The building has an unfinished,partially below grade,storage area of about 7,284 square feet. This area has an unpaved floor and lacks lighting and air-conditioning, therefore, it has been considered as an amenity. The structure contains a large,open retail sales area,two,2-fixture restrooms :2 with a sales office/counter,a kitchen/break area and storage area in the southwesterly end of the subject M building. This was an arm's length transaction wherein was conventional financing. This comparable set the upper-limit of the value range. I appraised this property at the time of sale. 0 0 N N U Appraisal Company of Key West Page 64 Packet Pg. 2571 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Units of Measure: Typically,large retail/office use properties are analyzed via the sales price per square foot of gross building area. The price per square foot of gross building area is a more reliable unit of measure, in the case at hand. Discussion of Adjustments: Market Conditions: Based on the sale and resale of some of the comparable sales properties in Florida Keys, the data indicates that values generally stabilized with annual appreciation at an average of 2.3% and medium at 3.6%per annum.As a result,sales which transpired over a year ago were adjusted for positive market conditions at an appreciation rate of 3%per year. An analysis of the comparable sales/resales activity is as follows. CO Previous Previous Annual Difference 2017 Assessed 2017 Sale Listing SP/LP Sales Sales 2ndPrice/ Change Appreciation 1n Dates Assessed Asses. Per S.F. Tax Bu 0 U No. DOM Price Ratio Date Price Sg H. Price Rate Years Value Ratio GBA Burden S.F. Sale 1 i 58 i $1,300,OOOi 100.0%i N/_A i N/A i N/A i N/A i N/_A i N/A i $1,032,058 i 79.4%i $ 125.86 i $ 8,876.42 j $ Sale2 1 951 -------- --- -$1-0-00—,0-00 1—1-10—.0 o%! 12/1/95 i $580,000 1 $053 1 $5200 3.0%1 21.841 $97949 1r 890%1 $ 17367 i $ 9,,223.19 i $— — ZCfJ ' —4---- — -4------ - ---------—————— -------------------- Sale3 i 256i $1,420,000191.5%1 1/0i— 150,OOOi $1.651 -$850,OOOi -4.9%[ 10.08 $1,065,2731 81.9%i $ 187.68 i $ 9,771.65 i $ -----7j-----j-----j-----j----- - ------j-----j---of-----j------j-- Sale = _131 j$2799 000 1 989/= 5/1/89= $8245001 $0311 $18405-0= ---- —o/%! 27.79 $22915281 828/= $ 17388—=—$——22-0-58—.9-4 a= $ ----4----'--,--'—k--.-----------k---, -k-- ®-4--,—= — -—————— --4-----® Sale 5 i 160i $1,295,000i -- _94.8%i N/_A i N/_A i N_/A i N_/A i MA,i N/A $ ,00 ,23 i_8 .7%i $_ 53. 5 i—$_ ,463.82 i $ CD 9 _ r_ 42.9 $Sale6 0F$ 950,OOOF (T-/T 5/_0/O1F 71,000F $0.37' _9,OWI 9% 17 _ 8,357.50 _ - Subject V9 Mean 117 94.2% 2.3% 76.3% $157.01 $11,625.25 t Median 113 96.8% 3.6% 81.8% $163.41 $9,497.42 i Minimum 0 70.1% 4.9% 42.9% $125.86 $8,357.50 3 Maximum 256 110.0% 6.9% 89.0% $187.68 $22,058.94 i Property Rights:ghts: The subject has no leases encumbering the property; thus a Fee Simple analysis is warranted herein. Comprables 3 through 6,were owner occupied or no long-term leases were in place; ru thus, they were considered Fee Simple. Sale 6 was leased, but the tenant purchased the property. Comparables 1 and 2did sell with leases in place(Leased Fee).These leases were considered to be below market, thus a positive adjustment was made. N R- Conditions of Sale: N All of the sales were arm's length transactions; thus, no adjustments were warranted herein. E Financing: All of the comparable sales were considered cash equivalent, either cash, conventional or private financing (purchase money mortgage) at market rates. Thus, none of the comparables required adjustment for financing. Appraisal Company of Key West Page 65 Packet Pg. 2572 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Floor to Area(FAR): Most of the comparables,had generally similar FAR(Building Area to Land Area Ratios). Comparable 2 has a much lower FARs; thus, it was negatively adjusted, while Sales 1,3 and 6 were positively adjusted due to higher FARs. Typically, a sale with a lower FAR has a higher price per square foot of gross building area, which is the most reliable unit of measure, in the case at hand. Gross Building Area: Market data indicates that the larger the gross building area, then the price per square foot of gross building area, decreases resulting in an inverse relationship. Therefore, the smaller sites require a negative adjustment. The smaller the gross building area, the higher the price per square foot of gross building area. Sale 4 is larger and is positively adjusted, while the other sales are similar in gross T building area. Highway Frontage: The subject has frontage along Overseas Highway in Marathon. Most of the comparables are located on-the-highway; thus no adjustments were made. Sale 3 is located in a more 0 residential location (off highway) . Therefore it was positively adjusted. Water Frontage: The subject is a dry,nonwaterfront lot. Sales 1 through 4 are dry and Sale 5 has a small amount of canal S frontage with mangrove fringe. Thus, it has limited water access, but was negatively adjusted. ru 9 Overall Location: Sales 2 and 5 were considered to be similar overall in location. No adjustments warranted. Sale 1 is slightly inferior (positively adjusted). Sales 3, 4 and 6 had superior locations and were negatively adjusted. 0 Zoning: The subject is located within the P, Public Use Zoning District, Comparables 1, 2, 4, 5 and 6 cu are located in superior commercial districts. Thus, they were negatively adjusted. Sale 3 is in a single family district, but no adjustment was warranted as the zoning will eventually have to be changed. Condition/Quality of Construction: The subject property is considered to be in above average condition. Sales 2 and 6 were considered N overall similar to the subject property,therefore,no adjustment were made. Sale 3 is slightly superior; thus, it was negatively adjusted. Sales 1, 4 and 5 were slightly inferior. E The following grid summarizes each sale and shows the necessary adjustments as previously described: Appraisal Company of Key West Page 66 Packet Pg. 2573 da l Ra aq!1 /4sg ) (A4un Rq)(3 ` ) l s! a aq! j l s! a - L-LL :4u8ua O 44 M 0 b } I I ICI I I I I I I I I I I I I•� I I I I I I 1,241-I twl�57 I I I I "OI I I I I I I I I I I I �I � oI oI�I IoI I I I I'�I oI I coil,�I "Io4IoIoIylzl�[ I aI II II II � � II II IIIII III N o o �j� tti�l r �, MI �I qI- I oI�INI I � N I o oI wI oI I oI I I I I I I `ni I I I `n I I I I I t I „trr�� I I I ICI I I I I I I I I I I I� I I I I I 1 f� J�rtt2 31, I I I Iaal I I I I I I I I I I I I I I I I I I I I IV1I I I I I I I I I I.r; I I I I I I I I I �,I I I o�9 I I I I�I I I I I I I I I I I I �I IIII I I I I I I I MI I I I� M I I I I I IM M 'r .",,.� i ° ° rlvlpl jlrol I�I�III I I I �IIIIIIIIIIdr, IIkl� IIIIII IIIIoIo r k gI tr rt `� INIoI�I � IwIv,I�I�I I I I Iv,I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ❑ i��� � o 0Vli jI �I "Ir;1oI =Ii IZiv li OI IoIM rr gI �I I- I I I ^I I I I I �I I I I o I I I I I � �I� n I I IpI I I I I I I E I I I I I I I I I I I lz lz ��; w oo c �I�'I �j uj I °I MIoIZIZI I�I aI II I II I II I II a I II Io IoI aI r4r�' A m N NI I I I N �I I� INI I +3 M I I I I I I I I I I I I I I I I I I I I I I a I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I II I I I I I I I I I I I I I I I I I I N xi o 8 M —I00 N o ti c o m ti t � � pit iri t M iY (� c3 '�❑ V] N p H Ff3 H rl rl �„ H N NMVS- rl Gn H3 tI , a o to o to ci s o 0 � U U ;err i � J v � � v �, � � � � � �' � "d '•d "C � I ca �D a G7 G7 OW OW w o o I 1 L1+ L1+ L1+ ca ❑ s7 m ca m s7 I � 'O a w w �5 � i , 1 � �3 �3 �3 Q �•� W .� � � on vv�� �','•A v� W � � e"a e"a � r0 m H �i 1i p�� A� w'. '.��'.��'.��.-�. � � S7 � O �� '� � � � S7 ;,� �' � S7 ;,� � O '�} � � � S7 "� "� "� y �. •� � a w" wCg � wUx � ON° Cg � � � ZC7 � 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Valuation Conclusion: In order to estimate the value of the subject property,we analyzed recent sales of large comparable most office properties.On the preceding table,a detailed adjustment grid is presented for the subject property. The comparables indicate an adjusted value per square foot of site area for the subject property from $178.15 to $268.00 per square foot with a mean at$201.29 and a median at$189.50. Based on analysis and adjustments to the individual comparables,Sales 1,2,3 and 4 were given the most :2 weight, due to their least amount of gross adjustments and their recency. The other Sales were moderately weighted. The weighted average of these comparables equaled$195 (rounded)per square foot of gross building area. Therefore,in my opinion the subject's overall value should be noted below, T which is considered reasonable and well-supported. The calculation is noted as follows. "}'' % 1,dIlAt t,,;,y, ?'lItngFt �:u'FC1:,:, Lquidls +.r:s:,t ri i i La�iitV<,a1u .(Rs)',: $195.00 X 7,055 $1,375,725 0 CJ Value via the Sales Comparison Approach(Rounded): $1,380,000 Less Cost to Cure (Hurricane Damage): ($50,000) "As Is"Value via Sales Comparison Approach(Rounded): $1,330,000 va c) "AS IS"VALUE OF THE FEE SIMPLE INTEREST IN THE SUBJECT PROPERTY,AS INDICATED BY THE SALES COMPARISON APPROACH(Rounded) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,330,000 0 c) r9 cv ram. CD cv U e3 Appraisal Company of Key West Page 68 Packet Pg. 2575 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL RECONCILIATION AND FINAL ESTIMATE OF VALUE The following Fee Simple value indications have been developed in my analysis of the Market Data. "SI 1}�ft tf 7, {sl,, 4�js `t t r h i�5�s i it/��j� � r j�A} r,� s i � � > > � ' r fr��t�■■r a t i,4}t l 1t i� 1 (� "As Is"Fee Simple Valuation Method: Market Value Cost Approach: Not-Applicable Income Approach: $1,380,000 Sales Comparison Approach: $1,330,000 "As Is" Market Value of the Fee Simple Interest as of December 30, 2017 (Rounded) $1,350,000 0 The greatest weight is given to that approach in which the appraiser has the highest degree of confidence. This implies a minimum of assumptions and a sufficient quantity of data. The Cost Approach was not considered applicable due to the age and condition of the building improvements, as estimating M depreciation would be very subject and lessen the reliability of the valuation method,plus the lack of land sales, especially in the Public Zoning district. Based on analysis of the real estate market activity in the subject property market area and considering the applicability and reliability of each of the approaches, it is my opinion that the Market Value of the subject property is most accurately indicated by the Sales Comparison Approach, due to the availability of recent similar use owner-occupied properties. Accordingly, greatest weight has been placed on the Sales Comparison Approach. The Income Approach was weighted moderately due to the income producing potential for subject property, (if leased as an office) and reliable market rental income and expense data. Based on market analysis and research,it is my opinion that the "As Is"Market Value ofthe Fee Simple Estate ofthe Subject Property,commonly known as 3251 Overseas Highway,Marathon,Florida,33050, subject to proposed split-out from larger parcel, definitions, assumptions and limiting conditions, as of December 30, 2017 is: cv ONE MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS ($1,350,000) The "As Is" Market Value for the subject property considers no personal property. Appraisal Company of Key West Page 69 Packet Pg. 2576 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL CERTIFICATE OF APPRAISAL I HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY: Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL (Florida Keys) 102050 Overseas Highway Key Largo, FL 33037 s I have personally examined the following property: Commonly Known as: 3251 Overseas Highway `a Marathon, Florida 33050 0 and based on market analysis and research, it is my opinion that the "As Is"Market Value of the Fee SimpleEstate ofthe above Subject Property,subjectto proposed split-out from largerparcel,definitions, assumptions and limiting conditions, as of December 30, 2017 is: ONE MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS 6 ($1,350,000) The "As Is" Market Value for the subject property considers no personal property. I ADDITIONALLY CERTIFY that, to the best of my knowledge and belief: o The statements of fact contained in this report are true and correct. o The reported analyses,opinion,and conclusions are limited only by the reported assumptions and CD CD limiting conditions,and are my personal,impartial,and unbiased professional analyses,opinions and conclusions. N o I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. E o My engagement in this assignment was not contingent upon developing or reporting predetermined results. o My compensation for completing this assignment is not contingent upon the development or Appraisal Company of Key West Page 70 Packet Pg. 2577 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL reporting of a predetermined value or a direction in value that favors the cause of the client,the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. o My analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. o James E. Wilson has made a site visit of the exterior and interior walk-through of the property that are the subject of this report. o No one has provided significant professional assistance to the persons signing this report. o The use of this report is subject to the requirements of the State of Florida relating to review by the Florida Real Estate Appraisal Board of the Department of Professional Regulations,Division of Real Estate. 0 o James E.Wilson has completed the Standard and Ethics education requirements of the Appraisal Institute for Associate Members. o The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the 6 Standards of Professional Appraisal Practice of the Appraisal Institute. o The appraisers has performed no services, as an appraiser or in any other capacity,regarding the property this is the subject of this report within the three years period immediately preceding acceptance of this assignment. APPRAISAL COMPANY OF KEY WEST e( cv cv James E. Wilson, MRICS, President State-certified general real estate appraiser RZ 2164 Appraisal Company of Key West Page 71 Packet Pg. 2578 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL PROFESSIONAL QUALIFICATIONS JAMES E. WILSON, III, MRICS James E.Wilson has been a resident of South Florida since 1976. His education includes a Bachelor of s r� •�r�s1�, Science in Business Administration with a Major in Economics from the University of Florida, 1987- 1991. His experience in the real estate industry began in early 1992 as aresidential real estate appraiser -� in Pompano Beach,Florida. He appraised a wide variety of single and multi-family residential properties in Dade,Broward,and Palm Beach counties over a two-year period. In the search of advancement and i challenge,James Wilson moved to the City of Key West,Monroe County, Florida in order to obtain experience and practice commercial real estate appraisal valuation techniques in a demanding and somewhat unique market area. Over the past 25 years James has been exposed to a wide-range of appraisal projects,including highest and best use studies,complex property s appraisals,and wetland and environmentally sensitive valuations including transferrable development rights. His appraisal experience includes financial and investment analysis,appraisal review,feasibility and planning analysis,as well as market research and analysis. James Wilson is a State Certified General Real Estate Appraiser(licensed to perform residential and commercial appraisals)and a General T) Associate Member of the Appraisal Institute. He is a member of RICS(Royal Institution of Chartered Surveyors),which is an international member organization for professionals in property,land,real estate,construction and related environmental issues.Jim is past President M of the Key West Gator Club,2013/2014 President of the Sunset Key West Rotary Club,member of Class VII Leadership Monroe,2012 President of the Key West Chamber of Commerce,and has been elected to continue to serve on the Board of Directors of the Key West Chamber of Commerce.Jim is still an active member on the Board of Directors for the Key West Chamber of Commerce. 0 CJ Education: SOUTH BROWARD HIGH SCHOOL,Hollywood,FL, 1987. UNIVERSITY OF FLORIDA,Gainesville,Florida-Bachelor of Science in Business Administration- r9 Major in Economics, 1987-1991. APPRAISAL INSTITUTE os 9) Appraisal Reporting of Complex Residential Properties,October, 1993. Persuasive Style in Narrative Appraisal Reports,May, 1994. ACE 1779-"Special Purpose Properties-The Challenge of Real Estate Appraising in Limited Markets", September, 1996. ' 410 Standards of Professional Practice,Part A(USPAP),8/97. 420 Standards of Professional Practice,Part B,August, 1997. 520 Highest&Best Use and Market Analysis,October, 1997. Non-Conforming Uses Seminar,January, 1998. ru 510 Advanced Income Capitalization,May, 1998. 9) 530 Advanced Sales Comparison&Cost Approach,May, 1998. 540 Report Writing&Valuation Analysis,August, 1998. e( 550 Advanced Applications,February, 1999. Regression Analysis in Appraisal Practice:Concepts&Applications,Seminar,March,2000. N General Demonstration Appraisal Report Writing Seminar,March,2000. 800 Separating Personal&Real Property from Intangible Business Assets,March,2002. Successful Completion of the General Comprehensive Examination for the Appraisal Institute N Uniform Appraisal Standards for Federal Land Requisitions,March,2007 General Demonstration Appraisal Report Writing Seminar,August,2007 Valuation of Conservation Easements,January,2008. Appraising Distressed Commercial Real Estate,June,2009 Oil Spills and Property Values,Webinar,August,2010 Business Practices and Ethics,September,2010 A Debate of the Allocation of Hotel Total Assets,October 26,2010 Appraisal Institute Update,May 19,2011 Appraisal Company of Key West Page 72 Packet Pg. 2579 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Professional Qualifications of James E. Wilson, III (Continued) APPRAISAL INSTITUTE Appraisal Curriculum Overview(2-day General)May,2011 Perspectives from Commercial Review Appraisers,July 20,2011 Fundamentals of Separating Real Property,Personal Property,and Intangible Business Assets,05/07/2012- 05/08/2012 y UAD-Up Close and Personal,November,2014 Expert Witness Testimony:To Do or Not to Do,November,2014 Analyze This!Applications of Appraisal Analysis,November,2014 Florida Appraisal Laws and Regulations Update Reviewers Checklist,November,2014 = National USPAP Update Equivalent(2014-2015),November,2014 Purchase Price Allocations for Financial Report and Tax,April 16,2014 Behind the Headlines,the New Real Estate Real Estate Economy,May 16,2014 GOLD COAST SCHOOL OF REAL ESTATE �-- Real Estate Principles,Practices,and Law-FREC Course I,May, 1992. Salesman Post-License Program,February, 1994. Mortgage Broker,Exam-Prep Program,September, 1992. AB I-Appraisal Board-Fundamentals of R.E.Appraising,5/92. U AB II-Appr.Board-Appraising Resid.&Income Properties,2/94. AB IIb-Appraisal Board-Cert.Resid.Appraisal Course,7/94. Za _ AB III-Appraisal Board-Certified General Appraisal Course(Income Capitalization Course),February, 1995. USPAP-Uniform Standards of Professional Appraisal Practice,6/92. USPAP Course,September, 1995. A-102-Plan Reading for Appraisers,September, 1995. National USPAP Update Course,June 2006 Techniques of Income Property Appraisal,June 2006 McKISSOCK DATA SYSTEMS Automated Valuation Models, October,2000. Uniform Standards of Professional Appraisal Practice,October,2000. Factory Built Housing,October,2000. Appraiser Liability,September,2002. Appraising Nonconforming&Difficult Properties,September,2002. Appraiser Liability,USPAP,September,2002. Appraising for the Secondary Market,October,2004. Appraising High-Value Residential Properties,October,2004. Florida Laws and Regulations,October,2004. Limited Appraisals and the Scope of Work Decision,October,2004. National USPAP Equivalent,October,2004. Florida Laws and Regulations,September 2006. Disclosures and Disclaimer,September,2006. r Appraisal Trends,September 2006. National USPAP Update Equivalent(2008-2009),November,2008. Introduction to Expert Witness Testimony,November 2008. Mortgage Fraud-Protect Yourself,November,2008. Florida Appraisal Supervisor-Trainee Roles and Relationships,November,2008. Florida Laws and Regulations,November,2008. National USPAP Update Equivalent(2010-2011),August,2010. Risky Business:Ways to Minimize Liability,August,2010. Appraisal Company of Key West Page 73 Packet Pg. 2580 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Professional Qualifications of James E. Wilson, III (Continued) Florida Laws and Regulations,August 2010. Florida Apprisal Supervisor-Trainee Roles and Relationships,August,2010. The Changing World of FHA Appraising,August,2010. Systems Built Housing:Advances in Housing for the New Millennium,October,2012 Deriving and Supporting Adjustments,October,2012 Introduction to Regression Analysis for Appraisers,October,2012 Introduction to Residential Green Building for Appraisers,October,2012 Florida Appraisal Laws and Regulations Update National USPAP Update Equivalent(2012-2013),October,2012 Appraisal of Fast Food Facilities,November,2016 2016-201 7-Hour National USPAP Update Course,November,2016 Managing Appraiser Liability,November,2016 Florida Appraisal Laws and Regulations,November,2016 Advanced Hotel Appraising-Full Service Hotels,November,2016 = VALUE INFORMATION TECHNOLOGY,INC. 4 "Perspectives on Appraisals"FREAB Course ACE#1591,June, 1995. NORTH BROWARD BOARD OF REALTORS ACE 591-Basics of Construction-How a Florida Home is Built II,January, 1994. Certification: State certified general real estate appraiser,as designated by the Department of Professional Regulation, 0 CJ State of Florida;Registration No.RZ 2164. Licensed Real Estate Salesperson,as designated by the Department of Professional Regulation,State of U Florida;License No.SL 0589552(currently inactive). M Professional Associations: Key West Board of Realtors General Associate Member of the Appraisal Institute Member of RICS(Royal Institute of Chartered Surveyors),October,2010 Member41299389 e( Affiliations: Past President of the Key West Gator Club(Alumni Organization of the University of Florida Member of Class VIII,Leadership Monroe County Board Member of the Rotary Club of Sunset Key West,2013/2014 President,2009 Treasurer,2010 Vice President,2011 President-Elect,2012 President Board of Directors of the Key West Chamber of Commerce, Current Board Member 0 Experience: WILCO VALUATIONS,P.A. d/b/a APPRAISAL COMPANY OF KEY WEST,James Wilson,President and his wife,Maria Virginia Wilson,also a State Certified General Real Estate Appraiser purchased the Appraisal Company of Key West from Mr.Richard Padron in April,2004. Mr.Padron has continued to be a Fee Commercial Real Estate Appraiser with the Appraisal Company of Key West,which has ensured continuity and quality control. N APPRAISAL COMPANY OF KEY WEST,INC.,Fee Commercial Real Estate Appraiser,April, 1994 to April,2004. cv F.C.P. APPRAISAL SERVICES,INC., Senior Real Estate Appraiser and Trainer,May, 1992 to April, �. 1994. Appraisal Company of Key West Page 74 Packet Pg. 2581 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL Appraised various types of properties in the Florida Keys,including: Retail Stores Commercial/Residential Condominiums Restaurants Full-Service Marinas/Boat Yards Strip Centers Environmentally Sensitive Acreage Office Buildings Industrial Uses Mixed-Use Properties Guest Houses/Hotels/Motels Service Stations Mobile Home and RV Parks Multi-family Projects Warehouse(including mini-storage) Proposed Developments Special-Use Properties including Schools Single-family Estates Seafood Processing Plants APPRAISER CERTIFICATION STATE OF FLORIDA O DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION Ca FLORIDA REAL ESTATE APPRAISAL BID =� R,:216A � t8 The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS. � Expiration date: NOV 30,2018 r WILSON,JAMES E 3144 NORTHSIDE DR SUITe261 KEY WEST FL 3�040 x„ k a=> 0 U 1 q V N N Appraisal Company of Key West Page 75 Packet Pg. 2582 0.3.f Appraisal Report 3251 Overseas Highway, Marathon, FL PURCHASE ORDER MONROE COUNTY PURCHASE ORDER NO. r BOARD OF COUNTY COMMISSIONERS 't 1100 Simonton Street Suite 2-213 PAC:;R / Kay Walt FL 33040 1� P4 � SALES TRY.%KEMPT NfJ &;r4fq'3�i?52'9AC-Y PD OPY � V 1 0.01023 Pti ONTE 30 ?.VEr 4563.... 5 FMONROE COUNTY ENGINEERING DEPT R' APPRAISAL COMPA-14Y OF KEY WEST INC u« 'I [ SIMCNT)v aT 2 TD fiLs A6fM 2-:7: 3 T : L P KEY WEST, F1, 3040 201 0 . AT-,Nz BLAINEL"ERDA R KEY W: S'i Fes.. T 33040 2_52 J ¢' . ......... ...r OPI ER OAre' f3/1 aj:v, ft'Y%S:E pR:R°ww, LF G7 N6 (y0C152L0�3 F5 r3."7nYL - ------ - _ .......�........ ..�, TERMS NET 30 DAYS �P6H. DFESC' ___ iue,aj raunrtrlrr j uam! trtSaR��`�N T UNla rbRice r F.%TFNSYON 01 1.00 APPRAISAL INSPECTION AT rirlr MAiRAT`UON 3500 0000 3,5GO.0 LIBRARY. IRDF, -P&D ONE ORIGINAL REPORT, I U) I 11LI"j COS I CEr!'Ell AICOU l I ... ',HQAe r noJFc-A=� Arnae.:wa PACE'r 3TRL. 5 IOTA'-L- __.... .... 3.,500, 0 � _...�.�..�. ._.a. ,.... _ I I P41114IAL PAYMENT FINAL.PAYMENT ........-._�— INVOICE NO. .....-- Wa CE AMOUNT CV h r PAYMENTaFso ------- _ PAYMENT APPROVAL. PURCMG SING AGENT � Appraisal Company of Key West Page 76 Packet Pg. 2583 0.3g NEW APPRAISAL OF A PREVIOUS AssIO E1 SPECIAL USE PROPERTY 3103 OVERSEASIsm MARATHON, FL 33050 a m 3 y CRE FILE No: 874778602 E PURCHASE 10000-0000702659 �. VENDORBHE 046825 � IN A RESTRICTED UE APPRAISAL REPORT y r a m FOR y m OLI A BARKET U. SENIOR LEASING ASSOCIATE za BAPTIST HEALTH ENTERPRISES � 8500 SW 117 AVENUE ROAD, SUITE 101 MIAMI, FL 33183 T CL CL �" '10't"wa N SEF V ? .April 2 , 202 � 9 .�u , CRE Date of Report. 04 April 29, 202 E u By CRE VALUATION SERVICES 9655 SOUTH DIXIE HIGHWAY SUITE 309 MIAMI, FL 33156 Packet Pg.2584 f=-R V I C,E S April 29, 2020 Ms. Carolina Barket Baptist Health Enterprises 8500 SW 117 Avenue Road, Suite 101 Miami, FL 38188 y Re: CRE FileNo, 874778602 M Appraisal of a Special Use Property located at 8103 Overseas Highway Marathon, FL 33050 We previousiy appraised the subject property With an effective date of October 10, 2017 which had arli indicated E market value of 1 4BQ.098. We have performed this new appraisal of a previous assignment on the above Mn referenced property, the conclusions of which are set forth in the attached restricted Use Report The type of value sought in our appraisal of the subject was an as is" Market Value opinion for the fee simple interest in a ca special rase property unit as of April 29 2020, subject to the extraordinary assumptions and limiting conditions -� y cited in the attached report, M The intended riser of this report is for Baptist Health Enterprises The intended raze of this appraisal is for y assistance in. portfolio valuation by the client Baphst Health Enterprises, U. The subject property is a Special Use Property that was originally built in 1985, with several upgrades and renovations over the years. The building has a Gross Leasable Area (GLA)of 10,019 SF, with a land to building ratio of 6,5. Moreover, the subject property is on a 1 51-acre parcel Of land that is zoned for public, use, it is J important to note that the property size is based on the, specifics set forth by the client and is an allocation from M the parent tract. y E CL In view Of the following facts and data in conjunction with this appraisal, Ik is our opinion that the as is" Market cL Value of the fee simple interest of the subject property as of April 29, 2020s subject to the extraordinary04 assumptions and limiting conditions, was; a N „ 8 , r Extraordinary Assumptions and Hypothetical Conditions-- gone, E E U The undersigned analyses, opinions and conclusions were: developed, and this report has been prepared, in conformity with the Unifortrr Standards of Professional Appraisal Practice of the Appraisal Foundation and the requirements of the Code of Professional Etnics and Standards of Professional Appraisal Practice of the Appraisal Institute, Packet Pg.2585 0.3g Page, The Report is to he used in whole and not in part. No part of the Report shall be used In conjunction with any rather analyses In our opinion this report meets ail Me requirements of valuation as defined in Lt PAP with the Intended Use of the repod serving as a valuation E he report presents limited discussions at the data, reasoning, and analyses used in the appraisal process to develop the appraiser's opinion of value It may not be understood without addidonai information in the appraiser's work f+le. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated in the following pages. N Exposure Tinsel tarketin rind C Lased on exposure times of comparable sales and interviews with active participants in the local market the m Market Value opinion could be achieved with an exposure time of twelve months, Furthermore, it is Our oprnron Ihat a sa:e could be consurnnt-iated at the Market Value opinion within a bdrelve-month marketing period of true effective date of appraisal. r Our firm appreciates the opportunity to have performed this appraisal assignment on your behalf. If we may be Mn CL of further service, please contact us. Ca Respectfully submitted, M PE Valuation, Services � n `. w 0 Mr. Mick Stiksma, MAI, MRlCS Mn M ert Geri RZ990 'CL - Managing Partner CL CRE Valuation Services N 9 a N a N r C 0 E U r r Q Packet Pg.2586 TABLE OF CONTENTS SUBJECT PHOTOGRAPHS '.--_-... ................ ....'-_ ........................ ...~..........-.,..~..~.~ I SUMMARY OF SALIENT FACTS.......~..............~............... ........................_..... ......... ....__ 2 CERTIFICATION ... .. ... ............. ......~.....^......~.................. ........,.....~ .............. ............. 3 1NTRO[>UCTkON .... .................~............................................................................_^...~~.^~~^.4 APPRAISAL PROCESS. ........................................... .......... ....... .... ..... ...~_..-~.~_._.._-,.~'7 � m INCOME CAPITALIZATION APPROACH............................. .—...............~..~...~.........^~.......0 -o � ASSUMPTIONS AND LIMITING CONDITIONS ...... ....... ....... ........ .,......~...~...,..,...~~.. .... 12 EXHIBITS.....—.................'._.._.- ........ ...... _.......—_..—__...-..—..,..~..—~.---.-..... is -� � CL U. za � � � � 0 CL CL It 04 04 C RE 87477860�2 0.3g SUBJECT 1h, Riga' �1 �s g . m 1 , 1�t J"T Vi, � t { r k 5 $\ t d 1L� I,F; � ... r CL �myq ( S LW ���liS, d✓ t _ m U. Aerial of Subject property m �Z t Ii s t l a t } 4 u1 i� t ltl 1 T* m f�4 CL CL 9 04 Nr, L F E U r r View of Entrance of Subject CEDE 87477860 Packet Pg.2588 O.3g SALIENTSUMMARY OF T Subject; 3103 Overseas Highway Marathon, FL 33050 Intended Use of the Appraisal: Conclude to the Market Value" s Is"April 29, 2020 Interest Valued: Fee Simpte M Intended User of the Deport The intended user of this report is Baptist Health Enterprises y Bate.. of Value: T „As is"; April 29, 2020 Date of Report: April 29, 2020 Market Value Conclusion'. As Is (income Capitalization Approach) t;1 480,000 y r CL Estimated Exposure Period 12 months Estimated Marketing Period: 12 Months y M y '. z M J 0 Mn E CL CL N 9 a N a N r E U r r Q Packet Pg.2589 O.3g CERTIFICATION t certify that to the best of my knowledge and belief. — The statements of fact contained in this report are true and correct. The reported analyses opinions, and conclusions are limited only by the reported assumptions and bruiting conditions and are my personal, impartial, and unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this repoil and no personal interest with respect to the parties involved. I have performed no services as an appraiser or in any other capacity, regarding the property that.is 2 the subject of this report within the three-year period immediately preceding acceptance of this assignment. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignrnerrt. My engagement it this assignment was not contingent capon developing or reporting predetermined r results. CL My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined 'value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subseclrent event directly M related to the intended use of this appraisal, My analyses, oprriions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Apprarsa;Practice. U. I have personally viewed the property that is the subject of this report. Tristan Stiksma, R124514„ provided significant real property appraisal assistance to the person 2:1 signing this certrficat on. E The reported analyses, opinions, and conclusions were developed, and this report has been J prepared, in conformity with the Code. of Professional Ethics and Standards of Professional Appraisal o Practice of the Appraisal institute. y The use of this report is subject to the requirements of the Appraisal Institute relating to reviews by its 2 CL duly authorized representatives. CL — As of the date of this report, I Mick Ctiksma, MAI, MRICC has completed the continuing education. program for Designated Members of the Appraisal Institute. It As of the date of this report, I Mick Stiksma MAI, MRICS has completed the Standards and Ethics Education Requirements for Candidates of the Appraisal' institute,. N r E cs " Mr Mick tiksrrra MAI, MRICC Cerl Gen RZ29191 C;Rr'~ 874778602 PAGE 3 Packet Pg.2590 0.3g INTRODUCTION General Site Description Assessor's Parcel Numbers 00102310-OOODDO (an allocated portion therot) Zoning, P -Public Improvements: 10,019 SF (Gross-Leasable Area) M 3 N Land (allocated), 65,658,25 SF (Land Square Feet)) Construction: Concrete Block � Year of Construction 1985 Condition; Good y r a M Subject Specific Highest and latest Lase: As if Vacont; Commercial Development s Improved Conversion to Commercial Development Mn U. Cur-rent Owner: Monroe County Florida za Sales History, Them has been no recent history within the past 3 years which the subject property was sold, The property was previously J appraised by our office with an effective date of October 10, o g17 with an indicated market value of 1 48r0,000, f Mn m Current Disposition ''e could find no evidence that the property is currently listed CL CL for sale or lease. N It a N a N r M U r r Q CRE 674771360 PAr;E- r: Packet Pg.2591 0.3g INTRODUCTION Location Description Located in Monroe County, which forms the southernmost portion of the continental USA, The islands lay along the Florida Straits, which divide the Atlartic Ocean and the Gulf of Mexico. Monroe County, makes up more than 95% of the land area and according the census data estimate from 2014, the total population of Monroe County is 77,136 persons, with a total land area of 137.3 square smiles.. Additionally, more pertinent to the subject property, within a five-mile radius, the population consists of roughly 8,600 individuals who on average are 52 years of age and incur,an estimated$53,000 of household C income annually. y The city features a mixture of residential and commercial components Altogether, the measures of T economic progress continue to point to growth in Conroe County. Accordingly, we are of the opinion that � 2 local industries and tourism and employment growth will continue to generate demand for the general : market and the subject property. r An CL w ca �.1}62Utltti��i�11�$t is rt '�)@ll1«�4f� t�u9 M Y444� i t Tt )ISt 'tt'' i U. M 0 � M CL it t F u j � k N E „„�� U r r Q CITE 874778 02 � PAGE 5 Packet Pg.2592 O.3,g INTRODUCTION Scope of Work We prepared this independent and impartiar appraisal of the property in conformance with the requirements of U P,AP The repW includes only the appraiser's conclusion and cannot be propery understood without reference to the appraiser's file, which is maintained within our work illy The level of detail and depth of the analysis is considered to tie commensurate with the complexity of the pr011 type and market �Ctnditjons. As parf of this assignment, various research and analysis was required. The agreed upon Scope of Work M included the following, y C 1 The property was viewed externally by the appraiser, This report was supplemented w ilh assessment � records and other public information where necessary, Some photos utilized from our previous assignment, 2 Data regarding the subject property, and comparable rentals In the market area were gathered and analyzed. r- Analyzed the site characteristics, building improvements surrounding land rases and supply and y demand to establish the, highest and best use CL Reconciled the results of this analysis into a Market Value "as Is" April 29, 2020 d Set forth all extraordinary assumptions and lirruting conditions that affect the analyses, opinion and conclusions, as stated in this report. 6 Providers a signed certification in accordance with Standards Rule 2-3 of USPAP � n '. Z M J 0 Mn M CL CL N It a N a N r C 0 U r r Q Cl-st= 874778602 PAGE 6 Packet Pg.2593 0.3g APPRAISAL Overview The three traditional approaches to valuing improved properties are, I. Sales Comparison Approach -a comparison of the property appraisers with reasonable similar, recently conveyed properties for which the price, terns and conditions of sale are known, 2. Incorne Approach - the processing of a projected net income into a valuation estin-rate via one or more capitalization techniques +� Cost Approach -an estinnate of the replacement cast of all structural improvements as it new, less loss 2 in value attributable to depreciation frorn all causes plus the value of the land as if vacant. Since this property would likely be operating as an income producing p,operty, the most credible methodology is to value the subject by way of an Income Approach, Erased on our analysis and knowledge of the subject property type and relevant investor profiles, it is our opinion that this approach would be y considered necessary and applicable for market participants. CL M y M n '. M J 0 Mn E CL CL N It N N r E M U r r Q Packet Pg.2594 0.3g CAPITALIZATIONINCOME Introduction The Income Capitalization Approach is a procedure in appraisal analysis whereby anticipated future economic benefits to be derived from a property are converted into a present value estimate through a capitalization process. This approach is based on the principle of anticipation and value is created by investor's expectations of benefits to be derived in the future:. The, process of estimating anticipated M economic benefits from a particular property therefore requires estimates of potential income and expenses, y and the selection of the most appropriate capitalization method. Discussion of Contract Rent The subject is currently a public building used as a library and has no contract rent and for this reason we : have chosen to use the market based data for valuation purposes. Discussion of Economic Beat - Comparable Rentals An Economic rent or the preference term, market rent, is defined as. 'The rental income that a property would most probably command in the open market; indicated by the current rents that are either paid or asked for comparable space as of the elate of the appraisal." y M The subject is comprised of a one story government building. To form a market rent opinion for the property, E we used rental data taken from the comparable market. VVe have considered the government building Mn (library)as a potential commercial building and have chosen comparables on that basis. ILL Summary of Comparable Rentals __ ... Rental Size Bldg Size Initial* J T riant/Locati n Nita (SF) ( Rent/SF 0 1 11400 Overseas t-twy t7 ,069 1. y 7 5701 Overseas Hwy _ 947 17,0 5 19,t�tl'' CL CL_® - -- 13369 t verseas Hwy 1.,800 1,800 $23.33 7999 Overseas O-tvvy 1.,152 2,496 '��1 '' 04. Subject 3103 Overseas Highway 10,0.19 10,01 N -- 04 r U r r Q CRE 674778602 PAGE Packet Pg.2595 0.3g Market Rental Analysis The building associated with the comparables summarized above are generally similar in terrris of their utilizations and constaiction. All of the comparables were smaller spares when compared with the ;subject and were adjusted downwards on that basis, since market participants typically pay a prerrriurri for smaller spaces on a per square foot basis No other significant adjustments were considered necessary. Potential Gross Rental Income CL The Potential Gross Income (PG]) is calculated by multiplying the market rertal rate of 519,50 by lire GL, of 10,019 SF to arrive at the PGl of$195,389 in C Vacancy Collection Loss The subject is a goveri-in ent building. Market reports show vacancy rates neap.: 7%for the Munroe County Office market. Even when vaC2nCy and collection loss is relatively love we must consider frictional vacancy which is the result of tenant turnover We have chosen to use 4 00% as an arr-tount reflective of the subject w- prooirty. r An CL Operating Expense Analysis Ca The subject market leases are typically based on a triple net basis, with the tenantlowner having responsibilities for paying or reimbursing real estate taxes, common area/maintenance and insurance M premiums For the purposes of this report., we have subtracted the incurred expenses and included a reimbursable line stern lc reflect the payment of the expenses by the tenant. This Sledion of the report Mn analyzes the cast of operation for the subject property. LL In estirrratrng the operating expenses for the, sub,ort property, we have utilized industry standards and comparable data of similar properties in our company data base The subject property is similar to other E , buildings in the object market area in its construction and economic basis, and thus the comparable J information presented is considered to reflect similar operating characteristc:s which are observed at the o subject. y E CL A discussion of each of the expense categories is as follows: CL I Estimated Real Estate Taxes, Based on actual county data real estate !axes if, it were not a pubik building would be estimated at$15,036 (/SF). (note. derived basest; on allocated portion of taxes) N a N 2. Insurance: The subject is insured against casualty loss with additional coverage For properly liability, The Year One insurance expense was estimated at $20,038 Such is supported within the range of data 55 experienced by similar property owners, U r r 3 Common Area Maintenance` properties typically have: a CAM charge in order to provide for routine maintenance of the landscaping, parl,ong lot repair, cleaning, and other r[erns associated with maintaining the subject wriparovenierrts Improvements are considered to be in good to good condition, once completed, therefore a common area maintenance factor of$3.0O,world be considered reasonable. 4. Management tree The management expense has been calculated as 5.3%of Ertel,which is reasonable for a properly of this size type, and condition. CRE87 77�602 l «C[ Packet Pg.2596 O.3g Structural Reserves. This account accrues fronds for the eventual repair and replacernent cf building components that are not included In the CAM charge. Such charges typically include capital expenditures for roof replacement and other miscellaneous expenditures necessary to ,maintain the integrity of the structural shell. Based upon our experience with similar properties to the existing subject, we have eStirrrated structural reserves for the subject property at p5 009 in Year One of Our analysis. Net Operating Income Operating expense estimates, including real estate taxes, insurance, common area maintenance, management, were analyzed in the preceding section, As the lease structure of the Subject is a triple net +� basis with the tenant responsible for taxes, insurance, and GAM these expenses have been included as a reimbursements. The NOI has been calculated using the Direct Capitali7ation and included on the following pages, Reconstructed tin Statement PSF Total C. Gross Potential Income $1 .50 $1 5, 8 M Less: Vacancy @ 4 00% $ ,78 $7, 16 .� y Effective Gross Incorne $ 5� 2 $ 5 ,70 � Less: ExpensesU. y Real Estate Taxes $1.50 $1.5,036' A M $ .00 $30,i�56 �.. ..m_..._... M Insurance $ _ 0 $20, 8 _...._ ._...._._._ _�pi_____ J Management ment @ 5.3% $f. 5 $ 3,500 o Structural Reserves $G.Sol $S,00 y Total Expenses $85 $8 ,6 2 CL Net Operating Income $156 87 $16 ,06 N Capitalization Technique N Direct Capitalization aprtalization is the 'process of converting a net incorne stream into an indication of value.. This approach to valuation can be accomplished 1 l by dividing a single year's net operating incorne by an appropriate overall capitalization rate i.e., Direct Capitalization or 2)by discounting to present value a net income stream r and property reversion over a projected holding period i.e., Discounted Cush Flow Analysis. In this analysis, we have chosen to use the Direct Capitalization Method as it is most used by market participants C o tar reports that Monroe County Medical and Office market of experiencing capital over a -year average, Based upon current demand for similar loused properties and considering the ,w. indications front our survey data a cap tal zatican rate �l.g °l� was reccrr,ciled fir the subiect property, Although we have not specifically addressed the impact of t� Via' � °i�i unreasonable that this has placed some upward pressure on market capitalization rates. This concluded rate is considered reasonable relative to the fee simple property rights, age and location of the subject and tempered by the nature of the CRE 477860 - PAGE 10 Fhia is the highest capitalization rate I've seen on appraisals In Marthon. Iln their appraisal of 2855 they UseCJ_A15&et0jpQ259 redUces the valuation at the property 0.3g operations Applying this rate to they subjects projected annual net operating incorne based can market rents results in tho following value indication Via the fincorne Capitalization Approach. I the m capitalization rate Used or th property al °i 5 I IncomeCapitalization Approach Used Aare. t:h '°IIC did to N l/R Indl ated Yalu e#IE I t, rti r li i°.° .'I c f $l69,064 / 8.25%$2,049,263 Allowing that the conversion onCL Less o,tiversion r l sts of .: M cost are correct, v lUe �r OUlc � _� �.... 1-- � ��. a,�. U) y Income Capitalization Approach Conclusion The Direct Capitalization technique indicated a valve of $2,000,000 for the sutratect at an overall capitalization rate of 8. 5% However, as this is a special use property that Is currently a library and our highest and best use is to convert its current use to a commercial development, we must subtract the estimated cost.of conversion and the estimated lease up costs.To,estimate the cast of conversion, we have n r used third party data sources to establish a reasonable base cost to apply to the overall square footage ' with respect to the anticipated renovations and upgrades to allow use as a multitenant commercial building.. ca sUMMary of Caur calculations is in the chart below. M Estimated Cost to Convert Literary to Multitenant commercial Building Mn uantaty Unit /U ni t u. Ot RECT COSTS Mein Building 10019 `P $3oxxj 5300,554 Si cwa+l'c.CasG . , 51 ..l ........_.w... ...._.m .._..�...._..... .... ._ "1`OTF�.t,DIRECTCOSTS $330,220 J TOTAL INDIRECT COSTS S33,022 0 ,CONSTRUCTION COSTS $ 63,242 � En,trepronuerial Profit 1Cl.C)�%t $36,3 4 Mn _ w. M REPLACEMENT COST NE01 399,5156 CL ROUNDED $ I CL N In add(dion we must subtract the reasonable lease up costs to take the property from a library to a stabilized rrlultitenant commercial building We have estimated rent loss at approximately six months or $97,695, leasing commission and marketing expenses at $29 308 for a combined expense total of S127,000 rounded. � E U Therefore, our market value: for the subject property is simply the indicated value by the income approach which was $2,000,000 less this: cost to convert the literary to a nlultiterlant cornrnerc al building estimated at $400,000 and the estimated lease up costs of$1 7,00 . This results in a rounded market value an an `as is" basis of$1,480,,000, ORE 11974778602 PAGE -11 Packet Pg.2598 0.3g ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report has been made with 11ne fallowing general assumptions: 1. Any legal description or plats reported herein are assumed to he accurate. Any sketches, surveys plus, photographs, drawings or other exhibits are included only to assist the intended user to better understand and visualize the subject p,iroperty, the environs and the competitive data.. We have tirade no survey of the property and assume no responsibility in connection with such matters. � a, The appraiser has not conducted any engineering or architectural 4rrrveys in connection with this appraisalM assignment, information reported pertaining to dimensions. sues, and areas is either based on measurements N taken by the appraiser of,the:appraiser's staff or was obtained oar taken from referenced sources and is considered reliable No responsibility is assumed fray the coasts of preparation our for arranging: geotechnical engineering, � architectural or other types of studies,surveys,or Inspections that require the expertise of a qualified professional. ?. No responsibility is assumed for matters legal in nature. Title is assumed to be good and marketable and in fee M .. simple unless ofherwi,se stated in the report. The property is considered to be free and clear, of existing hens, easements restrictions, and encumbrances, except as stated', Unless otherwise stated herein it is assumed there are no encroachments or violations of any zoning or other regulations affecting the subject property and the utilization of the laird and trrrprovements is within the boundaries or property lines of the property described and that there are no trespasses or encroachments. 5. CRE Valuation Services assurnes there are no private deed restrictions affecting the property which would limit C the use of the subject paropeny in any Way. 0. It is a-ssuiraed the subject property is not adversely affected by the potential of floods, unless otherwise stated N herein, M ;`. it is assumed all water and sewer facilities (existing and proposed) are or will be in good'Working order and are or will be of sufficient size to adequately serve any proposed buildings. 8. Unless otherwise stated within the report, the depiction of the physical condition of the improvements described N ILL herein is based on visual inspection. No liability is assumed for the soundness of structural members since no engineering tests were conducted No liability is assumed for the condition of mechanical equipment, plumbing or electrical components, as complete tests were not made No responsibility is assumed for hidden, unapparerit of- masked property conditions or characteristics that were not clearly apparent during our,inspection, � g. if building improvements are present on the sits no significant evidence of termite carnage or infestation was . observea during our physical inspection unless sr stated in the report o termite inspection report was available, - unless so stated in the report No responsibility is assumed for hidden damages or infestation O 10 Any proposed or incomplete improvements included in this report are assumed to he satisfactorily completed in a N worhrtianike manner or will be thus completed within a reasonable length of time according to plans and, 2 specifications submitted. CL CL '11 No responsibility is assumed for hidden defects or for conformity to specific governmenfat requirements, such as rare, building, safety, earthquzike or occupancy codes except where specific professional or rgovernmental' inspections have been completed and reported in the appraisal report, It 12 Responsible ownership and competent property management are assumed_ N 13 The appraisers assume no responsibility for any changes in economic or physical conditions which occur following the effective date of value within this report that worild influence or potentially affect the analyses. opinions, or conclusions in the report.Any subsequent&ranges are beyond the scope of the report. � 14 The value estimates reported herein apply to the entire property.Any proration or division,of the tonal into fractional interests will invalidate the value estimates, unless Sikh proration of,division of interests is set faith in the report. es M 15 Any division of the land and improvement values estimated herein is applicable only under tine program of utilization shown These separate valuations are invalidated by any lather application, 16, Unless otherwise stated irr the repora only the real property is considered so noconsideration is given to the value of personal property or equipment located on, the premises or foe posts or rncvirag or relocating stash personal properly or egtaipMent 17. Unless otherwise stated it is assumed that there are no subsurface oil gas or outer mineral deposits or subsurface r'ighis of value involved it this appraisal, whether traoay are gas, liquid, or solid. Nor are the rights associated with extraction or exploration of such elements considered, unless otherwise stated, unless otherwise stated it is also assumed that therm are no air or development rights of value that may be transferred, t:FEE fi`4778 0 1-"AGE't Packet Pg.2599 O.3g 18_ Any protections of incorne and expenses, °riclud'ingr tiro reversion at trace of resale,are not predictions of the future;. Rather they are our best est rnate of current market thinking of what fixture trends will be. No warranty or veprese-nation is made thef these projections will materialize. The real estate market is constantly flucluating and changing 11 is not the task of an appraiser to estimate fine conditions of a future real estate market but rather to rettect what the investment community envisions for,the future in terms of expectations of growth in rental rates, expenses and supply and dertnanrd.The forecasts projections,of,operating estimates contained herein are teased' on current market conditions anticipated short-term supply and demand factors,and a continued stable economy, °rli forecasts are,therefore, subject to changes will i future conditions. 19. Unless subsoil opinions based capon engineering cove borings were furnished, if is assumed there are no subsoil defects present,which would impair development of the land to its maxirnurn permitted use or woiuld render it moire M or less valuable, No responsibility is assumed for such conditions or to( engineering which may be required to in discover them, $ 20, GRE Valuation Services representatives are not experts in determining the presence or absence of hazardous � substances, defined as all havardaus or toxic: materials wastes, pollutants or rcontaminarris (including, but not limited to asbestos PCB, UEFI, for other rave materials Of Chemicals) used in construction or otherwise present on � the property, We assume no responsibility for the studies or,analyses which would be required to determine the Presence OF absence of such substances or for lass as a result of the presence of such substances Appraisers are not qualified to detect such substances The client is urged to rekaln are expel in this field, F- 21. VV'e are not experts in determining the t-mbitat for proiecied or endangered species including, but not limited ao, animal or plant life(such as bald eagles gophers tortoises,Oc.) that may be present on the property We assume N no responsibility for the studies or analyses which would be required to determine the presence or absence of such species or for loss as a result of the presence of such species, The appraiser hereby reserves the right to ;Ater, C artiend, revise, or rescind any of the value opinions based upon any subsequent endangered species impact Ca studies, research, and irivestigatirari that May be prrovirded. 22. No environmental impact studies were either requested or made In conjunction with this analysis The appraiser a hereby reserves the right to alter amend, revise or rescind any of the value opinions based upon any subsequent environmental impact studies, research,and investigation that may be provided. � 23. The appraisal is based on the premise that there is full compliance with all applicable federal, state, and local N environmental regulations and laws unless otherwise stated In the report flurther, that all applicable 2 onirrg, u. building and use regulations and restrictions of all types have been complied with unless otherwise stated in the report, further, It is assumed that all required licenses, consents, permits or other legislative or administrative authority, local, state federal and/or private entity or organization nave been or can be obtained of renewed for M any use considered in the value estimate. 24. Neither all nor any part of the contents o1 this report or copy thereof, strall be conveyed to the public through J advertising public relations news sales,or any Bather media, without the parlor written consent and approval of the o appraisers This limitation pertains to any vaivation conclusions the identity of the analyst or the firm and any f reference to the professional organization of which the appraiser is affiliated or to the designations thereof. Mn M 25, Although the:appraiser has inane, insofar as is practical every effort to verify as tactual and true all information and data set forth in this report, no responsibility is assumed for the accuracy of any information furnished the CL appraiser either by the client or others It for any reason, future investigations Should prove any data to be In substantial variance with that presented in this report, the appraiser i eserves the right to alter or change any Dr all eIvI analyses opinions or conclusions and/or estimates of valoe.. It 26 If this report has been prepared in a so-culled"public non-disclosure"state,real estate sates prices and Other dada, 04 such as rents, prices, and financing., are not a matter of public record. If this is such a "non-disclosure state, 04 although extensive effort has been expended to verify pertinent data with buyer,,sellers,brokers,lenders,lessors, lessees, and other sources considered reliable it has not always been possible to independently verify all � s rdnif-ant farts In ttraese instances, lire appraiser may have relied on verification obtained and reported by appraisers outside of our office. Also, as necessary, assumptions and adlustrrrenis have been made based on � comparisons and analyses using data in the report and on infervievws with market participants, The Information furnished by others is believed to be reliable, but no warranty is given for its accuracy. 27, The Anneric.a;n Disabilities Act (ADA) became effective January 26 1992. The appraiser has not made a specific compliance surrey or analysis of the property to determine whether or not it is in conformity with the various detailed requirements of ADA. It is possible that a compliance survey of the properly and a, detailed analysis of the requirements of the ADA would reveal that the property is not in compliance with one,or more of the requirements of the act. If sea, this fart could have a negative impact upon the value of the property Since the appraiser has no direct evidence relating to this issue. possible noncompliance with the,,requirements of ADA was not ronsidered in esiuuating the value of the property. 28, This appraisal report has been prepared for the Pxclusve benefit of the client. It may not be used or relied upon by any other party. Any rather party wilco is not the identified client within this report who uses or reties upon any information in this report does so at their sawn risk CRE 87477 PAGE 13 Packet Pg.2600 0.3g 29, 'rhe dollar amount of any valise opinion herein rendered is based upon the purchasing power and price of the United States Dollar as of the effective date of value This appraisal is cased on market conditions existing as of the date of this appraisal. 30, f-he right is reserved by the appraiser to make adits to the analyses, opinions, and conclusions set forth in this report as may he required by consideration of additional or more reliable data that may become available, No change of this report shall be made by anyone other than the appraiser or appraisers. The appraiser(s)shall have no responsibility for any unauthonced charge(s) to the report. 31. If the client instructions to the appraiser were to inspect only the exterior of the improvements in the appraisal process the physical attributes of the property were observed from the streets) as of the Inspection date of the CL appraisal. Physical characteristics of the property were obtained from tax assessment records, available plans if M any,descriptive information,and interviewing the client and rather knowledgeable persons,It is assumed the interior' y of the subject property is consistent with the exterior conditions as observed and that rather information relied upon -a is accurate. C 32. The subMiSs on of this reoorl constitutes completion of the services authorized It is submitted can the condition the client will provide reasonable notice and custornary compensation including experl witness fees, relating to any M subsequent required attendance at conferences, depositions, and judicial or administrative proceedings In the _ event the appraiser is subpoenaed for either an appearance or a request to produce documents,a best effort will be m@de to notify the client immediately. 1-he Client has the solve responsibility for obtaining a protective order,providing legal instructrcn not to appear with the appraisal report and related work files and will answer all questions pertaining to the assignment thie preparation of the report and the reasoning used to formulate the estimate of N value,Unless paid in whale or in part by the party issuing the subpoena or by another party of interest in the matter, the client is responsible r"or all unpaid fees resulting from the appearance or production of docurnents regardless C of who orders the work. Ca 33. Use of this appraisal report constitutes acknowledgement and acceptance of the general assu€rtp6ons and limiting N conditions,special assumptions(if any), extraordinary assumptions tit any) and hypothetical conditions(if any)on C which this estimate of rriarki:t value is bared. E N `. z M J w 0 Mn M 1_ CL CL N 9 a N a N r C 0 M cs r r Q Packet Pg.2601 EXHIBITS SUBJECT PHOTOGRAPHS (FROM PREVIOUS APPRAISAL) .. ................a SURVEY OF ALLOCATED LOT ...... ...... i PROFESSIONAL QUALIFICATIONS...... ...... ...... ...... M a m (n T CL m m E T U. >1 za 2:1 m 0 Mn m CL CL N It 9 a 04 a 04 r- 0 E u CRE 874 PAGE 15 Packet Pg.2602 0.3;g m 3 y m r T r a m y m An SUBJECT PHOTOGRAPHS (FROM PREVIous APPRAISAL) >1 za LL J 0 Mn E a a Q N 9 a N a N r r- 0 E u r r Q 874778602 TA c Packet Pg.2603 O.3g m 3 y C {MltllA� '�i 1�1'l . rft�tjflit;� i� r �tm 11t ss{{{�i�23j tjY �(tiYt fi}�� } t1 h �F1; 4G �,�t '\ � tip' l (y Dt { CL Mn t U. t ti m p CL CL N Subject Exterior N r C 0 U r r Q 874778602 'nB B Packet Pg.2604 O.3g m 3 y CL {i�{ 1(sS 1k ,i{§i fr;f\�S �te�k '{i�1 t4l kit rs 14}rk tj skks _ — offi r y r --_ m GMn U. m S a act k � kk � �i� ,,1 •IR' � - `9SL P�{i � 4�� •� C. CL SUBJECT f04 I04 r r- 0 E U r r Q 874778602 TAB C Packet Pg.2605 O.3g m 3 y C. m U. 1 Mn z m CL CL SUBJECT INTERIOR a 04 r r- 0 u r r 874778602 AB Packet Pg.2606 O.3g m 3 y r y i% CL m U E v i G Ltr N CL 9 a INTERIOR OF SUBJECT a 04 04 E u r r Q B74778602 CAu E Packet Pg.2607 O.3g m 3 y CL 4 5 °� � t4 E e , N_ LL J w lC i CL CL Q CA N 9 SUBJECTREAR OF a N r Ca 0 E U r r Q 874778602 TAB F Packet Pg.2608 m 3 y CL fC lava �« m E 6 s i1{�,, U. - lY� � i tyti sih r, O Mn m CL CL SIDE VIEW OF SUBJECT PROPERTY a ' ds N N a N r r- 0 E is r r Q 874778602 "FAB t Packet Pg.2609 O.3g m 3 y ri y i tart it S{t t t sin i t 1 ( itt t x� j r r {�-� i Js t t i{ �j,it�i� �A ttt tit t��s}(4�t' Mn i CL i m YI' E U. ��'i idl 11 7+ f O u T m CL CL r i 1�:1} -_ _� GV a NORTH-BoUND STREET OF SUBJECT a 04 04 Ca E U r r Q ��ewM 874778602 TAB H Packet Pg.2610 0.3g m 3 y {� 1 , r a { sl Ii� r 1Sslf S{1}14sts s is SS34s�t �ir It{ssii F' N t � CL ry/my9 S m t U. w O Mn 4 m CZ CL 1 x` SOUTH-BOUND VIEW OF SUBJECT a Ca 0 E U r r Q Packet Pg.2611 O.3;g m 3 y m r T r a m y m n '. SURVEY OF ALLOCATED LOTz m J 0 Mn E a a Q N It a N a N r r- 0 E u r r Q 87 77 60 '1ASJ Packet Pg.2612 0.3,g oo fC4F e ..r Ld i Pbi WdSAIrp',s CL Pe a i�ii C s S k 44 it k vo" 4 K A d !, .p r 1 a+ CL tl :aa Ye !i i krif " f4 r E id, ,i Rr2 Emu- f4 In h� 0 ax w w .. m i um i W CL CL 4 c� r P`Ut y 4� E J i Top portion of allocated lot 874778602 TAB i Packet Pg.2613 0.3g tot G sA"m �) t£1 Y� i���� ;££ Win— son, ) � U INCOME,ja3 ���� ������`}�i £ 11t � }-Sr old t Q ) bit r») S �1.Jet a ' ) � { i t 1 f�ti t`YJ1t 1j� £�� t�t1 Cyr s )' '- t a N 4�t� 1 �£aP) �t£ £ 4� m\� i» cc f £�s��)'�' tit�)'� '�� 1� Ii t 't�� `£lit, low =k` tip z fC r { ����j�f�1 � i��£4£sq�i�;s 1) £S�fir) �V i•��. ( Ui5112 s t��r t��f� ££���£r)Pt 4i))����� l N y. '}$ r4'eY 'k PP l; )1��£•S�1 �� ) ) LL. .t�f��y�� M c »t ;) �1�F )E4b� � �sU h � )c s �... 1 1�t� .� 4 £j NO 0�1) )'\tt Y ) w��YSR,ii \0 soon, f4 ,£ ��' £) {f ( ) .a{#y-t 'cs v ££1111 i� a )�)� ita �) sr� 2££t T ) d {���.� �1 S 1 n ) ) )(� r-c=v,c'�"'� w..s• �) f�C m r 4011�� a ` I)£ 4 £s�'rc CL GSA t u , 5 �y£f �15 1 t��, CZ awl 3+a e,�r e r� ran � a € .� ��.x,.o.�,•: p���U £ ' �z�ri ��a�,r)� 1� ���(�;. � r`,� tl ) t,ay : r {'LOWDA Kh �� _ U U=.� r� a ,.`r�w a — M LAND SURVEVNG OF, £ �,a .� _ . Bottom portion of Allocated Lot 87477 02 TAB L , Packet Pg.2614 O.3g m 3 y m r T r a m y m n '. .a PROFESSIONAL m J 0 Mn E a a Q N It a N a N r r- 0 E u 714-riS602 TAB,"A r Q Packet Pg.26175 0.3g �V 1 s fA _0 a C � ac Mick Stiksma, MA, , MRICS C. Managing Director - Valuation Services m m C m E a Mn U. �» za - m m �. 0 f Mn m C. CL 9 a N a N r C 0 u a r r Q 874778602 - TAB N Packet Pg.2616 0.3h NEW APPRAISAL OF A PREVIOUS IO E MEDICAL OFFICE BUILDING 2855 OVERSEAS IGH MARATHON, FL 33050 M 3 y CRE FILE o: 642530569A � VENDOR NUMBER 46825 PURCHASE ORDER NUMBER 0000372569 IN A RESTRICTED E APPRAISAL REPORT T r CL M FORy M E BAPTIST HEALTH ENTERPRISES LL CAROLINA BARKET za MANAGER OF REAL ESTATE TRANSACTIONS LO co 8500 SW 117 AVENUE ROAD, SUITE 4- 101 IAA I, FL 33183 0 T M �f C. CL �l l VALUATION LO 111CRES r;I �� �. ,a»�ES Date of Valuation "As Is".- April 2 , 2,020 a N Date of tort: U By CRE VALUATION SERVICES 9655 SOUTH DIXIE HIGHWAY SUITE 302 MIAMI, Fl- 33156 Packet Pg.2617 0.3h t� V" u rY ,r 1�=�N ENCRESepternber 15, 90 fj Carolina Pantin Barke't Baptist Health Enterprises 8500 1N 117 Avenue Road, Sate 101 Miami, FL 33183 M 3 N CRE File No- 642530569A � Appraisal of a Medical Office Building located at 2855 Overseas Highway � Marathon FL 33050 iv"k+e previously appraised the subject property with are effective date of July 20, 2017 which had an indicated market rent value of$18.00 per SF, subsequently we conducted an estimate of market valrie with an effective y date of October 03, 2018 which had an indicated market rent value of $21.00 per SF resulting in are overall CL market value of 1,600,000. We have performed this new appraisal of a previous assignment on the above referenced property, the conclusions of which are set forth in the attached Restricted Use Report The tyre of y value sought in our appraisal of the sr.rbject was an as is" Market Value opinion for the fee simple interest in a M Medical Office Building unit as of April 29: 2020 subject to the extraordinary assumptions and limiting conditions E cited in the attached report. An U. The intended user of this report is for Baptist Health Enterprises The intended use of this appraisal is for assistance in portfolio valuation by the client Baptist Health Enterprises. LO a N The subject property is a Medical Office Building that was originally built in 1972,with upgrades and renovations b over the yearSr The building has a Gross Leasable Area (GLA) of 5,832 SF,with a land to building ratio of 1 87 y Moreover, the subject property is on a 0.34-acre parcel of land that is zoned for Mired Use by the city of CL Marathon. CL M In view of the following facts and data in conjunction with [his appraisal ill is our opinion that the as is" Market Value of the fee simple interest of the subject property as of April 29, 2020, subject to the eXtraord€nary assumptions and lir-iiih g conditions, was: 04 N Extraordinary Assumptions and Hypothetical Conditions None. U r r The undersigned analyses, opinions and conclusions were developed, and this report has been prepared, iri conformity with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and the requirements of the Code of Professional Ethics and Standards of Professional Apl'.l Practice of the Appraisal Institute. Packet Pg.2618 0.3h Page 2 The Report is to be used in whole and not in part. No part ref the Report shall be used in conjunction with any other analyses In Our opinion, this report meets all the requirements of a valuation, as defined in USPAP with the Intended Use of the report serving as a valuation. The report presents limited discussions of the data, reasoning and analyses used in the appraisal process to develop the appraiser's opinion of value It may net be understood without additional information in the appraiser's work file. The depth of discussion contained in CL this report is specific to the needs of the client and for the intended use staters in the following pages. (n E, p sure TimetMarketing Period C Based on exposure tunes of comparable sales and interviews with active participants in the Racal market, the Market Value opinion could be achieved with an exposure tirne of twelve months, Furthermore, it is our opinion that a sale could be consummated at the Market Value opinion within a tvvelve month marketing period of the effective date of aprraisal. H- r Our firm appreciates the opportunity to have performed this appraisal assignment on your behalf, If we may be Mn CL of further service please contact us. Respectfully submitted, M C E Valuation Services � T f U. r` LO CO CO �5` N O Mn Mr Mick Stiksma, f'' AI MRI S M CL Cent Gen RZ990 CL M Managing Partner 2 RE Valuation Services LO r 9 a N a N r C 0 E U r r Q Packet Pg.2619 TABLE OF CONTENTS SUBJECT PHOTOGRAPHS .........._ ...... -_................~..---.~~.........~...... ....... .....~ ....1 SUMMARY OF SALIENT FACTS.............................................. -..----._.—....-,.~~.~................ 2 CERTIFICATION ......,....... ...... ............... ..... ................,................~...~.......^~........ ............. 3 INTRODUCTION ......,..................................... .........................^..~~~~~.~..~.^..~.~.~....................4 CL x�PPRA|SALPROCESS'___-_—._.--_--___.._.._--.-._.,~.—..~'.—..—...---.--..7 � � INCOME CAPITALIZATION APPROACH--.—_--.~..~~..~',~~.~.^.'.^.,~...~...~ .................'.........8 -o ASSUMPTIONS AND LIMITING CONDITIONS ...-...~~.^...............~...~~.—...........—........ .... 12 — EXH|ByTS._~._._~.- .......-_-.-...~...... ............. —...~..~__-- ........ ....~......~~.—...__...- 15 c � CL U. za Lo Lo 00 04 � � � � Mn CL CL Lo 04 04 CRE64253Q5M9A 0.3h SUBJECT (2tQ'ht t tti� 1i � 4 c � w N a�Y h 1, z � i LYzt� t4 e. t I`fi' u CL m E N_ U. Aerial of Subject property za LO LO co N ail f(ss y {� N_ m 7}i�f�l�rt, C CL DIED 1ti�,�ijf m f4 LO AI N 04 E — a View of Entrance of Subject E 642530569A Packet Pg.2621 O.3h SUMMARY OF SALIENT FACTS 9udject: 2895 Overseas Highway Marathon, FL 33050 Intended Use of the Appraisal: Conclude to the Market Value "As Is" April 29, 2020 Interest Valued Leased Fee M Intended Laser of the Deport The intended user of th" s repot is Baptist Health Enterprises in Date of Value: T As Is", Aural 29 2020 M Date of report: September 15, 2020 Market t Value Concluslorn s is (Income Capitalization Approach) y r CL M Estimated Exposure Period: 12 months Estimated Marketing Period 12 Months y M T U. LO LO a N 4- 0 Mn M CL CL M 0 LO r 9 a N a N r E U r r Q Packet Pg.2622 0.3h CERTIFICATION I certify that, to the best of my knowledge and belief. The statements of fact contained in this report are true and correct. The reported analyses opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, irnpartral, and unbiased professional analyses, opinions, and conclusionsCL I have no present or prospective interest iri the property that is Me subject of this report and rio cersonal interest with respect to the parties involved'. (n I have performed no services as an appraiser or in any other capacity, regarding the property that is � the subject of this report within the three-year period immediately preceding acceptance of this assignment. M 1 have no bias with respect to the property that is the subject of this report Or to the parties involved with this assignment, �- My engagement in this assignment was not contingent upon developing or reporting predetermined r resultsCL y r - My compensation for completing this assignment is not contingent upon the development or reporting ca of a predetermined valise or direction in value that favors the cause of the client, the arriount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - My analyses, opinions and conclusions were developed, and this report has been prepared in � conformity with the Uniforrr'i Standards of Prcfe.ssacmaf Apprarsa Practice Mn I LL have personally viewed the property that is the subject of this report. Tristan Stilksma, R1245) 4, provided significant read property appraisal assistance to the, person L; LO signing this certification 00 04 The reported analyses„ opinions, and conclusions were developed. and this report has been o prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal @ Mn Practice of the Appraisal Institute M CL The use of this report is subject to the requirements of the Appraisal institute relating to review by its CL duly authorized representatives. 0) As of the date of this report, l Mink Stilksma, MAI, MIMICS has completed the continuing education LO r program for Designated Members of the Appraisal institute. As of the date of this report, I Pick Sli MAI, MRICS has completed the Standards and Ethics Education Requirements for Candidates of the Appraisal Institute. r U t Mr Mick Sfilk=ma MAll MRIC Cart Gen RZ2990 Packet Pg.2623 0.3h INTRODUCTION General Site Description Assessor's Parcel Numbers: 99321 7 0-0000 0 Zoning: Uixed Use Improvements: 5,832 SF (Gross-Leasable Area) CL M 3 y Land: 15,000 SF (Land Square Feet) Construction: Concrete Block M Year of Construction 197 H- Condition: Fair T CL Subject Specific Highest and Best Use. y As if Vacant: Commercial Building M As Improved Commercial Building E y Current Owner: Fishermans Hospital Inc U. Sales History:ry' The property was previously appraised by our office with an LO Za effective date of July 20, 2017 with an indicated market value LO 00 of$18,00 per SF. subsequently we conducted' an estimate of market value with an effective date of October 93 2018 which o had an indicated market rent value of$21 9t1 per SF resulting y In an overall market value of 1,600,000, M CL Now in an effort to provide a comparative analysis of c value conclusions over the past four gears e have Ln provided the following summary, Significant rental rate r increases occurred in the 14 months between our first rental rate conclusion and our secured. Rental rates: continued to rise until the advent of the global pandernic which has most recently had some downward pressure on rental rates. Thus, the current rental rate indication � has trended tack towards $21,00 per SF. Although there is scarce data to provide evidence of a downturn from the 5 pandemic it is reasonable to assume sorne downward pressure.We have reflected this in an upward adjustment of our current overall capitalization rate from our last estimate of market value. Thus,we believe that the 2018 estimate of value o 1,6 0, 0 and now having a current estimated market value of$1,450,000 is both credible and reasonable. Current D'Spo.sition: We could Brad no evidence that the property is currently listed for sale or lease. t R E 6 25305 PAGrz 4 Packet Pg.2624 0.3h INTRODUCTION Location Description Located In Monroe County, which forms the southernmost portion of the continental USA. The islands Iay along the Florida Straits, which divide the Atlantic Ocean and the Gulf of Mexico Monroe County makes up more than 5% of the land area and according the census data estimate from 2014 the total population of Monroe County is 77,136 persons; with a total land area of 137.3 square miles. Additionally, more pertinent to the subject property, within a five-mile radius, the population consists of roughly 8,800 individuals who on average are 52 years of age and incur, an estimated$53,000 of household a income annually. y The city features a mixture of residential and commercial components. Altogether, the measures of n economic progress continue to point to growth in Monroe County Accordingly, we are of the opinion that � local industries and tourism and employment growth will continue to generate demand For the general _ market and the subject property. r y r I CL 41 Mn ' U. LO LO 00 � f^ t k O M y � � M � l CL M '!� � �.hwh' n� N 4, �I,ttut � ',J �` U r CRE 64253 55 A PAGC 5 Packet Pg.2625 O.3h INTRODUCTION Scope of Work We prepared this independent and impartial appraisal of the property In conformance with the requiremenis of USPAP. The report includes only the appraiser's conclusion and cannot be properly understcod without reference to the appraiser's file, which is maintained within our work file, The level of detail and depth of the analysis is considered to be ccrnrnerrsrurate with the complexity of the property type and market conditions, As part of this assignment various research and analysis was required The agreed upon Scope of Work M included the following: in 1 The property was viewed externally by the appraiser. This report was supplemented with assessment n records and other public information where necessary. Some photos utilized from our previous assignment. Data regarding the subject property, and comparable rentals in the market area were gathered and analyzed,Analyzed the site characteristics, building improvements, surrounding land uses and supply and demand to establish, the highest and hest use. CL y r 4. Reconciled the results of this analysis into a Market Value"as is" April 29, 20K Set fOrlh all extraordinary assUrnptions and limiting conditions that affect the analyses, opinion and y conclusions, as stated in this report. C 6 Provided a signed certification in accordance with Standards Rule 3 of U PAP y '. Z LO LO 00 N 0 Mn M CL CL 0 LO r 9 N N r C 0 U r r Q Packet Pg.2626 0.3h APPRAISAL PROCESS Overview The three tradiwnal approaches to valuing improved properties are, 1. Sales Comparison Approach w a comparison of the property appraised with reasonable srrmitar, recently conveyed properties for which the price, terms and conditions of sale are. known. , Income Approach e Vie processing of a projected net income into a valuation estimate via one or more capitalization techniquesr y 3. Cost Approach _an estimate of the repl placement east of all structural improvements as if new. less loss � n value attributable to depreciation from all causes plus the value of the land as i,vacant. 0 Since this property would likely be operating as an income producing property, the most credible methodology is to value the subject by way of arr Income Approach, Based on our analysis and knowledge of the subject property type and relevant investor profiles, it is our opinion that this approach would be Mn considered necessary and applicable for market participants. CL M CID M An LL LO LO 00 N 4- 0 Mn M 1- CL CL 0 LO r 9 a N a N r E M U r r Q Packet Pg.2627 0.3h INCOME CAPITALIZATION Introduction The Income C2Pq2liZ2tion Approach is a procedure in appraisal analysis whereby anticipated future economic benefits to be derived from a property are converted into a present value estimate through a capitalization process. This approach is based on the principle of anticipation and 'value is created by investor's expectations of benefits to be derived in the future, The process of estirn2tiog anticipated economic benefits from a particular property therefore requires estimates of potential income and expenses, and the selection of the most appropriate capitalization method. Discussion of Contract Beat "v"u'e have not been provided a rem roll or lease and thus we have chosen to use the market based data for valuation purposes. Discussion f Economic Rent- Comparable Rentals y Economic rent or the preference term, market rent, is defined a "The rental income that a property would most probably command in the open market; indicated by the current rents that are either paid or asked for _ comparable space as of the date of the appraisal," ._ y The subject is comprised of a one story medical office building To form a market rent opinion for the property, we rased rental data taken trom the comparable market. We have considered the medical office space as a potential commercialbuilding and have chosen comparables on that basis. Mn'. LO LO Summary of Cornpar7able Rentals � naTenant/LocationRental Size Bldg Size _..Iniflal* , o 1 11400 Overseas Hwy 450 22,069 21.33 � 2 5701 Overseas Htr V 947 17,095 1.900 CL -- — --- -- M 3 13369 Overseas IMy 1,800 1.,800 23,33 2 4 7999 Overseas t-Awy 1,152: 2496 29.16 r ct 2855 Overseas Hi way 5,832 a ...�....... N a N r E M U r r Q ........ CRE 642530569A PAGE 8 Packet Pg.2628 0.3h Market Rental Analysis The building associated with the cornparables summarized above are ;generally similar in terries of thelt. utilizations and construction. All of the comparables were smaller spaces wrier compared with the subject and ,mere adjusted ctcaWnwards on that basis since market participants typically pay a premium for smaller spaces on a per:square taut basis Comparable 3 was much newer and thus a downward adjustment was applied on that basis No other significant adjustments were considered necessary. Potential Gross Rental Income _ _._. ., M The Potential Gross Income (i is calculated by multiplying the market rental rate(f �'1-00 by the Gl-,t ...., ..w.. .w of 5,8321 SF to arrive at the fa h of$122 4 7. � Vacancy llectt Loss amp ,e s� The subject Is a government building. Market reports-show vacancy rates F ai 3,7 rfor`the Munroe Goumy Office market Even when vacancy and collection loss is relatively low we must consider frictional vacancy which is the result of tenant turnover We have chosen to use 4.00% as an amount reflective of the.subject r property, CL y r M Operating Expense Analysis The subject market leases are typically based on a triple net basis, with the tenant/owner Laving responsibllitie;s for paying or reimbursing real estate taxes, common arearrnalntenance and insurance premiums, For the purposes of this report, we have subtracted the Incurred expenses and included a reimbursable line item to reflect the payment of the expenses by the tenant This section of the report LL analyzes the cast of operation for the subject property. za LO in estimating the operating experises for the subject property, we have utili,ed industry standards and OLOO 04 comparable data of similar properties in our company data base The subject property is similar to other o buildings in the Subject market area in Its construction and economic basis and thus the comparable y information presenter) is considered to reflect similar operating characteristics whicin are observed at the subject, C 2 discussion of each of the expense categories is as follows: r CD 1. Estimated heal Estate. Taxes used on actual county data, real estate taxes if It were nc4_ a publrt::' 04 building would be estjrrrated at$8,587 (!SF), 04 r Insurance The subaj,eut is insured against casualty loss with additional overage for property liability. The Year One insurance expense was estimated at $11,664. Such is supporter) within the range of data � experienced by similar property owners. 3, Common Area Maintenance properties typically have a CAM charge in order to provide for routine maintenance of the landscaping. parking lot repair, cleaning, and other items associated with maintaining the subject improvements Improvements are considered to be in good to goad c nditlon., once completed, therefore a common area maintenance factor of$3 00 would be considered reasonable. Management free The management expense has been calculates as 4 01 of EGI which is reasonable for a property of this size, type, and condition, Packet Pg.2629 O.3h . Structural Reserves: This account accrues funds for the eventual repair and replacement of building components that are not included in the CAM charge. Such charges typically include capital expenditures for roof replacement, and other miscellaneous expenditures necessary to maintain the integrity of the structural smell. Based upon our experience with similar properties to the existing subject we have estimated structural reserves for the subject property at $2,916, in Year One of our analysis, t Operating Income Operating expense estimates, including real estate taxes, insurance, common area maintenance, c management were analyzed in the preceding section, As the lease structure of the sub ect is a triple net y basis with the tenant responsible for taxes insurance, and CAM, these expenses have been included as reimbursements. The NOI has been calculated using the Direct Capitalization and included on the following pages, t— Reconstructed ratite Statement r '=, PSF TotalCL y r Gross Potential Income $71� 6 $122 4 7 Less. Vacancy @ 4.00% $03 4 $4, 99 m` Plus: Reimbursements $6,47 $37,747 M Effective Gross lrncome _�.$26.63 $155,334 E Less: ExpensesU. y Real Estate Taxes $1..47 $ ,5 7 .A K4 $ 00 $17,496 `n LO Insurance $ . lu=tt $11,664 00 04 Management 4. % $1... 6 $ 99 0 cr Structural Reserves $0,56 �$2,916 Mn M Total Expenses $R. 4 $46, 6 CL Net Operating lncame -- $1 . 0 $� P47� M - Ln r Capitalization Technique N Direct Capitalization Capitalization is the process of converting a net income stream into an indication of value, This approach to valL iatiorn can be accomplished 1) by dividing a single year's net operating income by an appropriate overall capitalization rate i.e., Direct Capitalization or )by discounting to pre ent value a net income stream U and property reversion over a projected holding period i,e , Discounted Cash Flow Analysis In this analysis, we have chosen to use the Direct Capitalization Method as it is most used by market participants. Costar reports that Monroe County Office market is experiencing capitalization rates pt�f fD °Tn over a a-year average, used upon current demand for ai,, t . ed properties and considering survey data a capitalization rate a, °!� was reconcil for the subject property. Although we have not specifically addressed the impact of the pandemic it is not unreasonable that this has placed some upward pressure on market cap talization rates. This concluded rate is considered reasonable relative to the fee simple property rights, age and location of the subject and tempered by the nature of the operations. CRE 642530569A PACE 10 Packet Pg.2630 0.3h Applying this rate to the Subject's projected annual net operating income fused on market rents results it the following value indication via the Income Capit21i=ion Approach, Inc me Capitalization Approach N M F- r An r CL M N M E N ILL LO LO 00 N w- O Mn M CL CL M 2 LO r 9 a N a N r E M is r r Q Packet Pg.2631 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report has been made with the following general assumptions. Ii Any legal description OF plats reported herein are assumed to be accurate. Any sketches, surveys. plats, photographs, drawings or nirwr exhibits are included only to assist the intended user to better understand and visualize the subject property, the environs, and the competitive data. We have made no survey of the property and assume no responsibility in connection with srac;h smatters, The appraiser has not conducted any eriglnoerrnCL g of- architectural surveys in connection with this appraisal assignment. Inforrn'tatrC7rr reported pertaining to dimensions sizes and areas is either based on meastarerrrents ug taken by the appraiser or the appraiser's staff rear was obtained of taken from referenced sources and is considered -a reliable No responsibility is assumed for the costs of preparation or for arranging geotechnical engineering„ � architectural, or other types Of studies,surveys,or inspections that require the expertise of a qualified professional, 1 No re-sponsibility is assumed for matters legal in nature Title is assumed to be gored and marketable and in fee � simple unless otherwise stated in the report. The property is considered to be free and clear of existing liens, easements, restrictions and encurnbrances, except as stated. 4 Unless Otherwise stated herein, it is assured there are no encrbachrrients or Violations of any zoning or other F- regulations affecting the subject property and the utilization of the land and improvements is within the boundaries or property Imes of the properly described and that there are no trespasses or encroachments, N 5. CRF Valuation Services assumes there are no private deed restrictions affecting Ill property which would linnit the use of the subject property in any way, ca d. It is assumed the subject property is riot adversely affected by the potential of floods; unless otherwise stated' herein N * It is assumed all water and sewer facilities(existing and proposed)are or will be in gored working order and area or E E wilt be of sufficient size to adequately serve any proposed buildings. 0) ff. Unless otherwise stated within the report,the depiction of the physical condition of the improvements described N herein is based on visual inspeclion. No liability is assumed for the soundness of structural mernbers since no ILL engineerincd tests were conducted, No liability is assurned for the condition of mechanical equipment plumbing or electrical components. as complete tests were not made No responsibility is assumed for hidden, unapparent or �; masked property conditions or characteristics that were not clearly apparent during our inspection. LO 00 tt. If building improvements are present on the site, no, significant evidence of termite damage or infestation was observed during our physical inspection unless so stated in the report. No termite inspection report was available, 0 confess so stated in the report. No responsibility is assurned for hidden cdarriages or infestation. N 10, Any proposed or incomplete improvements included in this report are assumed to be satisfactorily completed in a M workmanlike manner or will be thus completed within a reasonable length of tirrre according to plans and cL CL specifications submitted M 11. No responsibility is assumed tier hidden defects or for conformity to specific governmental requirements, sa.ach as fire, '- fire, building, safety, earthquake, or occupancy cartes except where specific professional or governmental inspections have been completed and reported in the appraisal ruporl. 12, Responsible Ownership and competent property management are assurned. 1 . The appraisers assume no responsibility for any changes in economic or physical conditions which occur fbIlowing the effective date of value within this report that would influence or potentially affect the analyses, opinions, or conclusions on the report Any Subsequent changes are beyond the scope of the report. � 14 The value estimates reported herein apply to the entire property.Any proration or division of the total into fractional interests will invalidate the value estimates, unless such proration or division of initerests is set forth in the report, U M 15, Any division of the land and improvement values estimated herein is applicable only under the program of utilization shown. Those separate valuations are invalidated by any other application. 16. Unless otherwise stated in,the report,only the real property is considered,so no consideration is given to the value of personal properly or equipment located or, the premises or the costs of moving or relocating such personal property or equipment. 7, Unless otherwise stated it is assumed that there are no subsurface oil,gas or rather mineral deposits or subsurface rights of value involver) in this appraisal, whether they are gas, liquid, or solid. C°Jor are the rights associated with extraction or explorations of such elements considered; unless otherwise stated. unless otherwise staked it is also assumed that]here are no air of development rights of value that may he transferred. Packet Pg.2632 18 Any projections of Income and expenses including the reversion at time of resale are not predictions of the future. Rather, they are our best estrraate of current market thinking of what future trends will be. No teaarranly or representation is trade that these projections will materialize. The real estate market is constantly fluctuating and changing. It is root the task of an appraiser to estimate the conditions of a future real estate market but rather to reflect what the investment community envisions for the fr.rture in terms of expectations of growth in rental rates, expenses, and supply and demand,The forecasts projections, or operating estimates contained herein are based on current market conditions, anticipated short-term supply and demand factors,and a continued stable.aconorny. These forecasts are,therefore, subject to changes with future conditions. lg. Unless subsoil opinions based upon engineering core borings were furnished, if is assumed there are no subsoil defects present which would impair developr°rient of the:land to its maxir-rrum permitted use or would render it more or less valuable No responsibility is assumed for such conditions or for engineering which may be required to discover there. N 2g. CRE Valuation Services representatives are not experts in determining the presence or absence of hazardous substances, defined as all hazardous or toxic materials, wastes pollutanis or contaminants (inciudinrg, but not T limited to,asbestos, PCB, UFFI or other raw materials or chemicals) used in construction or otherwise present on the property. We assume no responsibility for the studies or analyses which would be rffouired to determine the � presence or absence of such substances or for loss as a result of the presence of such substances Appraisers are not qualified to detect such substances. The client is urged to retain an expert in this field. 21. We are not.experts In determining the habitat:far protected or endangered species, including but not limited to, anirnal or plant life(such as bait)eagles, gophers, tortoises etc:)I that may be present on the property, We assume no responsibility for the studies or analyses which would be required to determine the presence or absence of such T species or for loss as a result of the presence of such species. The appraiser hereby reserves the right to alter, arnend revise, or rescind any of the value opinions based upon any subsequent endangered species impact studies research, and investigation that may be provided. 22 No environmental impact studies were either requested or made in c.onjunciion with this analysis. The appraiser hereby reserves the right to alter, amend revise, or rescind any of the value opinions based upon any subsequent. env(rorrrnental impact studies, research and investigation that may be provided. E 0) 23 The appraisal is based on the premise that !:here is full compliance with all applicable federal', state, and local y environmental regulations and laws unless otherwise stated in the report; further, that all applicabte zoning, `. building, and use regulations and restrictions of all types have been complied with unless otherwise stated in the report; further, it is assufnled that all required licenses, consents permits or other legislative or administrative authority local state, federal and/or private entity or organization have been or can be obtained or renewed for 10 any use considered in the value;e tirnate, N 24, Neither all nor any part of the contents of this report or copy thereof, shall be conveyed to the public through o advertising, public relations, clews sales or any other media,without the prior written consent and approval of the appraisers This lirnitation pertain to any valuation conclusions the identity of the analyst or the Firth and any MLn reference to the professional organization of which the appraiser is affiliated or to the designations thereof, M CL 25, .Although the appraiser has made, insofar as is practical, every effort to verify as factual and true all information C and data set forth its this report no responsibility Is assumed for the accuracy of any Information furnished the � appraiser either by the client or others if for any reason future: investigations should prove any data to be, in � substantial variance with that presenter)in this report the appraiser reserves the right to jitter or change any or all r analyses opinions, or conclusions and/or estimates of value. 26 If this report has been prepared in a so-called `public non-disclosure"stale real estate:sales prices and other data such as rents, prices, and financing, are not a matter of public: record. If this is such a 'nn-disclosure' state, although extensive effort has been expended to verify pertinent data with buyers,sellers, brokers,lenders,lessors, lessees and other sources considered reliable, it has riot always been possible to independently verify all � significant facts. in these instances, the appraiser may have relied' on verification obtained and reported by appraisers outside of our office Also, as necessary, assumptions and adjustments have been made based can � comparisons and analyses using data in the report and an interviews with market participants. The Information Furnished by others is believed to be reliable, but no warranty Is given for Its accuracy. 27. The American Disabilities Art (ADA) became effective;January 26 1992. The appraiser has not rnarde a specific compliance survey or analysis of the property to determine whether or not it as in conformity with the various detailed requirements of ADA. It is possible that a compliance survey of the property and a detailed analysis of the reguiremenis of the ADA would reveal that the property is not in compliance with one or more of the requirements of the act If so this Fact could have a negative impact upon the value of the property mince the appraiser has no direct evidence relating to this issue,passible:noncompliance with the requirements of ADA was not considered in estimating the value of the property. 28, This appraisal report has been prepared for the exclusive benefit of the client it may not be used or relied upon tsy any outer party. Any other party who is not the identified client within this report who uses or relles capon any information in this report,dries so at their own risk- CRE 642530569A PAGE 1; Packet Pg.2633 O.3h 29. The dollar amount of any value opinion herein reordered is based upon the purchasing power and price of the United States Dollar as of the effective state of value This appraisal is based on rnarket conditions existing as of the date of this appraisal. :30. The right is reserved by the appraiser to retake adjustments to the analyses opinions and concluµions set forth in this repeat as may he required by consideration of additional OF more reliable data that may became available, No change of than report shall be made by anyone older than the appraiser or appraisers The appraiser(s)shall have no responsibility for any unauthorized change(s) to the report. 31. If the client instructions to the appraiser were to inspect only the exterior of the improvements in the: appraisal process the physical attributes of the property were observed from the street(s) as of the inspection state of the appraisal. Physical characteristics of the property were obtained from tax assessment records, available plans, if C any,descriptive inforrnatbn,and interviewing the client and father knowledgeable pie:rsons.19 is assunned the interior of the subject property is consistent with the exterior conditions as observed and that other infrarnnation relied upon rs accurate. 32, The submission of this report constitutes completion of the services authorized. It is submitted on the condition the client will provide reasonable notice and customary compensation, including expert witness fees, relating to any m subsequent required attendance at conferences, depositions and judicial or administrative proceedings. In the event the appraiser is subpoenaed for either air,appearance or a request to produce documents, a crest effort will be evade to notify the client immediately, The client has the sale responsitaility for obtaining a protective order, providing legal insiruc tiros not to appear with the appraisal report and related work files and will answer all questions pertaining to the assigrn-ent, the preparation of the report and the reasoning used to formulate the estimate of Value. Unless maid ire whole or in part by the party issuing the subpoena or by another party of interest in the matter, T the client is responsible for all unpaid fees resulting frc)m the appearance or production of documents regardless of who orders the work. M is 33. Use of this appraisal report constitutes acknowledgement and acceptance of the general assumptions and limiting conditions spacial assumptions(if any'),,extraordinary assumptions(if any). and hypothetical conditions(if any)ern which this estimate of market value is based. E n `. . LO LO 00 N 4- 0 Mn M CL CL 0 LO r 9 a N a N r C 0 M cs r r Q C RL 642530569A PAGE 14 Packet Pg.2634 EXHIBITS SUBJECT PHOTOGRAPHS ..,,........ ...... 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Lo Lo 00 04 "1' � �� S � _ m CL 1 ���)�\llkk 'SS3i itl�rl yi{�Ii(is) I{#ti iI If,J St h„yS�itl\tii,�, m Lo 04 SUB CA ,JOT EXTERIOR — FRONT SIGN 04 Ca 0 E U r r Q 4253056 A IAA Packet Pg.2638 0.3h m 3 y m � } s CL s �f r t s �[s iry ssi sl Atsi i itl h(�f fist ti ��in� �f �a � � — t r s )1 y (1s1 711 s \�ssi l�i�arc�r�w. 1 i N s �' _ of a� E S)�11S�i�I �sif rls s i{i�)s sssAsSiSst�s` t ll�,dM'`' ( iGrss,\ U- �s,t,:, Lo � t Lo N a St fi: it s(��i It i s — �m.«isb�5s,,,,,. 4(f l r i - (S � S�� � ��}frt y ytr st {' �(i 1}1��1)'?t}la ,t4�� s�'s ss?�., ��• — s tS s t1 �)ss �S�tt �tt4r ��"Ylt t f �� +s. 1 (n t`x 111+1b� !t '. a rosi°t�1iI„}tss' m l r< tt(+fps i C- �� dff iisr�i51 ii�4s tt1 'S,,�,i'• f g. fir „ \i t`li3 cif is41 r� m 2 Lo 04 SUBJECT INTERIOR N r r_ 0 E U r r Q 642530 69A Tree D Packet Pg.2639 O.3h m 3 y a All r m r N_ U. A Lo Lo 00 N w O m Mn m i CL CL m 2 i Lo r 9 a N N SUBJECT INTERIOR - LOBBY r- 0 E a r r a 642530569A rr r3 E Packet Pg.2640 0.3h m 3 y m €M`srS r jjr CL m ��li � tidlt t t o srs y m i E f � IN LL Lo00 � t 04 Mn m C- CL Lo r REAR OF SUBJECT PROPERTY N a N r Ca 0 E U r r Q 642530569A TSB F Packet Pg.2641 m 3 y m -._ }}�t}S ;sfr}rl�4,iyo-'4ilill�y)�y��}r(;ft}ttsi}�l�siS`�S�`�J+s(frsfc}lSs t}� t 1+2 yr y >7s!7}r,.l his �rf1't'.(S 1 rs+}S si�t)fl \} �_ _ 4 s'r.. ry y1i�{{ tttst lj 3\� S \a} kts'u ly)ft}`•t(lis((�Itlirslt \spsi t(list 1y 1 t r a i tc s! i rs}t s r l ll � :$q iltr 1{I Yk! sus r t- `\ { CL m E s t to i LV Lo f= r�} , 00 N p m - t cr CL m Lo SIDE VIEWOF SUBJECT PROPERTY c, 9 a N a N r Ca 0 E U r r Q 642530569A Tarp G Packet Pg.2642 0.3h m 3 y m CL err.', � ter,-" � m N Lo Lo 00 4- 0 m N m i CL CL m i Lo i ON NORTH-BoUND STREET OF SUBJECT 04 a N r E U a r r Q 642530569A TAB H Packet Pg.2643 m 3 y m b}rl��}y±{}r;,s, rr��`1t�)'1`tr�m' r1 4 r+ zf£}}ISrjt tt � �tti��S��tllh}trryi}i(,IS {r� ( It 7tii: 160 .F+ t,i }�))'ll)11)'I�rl}jj rtir r tr�4i ,S r CL its 1 Vt� s�filt 'E!{ \ t n r is rrr} 2u,t S m N U. Lo Lo 00 04 — 4- 0 Mn m i CL CL m 2 Lo 04 SOUTH-BOUND I SUBJECT 04 r_ 0 u r r 642530569A TABI Packet Pg.2644 m 3 y m r T r a m y m n '. PROFESSIONAL QUALIFICATIONS .a Lo Lo 00 N 4- 0 Mn m a a m 0 Lo r 9 a N a N r r_ 0 E u r r Q 642530569A TABJ Packet Pg.2645 0.3h t �l y j t CL � N �q q m 2:1 q m i Mick ksma, M A1 , m R,, CL Managing Director - Valuation Sery ces 4 y m E U. za n nr r LO LO 00 �,. 04 Mn q, m CL CL r m LO r 9 a N 04 U r Q 64 53056 A TAB K Packet Pg.2646 NEW APPRAISAL OF A PREVIOUS ASSIGNMENT A 5,832 SF GLA COMMERCIAL BUILDING 2855 OVERSEAS HIGHWAY MARATHON, FL 33050 PREPARED FOR MS. CAROLINA PANTIN BARKET 8500 SW 117 AVENUE ROAD, SUITE 101 y MIAMI, FL 33183 PURCHASE ORDER# 499190 °' Ln u- VALU,unN LO 111CRESERVI Date of Valuation: October 3, 2018 co cv Date of Report: October 25, 2018 9 By: LO cv CRE VALUATION SERVICES cv 9655 SOUTH DIXIE HIGHWAY, SUITE 309 MIAMI, FL 33156 u VENDOR NUMBER 46825 Packet Pg. 2647 111CRVALUAnorq ESERVICES October 25, 2018 Re: A 5,832 SF (GLA) Commercial Building 2855 Overseas Highway Marathon, FL 33050 Carolina Pantin Barket, We have performed a restricted use report on the above referenced property, the conclusions of which are set forth in the attached Narrative Report.The type of value sought in our appraisal of the subject was a market value opinion for the value of the property as of October 3, 2018 subject to the general assumptions and limiting conditions cited herein. Additionally, we have been asked to provide the Fair = Market Rent for the subject property as well. The subject property is a professional building located on 2855 Overseas Highway, Marathon, FL. The v, subject space is estimated as having a Gross Leasable Area (GLA) of 5,832 SF which serves as a medical office building. This report is intended for use by Baptist Health Enterprises, use by others is not intended by CRE Valuation Services. Furthermore, this report is intended only for use as part of an asset valuation and is � not intended for any other use. The intent of this report is conformance with the Ethical Standards of the T) Appraisal Institute as well as meeting with the standards of USPAP. za LO In view of the following facts and data in conjunction with this appraisal, it is the opinion of CRE Lco O Valuation Services that the market value of the fee simple interest in the property"as is" as of October 3, 2018, and subject to the general assumptions and limiting conditions,was: c) FAIR MARKET VALUE OF$1,600,000 FAIR MARKET RENT OF$21.00/SF(NNN) LO Hypothetical Conditions and Extraordinary Assumptions —None. `V co - The estimated reasonable marketing and exposure period for the subject at the indicated value is twelve CD (12) months. Our firm appreciates the opportunity to have performed this appraisal assignment on your behalf. If we may be of further service,please contact us. � Respectfully submitted, CRE Valuation Services { J Mick Stiksma, MAI,MRICS Cert Gen RZ2990 Managing Director Packet Pg. 2648 TABLE OF CONTENTS SUBJECT PROPERTY AT A GLANCE.................................................................................................... 5 SUMMARYOF SALIENT FACTS............................................................................................................10 ASSUMPTIONS AND LIMITING CONDITIONS.................................................................................11 CERTIFICATION 16 ..................................................................................................................................... INTRODUCTION.....................................................................................................................................17 y PROPERTYANALYSIS............................................................................................................................20 APPRAISALPROCESS..............................................................................................................................22 SALES COMPARISON APPROACH 23 FAIRMARKET RENT..............................................................................................................................27 EXHIBITS..................................................................................................................................................28 E Ln 00 cv 4- 0 c� cv co - CD cv CRE Valuation Services 326278601 Packet Pg. 2649 SUBJECT PROPERTY AT A GLANCE CIO 1 S 4 I{, t1 sstt lr i) \J t _ t \ I � I t-- , t , J r; �� 3d iitri� t , E Subject Exterior-Front Entry - LO CO t 0 , D LO vw ts27tiat' � nlr? - N CD CO CD �1 kt "t a i ere Subject Exterior-Side View CRE Valuation Services Page 5 326278601 Packet Pg. 2650 ( 1 gg 1 Y { Subject Exterior- Rear Entrance E T) 4 LO LO CO 0 LO r S i N CD k 1 CO CD 70 -------------------------- U Y I I }} nv Subject Exterior- Rear Lobby Entrance CRE Valuation Services Page 6 326278601 Packet Pg. 2651 r IJ i nfc.a I® Subject Property—Overseas Hwy Looking North E T LID Co � f rid-biz Iii$7 t, i1�i�1�A41> l � (� Cl7 0 t fU LID CD 00 t \4_ � a- � } CD N r' 1� U -------------- Subject Interior—Waiting Room CRE Valuation Services Page 7 326278601 Packet Pg. 2652 t I��tr � - •{,s, 1�,1• !!!! 4 t 1 I,J i�..4`°=��" tl t8 E Subject Interior- Receptionist Desk °' T LO LO Co 0 � a ?!f (J i ~tip rC LO CD Co n� r N -- c r� r J fir .E+ .E+ 1 1- S- Subject Interior-Office Space and Exam Room CRE Valuation Services Page 8 326278601 Packet Pg. 2653 4 tf - � t ....S` 1 a 4 t �£ g k„43it c{t E Arp (n Il LO .� A kfy CO N 0 4 m„ LO Subject Exterior—Aerial View CO - CD cv CRE Valuation Services Page 9 326278601 Packet Pg. 2654 SUMMARY OF SALIENT FACTS Property 5,832 SF (GLA) Commercial Building 2855 Overseas Highway Marathon, FL 33050 Date of Valuation October 3,2018 Date of Viewing October 3, 2018 Date of Report October 10, 2018 Interest Appraised As Is Fee Simple Physical Data Land Area 15,000 SF Year of Construction 1972 Renovated Gross Building Area (GBA) 8,027 SF Gross Leasable Area (GLA) 5,832 SF T Type of Construction The subject property features a 1-story medical LO office building professional building that was LO 00 constructed with a masonry exterior and a flat cV roof with composite material cover. c) Zoning Classification Commercial Highway Mixed Use LO Highest and Best Use `V "As If Vacant" Commercial Building co "As Improved" Commercial Building T' CD cv CRE Valuation Services Page 10 326278601 Packet Pg. 2655 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report has been made with the following general assumptions: 1. Any legal description or plats reported herein are assumed to be accurate.Any sketches, surveys,plats, photographs, drawings or other exhibits are included only to assist the intended user to better understand and visualize the subject property, the environs, and the competitive data. We have made no survey of the property and assume no responsibility in connection with such matters. 2. The appraiser has not conducted any engineering or architectural surveys in connection with this appraisal assignment. Information reported pertaining to dimensions, sizes, and areas is either based on measurements taken by the appraiser or the appraiser's staff or was obtained or taken from referenced sources and is considered reliable.No responsibility is assumed for the costs of preparation or for arranging geotechnical engineering, architectural, or other types of studies, surveys, or inspections that require the expertise of a qualified professional. 3. No responsibility is assumed for matters legal in nature.Title is assumed to be good and marketable and in leased fee unless otherwise stated in the report. The property is considered to be free and clear of existing liens, easements,restrictions,and encumbrances, except as stated. `- 4. Unless otherwise stated herein,it is assumed there are no encroachments or violations of any zoning or W other regulations affecting the subject property and the utilization of the land and improvements is y within the boundaries or propertylines of the propertydescribed and that there are no trespasses or encroachments. 5. CRE Valuation Services assumes there are no private deed restrictions affecting the property which would cn limit the use of the subject property in any way. 6. It is assumed the subject property is not adversely affected by the potential of floods; unless otherwise LO stated herein. 0' cv 4- 7. It is assumed all water and sewer facilities (existing and proposed) are or will be in good working order o and are or will be of sufficient size to adequately serve any proposed buildings. 8. Unless otherwise stated within the report, the depiction of the physical condition of the improvements 0. described herein is based on visual inspection. No liability is assumed for the soundness of structural LO members since no engineering tests were conducted. No liability is assumed for the condition of mechanical equipment, plumbing, or electrical components, as complete tests were not made. No CO responsibility is assumed for hidden, unapparent or masked property conditions or characteristics that were not clearly apparent during our inspection. N 9. If building improvements are present on the site,no significant evidence of termite damage or infestation m was observed during our physical inspection,unless so stated in the report.No termite inspection report was available, unless so stated in the report. No responsibility is assumed for hidden damages or infestation. 10. Any proposed or incomplete improvements included in this report are assumed to be satisfactorily completed in a workmanlike manner or will be thus completed within a reasonable length of time according to plans and specifications submitted. 11. No responsibility is assumed for hidden defects or for conformity to specific governmental requirements, such as fire, building, safety, earthquake, or occupancy codes, except where specific professional or governmental inspections have been completed and reported in the appraisal report. CRE Valuation Services 326278601 Packet Pg. 2656 ASSUMPTIONS AND LIMITING CONDITIONS 12. Responsible ownership and competent property management are assumed. 13. The appraisers assume no responsibility for any changes in economic or physical conditions which occur following the effective date of value within this report that would influence or potentially affect the analyses, opinions, or conclusions in the report. Any subsequent changes are beyond the scope of the report. 14. The value estimates reported herein apply to the entire property. Any proration or division of the total into fractional interests will invalidate the value estimates,unless such proration or division of interests is set forth in the report. 15. Any division of the land and improvement values estimated herein is applicable only under the program v, of utilization shown. These separate valuations are invalidated by any other application. 16. Unless otherwise stated in the report, only the real property is considered, so no consideration is given to the value of personal property or equipment located on the premises or the costs of moving or relocating such personal property or equipment. 17. Unless otherwise stated,it is assumed that there are no subsurface oil,gas or other mineral deposits or 2 subsurface rights of value involved in this appraisal, whether they are gas, liquid, or solid. Nor are the y rights associated with extraction or exploration of such elements considered; unless otherwise stated. 0. Unless otherwise stated it is also assumed that there are no air or development rights of value that may be transferred. '✓ 18. Any projections of income and expenses,including the reversion at time of resale, are not predictions of the future. Rather,they are our best estimate of current market thinking of what future trends will be. � No warranty or representation is made that these projections will materialize. The real estate market is constantly fluctuating and changing. It is not the task of an appraiser to estimate the conditions of a future real estate market, but rather to reflect what the investment community envisions for the future in terms of expectations of growth in rental rates, expenses, and supply and demand. The forecasts, LO CO projections,or operating estimates contained herein are based on current market conditions,anticipated c44 short-term supply and demand factors,and a continued stable economy. These forecasts are, therefore, subject to changes with future conditions. 19. Unless subsoil opinions based upon engineering core borings were furnished,it is assumed there are no 0. subsoil defects present,which would impair development of the land to its maximum permitted use or < LO would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them. CO 20. CRE Valuation Services representatives are not experts in determining the presence or absence of T' hazardous substances, defined as all hazardous or toxic materials, wastes, pollutants or contaminants `V (including, but not limited to, asbestos, PCB, UFFI, or other raw materials or chemicals) used in m construction or otherwise present on the property. We assume no responsibility for the studies or analyses which would be required to determine the presence or absence of such substances or for loss as a result of the presence of such substances. Appraisers are not qualified to detect such substances. < The client is urged to retain an expert in this field. 21. We are not experts in determining the habitat for protected or endangered species,including,but not limited to, animal or plant life that may be present on the property. We assume no responsibility for the studies or analyses which would be required to determine the presence or absence of such species or for loss as a result of the presence of such species. The appraiser hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based upon any subsequent endangered species impact studies, research, and investigation that may be provided. CRE Valuation Services Page 12 326278601 Packet Pg. 2657 ASSUMPTIONS AND LIMITING CONDITIONS 22. No environmental impact studies were either requested or made in conjunction with this analysis.The appraiser hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based upon any subsequent environmental impact studies,research,and investigation that may be provided. 23. The appraisal is based on the premise that there is full compliance with all applicable environmental regulations and laws unless otherwise stated in the report; further, that all applicable zoning, building, and use regulations and restrictions of all types have been complied with unless otherwise stated in the report; further, it is assumed that all required licenses, consents, permits, or other legislative or administrative authority, local, state, federal and/or private entity or organization have been or can be 0. obtained or renewed for any use considered in the value estimate. 24. Neither all nor any part of the contents of this report or copy thereof, shall be conveyed to the public 'a through advertising,public relations,news, sales, or any other media,without the prior written consent and approval of the appraisers. This limitation pertains to any valuation conclusions, the identity of the LN analyst or the firm and any reference to the professional organization of which the appraiser is affiliated or to the designations thereof. 25. Although the appraiser has made, insofar as is practical, every effort to verif, as factual and true all information and data set forth in this report, no responsibility is assumed for the accuracy of any y information furnished the appraiser either by the client or others. If for any reason,future investigations should prove any data to be in substantial variance with that presented in this report, the appraiser W reserves the right to alter or change any or all analyses, opinions, or conclusions and/or estimates of value. y 26. Often real estate sales prices and other data, such as rents, prices, and financing, are not a matter of public record. If this is such, although extensive effort has been expended to verif,pertinent data with v, buyers, sellers,brokers,lenders,lessors,lessees, and other sources considered reliable,it has not always . been possible to independently verify all significant facts. In these instances, the appraiser may have Za LO relied on verification obtained and reported by appraisers outside of our office. Also, as necessary, LO 00 assumptions and adjustments have been made based on comparisons and analyses using data in the report and on interviews with market participants. The information furnished by others is believed to 0 be reliable,but no warranty is given for its accuracy. ru 27. The appraiser has not made a specific compliance survey or analysis of the property to determine 0. 0. whether or not it is in conformity with various disability requirements. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements was not considered in N estimating the value of the property. Co 28. This appraisal report has been prepared for the exclusive benefit of the client. It may not be used or CD C' relied upon by any other party. Any other party who is not the identified client within this report who `V uses or relies upon any information in this report does so at their own risk and may be subject to legal � action.Written consent must be obtained prior to any third party use. 0 29. The dollar amount of any value opinion herein rendered is based upon the purchasing power and price of the US Dollar as of the effective date of value. This appraisal is based on market conditions existing as of the date of this appraisal. 30. The right is reserved by the appraiser to make adjustments to the analyses,opinions, and conclusions set forth in this report as may be required by consideration of additional or more reliable data that may become available.No change of this report shall be made by anyone other than the appraiser or appraisers. The appraiser(s) shall have no responsibility for any unauthorized change(s) to the report. CRE Valuation Services Page 13 326278601 Packet Pg. 2658 ASSUMPTIONS AND LIMITING CONDITIONS 31. If the client instructions to the appraiser were to inspect only the exterior of the improvements in the appraisal process, the physical attributes of the property were observed from the street(s) as of the inspection date of the appraisal. Physical characteristics of the property were obtained from tax assessment records,available plans,if any,descriptive information,and interviewing the client and other knowledgeable persons. It is assumed the interior of the subject property is consistent with the exterior conditions as observed and that other information relied upon is accurate. 32. The submission of this report constitutes completion of the services authorized. It is submitted on the condition the clientwill provide reasonable notice and customary compensation,including expert witness 0. fees, relating to any subsequent required attendance at conferences, depositions, and judicial or administrative proceedings.In the event the appraiser is subpoenaed for either an appearance or a request �+ to produce documents,a best effort will be made to notify the client immediately.The client has the sole responsibility for obtaining a protective order,providing legal instruction not to appear with the appraisal report and related work files and will answer all questions pertaining to the assignment, the preparation of the report, and the reasoning used to formulate the estimate of value. Unless paid in whole or in part by the party issuing the subpoena or by another party of interest in the matter, the client is responsible for all unpaid fees resulting from the appearance or production of documents regardless of who orders the work. �- 33. Use of this appraisal report constitutes acknowledgement and acceptance of the general assumptions and limiting conditions, special assumptions (if any), on which this estimate of market value is based. Hypothetical Conditions and Extraordinary Assumptions —None. T) SPECIAL APPRAISAL INSTRUCTIONS LO LO The Anti-Kickback Statute includes six standards that must be met with regards to lease arrangements co cv 4- between hospitals and any person or entity in a position to influence referrals. The six standards— are: o c� 1) The lease agreement is set out in writing and signed by the parties. 0. 0. 2) The lease covers all of the premises leased between the parties for the term of the lease N and specifies the premises covered by the lease. co T_ CD 3) If the lease is intended to provide the lessee with access to the premises for periodic intervals of time, rather than on a full-time basis for the term of the lease, the lease specifies exactly the schedule of such m intervals, their precise length, and the exact rent for such intervals. 4) The term of the lease is for not less than one year. 5) The aggregate rental charge is set in advance, is consistent with fair market value in arms-length transactions and is not determined in a manner that takes into account the volume or value of any referrals or business otherwise generated between the parties for which payment may be made in whole or in part under Medicare,Medicaid or other Federal health care programs. 6) The aggregate space rented does not exceed that which is reasonably necessary to accomplish the commercially reasonable business purpose of the rental. Note that for purposes of the paragraph (b) of CRE Valuation Services Page 14 326278601 Packet Pg. 2659 ASSUMPTIONS AND LIMITING CONDITIONS this section, the term fair market value means the value of the rental property for general commercial purposes, but shall not be adjusted to reflect the additional value that one party (either the prospective lessee or lessor) would attribute to the property as a result of the proximity or convenience to sources of referrals or business otherwise generated for which payment may be made in whole or in part under Medicare,Medicaid and all other Federal health care programs. The Stark Law requires that rent should not be determined in a manner that takes into account the volume or value of referrals between a physician who has a financial relationship with a healthcare entity and the healthcare entity. The requirements upon which a lease agreement is based are similar to the Anti- Kickback Statute and are as follows: Lease agreement is set out in writing,is signed by the parties, and specifies the premises it covers. • The duration of the lease agreement is at least I year. The space rented or leased does not exceed that which is reasonable and necessary for the legitimate business purposes of the lease arrangement and is used exclusively by the lessee when being used by the lessee ... lessee may make payments for the use of space consisting of common areas if the payments do not exceed the lessee's pro rata share of expenses for the space. Rental charges over the term of the lease arrangement are set in advance and are consistent n T) with fair market value. 0. M Ca • Rental charges over the term of the lease arrangement are not determined - (i) in a manner that takes into account the volume or value of any referrals or other business generated between parties;or(ii) using a formula based on - (A) a percentage of the revenue raised... (B) Per-unit of service rental charges;Lease arrangement would be commercially reasonable even if no referrals were made between the lessee and the y lessor. If the lease arrangement expires after a term of at least 1 year, a holdover lease arrangement immediately following the expiration of the lease arrangement. .0 LO LO 00 cv 4- 0 c� LO cv Co T_ CD cv CRE Valuation Services Page 15 326278601 Packet Pg. 2660 CERTIFICATION We certify that, to the best of our knowledge and belief- - The statements of fact contained in this report are true and correct. - The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and our personal, impartial, and unbiased professional analyses, opinions, and conclusions. - We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. �+ - We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. - Our engagement in this assignment was not contingent upon developing or reporting predetermined results. _ - Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client,the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Appraisal Institute and USPAP. - A viewing of the subject site, the improvements and market area was conducted on October 3, 2018 by the appraiser. - Tristan Stiksma, RI24514, provided real property appraisal assistance to the persons signing this certification. >% Z - The reported analyses, opinions, and conclusions were developed, and this report has been prepared, LO in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice N of the Appraisal Institute. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its r duly authorized representatives. - As of the date of this report the undersigned has completed the requirements of the continuing education program of the Appraisal Institute for members. N co CD cv Mick Stiksma, MAI,MRICS Managing Director Cert Gen RZ2990 CRE Valuation Services 326278601 Packet Pg. 2661 INTRODUCTION Property Appraised 5,832 SF (GLA) Commercial Building 2855 Overseas Highway Marathon, FL 33050 Property Identification The subject property is a one story professional building. The building has an approximate Gross Building Area (GBA) of 8,027 SF. Physically, the subject property has average physical appeal compared to other properties in the local area. Overall, the subject property is in demand from an investment point of view. Market conditions in the area appear to support the use of the subject property and there appears to be experienced management in place. The subject property should be successful if properly managed �, T) and operated. The following are considered some of the advantages and challenges of the subject property. ADVANTAGES: • Subject is conveniently located in the city of Marathon. T) • Supporting demographic. z CHALLENGES: LO LO co • National Economy is still emerging from recession. N • Real Estate prices recovering from regional recession. 0 9 Type of Value, Intended Use & User of Appraisal The type of value sought in our appraisal of the subject was a market value opinion for the value and ,n the rent of the Fee Simple interest in the property "as is" as of October 3, 2018, subject to the `I extraordinary assumptions and limiting conditions cited herein and the intended use is for Baptist 00 T- CD Health Enterprises. N Property Rights Appraised The subject property is tenant occupied and the value conclusion for the property reflects the Fee Simple interest in the subject. CRE Valuation Services 326278601 Packet Pg. 2662 Scope of Appraisal/Extent of the Data Collection Process This appraisal considered all three approaches to value, (1) Sales Comparison Approach, (2) Income Capitalization Approach and the (3) Cost Approach. The procedures and methodologies employed in these approaches are outlined in the Appraisal Process section of this report. Following is a summary of steps completed by the appraisers in this assignment. 1. The subject was viewed on October 3, 2018. The surrounding area and influences were also viewed at this time. Specific information relative to the subject property was provided by representatives of the owners. v, 2. Gathered information from various secondary data sources regarding regional and local economic and demographic data specifically relating to the regional, city and neighborhood � analyses. 3. Analyzed trends in the market through confirmation of the comparable sales. 4. Analyzed comparable sales. These data were utilized to form a market value opinion as part v, of the Sales Comparison Approach. 5. Reconciled the results into a probable range of value as of October 3,2018 on an "as is" basis. y 6. Survey rental rates for similar buildings in the market area and concluded to a Fair Market Rent. T) 7. Prepared a Narrative Report. Z LO LO co cv 4- 0 c� LO cv co CD - CD cv U CRE Valuation Services Page 18 326278601 Packet Pg. 2663 The subject property is located on Marathon, Munroe County, Florida which is part of the Florida Keys. Stanley Sm'dik Marathon Cans a unrEy 7 Elementary School United Church Marathon Driver License Office C'= Elec Formula Freediving Munroe Count M Ent€erfly r`a e pig"`;fir ' Y � f� Turtle Hospital yvs4 1,2855 � Public Library tie Clerk of Couns Fishermen's Overseas Highway Community Hospiiaf -0 n 1f\ y y r r E Figure 1— Submarket Map LO LO 00 The Florida Keys Submarket 4- 0 According to Site To Do Business,within a 5 mile radius of the subject property, the unemployment t� rate is 2.5%with a median household income of$51,887 dollars—greater than Miami-Dade County's $43,129 dollars. With an improving economy and a population set to grow by 3.8% by 2022,we can forecast a shrinkage in this Southern Regions 9% vacancy. In Commercial Real Estate, the Florida LO Keys saw an increase of sales by 5% in Q1 of 2017 from 2016. The Florida Keys offers incredible 00 proximity between Key West and Miami, along with the serene oceanic environment that this aquatic cv habitat seems to offer on perpetual basis. CRE Valuation Services Page 19 326278601 Packet Pg. 2664 PROPERTY ANALYSIS General Description The subject is located at 2855 Overseas Highway in the city of Marathon, FL. Access to the site is provided via ingress and egress via its roadway accesses and is considered good when compared to similar sites. Furthermore, given the nature of the surrounding arterials, the subject is considered to have good exposure characteristics when compared to similar sites within the area. 0. Size/Shape/Dimensions The subject is a 15,000 SF lot with a rectangular shape. Public records indicate that the subject is 2 Parcel Number 00321730-000000 and is legally defined as: SOMBRERO SUB #6 PB2-93 MARATHON FLA LOTS A-4& B-4& D-14 OR488-559/560 OR806-1311/1312 OR806-1314 OR1025-331Q/C OR1084-1707Q/C OR1089-153 Summary of Improvements The subject building has a Gross Building Area (GBA) of 8,027 SF and a Gross Leasable Area (GLA) of 5,832 SF. The subject is a professional building that effectively operates in one space that occupies the entire building. It is our opinion that the property could be converted over to a multitenant W scenario with relatively little expense. The layout and design of the improvements are considered v, average. The subject features renovations over the Nears and has been relatively well maintained. The layout of the building is provided in the sketch below. ,n LO 00 cv 4- 0 c� LO cv Co - CD cv CRE Valuation Services 326278601 Packet Pg. 2665 IMPROVEMENT ANALYSIS -------------------------------------,,11---------------------------------- 49 PT-0 0pr 6 F FLA 39 9- (50AG) 24 6 15 QpF 12 (76) 16 4 QPF 4 4 P70 (11 ci) OPF a f,'l 76) 22 FLA �792) ut kio Z, C 36 m E 72 T) U- LO LO 00 C44 4- OPF 0 362) 60 16 m LO 22 C44 1 4 4 Co CD 74 C44 E U CRE Valuation Services Page 21 326278601 1 Packet Pg. 2666 APPRAISAL PROCESS Overview The three traditional approaches to valuing improved properties are: 1. Sales Comparison Approach-a comparison of the property appraised with reasonable similar, recently conveyed properties for which the price, terms and conditions of sale are known. 2. Income Capitalization Approach - the processing of a projected net income into a valuation v, estimate via one or more capitalization techniques. 3. Cost Approach- an estimate of the replacement cost of all structural improvements as if new, less loss in value attributable to depreciation from all causes plus the value of the land as if vacant. The Sales Comparison Approach is founded upon the principle of substitution that holds that the cost to acquire an equally desirable substitute property without undue delay ordinarily sets the upper limit W of value. At any given time, prices paid for comparable properties are construed by many to reflect y the value of the property appraised. The validity of a value indication derived by this approach is heavily dependent upon the availability of data on recent sales of properties similar in location, size, � and utility to the appraised property. T) The Income Capitalization Approach is based on the principle of anticipation that recognizes the LO LO present value of the future income benefits to be derived from ownership in a particular property.The co N Income Approach is most applicable to properties that are bought and sold for investment purposes, and is considered very reliable when adequate income and expense data are available. Since income D producing real estate is most often purchased by investors, this approach is valid and is generally 0. 0. considered the most applicable when the property being appraised was designed for, or is easily LO capable of producing a rental income. co N The Cost Approach is based on the premise that the value of a property can be indicated by the current T' cv cost to construct a reproduction or replacement for the improvements minus the amount of C depreciation evident in the structures from all causes plus the value of the land and entrepreneurial m profit. This approach to value is particularly useful for appraising new or nearly new improvements. � CRE Valuation Services 326278601 Packet Pg. 2667 SALES COMPARISON APPROACH Introduction The Sales Comparison Approach is premised upon the Principle of Substitution-a valuation principle that states that a prudent purchaser would pay no more for real property than the cost of acquiring an equally desirable substitute on the open market. The Principle of Substitution presumes that the purchaser will consider the alternatives available to him, that he will act rationally or prudently on the basis of his information about those alternatives, and that time is not a significant factor. Substitution may assume the form of the purchase of an existing property with the same utility, or of acquiring an investment which will produce an income stream of the same size with the same risk as that involved in the property in question. The applicability of this approach is based upon the assemblage of similar market sales and offerings for comparison to the subject. Considerations for such factors as market conditions, location, size, quality, and age-condition, as well as the terms of the transaction, are all significant to the subject ) 0. property.Any adjustments to the sales price of market sales to provide indications of market value for the subject must be market-derived; therefore, the actions of typical buyers and sellers are reflected in W the comparison process. E W There are various units of comparison available in the evaluation of sales data in this approach. The y Sales Price Per Square Foot unit of comparison is derived by dividing the sale price by the total number of Square Feet.This physical unit of comparison can be adjusted to account for dissimilarities between LO market sales and the subject property. This unit of comparison is then applied to the subject's Square LCO O cv Feet to indicate a value for the subject. D LO cv cv U CRE Valuation Services 326278601 Packet Pg. 2668 Summary of Improved Sales Sale No. Name/Location Date of Sale Land Size(SF) Gross Building Est.YOC SP/SF($) 1 5701 Overseas Hwy,Marathon,FL33050 October-18 0 2,700 1943 $230.17 2 11187Overseas Hwy,Marathon,FL 33050 October-18 7,501 2,098 1987 $331.27 3 859980verseas Hwy,Islamorada,FL33036 May-18 9,583 1,568 1998 $369.90 Subject 2855 Overseas Highway N/A 15,000 5,832 1972 N/A tart\tiny t�l` � ti t}tt t,1`si r s �5lillj,i,5,t7+t 4l,Its ill` tS�t\} 3t�11 �sss���'1}ll'ttti ; Minimum ul}, ,» , 3 ,t;4lts+` �til, May 18 0 1,568 1943 $230.17 $�`S, t V}{ ttitt`S\„i Jii`i t t1,S 1 lifyi#X 1 y Maximum 1i,1«l}ijsttfJ\`t'{ti}s „tr;t4 Z��i1 ll;{} It\,1 3ry October 18 9,583 2,700 1998 $369.90 MMean ed an t 54 s 0 tober 18 7,501 2,098 1986 $310.44 y $331.27 nz nz The sales utilized were taken from the Subject area and are considered to be most similar. It is important to note that we conducted an exhaustive search and that very few similar sales had occurred in the immediate market area that we believed had similar characteristics to the subject property, thus we chose to expand our search which included a comparable not directly in the subject market area. A summary is included in the following table. nz E a— , u7 u7 00 4- 0 a� or � V7 Co CD N ZJI s'MM�'umsrFt�1. � M�aihvn,fL3i�Gn � ms t51'X+nr M�n'y k�arn FL ds95® 9utj�e l CRE Valuation Services Page 24 326278601 Packet Pg. 2669 Sales Price Per Square Foot Analysis The Sales Price per Square Foot comparison is a common physical unit of comparison for properties similar to the subject. The sales were analyzed and adjusted for differences in physical characteristics. Property Rights Conveyed No data supports a substantive difference between a leased fee or fee simple estates.We are appraising the subject property on a fee simple basis; thus, no adjustments were necessary for property rights conveyed. Cash Equivalency/Financing In an analysis of sales, any advantageous financing should be extracted from the sales prices due to the fact that favorable financing agreements can result in inflated value indications. In this particular instance, no adjustments were required to the sales for financing terms. Conditions Of Sale Based on the arrangements made by the seller, which must be accepted by the follower to proceed with the sale of the site, there were no signs of non-arm's length transaction nor duress. Therefore, no adjustments were considered necessary on this basis. in Market Conditions Next, an adjustment for changing market conditions was considered. The sales comparable T) transactions occurred within the past two and as such no significant changes have occurred thus no adjustments are warranted. LO 00 cv Location Comparable 1 and 2 were all relatively similar in relation to property type and within a quarter of a mile radius from one another. Comparable 3 is further from the other comparables and the subject, 0. 0. but still in a desirable area with lots of volume and thus no significant adjustment was deemed LO necessary. 00 cv Size CD CD Often, smaller buildings in the local market sell for higher per square foot prices due to the larger investor pool and, therefore, greater demand, for the same and therefore the opposite is also true. W Comparable 2 and 3 has a smaller building so it has been adjusted downwards based on that. As such, no size differences warranted an adjustment on the other comparables. Age/Condition All of the comparables had different effective ages and were constructed over various times over the Nears and were adjusted accordingly. CRE Valuation Services 326278601 Packet Pg. 2670 Adjustment Summary When considering the comparables as a whole we believe that they represent the most similar comparison to the subject in the immediate market area, however they still are not truly comparable. The following tables summarize the aforementioned adjustments applied to the sales. Sales Adjustments Cond.Of Mkt.Cond, Adj.SP/SF Location Age/Cond Net Adj. Adj.SP/SF' Sale No. SP/SF($) Sale N ($) % Size% % N 1 230.17 0 0 230.17 0 0 20 20 $276.20 2 331.27 0 0 331.27 0 -5 -15 -20 $265.01 _ 3 369.90 0 0 369.90 0 -10 -20 -30 $258.93 Minimum 230.17 230.17 $258.93 Maximum 369.90 369.90 $276.20 Mean 310.44 310.44 $266.71 Median 331.27 331.27 $265.01 ca Std.Dev. 72.16 72.16 $8.76 y E T) Conclusion LO After adjustments, the comparable sales ranged from $258.93/Square Foot to $276.20/Square Foot c' cv with a mean of$266.71/Square Foot. A value conclusion of$270.00/Square Foot, which is slightly above the mean is considered reasonable. As such, the subject's "as is" Market Value via the Sales Price per Square Foot Analysis was concluded to be as follows: LO cv Sales Comparison Approach co Size (SF)x Value/SF=Indicated Value T- 5,832 SF x $270.00 /SF = $1,574,640 $1,600,000 CRE Valuation Services Page 26 326278601 Packet Pg. 2671 FAIR MARKET RENT Per the request of the client, additional information regarding the Fair Market Rent of the subject property has been requested. Therefore, the Income Approach was applied,which is a procedure in appraisal analysis whereby anticipated future economic benefits to be derived from a property are converted into a present value estimate through a capitalization process. This approach is based on the principle of anticipation and value is created by investor's expectations of benefits to be derived 0. in the future. The process of estimating anticipated economic benefits from a particular property, Ch therefore requires estimates of potential income and expenses and the selection of the most 'a appropriate capitalization method. Moreover, the rental comparables were devised based upon Economic rent or the preference term, .0 Market Rent,which is defined as: "The rental income that a property would most probably command in the open market;indicated by the current rents that are either paid or asked for comparable space as of the date of the appraisal." y The subject property of a stand-alone medical office building that is currently tenant occupied. To form a market rent opinion for the property,we used rental data taken from the comparable market. We have found three such rent comparables and have included the information and analysis below. T) Summary of Comparable Rentals _ G ross i LO Rental Leasble Lease Bldg Size Initial* Co Tenant/Location No. Area Type (SF) Rent/SF (GLA) 1 90290 Overseas Highway,Tavenier, FL 2,000 MG 22,000 18.60CU 2 891000verseas Highway, Plantation Key, FL 2,190 NNN 3,304 23.00 0. 3 2901 Overseas Highway, Marathon, FL 1200 MG 4,800 2000 LO Subject ` 2855Overseas Highway 5,832 N CD CD cv In conclusion it is our opinion that the Fair Market Value of the subject property, once adjusted is reasonable at$21.00/ SF on a triple net basis. CRE Valuation Services 326278601 Packet Pg. 2672 EXHIBITS CLIENT ENGAGEMENT LETTER........................................................................................................A PROFESSIONAL QUALIFICATIONS.................................................................................................... E E U- LO LO co C44 4- 0 LO C44 co T- CD C44 E CRE Valuation Services Page 28 326278601 1 Packet Pg. 2673 CLIENT ENGAGEMENT LETTER E T) LO LO CO 4- 0 LO N CO - CD CRE Valuation Services Page A 326278601 Packet Pg. 2674 SEE'RVIC.ES 9655 South Dwi Highway Suite#09 Miamb,FL 331S6 September 12,2018 y Baptist Health Enterprises Carolina Pantin Barket Manager of Real Estate Transactions 8500 SW 1171h Avenue Road,Suite 101 Miami, FL 33183-4841 Tel:786.594.6356 Fax:786.533.9979 Email:CarolinaBa@baptisthealth.net n Re: 1. 2855 Overseas Highway, Marathon, FL 2. 5701 Overseas Highway-16,Marathon,FL y 3. 5701 Overseas Highway-17,Marathon,FL E 1. Parcel ID#00321730-000000 is a medical office building situated on 15,000 SF of land and has a gross building area of 8,027 SF y 2. Parcel ID# 00103650-000216 is a medical office unit measuring 697 SF of gross square footage. za 3. Parcel ID#00103650-000217 is a medical office unit measuring 3,442 SF of to gross square footage. 00 4- 0 The purpose of this letter is to submit our bid proposal, so you may have the appropriate information to engage CRE Valuation Services, LLC for appraisal services. CRE Valuation Services, LLC appreciates the opportunity to provide this proposal to for valuation and counseling services to Baptist Health Enterprises(the"Client")for the above-captioned properties. CD CD co N CRE Valuation Services Page B 326278601 Packet Pg. 2675 It is our mutual understanding that the purpose of this appraisal is to provide an opinion of the market value of the fee simple estate in the Subject Properties and the intended use of the report will be for in-house purposes. The appraisal and report will be prepared in conformance with and subject to the Standards of Professional Practice and Code of Ethics of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP) developed by the Appraisal Standards Board of the Appraisal Foundation. In accordance with our correspondence, the scope of this assignment will require CRE Valuation Services, LLC to consider all relevant and applicable approaches to value as determined during the course of our research, property analysis and preparation of the report. Property 1 — the 2855 Overseas Hwy property — our appraisal assignment is to provide an "as is" market value as of the effective date. The written report will include the most applicable approach;all three approaches will be considered for the asset. The report will be delivered in a "restricted use" format.The research,analysis and reporting will be conducted and delivered in the following manner. A single approach to value will be provided in a narrative report cn for the sum of$2,150. Property 2—the 5701 Overseas Hwy(16/17) property—our appraisal assignment LO co is to provide an "as is"fair market value for the rent as of the effective date. N 0 The written report will include the most applicable approach;all three approaches will be considered for the asset. The report will be delivered in an update letter based on a new appraisal of a previous appraisal.This update letter will be provided for the sum of$250. LO cv This quote is based on the,given information. During the Scope of Appraisal should the assignment's complexities or requirements increase significantly, the fee is co T_ CD subject to change. cv The fee will be due within 30 days of receipt of our invoice for the services rendered. CRE Valuation Services Page C 326278601 Packet Pg. 2676 The report will be completed and delivered on or before the 16th day of business after receipt of the signed letter of engagement. The appraisal report will be addressed to and shall be solely for the Client's use and benefit. If this proposal is acceptable,please authorize us to proceed by executing this letter y of engagement by signing below. Thank you for considering us for this assignment and we look forward to the opportunity of working with you. Should you require any additional information or if you have any questions, please contact me at 7 6- 533-1245. Best Regards, I® T) Mick Stiksma,MAI,MRICS Cert.Gen.RZ2990 CO Baptist Health Enterprises T) LO Authorized Signatory Late LO 00 4- 0 9) LO N r r N U CRE Valuation Services Page D 326278601 Packet Pg. 2677 PROFESSIONAL QUALIFICATIONS E T) LO LO co 4- 0 LO N co - CD CRE Valuation Services Page E 326278601 Packet Pg. 2678 1 y Managing Director - Valuation Services E T) � w LO �i LO N 0 { U) LO �. ' cx� r E j,-_- p '-) i "1( 14G iilf�� s I CRE Valuation Services Page F 326278601 Packet Pg. 2679 0.3.j 3144^earths€de Drive,Ste 201 � Key West FL 33(40 APPRAISAL off'im t34t5)296-4563 , [`«sN,t3031 312.21I€1 Website:th-kecsrrpp,Htsalsxom R?-tti�d:j inn a„#la-kUJ�;21ai�t.a�sa�€�.e•;o�tt January 24, 2020 Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, Florida Keys 102050 Overseas Highway Key Largo, Florida 33037 Appraisal Report: 2855 Overseas Highway, Marathon, Florida 33050 Monroe County Parcel ID: 00321730-000000; Alternate Key No.: 1396001 Our File No.: 193-19 Dear Mr. Wilson: We performed an appraisal assignment and estimated the "As Is"Market Value ofthe Fee Simple Estate of the subject property formerly known as, Community Health of South Florida, 2855 Overseas Highway, Marathon, Florida 33050, as of January 6, 2020 . The reader is advised to review the Scope 0 of Work section within this report. to The subject site is a rectangular shaped corner parcel fronting on the Overseas Highway and 292h Street tco o N at approximately mile marker 48.5. It is in close proximity to the Monroe County Offices, Courthouse - and Library,plus Fisherman's Community Hospital. The subject property has been used as a medical office/clinic. At the time of our site visit, the property was vacant but had previously been owner- occupied as a clinic. �r N A survey of the subject property was not made available. Hence, the appraisers utilized the Monroe 0 County Property Appraiser's record and plat map to obtain the dimensions of the subject site. The N CD subject parcel has 100 linear feet along the Overseas Highway and 150 linear feet along the westerly side of 292h Street. Thus, the subject parcel contains 15,000 square feet or 0.34 acres according. Furthermore, it should be noted that the subject property shares a party wall with the adjacent building, Community Health of South Florida. No responsibility is taken by this office for the accuracy or in regard to any questions on the nature of encroachments, encumbrances, or dissimilarities in measurement. Any maps or plats reproduced and included in this report are intended only for the purpose of showing spatial relationships. They are not measured surveys nor measured maps, and no responsibility for cartographic or surveying errors is assumed. The appraisers reserve the right to change the final indicated value herein, if a survey is made available and any encroachments and/or easements noted. Packet Pg. 2680 0.3.j Mr. Kevin G. Wilson, P.E. Monroe County Assistant Administrator January 24, 2020 Page 2 The subject building consists of a one-story CBS/masonry structure which contains a total of 5,778 square feet of gross building area. The property has previously been used as a medical clinic and subdivided into examining rooms, conference room, offices, medical laboratory and break room. The building has two main-covered entrances, in front facing the Overseas Highway and in the rear with a access from the parking lot. The property is currently vacant. The structure has a total of five exterior- covered entrances containing a total of 646 square feet. The exterior of the building is finished with painted stucco with some glass block windows around the front and easterly side. According to the Monroe County Property Appraiser's records,the subj ect structure was built in 1972. The property has 1­_ approximately thirty off-street parking spaces around the building, including a handicap space. Market Value is defined as the most probable price in cash(or its equivalency)for which the appraised property will sell in a competitive market under all conditions requisite to a fair sale. Market value assumes a normal or reasonable time for exposure on the open market. This report contains the results of our investigation and analysis made in order to furnish an estimate of the Market Value of the Fee Simple Estate of the Subject Property. The Fee Simple Estate is the unencumbered value of the subject property; basically, market rents and terms are considered with no regard to existing leases and terms. According to the Manage of Real Estate Transactions for Baptist 0 Health Enterprises there are no current leases on the property. It was formerly leased to Community Health of South Florida which has been terminated. Therefore,only the Fee Simple Interest is included LO herein,as the subject property is not encumbered by along term lease. However,the reader is cautioned c„ that a title search was not made; thus, no other encumbrances are considered herein. 0 Based on market analysis and research,it is our opinion that the "As Is"Market Value ofthe Fee Simple Estate of the Subject Property,formerly known as Community Health of South Florida,2855 Overseas Highway, Marathon, Florida 33050, subject to definitions, assumptions and limiting conditions, as of N January 6, 2020 is: cv ONE MILLION FORTY THOUSAND DOLLARS ($1,040,000) The "As Is" Market Value for the subject property considers no personal property. This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a)of the Uniform Standards of Professional Appraisal Practice. As such,it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning,and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. Packet Pg. 2681 O.3.j Mr. Kevin G. Wilson, P.E. Monroe County Assistant Administrator January 24, 2020 Page 3 This confidential report is prepared for the sole use and benefit of the Monroe County Board of County Commissioners, is based, in part,upon documents,writings, and information owned and possessed by a the client, Monroe County. This report is provided for informational purposes only to third parties authorized to receive it. Appraisal Company of Key West assumes no responsibility if this report is used a in any other manner. � If you have any questions regarding this appraisal report,please feel free to contact me. Thank you for giving me the opportunity to provide this service for you. This transmittal letter must remain attached to the report,which contains 103 pages including related exhibits,in order for the value opinion set forth to be considered valid. CO Respectfully submitted, S James E. Wilson, MRICS, President Richard Padron, CCIM, MSA State-certified general real estate appraiser State-certified general real estate appraiser 0 RZ 2164 RZ 544 email: iini(rr`th-1_cvs ippr<ri��jis.coni enwil:richardp<ci�I.fla-keysa-oDralsals.com Za Zy LO CO Report Attached: C:AComm-19\Comm-193-19.wpd N N N U Packet Pg. 2682 0.3.j APPRAISAL REPORT Property Type: MEDICAL OFFICE PROPERTY Property Formerly Known As: �+ Community Health of South Florida 2855 Overseas Highway Marathon, Monroe County, Florida 33050 Prepared For: MR. KEVIN G.WILSON,P.E. ASSISTANT COUNTY ADMINISTRATOR MONROE COUNTY,FL(FLORIDA KEYS) 102050 OVERSEAS HIGHWAY E KEY LARGO,FL 33037 0 U Valuation Date: LO LO co JANUARY 6,2020 c� Inspection Date: �t OCTOBER 24,2019&JANUARY 6,2020 Cy Prepared By: N CD cv James E. Wilson, MRICS, President Richard Padron, CCIM, MSA State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ544 e( APPRAISAL COMPANY OF KEY WEST 3144 Northside Drive, Suite 201 Key West, Florida 33040 Our File No.: 193-19 Packet Pg. 2683 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL TABLE OF CONTENTS COVER PAGE LETTER OF TRANSMITTAL SUMMARY OF FACTS AND CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 LOCATIONMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 AERIAL LOCATION MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 v, AERIAL PLAT MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 .� PLAT OF SUBJECT PROPERTY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 SUBJECT PROPERTY PHOTOGRAPHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ASSUMPTIONS AND LIMITING CONDITIONS 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PURPOSE & INTENDED USE OF THE APPRAISAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 co cv MARKET VALUE DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 PROPERTY RIGHTS APPRAISED & DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 LEGAL DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 N CD CD OWNERSHIP /SALES HISTORY/HISTORY OF THE SUBJECT . . . . . . . . . . . . . . . . . . . . . . . . 29 cv CD cv ACTIVE LISTINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 EXPOSURE TIME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 SUBJECT'S MARKET AREA (NEIGHBORHOOD) ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . 34 DEMOGRAPHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Appraisal Company of Key West Page 1 Packet Pg. 2684 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL FLOODMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 SITE DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 .� PLATMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 AERIAL MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 SITEMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 FLOODMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 v, ZONING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 .� ZONING MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 FUTURE LAND USE MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 REAL ESTATE TAX AND ASSESSMENT AND BURDEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 IMPROVEMENT ANALYSIS 52 co cv BUILDING SKETCH 59 - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FLOOR PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 HIGHEST AND BEST USE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 04 CD CD SCOPE OF WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 cv CD cv COST APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 THE INCOME APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 THE SALES COMPARISON APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 RECONCILIATION AND CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Appraisal Company of Key West Page 2 Packet Pg. 2685 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL TABLE OF CONTENTS (Continued) CERTIFICATE OF APPRAISAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 ADDENDA QUALIFICATIONS OF APPRAISER JAMES E. WILSON . . . . . . . . . . . . . . . . . . . . . . . . 96 QUALIFICATIONS OF APPRAISER RICHARD PADRON . . . . . . . . . . . . . . . . . . . . . . 100 ENDNOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 ca LO LO co cv 4- 0 cv cv CD cv Appraisal Company of Key West Page 3 Packet Pg. 2686 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUMMARY OF FACTS AND CONCLUSIONS Subject Property: 2855 Overseas Highway, Marathon, Florida 33050 Alternate Key 41396001 Property Type: Medical Office/Clinic Property Township/Range/Section: 66/32/09 -2 Overall Land Size: Site Sizes and Description y Per i311onroe Con. , Pr ert S.P. Street UplandSize LandSize No. Description Frontage Depth Sq.Ft. Acres ..... t Lot A-4,B-4 and D-14 Sombrero Sub.No.6,P.B.2-93,Metes&Bound 100.00 ;150.00: 15,000 0.344 � Total 100.00 15,000 0.344 Zoning District: MU-Mixed Use, zoning district, City of Marathon, Florida 0 Flood Zone: FEMA Map 12087C1378K February 18, 2005 � Zone: AE(Elevation 8 Feet) za to In co cv Improvement Size: 0 Subject Property-Building Improvements Summary Tax Construction GBA Cowred Year Appraiser's Use Type S%Ft. Entry SF Built GBA SF ty 2855 OSH,Marathonj Medical Office CBS/Masonry 5,778 : 646 ; 1972 5,832 r Total 5,778 646 5,832 N CD Highest and Best Use: Professional Office Use Date of Site Visit& Valuation Date: October 24, 2019 & January 6, 2020 Report Date: January 24, 2020 Appraisal Company of Key West Page 4 Packet Pg. 2687 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Value Indications: Reconciliation 2855 Overseas Highway, Marathon,Florida 33050 "As Is" Valuation Method: Fee Simple Estate Value Cost Approach Not Applicable Income Approach: $1,100,000 Sales Comparison Approach $1,000,000 "As Is" Market Value as of January 6, 2020 (Rounded): $1,040,000 Exposure Time: 6 to 12 Months based on a list price within 5 percent of appraised value and based on stable economic conditions. Extraordinary Assumptions: None Hypothetical Conditions: None 0 LO LO co cv 0 cv cv cv U Appraisal Company of Key West Page S Packet Pg. 2688 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL LOCATION MAP OF THE SUBJECT PROPERTY r yki w H, LO LO cV 0 c� Boot Ke)(Harbor To cv ' cV a+ U Appraisal Company of Key West Page 6 Packet Pg. 2689 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL AERIAL LOCATION MAP OF THE SUBJECT PROPERTY ;pot ut E 31 4; xi i 4 f G LO LO Co t at N N CD U Appraisal Company of Key West Page 7 Packet Pg. 2690 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL AERIAL PLAT MAP qPublic.net"" Monroe County, FL Overview � t!- r. triYr AA' � " Legerrld al r r �j �}� Cen2erflne ,�t N 4° �L� mil,,: rr s ?u Easements IN,91Hoaks � r � Lottines Road Center E Rights ofWay Shoreline cot CmdnBuildlnR re t 4 Key Narnes � ' S u bd;vi si ons �+ Y Parcels LO LO Parcel ID 003217AI-000CW Alternate ID 1396001 Owner Address FISHERMEN'S HEALTH INC Sec/TwplRng 09/6,61.32 Class PROF.BLDG 68555W57thAvc Property Address 2B55 OVERSEAS Hwy 5nULhMmml.FL3:314-3 r MARATHON Dhtrkt 50CM Brie(Tax SOMBRERO SUB fl6P82-9;3 MARATHON FLAt075A-A&B-A&L)-140R4118-5S5','5600RE306-1311r'12CPA806-1314GR1025;3:31 Description C7RlUe,4-1707OR109r7153OR28621091!84 N,i c, Noi i xr k ed I d fri 'F+ tv 6Rtc�rc lcC"Q;.S'�^ La,tUmr, nmdec ,d9,�.a.95.79:a5:'e:'�t e=ur�rra,i,v ScF1Tt.efCjeG Appraisal Company of Key West Page 8 Packet Pg. 2691 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL PLAT MAP OF SUBJECT PROPERTY � r��' .w.s C31 LO x n s. r 1 s Sit'� N E U Appraisal Company of Key West Page 9 Packet Pg. 2692 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY Street Scene Looking Westerly Along the Overseas Hi _ghwaX 0 c, co zs14 l4 CD CD 1 D CD N Street Scene Looking Easterly Along the Overseas Hi _hwgy Appraisal Company of Key West Page 10 Packet Pg. 2693 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY 1ST fG C ci j� , Street Scene Looking Southerly along 29`h Street 0 t� co N N `R�t i� s it9h jpr t�, CD CD N ' CD N s i ' E m to + t S� Cb Front View of Subject Property from Corner Overseas Hwy. & 29th Street Appraisal Company of Key West Page 11 Packet Pg. 2694 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY INA v vp I � i £��}n'y q '� 1"S),,�t4`ti 1�2�(N���q� { ar{ }t}'h��rrr�r)�£ r r�r£rr 11S ts'S i<<t rS` �!}£S' 1££���Sriri ai`• � West Side View of Subject Property Looking Southwesterly from 29`h Street 0 co r rt s} t£ �� N C44 N ar,y . �4 1 Rear View of Subject Property From Parking Lot Appraisal Company of Key West Page 12 Packet Pg. 2695 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY US�si. �u s v T T so Front Entrance View of Subject Property 0 LO LO co _ c44 c� � et � N E U Rear Parking Lot View from Adjacent Property Appraisal Company of Key West Page 13 Packet Pg. 2696 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY n fit •... Interior View of Reception/Waiting Room Area Looking at Rear Entrance 0 CIO cv 0 cu CD f iy CD N U Interior View of Reception/Waiting Room Area Looking at Front Entrance Appraisal Company of Key West Page 14 Packet Pg. 2697 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY (t �2 tyyrt�jj S �1A��'i�l�?lt'��£� �t�!xr lI ttttl '1( tt�lsil)r)Y f � fA 13111 t i'N m4,�M �� I fYr4c pp d t .u, Interior View of Office Check-in Area 0 LO LO co 0 f1; N 1 Interior View of Office Area Appraisal Company of Key West Page 15 Packet Pg. 2698 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY 1 v, e® y Interior View of TyVical Examining Room 0 LO LO i N 0 � cv cv CD c44 u Interior View of Rest Room Appraisal Company of Key West Page 16 Packet Pg. 2699 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY t2 N Interior View of Conference Room 0 LO LO co cV # 0 N r N CD NO Interior View of Break Room Appraisal Company of Key West Page 17 Packet Pg. 2700 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY s � Interior View of Laboratory Room 0 LO LO c rti ' i N 1 , � N u Interior View of Electrical Room Appraisal Company of Key West Page 18 Packet Pg. 2701 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY t111 tr t�iS�t,�'tl�t�lh'��� >` k lli�rtu,��t�ilt. tt t sU4 1 to y{ 1 SI iY FT,$,tq Interior View of Telecommunication Room 0 LO to cu CD CD CD N Interior View of Water Damage in Conference Room Appraisal Company of Key West Page 19 Packet Pg. 2702 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY 1 Exterior View of SPalling in Southeast Corner of Subject Property 0 LO LO CO 0 r _ cu +i i N _ yE. t- Exterior View of Damaged Side-covered Entrance Appraisal Company of Key West Page 20 Packet Pg. 2703 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY t � y J' yv - a ` 1 „ Exterior View of Rear-covered Entrance 0 LO LO co 2 - c� cv u Front View from Across Overseas Highway Appraisal Company of Key West Page 21 Packet Pg. 2704 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a)of the Uniform Standards of Professional Appraisal Practice. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning,and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. This confidential report is prepared for the sole use and benefit of the Monroe County Board of County Commissioners, is based, in part,upon documents,writings, and information owned and possessed by the client, Monroe County. This report is provided for informational purposes only to third parties authorized to receive it. Appraisal Company of Key West assumes no responsibility if this report is used in any other manner. � THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS: This appraisal report has been prepared to comply with our understanding of the requirements of the 0 Uniform Standards of Professional Appraisal Practice. LO Market Value is defined as the most probable price in cash(or its equivalency)for which the appraised co co N property will sell in a competitive market under all conditions requisite to a fair sale. Market value - assumes a normal or reasonable time for exposure on the open market. A survey of the subject property was not made available. Hence, the appraisers utilized the Monroe County Property Appraiser's records and plat map to obtain the dimension of the subject site. The building dimensions were measured on-site. The subject parcel has 100 linear feet along the Overseas Highway and 150 linear feet along the westerly side of 29`h Street. No responsibility is taken by this office for the accuracy or in regard to any questions on the nature of encroachments, encumbrances, or dissimilarities in measurement. Any maps or plats reproduced and included in this report are intended only for the purpose of showing spatial relationships. They are not measured surveys nor measured maps, and no responsibility for cartographic or surveying errors is assumed. The appraisers reserve the right to change the final indicated value herein,when a survey is made available and any encroachments and/or easements are noted. Appraisal Company of Key West Page 22 Packet Pg. 2705 O.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL This appraisal is to be used in whole and not in part, in particular,no part of the contents of this report shall be conveyed to the public through advertising,public relations,news,sales or other media,without the written consent and approval of the author,particularly as to valuation conclusions, the identity of the appraiser or firm with which he or she is connected. No responsibility is assumed by the Appraisers for matters which are of legal nature,nor is any opinion on the title rendered herewith. Good title is assumed as a title search was not made available. ' The property has been appraised as though free of liens and encumbrances, except as herein described. M Delinquent charges for solid waste collection,stormwater,or central sewage system or other liens against the subject property have not been considered in the valuation contained herein as a title search was not made available or conducted by the appraiser. The management of the property is assumed to be competent and the ownership in responsible hands. The Appraisers herein are not required to give testimony in court unless arrangements have been previously made thereof. 0 The Appraisers assume that there are no hidden or unapparent conditions of the property, subsoil, or � structures, which would render it more or less valuable. The Appraisers assume no responsibility for z LO LO such conditions, or for engineering which might be required to discover such factors. CO cv 0 Information, estimates and opinions furnished to the appraisers, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no respon- sibility for accuracy of such items furnished to the Appraisers can be assumed by the Appraisers. e( cv The Americans with Disabilities Act("ADA")became effective January 26, 1992. The appraisers have not made a specific survey or analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property,together with a detailed analysis of the requirements of the ADA,could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraisers have no direct evidence relating to this issue, a possible noncompliance with the requirements of the ADA in estimating the value of the property has not been considered. Appraisal Company of Key West Page 23 Packet Pg. 2706 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the Appraisers are affiliated. The undersigned Appraisers have no present or contemplated future interest in the property and the compensation is in no manner contingent upon the value reported. Possession of this report does not carry with it the right of publication or advertisement of any of its conclusions,nor may any except the applicantuse the same for any purpose without the previous written 2 consent of the appraisers or the applicant. s This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which the Appraiser is affiliated. This appraisal report is in conformity with the Uniform Standards of Professional Appraisal Practices and this appraisal assignment was not based on a requested minimum valuation, a specific valuation,or the approval of a loan. E The discovery of latent conditions is beyond the scope of this appraisal. Detection of latent conditions 0 requires the expertise of qualified persons such as architects and engineers. Latent conditions include, among other things, non-apparent structural conditions; presence of prohibited hazardous wastes; presence of radon gas, methane gas, asbestos, lead, petroleum products and other air, soil, or water co co N contaminants; and many other conditions too numerous to mention which may affect the value of the - property being appraised. An environmental site assessment report for subject property was not provided. The appraiser is not an expert in the field of environmental hazards. The appraiser has assumed that subject property is environmentally "clean." As a result, if environmentally clean up and/or remediation is required then the subject's market value could be adversely affected. ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraisers conducting this appraisal, CD nor the APPRAISAL COMPANY OF KEY WEST makes any warranty,express or implied,to property N covered by this appraisal, and neither shall have any liability to any person for differences in the value of the appraised property, or other damages, resulting from discovery of latent conditions (including those mentioned above and others) on, or in proximity to, the appraised lands. �t We hereby certify that to the best of our knowledge and belief the statements of fact contained in this report, upon which the analyses, opinions and conclusions expressed herein are based, are true and correct; also this report sets forth all the limiting conditions affecting the analyses, opinions and Appraisal Company of Key West Page 24 Packet Pg. 2707 O.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL conclusions contained in this report; also this report has been made in conformity with the Appraisal Institute. CO LO LO CO 0 CD CD CD N Appraisal Company of Key West Page 25 Packet Pg. 2708 O.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL PART II FACTUAL DATA 0 CO 4- 0 N N CD u Appraisal Company of Key West Page 26 Packet Pg. 2709 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL FACTUAL DATA Purpose/Intended Use/Intended User: A. The purpose of this appraisal is to estimate the "As Is"Market Value of the Fee Simple of the subject property located at 2855 Overseas Highway, Marathon, Florida, Alt. Key 41396001, formerly know as Community Health of South Florida. The valuations herein are based on the recent site visit to the subject property on October 24, 2 2019 & January 6, 2020 and are subject to definitions, assumptions and limiting conditions herein. The intended use of this appraisal is for possible negotiations to purchase the subject property by Monroe County Board of County Commissioners. W The intended user of the appraisal report is Monroe County Board of County Commissioners. This appraisal is for exclusive use by Monroe County Board of County Commissioners. Parties that may receive a copy of the apprisal or review report do not become intended users unless _ specified by the client at the time of engagement. 0 B. Definitions: 1. Appraisal is the act or process of developing an opinion of value; an opinion of value. LO LO co 2. Appraisal Report is the written or oral communication of an appraisal; the document - transmitted to the client upon completion of an appraisal assignment. Reporting requirements are set forth in Standard 2 of the Uniform Standards of Professional Appraisal Practice. 3. Cash Equivalence is a price expressed in terms of cash, as distinguished from a price N expressed totally or partly in terms of the face amounts of notes or other securities that cannot be sold at their face amounts. Calculating the cash-equivalent price requires an appraisers to compare transactions involving atypical financing to transactions involving comparable properties financed at typical market terms. E 4. Extraction is a method of estimating land value where in the depreciated cost of the improvements on the improved property is estimated and deducted from the total sale price to arrive at an estimated sale price for the land;most effective when improvements contribute little to the total sale price of the property. Appraisal Company of Key West Page 27 Packet Pg. 2710 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL 5. Fee Simple Interest is absolute ownership unencumbered by any other interest, subject only to the governmental limitations imposed by the governmentpowers of taxation,eminent domain, escheat,police power, and taxation. 6. Leased Fee Interest is an ownership interest held by the landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor(the leased fee owner) and the lessee is specified by contract terms contained within the lease. 7. Market Value is defined by the Appraisal Institute as follows: "The most probable price which a specified interest in real property is likely to bring under all (n of the following conditions: CO a) Consummation of a sale occurs as of a specified date b) An open and competitive market exists for the property interest appraised E c) The buyer and seller are each acting prudently and knowledgeably 0 d) The price is not affected by undue stimilus LO e) The buyer and seller are typically motivated CO CO N 0 f) Both parties are acting in what they consider their best interest g)Marketing efforts were adequate and a reasonable time was allowed for exposure in the open market. h)Payment is made in terms of cash in U.S.dollars or in terms of financial arrangements comparable thereto; 1) The price represents the normal consideration for the property sold unaffected by special or creative financing or sale concessions granted by anyone associated with the sale." Appraisal Company of Key West Page 28 Packet Pg. 2711 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL C. Property Rights Appraised: This appraisal is made with the understanding that the present ownership of the property includes all the rights that may lawfully be held under a Fee Simple Estate. These rights are sometimes referred to in appraisal literature as the "bundle of rights." It includes the right to use, keep others from using,sell,rent or otherwise dispose of the property. The elements which have been included in this appraisal are the land and any existing improvements. D. Legal Description: According to the Legal Description for Subject Property referenced from the Monroe County Clerk's office and recorded in Book 1084, Page 1707426 dated February 15, 1989, the subject property legal description is as follows: Lots A-4, B-4 and D-14, SOMBRERO SUBDIVISION NO. 6, according to the Plat thereof as recorded in Plat Book 2, Page 93, of the Public Records of Monroe County, Florida. E. Ownership of the Subject Property: According to the Monroe County Property Appraiser's Records, the subject property is owned by: O Fishermen's Health, Inc. 6855 SW 57th Avenue LO South Miami, Florida 33143 co co cv O F. Sales History, Contract for Sale and Active Listings: According to the Monroe County Property Appraiser's records, the subject property's sales history is as follows: C4r N Sales Nstory for Subject Properties T Sale OR OR Sales Sale tV CD Description Date Book Page Grantor Grantee Price Qualification tV SubjectRopetty 06/30/17? 2862i 108ITishemrn's Hospital,Inc. Fishemyen's Health,Inc. i $5,823,800! Unqualified SubjectRopetty 04/19/89 1089•, 153!Marine Bank ofMonroeCounty Fishennen'SHealth,Inc. QUA Unqualified E SubjectRopetty 02/15/89E 1084i 1707:Kay A.Se-,wll Mame Bank ofMonroeCounty QUA Unqualified U Neither of the above sales was considered to be arm's length transaction as it included multiple properties. This property has been owned by the current owners since June 30, 2017. There have not been any more recent transfers. According to the local multiple listing service (MLS Appraisal Company of Key West Page 29 Packet Pg. 2712 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL and Loopnet.com), the subject property has not been under contract for sale and purchase nor officially listed for sale according to the Key West Association of Realtors MLS. G. Active Listings: Below is a resume of active commercial office use listings through the Key West Association of Realtors Multiple Listing Service (MLS) within the middle Florida Keys market area. However, it should be noted that all of these comparable differ in overall size, gross building area as compared to the subj ectproperty and/or with different amenities besides having different _2 income sources than the subject. s Active Listing of Commercial Properties in the Marathon N MLS List Sq.R/ Land VS $/SF Days Number NoperTy Address ': Key/1sl a¢d Nice GBA Sq.Ft. GBA Ladd On Market Status Comments (� Multi-tenant Located on the Overseas 584865 :11524 Overseas Highway::Marathon $749,999 6,806 25,000: 110.20E Highway with easy access and adequate ..... $ $30.00 214 Active parking. ar mg.Building was partially darnaged fiom Hurricae hula. ...........i................................i.................................................. ....... ..... ......... ..........._ Multi use ConmierciaLProperty with with 3 Units,Completely Renovated with ADA 586235 i27970verseas Highway ;Marathon $895,000 2,520 5,600 $355.16 $159.82 124 Active Bathroonvs,Tile Floors,Impact Windows and Doors and Adaquet Parking plus (13 Storage Area ...........:................................:...................................................... ..... ..........................................Mid Use Property with Two Buildings. Front Budding has 2,400 Sq.Ft of Office 31 584803 :13369 Overseas Highway;Marathon $1,245,000 5,640 56,628:$220.74 $21.99 223 Active Space with a 1,400 Sq.Ft.3/2 Located on the Overseas Highway with easy access and adequate parking.Budding was partially 0 _ _ _ _ _ _ ............................... _ _ damaged fiom Hurricane hula. 584910:6465 Overseas Highway ;Marathon $2,395,000 6,000 13,300'$39917 $18008 214 Active Connnercial Plaza in the Heart of Marathon. ...........:........................ ...............Two Year Lease in Place. ................................................................................................ wr Mean S27132 S97.97 194 .................................................. lO Median S28795 S94.91 214 LO Minimum S110.20 S21.99 124 ('V Maximum S399.17 S180.08 223 4F- 0 f/$ °m In analyzing the active listings of commercial and mixed use properties,it appears that they have been on the market from about 124 days to 223 days (7.4 months) with continued reduction in listing prices. The mid point of the listings is about six months. Well-priced properties have sold. The closed comparable sales analyzed for this appraisal indicated days on market from 5 to 661 days with a mean at 226 days and a median at 161 days. Survey of Market Participants The appraiser interviewed or obtained information from the following market participants including Claude J. Gardner Jr., (Berkshire and Hathaway Realty), Curtis A. Skomp, CCIM, (RE/Max),Brian Schmitt,Coldwell Bankers Schmitt Real Estate,and George Garrett,Marathon Appraisal Company of Key West Page 30 Packet Pg. 2713 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Planning Director. Other commercial Realtors,real estate investors,tenants and landlords,were also contacted in my research. Interviews with local shop owners and tenants reveled that they suffered during the whole month of September and October while the Florida Keys were in the recovery cleanup period after Hurricane Irma. The Florida Keys was essentially closed from September 9th to October V 2017. Many of the owners helped relieve the economic pressure by offering the tenants deferred rent for one or two months following the hurricane. Many owners and tenants received 2 assistance from FEMA and acquired SBA loans to assist them during the trying times. Furthermore, the County nor any of the other municipalities have received all of the FEMA reimbursements which have created a financial strain on the respective governmental entities. It appears that the market has recovered from Hurricane Irma, though it created a void in the workforce mostly due to the lack of affordable housing and the high cost of living. Realtors' indicated that showings are continuing with an average of prospective buyers. However, brokers' are optimistic with the high season in the coming months. E Historically, Key West and Monroe County have had quick recovery following past severe 0 hurricanes, including Donna, George, Wilma and now Irma. Generally, economic conditions � began to recover within months following the hurricane or the passage of the next winter which z LO is our high season. Most recently, extra cruise ships have been rerouted to Key West, because co co N often many of the Caribbean Islands have been negatively impacted. As tourism is the driving - economic force, we have many seasonal second home dwellers and many special events throughout the entire year. These include World Championship boat races, sail boat races, art shows, Hemingway and literary week, Poker Run Biker's week, Fantasy Fest (Halloween), fishing tournaments, Seafood Festival, Parrot' Heads annual song writers, Key West Theater, Key West Art Center, Key West Film Festival, Harbor Walk Lights, etc... H. Effective Date of Appraisal: January 6, 2020 (Site Visit October 24, 2019 & January 6, 2020) a E I. Date of this Report: January 24, 2020 Appraisal Company of Key West Page 31 Packet Pg. 2714 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL J. References: Information, estimates and opinions furnished to the Appraisers, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished to the Appraisers is assumed by the Appraisers. Relevant information for the subject property was the Ms. Carolina Pantin Barket, Manager of Real Estate Transactions, Ms. Kimberly Hysong, CHFM, Director, Facilities Operations and Mr.Mike Mathias,Supervisor Facilities Operations. Additional information was provided in the verification process by various real estate agents, buyers, sellers, land use consultants and market participants. s Exposure Time: n According to The Dictionary of Real Estate Appraisal, Sixth Edition 2015, the Exposure Time is "The estimated length of time the property interest being appraised would have been offered on the marker prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal USPAP Comment(2016-2017 ed.) A retrospective estimate based upon an analysis of past events assuming a competitive and open market. E MarketingTime: ime: An opinion of the amount of time it might take to sell a real or personal property interest at the 0 concluded market value level during the period immediately after the effective date of an � appraisal. Marketing time differs from exposure time,which is always presumed to precede the z LO effective date of an appraisal. Marketing time differs from exposure time, which is always N presumed to precede the effective date of an appraisal. (Advisory Opinion 7 of the Appraisal - Standards No. 6, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions" address the determination of reasonable exposure and marketing time.) Marketing Time: 6 to 12 months based on a list price within 5 percent of appraised value and based on stable economic conditions. Exposure Time: Equal to present marketing time. `". Advantages and Disadvantages of Subject Property Stren hs • Neighborhood is at least 85% developed with very limited potential for new construction of competing large professional office or medical space, especially adjacent to Fisherman's Hospital and Monroe County and State Offices. Appraisal Company of Key West Page 32 Packet Pg. 2715 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL • Great Access to Marathon Airport • On-Site Parking • The Marathon market has appreciating land values, which is a significant barrier to entry • Great Access and Exposure from the Overseas Highway • Located in the old town section of Marathon near the Hospital,Schools,Churches,Library,Parks and County and State offices and services. Weakness: • Finding reliable workforce and even management is difficult in the Florida Keys due to the extremely high cost of living and lack of affordable housing. • Limited market forprospective tenants as the subjectproperty encompasses larger office spaces. 0 LO LO co cv 4- 0 cv cv CD cv U Appraisal Company of Key West Page 33 Packet Pg. 2716 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT'S MARKET AREA (NEIGHBORHOOD)ANALYSIS The subject property is located in the incorporated area commonly known as the City of Marathon, Florida. Marathon was incorporated on November 30, 1999. It is located approximately at mile marker 52.5,about 48 miles northeasterly from Key West,stretching across twenty-seven bridges. The property is located in a mixed commercial/residential waterfront area in the heart of downtown Marathon's commercial area providing all of the services necessary within an urban area. Being a main population area of the Middle Keys, Marathon offers much in terms of commerce,residential housing and service 2 as well as industrial areas. The Middle Keys market is an area of mixed zoning and residential uses which services the demands and requirements of the population. The subject property is located on the southerly side of the Overseas Highway also known as U.S. Highway No.I. The commercial uses along U. S. Highway No. 1 include hotels, motels, restaurants, professional offices,hospital(adjacent easterly from the subject),retail shops and strip shopping centers, tourist-related businesses, service establishments,recreational and commercial marinas,marine related uses, and mobile home parks. The surrounding uses on Coco Plum Drive consist mostly of marinas, restaurants, and marine related businesses. E The property is located about two miles westerly from the Marathon Airport. The Marathon Airport is 0 used for privately owned airplanes, as well as for light commercial traffic which services the population � area. The airport was upgraded with a new terminal. Although the main commercial carrier at the Z LO Marathon Airport has ceased service,negotiations are on-going. Rent concessions and other perks will co co N have to be made in order to secure the new carrier. Marathon also offers the only substantially sized - shopping district for the Middle Keys community, having two large commercial shopping centers, as well as many smaller strip shopping centers,utility company offices, Monroe County offices, schools, etc. �t N Throughout the Florida Keys, only Key West and Key Largo provide a similar variety of services. The subject property is located within the hub, Central Business District, of Marathon. Marathon has developed steadily over the past ten years;this development accelerated as a result of the conversion of the Overseas Highway from a two-lane to a four-lane highway in the late 1980's and early 1990's through Marathon. Marathon has recently opened three major motel/hotels with marinas, as well as the redevelopment of older mom and pop motels. The most recent franchise hotel is the Courtyard Marriott which purchased an adjacent mom and pop motels which also include a marina. In 2015 the luxury Hyatt Hotel and Faro Blanco Marina were opened. This was a historic luxury resort built in the 1050's that was totally rebuilt Appraisal Company of Key West Page 34 Packet Pg. 2717 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL with 125 rooms, marina and gourmet restaurant. Most recently the Singh development group built a 199-unit ocean front resort with marina, spa and luxury hotel, the Isa Bella Beach Resort and Spa. Furthermore, there are additional proposed developments anticipated that within the next few years. Saply and Demand The supply of commercial space is limited and new commercial construction has been restricted since 2 1996 due to a commercial building moratorium that had been in effect until the commercial rate of L growth ordinance (NROGO) was implemented. Therefore, the current and ongoing regulations are 2 expected to place upward pressure on price levels of existing units. Even to a greater extent because of the difficulty and high cost in obtaining building permits for new construction, both residential and commercial Commercial real estate experienced a decline of 30% to 60% since the economic downturn in 2007- 2008. Although it appears that generally the market reached the bottom at the end of 2011 and stabilized in 2012. However, there have been more transactions since 2012, lessening the supply and indicating a strengthening market. However, some sectors of the market have not completely recovered from the peak in 2005. E IMPLEMENTATION OF COMMERCIAL R.O.G.O. Sales of vacant, commercially zoned parcels within the Florida Keys have dwindled over the past few LO years due to a commercial building moratorium which existed until 2002,when the non-residential rate co co N of growth ordinance NROGO went into effect. This system is similar to the residential R.O.G.O.system - in that it awards building permits based on a point system. The Non-Residential Rate of Growth Ordinance (N.R.O.G.O.) was enacted with an effective date of January 1, 2002. Under the new and current regulations the maximum allowable square footage for new commercial development is 2,500 square feet per parcel. The ordinance does provide for Administrative Relief in the event that the applicant is not successful in obtaining an allocation award, a permit, within at least three of four consecutive annual allocation periods. The remedies for relief are to grant the applicant an allocation award, offer to purchase the property, or suggest such other relief as may be necessary and appropriate. "' SUply and Demand Analysis for the Subject Property: The subject is a medical office use property,which was vacant at the time of our site visit. The subject is a few parcels westerly to Fishermen's Community Hospital and is close proximate to Monroe County Offices, Court House,Library, State of Florida Office the city center and shopping areas. The potential for new competing facilities is remote. The subject is being maximized as professional offices. The Fishman's Community Hospital was recently acquired by Baptist Health South Florida.The hospital has Appraisal Company of Key West Page 35 Packet Pg. 2718 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL been closed due to storm damage from Hurricane Irma(September 10,2017)field hospital has been set- up on the grounds of the facility and can service a small number of patients. The new hospital recently broke ground with an estimated cost in excess of$40 million. General Economic Conditions: The Florida Keys have flourished over the past two decades with tourism developing as the County's T primary economic base. The County has had tremendous success with its advertising efforts and attraction of tourists of all Nationalities. Hotels and motel facilities in Monroe County have flourished _2 over the past decade. However, we experienced a decrease in tourism as a result of the very active hurricane seasons of 2004 and 2005, followed by the national decline in the real estate housing market and the economic recession and credit crisis. However, the tourism and the real estate market have rebounded,especially the hospitality industry. Furthermore,the traffic count has slightly increased and is stabilizing since 2010 to the present. Conclusion: In summary, the subject property is located in the Middle Keys where there is a concentration of services, employment and shopping. Only Key West and Key Largo offer similar services, each is located 40 to 60 miles away. Residential uses are located off the highway;these neighborhoods,as well as neighboring communities support the commercial businesses in the area. In 1994-1995, Monroe 0 County moved some of its divisions to a new facility in Marathon across the highway from the subject property. Therefore, increasing the employment population, which requires more goods and services. Marathon's central location is appealing, especially with the increasing availability of services. The co co N neighborhood may be undergoing an increase in desirability in the future due to improvements with - respect to goods and services and its accessibility to the mainland. Two such developments, representative of Marathon's central region location,include the opening of Home Depot,Office Depot and two Walgreens Drug stores. Most recently the Winn Dixie is remodeling and expanding their store. Furthermore, the development of Knights Key with a new resort hotel with a large marina. The surrounding structures are generally well maintained in average to above average condition. The considerable amount of automobile traffic along U.S. Highway No. 1, a.k.a. the Overseas Highway, provides good exposure to this area. I anticipate continued improvement in the general quality of the neighborhood, particularly with the increased demand for this type of property due to building and environmental restrictions placed on all properties in the Florida Keys. e( The following average daily two-way traffic data for U.S. Highway No. 1 was provided by the State of Florida Department of Transportation: Appraisal Company of Key West Page 36 Packet Pg. 2719 O.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Average Daily Traffic Count Both Directions) D.O.T. Station Location 2010 2011 2012 2013 2014 2015 2016 2017 2018 66 SR 5/US 1,100'N 7 Mile Bridge 12,600 13,400E 12,300 15,100 16,700 17,900 15,500 12,800E 11,900 ................................................................................................................................................................................................ _ 65 SR 5/US 1,3250'N Channel 5 Bridge 12,000 12,000 12,200 10,400 11,200 11,600 13,300i 11,500E 12,900 45 SR 5/US 1,20Y N Ke Vaca Bride 20,000 24,000E 25,000 29,500 29,500 27,000 27,000E 24,000E 24,000 CO CJ LO LO CO cV 4- 0 c� cV r cV CD cV Appraisal Company of Key West Page 37 Packet Pg. 2720 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL DEMOGRAPHICS In terms of demographic trends taking place in Marathon,Florida,the following data has been compiled by from the CCIM Site To Do Business within a 45-mile radius of the subject property: eyrie ■ !a 2855 Overseas Hwy,Marathon,Ronda,33050 Prv„pared 13y Esn Ring;:45 mile nadlus Summary Census 2010 :2019 2024 PoPulaeigrp 55,468 55,746 56,564 Households 24,393 24,418 24,749 Families 13,974 1..3,836 13 97i5 Average Household Size 2,21 2,22 2.22 Groner 10.opi.d H-ing tllnits 13,895 13,117 1..3,558 Renter ueeup ocl Haas€ray Units 10,498 11,301 11,191 Median Aim 46.1 489 49..4 lrmnda;2019-2824.Annual lisle Area State National Popk,latlon 0.291'4 1 37°.� 0 77,a (B Households 4.27% 1..31% Farr!ilies ✓}.2o% 1.26%, 0.68% wr Owner IIHs 9.66% 1..60% 0.92% c Median Hausehvld Income 2,71% 2 37% 2 709-b ¢' 2019 2024 Households by Income Number PPtcem Number Pertert ¢r r$15.,Nfl 2,094 8.6% 1,848 7.5% $15,000-$24 999 1„328 5.4% 1,194 4:61% L. $25 000-$34,999 1,842 7 S% 1,S76 6..4% g35 000-$47,.J99 3.,,579 14.7% 3,244 13.11b S 50,000-$74,999 3,886 15.9% 3,28Ct 13.3% $75,000-$99„999 4,057 18.6% 4„U9 1..7.3% $I okood-$145,459 3,670 1.9z% 4.13O 16.7% $150.000-$]55,999 1,507 &Z%o 2,202, 819% 9.200,000+ 2,454 10:0% 2,990 12.1.% Median H ausahold Income. $70,523 $84,617 Average Housetluld income $98,1.68 $113,473 Per Capita rre me $43,074 $49,649 Census 2010 2019 21124 LO Population by Age :.Number Percent Number perterrt Nombe, Percent LO 0.4 2,573 4.6% 2„262 4.1% 2,307 4.1% (V 5-9 2,239 4.0% 2„312 4.1% 2,230 3.gAb 10-14 2,285 4.1% 'c,400 4.3% 2,404 4.2% is..-19 2,541 4.6% 2,u93 3,8% 2.296. 4,1% 2i1=24 2.,778 sz%'' 2,356 A.2".41 2,2.75 4.0% f) 2S-34 6,753 12.2% 6,641 13.9% 6,259 11.11% 35-44 7.,543 13.6% 6„825 12.254 7,129 12.6% 45-94 90853 17-8% 6,1.37 14,6% 7,430' 13.1% 55-54 9,846 17€% 10.423 18.7"".5 9,777 17.3% 65-74 5,596 10:1% B'050 14 % 9,008 1 S 9'% 75-84 2,608 4.7% 3,260 5.6% 4,312 7.7% CV 85# 854 1.5% 990 1.81. 1,072.. 1.9% corms 2010 2019 21124 T- CD pace and EtY11Afc1ty Numbmn ft,orrit Numtmr 1-ircent Nurns,., Percent White Alone 49,969 g0 14v 4€1,855 $7 6% 4R 844 ".4% CD dla¢&.A1;tne 21932 513% 31,618 6:.5% 4,045 7,2% Arnercan lhduin Alone. 211 0.4% 244 0.41. 284 4.S% (V Aswri Alane 646 1.2% 836 1.5% 961 1..7% Pacillc Islander Alone 47 fY.l Po 49 C1.i% 54 C1.1°+b Sorre Other Race:AtGne. (191 1.:21% 902 #..:6"'to 1.„004 1.,89q, Two o,More Racers. 972 1.S% 1,237 2.25E 1 3" 2.4% Hlsp anlc Origin{Any Rd cc) 11,714 21.1°16 14,G66 26.:3% 1G,G.33 23.4% � flat.Note:1n 11-9_ 1'C Sl r, IA 901&1 � sau 11 S ,znwus P _ .us J;a e 5ui-ar It 1. _ ten.rsk ,xn,9 ai 0 7024, October 22.,2019. Appraisal Company of Key West Page 38 Packet Pg. 2721 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL (Desri- 2855 CS Lrseas Hwy,Masatli,[ire.,Monda,33050 Prepared by Esrti N Ring:.45 rtraile radius Trends 2019-2024 Aq W 2 V Area �ly i� St k 11if , �iCt e tlx: i,.�}�, Ii1S2;, }�i. ` USA [� 0 - "4pulatipn Households Families owner 3iHs Median HH Incpme Population by Age 1a i 14 9l E ra v 11 !t} a? t r �7 0 r a 11 �'`' l 2024 �! 0,4 5.4 107 14 15m19 20.24 25.34 3.544 45-54 SSR64 65�74 75,84 85+ !� LO 00 2019 Household Income 2019 Population by Race N o as _. UI N.&24K 70 .� S:.S19K-5 9 N 65,S+Ya S� e515K �� �. IM 14 4446Nb 4r7 N L G.L°r3 20 1 S 5.K-#4'JK N fG rr's. SLtRpt-419+�K 1Q.'. White. 0laCk Am trrd ZZ Pacific Othev. T o'+ 2014 Percent H!,"a.,rtir.Origin:26,3% U Sawa+Cc:.ti.S =.�n4us�uizbu.C+. tsutc;!,v.Gr Sra Farts yai die I r•�rf:,imrt s.';sa3u Yrrr 2�;4 aie13iS':'e+i- October 22,2019 Appraisal Company of Key West Page 39 Packet Pg. 2722 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL PROPERTY DATA ANALYSIS 0 LO LO 00 4- 0 cu N N CD Appraisal Company of Key West Page 40 Packet Pg. 2723 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL A. General Site Description: The subject site is a rectangular shaped corner parcel fronting on the Overseas Highway and 29`h Street at approximately mile marker 48.5. It is in close proximity to the Monroe County Offices,Courthouse and Library,plus Fisherman's Hospital . The subj ect property has been used as a medical office facility. At the time of our site visit,the property was vacant but had previously been owner-occupied by Community Health of South Florida. The appraisers utilized the Monroe County Property Appraiser's record and plat map to obtain the dimension of the subject property because a survey of the subject property was not made _2 available. The subject parcel fronts 100 linear feet along the Overseas Highway and 150 linear feet in depth along the westerly side of 291h Street. Thus, the subject parcel contains 15,000 square feet or 0.34 acres according. Furthermore, it should be noted that the subject property T shares a party wall with the adj acent building,Community Health of South Florida. Noresponsi- bility is taken by this office for the accuracy or in regard to any questions on the nature of encroachments,encumbrances,or dissimilarities in measurement. Any maps or plats reproduced and included in this report are intended only for the purpose of showing spatial relationships. The following is a summary of the subject site description. E Site Sizes and Description Per S.P. Street UplandSize LandSize LO No. Description Frontage Depth Sq.Ft. Acres LO 1 Lot A-4,B-4 and D-14 Sombrero Sub.No.6,P.B.2-93,Metes&Bound 100.00 150.00 15,000 0.344 N Total 100.00 15,000 0.344 0 L If and when, a survey is made available for the subject property, noting changes in the measurements used in this report,the appraisers reserve the right to change the final value. Any deviations from the sizes could possibly result in a change in value. Any maps or plats reproduced and included in this report are intended only for the purpose of showing spatial relationships. The appraisers reserve the right to change the final indicated value herein, if a survey is made available and any further encroachments and/or easements are noted. The plat map and aerial view are as follows: Appraisal Company of Key West Page 41 Packet Pg. 2724 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL PLAT MAP Ile T. ' 7- � �X" � � z r u § VAS&&� t � �Q lMr ' 4 � n , 5 s N WO LO co LO 71 V f'hrC sz'. N y, Appraisal Company of Key West Page 42 Packet Pg. 2725 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL AERIAL VIEW qPublic..net" Monroe County, FL y ^�� i„•. _ r"'77 Overview. s taw t�g��13�„Yt P , ( t� r la•1 t ii M iaVt sFr 1TV���i i i '` ,xt 3 r V r air t,?N • � 'h`v n i, 0,� ( \ p y 4 g�� ltrr 55 Sc a ra Legend �F5: r ,jie51 y � y� Centerline � Easements Hooks F+ t S Lat i s`rges KnadOent€r � RlghtsfltWay 'd ft CGndeBuilding Key Names � Subd3Wlsions. .� 1w`� A parcels LO S Ls3Alf �.1 00 f � : t Q IL Parcel ID 00321730 L000000 Alternate ID 13%001 Owner Address FISHERMEN'S HEALTH INC CV SectTwp/Rng 09/66/32 Class, PROF,BLDG 66555W 57thAvc r RrnpertyAddr€ss 2B55OVERSEA5H%" Sout;hM9ami FL'33143 CD MARATHON CD District 50CM CV Bre[Tax SOMBRERO SUB#6P82-93 MARATHON'FLALOTSA-4&B-4& 140R488-5595 0013 06-1311/12O5B06-1:37.40RI025-:321 Oescription ORIM4-17f37ORIO89-153Of32862-10E31,184 r,i¢ .,,��lus�nii7s.51 G7 E U t:iFF L1a.4 L,r,cicin::r.: i2:`,"9,5::7735Fk S1 tt3 Gae°ve=%et by St hneider Appraisal Company of Key West Page 43 Packet Pg. 2726 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL B. Location Analysis: The subject boasts a good corner location on the Overseas Highway in close proximity to Monroe County Offices and Count House,Library, State Offices,Fisherman's Hospital and the Marathon Airport. C. Access: Subject Property has excellent access from the Overseas Highway or 29`h Street in Marathon. The Overseas Highway is the main highway connecting the Florida Keys with the mainland 2 South Florida. The Overseas Highway provides access to 29`h Street which connects to the subject property. D. Topography A soil engineering report was not made available to us, it appears that the site and most of the property in the immediate neighborhood show no signs of any subsurface instability. The subj ect site is level and slightly below the street grade with adequate drainage. E. Easements and Encroachments: Without the benefit of a survey, the appraisers are unable to report any easements or encroachments for the subject property. Hence, the appraisers reserve the right to change the 0 final indicated value herein, when and if a survey is made available and any encroachments >% and/or easements are noted. z LO co F. Flood Zone: According to FEMA maps, the subject parcel is located in FEMA Flood Area AE, Elevation 8 feet as defined by the Federal Emergency Management Agency,Flood Insurance Rate Maps of Monroe County, Florida, Map Number 12087C1378 K, dated February 18, 2005. Monroe County does participate in a National Flood Insurance Program and is covered by a regular program. The reader is cautioned that the subject's flood zone should be verified by a vendor's report as required by Federal regulations. N An elevation certificate for the subject building improvements was not available. It appears most of the structures do not meet required flood elevations. If the subject improvements do not meet flood regulations and if the improvements are destroyed beyond 49.9% of their market value (improvements only),then the structures would be required to meet flood elevation regulations in effect at the time of reconstruction. Appraisal Company of Key West Page 44 Packet Pg. 2727 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL FLOOD MAP FOR SUBJECT PROPERTY LEGEND rVV — \1r� I Ijk LO LO t \1 � a CV R \( k\f�(�� t��43hY v�sitt yfs�i!t(1f# W FIRM TLERE INSURANCE RATE YAM ikG t?s It\(\S :wrcwn MNYY+m At ars Cy SS?? r N i i N W MAP Arm ITROWNINFAM Appraisal Company of Key West Page 45 Packet Pg. 2728 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL G. Utilities: The subject parcel is serviced by public water and electric utilities, sewer collection is provided by City of Marathon Wastewater District, with the private sector providing cable TV and LP bottled gas. As noted in the non-ad valorem tax section of this report the subject property is being assessed, an impact fee for the installation of the stormwater collection and wastewater treatment facility with the City of Marathon. This system services the entire City of Marathon. H. Zoning: The subject property is located within the Mixed Use zoning districts as follows: 1. Section 103.09. Mixed-use Districts The City of Marathon has two(2)commercial districts to accommodate commercial and retail uses. The commercial areas are divided into the Mixed-use (MU)Zoning District and the Mixed-use-Maritime (MU-M) Zoning District. a. Mixed-use (MU) Zoning District: The MU zoning district is designed to accommodate a wide variety of commercial and retail activities that will result E in the most efficient and attractive use of the City's historic business district and the US 1 corridor, in an effort to recognize the role of US1 as the City of 0 Marathon's "Main Street". Specifically, this district provides for land uses that >% have a strong pedestrian-oriented character,with a mixture and concentration of z LO specialty shopping,transient lodging,retail,personal service,restaurant,cultural, co co N fishing industry,affordable housing and entertainment uses in the Old Town area. - The MU district also provides for large-scale retail and commercial business opportunities in other areas,including larger shopping centers,specialty shopping centers, individual multi-tenant commercial buildings, automobile services and sales,fast food restaurants,affordable housing residential uses,transient lodging and other retail establishments that serve the community at large. The (MU) district is designated within the Mixed-use Commercial (MUC) future land use category on the Future Land Use Map (FLUM). N Appraisal Company of Key West Page 46 Packet Pg. 2729 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL ZONING MAP �{1�r P iiiit 1t�� 5 �i 1 j111��AVi11{t� c `t Isl)J� 1` � � I�li3f t'�}31IIi 1 1 at ax ,��t ���t t 1 ` Lhrary loaat�o "a lipVki, ��ro 41l43 � g,? a i , rx r �4 C LO r f' LO 1 ''Al h " 0 4 cu Fo N4 City of Marathon,Florida N Official Zoning Map Series _ - 0125 025 05 075 T— PANEL 1 M.�� CD CD Appraisal Company of Key West Page 47 Packet Pg. 2730 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL FUTURE LAND USE MAP City of arGI.tho ra- 4. Future Land Use Map - Panel 1 FUTURE LAND USE LO AIRPORT \ �' t LO t� CONSERVATION �1. I ''I �.,_.�., N INDUSTRIAL , MIXED USE COMMERCIAL PUBLIC w 9 RECREATION �r _.._.—� =" .. �..i'`.7- �. RESIDENTIAL.HIGH � 1}M RESIDENTIAL MEDIUM _.._ RESIDENTIAL LOW Ni P' #r7�iNrJ Atarh 6,2U8.Y ;1 626 CE I5 1 E12� r/9Frf11:".ii13 Miles N N U Appraisal Company of Key West Page 48 Packet Pg. 2731 O.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL L Real Estate Taxes & Assessment: Monroe County Property Appraiser's records indicate the following assessments at the subject property for 2017,2018 and 2019. The Subject Property tax assessments remained the same for 2017 and 2018,but the 2019 assessment increased by 10 percent. The tax assessments and tax burdens are as follows. The Monroe County tax record for 2019 was not available at the time of this report; thus, the 2019 tax burden was not provided but the millage rate was established at 9.75140 per$1,000 of assessment. Real Estate Assessments & Tax Burden 2855 Overseas Highway,Marathon,Florida Parcel No.00321730-000000-Alternate Key 1396001 Real Estate Building Msc. Total StormWater Wastewater Tax Total Tax Tax Year Land Lnprov. Imprv. Assessment Assessment Assessment Burden Burden ' Millage 2017 i$778,7701 $01 $01 $778,770 i $360.00 i $1,255.001 $0.00 i $1,615.00 9.4163 20181$778,770i $0i $01 $778,770i $360.00i $1,255.001 $7,314.821 $8,929.82 9.3280 2019i$375,000i $472,0661$14,735i $856,647i $360.00 $1,255.00 $8,370.75 $9,985.75 9.4163 Real Estate Tax Analysis For 2018 0 $/S.F. Total Assessment per Sq.Ft.of Building Area: 5148.26 LO Total Assessment per Sq.Ft.of Site Area: 557.11 co Total Burden per Sq.Ft.of Building Area: SIA 0 Total Burden per Sq.Ft.of Site Area: $0.56 CU Based on 2019 the millage rate of 9.4163 per $1,000 for the subject property, the total 2019 assessed value for the subject property is $856,547 with the real estate tax burden of$8,370.75, plus $1,615.00 in Non-Ad valorem assessment for a total 2019 tax burden of $9,985.75 for subject property. The 2017 real estate tax burden for the subject was zero because at the time the property was tax exempt. However, the 2017 non-ad valorem was $1,615.00 was paid. According to the Monroe County Tax Collector's web site,the taxes have been paid. A copy of the 2019 County real estate and non-ad valorem tax assessment is included in the Addendum section of this report. There was no tangible tax on the subject property as the tangible property value was less than the exemption of$25,000. However,the appraisers were not provided with a title search for the subject property. Appraisal Company of Key West Page 49 Packet Pg. 2732 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL REAL ESTATE TAX ASSESSMENT & TAX BURDEN € DANISE D.HENRIQUEZ C.F.C. 2019 Paid Real Estate MONROE COUNTY TAX COLLECTOR NOTICE OF AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS O m ACCOUNT# = N 1396001 50CM 1396001 uCOi o J ow o= FISHERMEN'S HEALTH INC 0855 OVERSEAS SHwy 2 6855 SW 57th Ave Ste 600 2855 OVERSEAS Hwy a South Miami,FL 331 43-351 8 m SOMBRERO SUB#6 PB2-93 MARATHON FLA LOTS u A-4&B-4&D-14 OR488-6691660 OR8 06-1 3 1 111 2 OR806-1314 O o o a_ m'm •• • • a SCHOOL STATE LAW 305-293-1400 1.5550 861,801 0 861,801 1,340.10 N SCHOOL LOCAL BOARD 305-293-1400 1.7880 861,801 0 861,801 1,540.90 GENERAL FUND 305-292-4473 0.7697 856,647 0 856,647 659.36 , F&F LAW ENFORCE JAIL 305-292-7017 1.7747 856,647 0 866,647 1,520.29 t8 HEALTH CLINIC 305-296-4886 0.0437 856,647 0 866,647 37.44 a MOSQUITO CONTROL 305-292-7190 0.4508 856,647 0 856,647 386.18 y W CITY OF MARATHON 305-743-6586 2.5900 856,647 0 866,647 2,218.72 Z SFWM DIST 800-432-2045 0.1152 856,647 0 856,647 98.69 N OKEECHOB EE BASIN 800-432-2045 0.1246 856,647 0 856,647 106.74 MIDDLE KEYS HEALTH CARE 305-292-4473 0.6000 856,647 0 866,647 428.32 s ¢1 EVERGLADES CONST PRJT 800-432-2045 0.0397 856,647 0 856,647 34.01 Z 2 z aka K s00 A3c o a TOTAL MILLAGE 9.7514 ADVALOREM TAXES $8,370.75 _ W AUTHORITYLEVYING •NE AMOUNT �y MARATHON STORMWATER 305-289-5005 y 360.00 MARATHON WASTEWATER 1,2,3,5,7 305-289-5005 ❑t ❑ 1,266.00 to to t. N r 0� NON-AD VALOREM ASSESSMEMS $1,616.00 See reversesidefor �` COMBINED TAXES AND ASSESSMENTS $9,985.75 important inftmatlon. Postmarked By P Dec 31,2019 Please Pay $0.00 IF PAID BY _ 1i' DANISE D.HENRIQUEZ C.F.C. 2019 Paid Real Estate tV MONROE COUNTY TAX COLLECTOd NOTICE OF AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS CD PROPEM III# ESCROWI MILLAGE CODE CD CD 1396001 50CM 1396001 ty N 00321730000000096632 .. FISHERMEN'S HEALTH INC 2855 OVERSEAS Hwy 6855 S W 57th Ave Ste 600 g South Miami,FL 33143-3618 SOMBRERO SUB#6 PB2-93 MARATHON FLA LOTS A-4&B-4&D-14 OR488-660/560 OR806-1311/12 OR806-1314 O z 1� CHECKS ON U.S.BANKS ONLY MADE PAYABLE TO DANISE D.HENRIQUEZ,C.F.C.TAX COLLECTOR•P.O.BOX 1129,KEY WEST FL 3 304 1-11 29 If Postmarked By Dec 31,2019 Please Pay $0.00 Paid 1 2/0 212 0 1 9 Receipt# 125-19-00002604 $9,586.32 Paid By BAPTIST HEALTH SOUTH FLORIDA Appraisal Company of Key West Page SO Packet Pg. 2733 (dems Duel aq!l /4sg ) ( 4 a 49Mjew) (A4un Rq) qqqZ jo Isla t -L - :4u9ua 3 44 .� M N i� p R1 ool�Iol�IoloI�'NI�IoI � �' o .i "Li p C7 o'�`IoIololol�Ia'�I�Im � � v3 v3 � mlolol�I°ilolo �I�I�I� e o o � og m a (Valolol"I" v la allo o 0 Pi C7 v3iv3�v3�� v3 v3 v3 � I I I I I I I I I I o'NI--�I�Ic�IoI�I�'NI�IN o ry o 0 d �I�ImImINIMINI�I�I�I� 06 N m o[-- Iolc�Ivl��a �I���IN � i"INiI�I�I�I�I� alolnl� o y e' �EaI�IaIwI°n'I� aI`�IoO1,IoN, N � '�:EA�EA iEAi�iEfli EAiEA �iEAiEAiEA [ I I I I I I I I R y z zI�IzI�2I-6 zi�izI [ I I I I I I I I A —i-o i--F—i--I--I-o-F—�--f— d°q a zI IzI IZI I IZI IZI o o d o d o z N z Z v3 v CZ CZ O z � z � 0 0 0 0 0 0 o � U'� o � o � oo � o � o z N z z a V] p z o z o z o N z o z o R$ o co ry o o ry z ao N m o m ` m m m o m coi a a°o allo o U z � � o � 0000000z O q zI I I I I I I I 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL The eleven closed comparable sales analyzed in the Sales Comparison Approach for the commercial office property indicated a real estate tax assessment per square foot of gross building range from $109.31 to $303.91 with a mean at$182.16 and median at$174.85. The current assessment for subject property is 82.0% of our indicated final value, which is reasonable. Hence,the appraisers utilized the actual 2019 tax burden in the Income Approach section of this report. J. Census Tract: According to Mr.Jim Anderson of the Tallahassee,Florida Division of the United States Census Bureau,Monroe County is not divided into Census Tracts;but rather`Block Numbering Areas". According to 2010 Census Maps, the subject property is located within Block Number 9713. K. Improvement Analysis: The subjectbuilding consists of a one-story CBS/masonry structure which contains 5,778 square feet of gross building area. As a survey was not made available, the appraisers took on-site measurements of the subject property. E The subj ectproperty is vacant atthe time of our site visit. The property has previously been used as a medical clinic and subdivided into examining rooms, conference room, offices, medical 0 laboratory and break room. The building has two main-covered entrances,in front with Overseas � Highway access and in the rear with access from the parking lot. The structure has a total of five Z LO exterior-covered entrances containing a total of 646 square feet. The exterior of the building is co finished with painted stucco and glass block lites around the front and easterly side. According - to the Monroe County Property Appraiser's records,the subject structure was built in 1972. The property has approximately thirty off-street parking spaces around the building, including a handicap space. A summary of the building description follows: e( cv Subject Property- Building Improvements Summary N CD Tax Construction GBA Covered Year Appraiser's Use Type S Ft. Entry SF Built GBA SF 2855 OSK Marathoni Medical Office CBS/Masonry 5,778 646 : 1972 5,832 Total 5,778 646 j 5,832 Appraisal Company of Key West Page 52 Packet Pg. 2735 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL The main structure consists of a concrete footer foundation with concrete slab at grade, steel reinforced CBS or CMU (Concrete Masonry Unit) exterior walls finished with painted stucco, while there are interior steel columns and beams and the roof deck is precast concrete with a membrane roof cover. The foyer is connected to the adjacent westerly building,which is notpart of the subject property herein. The foyer is 751 square feet or 13% of the overall gross building area. The foyer is CMU construction over a concrete footer foundation with concrete slab at 2 grade, plus a wood truss, hip roof structure with plywood roof deck covered by light weight L concrete tiles. All of the interior walls are finished with painted drywall or covered with wallpaper. The break room walls are covered with wood paneling. Some of the offices have wainscot and chair rail_ The ceilings are acoustical drop ceiling or drop-in panels with built-in florescent lighting. According to the tax records the subject property had a sprinkler system. However, our inspection did not indicate the existence of a sprinkler system. This was confirmed by Mr. Mathias, Supervisor Facilities Operations. The appraisers noted deferred maintenance as follows: Spalling on the southeast corner of the building, rotted or water damaged covered- entrance on the easterly side of the building,water damage on the northeast corner in conference E room. Overall the interior of the subject property was dated and in need of renovation. The overall condition of the building was considered average. There was significant deferred 0 maintenance detailed in the following pages. The Cost to Cure these items were deducted from >% the valuation approaches. z LO LO co A brief description of the subject improvements is detailed below: - N N N Appraisal Company of Key West Page 53 Packet Pg. 2736 O.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Subject Property -2855 Overseas Highway, Marathon, Florida Element Description Basic Structure: One-Story CBS/Masonry & Steel frame (Class C Building) ISO-2 & ISO-5 Use: Medical Office Use Year Built: 1972 Foundation: Reinforced Concrete Footer Floor Structure: Concrete Slab on Grade Exterior Walls: Concrete Block with Reinforced Pilasters and Bond Beams s Exterior Windows: Glass Blocks and Aluminum Framed Fixed Glass Exterior Doors: Metal Frame Doors with Fixed Glass. v, Roof Structure& Concrete with Membrane Roof Covering on Flat Roof and Concrete Cover: Tiles on the Hipped Roof Section (Wood Trusses) Interior Floor Finish: Ceramic Tile, Commercial Carpeting & Vinyl Interior Walls: Painted Drywall with Wallpaper, Some Wainscot Wood Trim Interior Ceilings: Acoustical Drop Ceiling with Florescent Lighting Electric Service: Appeared Adequate Electric Bathrooms: Four 2-Fixture Bathrooms, 15 Sinks in Examining Rooms plus Break Room Kitchen Sink 0 Air Conditioning: Central Roof To A/C Units LO LO co Construction Quality: Average Amenities: Asphalt Paved Parking Lot, Five Covered Entries, Concrete Sidewalk Around Perimeter �t N Improvements Condition: Average With Some Deferred Maintenance N Building Ages: Subject Improvement Description Building Age & Remaining Economic Life Remaining Year Effective Economic Economic Description Built Age Age Life Life Office 1 1972 47 15 45 1 30 Appraisal Company of Key West Page 54 Packet Pg. 2737 O.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Extras & Site Improvements: Approx. 30 off-street asphalt paved parking spaces around the perimeter. Fixtures & Equipment: The Fee Simple Value considers only typical fixtures and equipment including windows air conditioners. No personal property is included. Environmental Conditions: In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenance of the building or the M overall property,such as the presence of radon,asbestos insulation and/or existence of toxic waste, which may or may not be present on the property, has not been considered. The appraisers are not qualified to detect such substances. The appraisers are not an expert in the field of environmental hazards. An expert in the field is recommended if desired, as no environmental tests were made by the appraisers. ADA Compliance: The Americans with Disabilities Act("ADA")became effective January 26, 1992. The appraisers have not made a specific survey or analysis of this property to determine whether it will be in conformity with the 0 various detailed requirements of the ADA. It is assumed that the new >% structure and proposed units will meet ADA regulations. It is possible Za that a compliance survey of the property,together with a detailed analysis CO of the requirements of the ADA, could reveal that the property will not 0 be in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Floor Area Ratio: The subject's floor area ratio (FAR) is calculated by dividing the total gross building area by the land size. a N 0.385:1 (5,778 SF 115,000 SF) or 38.5%. Cost to Cure: We were provided with a copy of an Engineer's report prepared by Perez Engineering and Development,Inc.and Reynold's Engineering Services, Inc.,dated November 21,2019.The subj ectproperty had some significant deferred maintenance,spalling,and necessary repairs or replacements due Appraisal Company of Key West Page 55 Packet Pg. 2738 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL to damage from Hurricane Irma;which made land fall on September 10, 2017. The list and cost or repairs are as follows. 2855 Overseas Highway.Estimate Foundation and Floor slab — Foundation to wall construction joint F® — Demolish and reconstruct the adjacent sidewalks $$9,700.00 N Seal foundation/wall joint S1.300,00 — wicking action orconcrete W — Option: Seal top of slab S8 284.00 Walls—Spalling Tie beam,cracked blocks,minor cracks at wall base — Spalling repair 5112,000.00 — Glass block repair $400.00 0 — Corner spalling repair S1.200.00 (J Stucco repair 54 100,00 to to Interior beams and Columns N — repair spalling and further assessment on cmu front wall S 1,240M 0 tt7 — Option:replace top section with additional rebar S2.450.00 Roofins� — New tapered insulation,modified bitumen roof $6.000.00 r — New gutters and down spouts S430.00 N Rooroverhang-Gast — Remove and reconstruct wood framing, sheathing,and stucco $5.400,00 � roof overliana-south Remove and reconstruct wood framing, sheathing,and stucco SS_400.00 Appraisal Company of Key West Page 56 Packet Pg. 2739 O.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Roofing — Remove existing roofing and replace with new metal panel roofing$17.400.00 foyer overhan — Repair facade $12. 800.00 foyer columns — New base plate and lower T of column 3 400.00 — Option: Excavate and pour new foundation cap '3 200.00 z- Foyer retrofit strapping of roof trusses — Add strapping down to cmu 2 200.00 — Add strapping down to steel beam '3y� ,200,00 0 Adjacent prosy tie beams ap lling at foyer LO — Moderate spalling repair 'S$ 0a.00 LO 00 cv 4- Replace r irn n k r n r c c� 1 Door ,400.00 — Option: Remove glass blocks and add lintel $600.00 cv cv CD Subtotal S 187,070.00 `V Subtotal with 012tiODS 201 G00,00 "Total with profit and overhead S224,484.00 Total with all options,l2rofit,and overhead $241,920.00 Appraisal Company of Key West Page 57 Packet Pg. 2740 Appraisal Report 2855 Overseas Highway, Marathon, FL BUILDING SKETCH cz ----------------------------- E Overseas fthwa 0 LO LO 00 C44 4- 0 AREA CALCULATIONS SUMMARY BUILDING AREA BREAKDOWN Code Ilan fip,69" Net Sim Net Tabis [krakdown Ubtabis GRAI ri— fl— 517759 5777,09 PIP Cove r..4 Z,n tit 345,60 $2,20 x 34,76 2357,34 C,--d U t£y lio,39 1,50 M 60 154,so W:1k. V lei .56 40.54 0.66 2465.3 5 C44 V 1kw'v 467.92 0-5 CA x I �:0-64 0174 T I try 54,00 C.—d E.—j- 22D9.47 C44 CD C44 E Net BUILDING Area (rounded) 6778 4 Items (rounded) 5778 Appraisal Company of Kg West Page 58 Packet Pg. 2741 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL FLOOR PLAN ITJ T� OFFIC EXAM 1 f M r,,4 p JE EXAM 7L E -XA M EXAM ery LO 0 q A� BATH 99 IIAd C Ut7 � � kf `Aft ! r 1 Appraisal Company of Key West Page 59 Packet Pg. 2742 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL ANALYSIS, VALUATION AND CONCLUSIONS 0 STATEMENT OF HIGHEST AND BEST USE z LO LO 00 4- 0 cu N N CD c w Appraisal Company of Key West Page 60 Packet Pg. 2743 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL HIGHEST AND BEST USE In appraisal practice, the concept of Highest and Best Use represents the premise upon which value is based. The four criteria the highest and best use must meet are: Legally permissible; Physically possible; Financially feasible; and Maximum profitability Highest and Best Use analysis involves assessing the subject both "as if vacant" and "as improved." "As If Vacant": Physically Possible Use - The physical aspects of the land impose the first constraints on any possible use of a property. The Subject Property fronts along the southerly side of Overseas Highway and the westerly side of 29`h Street. The subject parcel has 100 linear feet along the Overseas Highway, 150 linear feet in depth along 29`h Street. Hence,the subject parcel contains 15,000 square feet or 0.34 acres. The physical aspects of the land impose the first constraints on any possible use of the property. 0 t� Leery Permissible Use -According to the Monroe County Zoning Map,the subject property is zoned LO MU: The MU district provides for large-scale retail and commercial business opportunities in other co co N areas,including larger shopping centers,specialty shopping centers,individual multi-tenant commercial - buildings, automobile services and sales, fast food restaurants, affordable housing residential uses, transient lodging and other retail establishments that serve the community at large. The (MU) district is designated within the Mixed-use Commercial(MUC)future land use category on the Future Land Use Map (FLUM). N r For further details, the reader is referred to the City of Marathon Building Department or the Land N Development Regulations. Within the MU zoning district,permitted uses include single family dwelling units, commercial retail and office and mixed-uses as noted above. Therefore, in our opinion,the feasible uses would consist of the permitted uses previously mentioned. Appraisal Company of Key West Page 61 Packet Pg. 2744 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Maximum Profitable Use- In the final analysis, a determination must be made as to which feasible use is the Highest and Best Use of the parcel as if vacant. In the final analysis, a determination must be made as to which feasible use is the Highest and Best Use of the parcel as if vacant. The Highest and Best Use is that feasible use which produces the highest (greatest) return to the land. Based on the current zoning, it is our opinion that if the site were vacant and available,the Highest and Best Use would be for a commercial/residential mixed-use development obtaining maximum utilization of the land as allowed by current zoning regulations. "As Improved": In the final analysis, the appraiser must determine if the land alone is worth more than the existing n T property "As Is"to determine if the improvements contribute to the overall property. The subject site has a rime location with Overseas Highway,US Hi Highway 1 frontage which offers good highway access P g Y � g g g Y as well as from 29`h Street to the subject parking lot. The subject's location and layout are attractive, especially for office or retail use. The existing improvements make a substantial contribution to the total property in excess of the value of the site. Therefore, no alternative legal use would economically justify removal of the existing improvements. Thus, in our opinion the subject property's Highest and Best Use is "As Improved"as 0 an office. LO LO co 4- 0 D CD CD N CD Appraisal Company of Key West Page 62 Packet Pg. 2745 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL APPRAISAL DEVELOPMENT AND REPORTING PROCESS SCOPE OF WORK There are three typical approaches to value to consider in each appraisal assignment. The three traditional approaches to value are the Cost Approach,the Sales Comparison Approach and the Income (Direct Capitalization and/or Discounted Cash Flow)Approach. The three approaches to value are not always applicable to the assignment; however, the three approaches to value are always considered. All appraisals begin by identifying the subject property (property to be appraised) and the appraisal problem. Data relevant to the subject property is obtained from various sources including but not limited to: the Monroe County Property Appraiser's Office, surveys,building plans and specifications and the property owner. If possible, more than one source is utilized to confirm information. Improvements, if applicable, are inspected and measured by the appraiser. If and when building plans or sketches are made available,the measurements are verified for accuracy. Land size is based on recorded plat maps, Monroe County public records, legal descriptions or surveys (when available). The local geographical market was researched and analyzed. E The appraisers describe the building improvements in detail, if applicable;these descriptions are based on a physical inspection and/or plans and specifications. The appraisers are not a contractor nor 0 structural engineers;therefore,structure soundness or damage cannot be warranted. The appraisers will � note any apparent or potential problems such as deferred maintenance, water damage or spalling. Z LO LO co The Cost Approach consists of combining the estimated value of the land,based on comparable sales, - with the depreciated value of the improvements. The vacant land sales are always inspected. The cost of the improvements is estimated by utilizing a cost service, Marshall and Swift/Boeckh, LLC, plus knowledge of costs to construct obtained from local contractors. �t N Exterior site visits of the comparable improved sales are always made; interior walk-through visits are made when possible. Sales prices for the comparable sales are obtained from the public records. Prices are customarily confirmed with a party to the transaction, i.e., buyer, seller, closing agent/attorney, or real estate agent. The public records are researched for mortgage terms and information. E The comparable sales are researched utilizing First America Real Estate Solution and CRS Data, (FARES),FLEX MLS and LoopNet.com are computerized MLS(Multiple Listing System). All sources use data from the Monroe County Property Appraiser's Office,as well as,from the public records. The data is verified and compiled into sale sheets located within this report. Additional data sources include: newspaper clippings and the National Multiple Listing Service. Real estate agents in the market area Appraisal Company of Key West Page 63 Packet Pg. 2746 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL are interviewed for the most current information on sales and listings. All of the information is analyzed in preparing the report and is utilized in supporting the indicated value. The reader of the appraisal should be made aware that the valuation contained herein is based on a specific date. The value estimated on the specified valuation date will likely differ from the value one, two or three years in the future or in the past. The reader is advised to review the Assumptions and Limiting Conditions in Section, as well as, the Certificate of Value. Finally,the three indicated values developed by the approaches, are reconciled to produce the final esti- M mate of value. A brief description of each of the approaches to value follows: CO LO LO CO 0 CD CD CD N Appraisal Company of Key West Page 64 Packet Pg. 2747 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL THE COST APPROACH The Cost Approach is based on the principle of substitution, the belief that a purchaser would not pay more than the cost of acquiring a similar site plus the cost of construction a replica or similar structure. "The Cost Approach is based on the understanding that market participants relate value to cost. In the Cost Approach,the value of a property is derived by adding the estimated value of the land to the current 2 cost of constructing areproduction or replacement for the improvements and then subtracting the amount of depreciation (i.e., deterioration and obsolescence) in the structures from all causes. Incentive for -2 coordination by the entrepreneur is included in the value indication. This approach is particularly useful in valuing new or nearly new improvements and properties that are not frequently exchanged in the market. Cost Approach techniques can also be employed to derive information needed in the Sales Comparison and Income Approaches to value. The Cost Approach is determined by taking the value of the land and adding to it the depreciated value of the present improvements. This could be restated as: Replacement Cost New (-) Depreciation (+) Land Value (_) Cost Approach Value The current costs to construct the improvements can be obtained from cost estimators, cost estimating 0 publications, builders and contractors. Depreciation is measured through market research and the application of specific valuation procedures. Land value is estimated separately in the cost approach."' LO The land value is determined by analyzing recent sales of vacant tracts within the subj ect's market area. CO CO N 0 The Cost Approach was not considered applicable in the case at hand. There can be complications in applying this approach, because identifying sales of vacant land to develop a value indication for the subject property can be difficult. In the case at hand, the scope of work involves the estimated Depreciated Cost of the improvements in a separate report. Hence,we have deemed the Cost Approach inapplicable to the valuation herein. N N U Appraisal Company of Key West Page 65 Packet Pg. 2748 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL THE INCOME APPROACH The Income Approach to value presumes that no prudent buyer will pay more for the subject property than the capitalized rental value attainable through ownership of the property. The Income Approach represents the value an owner may consider paying in order to gain the benefits and profits of the business as well as that of the real estate. The buyer will be willing to pay the present value of what he 2 considers those future benefits to be. This approach has greatest application when the property being L appraised is a type that purchasers buy for investment purposes. In the case at hand,the subj ect property _2 was vacant at the time of our site-visit. Therefore, only the Fee Simple Interest is included herein, as the subject unit is not considered to be leased. The Direct Capitalization Method takes into consideration the current estimated net income, which is capitalized at a rate of return for similar property or investments of comparable risk,to indicate the price that a prudent and knowledgeable investor would be justified in paying for ownership. The traditional Direct Capitalization Method was considered appropriate in valuing the subject property. Income Analysis: The Income Approach was based upon market rate rental rates for the commercial units in the subject's market area. c c, This report contains the results of our investigation and analysis made in order to furnish an estimate of the"As Is"Market Value of the Fee Simple Estate of the subject property described herein. The Fee co co N Simple Interest is the unencumbered value of the subject property;basically,market rents and terms are - considered with no regard to existing leases and terms. The subject property was vacant at the time of our site-visit and previously owner-occupied. Therefore,only the Fee Simple Interest is included herein. However, the reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. N In projecting the subject property's potential income and expenses, we relied on market revenue and N expense data available for comparable operations because historical financial data was not made available. E The appraisers projected a one-year stabilized net income for the subject property based on market data and comparison to most comparable rental data available. Then, we capitalized net income into value utilizing a market extracted overall capitalization rate(OAR). In short,the Direct Capitalization Method utilizes the net annual operating income that the property is expected to produce. This estimated net Appraisal Company of Key West Page 66 Packet Pg. 2749 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL income is capitalized, according to prevailing rates of return on similar property or investments of comparable risk, to indicate the price an investor would be justified in paying for ownership. Analysis of Potential Commercial Rental Income: The subject property is an office use property with on-site parking. The subject property consists of a single tenant professional office use property. Typically, most commercial office properties are leased on a triple net basis. In a triple net lease, the tenant is responsible for all utilities plus a pro-rata share of the real estate taxes, building maintenance, and hazard insurance, while the landlord is usually responsible for property management plus reserves for replacements. Hence,the operating expenses are reimbursed by the tenant as additional rent above the base rent. We have analyzed the following office rental comparables to project the potential rent income for the subject property. n Commercial Market Rental Comparable Office/Retail Comparables Rent Annual Comp. Size Monthly Annual Rent Lease _ No. Location Use Sq.Ft. Rent Rent Sq.Ft. Terms 1 E5701 Overseas Hwy., #4, Marathon Office 947E $1,681 $201172' $21.30' NNN 2 '5701 Overseas Hwy., #7, Maratho_n Office 2,000. $5,149 $61,788 $30.89 NNN ......... ..................................... ......................................................................;...................:...........................- tJ 3 ::11296 O\erseas Hwy., Marathon Office 6,732 $15,646 $187,755: $27.89` NNN[*] ....................................................................................................................,..................................... ....................................... ......... 4 E5171 Overseas Hwy.,Marathon Service 9,175E $14,321 $171,852. $18.73 NNN[...*.] Mean $24.70LO LO Median $24.6000 Minimum $18.73 [*]Adj.for NNN Maximum $30.89 c� r N CD Appraisal Company of Key West Page 67 Packet Pg. 2750 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Comparable Rent Map Y"k ,. N a ngth4 Kerr �' Beach Kl c €saes€ K"Y 5 c� C 0 LO LO CO 4- 0 f/$ N N CD u Appraisal Company of Key West Page 68 Packet Pg. 2751 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Photographs of Commercial Rent Comparables f \ � II S, ! qE, � � •���' '� IAit 7 'y'� 1 i � � I ' s a �01 i yt 21 , p W Rent Comparable No. 1 & 2 Rent Comparable No. 3 ,i S• ,syx,,27 £ � s K) LO CO e�saa i- N aka 0 N Rent Comparable No. 4 9 CD cv CD cv u Appraisal Company of Key West Page 69 Packet Pg. 2752 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Summarizing the comparables rents listed above indicates a rental range of$18.73 per square foot to $30.89 per square foot with a mean and median of$24.70 and$24.60,respectively. In analyzing these rent comparables number 3 and 4 were considered the most similar in building size, as well as the location. The unit size and dollars per square foot of area are typically inversely related;thus,the larger the units size the lower the dollar per square foot. Rent Comparable No. 4 was considered a superior property, as well as being much larger than the subject. Potential Market Rent(Fee Simple) Analysis: Market rent was projected after interviewing market participants including landlords and rental agents. The potential rent was estimated at the mid range of the comparable rents due to the subject's size as all the rent comparables had highway frontages similar to the subject. Typical rent increases are based on n T the CPI(Consumer Price Index). However,we have seen 3%to 5%on shorter term leases and more in premium locations. In our Fee Simple analyses, the following projected market rents and terms were utilized: POTENTIAL MARKET RENT ANALYSIS Unit Size Monthly Potential Unit No. per S.F. Rent Annual Rent Rent/S.F. 2855 Overseas Highway 5,778 $9,630.00 $115,560 $20.00 U Totals: 5,778 E $115,560 E LO LO 00 Vacancy and Collection Allowance: Vacancy&Collection losses include allowances for vacancy due to tenant turnover or loss of rents from ru a tenant who vacates the building or is late with payments. Typically,the market is experiencing a 3% to 10%vacancy and collection losses on commercial,office use,properties on an annual basis. Because of the subject's prime location,we have estimated a stabilized fractional 5%vacancy and collection loss. The Effective Gross Rental Income from the rental of the subject units is equal to the Total Operating Income (after vacancy and collection losses). This income is then adjusted for typical operating expenses summarized on the following page. Below, a table depicting typical market ratios and expense projections for the subject property. e( Appraisal Company of Key West Page 70 Packet Pg. 2753 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL PROJECTED OPERATING EXPENSES FOR SUBJECT PROPERTY NO. 1 Projected Expense Per Unit of Expense: Subject History Market Measure Range Real Estate Taxes: 2019-$1.45/SF $0.00 to$3.00 $8,370.75 based on 2019 Actual plus of GBA or With a mean at $1,615.00 Wastewater& Stormwater $8,370.75 plus $1.65 and median Assessment,Totals$9,986 Stormwater&Wastewater at$1.71 Tax Burden $1,615.00 Per SF of GBA = Hazard Insurance Not Available $2.00 to$6.00/ $2.50/SF of GBA or$14,445,based on Per SF of GBA Market Data Repairs&Maintenance N/A $0.75 to$3.00/Yr $1.25/SF/Yr of GBA Per SF of GBA Based on Market Data Property Management: N/A 4.0 to 15.0%of 5.0%of Eff. Comm.Income Eff. Gross Income 0) Tenants Typically E Utilities: N/A Pay All Utilities: Tenant Expense W Electricity,water, sewer and solid 0 waste charges Reserves: Not Included in 1.0%to 3.0%of Based on Reserve Schedule to to Condo Fee E.G.L 00 N SF=Square Foot of Gross Building Area(GBA) c c� Reserves for Replacement include items which have a shorter economic life than the building. A reserve schedule was considered. The following tables demonstrate reserve calculations. Since the software program utilized considers the effect of a safe rate of interest on funds over time,simply multiplying the sinking fund factor by the cost may result in a reserve amount slightly different from that indicated in N the table below. CD CD RESERVES FOR REPLACEMENT 2855 Overseas Highway,Marathon,Florida E Economic Estimated Sinking Find Payment/ Item Description We Cost Factor Period Roof Covering 35 Central A/C Unit $$2361,,000000 0. ..................................i5. .......00182 $473 $1,730 Total: $2,203 Annual Reserve Amount(Rounded): $2,200 Interest Rate 2.50% Appraisal Company of Key West Page 71 Packet Pg. 2754 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Income and Expense Summary for the Subject Property: An income and expense statement for the subject property based on the projected income and expenses. Proiected Stabilized Operating Income Statement 2855 Overseas Highway,Marathon,Florida Fee Simple Estate Potential Gross Commercial Rental Income: $115,560 Less 5%Vacancy&Collection Allowance: � Effective Gross Commercial Rental Income: $109,782 Plus Reimbursable Income: Real Estate&Non Ad Valorem Taxes $9,986 Insurance $14,445 Repairs&Maintenance $7,223 � Total Reimbursable Income $31,654 Less 5%Vacancy&Collection Allowance: Total Reimbursable Income: $30,071 Total Operating Income: $139,853 Less Operatin2 Expenses: %ofEGI $/SFofGBA Real Estate&Non Ad Valorem Taxes $9,986 9.100/0 $1.73 Insurance $14,445 13.16% $2.50 U Repairs&Maintenance $7,223 6.58% $1.25 Property Management $5,489 5.00% $0.95 Reserves For Replacement $2,200 2.00% $0.38 LO Total Expenses: $39,343 35.84% $6.81 N 4- 0 Net Operating Income: $100,510 Capitalization: Capitalization can be defined as a method of converting an income stream into a capital sum by dividing the net income of the future income stream by an overall rate (OAR) or capitalization rate. The result N should be the indicated value of the total property or the income-producing package. The capitalization rate was determined by the Mortgage Equity Method,from capitalization rates derived from the market, and from Debt Coverage Analysis as detailed below. Band of Investment Model or Mortgage Equity Method: Assume a mortgage of 70%of the value,5.00%interest with a 25-year term,the mortgage constant will be 0.0702; a down payment of 30% as equity and an Equity Capitalization of 8.5%. Appraisal Company of Key West Page 72 Packet Pg. 2755 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Comparable Sales Analysis: Based on sales comparable,we have estimated 7.50%capitalization rate for the subject property via the Comparable Sales Method,based on the comparable sales included in the Sales Comparison Approach section of this report. RealtyRates.com indicates national surveyed rates for all office types at 4.59% to 12.81%with a mean at 9.25%. The local market based on large commercial office sales indicated an Overall Rate of 4.8%to 9.8%with a mean of 7.8% and a median of 8.6%. Based on the subject's use, design and location, we have estimated an overall rate at the midrange of the market spectrum. The smaller properties have a lower capitalization rate than the larger commercial office buildings. Debt Coverage Analysis: An overall rate based on the Debt Coverage Method was estimated at 7.4%. After analysis of current financing availability for similar properties with quoted rates ranging from 4.25%to 6.25%and loan-to- value ratios of from 70%to 80%,we estimated a 7.02 mortgage constant for the subject property with a loan-to-value at 70.0%. A debt coverage ratio of 1.50 was considered appropriate for the subject according to a survey of local commercial banks. Thus, an overall rate based on the debt coverage analysis was estimated. A reconciled Overall Rate(OAR)of 7.5%has been estimated for the subj ectproperty with heavyweight being given to the Comparable Sales method as it is most reflective of the local market. The following 0 chart summarizes the three methods utilized. LO Reconciliation: The three methods utilized in estimating an OAR for the subject property indicate the co co N following Overall Rates: cv cv cv Appraisal Company of Key West Page 73 Packet Pg. 2756 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Development of Capitalization Rate Loan Ratio 70.0% Loan Term(Years) 25 Loan Rate 5.00% Equity Capitalization Rate 8.50% Band of Investment Method Cap. Capital Source Portion Rate Rate Mortgage Loan 70.00% 7.02% 4.91% Equity Funds 30.00% 8.50% 2.55% Overall Rate 7.46% _ Overall Rate Via Band of Investment Method(Rounded): Debt Coverage Analysis Debt Coverage Ratio 1.50 X Loan to Value Ratio 70.0% X Mortgage Constant 0.0702 Overall Rate 7.37% Overall Rate Via Debt Coverage Analysis(Rounded): 7.40% .N Market Derived Capitalization Rates: Realty Rates .Com 3rd Quarter 2019: RealtvRates: Local: E Office-All Types Low 4.59% 4.80% High 12.81% 9.800/0 Average 9.25% 7.73% U Median N/A 7.90% Overall Rate Via Market Approach(Rounded): LO LO co Reconciled Overall Rate. 7.50% ty 4- 0 cp An OAR of 7.50% has been estimated for the subject property with most weight being given to the Comparable Sales method as it is most reflective of the local market. Since the subject is truly an owner user type property,we projected an OAR based on the Sales Method,toward the midpoint of the range, which is reflective of the market. The indicated Fee Simple value via Direct Capitalization is developed as follows: C44 CD N Subject GBA: 5,778 Subject Site Size(SF): 15,000 0) Net Operating Income: $100,510 Value Per Value Per NOIDividedbyCapRate: 7.50% SF ofGBA SF ofIand IndlcatedStabilized Value(Rounded): $1,340,000 $231.91 $89.33 Less Cost to Cure(Rounded): )0240,000) ($41.54) ($16.00) "As Is"Value(Rounded): $1,100,000 $190.38 $73.33 MARKET VALUE OF SUBJECT PROPERTY IN FEE SIMPLE ESTATE VIA THE INCOME APPROACH (ROUNDED): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $-1 3-1-0 0-to 0 0 Appraisal Company of Key West Page 74 Packet Pg. 2757 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL THE SALES COMPARISON APPROACH This approach to value is based upon the principal of substitution; that is, when a property is placed in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no costly delays in making the substitution. The Sales Comparison Approach bases its value indication on sales of other similar properties in the area. These sales are analyzed and compared to the subject property. The Sales Comparison Approach bases its value indication on recent sales that are pertinent to the value of the subject property. From these comparable sales, the appraiser must extract 2 meaningful "common denominators"to be applied to the subject building. Typically,the sale price per square foot of gross building area, per square foot of land area and the overall sale price are the most common denominators used in estimating the value of the properties similar to the subject. Adjustments are made to the indicated sales price for differences between the sale and the subject, when possible. The more similar the sale is to the subject property, the fewer required adjustments, and the better it serves as an indicator of value. Market Data for Subject Property: The subject property consists of a professional office property with 5,778 square feet of gross building area. Extensive research has revealed a reliable number of potential office comparable sales. Although the sales are not identical, they are considered representative of the subject property. Due to the 0 availability of the office properties, this approach was weighted heavily in the final reconciliation. Z LO The following chart summarizes relevant units of measure for each of the comparable sales. A brief CO CO N description of each of the comparables is detailed below, other information is included in the appraisers - workbles. N N CD U Appraisal Company of Key West Page 75 Packet Pg. 2758 (dems Duel aq!l /4sg ) ( 4 a 49Mjew) (A4un Rq) qqqZ jo Isla t -L - :4u9ua 3 44 L M N [I�Ii� Ii z� ,IIi z- r a o0 00 _ U _ I I_I I O-Tc�1�TM I M N oo v � oI�Io�I�InI�I,- InIryI� n ,� n r Q o 0 Ir I, I I06 -4 Io IN IN I N `°NI�I`'I�' rIIrINI�IN N W Mo oio�oio o 6�Moi66 6�M6 0 I I I I I I I I I I I I I I I I I I d v Io Io Iolo Io Io Io Io Io 0 �IoIoIolololol.,,IoI.,, c 4y U I I I I I I I I I M �IoI�I�I�(�IoI�I�Io oro a NI�I�ICI- MIS INI"oIM v v M N o 5j�j�j^- CS �8 IO o a N o 0 j� � 8 o ono � vo, iri, ^o $ o olololoEolololololo � o 0 0 U b O ' EA EA M 69 EA EA EA � EA ti fi9 yj � � � O EH EH EH EH bf] bf] •^"� O O O O O O O O O O O U O O O O O O O O O O O O n O O O O O O O O O $ o o 0 0 0 0 0 0 E 00 E,4 V on 00 o Cl] C �+ N N O O O O O O O O .I. ct o °on aA � _ �I�I �Ic�I�I�'I �I�I. I � � •� >,l�J I I >,I I �I�I �I � o BIBIxIxIBIxIxIBIxIx ,� � � w xIxI �I �IxI �I �IxI �I � a, O I I II I I I Ib b x A v d ` I>I0I('I >IpIOI>IpIp p� O IO Io I00 IC I�IO Io I O v w a, O I IO Io71 C, v C, v > � 00 w a d a �IoI�Iv-I�IrIoI I�I� a N N rinl,- IooIr �I,- InI�IN ti In c v, e r •H '�" o ,� N rn 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Sale No. 1 -2945-2975 Overseas Highway, Marathon: The comparable is the most recent pending sale of an office property. Though it is a condominium form of ownership, the sellers agree to dissolve the condominium; thus, a single property with a fee simple interest ownership. The parcel is rectangular shaped corner parcel fronting on the Overseas Highway and 30`h Street located one brock from the subject property. The parcel also includes the end of a canal. Two of the condominium units were owner-occupied and the third was tenant-occupied on an annual lease. The parcel has 160 linear feet along the Overseas Highway, 100 linear feet along 30`h Street and approximately 60 linear feet along the canal. Hence,the parcel contains 16,000 square feet or 0.37 acres according to the survey in the Condominium Documents. This condominium building consists of a two-story CBS/masonry structure which contains a total of :2 6,236 square feet of gross building area. Unit-A is located on the corner of the Overseas Highway and 30`h Street and is utilized as a law office. This unit is one-story and it contains 2,873 square feet.Unit-B is a two-story unit that also fronts on the Overseas Highway and contains a total of 1,789 square feet. The downstairs portion of this unit is utilized as a law office. The upstairs is utilized as storage for the M law office. Unit-C is also a one-story unit that shares a party wall with Unit-A. This unit contains a total of 1,061 square feet of gross building area. It is currently tenant-occupied. The condominium contains 513 square feet of common area consisting of exterior and party walls according to our measurements taken from the Condominium Documents. The exterior of the building is finished with painted stucco. According to the Monroe County Property Appraiser's records,the subject structure was built in 1973. E The property has approximately sixteen off-street parking spaces on three sides of the building. This property was appraised by our company for the sale. 0 ers LO } co 0 tV N N U Sale No. 2 - 7885 Overseas Highway, Marathon: This is the most recent sale of a single user building on the corner of 79`h Street and Overseas Highway in Marathon. The site consists of a corner lot fronting 120.95 linear feet along the southerly side of Overseas Highway and fronts 145.57 linear feet along the westerly side of 79`h Street for a total site area of 13,752 square feet, according to the County Plat Map. The property is improved with a one-story Appraisal Company of Key West Page 77 Packet Pg. 2760 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL wood frame building containing 2,148 square feet of gross building area. In addition, it includes a 160 square foot utility building. This property was in below average condition in need of remodeling. According to the Monroe County Property Appraiser's records,the subject property was built in 1958. The sale was an arm's length transaction and sold with a 14%purchase money mortgage. There were no seller concessions. This property was previously appraised by our company. ,^ �[v4 # Nl Y }1 f tt ttr�, f I Sale No. 3 -3015 Overseas Highway, Marathon: This is the most recent sale of a single user office building across 30`h Street from the subject property, on the sale side of the highway. The site consists of a corner lot fronting 100 linear feet along the southerly side of Overseas Highway and fronts 87 linear feet along the westerly side of 30`h Street for a total site area of 8,700 square feet, according to the County Plat Map. The property is improved with a one-story CBS/masonry building containing 3,855 square feet of gross building area. In addition, it co includes a 350 square foot covered-entrance. This comparable was formerly utilized by the Keynoter 0 newspaper for office use. According to the Monroe County Property Appraiser's records, the subject ru property was built in 1963. The sale was an arm's length transaction and sold for cash. There were no seller concessions. This property was appraised by our company for the sale. N , , m t, t8 Appraisal Company of Key West Page 78 Packet Pg. 2761 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Sale No. 4 - 114000 Overseas Highway, Marathon: This comparable consists of an "L" shaped parcel with 100 feet of frontage along the northerly side of the Overseas Highway at approximately mile marker 52 along Margaret Avenue, 114`h Street,it contains 42,570 square feet according to the Monroe County Property Appraisers Record. The site is improved with a two-story multi-tenant CBS/masonry building with 46 office units. This comparable contains 22,069 square feet of gross building area. The current unit mix includes medical office, services, business and government offices. The entire property was completely remodeled and renovated, including the roof, bathrooms, air condition units, wind-resistant windows and doors, etc. This is an arm's length transaction sold to an investment group according to the listing agent. The property sold 2 with 75% conventional financing. L � I Y f� (§}E VIk E Sale No. 5 - 85998 Overseas Highway, Plantation Kew This comparable consists of an owner-occupied,two-story,CBS/Masonry structure with covered porches Z on both levels. The Monroe County Property Appraiser's Office records indicate that the gross building LO area is 1,568 square feet and was built in 1998. The first floor area consists of approximately 784 square co feet of office/service area including two,2-fixture restrooms.The second level contains about 784 square 0 feet utilized of office space and one 2-fixture restroom. The attic is well finished as an office,but was not included in the gross building area calculations. The attic containing approximately 337 square feet which was considered as an amenity, however, this area had not been permitted for occupancy by the local governing agency. The building is in good condition and well maintained. The improvements are situated on a 9,500 square foot site which fronts 50 linear feet along the northerly side of Overseas Highway and extends 190 linear feet to the northerly in depth to the side of Porto Salvo Drive. The sale N was an arm length transaction. This property was previously appraised by our company. Appraisal Company of Key West Page 79 Packet Pg. 2762 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL IF YTIM � i( v- Sale No. 6 - 7849 Overseas Highway, Marathon: This comparable is on an irregular shaped highway parcel at approximately mile marker 51.5 in Marathon,Florida. The subject consists of a mixed-use commercial/residential property. According to M the Monroe County Property Appraiser's records and plat map the dimension of this comparable fronts 80.98 linear feet along the southerly side of the Overseas Highway and extends 120 linear feet in depth along the westerly side, 150.53 linear feet along the easterly side and 75 linear feet across the rear. Hence,the site contains 10,145 square feet. The building consists of a one-story wood frame structure with a total of 1,864 square feet of gross building area. The easterly side of the building was commercial E use, either office or retail, it contains 1,022 square feet and the westerly side formerly a two-bedroom one bathroom contains 816 square feet. The exterior of the building finished with painted T-111 wood 0 siding. The property includes parking along the front and side with a canopy-covered patio in the rear. za Furthermore, the site improvements include a wooden handicap ramp that provides access to the rear LO entrance of the commercial section. According to the Monroe County Property Appraiser's records,the co subject property was built in 1975. The property was in below average condition at the time of the sale 0 as it had been damaged by Hurricane Irma. The sale was an arm's length transaction. This property was appraised by our company for the sale. s � f N j11 IX N E U Appraisal Company of Key West Page 80 Packet Pg. 2763 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Sale No. 7 - 87889 Overseas Highway, Plantation: The site consists of an interior parcel with 175 feet of frontage along the Overseas Highway, US Highway No. 1, extending northerly approximately 120 feet along in depth. The property is located at approximately Mile Marker 87.8 in the Village of Islamorada,Plantation Key,Monroe County,Florida. The site is a rectangular-shaped parcel has 175 feet of frontage along the southerly side of the Overseas Highway and extending generally in a southerly direction, about 120 feet in depth. The property also has 175 feet of frontage along the northerly side of Old County Road, also known as State Road 4A. Hence the property contains 21,000 square feet of upland area. The site measurements were confirmed with the Monroe County Property Appraiser's Records. A copy of the survey and plat map were made available. ' This comparable is unique due to its large and prime highway frontage with a minimal amount of building improvements having a fairly low floor area ratio. Lot 14 and the northeasterly 1/z of Lot 15 at the westerly boundary of this property were undeveloped and are heavily wooded. However, the T remaining improved site area is sufficient to support the current use of the property as a commercial M office use structure. According to the plans and specifications prepared by Siskind, Carlson &Partners, (SCP), Architects, the site is improved with a one-story 2,475 square feet Free Span Steel commercial building constructed on a concrete slab with a 791 square foot mezzanine. Hence, the building has a gross building area (GBA), of 3,266 square feet. The building is currently used as a multi office law firm. The property has adequate parking both in front, Overseas Highway, and in the rear on State Road 4A. The sale was an 0 arm's length transaction and sold with 87%conventional financing. There were no seller concessions. This property was previously appraised by our office. LO LO co un^ _ 9 i i Y r Rom•.. � (J Sale No. 8 - 100460 Overseas Key Largo: This comparable consists of a rectangular, interior site with 100 feet of frontage along the Overseas Highway at approximately mile marker 100.5 and it contains 21,418 square feet of upland area. The site is improved with a one and one-half story mixed-use CBS building, which contains 8,200 square feet Appraisal Company of Key West Page 81 Packet Pg. 2764 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL of gross building area. The current unit mix includes medical office, office, retail and a two- bedroom/two bathroom upstairs apartment. This is an arm's length transaction, wherein John H. Smith, Trustee sold the property to Commercial Center of the Florida Keys,LLC.This property was previously appraised by our office. This comparable was purchased for conversion to a medical clinic. �t 2 N Sale No. 9 -3988 Overseas Highway, Marathon: This is a comparable sale of a multi-tenant property that consists of three offices plus a large retail area. This comparable consists of a rectangular-shaped parcel,fronting approximately 50 linear feet along the northerly side of Florida Department of Transportation Right of Way and the Overseas Highway encompassing 7,500 square feet of site area. The property also has 50 linear feet along the southerly side of Washington Street. A loading dock is located at the northeast side of the building and a loading ramp 0 is graded toward Washington Street. The building consists of a metal, free-span building containing a gross building area of 1,969 square feet. There is also an unfinished,plywood floor mezzanine of 725 square feet that was included in the overall total of 2,694 square feet of gross building area. The co mezzanine is utilized for storage plus it has a wood stairway providing access to the storage space. The 0 building contains a service/repair area, one 2-fixture restroom with a sales office/counter, storage area and two 10'by 16' overhead doors with mechanical openers. The building was built in 1991,according to the Monroe County Property Appraiser's records. The listing agent stated that the downstairs unit was in need of repair. The sale was an arm's length transaction and sold for cash. There were no seller concessions. This property was previously appraised by our office. N N Appraisal Company of Key West Page 82 Packet Pg. 2765 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL AA i (��SJ ti t 1t ti i ,1i,itJViti t„ � 1 Sale No. 10 - 68100 Overseas HighwaLayton: This is the sale of a two-story mixed-use CBS structure containing 6,544 square feet of gross building M area. There is a convenience store at the first level with apartments above. The improvements are situated on a 22,754 square foot highway front site within the City of Layton. The parcel does have a small amount of canal frontage. This was an arm's length transaction. 0 LO LO co t N $ \ - Aat�s� J fit N Sale No. 11 -24752 Overseas Highway, Summerland Key. 9 This is a comparable sale of a multi-tenant property that consists of a large retail and office area,which N could be subdivided. This comparable consists of a rectangular-shaped parcel,fronting approximately 120 linear feet along the southerly side of the Overseas Highway 100 linear feet in depth to the canal The property also fronts 120 feet along the canal with deep water access to the Atlantic Ocean. The parcel has four docking stations along the canal with a Tiki hut. The building consists of a solid concrete structure with an elevated floor that conforms to the flood elevation. The building containing a gross building area of 3,690 square feet. The building was built in 1984, according to the Monroe County Property Appraiser's records. The sale was an arm's length transaction and sold with 74%conventional financing. Appraisal Company of Key West Page 83 Packet Pg. 2766 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL SALES COMPARISON COMPARABLES MAP San Cal Rom* Naples Park Coral�Phngs. jPompano Beach, � .i swnrosL, orryt LauderdMe � ywood I r W Athr klr Oce,,3rr — I � LO a:a�yar� S _ fn � Ff�a�r;�a�a� �I t a• ,, i t8 s � W1 4 (B a W l LO COCINI rTff- 1 M ..d. M. € W :• Ordenas a h rza ara Put Matanzas H AVAN aa S3n0" MAYABEQUE, Youellanos, Grande� r C016 a a N CINI CD Appraisal Company of Key West Page 84 Packet Pg. 2767 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Market Conditions Adjustment: Based on the sale and resale of the comparable sales, the data indicates that values generally appreciating overtime. The mean and median of the comparables were 7.6%and 2.10%,respectively. As a result,the appraisers make an annual adjustment of 3.5%for market conditions. An analysis of the comparable sales/resales activity is as follows. Previous Pre%ious Annual Differeucer 2019 Assessed" 2019 Sale listing SNIP Sales Sales 2ndPiice/ Change Appreciation In Dates Assessed Asses. Per S.F. Tax Burden/ No. DOM Price Ratio Date Price Sq.Ft. Price Rate Years Value ;Ratio :GBA Burden S.F.GBA 1 N/A N/A N/A N/A N/A N/A N/A N/A i N/A $689,780i 46.0%� $110.61i $6,726.33i $1.08 2 1 1611 $649,0001 867 0! 04/02/04! $435,000! $202.51! $127,5001 17.o! 1559— $417,2111 742'0! $194237 $4,211081 $1.96 3 5� $799,500i 93.8%i N/A N/A N/A N/A N/A N/A $548,410i 73.1%i $142.44i $O.00i $0.00 4 ! 661 i $3,500 000! 82 3 ! 07/27041 $2,005 000! $90 851 $875 000! 2 6 ! 14.29 $2 412 429! 83 8 ! $109 31! $23,524 551 $1.07 -- --'-- -�----- -'--- '--- -''"--- "�--- "''--- �--- -'�------ ---'''- ---F'-- --------'�---- 5 321 $599,000 96.8% N/A i N/A i N/A i N/A i N/A N/A $476,524 _82.2% $303.91 $4,699.191 $3.00 ----=---=-----=---------=-----=-----------=---------------- — =— -- — 6 ! 1411 $340,0001 88 2%! 06/01/001 $230,0001 $123 39! $70,0001 1 5%! 18.13 $399,127! 133 0%! $214121 $3,892.051 $2.09 7 i 192i $899,000i 89.0%i 12/09/09i $550,000i $168.40i $250,000i 4.6%i 8.28 $581,764i 72.7%j $178.13i $5,737.00i $1.76 8 ! 581 $1,300,0001 100.0%! N/A ! N/A ! N/A ! N/A ! N/A ! N/A $1,427,4191 109.8%! $174.08° $11,679.581 $1.42 f/I -- '--- '----- "'--- -F"--- '"--- "--- "--- -- ——————— --- -F'-- -------'�---- 9 331i $650000i 892 i 07/28/W $400000i $14848� $180000i 3601 121 $4710477 812' $17485i $4,61696 $171 �. 10 ! 1601 $1,2950001 907 i NA ! NA ! NA ! NA '!— N/A —!t--N—/A——.,—®$995,51�61 847 pi..--$1 52139 $11 098-9W—$-1.-70 --- ———— ---- ---- ---- ---- --- — 2 9— — N/Aj NiAj 05/01/091 $775,0001 $210031 -$50,0001 09%1 700 922,®6 1 9 $854.5- 2.31— t8 Subject Mean 226 90.8% 7.6% 88.0% $182.16 $7,702.47 $1.65 Median 161 89.2% 2.1% 82.2% $174.85 $5,737.00 $1.71 NTinimum 5 82.3% -0.9% 46.0% $109.31 S0.00 $0.00 Maximum 661 100.0% 36.0% 133.0% $303.91 $23,524.55 $3.00 -� 0 1. Valuation Multiple Regression Anal: to The appraisers analyzed eleven comparables from March 2016 and dismissed the outliers in our co analysis. The outliers were not included in the above comparable sales, as they were excluded 0 because they were well outside of the expected range. These were the most similar recent comparables and were considered reliable in valuing the subject property. Due to the lack of paired sales data, percentage adjustments and/or comparisons were not utilized. Instead, we considered a multiple regression analysis of the comparables based on reasonable units of measure. We found a reliable correlation between the gross building area(square feet),condition at the time of sale and the adjusted sales price. N The x-variables, four independent variables are the site area, gross building area, condition at a time of sale and floor area ratio for each of the comparables. The subject property is an office property that is in a similar zoning district as all of the comparables,though they have different locations, they are all on the Overseas Highway. Hence,we analyzed the various variables for similarities. Appraisal Company of Key West Page 85 Packet Pg. 2768 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL They-variable,dependent variable,are the comparables adjusted sale price. This data population sample of the comparable sales indicates a reliable correlation which is measured by the R' of the data set. In the case at hand, an acceptable correlation, R2 of 0.983 was indicated. Correlations near 1.0 are considered most reliable; therefore, the subject's correlation is considered to be very reliable, and the population sample appears appropriate in our valuation model and can be considered credible in the units of measure for the subject property. The valuation computer analysis of this model indicated the following values: Intercept = ($341,950.56) UndSF, GBASF2 Condition3 F.A.R4 Subject Coefficients Xn 15,000 5,778 2.00 0.39 B n $34.12 $36.14 $143,066.49 $1,411,454.65 In equation form, the regression model looks like this: Y=(X1B1)+(X2132)+(X3133)+(X4134)+Intercept Subject Property=(15,000 X$34.12)+(5,778 X$36.14)+(2.00 X$143,066.49)+(0.39 X$1,411,454.65)+ (-$341,950.56) = $1,215,267 VALUE OF THE SUBJECT PROPERTY VIA THE MULTIPLE REGRESSION ANALYSIS IN THE SALES COMPARISON APPROACH(ROUNDED): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,220,000 LESS COST TO CURE(ROUNDED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $240 000 EQUALS"As IS"VALUE (ROUNDED): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $980,000 LO LO co 2. Valuation Quantitative Adjustments: Each of the comparable sales was also analyzed in order based on the following factors to make c comparisons to the subject property. No two commercial or mixed-use properties lend themselves to the traditional match pair analysis. Each sale is considered generally similar to the 0. subject in location on the Overseas Highway within the Middle Keys market area. er cv However,adjustments are required for individual physical characteristics which typically affect value. Each characteristic is detailed below with an explanation of adjustments which were CD made to the comparable sales. The appraisers utilized the three most recent sales, Comparable No. 1, 2, and 3,plus Sale No. 7 which is an older sale but more similar to the subject property, E thus, it was included in our adjustment grid. Our office has appraised all four of these sales U analyzed herein. Units of Measure: Typically, commercial retail/office or mixed-use properties are analyzed via the sales price per square foot of gross building area. The price per square foot of gross building area is a more reliable unit of measure, in the case at hand. Appraisal Company of Key West Page 86 Packet Pg. 2769 0.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Discussion of Adjustments: Market Conditions: As previous discussed the sale and resale of some of the comparable sales properties in Florida Keys,the data indicates that values generally stabilized with annual appreciation as previously discussed. As a result, sales which transpired more than six months were adjusted for positive market conditions at an appreciation rate of 3.5%per year. Property Rights: The subject is not encumbered by any leases; thus, a Leased Fee analysis is warranted herein. Sales 1,2, 3 and 7 were owner-occupied or vacant at the time of sale, except Sale No. 1 which had an annual lease which could be terminated. Thus, they were considered Fee Simple Interest. Conditions of Sale: All of the sales were arm's length transactions; thus, no adjustments were M warranted herein. Financing: All of the comparable sales were considered cash equivalent, either cash, conventional or private financing(purchase money mortgage)at market rates. Thus,none of the comparables required adjustment for financing. E Gross Building Area: Market data indicates that the larger the gross building area,then the price 0 per square foot of gross building area decreases resulting in an inverse relationship. Therefore, Za the smaller buildings require a negative adjustment. Hence,the smaller the gross building area, LO the higher the price per square foot of gross building area. Sales 2, 3 and 7 are smaller; thus, co negatively adjusted, while Sale No. 1 was considered overall similar in gross building area. 0 Upland Site Size: Lot size has a direct relationship to the price per square foot of gross building area,which is our unit of measure. In other word,the larger the site the great the dollar per square of gross building area. Sales 1 and 2 were considered similar in site size; thus, did not require any adjustment. Sale 7 was larger in upland land area/size, thus, negatively adjusted. Sale 3 was positively adjusted to reflect a greater dollar per square of gross building area for the subject property. Highway Frontage: The subject has frontage along Overseas Highway in Marathon. All of the comparables are located on-the-highway; thus, no adjustments were made. �t Overall Location: All of the sales were considered to be similar overall in location; thus, no adjustments were warranted. Appraisal Company of Key West Page 87 Packet Pg. 2770 O.3.j Appraisal Report 2855 Overseas Highway, Marathon, FL Zoning: The subject is located within the MU, Mixed-Use Commercial Zoning District. All of the comparables were considered similar, therefore, did not require an adjustment. Condition/Quality of Construction: The subject property is considered to be in average condition with deferred maintenance. The significant deferred maintenance in the amount of$240,000 (rounded) is deducted as a Cost to Cure at the end of this approach. Hence, Sales 2 and 3 slightly inferior, therefore, required a positive adjustment. Sales 1 and 7 were considered superior to the subject property and negatively adjusted. The following grid summarizes each sale and shows the necessary adjustments as previously described: _ CO 0 LO LO CO 0 cu CD CD CD N Appraisal Company of Key West Page 88 Packet Pg. 2771 (dems Duel aq!l /4sg ) ( 4 a 49Mjew) (A4un Rq) qqqZ jo Isla t -L - :4u9ua 3 44 cy M N a.tm ° U U I I I I I I o "' � o 0 0 Imo = sus o oc w N r v� vs � N ss oo U w �i U I I I I I I r I I I I I I I cc cc o I K I I I o oI I I I ,I E , g I II II II II °I o( II I o o M t t O °� Iv,( Iv, v o '� o U ji ` U 0 �,. a �NN 7 c4 �` vu sF sF o a°Ji °�' v v sNsl I I I I I ys fq N sF rt �u; m i g Ij 0 ^ ,Ig ` ncaU aG- Noowwl e4 w w �. d d c N' C A w cn cn cn U cis i-1 b on a� U cis i-1 ti � 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL Valuation Conclusion: In order to estimate the value of the subject property,we analyzed recent sales of office use comparable properties. On the preceding table, a detailed adjustment grid is presented for the subject property. The comparables indicate an adjusted value per square foot of gross building area for the subject property from $209.36 to $235.68 per square foot with a mean at$218.68 and a median at$214.85. Based on analysis and adjustments to the individual comparables, Sales 1 and 3 were given the most weight, as overall they were considered the most similar with the least gross adjustments. The other Sales were moderately weighted. The weighted average of these comparables equaled $217.00(rounded)per square foot of gross building area. Therefore,in our opinion the subject's overall value is noted below, which is considered reasonable and well-supported. The calculation is noted as follows. s T $217.00 X 5,778 = $1,250,000 Value of Subject via the Sales Compadson Approach(Rounded): $1,250,000 W Less Cost to Cure(Rounded): ($240:000) "As Is"Value ofSub'ect Property Fee Simple(Rounded): $1,010,000 INDICATED VALUE OF THE SUBJECT PROPERTY, AS INDICATED BY QUANTITATIVE ADJUSTMENTS GRID VIA THE SALES COMPARISON APPROACH(ROUNDED) . . . . $1,010,000 0 3. Sales Comparison Approach Correlation: The Sales Comparison Approach was considered applicable in the subject's valuation due to the sales and market activity for office use properties within the Middle Florida Keys market. co Therefore, if a significant number of comparable sales have occurred and are available for 0 analysis, then the Sales Comparison Approach becomes an important method in developing a ru value indication. We have included the most recent sales of office use properties which were considered most representative of the subj ectproperty. Furthermore,the appraisers have utilized units of measure and a sizable population sample with a tight correlation indicated. This approach was considered applicable in support of the Income Approach as it demonstrates buyers and sellers' reactions and the market activity for similar use properties. The two methods in the Sales Comparison Approach were correlated to determine the market value of the subject property. Each method was weighted equally and considered a reliable correlation. We have a weighted the Sales Comparison Approach heavily in our final reconciliation of values. Furthermore,the subject property is considered to be an owner-user type property,therefore,the subject property is not regarded as an income producing property. Finally,the Income Approach is additional support for the Sales Comparison Approach. Appraisal Company of Key West Page 90 Packet Pg. 2773 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL Correlated Sales Comparison Approach Value Subject Site Size(SI+): 15,000 Gross Building Area: 5,778 'Value Per Value Per Condition: 2.00 SF of GBA SF Land Indicated Stabilized Value(Rnd.): $1,000,000 1 $173.07 1 $66.67 Final Conclusion: The subject's final indicated market value on a per square foot of gross 2 building area is $173. The unadjusted comparable sales indicated a sales price per square foot of gross building area of$136.76 to $392.03 with a mean at$226.89 and a median of$223.82. Therefore, the subject's value is also well-supported by this unit of measure which is slightly below the mean and median due to the significant deferred maintenance. "AS IS" MARKET VALUE OF THE SUBJECT PROPERTY IN FEE SIMPLE ESTATE BY THE SALES COMPARISON APPROACH,AS OF JANUARY 06, 2019(ROUNDED): . . . . . . . . . . . . . . . . . . $1,000,000 0 CJ LO LO 00 cv 4- 0 c� cv r cv CD cv U Appraisal Company of Key West Page 91 Packet Pg. 2774 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL RECONCILIATION AND FINAL ESTIMATE OF VALUE The following indications of Fee Simple property values have been developed in our analysis of market data. Reconciliation 2855 Overseas Highway,Marathon,Florida 33050 "As Is" Valuation Method: Fee Simple Estate Value Cost Approach Not Applicable Income Approach: $1,100,000 Sales Comparison Approach $1,000,000 s "As Is" Market Value as of January 6,2020 (Rounded): $1,040,000 The greatest weight is given to that approach in which the appraiser has the highest degree of confidence. M This implies a minimum of assumptions and a sufficient quantity of data. The Cost Approach was not considered applicable due to the age of the building improvements,as estimating depreciation would be very subjective and lessen the reliability of the valuation method,plus the lack of land sales. Based on analysis of the real estate market activity in the subject property market area and considering the appli- cability and reliability of each of the approaches, it is our opinion that the Market Value of the subject E property is most accurately indicated by the Sales Comparison Approach, due to the owner-user nature and potential of the subject property. Accordingly, greatest weight has been placed on the Sales 0 Comparison Approach. The Income Approach was weighted moderately and supported by the Sales za Comparison Approach. LO LO co cv 0 cv cv cv Appraisal Company of Key West Page 92 Packet Pg. 2775 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL CERTIFICATE OF APPRAISAL WE HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY: MR.KEVIN G.WILSON,P.E. ASSISTANT COUNTY ADMINISTRATOR MONROE COUNTY,FL (FLORIDA KEYS) 102050 OVERSEAS HIGHWAY KEY LARGO,FLORIDA 33037 We have personally examined the following property: Commonly Known as: 2855 OVERSEAS HIGHWAY,MARATHON,FLORIDA 33050 y Monroe County Parcel ID: 00321730-000000; Alternate Key No.: 1396001 Based on market analysis and research,it is our opinion that the "As Is"Market Value ofthe Fee Simple Estate of the Subject Property,formerly known as Community Health of South Florida,2855 Overseas Highway, Marathon, Florida 33050, subject to definitions, assumptions and limiting conditions, as of January 6, 2020 is: E ONE MILLION FORTY THOUSAND DOLLARS ($1,040,000) co cv The "As Is" Market Value for the subject property considers no personal property. 0 cv cv CD cv Appraisal Company of Key West Page 93 Packet Pg. 2776 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL WE ADDITIONALLY CERTIFY that, to the best of our knowledge and belief: o The statements of fact contained in this report are true and correct. o The reported analyses,opinion,and conclusions are limited only by the reported assumptions and limiting conditions,and are my personal,impartial,and unbiased professional analyses,opinions and conclusions. o We have no bias with respect to the property that is the subject of this report or to the parties 2 involved with this assignment. o Our engagement in this assignment was not contingent upon developing or reporting predetermined results. o Our compensation for completing this assignment is not contingent upon the development or M reporting of a predetermined value or a direction in value that favors the cause of the client,the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. o Our analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. 0 U o Richard Padron made a personal site visit of the interior and exterior of the subject property. >, z James E. Wilson made an exterior inspection of the subject property on October 24, 2019 & LO January 6, 2020. co 0 o No one has provided significant professional assistance to the persons signing this report. o The use of this report is subject to the requirements of the State of Florida relating to review by the Florida Real Estate Appraisal Board of the Department of Professional Regulations,Division of Real Estate. o James E.Wilson has completed the Standard and Ethics education requirements of the Appraisal `" Institute for Associate Members. a E o The appraisers have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Appraisal Company of Key West Page 94 Packet Pg. 2777 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL o The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. o The appraisers have performed no services, as an appraiser or in any other capacity, regarding the property this is the subj ect of this report within the three years period immediately preceding acceptance of this assignment. APPRAISAL COMPANY OF KEY WEST James E. Wilson, MRICS, President Richard Padron, CCIM, MSA State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ 544 email: rini(rr th-keys i p i is con email:richardj2�c�Ifla-keysUj2raisals.com � 0 CJ LO LO co cv 4- 0 c� CU cv CD CD cv CD cv Appraisal Company of Key West Page 95 Packet Pg. 2778 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL PROFESSIONAL QUALIFICATIONS JAMES E. WILSON, III, MRICS James E.Wilson has been a resident of South Florida since 1976. His education includes a Bachelor of Science in Business Administration with aMajorin Economics from the University ofFlorida,1987-1991. <<, F His experience in the real estate industry began in early 1992 as a residential real estate appraiser in Pompano Beach,Florida. He appraised a wide variety of single and multi-family residential properties in Dade,Broward, and Palm Beach counties over a two-year period. In the search of advancement and Ch ° challenge, James Wilson moved to the City of Key West, Monroe County, Florida in order to obtain experience and practice commercial real estate appraisal valuation techniques in a demanding and somewhat unique market area. Over the past 25 years James has been exposed to a wide-range of appraisal projects,including highest and best use studies,complex property ' appraisals,and wetland and environmentally sensitive valuations including transferrable development rights. His appraisal experience includes financial and investment analysis,appraisal review,feasibility and planning analysis,as well as market research and analysis. James Wilson is a State Certified General Real Estate Appraiser(licensed to perform residential and commercial appraisals)and a General Associate Member of the Appraisal Institute. He is a member of RICS(Royal Institution of Chartered Surveyors),which is an international member organization for professionals in property,land,real estate,construction and related environmental issues.Jim is past President of the Key West Gator Club,2013/2014 President of the Sunset Key West Rotary Club,member of Class VII Leadership Monroe,2012 President of the Key West Chamber of Commerce,and has been elected to continue to serve on the Board of Directors of the Key West M Chamber of Commerce.Jim is still an active member on the Board of Directors for the Key West Chamber of Commerce. Education: SOUTH BROWARD HIGH SCHOOL,Hollywood,FL, 1987. UNIVERSITY OF FLORIDA,Gainesville,Florida-Bachelor of Science in Business Administration- Major in Economics, 1987-1991. E APPRAISAL INSTITUTE Appraisal Reporting of Complex Residential Properties,October, 1993. Persuasive Style in Narrative Appraisal Reports,May, 1994. U ACE 1779-"Special Purpose Properties-The Challenge of Real Estate Appraising in Limited Markets", September, 1996. LO 410 Standards of Professional Practice,Part A(USPAP),8/97. 'n ate 420 Standards of Professional Practice,Part B,August, 1997. N 520 Highest&Best Use and Market Analysis,October, 1997. 0 Non-Conforming Uses Seminar,January, 1998. os v� 510 Advanced Income Capitalization,May, 1998. E 530 Advanced Sales Comparison&Cost Approach,May, 1998. 540 Report Writing&Valuation Analysis,August, 1998. 550 Advanced Applications,February, 1999. N Regression Analysis in Appraisal Practice:Concepts&Applications,Seminar,March,2000. r General Demonstration Appraisal Report Writing Seminar,March,2000. 800 Separating Personal&Real Property from Intangible Business Assets,March,2002. C44 Successful Completion of the General Comprehensive Examination for the Appraisal Institute N Uniform Appraisal Standards for Federal Land Requisitions,March,2007 General Demonstration Appraisal Report Writing Seminar,August,2007 E Valuation of Conservation Easements,January,2008. Appraising Distressed Commercial Real Estate,June,2009 Oil Spills and Property Values,Webinar,August,2010 Business Practices and Ethics,September,2010 A Debate of the Allocation of Hotel Total Assets,October 26,2010 Appraisal Institute Update,May 19,2011 Appraisal Company of Key West Page 96 Packet Pg. 2779 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL Professional Qualifications of James E. Wilson, III (Continued) APPRAISAL INSTITUTE Appraisal Curriculum Overview(2-day General)May,2011 Perspectives from Commercial Review Appraisers,July 20,2011 Fundamentals of Separating Real Property,Personal Property,and Intangible Business Assets,05/07/2012- 05/08/2012 UAD-Up Close and Personal,November,2014 Expert Witness Testimony:To Do or Not to Do,November,2014 Analyze This!Applications of Appraisal Analysis,November,2014 Florida Appraisal Laws and Regulations Update Reviewers Checklist,November,2014 National USPAP Update Equivalent(2014-2015),November,2014 Purchase Price Allocations for Financial Report and Tax,April 16,2014 Behind the Headlines,the New Real Estate Real Estate Economy,May 16,2014 GOLD COAST SCHOOL OF REAL ESTATE Real Estate Principles,Practices,and Law-FREC Course I,May, 1992. Salesman Post-License Program,February, 1994. y Mortgage Broker,Exam-Prep Program,September, 1992. AB I-Appraisal Board-Fundamentals of R.E.Appraising,5/92. W AB II-Appr.Board-Appraising Resid.&Income Properties,2/94. AB IIb-Appraisal Board-Cert.Resid.Appraisal Course,7/94. AB III-Appraisal Board-Certified General Appraisal Course(Income Capitalization Course),February, 1995. ¢- USPAP-Uniform Standards of Professional Appraisal Practice,6/92. USPAP Course,September, 1995. A-102-Plan Reading for Appraisers,September, 1995. E National USPAP Update Course,June 2006 Techniques of Income Property Appraisal,June 2006 0 McKISSOCK DATA SYSTEMS U Automated Valuation Models, October,2000. Uniform Standards of Professional Appraisal Practice,October,2000. Za Factory Built Housing,October,2000. LO Appraiser Liability,September,2002. 00 N Appraising Nonconforming&Difficult Properties,September,2002. - Appraiser Liability,USPAP,September,2002. Appraising for the Secondary Market,October,2004. Appraising High-Value Residential Properties,October,2004. Florida Laws and Regulations,October,2004. Limited Appraisals and the Scope of Work Decision,October,2004. National USPAP Equivalent,October,2004. Florida Laws and Regulations,September 2006. N Disclosures and Disclaimer,September,2006. Appraisal Trends,September 2006. National USPAP Update Equivalent(2008-2009),November,2008. C44 Introduction to Expert Witness Testimony,November 2008. N Mortgage Fraud-Protect Yourself,November,2008. Florida Appraisal Supervisor-Trainee Roles and Relationships,November,2008. Florida Laws and Regulations,November,2008. E National USPAP Update Equivalent(2010-2011),August,2010. Risky Business:Ways to Minimize Liability,August,2010. e( Appraisal Company of Key West Page 97 Packet Pg. 2780 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL Professional Qualifications of James E. Wilson, III (Continued) Florida Laws and Regulations,August 2010. Florida Apprisal Supervisor-Trainee Roles and Relationships,August,2010. The Changing World of FHA Appraising,August,2010. Systems Built Housing:Advances in Housing for the New Millennium,October,2012 Deriving and Supporting Adjustments,October,2012 Introduction to Regression Analysis for Appraisers,October,2012 Introduction to Residential Green Building for Appraisers,October,2012 os Florida Appraisal Laws and Regulations Update National USPAP Update Equivalent(2012-2013),October,2012 Appraisal of Fast Food Facilities,November,2016 2016-201 7-Hour National USPAP Update Course,November,2016 Managing Appraiser Liability,November,2016 + Florida Appraisal Laws and Regulations,November,2016 Advanced Hotel Appraising-Full Service Hotels,November,2016 VALUE INFORMATION TECHNOLOGY,INC. F® "Perspectives on Appraisals"FREAB Course ACE#1591,June, 1995. NORTH BROWARD BOARD OF REALTORS y ACE 591-Basics of Construction-How a Florida Home is Built II,January, 1994. Certification: State certified general real estate appraiser, as designated by the Department of Professional Regulation,State of Florida;Registration No.RZ 2164. Licensed Real Estate Salesperson,as designated by the Department of Professional Regulation, State of Florida;License No.SL 0589552(currently inactive). E Professional Associations: Key West Board of Realtors 0 General Associate Member of the Appraisal Institute U Member of RICS(Royal Institute of Chartered Surveyors),October,2010 Member41299389 >% Z LO Affiliations: Past President of the Key West Gator Club(Alumni Organization of the University of Florida LO Member of Class VIII,Leadership Monroe County N Board Member of the Rotary Club of Sunset Key West,2013/2014 President,2009 Treasurer, - 2010 Vice President,2011 President-Elect,2012 President Board of Directors of the Key West Chamber of Commerce, Current Board Member Experience: WILCO VALUATIONS,P.A. d/b/a APPRAISAL COMPANY OF KEY WEST,James Wilson, President and his wife, Maria Virginia Wilson, also a State Certified General Real Estate Appraiser purchased the Appraisal Company of Key West from Mr. Richard Padron in April, N 2004. APPRAISAL COMPANY OF KEY WEST,INC.,Fee Commercial Real Estate Appraiser,April, Cy 1994 to April,2004. N F.C.P.APPRAISAL SERVICES,INC.,Senior Real Estate Appraiser and Trainer,May,1992 to April, 1994. 03 Appraisal Company of Key West Page 98 Packet Pg. 2781 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL Appraised various types of properties in the Florida Keys,including: Retail Stores Commercial/Residential Condominiums Restaurants Full-Service Marinas/Boat Yards Strip Centers Environmentally Sensitive Acreage Office Buildings Industrial Uses Mixed-Use Properties Guest Houses/Hotels/Motels Service Stations Mobile Home and RV Parks Multi-family Projects Warehouse(including mini-storage) .� Proposed Developments Special-Use Properties including Schools Single-family Estates Seafood Processing Plants APPRAISER CERTIFICATION t'is MCI<SCOTT,GOVERNOR JONATHAN ZACHEM,SECRIFIARY bp ry STATE OF FLORIDA DEPARTMENT OF BUSINESS,AND PROFESSIONAL REGULATION 0 FLORIDA REAL ESTAtEAPPR'AISAL BD � THE CERTIFIED GEhlERALAPPMISERtHERE RTIFIED UNDER THE LO PROVISIt'N�S 0F`+CHAPTE 75,FLQRI ''A 5TATUTE5LO 11VILN,DAMES 74 I�I09'1 H II E 6 R 54.1-TE 2C Fa LICENSE IVt7M�E42 R21i4 _ _ r EXPI 1TIbN Cl�tiYE. NCIVEMB It 3t},2020 Always verity licenses online at IviyFioridaLicense.com CD I� I� Do not alter this document In any farm. � This is your license.It is unlawful for anyone other than the licensee to use this document. � Appraisal Company of Key West Page 99 Packet Pg. 2782 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL Professional Qualifications Richard Padron, CCIM, MSA, AAR, SRC Richard Padron has a diverse background in the real estate industry. His experience and education in the real estate profession have continually excelled. He has been affiliated in residential construction, real estate development and the real estate brokerage business for more than 28 years. During this time,he has managed construction projects,marketed,and sold several hundred homes in various subdivisions in the Florida Keys and Key West,and has appraised thousands of single family,multi- family and commercial properties. His real estate career has involved the entire development process from acquisition to project y sellout,including the permitting and operation of wastewater treatment systems,as well as dealing with environmental concerns. Prior to founding the firm,Appraisal Company of Key West,Inc.,Mr.Padron formed the corporation of Richard Padron& Associates,Inc.,areal estate brokerage corporation. These corporations have been inexistence since 1984,providing all types of real estate services,including brokerage;market,financial and investment analysis;expert witness testimony; appraisals; property operation review,and planning and feasibility analysis. s Education: Real Estate Certificate from Florida Keys Community College Professional Activities: MSA: Master Senior Appraiser,(1984). Certificate No. 00883. CCIM:Certified Commercial-Investment Member, (1986). Certificate No. 2765. AAR: Accredited in Appraisal Reviewer,( 1987). Certificate No. 77. We SRC: Senior Real Estate Councilor,(1993). Certificate No. 89. E Certification: State-Certified General Real Estate Appraiser,License No. 0000544,(1990). Licensed Real Estate Broker, State of Florida. Licensed Class A Wastewater Treatment Plant Operator, State of Florida. U Associations: National Association of Realtors � Florida Association of Realtors 'n LO Key West Board of Realtors 00 N Marathon and Lower Keys Board of Realtors. 4- National Association of Master Appraisers Commercial-Investment Real Estate Council. Accredited Review Appraisers Council National Association of Counselors Experience: Appraisal Company of Key West,Inc. (Since 1987) cy Richard Padron&Associates,Inc. (Since 1984) T_ Michael A.Padron,Inc. (1978-1984) Riviera Enterprises,Inc. (1968-1984) � N Area of Expertise:• Analysis and evaluation of many types of real estate • Assessment of project feasibility including: Market research,investment analysis,and feasibility study Highest and Best Use Analysis • Litigation support and expert witness testimony • Types of properties appraised,evaluated,and analyzed: Hotels,Motels&Guesthouses Retail/Office and/or Specialty Stores Shopping Centers&Malls Warehouses(Mini, Storage&Distribution) Restaurants Appraisal Company of Key West Page 100 Packet Pg. 2783 O.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL Highest&Best Use Study Theaters Mobile Home&Recreation Vehicle Parks Marinas,Boat Storage&Repairs Single Family Residential&Condominiums Seafood Packing House Multi-Family&Income Properties Multi-Family Projects _ Environmentally Sensitive Tracts Proposed Development Projects 0 LO LO 00 cv 4- 0 c� cv cv CD cv Appraisal Company of Key West Page 101 Packet Pg. 2784 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL APPRAISER CERTIFICATION RICK SCOTT.GOVERNOR JONATHAN ZACHEM.SECRETARY dbpr STATE OF FLORIDA sss333y DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION I FLORIDA REAL£STATE'APP►'W,, SAL BD THE CERTIFIED ClENEkA AP}�{ ES `'FfEf t I?,C RCI,FIED UNDER THE I PROVISIO�YStIF GHART��475,FLC7RICTTA,STAT,l3TE5 i ;PAC?Rt?I'J,1 RICHA1tD 3229,,FLA LER A VE Y;41` .. ut KE'Y WEST, FL b4b,40; W LICENS7=IVUMBER.RZ54+} � � EXRIRATIAN�A Et.ft1CIVEMBER 30,2020 �~ Always verify licenses online at MyFloridaLicense.com I $0 E Do not alter this document in any form. 8 ®F This is your license.It is unlawful for anyone other than the licensee to use this document. 0 to to 00 4- 0 tt7 N r N CD U Appraisal Company of Key West Page 102 Packet Pg. 2785 0.3.j Appraisal Report 7849 Overseas Highway, Marathon, FL END NOTES 1 The Appraisal of Real Estate, Page 80. ca LO LO co cv 4- 0 cv cv CD cv u Appraisal Company of Key West Page 103 Packet Pg. 2786 3144 Noertfiside Drke,Ste 201 " APPRAISAL Co . Ney W"t 1"1.330411 Fact(305)922_2111) websttt:lla-ke}-sapprx4salsxonl �.-an�ral ji�ov a€lsr-�e��raltl�rau��als.avnt January 13, 2020 Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL(Florida Keys) 102050 Overseas Highway Key Largo, Florida 33037 RE: FEMA Evaluation Depreciated Replacement Cost of Subject Building v, 2855 Overseas Highway Marathon, Florida 33050 Our File No. 194-19 -,-Z Dear Mr. Wilson: The Appraisal Company of Key West, does hereby state that upon your request an on-site visit and LO co estimate of the Market Value of the Subject Property's Building Improvements based on a Depreciated N Cost or Actual Cash Value(ACV)analysis as of the valuation date of October 24,2019. The Marshall, 0 Swift & Boesch/CoreLogic, BVS, Replacement Cost Worksheet program along with depreciation estimates were utilized for this report. The subject property is located on the Overseas Highway,within the City of Marathon at approximately mile market 49. The subject site consists of a corner parcel fronting 100 linear feet along the southerly side of Overseas Highway and fronts 150 linear feet along the westerly side of 29th Street for a total site 1'- area of 15,000 square feet, according to the Monroe County Plat Map. The subject site is improved with a one-story CBS/masonry building containing 5,778 square feet of gross building area. In addition, it includes five covered entries containing a total of 646 square feet. The subject property was formerly utilized by the Fisherman's Hospital health clinic and purchased by Baptist Health group. According to the Monroe County Property Appraiser's records, the subject property was built in 1972. Measurements were taken on-site by the appraisers. The Actual Cash Value (ACV), according to the FEMA "Desk Reference: Substantial Improvement/Substantial Damage" dated May 2010,page 4-15 is the cost to replace a building on the same parcel with a new building of like kind and quality,minus depreciation due to age,use and neglect. Depreciation accounts for the physical condition of the structures without taking into account the functional obsolescence for factors that are external to the structure. Packet Pg. 2787 Mr. Kevin G. Wilson, P.E. Assistant County Administrator January 13, 2020 Page 2 It is further stated that,to the best of our knowledge and belief,the valuations contained in this appraisal are correct. We have no present or contemplated future interest in the property appraised and compensation for making this appraisal is in no manner contingent upon the value report. Our opinion that the Market Value of the Subject Property's Total Building Improvements based on a Depreciated Cost or Actual Cash Value of Building Improvement, (not including site improvements) were (Rounded): , ONE MILLION TWENTY THREE THOUSAND DOLLARS ($1,023,000) _ The subject property was appraised and inspected on October 24,2019. Our Valuation is based on this date. No liability is assumed for the soundness of structural components,since no engineering tests were made available and it is beyond the scope of this report. If you have any questions regarding this appraisal report,please feel free to contact us. Thank you for giving us the opportunity to provide this service. Respectfully submitted, LO LO co APPRAISAL COMPANY OF KEY WEST 0 James E. Wilson, MRICS, President Richard Padron, CCIM, MSA State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ 544 email:jin i(y thi-1_cvs ippr<ri��jis.coni enwil:richardp�c�Ifla-keysa-oDraisals.com I N N Report Attached: R:AComm-19\194-19\Comm-194-19.wpd Packet Pg. 2788 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL ASSUMPTIONS AND LIMITING CONDITIONS 1. This is a Restricted Appraisal Report which is intended to comply with the recertification reporting requirements set forth under S.R. 2-2 (b) of the Uniform Standards of Professional Appraisal Practice. As such, it presents limited discussion of the data,reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning,and analyses is retained in the appraiser's original file. The depth of discussion contained in this report is specific to the needs of the client and for v, the intended use stated below. The appraisers are not responsible for unauthorized use of this report. In the case at hand, the Cost Approach, specifically, the Depreciated Value or the Actual Cash Value of the Subject Building Improvement was the only approach deemed applicable. The Sales Comparison and Income Approaches were considered, however,were not utilized herein due to the scope of this assignment. The assignment herein is to provide the Actual Cash Value of the Subject Building Improvement for a FEMA valuation report. The Actual Cash Value (ACV), according to the FEMA "Desk Reference: Substantial Improvement/Substantial Damage"dated May 2010,page 4-15 is the cost to replace a building on the same parcel with a new building of like kind and quality, minus depreciation due to age, is use and neglect. Za LO LO co 2. No responsibility is assumed by the Appraisers for matters which are of legal nature,nor is any opinion on the title rendered herewith. Good title is assumed as a title search was not made 0 available. 3. The property has been appraised as though free of liens and encumbrances, except as herein 0) described. Charges for solid waste collection are a special assessment in Monroe County; delinquent charges for solid waste collection,or other liens against the subj ectproperty,have not been considered in the valuation contained herein as a title search was not made available or M conducted by the appraiser. T 44 4. The management of the property is assumed to be competent and the ownership in responsible `D hands. 5. The Appraisers herein are not required to give testimony in court unless arrangements have been previously made thereof. 6. The Appraisers assume thatthere are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The Appraisers assume no respon- sibility for such conditions, or for engineering which might be required to discover such factors. Appraisal Company of Key West Page No. 3 Packet Pg. 2789 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL 7. Information,estimates and opinions furnished to the appraisers,and contained in the report,were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished to the Appraisers can be assumed by the Appraisers. 8. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraisers has not made a specific survey or analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a Ch compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements , of the Act. If so,this fact could have a negative effect upon the value of the property. Since the M appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of the ADA in estimating the value of the property has not been considered. 9. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of v, the professional appraisal organizations with which the Appraisers are affiliated. 10. The undersigned Appraisers have no present or contemplated future interest in the property and the compensation is in no manner contingent upon the value reported. 0 11. Possession of this report does not carry with it the right of publication or advertisement of any of its conclusions, nor may any except the applicant use the same for any purpose without the n co previous written consent of the appraiser or the applicant. 0 12. In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenance of the building, such as the presence of radon, asbestos material and/or existence of toxic waste,which may or may not be present on the property, has not been considered. However, the appraisers are not qualified to detect such substances. We urge the client to retain an expert in this field if so desired. Due to the age of the subject building(1972), it is possible that lead is present in paint chips from the subject building,as legislation prohibited lead paint post 1978. 13. The discovery of latent conditions is beyond the scope of this appraisal. Detection of latent conditions requires the expertise of qualified persons such as architects and engineers. Latent conditions include, among other things, non-apparent structural conditions; presence of 0) prohibited hazardous wastes; presence of radon gas, methane gas, asbestos, lead, petroleum products and other air, soil, or water contaminants; and many other conditions too numerous to mention which may affect the value of the property being appraised. The appraisers conducting this appraisal are not qualified to detect latent conditions and has conducted this appraisal upon the assumption that no latent conditions (including those mentioned above and others) exist on the property covered by this appraisal. Appraisal Company of Key West Page No. 4 Packet Pg. 2790 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL 14. The appraisers performed a recent site visit of the subject property October 24, 2019. Our valuation is based on this date. Dimensions and gross building area calculations are based upon dimensions taken on-site by the appraiser. 15. ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraiser conducting this appraisal, nor the APPRAISAL COMPANY OF KEY WEST make any warranty, express or implied,to property covered by this appraisal, and neither shall have any liability to any person for differences in the value of the appraised property,or other damages,resulting from discovery v, of latent conditions (including those mentioned above and others) on, or in proximity to, the appraised lands. LN 16. We hereby certify that to the best of our knowledge and belief the statements of fact contained in this report,upon which the analyses,opinions and conclusions expressed herein are based,are true and correct; also this report sets forth all the limiting conditions affecting the analyses, opinions and conclusions contained in this report; also this report has been made in conformity with the Appraisal Institute. 0 LO LO co 0 0 N N U Appraisal Company of Key West Page No. 5 Packet Pg. 2791 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL CERTIFICATION OF VALUE WE HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY: Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL (Florida Keys) 102050 Overseas Highway Key Largo, Florida 33037 , The appraiser performed a site visit of the Subject Property on October 01, 2019 which is commonly known as: � 2855 Overseas Highway Marathon, Florida 33050 We certify that our opinion thatthe Market Value of the Subject Property's Building Improvement based on a Depreciated Cost or Actual Cash Value of the Total Building Improvements, (not including site improvements), as of October 24, 2019 is (Rounded): 0 ONE MILLION TWENTY THREE THOUSAND DOLLARS ($1,023,000) n co cv 0 0 cv cv Appraisal Company of Key West Page No. 6 Packet Pg. 2792 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL WE ADDITIONALLY CERTIFY that, to the best of our knowledge and belief: - The statements of fact contained in this report are true and correct. - The reported analyses,opinion,and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal,unbiased professional analyses, opinions and conclu- sions. - We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parities involved. , - Our compensation is not contingent on an action or event resulting from the analyses, opinion, or conclusions in, or the use of, this report. - We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. The appraisers have not appraised the subject properties, nor engaged in a feasability study, consultation assignment, nor any other related service in connection with the above subject property over the three prior years. - Our analyses, opinions, and conclusions were developed and this report has been prepared in is conformity with the Uniform Standards of Professional Appraisal Practice invoking the departure provision. LO N - co Richard Padron made a personal site visit of the property that is the subj ect of this report. James 0 E. Wilson made an exterior site visit of the subject property. c, - The use of this report is subject to the requirements of the State of Florida relating to review by 0) the Florida Real Estate Appraisal Board of the Department of Professional Regulations,Division of Real Estate. w - The reported analyses, opinions and conclusions were developed, and this report has been CD prepared, in conformity with the requirements of the professional appraisal organizations with which the Appraiser is affiliated. N - This appraisal report is in conformity with the Uniform Standards of Professional Appraisal a Practices invoking the departure provision, and this appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. �t - The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Appraisal Company of Key West Page No. 7 Packet Pg. 2793 ! Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL - Mr. James E. Wilson, General Associate Member, has completed the Standards and Ethics education requirements of the Appraisal Institute. APPRAISAL COMPANY OF KEY WEST S � James E. Wilson, MRICS, President Richard Padron, CCIM, MSA State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ 544 s c co N 0 0 CD CD CD Appraisal Company of Key West Page No. 8 Packet Pg. 2794 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Description of Subject Property: The subject site is improved with a one-story CBS/masonry building containing 5,778 square feet of gross building area. In addition, it includes five covered entries containing a total of 646 square feet. The subject property was formerly utilized by the Fisherman's Hospital health clinic and purchased by Baptist Health group. According to the Monroe County Property Appraiser's records, the subject property was built in 1972. Measurements were taken on-site by the appraisers. Subject Property - Building Improvements Summary Tax Construction GBA Covered Year Appraiser's Us e Type 4 .S Ft EntrySF Built GBA SF 2855 OSK Nlarathonj Medical Office CBS/Masonry 5,778 646 1972 1 5,832 Total 5,778 646 5,832 °® c� Subject Improvement Description Building Age & Remaining Economic Life 0 Remaining i LO Year Effective Economic Economic 00 N L. Description Built Age Age Life Life ,0 Office 1972 47 15 55 40 The subject structure was in overall average condition with significant deferred maintenance deducted as a separate depreciation line, item. U_ The main structure consists of a concrete footer foundation with concrete slab at grade, steel reinforced CBS or CMU (Concrete Masonry Unit) exterior walls finished with painted stucco, while there are interior steel columns and beams and the roof deck is precast concrete with a membrane roof cover. The foyer is connected to the adjacent westerly building,which is notpart of the subj ectproperty herein. The 0) foyer is 751 square feet or 13%of the overall gross building area. The foyer is CMU construction over a concrete footer foundation with concrete slab at grade, plus a wood truss, hip roof structure with plywood roof deck covered by light weight concrete tiles. The Actual Cash Value (ACV), according to the FEMA "Desk Reference: Substantial Improvement/Substantial Damage" dated May 2010,page 4-15 is the cost to replace a building on the same parcel with a new building of like kind and quality,minus depreciation due to age,use and neglect. The subject property's replacement cost estimate utilizing the Marshall Valuation Service, Swift & Boesch/CoreLogic,BVS,Replacement Cost Worksheets follows. This service is continuously updated Appraisal Company of Key West Page No. 9 Packet Pg. 2795 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL and adjusted for local conditions. The Subject Building is classified by Marshall & Swift/CoreLogic Cost Service as Medical Clinic, (CBS/Masonry),ISO 2 for foyer and CBS/Masonry and protected steel frame (IS05) for the main structure. 0 LO LO co 0 N N U Appraisal Company of Key West Page No. 10 Packet Pg. 2796 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Valuation Detailed Report It, Property Express 1/13/2020 —--------------------------------------------------------------------------------------------------------------------------------------------- I VALUATION Ch Valuation Number: 194-19 Effective Date: 10124/2019 Value Basis: New Construction Expiration Date: 10/2312020 Cost as of: 06/2019 BUSINESS Fisherman's Health,Inc. 2855 Overseas Hwy Marathon,FL 33050-2239 USA LOCATION I -Fisherman's Health,Inc. —--------------------------------------------------- Fisherman's Health,Inc. 2855 Overseas Hwy Marathon,FL 33050-2239 USA 0 Location Adjustments Climatic Region: 3-Warm High Wind Region: 3-Major Damage LO 00 Seismic Zone: 1 -No Damage C"44 0 BUILDING I-Fisherman's Health 0 Section 1 SUPERSTRUCTURE Occupancy: 100%Medical Clinic Story Height, 12 ft. Construction Type: 13%Masonry(ISO 2) Number of Stories: 87%Protected Steel Frame(ISO 5) ILU u_ Gross Floor Area: 5,778 sq.ft. Gross Perimeter: 330 ft, Construction Quality: 2-0-Average Year Built: 1972 C44 Adjustments CD C44 User Adjustment Factor: 1.30-Resort Multiplier 1,10-Labor Shortage Multiplier E Hillside Construction: Degree of Slope:Level Site Accessibility: Good Site Position:Unknown Soil Condition: Good Fees Architect Fees: 8%is included Page I of 5 Appraisal Company of Key West Page No. 11 I Packet Pg. 2797 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL it Valuation Detailed Report Property Express CoreL(XpC Policy Number:194-19 1/13/2020 Overhead and Profit: 25%is included SUMMARY OF COSTS User Provided System Provided Replacement Exclusion SUPERSTRUCTURE Site Preparation $4,089 Foundations $96,364 Foundation Wall interior Foundations Slab On Ground U— Exterior $508,688 Framing Exterior Wall 21%Wall Openings Exterior Wall 100%Stucco on Masonry CJ Structural Floor Roof LO u7 Material 87%ti Single-Ply Membrane N 13%Tile,Concrete Pitch 87%Flat 13%s Medium(8:12 to 12:12 pitch) Interior $278,987 Floor Finish 60%Carpet 30%Tile;,Ceramic UJI 10%Tile,Vinyl r9 Composite r Ceiling Finish 100%®Suspended , Acoustical N Partitions N Length 724 ft. Structure 100%Studs,Girts, a) etc. Finish 100%Drywall 10%Paint 90%Wallpaper,Vinyl Mechanicals $654,394 Heating 100%Rooftop Unit Page 2 of 5 Appraisal Company of Key West Page No. 12 Packet Pg. 2798 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Valuation Detailed Report It Property Express CoreL(_KliC Policy Number:194-19 1/13/2020 �MARY OF COSTS, User Provided System Provided Replacement Exclusion Cooling 100%Rooftop Unit Fire Protection Plumbing 24 Total Fixtures Electrical 100%Average Quality Elevators Built-ins $105,161 SUBTOTAL RC $1,647,684 ADDITIONS Building Items $10,296 ns Custom Items Covered Entry/Exit&Canopy $75,000 Total Additions $85,296 TOTAL RC SECTION 1 $1,732,980 CJ 0 TOTAL RC BUILDING 1 Fisherman's Health $1,732,980 LO Replacement SqXt, $1Sq.Ft. LO 44 LOCATION TOTAL,Location 1 $1,732,980 5,778 $300 C" 0 Replacement Sq.Ft. $/Sq.Ft. VALUATION GRAND TOTAL $1,732,980 6,778 $300 CJ U_ C44 CD C44 E Page 3 of 5 Appraisal Company of Key West Page No. 13 1 Packet Pg. 2799 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Valuation Detailed Report Property Express oret.ogic EQUIPMENT REPORT Policy Number:194-19 1/13/2020 ns VALUATION v� Valuation Number: 194-19 Effective bete: 10/24/2019 Value Basis: New Construction Expiration Date: 10/23/2020 Cost as of: 06/2019 BUSINESS Fisherman's Health,Inc. F® 2855 Overseas Hwy Marathon, FL 33050-2239 USA c� LOCATION 1 -Fisherman's health,Inc. ns Fisherman's Health,Inc. 2855 Overseas Hwy Marathon,FL 33050-2239 USA C Equipment:Building items and site improvements CJ Replacement Depreciated Building 1,Section 1 LO Building Items cV Storm Shutters C (1)Accordion Hurricane Shutters $5,148 $5,148 us C (1)Accordion Hurricane Shutters $5,148 $5,148 rJ Custom Items (1)Covered Entry/Exit&Canopy $75,000 $75,000 LOCATION 1 -Fisherman's Health,Inc.TOTAL $85,296 $85,296 TOTAL $85,296 $85,296 c� r r cV CD cV Page 4 of 5 Appraisal Company of Key West Page No. 14 Packet Pg. 2800 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Valuation Detailed Report , Property Express CarO ogk SUMMARY REPORT Policy plumber:194-19 1/13/2020 VALUATION Valuation Number: 194-19 Effective gate: 10/24/2019 Value Basis: New Construction Expiration Date: 10/23/2020 Cost as of: 06/2019 BUSINESS _ Fisherman's Health,Inc. 2855 Overseas Hwy Marathon,FL 33050-2239 USA ctl LOCATION 1 -Fisherman's Health,Inc. Fisherman's Health,Inc. 2855 Overseas Hwy W Marathon,FL 33050-2239 USA BUILDING 1:SUPERSTRUCTURE Replacement Sq.Ft. $1Srq.Ft. Section 1: 1DO% Medical Clinic $1,647,684 5,778 $285 Section Totals Replacement Sq.Ft. $]Sq.Ft. LO Section 1: 100% Medical Clinic $1,647,684 5,778 $300 00 uO Total Additions: $85,206 BUILDING TOTAL,Building 1 $1,732,980 5,778 $300 m: ..__ —------ ti _..._ BUILDING INSURANCE SUMMARY Total Insured Amount $0 Percent of Insurance to Value 0% at 100%Co-Insurance Requirement $1,732,980 $1,732,980 100%Variance ($1,732,980) Replacement Sq.Ft. $I$q.Ft. LOCATION TOTAL Location 1 $1,732,980 5,778 $300 � Replacement Sq.Ft. $/Sq.Ft. , VALUATION GRAND TOTAL $1,732,900 5,778 $300CNI CNI End of Report C Page 5 of 5 Appraisal Company of Key West Page No. 15 Packet Pg. 2801 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Construction Quality: In estimating the quality of the subject's structure,the appraiser has utilized the BVS quality system which ranges from 1.5 Average to 2.4 Average,2.5 Superior to 4.0 Premium. Our estimate of the quality ranking is Average(2.0)for the valuation. While the system default is set at 2.0 Average,it is important to note that not all buildings are Average Quality(2.0),as a result,varying level ranks(grades) are necessary. Therefore,the appraiser must utilize his/her judgement and experience in ranking the quality of construction of the subject structure within the Florida Keys. Further, these are Replacement Cost New estimates,not Reproduction Costs,which must meet local Building Codes and current requirements. We included the Marshall&Swift Resort Area Multiplier. The"Resort"multiplier has been used in the Florida Keys for many years as a method to adjust for the difficulty to obtain skilled, construction labor CU and access to materials. The subject in question is located approximately 95 miles southwesterly from Miami and mainland Florida along one highway which crosses a total of 42 islands. Marshall& Swift, 1-- Section 99,Page 1,states that Special Local conditions require certain Local Multipliers and adjustments for Resort Locations, ie: "require higher freight charges on materials, noncompetitive conditions for v, labor or materials,disproportionate crewing or labor per diem charges. Examples are island,mountain, desert or resort locations..." The subject property's Resort multiplier has been compared against actual construction costs on an ongoing basis. We feel the 1.3 multiplier is an accurate measure for the subject's Marathon location at this time. In addition, a 1.1 multiplier for shortage of labor was needed, in the Florida Keys, especially subsequent to Hurricane Irma. is "As Is" Replacement Cost of Subject Property as of October 24, 2019 (Rounded)is: $1,733,000 n co cv 0 0 cv cv U Appraisal Company of Key West Page No. 16 Packet Pg. 2802 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Depreciation Estimate: Depreciation can be categorized into the following groups: a. Physical deterioration. This is an element of accrued depreciation, which can be curable or incurable. Curable physical deterioration is a curable defect caused by deferred maintenance. Incurable physical deterioration is an incurable defect caused by physical deterioration that is impractical or uneconomic to correct. b. Functional obsolescence. This is a loss in value caused by factors inherent within a building or building equipment unit. Factors include changes in construction materials and techniques, , which result in excess capital costs in existing facilities;lack of full use of space;and an inability to expand or update the property. C. Economic obsolescence. This is caused by external factors such as general economic conditions, availability of financing, or disharmonious property uses. We utilized the Modified Economic Age-Life Method in estimating physical depreciation for the subj ect building. We estimated the Effective Ages of the structures, as well as, its Total Economic Life for depreciation calculations as follows: 0 Actual Effective Economic Year Built Age Age Life Rate n co 1972 47 Yrs 15 Yrs / 55 Yrs = 27% 0 0 Depreciated Cost Analysis Marshall& Swift(Core Logic)BVS/Replacement Cost Estimate-October 24, 2019: $1,732,980 Less:Normal Depreciation(15/55=27%):Effective Age/Total Economic Life =Depr. Rate): 1 446 7e 90 5 i w Less:Deferred Maintenance Per Engineer Report: 1�241.920 U- Total Depreciated Cost for October 24,2019: $1,023,155 T_ Depreciated Cost of Subject Building (Rounded) $1,023,000CD 50%Allowance or Threshold $511,500CD cv "AS IS" DEPRECIATED COST VALUE OF SUBJECT PROPERTY,AS OF OCTOBER 24,2019 IS: (ROUNDED) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,023,000 We were provided with a copy of an Engineer's report prepared by Perez Engineering and Development, Inc.and Reynold's Engineering Services,Inc.,dated November 21,2019.The subj ectproperty had some significant deferred maintenance, spalling, and necessary repairs or replacements due to damage from Hurricane Irma;which made land fall on September 10,2017.The list and cost or repairs are as follows. Appraisal Company of Key West Page No. 17 Packet Pg. 2803 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL 2855 Overseas Highway Estimate Foundation and Floor slab Foundation to wall construction joint Demolish and reconstruct the adjacent sidewalks ,9 7�0 — Seal foundation/wall joint S1 300.00 Wicking action of concrete — Option: Seal top of slab S8,280M c� Walls— Snalling Tie beam cracked blocks.minor cracks at watt base — Spalling repair $112,MOM Class black repair $400,00 Corner spalling repair S 1.200.00 LO LO co cv Stucco repair °4S ,100.00 Interior beams and Columns Repair spalling and further assessment on cmu front wall ° l 240,00 Option: replace top section with additional rebar 2 450.00 r9 Roofing New tapered insulation,.modified bitumen roof 6 000.00 cv New gutters and down spouts S430M Roof overhan -East — Remove and reconstruct woad framing, sheathing,and stucco S5,400.00 roof overhang-south — Remove and reconstruct woad framing, sheathing,and stucco $5, 000.00 Appraisal Company of Key West Page No. 18 Packet Pg. 2804 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Roofing foyer — Remove existing roofing and replace with new metal panel roofing$1.7.400.00 foyer overhang — Repair facade `F1 2 800 00 foyer columns — New base plate and lower 2'of column $3,400.00 Option: Excavate and pour new foundation cap $3,200,00 � Toyer retrofit strappin of roof trusses W — Add strapping Clown to cmu 2 200.00 0 — Add strapping down to steel beam '33,200.00 LO Adjacent roperty tie beam spalling f ur LO co cv Moderate spalling repair '5 s 1 r trim n bucks r n r Uc l l boor .400,00 — Option-. Remove glass blocks and add lintel $600.00 r9 u t tal 187 070.00 cv Subtotal with options $201.,600.00 Total with profit and overhead $224,484,00 Total with all options,12rofit,and overhead 241 920-00 Appraisal Company of Key West Page No. 19 Packet Pg. 2805 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL PROFESSIONAL QUALIFICATIONS JAMES E. WILSON, III, MRICS James E.Wilson has been aresident of South Florida since 1976. His education includes a Bachelor of Science in Business Administration with a Major in Economics from the University of Florida,1987-1991. His experience in the real estate industry began in early 1992 as a residential real estate appraiser in M Pompano Beach,Florida. He appraised a wide variety of single and multi-family residential properties in Dade, Broward, and Palm Beach counties over a two-year period. In the search of advancement and -� challenge, James Wilson moved to the City of Key West, Monroe County, Florida in order to obtain experience and practice commercial real estate appraisal valuation techniques in a demanding and somewhat unique market area. Over the past 25 years James has been exposed to a wide-range of appraisal projects, including highest and best use studies,complex property appraisals,and wetland and environmentally sensitive valuations including transferrable development rights. His appraisal experience includes financial and investment analysis,appraisal review,feasibility and planning analysis,as well as market research and analysis. James Wilson is a State Certified General Real Estate Appraiser(licensed to perform residential and commercial appraisals)and a General Associate Member of the Appraisal Institute. He is a member of RICS (Royal Institution of Chartered Surveyors),which is an international member organization for professionals in property,land,real estate, construction and related environmental issues.Jim is past President of the Key West Gator Club,2013/2014 President of the Sunset Key West Rotary Club,member of Class VII Leadership Monroe,2012 President ofthe Key West Chamber of Commerce,and has been elected to continue to serve on the Board of Directors of the Key West Chamber of Commerce.Jim is still an active member on the Board of M Directors for the Key West Chamber of Commerce. Education: SOUTH BROWARD HIGH SCHOOL,Hollywood,FL, 1987. 0 UNIVERSITY OF FLORIDA,Gainesville, Florida-Bachelor of Science in Business Administration- >% Major in Economics, 1987-1991. -a LO LO APPRAISAL INSTITUTE 00 Appraisal Reporting of Complex Residential Properties,October, 1993. Persuasive Style in Narrative Appraisal Reports,May, 1994. ACE 1779-"Special Purpose Properties-The Challenge of Real Estate Appraising in Limited Markets", September, 1996. U 410 Standards of Professional Practice,Part A(USPAP),8/97. 420 Standards of Professional Practice,Part B,August, 1997. 520 Highest&Best Use and Market Analysis,October, 1997. Non-Conforming Uses Seminar,January, 1998. 510 Advanced Income Capitalization,May, 1998. 530 Advanced Sales Comparison&Cost Approach,May, 1998. �y 540 Report Writing&Valuation Analysis,August, 1998. 550 Advanced Applications,February, 1999. Regression Analysis in Appraisal Practice:Concepts&Applications,Seminar,March,2000. General Demonstration Appraisal Report Writing Seminar,March,2000. N 800 Separating Personal&Real Property from Intangible Business Assets,March,2002. .. Successful Completion of the General Comprehensive Examination for the Appraisal Institute Uniform Appraisal Standards for Federal Land Requisitions,March,2007 E General Demonstration Appraisal Report Writing Seminar,August,2007 Valuation of Conservation Easements,January,2008. Appraising Distressed Commercial Real Estate,June,2009 Oil Spills and Property Values,Webinar,August,2010 Business Practices and Ethics,September,2010 A Debate of the Allocation of Hotel Total Assets,October 26,2010 Appraisal Institute Update,May 19,2011 Appraisal Curriculum Overview(2-day General)May,2011 Appraisal Company of Key West Page No. 20 Packet Pg. 2806 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Professional Qualifications of James E. Wilson, III(Continued) APPRAISAL INSTITUTE Perspectives from Commercial Review Appraisers,July 20,2011 Fundamentals of Separating Real Property,Personal Property,and Intangible Business Assets,05/07/2012- 05/08/2012 UAD-Up Close and Personal,November,2014 Expert Witness Testimony:To Do or Not to Do,November,2014 Analyze This!Applications of Appraisal Analysis,November,2014 Florida Appraisal Laws and Regulations Update Reviewers Checklist,November,2014 National USPAP Update Equivalent(2014-2015),November,2014 Purchase Price Allocations for Financial Report and Tax,April 16,2014 Behind the Headlines,the New Real Estate Real Estate Economy,May 16,2014 GOLD COAST SCHOOL OF REAL ESTATE Real Estate Principles,Practices,and Law-FREC Course I,May, 1992. Salesman Post-License Program,February, 1994. Mortgage Broker,Exam-Prep Program,September, 1992. AB I-Appraisal Board-Fundamentals of R.E.Appraising,5/92. AB II-Appr.Board-Appraising Resid.&Income Properties,2/94. AB IIb-Appraisal Board-Cert.Resid.Appraisal Course,7/94. AB III-Appraisal Board-Certified General Appraisal Course(Income Capitalization Course),February, 1995. USPAP-Uniform Standards of Professional Appraisal Practice,6/92. U USPAP Course,September, 1995. A-102-Plan Reading for Appraisers,September, 1995. National USPAP Update Course,June 2006 LO Techniques of Income Property Appraisal,June 2006 ate N McKISSOCK DATA SYSTEMS Automated Valuation Models, October,2000. Uniform Standards of Professional Appraisal Practice,October,2000. U Factory Built Housing,October,2000. _ Appraiser Liability,September,2002. Appraising Nonconforming&Difficult Properties,September,2002. Appraiser Liability,USPAP,September,2002. < Appraising for the Secondary Market,October,2004. Appraising High-Value Residential Properties,October,2004. U_ Florida Laws and Regulations,October,2004. ry Limited Appraisals and the Scope of Work Decision,October,2004. National USPAP Equivalent,October,2004. Florida Laws and Regulations,September 2006. N Disclosures and Disclaimer,September,2006. CD Appraisal Trends,September 2006. N National USPAP Update Equivalent(2008-2009),November,2008. Introduction to Expert Witness Testimony,November 2008. Mortgage Fraud-Protect Yourself,November,2008. Florida Appraisal Supervisor-Trainee Roles and Relationships,November,2008. Florida Laws and Regulations,November,2008. National USPAP Update Equivalent(2010-2011),August,2010. Risky Business:Ways to Minimize Liability,August,2010. Appraisal Company of Key West Page No. 21 Packet Pg. 2807 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Professional Qualifications of James E. Wilson, III(Continued) Florida Laws and Regulations,August 2010. Florida Apprisal Supervisor-Trainee Roles and Relationships,August,2010. The Changing World of FHA Appraising,August,2010. Systems Built Housing:Advances in Housing for the New Millennium,October,2012 Deriving and Supporting Adjustments,October,2012 Introduction to Regression Analysis for Appraisers,October,2012 Introduction to Residential Green Building for Appraisers,October,2012 Florida Appraisal Laws and Regulations Update National USPAP Update Equivalent(2012-2013),October,2012 , Appraisal of Fast Food Facilities,November,2016 2016-201 7-Hour National USPAP Update Course,November,2016 Managing Appraiser Liability,November,2016 Florida Appraisal Laws and Regulations,November,2016 Advanced Hotel Appraising-Full Service Hotels,November,2016 Florida Appraisal Laws and Regulations,October 31,2018 2018-2019 7-Hour National USPAP Update Course,November 2018 Appraising Small Apartment Properties,November 2018 Appraisal of Land Subject to Ground Leases,November 2018 The Basics of Expert Witness for Commercial Appraisers,November 2018 VALUE INFORMATION TECHNOLOGY,INC. "Perspectives on Appraisals"FREAB Course ACE#1591,June, 1995. NORTH BROWARD BOARD OF REALTORS Ly ACE 591-Basics of Construction-How a Florida Home is Built II,January, 1994. LO co 0 Certification: State certified general real estate appraiser,as designated by the Department of Professional Regulation, State of Florida;Registration No.RZ 2164. Licensed Real Estate Salesperson,as designated by the Department of Professional Regulation,State of W Florida;License No.SL 0589552(currently inactive). e( Professional LU U_ Associations: Key West Board of Realtors �y General Associate Member of the Appraisal Institute Member of RICS(Royal Institute of Chartered Surveyors),October,2010 Member41299389 Affiliations: Past President of the Key West Gator Club(Alumni Organization of the University of Florida C44 Member of Class VIII,Leadership Monroe County N Board Member of the Rotary Club of Sunset Key West,2013/2014 President,2009 Treasurer,2010 Vice President,2011 President-Elect,2012 President Board of Directors of the Key West Chamber of Commerce, Current Board Member E Experience: WILCO VALUATIONS,P.A. d/b/a APPRAISAL COMPANY OF KEY WEST,James Wilson,President and his wife,Maria Virginia Wilson,also a State Certified General Real Estate Appraiser purchased the Appraisal Company of Key West from Mr.Richard Padron in April,2004. APPRAISAL COMPANY OF KEY WEST,INC.,Fee Commercial Real Estate Appraiser,April, 1994 to April,2004. F.C.P.APPRAISAL SERVICES,INC., Senior Real Estate Appraiser and Trainer,May, 1992 to April, 1994. Appraisal Company of Key West Page No. 22 Packet Pg. 2808 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Appraised various types of properties in the Florida Keys,including: Retail Stores Commercial/Residential Condominiums Restaurants Full-Service Marinas/Boat Yards Strip Centers Environmentally Sensitive Acreage Office Buildings Industrial Uses Mixed-Use Properties Guest Houses/Hotels/Motels Service Stations Mobile Home and RV Parks Multi-family Projects Warehouse(including mini-storage) -� Proposed Developments Special-Use Properties including Schools Single-family Estates Seafood Processing Plants APPRAISER CERTIFICATION '� `• RICK SCal T,GOVERNOR JONAT'HAN ZACHEK SECRETARY dpr 0 i STATE OF FLORIDA LO DEPARTMENT OF BUSINESSAND PROFESSIONAL REGULATION LO FLORIDA REAL ESTATEAPPRAISAL BD THE CERTIFIED GENERAL a PPfERHf IED UNDER THE PRC)VISINS C)F, HAPTF75,FL09I4 STATUTES A t ,RTH i6t'6R SVIT001 kg '0 ,r g LICENSE NUM'8ER:, 164 � r CX( i YAT ON ATE, hI4 LtEh46Ei2 30,2b24„.v Nways verify licenses online at MyRoridal.icense.com N N Do not alter this document in any farm. This is your license.It Is unlawful for anyone other than the licensee to use this document. Appraisal Company of Key West Page No. 23 Packet Pg. 2809 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Professional Qualifications Richard Padron, CCIM, MSA, AAR, SRC Richard Padron has a diverse background in the real estate industry. His experience and education in the real estate profession have continually excelled. He has been affiliated in residential construction, real estate development and the real estate brokerage business for more than 28 years. During this time,he has managed construction projects,marketed,and sold several hundred homes in various subdivisions in the Florida Keys and Key West,and has appraised thousands of single family,multi- family and commercial properties. His real estate career has involved the entire development process from acquisition to project Ch sellout,including the permitting and operation of wastewater treatment systems,as well as dealing with environmental concerns. Prior to founding the firm,Appraisal Company of Key West,Inc.,Mr.Padron formed the corporation of Richard Padron& Associates,Inc.,areal estate brokerage corporation. These corporations have been inexistence since 1984,providing all types of real estate services,including brokerage;market,financial and investment analysis;expert witness testimony; appraisals; property operation review,and planning and feasibility analysis. s Education: Real Estate Certificate from Florida Keys Community College Professional Activities: MSA: Master Senior Appraiser,(1984). Certificate No. 00883. CCIM: Certified Commercial-Investment Member, (1986). Certificate No.2765. AAR: Accredited in Appraisal Reviewer,( 1987). Certificate No. 77. SRC: Senior Real Estate Councilor,(1993). Certificate No. 89. Certification: State-Certified General Real Estate Appraiser,License No. 0000544,(1990). LO Licensed Real Estate Broker, State of Florida. 00 N Licensed Class A Wastewater Treatment Plant Operator, State of Florida. 0 Associations: National Association of Realtors 0 Florida Association of Realtors Key West Board of Realtors Marathon and Lower Keys Board of Realtors. CL' National Association of Master Appraisers < Commercial-Investment Real Estate Council. 2 UJ Accredited Review Appraisers Council National Association of Counselors Experience: Appraisal Company of Key West,Inc. (Since 1987) ' Richard Padron&Associates,Inc. (Since 1984) � Michael A.Padron,Inc. (1978-1984) N Riviera Enterprises,Inc. (1968-1984) Area of Expertise: • Analysis and evaluation of many types of real estate • Assessment of project feasibility including: Market research,investment analysis,and feasibility study Highest and Best Use Analysis • Litigation support and expert witness testimony • Types of properties appraised,evaluated,and analyzed: Hotels,Motels&Guesthouses Retail/Office and/or Specialty Stores Shopping Centers&Malls Warehouses(Mini, Storage&Distribution) Restaurants Highest&Best Use Study Appraisal Company of Key West Page No. 24 Packet Pg. 2810 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL Theaters Mobile Home&Recreation Vehicle Parks Marinas,Boat Storage&Repairs Single Family Residential&Condominiums Seafood Packing House Multi-Family&Income Properties Multi-Family Projects Environmentally Sensitive Tracts Proposed Development Projects APPRAISER CERTIFICATION RICK.SCOTT,GOVERNOR JONATHAN ZACHEM.SECRETARY [ �4¢ -I III q pr l STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APO, 9FR,,,'H_R��fllila'CER1'rFIED UNDER THE ¢ FROVISIf NS.OFCNAFT ft475,FLC712bASTATUTES CIO toto AIDRON .IIICIdAR, :, cV 3 "ELAGLERAVE#101 0 N4EY IN,EST FL Q4U I 0 ��..m LICENSE NUP+EBER R�544 _ 8 � § EXPIRATION C9AE �901+EtvIBER 30,2020 u Always verify licenses online at MyFloridaLicense.com iUJI I Do not alter this document in any form. I r I This is your license.It is unlawful for anyone other than the licensee to use this document. N O U Appraisal Company of Key West Page No. 25 Packet Pg. 2811 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY I, t,{ r a 1� r � t kP na �4 — .E+ 0 Street View Looking Easterly the Overseas Highway , co N 0 0 ors ,ON CD CD �� �� ' I'"'�jis si a��� N E � 7Pr --.. + 55'��i{'����: Street View Looking Westerly Along the Overseas Highway Appraisal Company of Key West Page No. 26 Packet Pg. 2812 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY trS It�lt) tT 4 �t4 hy�W�z`iys7��A All t tJ Front/Side View of the Subject Building Looking Southwesterly LO co 0 0 t= fl � t dr rl Rear/Side View of the Subject Building Looking Northwesterly Appraisal Company of Key West Page No. 27 Packet Pg. 2813 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY � r r co rr r Front Entrance View Looking Southerly N 0 c s E i No i Rear Entrance View Looking Northerly Appraisal Company of Key West Page No. 28 Packet Pg. 2814 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY �1 1, {,6, a +th + , r t� J co � I I e W Rear& Side Entrance View Looking Northwesterly 0 0 � 1 + U Interior View of Reception/Waiting Room Appraisal Company of Key West Page No. 29 Packet Pg. 2815 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY "Al r LO LO co View of Typical Restroom C44 0 c et i g � N U View of Kitchen Area/Employee Lounge Appraisal Company of Key West Page No. 30 Packet Pg. 2816 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY 7 S 4 i 6 ' i t r�ti T 1 i View of Typical Examining Room %� i LO co 0 c r s�� ` N N U View of Conference Room Appraisal Company of Key West Page No. 31 Packet Pg. 2817 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY r11U Utrr} V��si�}t,Sfi JS t �rlit is Ott ttt �it } t� - �",}t{yytsr is t� tip r tit1 ?J ' �zsttU - � t 4✓ t��,}r t 1r�f�t ut+r t ,,,4 £It�i { r���{K � � t s � tJ LO LO co View of Front Offices 0 c 7 Pl �:t C„ �t r, c44 N I 1 t i View of Electrical Room Appraisal Company of Key West Page No. 32 Packet Pg. 2818 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL SUBJECT PROPERTY 31 \s�l(fitl,1 LO LO co View of Spalling on Southeast Corner C44 0 c N CD View of Water Damage on Northeast Corner Appraisal Company of Key West Page No. 33 Packet Pg. 2819 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL STATE MAP 'n LO cv U r9 cv CD cv u Appraisal Company of Key West Page No. 34 Packet Pg. 2820 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL FLORIDA KEYS MAP FLORIDA Key Largo MM 99-106 Tavernier MM 91-92 Plantation Key MM 86-90 (n�—Windley Key MM84 U) Islamorada Upper Matecumbe Key ME80 c W N `J'C//R o Lower Matecumbe Key MM74 Fiesta Key MM70 r L.3yton Wjy/� 1 5 �' Long Key MM66-69 COCrhKeyys Mrt61 &llGrassy Key MM57-60 yawl KeLO - a-rathon 1hores Key Colony Beach MM54 LO Vaca Key CV Marathon M7450 _ L, eon Key MM45 7 le Bridge A N 04. � �Ooa -Su ne Key MM 40�� Ba Honda MM 37-38 _ Mi� Pin MM}�3M0M-M .r j¢.elTorG t amro 2bfi22M7M 28 Summer MM MM 24-25 Sugaulko? Key22-2�2-23 lower Sugarloa.£ Key MM 17 Uj Saddlebunch Keys MM 13-16 o ig Coppitt MM 10 r Boca Chica MM 7-8 r Stock Island MM 5 Key West MM 0-4 N U Appraisal Company of Key West Page No. 35 Packet Pg. 2821 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL LOCATION MAP ry. _ Y �AM tit Sy p�p�W� �J 7( K r� co N 0 0 tJ Boot Key H bolr cu 4 r N CD U Appraisal Company of Key West Page No. 36 Packet Pg. 2822 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL AERIAL PLAT MAP qPublic.net"' Monroe County, FL y° V �+ Ait �" A x � Legend Ile ddD r N � - �..� Centerline Easements .E+ �`� Latf lyres (B h 4 r —LU41 U4 Road Center 1 $ Rights of Wa Shoreline - 4 0 ��`��' .CarudoBuild�ing 0 ty 1+ i "r, Key Names i it �d9 ' {t1. t subdivisions. Parcels �r d Y � 00 CV OP 1 2U f iFFite,.; Parcel ID 00321730(1(lOOW AUernateID 1396001 Owner Address FISHERMEN S HEALTH INC SecdTwp/Rng 09rUV32Class PROF,BLEXG 6855SW57thA+eeLIJ � PrapertyAddress 2855O..'UERSFASHwy 5outhMmmi,FL331.43 MARATHON'.. cy District SOCM r" Brief Tax 501VIBREROSUB 96PB2-93 MARATHON FLAL,OTS A-4 8-4&D-14(,)R488-55VY5600R306-1..311,'1.2 OR806-1:3340R1025.231CD r" Description CRIC184.-1707OR1099 11,3 0 112 862-10H1,'84 CD ' ,i `It ts..c.4:itE1a ,.;I a'$u a rn,J CV CD CV Gate.�reaarrr"^:4?7"9 Last Clad L�p m-r. ,4'2^'95 393S;hM CU Grv[=e#iP41 iDY SCi1f3eidizrE Appraisal Company of Key West Page No. 37 Packet Pg. 2823 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL BUILDING SKETCH 7 ................ 0 Overseas Kqhwa LO LO co 0 0 AREA, CALCULATIORS'SUM MARY BUILDING AREA BREkKDCkWN C-10 D�Sufi ptai% Nd um hattaws Svbt.41s r3A1 PIP co%*t't d T.y 450 92,20 . 34,76 28:57 3 P C.--ed Zrtty 110,35 1,50 . M 6b.. 454.so W.Ikv.y 101S.56 4G.64 . 60.65 -495.3,5 W.U.My 411.92 0-5 x 0-04 x 45.64 Q.74 0""t 9.4 zt tx 54 1 00, y Ell tn' 60.an C44 CC-& Em t�J; igloo 22M47 CD C14 E Net BUILDING Area (rounded) 5778 4 Items (ro unde d) 5778 Appraisal Company of Key West Page No. 38 1 Packet Pg. 2824 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL FLOOR PLAN A irq 0 FF►C 9 r EXAM x U) f AL- �F 1 ' EXAM tL z ryq 1 r V LO LO FXALA EXAM BATH ,IOU w Li C44 f ' N CONFERENG by Appraisal Company of Key West Page No. 39 Packet Pg. 2825 Restricted Appraisal Report 2855 Overseas Highway, Marathon, FL FLOOD MAP-FEMA National Flood Hazard Layer FIRMette I A Legend {,i'a&Ed 35"N .-- tt ars a_ am uGirlulr, r.nu[nm vFem�an[.a=an��e _- — _ ri= f!/aEhWNb69�F4 dEI V:NIme(9'f� SPECIAL FLOW MMdSM SFE qSN (� HAZAROAdRE0.3 Tip"H U Rfmdwar A, 0n Ch PIWH -NA ns % ch fl lift S, n Poh n aCa F M F-d H 4 A rm F d d . All, Ith R h of FI cn R H a— " ��jl. "C 4t ✓vet OTHERAREAS OF S Sa HM (� FlL000 HAZA14D Al- cxut re ,,.-- L- .2 Vl,3cmi A r>A I I R aer" rd, Efi LOMR OTHER AREAS _ 4 Ud- FI dH..nra -. �( 7 GENERAL M C " 5 S STRUCTURES ar lip 4c ❑Fr. d `.. � 1ot'Ia�I YFj t1 y}til t " if - t .A �I t'ff� E3�1RWa '� eua ra"t ro �. t8 t FEATURES a rwaav e 0 � U e Fe r t r U t,m o=X tal bare ea.ahsa 0 MAP PANELS dlnmwpsea t ny Ft e— re nv armnnvw roill. .ruase rnnPBtlb+en�Lmrr0l es rwimF ran ese ep LO t a � —f w .ap � Behr r lyt N r.W fl a n�! me 11 UPIL 1,1 rr 111a n , - e 1, i f h f h 1 Y 2 P e g a nP a �Y.r GIs, 0 &41i HE M a S ba P dFIPM H G t. Ito a ti � I G f1eoCWP OA1.Mp 11,19,fmLU {tl �!� - � .f(5g �LI rc+ = 1{ �' V�' m qy G a d IeE areascannm ba ufed far LL CD CD CD Ada! - Feet 1:5,�t3(� zs�azsi.�a a zsa scan t,oao t,saa z,aaa M r r N U Appraisal Company of Key West Page No. 40 Packet Pg. 2826 0 "O ---- MEN v rYe. �o y v -15 51 A5 LOCA'IOr AAF-r 5 '1 SEC. 6o5-R32E ' a . NFL j w l` _ W E aV „#o. >Feyri, ^'v MEND s finA s�o no �hr � rn v5�, NIs eA5 `w 13 �',t S{ It 0 10®0 ``, \lt'�a tf i} t as oau a'4 , 9 azs ��I �4.�4 s nc�s�s�� V �S t ,\ Y BOI LFGENO OG ME da fish} ® ° o To ',t t 'i O �-4 MEA s {? � � a 4111111 tau;,iu ME a i o trfi fl0siwid P" TIL, fS$3r��) {'4S f1 �ssuvFd'}t �t w "u i4 tf �; JPV't Flb s U( s ai "' r �� trd���1�'� t t" r t t ���\�v�v sSs`t � T tt st t ' isFf Ai}s i ❑,-+ t 4 2��, }t r 1 t `1) ,CC CC A t s4 Yar \g i CC CC 0 e r §b�ii t) .s f, \�4 (({{ ,`k>} (��a\t.:'lii �'�lk fit$,,, t 2�+��i„�" }sl�. �{+;❑, �,}{ �{ l„��,..,�,i. poi e o o,poi is \ A�tr 1 A- } 57 3.53 e so a rr_ ;6: i�an "titl�;t,i ti)�((i)\,� '} eP5 f l� ` r{il y(aru tr{�S1Ni sfJi i s t 3 tlt - - _ aSe tk 14ttS i) ; 1 r S����d a4�tt�rr,�ASlg (dZiYsVtSA"�� Y) S 't i r A S•H i� rU t ,yet a �ti i t y utG _ - _ _''' �- '- '__ _.. r kra�t�` k`ta ads,. �+rs ai31{��` a 1 ,\a s t;•(R'7{4�s �wf' ','Ptf�f��. _ ;-,._�. MAP OF 5OUNDAKY SURVEY _ - = 32' :OVERSEAS FIICII AY IAAFA'h0h ` FLORIDA KEYS MOWOE COUrLY 5TA:E OF FLORIDA LAND SURVEYING Ile-0Ob t.�-IL,FIWAY as/.4/20_0 U-A�OPF KCY R 33C42 = - FIICNE:00_.554690 _.,__ _�_ _. _ ,o/a2/202D GBF E F_MA I I'.LM (3 raiLcrrn 1 F Z1 Packet.Pg.2BII 0.3.m Professional Building 2855 Overseas Highway Marathon, Florida 33050 NuAyrtw 21,2019 - 4 LO co cv E s � ra m NNi k F� C? N -7r:>.z� .`s�` �"<��s�.'.a�.4�c�,.,�4i..�t^�7'��-��i�+��z�.���.��.`��t"..�hF��'t`�?✓�tv�ri" ;'ru,��.}��,t�'�t�',,. '.a, �x: r r Prepared by: N Perez Engineering and Development, Inc. 1010 Kennedy Drive, Suite 202, Key West, FL 33040 Certificate of Authorization No. 8579 In Conjunction With Reynolds Engineering Services, Inc. 24478 Overseas Hwy, Summerland Key, FL 33042 Certificate of Authorization No. 26597 Packet Pg. 2828 Pn)fessional Building M55 Overseas Highway _ Scctiou |-------------------------.Scope ofWork Section 2....................................................................Existing Conditions Scc�ou3--------------------- ��Discussion �� Section 4................................................................................conclusions Section 5......................................................................Recommendations Page 2 of 15 1 Packet Pg. 2829 � � � � � O.3.m The purpose of this Engineer Report is to provide a structural evaluation of the building located at the address listed; as well as a cost estimate for the recommended structural repairs. This assessment is based on visual observations of the readily accessible structural elements. It should be noted that no exploratory demolition or in situ testing was performed and this evaluation does not include architectural, mechanical, electrical, or plumbing features. This assessment is intended for the use by Monroe County Project Management and may not be relied upon, used by or referenced by any third party. It is understood that Monroe County is considering acquiring the property, for use as office space. Therefore, this assessment was requested to assist in planning for the possible acquisition. The structure is currently owned by; Fishermen's Health Inc, Miami FL (per Monroe County Property Appraiser). At the time of the assessment, the structure was vacant, however, its prior use was medical offices. The subject building consists of a primary structure and an enclosed foyer. The foyer N attaches the primary structure to an adjacent structure on a separate property. The adjacent property is occupied by doctor's offices (Community Health of South Florida, Inc.), and is not included in this assessment. The subject building is a single- story structure, constructed in 1972 (per Monroe County Property Appraiser). The primary structure generally consists of a concrete foundation at grade, steel reinforced iE CMU (Concrete Masonry Unit) exterior walls, interior steel columns and beams, and precast concrete panel roof deck. The foyer generally consists of concrete foundation 2 at grade, steel reinforced CMU walls, and wood truss roof framing. N CV EETSTR t ORE �.. (PRIAAARY) r' ON" t, 0# '�'1� ,��aN+€,C'�3, kvko-1 tra�a a�a ; n Site Map Page 3 of 15 Packet Pg. 2830 O.3.m These observations were conducted on 01 November 2019 by Jim Reynolds, P.E. and Justin Henika, P.E. Foundation and Floor Slab The floor system consists of a concrete slab on grade with a perimeter foundation that is assumed to be a concrete stem wall. The foundation and slab system did not evidence substantial deterioration or structural distress. However, multiple areas of the flooring evidenced discoloration and damage consistent with water intrusion. This water intrusion may have originated from the following possible points of entry: - Foundation to wall, construction joint o Construction joints at the foundation/wall interface are common practice. However, if standing water is present at the exterior of the structure, it may seep through the construction joint. It was observed that the sidewalks to the north, east and south of the primary structure had minimal slope away from the structure. Additionally, there were CO some areas at the sidewalk/wall interface that evidenced discoloration consistent with standing water. LO N - Wicking action of concrete a� o Concrete slabs can wick moisture from the earth below. Generally, E this is alleviated by placing a vapor barrier between the earth and slab, prior to concrete placement. If this vapor barrier was not placed or �t was damaged during construction, it would allow the concrete to wick moisture to the top of the slab. Although the adequacy of the vapor barrier is undetermined, the delamination and discoloration of the flooring are indicative of water standing on the top side of the slab. - Roof Leak o Various areas of the structure evidenced water intrusion through or N near the roofing membrane. This water can travel through walls undetected and collect underneath flooring. E - Roof Drains o The roof drains consisted of two drains that collected water near the center of the roof. These drains are piped down through the walls and under the slab, to the exterior of the building. Although no definitive leaks where observed, these systems are often a source of water intrusion, especially as the structure ages. At this time, water intrusion is not considered a structural concern, however, it is expected to continue to deteriorate the flooring and bottom of the walls. Page 4 of 15 Packet Pg. 2831 0.3.m Additionally, if it continues, deterioration of the slab and foundation system is expected. It is recommended that the potential sources of water intrusion be mitigated as follows. - Foundation to wall, construction joint o Demolish and reconstruct the adjacent sidewalks to provide positive drainage away from the structure. o While the adjacent sidewalk is removed, seal the foundation/wall construction joints from the exterior. o Alternate (Minimal Action): Leave sidewalks as existing and seal sidewalk/wall interface. - Wicking action of concrete o If flooring is planned to be replaced. Seal the top of the slab to limit = any wicking action that may be occurring. - Roof Leak o Re-roof entire structure CO - Roof Drains W LO CO o If re-roofing occurs, remove the two interior drains and replace with a system that drains water at the edges of the roof and away from the building. y r i1 a F. .r n s N � N Foundation to wall construction joint(west side, Walkway with minimal slope away from south of foyer) structure (north side) n�t Roof drain exiting perimeter of structure (south side) Page 5 of 15 Packet Pg. 2832 O.3.m Walls - Spalling Tie Beam, Damaged Glass Blocks, Stucco Damage The exterior walls and wall columns of the structure are constructed of CMU; with a formed and poured concrete tie beam over top, and clerestory glass block infill between columns. The tie beam throughout the structure evidenced various degrees of cracking. It is expected that this cracking is spalling related, and not structural overstress. Spalling is a common defect observed in reinforced concrete throughout the Florida Keys. In general spalling is caused by corroded steel reinforcement expanding within concrete. This expansive force causes cracking of the concrete member. If unrepaired spalling leads to member section loss and will reduce the capacity of the member, leading to structural failure. Water intrusion near the roof is expected to exacerbate the deterioration of the tie beam. Due to the nature of the spalling observed it is expected that sections of rebar have deteriorated significantly. It is recommended that all ±280 linear feet of tie beam will require various degrees of spalling repair, s including areas of full section replacement. The four corners of the primary structure evidenced the highest degree of spalling; extending from the tie beam into the column below. This may be attributed to the complexity involved in constructing building corners. The roofing and flashing are `O more complicated and may be sources of water intrusion. Additionally, concrete n CO reinforcing bar is often overlapped near corners, causing a higher reinforcement ratio. 2� More steel reinforcement in this area yields more spalling potential. E U) Tie beam heavy spalling (southeast corner) Tie Beam moderate spalling (north side) Page 6 of 15 Packet Pg. 2833 0.3.m 1 'tt � rt��t�t Tie beam heavy spalling (east side, interior) Building corner spalling (northwest corner) Eight glass blocks of the clerestory windows where observed to be cracked or have water intrusion implying cracking. At these locations the tie beam above evidenced more severe spalling. Therefore, it is expected that these damaged blocks are caused by either expansion of the tie beam above or previous debris impact. Although theses blocks are not considered structural, it is recommended that all damaged blocks be CO replaced to mitigate water intrusion. G LO CO cv REM et c) i Cracked glass block beneath spalling tie beam r- (east side) m U Page 7 of 15 Packet Pg. 2834 0.3.m The CMU wall has an exterior stucco finish. A metal vertical control joint is located midway between each set of columns. These control joints have begun to corrode causing damage to the stucco. Although the stucco finish and construction joints are not considered structural, they can be sources of water intrusion. It is recommended that the metal stucco control joints be removed and replaced with a corrosion resistant alternative (e.g. plastic). Additionally, other stucco damage shall be repaired in kind, as required. � t8 Stucco control joint(north east corner) LO CO cv Interior beams and Columns a� An interior roof support beam extends from front to back of the building, generally located in the center of the primary structure. This beam is constructed of a steel W- section; and is supported by (5) intermediate steel pipe columns (hidden in wall framing), as well as CMU wall columns at the front and back exterior walls. This beam and intermediate steel columns did not evidence structural distress or significant deterioration. However, only the areas above the ceiling were observed. Therefore, it is recommended that the base of the columns be exposed to confirm that corrosion is not present. Additionally, if the interior of the structure is to be remodeled; it is recommended that the steel beam and columns be cleaned and painted, to maintain the corrosion protective covering. a� The CMU column in the front wall (north side) evidenced cracking at the bearing location of the beam. Although it is expected that this cracking is spalling related, considering the condition of the surrounding tie beam; it is also possible this cracking C is caused by structural distress. It is recommended that the column be repaired per spalling repair plans, and further assessment be completed if corroded rebar is not encountered. Page 8 of 15 Packet Pg. 2835 0.3.m u� I I 1 SS44 r�` Interior steel column supporting interior roof Crack in exterior wall at interior roof beam beam bearing (north end) Roof Deck The roof deck is constructed of precast concrete panels. Water intrusion was M observed at the underside of the roof deck. However, the areas observed did not evidence signs of deterioration or structural distress. It is recommended that the roofing be replaced to stop water intrusion. The opinion of this assessment is that the roof deck is not in need of repair unless deteriorated sections are uncovered during repair of adjacent members. LO CO d E s O 4� r r Precast concrete roof deck, supported by Staining indicating water intrusion N interior roof beam YY : 4 7vr� <<3}f r t;ADI . + Roof deck bearing on exterior wall/tie beam Page 9 of 15 Packet Pg. 2836 0.3.m Roofing The roofing system over the main structure consists of modified bitumen roofing membrane, with a minimal slope towards the two interior drains previously described. Various portions of the structure evidenced water intrusion, likely originating from the roof and/or interior drains. Although water intrusion is not an immediate structural concern, it can result in the deterioration of structural members. It is recommended that a new roofing system be installed to eliminate any leaks. Additionally, it is recommended that the new roofing system have a larger slope and direct water to the edge and away from the building, rather than the current interior drain system. LO CO N $v Standing water near interior drain (main roof, Interior roof drain (main roof, north end) W north end) y W Cn Cn Roof Overhang - East This overhang consists of an extension of the concrete roof deck panels, with wood 2 framing below. The area of concrete deck observed, did not evidence deterioration or 2 structural distress. However, the wood framing below showed significant N deterioration from water intrusion and termites. It is recommended that the wood framing be removed and reconstructed, along with the sheathing and stucco. N N , E h 4� l._ i9pld>'�36idi „� S (i r, Roof overhang (east side) Page 10 of 15 Packet Pg. 2837 0.3.m Roof Overhang— South This overhang is constructed of wood framing and sheathing, with a stucco finish. The concrete roof panels do not extend over this area. The overhang framing and sheathing evidenced deterioration from water intrusion and termites. It is recommended that this overhang be removed and replaced. ,ftir) Roof overhang (south side) cn Roofing - FoyerCO The hip roof over the foyer is covered by lightweight concrete the roofing. This the n CO roofing is sporadically damaged and has a large damaged area at the northwest corner. It is expected that this damage occurred due to debris impact and was reported by Baptist Health personnel to have happened during hurricane Irma E (September 2017). It is recommended that the foyer roofing be replaced in its entirety-with roofing meeting the current required wind loads (such as, metal panel V- crimp, or standing seam). f _ y P r Foyer roof with sporadic damaged tiles (south Damaged foyer roof(northwest corner) end) Page 11 of 15 Packet Pg. 2838 0.3.m Foyer overhang The foyer roof overhangs the north and south sides of the foyer area. On the Northwest corner of the overhang, a portion of the sheathing and finish has been removed. This is also expected to be the result of debris impact, similar to the roofing directly above. This damage exposed the structural bar joist below. Near the face of the building, the bottom chord of the bar joist appears to have been cut approximately 80%through. It is recommended that the bar joist be repaired where cut and the siding and framing be repaired in kind. M� Damaged foyer overhang (northwest corner) Cut bottom chord of barjoist LO co Columns at Foyer Overhangs The foyer overhangs are supported by metal pipe columns with a wood facade. Two columns support the north overhang and two columns support the south overhang. y The northeast column base was the only location where the steel column could be observed, behind the wood facade. This column evidenced corrosion at the base, and it is expected that this condition is consistent at all four columns. If repairs to the structure are contemplated, it is recommended that the wood facades U) be removed to inspect and determine if significant steel section loss has occurred. If so, it is expected that this corrosion may be isolated to the base of the columns. Therefore, it may be necessary to replace the bottom 2' of the column, base plate and the top 2' of the foundation. E t; 1' jar Steel columns at foyer overhangs (northeast corner) Page 12 of 15 Packet Pg. 2839 O.3.m Foyer Roof to Wall Connection The foyer roof is constructed of wood trusses bearing on CMU walls (east and west sides) and steel beams (north and south sides). Generally, these trusses bear on a wood 2x sill plate, that is anchored to the structure below. Although these trusses are anchored to the sill plate, it is recommended that each truss be retrofitted with anchors directly to the supporting member below. Nit, 1111 E+ :E+ Roof to wall connection (foyer east side) Roof to steel beam connection (northeast corner) LO CO Adjacent Property - Tie Beam Cracking at Foyer The west side of the foyer roof bears on the adjacent structure's wall. The roof E trusses are anchored directly to this wall. The top of this wall evidenced minor cracking throughout. At this time, it is expected that these cracks do not significantly affect the structural capacity of the wall or truss-to-wall connection. It is recommended that these cracks be sealed and monitored for future movement or deterioration. 2 N t`Y� I�Iliil uu Oi�'' E � � t�t �tlt}'`��� tii�s` 1� �� t \ t1 't at�Si1 \A� t. +r�t 11\ttVl� {��s as u - Crack at tie beam/CMU wall interface (near roof-to-wall connection, foyer west side, adjacent building) Page 13 of 15 Packet Pg. 2840 0.3.m Exterior Door and Framing An exit door exists on the west wall of the primary structure, south of the foyer. The door frame and wood bucks evidenced deterioration. Although this deterioration does not pose an immediate threat to the surrounding structure, the deteriorated members are a potential origin for water intrusion. It is recommended that this door and frame be replaced in its entirety. v �i ri�41, Deteriorated door and frame (west side, primary structure) LO Co cv Overall, the building structure appeared to be in good condition with no major 0) deficiencies apparent. The deficiencies noted in the report are repairable withCn conventional construction techniques. These deficiencies are primarily spalling of iE reinforced concrete structural members, water intrusion, and roof covering 2 replacement; and do not pose an immediate threat to structural stability. However, it 2 is expected that the spalled tie beam has a reduced capacity to withstand extreme design loads, such as high wind events. Additionally, if water intrusion continues, it is expected that deterioration of structural members will continue to increase. This will eventually lead to structural failure. The opinions of this report are based upon the observation of readily visible members at the time of the assessment. Non-visible conditions that currently exist may affect E the conclusions and recommendations of this assessment. Page 14 of 15 Packet Pg. 2841 0.3.m If Monroe County acquires the property, it is recommended that the deficiencies noted be repaired as soon as practical. All repairs shall be in accordance with the applicable provisions of the 6th Edition of the Florida Building Code (2017). An opinion of probable construction cost has been provided (appendix A), to assist the County with the determination of the feasibility of acquiring the building. The potential restrictions of the "FEMA Substantial Damage/Improvement" (aka 50% rule) must be considered by Monroe County. The current FEMA flood zone is AE8, therefore the current Design Flood Elevation (D.F.E.) is 9.0' NGVD. An elevation certificate was not provided for this assessment, Monroe County should verify that: 1.) All contributing repairs (including architectural, mechanical, electrical and plumbing) are not considered"substantial repair" by FEMA guidelines. OR = 2.) The current finish floor elevation is at or above the D.F.E. Otherwise costs of elevating or flood proofing the structure must be considered. LO co cv G�l� ' ! r„ S James C Reynolds, PE c„ Fl. License No. 46685 Page 15 of 15 Packet Pg. 2842 -V APPENDIX A 2855 Overseas Highway Estimate Foundation and Floor Slab — Foundation to wall construction joint — Demolish and reconstruct the adjacent sidewalks $9,700.00 — Seal foundation/wall joint $1,300.00 — Wicking action of concrete — Option: Seal top of slab $8,280.00 Walls— Spalling Tie beam, cracked blocks, minor cracks at wall base — Spalling repair $112,000.00 — Glass block repair $400.00 — Corner spalling repair $1,200.00 LO co cv — Stucco repair $4,100.00 Interior beams and Columns — Repair spalling and further assessment on cmu front wall $1,240.00 — Option: replace top section with additional rebar $2,450.00 2 v) Roofing `V — New tapered insulation, modified bitumen roof $6,000.00 N — New gutters and down spouts $430.00 Roof overhang- �C — Remove and reconstruct wood framing, sheathing, and stucco $5,400.00 roof overhang- — Remove and reconstruct wood framing, sheathing, and stucco $5,400.00 Packet Pg. 2843 0.3.m Roofing foyer — Remove existing roofing and replace with new metal panel roofing$17,400.00 foyer overhang — Repair facade $12,800.00 foyer columns — New base plate and lower T of column $3,400.00 — Option: Excavate and pour new foundation cap $3,200.00 Foyer retrofit strapping of roof trusses — Add strapping down to cmu $2,200.00 — Add strapping down to steel beam $3,200.00 Adjacent property tie beam spalling at foyer `a G LO Co — Moderate spalling repair $500.00 Replace wood trim and bucks around door — 1 Door $400.00 — Option: Remove glass blocks and add lintel $600.00 2 N Subtotal $187,070.00 cv Subtotal with options $201,600.00 Total with profit and overhead $224,484.00 Total with all options, profit,and overhead $241,920.00 Packet Pg. 2844 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy Marathon, Florida 33050 Issue Date, G LO December 16, 2019 00 W 0 0 Biller Reinhart Project No. 19-364 N N W W W . B I LLE R RE IN H ART . C O M TAMPA ST. PETERSBURG LAKELAND FT. LAUDERDALE 3434 Colwell Avenue, Suite 100, Tampa, Florida 33614 - t: 813.908.7203, f: 8 13.93 1.5200 Packet Pg. 2845 biller ® N C3INFF I1\1 '3 C., RC UF INC_ December 16, 2019 Ms. Adele "tinny" Stones, Esq. Oropeza Stones Cardenas 221 Simonton St. Key West, FL 33040 Subject: Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Marathon, Florida 33050 BillerReinhart Project No. 19-364 Introduction Randall Arthurs, El and Jeremiah Mosley, El of Biller Reinhart Engineering Group, Inc. (BillerReinhart) performed a visual, non-destructive roof assessment at the commercial property located at 2855 Overseas Highway, Key West, Florida on Tuesday October 22, 2019. Mike Mathias, the building owner's representative, was present during the site visit. BillerReinhart understands that Monroe County is considering the purchase of the LO co subject property. The purpose of this project is to observe the existing condition of the structure's roof systems and generate a report to document our findings and recommendations. The visual survey by BillerReinhart was of the structure's current state and did not involve destructive activity to view inaccessible areas. Photographs were taken during the site assessment and are included within the Appendices of this report. Property Description The subject property is a single-story commercial building. For the purpose of this report, the building is assumed to be north facing. The building is split into 2 rental spaces (see Figure 1 below). The focus of the condition survey was on the roof system of Unit 2855 — the low-slope roof system and the steep-slope hip roof system at the eastern end of the building (refer to roof facets A through E shown on the Figure 2 below). Unit 2855 is currently unoccupied. The building is constructed with load bearing concrete masonry units (CMU) exterior walls, load bearing CMU interior walls running north-to-south, and non-load bearing framed interior walls. The ceiling throughout the interior consisted of an acoustic tile dropped ceiling system. W W W . B REG . C O M TAMPA ST. PETERSBURG LAKELAND FT. LAUDERDALE 3434 Colwell Avenue, Suite 100, Tampa, Florida 33614 - t: 813.908.7203, f: 813.931.520 Packet Pg. 2846 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 The eastern low slope roof area is constructed of precast concrete panel roof decking supported by load bearing CMU walls along the perimeter of the roof system and a structural steel beam running north-to-south along the center of the roof system. The precast concrete panels appear to be covered with fiber board panels and a modified bitumen roof system. The steep-slope hip roof system is constructed with conventionally framed timber members supported by CMU load bearing walls on the east and west sides. The north and south sides are supported by structural steel beams. Timber members are fastened to wood top plates that are bolted to the load bearing walls and steel beams. The roof framing is covered with a mortar set concrete textured flat tile roof system. {a 701 Lco O IT 28 5 0 UNIT 2805 €ArSt N rJ ,lz o, 'Mr.el �. Figure 1 - Unit Designations 2 Packet Pg. 2847 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 D A LO co Figure 2—Roof Facets NN 4- 0 0 Exterior Observations The exterior elevations of Unit 2855 were visually observed. Conditions observed include the following- 1. North Elevation E a. The north elevation is shown in Figures A-1 through A-3. b. Moisture and possible wind related damage to apparent canopy/roof structure abutting the northwest corner of the hip roof. Refer to Figures A-4 and A-5. C. Moisture stain in wood closure on the east side of the hip roof at the intersection with the CMU wall. Refer to Figure A-6. d. Corroded drip edge flashing fasteners along the east end of the north elevation. Refer to Figure A-7. 2. East Elevation a. The east elevation is shown in Figures A-8 and A-9. b. Corroded metal drip edge detailing. Refer to Figure A-10. C. Dislodged soffit material and missing soffit vent over the southeast building entrance. Refer to Figure A-11. 3 Packet Pg. 2848 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 d. Cracking observed in the concrete perimeter roof beams — most prominent at the south end of the east elevation. Refer to Figures A-12 and A-13. 3. South Elevation a. The south elevation is shown in Figures A-14 through A-16. b. Horizontal cracking in the top 4 inches of the exterior wall. Refer to Figure A-17 and A-18. C. Delaminating paint finish at the intersection of CMU wall and east end of the south canopy. Refer to Figure A-19. Interior Observations y The interior ceiling of Unit 2855 was visually observed. Refer to the Building Plan in Appendix C for the locations of the different rooms. Room 27 was inaccessible during the time of BillerReinhart's site visit. Conditions observed include the following- 1. Moisture stains were observed on the ceiling tiles (refer to Figures A-20 through A-29 for typical conditions). Staining was additionally noted on the roof deck overlying the affected locations (refer to Figures A-30 through A- 34). Referenced damages were observed at the following locations: a. East end of Corridor 1. Moisture stains on the inside face of roof LO beam above location. co b. Southeast corner of Room 1. Moisture stains on the inside face of the east roof beam adjacent to and above location. C. Northeast corner of Restroom 2. d. Southeast corner of Room 4. Insulation in ceiling cavity prevented thorough visual observation of roof deck. e. Adjacent to the center of the north wall of Room 6. Moisture stains between abutting precast concrete deck panels and at deck opening for mechanical equipment above location. f. Center of the east exterior wall of Room 7. Moisture stains between precast concrete deck panels and on the inside face of the east roof beam adjacent to and above location. g. Northwest section of Room 19. Moisture stains at abutting precast concrete deck panels above location. h. Southeast corner of Room 20. Moisture stains between abutting precast concrete deck panels above location. i. Within southwest quadrant of Room 25. Moisture stains between abutting precast concrete deck panels above location. j. Approximately above south exit door in the Lobby. k. Intersection of Corridor 3 and Corridor 4. I. Northwest corner of Room 28. Ceiling stains along the sides of the mechanical duct work above location. 4 Packet Pg. 2849 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 M. Along the north wall of Room 28. Moisture stains observed along structural steel beam above location. n. Northeast section of Room 11. Moisture stains between abutting precast concrete deck panels above location. o. Along west end of north wall of Room 13. Moisture stains between abutting precast concrete deck panels above location. P. Southwest section of Room 13. Moisture stains between abutting precast concrete deck panels above location. q. Adjacent to the center of the west exterior wall of Room 14. r. Southwest corner of Room 17, around electrical conduits. S. Northwest section of Central Corridor. t. Northeast section of Central Corridor. Moisture stains between abutting precast concrete deck panels and at deck opening for mechanical equipment above location. Also observed slight moisture stains around conduits penetrating the roof deck. U. Along north wall of Corridor 5. Moisture stains between abutting = precast concrete deck panels and at deck opening for mechanical equipment above location. 2. Moisture stain in northeast wall corner of Room 7. Refer to Figure A-35. 3. Covered roof deck penetration within Room 25 observed. Covering material noted to be moisture stained. Refer to Figure A-36. -- 4. Corrosion was observed at the panel framing located along the west wall LO of Corridor 4 between door entrances to Room 11 and Room 12. co 0 0 Roof Surface Observations N The roof surfaces of Unit 2855 were visually observed. Refer to the roof layout plan illustrated in Figure 2 (above) for reference. Conditions observed include the following- 1. Overview of the low slope roof surface is shown in Figures B-1 through B- 4. 2. Expansion joint, running north-to-south installed at the center of the low slope roof area. Refer to Figure B-5. 3. The following conditions were observed on the low slope roof over Unit 2855: a. Moderate to severe weathering of the roof system was observed. Multiple areas of missing granules with exposed fiberglass reinforcement in roof membrane were exhibited. Refer to Figures B- 6 and B-7. b. Weathered and deteriorated detailing around roof penetration at southeast corner of the roof. Refer to Figure B-8. This area noted to be above moisture stain at southeast corner of Room 1. 5 Packet Pg. 2850 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 C. Multiple locations of deteriorated and failed lead boot flashing above plumbing stacks. Refer to Figure B-9. d. Corroded metal drip edge flashing along east perimeter of roof. Most prominent at the southeast corner of the canopy over the southeast entrance at the east elevation. Refer to Figure B-10. e. Ponding water above the canopy over the southeast entrance at the east elevation. Refer to Figure B-11. f. Ponding water around root top mechanical units. Refer to Figure B- 12. 4. Overview of the hip roof over the west end of Unit 2855 is shown in Figures B-13 to B-17. 5. The following conditions were observed on the hip roof over the west end of Unit 2855: a. Multiple mortar set roof tiles observed to be slipped or loose. Refer to Figure B-18. b. Multiple roof tile repairs were noted at the southeast corner of roof facet D and closer to the eave of roof facet C. Refer to Figure B-19. C. An approximate 80 square feet area of damaged roof tiles at the northwest corner of the roof system, spanning over roof facets B and C. Refer to the Figure B-20 and B-21. d. Multiple cracked and broken roof tiles observed in the field of the -- roof facets. Refer to Figures B-22 and B-23. LO e. The majority of the ridge tiles were noted to be loose or missing. co Refer to Figure B-24. f. Deteriorated and failed lead boot flashing above plumbing stacks. Refer to Figure B-25. N Conclusion/Recommendations 1. The following conditions observed on the low-slope roof surface and underlying interior ceiling surfaces indicate the roof system has reached the end of its effective service life: a. Moderate to heavy weathering of roof membrane. b. Weather and deteriorated detailing around roof penetration at southeast corner of the roof. C. Deteriorated lead boot flashing accessories over plumbing stacks. d. Corroded metal drip edge flashing and fasteners. e. Moisture stains on interior ceiling surfaces with moisture staining on roof deck surfaces above believed to be due to breaches in the roof membrane. f. Moisture stains along the east exterior roof beam due to the breaches in the roof membrane. Deteriorated metal drip edge 6 Packet Pg. 2851 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 flashing and deteriorated lead boot flashing at adjacent plumbing stacks are likely contributing factors to moisture intrusion. g. Moisture stains observed on the structural steel beam within the ceiling cavity, believed to be originating from breaches in the roof membrane. h. Moisture stains in the ceiling of Room 17, believed to be due to failed flashing detail around roof penetrations for electrical conduits. i. Ponding water on roof surface, possibly indicating decay of underlying roof insulation/cover board. 2. The following conditions observed on the steep slope hip tile roof surface and underlying interior ceiling surfaces indicate the roof system has reached the end of its effective service life: a. Slipped and loose roof tiles. b. Cracked and/or broken roof tiles. C. Failed previous roof tile repairs. d. Apparent wind damaged roof tiles. e. Loose or missing roof ridge tiles. f. Deteriorated lead boot flashing over plumbing stack. g. Ceiling moisture stain above the south entrance door, believed to be due to one-time or short-term moisture intrusion at the eave. 3. Spalling and cracking of concrete beams due to moisture and chloride -- migration to the steel reinforcement resulting in corrosion of the steel LO reinforcement. co 4. Moisture staining on interior wall surfaces due to moisture intrusion at glass block architectural detailing. 5. Dislodged canopy feature and soffit materials due to moisture intrusion related deterioration and possible windstorm activity. Based on the observed conditions BillerReinhart recommends the following- 1. Removal of the low-slope roof system over Unit 2855 and replacement E with a modified bitumen roof system. Replacement should include removal and replacement of damaged cover board and/or insulation material underlying the roof membrane. The roof system replacement should address the existing ponding water conditions, proper roof penetration detailing, proper detailing at roof top A/C equipment supports, and proper perimeter detailing. 2. Removal and replacement of the steep-slope hip tile roof system over Unit 2855. Replacement should include removal and replacement of damaged plywood roof decking. The roof system replacement should address repair of the wind damage at the northwest corner of the steep-slope roof and proper roof penetration detailing. 3. Reroofing project should include considerations to ensure proper sloping for roof drainage. 7 Packet Pg. 2852 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 4. Removal and replacement of damaged canopy materials. 5. Removal and replacement of damaged fascia, soffit framing, and soffit finish materials. 6. Removal and replacement of damaged interior wall and ceiling finishes. 7. Repointing and sealing of architectural glass block features. 8. Exterior wall concrete repair a. Engage the services of a structural engineering firm experienced in the restoration of structural concrete. BillerReinhart can perform the recommended services if desired by the client. b. Condition survey of concrete surfaces to identify the scope of a concrete restoration project. C. Preparation of drawings and specifications for contractor bidding, permitting, and construction. Neither the survey nor this report is intended to cover hidden defects, mechanical, electrical, or architectural features, nor environmental concerns. Unauthorized use of this report, without the permission of BillerReinhart, shall not result in any liability or legal exposure to Biller Reinhart Engineering Group, Inc. Biller Reinhart Engineering Group, Inc. reserves the right to update the information contained in this report if deemed necessary due to modified site conditions or the -- availability of new/additional information. LO co Thank you for offering us the opportunity to provide our services for this project. Please contact our office if you have any questions regarding this report. Sincerely, Biller Reinhart Engineering Group, Inc. N State of Florida Certificate of Authorization No. 9149 Digitally signed by Michael H ��\GPoGENStCj'-� Biller This item has been electronically signed DN:cn=Michael H Biller using a Digital Signature. * No.49972 "t' c=US o=Biller Reinhart * �= Engineering Group p ou=A01410C0000016BFC71 Printed copies of this document are not STATE OF <C/�; cE7Do00055Eo considered signed and sealed and the /�S''•.F<OR\OP,.•'G��� Date:2019-12-16 g s�oNa�ti`',\' signature must be verified on any rri..„ �` 11:49-05:00 electronic copies. Michael H. Biller, P.E., RRC President/Principal Structural Engineer Florida P.E. No. 49972 8 Packet Pg. 2853 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 Appendix A Exterior and Interior Photographs LO co 0 0 N N Packet Pg. 2854 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 c m Figure A-1 1, S4t LO �q V 0 N C" t �- �� r Uit t7k�eb�fit, e Figure A-2 2 Packet Pg. 2855 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerRe►nhart Pro ect No 19 364 I 4s t,, � t (�N t�aa w a —r Figure A-3 LO co t, yy 0 (`IItirl��A 11 IN � t i0 t{tt ;1 >��t �di• f. E vl � »y UMtii i If jtt Figure A-4 3 Packet Pg. 2856 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 Yt'Y�.• 1 T r1 � ry r { t8 s F Figure A-5 LO 00 0 0 1 4 � N +tit t • i V� - � yip 111, ,i� j E I � � 01 t 1. �,rr.� Slip,, _ A _S ti rl 5,}�x to hAS1)lit, t.�,s., <s(l'TR Figure A-6 4 Packet Pg. 2857 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 Ap s ty r sr } t 5`rY< �(S r Figure A-7 LO co c� 0 0 � c U - ¢v Figure A-8 5 Packet Pg. 2858 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 5. 4� Figure A-9 , LOl {� LO , 0 �tsh 0 1" � ' s 4 � CV U Figure A-10 6 Packet Pg. 2859 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 S > CIO 3 P. ,..:.... f%.�, n Figure A-11 LID CIO 0 4 0 to CD r Figure A-12 7 Packet Pg. 2860 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerRe►nhart Project No. 19-364 �I tl i� t 1 f ffjj - i `4' l �t - rl�,ti)rt i itltts st�tt � t t + t t { t Figure A-13 to 00 i� »� 0 CV � C39 N k Ettl � E Figure A-14 8 Packet Pg. 2861 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 A �t i{j{i �tpt j� 'Y�tiKil r f I � 4 i ',Ur,i „ -,,,•. el,� tom, ���lu�,k � '63 � It Y i i ii t i ${f[: ��� �YY U9 .E+ Figure A-15 CID G 00 0 k E r � f � , nx Figure A-16 9 Packet Pg. 2862 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 d i ti4S 5 YI k 1 1 tl ti 1 �Ikk miv, q �� t C (k s s h na L Figure A-17 LO co s� _rr C9 z r k k (y Ali i k � t ` .E 1,M U � arty 1k Figure A-18 10 Packet Pg. 2863 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 II , I � I` £ I J ! I IW IrI, I 1 1 + Iqy t£ f` i Y ll j!4 T i Figure A-19 £ s; LO Id.I r a N I���S 4y{}I �I Iitt „ilhl Ii ttit��i�+1 Ii fj1ll Il l���\il tl ass - -- II E - 13� j� �4`! 34 r-0� itl SF Ii I { i r Figure A-20 11 Packet Pg. 2864 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 t�ptt s� N , Figure A-21 �t �. l,_ {k�S{i ftl�rttr: is�r,5tk \ �t cV f t U n �ra a Figure A-22 12 Packet Pg. 2865 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerRe►nhart Proect No 19 364 z _s ) t y • r £ , r� £ Figure A-23 Lco O s � = k- Figure A-24 13 Packet Pg. 2866 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 - s -- �11 �ti�,�, � �� � � s � `j, £ t tS4 � I it, r. 1 tft}r1y,4?Vf��S�. ) { }•+ . s S £ t T- )t (( — s tha�£ts���� E� ���teat�l�£t}It}�£s?�ti�}`-:. itt{tlt�tt Tct u,tttttt'riitlt{saT�l��t,1�1iZ�tt�\i�$Jyli�, ��S}t���3}���)�}t�tt tt(�rs1,�Sstt NO t iS-.f)t h s ssti!}h7t{ t�V{{{ t t Zt t>s Sii ta7.t {t}VS� ryO1��1f _ ?`��� N�)t)y>£t.,,fa.{f1 ti £A t���i }IS t��itlsst t(il ttSittl Sjt� {sJt4t�i�_tl� t}��t£is££�{St{ ttkr` :F+ Figure A-25 co 0 0 C44 �s4�c } r aliit[�tta t \ t ss � N ��tl Sl t EF l H srtt - t Figure A-26 14 Packet Pg. 2867 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 -- t{ - � u k r � � Y r � 1 � `1 � _ l�ssssssssssssssss Figure A1�-27 L y LO h{S}silo i '0 0 4 1 4 s A ti .— U Figure A-28 15 Packet Pg. 2868 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerRe►nhart Project No. 19-364 - '= Figure A-29 LO d , VO t£Sri LO co 0 rt iS 1 � Figure A-30 16 Packet Pg. 2869 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 . t f c� Figure A-31 !O 00 0 i— i E 'I NANO sir Figure A-32 17 Packet Pg. 2870 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 - � �, Jait 1 S Figure A-�33 ((( ip 177{t ��{�,i ,'`i F F 1 5���'S9}4t \��5; °",;.- ...✓ !fy `t2t� tilt S,bt tF , 0 0 C44 �11t}tt{7t1i{i +Y Figure A-34 18 Packet Pg. 2871 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 r t8 - F® U7 Figure A-35 WR eoi kf) ! co " �yh 0 o 'C- d N CDN U 3Y Figure A-36 19 Packet Pg. 2872 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 Appendix B Roof Photographs LO co 0 0 N N Packet Pg. 2873 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 s r N 1 � Figure B-1 Hr LO LO co I' l 0 C0 CV r r N r x, U F �CS�! Figure B-2 2 Packet Pg. 2874 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 y � Yl �jli i��, _ - Figure B-3 �!3�,, , LO LO cv ` 0 m. 1 N t � F i Figure B-4 3 Packet Pg. 2875 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 1 am- Now IM k Jr � F1f + 4 t e, i Figure B-5 LO + co re i l�rf+}++isr (�11x1�is fg r l i N 0 � £,}x�{� x�qS �+2 i4 J� �i�s � l S,t : � 4" ➢ _m a J( p ++tauFxr'�pe u��e��sS,i_ Ieky�t"ii �r N { + + s f G9 — ' xtr�C N E 1`•`+ ii } 1�' 3 � +NiV � r{ '4,.. wi isr 1,3,u lH�i������ txt i4.,� ih; � 'tl i. �4 '�`� 1 \��`,+� ��• ��g{�� + �n"11�� t,. � ���h � �, N � 2 +`,' Y ��':��jy� 1} � �aistlt `f +� �I�xs >ti• 4 N 3� t SiA t i � � � � � �f& i sAF l�Ye �i� 1{1+�9.t4 , Figure B-6 4 Packet Pg. 2876 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 s 4 � 3 q T K)"11 Tw Q . Figure B-7 LO 0 III tt tv i � r i �! n�'�'� � i'n• r ,$ eM�s� �• � '�P�^�'4���,1wr11`��3�t�t„���e ,x�a��.���e Figure B-8 5 Packet Pg. 2877 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerRe►nhart Project No. 19 364 �1?�}0 '�� �r.�s4 �1 1 r, ,� `fi,� S?�i,�j(}f �t'i}?��s r`t it �('`••)}ry�1���,,vsr r �t��s �« Ist.hi}t!}{}i1��33E��sz�l�tSl1,,� )tr �t(s)1,14t ,—r {I C t4�r 1vS j } I§r ,gltfll ' f t fi z writ + } 1`City tf�r�r YS 12'��� lfis E}i{( `� r �¢s n ` tir'•.,t, fiYsr� rFE s i 1 r�}4 }e LRI}t�ti r t=�, � r vtil i1v Ii lr tsS F IS! la a` ttk\�t rY���s ht 4 ,� � }5, Ni � � �4�r? �{` fi1 r ; (£� i i �, r t .[.� , ?. @NrY ��h,,}rs !` , ,E m t r r�„ I '` U9 :N Figure B-9 P � en t t v t 0 i1 f tiYr r I�i \:r}J n I ,Et tpt 4 0 N * 5 tar G 7 E �n t +/ 4 7 �; r 'Se.i Figure B-10 6 Packet Pg. 2878 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 — ! rF i�j��� � t, rill ist{}� Si41i}�1��4}st}}szl�Sat sir 1 — ! tI } is MU rn) 1? t i �sltlts Ars R�. A)ls s N s1Silsattryt�l}stS{riiil(��€11 lists{ � )v ��t�, ._ ��li� ii � -.. Figure B-11 F��t s\s${li{S(t 2s}jutti{tx�rpt)sl�afySir �u�sx�1\et4Surti`( ,n) rr riul`� i(t1 s)sssn i#I{?i1,1 ttrl)1'iJ{ )1- ; '..� rii� AMU, � LO u r rr Y W s b it t� t,r t s»��vtys fNt TMi -- N s ° r i N l_ \£ti �L 4 tit iAZltJsr t i4i S t t S�� t Figure B-12 7 Packet Pg. 2879 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerRe►nhart Project No 19 364 � S !ts.3.�s;tlSl�t(U��, �G� �� ,x i < <r,���. „�\ i7\,,- f,"��„ r wi sr Figure B-13 LO 1 00 � 1f; 4 kti t ��tt nkr s y s 0 0 � � q F � 1A i' it a r7tJ+hrR is 9 � Y r Figure B-14 8 Packet Pg. 2880 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 4 s �� i fkEfi � r$� r� t4} Figure B-15 ,r LO i LO t d 0 CV 1- �b h � r 4J Ur Figure B-16 9 Packet Pg. 2881 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No 19 364 ti Figure B-17 LO co 0 T 0 N nt YI ' E s 1�}} s � �k�k� � � u>el �G. ��'ib ♦'��i�tYt��i{,�� �� k1�� i xi 4t 111 s rt �} ��issYtik'3 g• i � ��1 K fr1 , `t;Y t y 3 " ��, H I(ry ���r'•§�i��k��`,i°' ,�tti��� �� �� � �4Rs�?°���� �t"'is� 9`�ka�I��s ��k ris�s=f$. Figure B-18 10 Packet Pg. 2882 Roof Assessment Report Commercial Property Located At. 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Pro"ect No. 19-364 b< ) 9 t �r 4 I IIII — i :F+ Figure B-19 TIN � o4 to CV s CD j I,k II U 'f k j Figure B-20 11 Packet Pg. 2883 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 r ,� s1\ \t VsS tls� �}#i}t{E tM,( AwUt s 1 r, Figure B-21 LO LO S1 tvll t{i 1 k c sa tYt tv t t t s t t v tt (y "4 U" - 4f+t k v gt��' w v!+ t S4> �4� n ��>z✓�y�vP ' ��`°a ��. ' h� h3tt£ �~ti� 1tt �9 � �£e'���(�`-t 1��z r� ��� tsar � }# t rr t i t �a a r t r is {it tr3 t+ �iP"�` ''Yr,t (� vp r�Ot r tr k>�i 3 '{U��t•..- V��ily� ntUt Sv' �ttV`il'� s�E lati '� �'rt���t }, - f.t ��{r�� v �; � E e rr u t r� }li }t-' j�t }t �t l� F k�}j�+� ?=•S 3 S a �t '�,'� ',i'�t��}' �e r t�t i��}� ,��h(� ���� � ? Y - ttr!` �'2 �1 i `y�„ ��'� IS'v�-• � ���� j y_t t t Vl wgr g ; �r Figure B-22 12 Packet Pg. 2884 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 }tt I `r ik q s I i+ a ➢ p� � t'iyi��I try 1 (� Figure B-23 1�007 LO ,lt ry0 t t...r it N E is ttl �t r Figure B-24 13 Packet Pg. 2885 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 4 j Figure B-25 M G LO co cv 0 0 cv cv U 14 Packet Pg. 2886 Roof Assessment Report Commercial Property Located At: 2855 Overseas Hwy. Key West, Florida 33050 BillerReinhart Project No. 19-364 Appendix C Building Plan Layout LO co 0 0 N N Packet Pg. 2887 0.3.n' 0 RR1HO � ` w � 18 17 O . RR2ry 19 -- ___= 16 -- ----------------- CORRIDOR 1 20 CORRIDOR 15 5 O - ----- -------- 21 23 14 ---------------- CENTER CORRIDOR y O 24 25 26 v, 12 = 0 U9 O29 'I RR4 .al ---------------------- LO 27 LOBBY „_ 2800 R R 3 ---------------------------- % 1 0 CORRIDOR 3 IX cv O O O 10 RECEPTION AREA U LEGEND: RR = RESTROOM ® = ROOM NUMBER BUILDING PLAN ___(6 S-1 NOT TO SCALE TO THE BEST OF THE ENGINEER'S KNOWLEDGE,THE PLANS PROJECT DES.BY SHT.NO. ANDSPECIFICATIONS COMPLY WITH THE APPLICABLE n9 I&HJM BUILDING CODES M.B. biller DWN.BY S—1 ENGINEERING GROUP' INC . Office Building R.M. 3434 colwell avenue suite 100,tampa,florida 33614 2855 Overseas Hwy. telephone:813.908.7203 tax:813.931.5200 Marathon, Florida 33050 JOB No. email:info@billerreinhart.com 19-364 State of Florida Certificate of Authorization No.9149 MICHAEL H.BILLER DATE FL.P.E.NO.49972 10-31-19 Packet Pg. 2888 0.3.0 HUFSEY NICOLAIDES GARCIA SUAREZ ASSOCIATES, INC. CONSULTING ENGINEERS 4800 S.W. 74th Court Phone (305)270-9935 RENGINWEER Miami, Florida 33155-4448 Fax (305)665-5891 November 5, 2019 HNGS Consulting Engineers 4800 SW 74th Court Miami, FL 33155 Subject: Community Health of South Florida, Inc. 2855 Overseas Highway _ Marathon, FL 33050 HNGS PROJECT#: 19-0065 SOMBRERO PROFESSIONAL CENTER We visited the subject facility, on November 5, 2019,to prepare an assessment report as requested by _ Baptist Health South Florida. Facilities Operations supervisor Mike Mathias provided access and escorted us throughout the building. c� Our observations are as follows: Building Exterior LO co cv The exterior needs some structural and cosmetic repairs at several locations. .E The roof and rooftop equipment condition were not observed. A single phase 75-kVA pole mounted transformer, located at the rear of the building, provides power via LO a twin service mast. An overhead telecom line also serves the building and enters the building adjacent the rooftop electrical service drop. `V The building has "wall pack" type lighting at the rear(south side) and east side with 'jelly jar"type wall mounted luminaire at the rear exit door and ceiling surface mounted utilitarian luminaire at the east exit door. Exterior lighting is also dated and should be replaced with energy efficient type with modern controls. There are two wall mounted surveillance cameras on the southeast corner of the building. The front of the building is also provided with a wall pack luminaire and ceiling mounted utilitarian luminaires under the main entry portico. Page 1 of 6 Packet Pg. 2889 0.3.0 Building Interior The building has been vacated and all furnishings and appliances have been removed for the most part. Some cabinetry and wall mounted x-ray viewers remain. Interior illumination consists of surface mounted 2X4s, recessed 2X2s, downlights, and illuminated exit lights.The lighting equipment is in fair shape but not energy efficient.The luminaires are equipped with mostly outdated fluorescent and incandescent type lamps. Lighting controls are rudimentary. Wiring devices are varied with stainless steel or white plastic cover plates. The building is equipped with some fire alarm devices such as smoke detectors, heat detectors, and pull stations. System operating condition is questionable. The building is also equipped with a surveillance and access system.This system functionality is also v, suspect. The electrical room and distribution equipment are in fair shape and adequate for this type of facility. Legible and accurate circuit directories are not presented.The room is in the southwest corner of the building. The service is rated 400A-120/240V-10-3W and includes two main load centers (panels)tagged "A" & "B", a sub-feed load center tagged "C" (fed from load center"B"), and a large disconnect serving four air conditioning units through individual sub-breakers, and miscellaneous loads. The telecommunications systems equipment is in a centrally located room near the front of the building. LO Co The space allocated for present use appeared appropriate. W 76 Air conditioning to this space is provided with four roof top air conditioning units mounted directly above tenant space roof. Air conditioning units are in working order but at end of service life. Future renovations should consider replacement of these units and support systems in accordance with current building code requirements. Ductwork and air distribution need repairs, some devices and ductwork LO sections were damaged at time of inspection. Work to be introduced by future tenant should conside replacement of ductwork sections and air distribution devices. cv Existing building is provided with a single domestic water meter with connection and meter valve box and city sewer connections located on rear parking alley. Existing 4" main sewer line seems appropriate m for building sewer demand requirements. All visible sanitary sewer piping was PVC type, and main domestic water lines in space ceiling area were copper type. Hot water is provided by tankless water heater located in janitor room. Future tenant will have to consider use of additional water heating equipment based on future layout to comply with current FBC requirements for commercial tenants. There are four restrooms and multiple sinks for previous tenant patient rooms, lounge, and examination rooms. Overall, all existing plumbing fixtures are not per current FBC requirements. At time of inspection many of the faucets or sinks were leaking or show signs of previous leaks with damaged cabinets, damaged pipes,faucets, etc. There is damage on lounge area from a previous fire. Future tenant renovations will require replacement of all existing fixtures for compliance with current codes, architectural modifications for existing layout. Page 2 of 6 Packet Pg. 2890 0.3.0 There is a service sink with external plumbing piping not installed per current FBC requirements. Roof drainage is by internal roof drains and perimeter overflow. Existing roof conditions will need to be assessed as there are some signs from previous leaks at multiple ceiling areas. Could not establish if this is a current condition or corrected with previous repairs. c� LO CO 76 LO CD CD U Page 3 of 6 Packet Pg. 2891 0.3.0 t S'.:. 3 "•�-�.�,.�..—,a--^.�.�—,.'�^-ems ,'. a , 5 " C�� t i L ✓itt ttr �t vii ,}t� � S �"r 7 tllti�� {Sj 5���� btr v�V{iAsiSi`�\����'i����k��• .Fr Sco WS .., '1 2 t � s > tt LO CD CD S} ( , � � .F+ WUO ,ttt } r( It s S i�R it t IA Sp t y r t1 It tttit r �t t ! {{ I SIMON= Page 4 of 6 Packet Pg. 2892 0.3.0 f e` 1 / M1 11f 1 Ins � oil Ch f� �4in t r 1r� IV } "4 �f st t 1 }hi '{tt7�3 I IV k N 10 LO c14 f1�1;11 f } ` r f } ` v _ � f Page 5 of 6 Packet Pg. 2893 0.3.0 ��r•"���4}���"'iCv�fl ``� � _; S4 �€ �f n{�l�kil����I'��({�_ f � 5 No. t t {MA k man 1ttn V� F® �- t ML r��t� u9 „t 10 LO r r ii,,t?kt• r N U k j. 1 r Page 6 of 6 Packet Pg. 2894