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Item U02
I�`� County of Monroe �y,4 ' '�, "tr, BOARD OF COUNTY COMMISSIONERS County �a� 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 May 19, 2021 Agenda Item Number: U.2 Agenda Item Summary #8 145 REVISED WORDING: Corrected price amount,replacing incorrect punctuation. BULK ITEM: Yes DEPARTMENT: Assistant County Administrator Kevin Wilson TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292-4441 No AGENDA ITEM WORDING: Approval of a contract to purchase a parcel (RE400122080- 000304) on Rockland Key from SJK Investment LLC at a price of $ ,14Q. nn 1,198,252 and authorization for the County Administrator to execute the contract and all documents required for the closing. Funding will be provided through the one cent infrastructure sales surtax. ITEM BACKGROUND: The parcel is just north of and contiguous with the County owned parcel on Rockland Key. The County plans to construct the permanent replacement Fleet Management maintenance facility and the Road and Facilities Departments offices that will be relocated from the Key West International airport. This parcel will effectively replace the area of the original parcel used by the Big Coppitt wastewater treatment plant. Two (2) appraisals were received both of which support the purchase price and are attached as backup. PREVIOUS RELEVANT BOCC ACTION: 17 MAR 2021 BOCC approved a supplement to the 6 SEP 2021 lease to expand the area of the Big Coppitt WWTP to include all of the original Parcel "A" 06 SEP 2005 BOCC entered lease with FKAA for those sites that form part of the wastewater systems 16 JUN 2005 BOCC acquired the parcel south of this parcel on Rockland Key CONTRACT/AGREEMENT CHANGES: Yes STAFF RECOMMENDATION: Approval DOCUMENTATION: SJK-County- Seller Executed Counterpart w Exhibits with rbs legal stamp 2021-02-21 Kemp Appraisal - AOKW 2021-03-30 Kemp appraisal - Magenheimer FINANCIAL IMPACT: Effective Date: May 19, 2021 Expiration Date: upon closing the transaction Total Dollar Value of Contract: $1,198,252 Total Cost to County: $1,198,252 Current Year Portion: TBD based on the closing date Budgeted: Yes Source of Funds: Infrastructure sales surtax CPI: N/A Indirect Costs: staff time/legal fees /title insurance (approx. $6k) /closing costs /Environmental Assessments (less than $10k) Estimated Ongoing Costs Not Included in above dollar amounts: routine maintenance (minimal at this time) Revenue Producing: No If yes, amount: Grant: N/A County Match: N/A Insurance Required: N/A Additional Details: N/A Funding is from ?? REVIEWED BY: Kevin Wilson Completed 04/29/2021 4:57 PM Bob Shillinger Completed 05/03/2021 9:22 AM Purchasing Completed 05/03/2021 9:23 AM Budget and Finance Completed 05/03/2021 9:43 AM Maria Slavik Completed 05/03/2021 10:27 AM Liz Yongue Completed 05/04/2021 11:31 AM Board of County Commissioners Pending 05/19/2021 9:00 AM } U.2 `, County of Monroe �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 May 19, 2021 Agenda Item Number: U.2 Agenda Item Summary #8 145 BULK ITEM: Yes DEPARTMENT: Assistant County Administrator Kevin Wilson TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292-4441 No AGENDA ITEM WORDING: Approval of a contract to purchase a parcel (RE400122080- 000304) on Rockland Key from SJK Investment LLC at a price of$1,198.122 and authorization for the County Administrator to execute the contract and all documents required for the closing. Funding will be provided through the one cent infrastructure sales surtax. ITEM BACKGROUND: The parcel is just north of and contiguous with the County owned parcel on Rockland Key. The County plans to construct the permanent replacement Fleet Management maintenance facility and the Road and Facilities Departments offices that will be relocated from the Key West International airport. This parcel will effectively replace the area of the original parcel used by the Big Coppitt wastewater treatment plant. Two (2) appraisals were received both of which support the purchase price and are attached as backup. PREVIOUS RELEVANT BOCC ACTION: 17 MAR 2021 BOCC approved a supplement to the 6 SEP 2021 lease to expand the area of the Big Coppitt WWTP to include all of the original Parcel "A" 06 SEP 2005 BOCC entered lease with FKAA for those sites that form part of the wastewater systems 16 JUN 2005 BOCC acquired the parcel south of this parcel on Rockland Key CONTRACT/AGREEMENT CHANGES: Yes STAFF RECOMMENDATION: Approval DOCUMENTATION: SJK-County- Seller Executed Counterpart w Exhibits with rbs legal stamp 2021-02-21 Kemp Appraisal - AOKW 2021-03-30 Kemp appraisal - Magenheimer Packet Pg. 2877 U.2 FINANCIAL IMPACT: Effective Date: May 19, 2021 Expiration Date: upon closing the transaction Total Dollar Value of Contract: $1,198,252 Total Cost to County: $1,198,252 Current Year Portion: TBD based on the closing date Budgeted: Yes Source of Funds: Infrastructure sales surtax CPI: N/A Indirect Costs: staff time/legal fees /title insurance (approx. $6k)/closing costs /Environmental Assessments (less than $10k) Estimated Ongoing Costs Not Included in above dollar amounts: routine maintenance (minimal at this time) Revenue Producing: No If yes, amount: Grant: N/A County Match: N/A Insurance Required: N/A Additional Details: N/A Funding is from ?? REVIEWED BY: Kevin Wilson Completed 04/29/2021 4:57 PM Bob Shillinger Completed 05/03/2021 9:22 AM Purchasing Completed 05/03/2021 9:23 AM Budget and Finance Completed 05/03/2021 9:43 AM Maria Slavik Completed 05/03/2021 10:27 AM Liz Yongue Completed 05/04/2021 11:31 AM Board of County Commissioners Pending 05/19/2021 9:00 AM Packet Pg. 2878 u.2.a AGREEMENT FOR THE PURCHASE OF VACANT LANDS THIS AGREEMENT is made and entered into this day of ,2021,by and between SJK INVESTMENTS,LLC.,a Florida Limited Liability Company o (hereinafter "Seller(s)"), for themselves, their heirs, executors, administrators, successors and assigns, and the MONROE COUNTY BOARD OF COUNTY COMMISIONERS (hereinafter "County") acting by and through the County Administrator Roman Gastesi. WITNESSETH: 1. In consideration of Ten Dollars ($10.00) in hand, paid by the County, the receipt of which is hereby acknowledged,the Seller(s)agree to sell to the County certain lands upon the terms and conditions hereinafter y set forth,and for the price of $1,198,252.00 for all of the lands and other interests,which lands shall include all tenements,hereditaments,together with all water and other rights,easements,appurtenances,and any and all of the Seller's rights in or arising by reason of ownership thereunto belonging,owned by them,situate and CL lying in the County of Monroe, State of Florida,more particularly described as follows;to-wit: 0. See Legal Description attached as Exhibit"All. y RE#00122080-000304 AK# 9085076 Comprised of approximately 54,943 square feet of vacant land (1.261 acres) ("Property" or"real property"). N 2. The Seller(s) agree that they have full right, power, and authority to convey,and that they will convey to the County the fee simple title to the Property together with legal and practical access thereto clear, free, and unencumbered, except subject to all easements and other matters of record and the following obligations, easements or reservations: Seller shall secure an access easement in favor of County from Rockland Investment Corp. to provide practical and legal ingress and egress to the subject parcel. Said easement shall be substantially identical to the easement given to COUNTY by Rockland Investment Corp. as recorded at Official Records Book 2146 Page 20 of the Official Records of Monroe County, Florida. Exhibit «Bt$. x The COUNTY,at the COUNTY'S expense,within the time allowed to deliver evidence of title and to examine same, may have the real property surveyed and certified by a registered Florida surveyor. If the survey 2 discloses encroachments on the real property or that improvements located thereon encroach on setback lines, easements, lands of others, or violate any restrictions, contract covenants, or applicable governmental regulations, the same shall constitute a title defect provided COUNTY provides the required written notice within the timeframe provided below. Seller(s) shall convey a marketable title subject only to the encumbrances, exceptions, or qualification set forth, disclosed in writing and accepted or waived by COUNTY before accepting conditions or exception to insured title. Marketable title shall be determined according to applicable title standards adopted by authority 0) of the Florida Bar and in accordance with law. The COUNTY shall have sixty(60)days from the effective date of this Agreement in which to examine title. If title is found defective,the COUNTY shall, within this specified time period, notify Seller(s) in writing specifying defect(s). If COUNTY fails to provide written notice within sixty (60) days, COUNTY shall be deemed to have accepted the title commitment. If the defect(s) render title unmarketable the Seller(s) will have one hundred twenty (120) days from receipt of Packet Pg.2879 u.2.a notice within which to remove the defect(s). The Seller(s)will use good faith efforts to correct defect(s) in title within the time provided therefore,,failing which the COUNTY shall have the option of either accepting the title as it then is or rescinding the Agreement herein. COUNTY acknowledges that Seller shall not be required to bring suit to cure any such defects. COUNTY shall designate closing and title agent for this transaction. 0 3. The Seller(s) further agree not to do, or suffer others to do, any act by which the value or title to said lands may be diminished or encumbered while this Agreement is pending. It is further agreed that any loss or damage occurring prior to the vesting of satisfactory title in the COUNTY by reasons of the unauthorized placement or removal of products therefrom, shall be borne by the Seller(s); and that, in the event any such loss or damage occurs,the COUNTY may,without liability,refuse to accept conveyance of said lands. 4. The Seller(s)further agree that during the period covered by this instrument officers and accredited agents of the COUNTY shall have at all reasonable times the unrestricted right and privilege to enter upon said lands y for all proper and lawful purposes provided that COUNTY provides Seller with reasonable notice of when COUNTY intends to enter the property, including examination and testing of said lands and the resources upon them. Additionally, COUNTY, its agents, contractors and assigns shall enter the Property and conduct inspections at their own risk and COUNTY will indemnify and hold Seller harmless from losses, damages, costs,claims and expenses of any nature, including reasonable attorneys' fees at all levels,and from liability to any person, arising from the conduct of any and all inspections or any work authorized by COUNTY. v, COUNTY shall have 120 days to conduct any inspections, examination and testing to determine in the sole discretion of COUNTY the acceptability of the condition of the property. COUNTY shall notify Seller in writing of its intention to reject the property prior to the expiration of the 1201h day following execution of this Agreement.Failure to provide such written notice shall constitute a waiver of any objection to the property condition,accepting the property in its"AS IS, WHERE IS"condition and waiving all claims against Seller for any defects in the Property. In the event this transaction does not close, (1) COUNTY will repair all damages to the Property resulting from inspections and return the Property to the condition it was in prior to the conduct of the inspections and(2)COUNTY will release to Seller all reports and other work generated as a result of such inspections. 5. The Seller(s)will execute and deliver upon demand of the proper officials and agents of the COUNTY a good and sufficient deed of warranty conveying to the COUNTY a marketable title to the said lands of such character as to be reasonably satisfactory to the legal counsel of the COUNTY. Additionally, Seller will provide an Affidavit acceptable to COUNTY as required by Florida Statutes Section 286.23 not later than ten ca days following execution of this Agreement. 6. In consideration whereof the COUNTY agrees that it will purchase all of said lands at the price of $1,198,252.00. The COUNTY further agrees that,after the preparation,execution,and delivery of the deed, and after the legal counsel of the COUNTY shall have approved the title thus vested in the COUNTY as set forth herein, it will cause to be paid to the Seller(s)the purchase price. The COUNTY shall pay the following expenses associated with the conveyance of the Property: deed recording fees, settlement fees, title search fees,title examination fees,the COUNTY's attorney's fees,and title insurance premium.Seller shall pay pro- rated real property taxes to the period prior to the vesting of title in the COUNTY, or the effective date of possession of such real property by the same,whichever is earlier. Seller shall pay in full at or prior to closing ' any special assessments and non-ad valorem assessment. The Seller(s)shall pay the expenses of documentary stamps to be affixed to the deed and the removal of trash,debris,and structures from the property, if any,and real estate commissions, if any. COUNTY hereby represents and warrants that COUNTY has not had any 0) discussions or negotiations with a broker. Full possession of the premises shall pass to the COUNTY as of the date payment is made to the Seller(s)subject only to the reservations stated in Section 2 above. 7. It is mutually agreed that a title insurance policy or other evidence of title to the property herein contracted to be sold,reasonably satisfactory to the legal counsel of the COUNTY(but subject to the terms set forth herein) Packet Pg.2880 U.2.a will be obtained by the COUNTY at its expense. The Seller(s) expressly agree herein to furnish to the COUNTY any documents in Seller(s)'s possession establishing evidence of title including,but not limited to, abstracts, title commitments, title policies and opinions of title and proof of legal access to the property, if any. 8. It shall be the obligation of the Seller(s)to pay all taxes and assessments outstanding as liens at the date title vests of record in the COUNTY,whether or not such taxes and assessments are then due and payable. 9. It is mutually understood and agreed that notice of acceptance of this Agreement shall be given to the Seller(s) by email to the address provided by the Seller(s) or by mail addressed to the Seller(s) at the following address: SJK Investments,LLC with copy to Erica Sterling,Esq 615B United Street 500 Fleming Street y Key West F133040 Key West FL william@kemp-properties.com erica(-7a,snottswoodlaw.com and shall be effective upon date of mailing and shall be binding upon all Seller(s)without sending a separate notice to each,except as such obligation may be affected by the provisions of paragraph 6 hereof. n 10. The property shall be delivered at closing free of any tenant or occupancy whatsoever. 11. The Seller(s) shall close any open building permits or code enforcement proceedings that were for work performed on the Property prior to closing. N 12. The effective date of this Agreement shall be that date when the last one of the Seller(s)and the COUNTY has signed this Agreement. 13.If the Seller(s)wish to proceed with this transaction,the Seller(s)have until May 11,2021 to sign and return this Agreement to the COUNTY. This Agreement may be executed in counter-parts. Closing on this transaction shall occur not later than 150 days following purchase approval by the Board of County Commissioners;however, in no event shall Closing occur after November 30,2021. In the event Closing has not occurred by November 30,2021, Seller may cancel this Agreement. ca 14.This Agreement may not be assigned by County. 15.This Agreement may be executed in one or more counterparts. ****The remainder of this page has intentionally been left blank.**** Signature page to follow. c Packet Pg.2881 U.2.a IN WITNESS WHEREOF, the Seller(s) have hereunto signed their names and affixed their respective seals on the day first above written and therefore the Seller(s) for and in consideration of the Ten Dollars ($10.00) hereinabove acknowledge as received, have and do hereby grant unto the COUNTY or its authorized representative, or any other office or went of the COUNTY authorized to purchase said lands, the option and right to enter into this Agreement for Purchase within sixty (60) days from the execution thereof by the Seller(s), and to purchase said lands as herein provided. 0 Seller: SJK Investments, LLC By Susan J. Kemp Ll "Signature '' bate Phone Number 0 w 2 CL The MONROE COUNTY BOARD OF COUNTY COMMISSIONERS, acting by and through its COUNTY ADMINISTRATOR has executed this Agreement oil behalf of the MONROE COUNTY BOARD OF COUNTY COMMISSIONERS this day of 2021. y 76 MONROE COUNTY (Seal) ROMAN CASTESI. County Administrator N x 0 Approved as to form and legal sufficiency. Robert B. Shillinger, Monroe County Attorney May 11, 2021 m o c, Packet Pg.2882 U.2.a Coca 1568411 Bkft 2189 P0 177 EXHIBIT r }.GAL DESCRIPTION PTION 1 1�a r e o �..��ra€.{ 1 1�i r€: C) and 5 gJ z - , i .` T Tin. E r r Ta 1., 1Jsv t1°.!1_{? 6, South, gang{ ..., f`.a:it , 47.t�jckland Kee, PhCJr'j..rct' I..CS i.l€"S�.'�, iry.}.�7rlf'�.,1 F (a-' so to be knownT - ' 3 Y €,a r f -r v'. -a - i F _t t�d ' t„i c k 1 a;➢.rd �-?rtp 'ryY'CtSC9(-''{t`«-- t=T=- Y"~ c C., 1_�'.e i_ ra,,.:. ::7f. r cr�}r..�'.rst P:i) 3?'r-. ;3 ..t. parcel being ZT!ore Pa:1::tacu1dr1`t' tiIoscribed as :to 1IO.dz � 0 t ,:;,['Slit, tl :+.:"Yt1 r :(>u :iwesr corner�slt� o:" t l-,e map or plat, of r h > _ Y , e _,rc_t i c)f t 1 c r iC5a o rh€ ice 'aurt "s, (U aixv,€ t.:11 Wecterly LrAr tersajd Ro k'aiid Vall.age", a dist,an e of 29. 30 feet: tci a point , }:,once, Wiest , leaving thLe said West ev 1.y liras: t S, a ..ii i-a.aa S 40,,. 0 feet to than Northwest � corner r.. la i,..I 4 Ct e.J t...a..a.. J..,z:.l i.`"1 Oft.. C'I a 1. d e{_.o r t C 3 i o c;k:. 373, P a Cd e s 1.12 M and 1.13 of the said Public Records of Monroe ouin-y, L-1.ari da thence corit.ini°7ng West, a. tv11 . ts ncce ot. 932 , 99 feet to point CL r_; ti:i s t a n c za of, L;€}�: (, €° S e.e t to a a ;S t")?.r".f t'n(.,n c e East, - .r a a ic nce o ci r� W a, dsct - J f E 0« 2 I Seet to a poin-t hereinafter -o be known as 't the "L.oint, of Be€-71n1e -A.q"i thence cori.tlIi4ii.nq P,ort.h,. --1 d_.st"`3nce cT !94.07 feet to ;a pn) nT , thence West , a dist-ance of 2833 11. feet to a poirii_> � ',..limn_ `Szou h, a di st an cP of 1-�4 .07 feet t c a point; thence East, a distance of 28` l 1, feet b ck to the 's`(,)1.nC of Beginning" . N '{{ C 4 C t;�.Y'! t ='? o i Y h -acres r e s more, or .}4J, ..j J` � u e..a.E. N X €`QK,%KEMP\SJK,]nVr-Strrr-ni k`�L j IDescr( tion dam° 90325-064 ¢ 0 tJ U MONROE COT" uj OFFICIAL RECORDS 0 tJ U Packet Pg. 2883 U.2.a Dora 1537827 0 / 4/ 00 10:27AM Filed & Recorded in official Records of This instrupant prepared by )L Under MONROE COUNTY DANNY L. the supervision of: D*c# 177 Address : .7 s .,t_.r:-1 K.e".,r t e y & Associates, 1?.A... 0 S ea�.� Esa. r`1ra Crssat:7 ' EASEMENT AGREE-MENT W THTS AGREEMENT is made this 24th day of june, 2005 by and corporation mac,.: Nt_.t kid;.ltx F.ins.., Ct,;1nt'". 'u'r F, G`roiltlf. e# . subdivision of the tatat.a cf Florida (the "County")j CL W 0. _irl consideration G,i i he C::%7'`i7 C1anLy tilld promises sf contained herein,n and a5 additional consideration for r-he t_ran ter by W ar t ant,y Deed from Rockland to the County of the parcels of iaIr legally described in Exhibit r -) hereto, Rockland hereby t8 granny and conveys to the i 4t. d assigns, � �.�.+.. k/r its� successors and guests s and 4 nvivee non-exclusive easement as drawn on ;h ibw A-! hereto (the "Easement") , not to exceed 50 feet 1f't 1rd7dt.h i is e r je',1.t.7 ti,y for access, ingress and egress g":}l,lrj)C),`_ f over and aC".".Y:t s-s the road area, as same may be placed by Rockland from time to used for access, Gres and egress t`t1�1{'`. r�1� Easementa may`X C - "�e and placement f}4 utii 4t t es, including, b uL not 100ted to, water-., .® te1a Lg' t ._ jh telephone and cable to the property described on X Exhibit A-2 . 2 . This grant of Easement will run with the land and will t8 be binding an and will inure to the benefit of -Lhe parties hereto. This Easement; may be moved from time to time by 1?or•kland and shal.]. revert to Rockland when no longer nec,c ied for access to the tom.o s1."! „a property. . o.�... if t..�`}e C,C 7 u rl+y° s .;:`'a p e is t'y i �„a r'"c h a s e d �:.'r�r` j a i y contiguous property owner of any $, n¢..Ay t :la,?t is )wnrad con roi € ed a `,1`r under t ur" 1'on uontrol with the contiguous,rJus property owt,.,er the rase±°tlwS"1t consists of ea. gravel road. The parrion of the Easement lent. � that l:`ti71s north south on the west side of Treads 5, 13 and 20 as, shown are the drawing attached as imxh7h _ A,-1 shall be com - e e--d by � Rockland within in six months from the date of this ag"'"eemC?t`'r; . -_! Rockland, for itself, i t s. successors n.J retains the right to use the Easement area for any use not _ . _ 1.%`l t T'1 T t`? _ with the provided, C.+, eT 'g withn,,it I m 1_ s the r,;a - �i.1'gr °thar Rockland y diminish or 1 , County, s �,, 1 a shall 1 not t ��]y r�. ,.,�� n� limit rr��t �'�°Y�s�t� s U ,9c t,ss to said E asemr,:?it for { ount-y' s leaf. ,as de-scribed above . 1 Packet Pg. 2884 U.2.a 4 . Ail nc,0 ic s e1ec . ion s demands, requests and other r om,rii1II"!ica,, .�.tJa'?s here'urder shall be in writing, signed by the party 2 king the same and shall be seat by certified or registered c 0 To the C°oi_ mty Monroe Co,.-i y w 0. 11,00 Simonton S� reet c Key West, FL 3 040 To Rockland Rockland investnient y21 77 p �) _ w w Ch or at such other acidr..—,s a q may 'he e a;r ° be designated n wri 7 ing our hands and seine this 24th day of june, 2005. CL 0. WITNESSES: VONROE COUNTY E CD Sign r to Ca C1Gr: «art ". .l , '< i `A )R; ,DTI jr., Name Print as � X CC1RPO ION, !NC . d Florida corporation 141 'lose, u Sign Name: w r ,,i?C: Name-- GNU J DoM 177 NCa Date # CU) - 2 I Packet Pg. 2885 U.2.a STATE OF FLORIDA COUNTY OF MONROE -� a �k�n - � �he ci ir,. a r -1 � � e' � � G on >eha .,6' ot- Monroe County, who is Din ��1 �1 � i1t�rCt CCJ �� fp"l dP,nt i f1c a tiC) 0 E,,,��,4� :PAMELAG. rDQ K IRES;E fi BMW s a STATE OF FLORIDA COUNTY `;C r,e i"�,.c:..�,:�tt�1 ri,f;� � ... ".�,:. lu:?1 x�.i'�t w a s .,"c i',..''"t.o.rl'l e d'"J e d r�, e f �i.r e me 1_ .1 . L T !NVE TllElQ'L, Ste'OFTORAT...TOJT, 71',Ir . , Wl,c i .—G. x a ?d ...€.�4' `.r. "5 t'., f r-� ;Ts. fhaS.. Z � cift 1 0 tJ U X Dock # 2146 PgN 22 0 tJ en Mor'iroe t._un'-.y EI's ;„ME""1.AGP(f.,dl.mays r_rx<e:. U i Packet Pg. 2886 U.2.a 20. ;: t-� 96e Sow i5.'fna '- .h$ �'✓ ',W':s g' n'p I R I 94L. 627 478M F ..a- xh 1 a 7 O BkN 1 0 4 E X Easement N I d 1 e CD AAtI .. 6 . i _ r I - r 99 .ii r V Ile 0 _ a- x LU Yl 9 � e � } r _ y r� _ ate. ,• • i AL �.x,.s 3m35 644E,6 r 3 cx C( Packet Pg. 2887 U.2.a 1 EXHIBIT A-2 LEGAL DESCRIPT10N Property conveyed from Rockland to Monroe County DESCRIPTION: PARCEL "A" parcel of land lying in and being a part of Government :Lot No. c `7, Section 21 , Township 67 South, Range 26 East „ Rockland eye Monroe County, I,''I rid (also to be known as Tract 4 of the fiat ure reap or plat entitled "Rockl—and Key Commerce Center" at: 0. the time of recordation) and said parcel being more particularly 0. described as follows : � Commencing at the Southwest corner of the map or plat entitled "Rockland Village" as recorded it Plat~ � B(.x)k 4 , Page 133, of the Public Records of Monroe � County, Florida; thence North, along the Westerly limits f the said "Rockland Village" a distance of .W. 29 . 30 fees to a point; thence West , :leaving the said Westerly limits, a distance- of 1840 . 50 feet to the Northwest corner of lands described in official.. y Records Book 373, Page (s) 112 and 113 of the said Public Records of Monroe C ouaaLy, Florida; thence � continuing West, a distance of 932499 feet to a point hereinafter to be known as the. -Pc—)jut, of Beginning" ; thence cony i nui rlg 'Test, a distance of 173 . 11 feet to a point- ; thence N,-)rtj-j, a distance of 340 .74 feet to a N point; t.h nt,°c East, a distance Of 1.'13 a 11. feet to a point ; 0aerjce South, a distance of 34 . 74 feet Back to r he, „Point of Beginning" Containing 58 , 966 square feet or 1 . 394 acre more or less . DE SCrR.[PL'IC.3N 1'hRIC L „Rx, 1 azid i i n and g � a � parcel �f � 'Lying Faun � �-, E. r��' Clci�,rerrarrt�t�t L t I�'c�. 7, Section 21 , Township 67 South, Razage 26 Fast, Rockland fey, Monroe County, Florida (also to be known as Tract 5 of the � future map nr plat entitled "Rockland Key Commerce Center" at the time of recordation) and said parcel being more particularly � described as follows � C'a€r`mel-c-ing at the ,`wo tw.hwest cornr:,�r of thew; Map Or plat entitled "RocklandVillage" as recorded In Plat Book 4, , Page 1.3 3 , of the Public Records of Monroe County, Florida, thence North, along the Westerly JitTiit-s of the said "Rockland Village" , a distance o.f 29 , 30 feet to a point. ; thence West , leaving Lhe said W{.:_ tv 1y �t itd iLs, a distance Of 1840. 50 feet trod the � Roca 2537827 8 2146 pska 24 Packet Pg. 2888 U.2.a Northwest corner of lands described in Official Records Book 373 , i-la e (s) 112 and 113 of the said Public Records of Monroe County, Florida;a; thence � continuing West, a distance of 932 . 99 feet t. o a point , c thence North, a distance of 340A4 feet to a point hereinafter to be known as the "Point of Beginning" ; c thence continuing North, a distance of 1 1 - 93 feet t � apoint; thence West , a distance of 173 . 11 feet, to a point ; thence South, a distance of 161 . 93 feet, to a point; thence East, a distance of 173 . 11 feet track to the "Poinr, of Beginning" . Containing 28, 032 ljuare feet or 0 . 644 acres more or less . c W DESCRIPTION:f'"I`Zt.NPARCEL "C' c� 2 parcel of lard lying in and being a part of Government Lot No. .W. 7, Section 21, Township 67 South, urge 26 East , Rockland Kerr, Monroe County, Florida (also to be known as `I'rac°tY: 13 of the future map or plat entitled "Rockland Key Commerce Center" at n andsaid parcel being more the time of re>,�<�rdat icon) described as follows : � Commencing at the Southwe st corner of the map or plat entitled Rockland fiiJ lage" as ?recorded in Plat Rook , Page 133 , of the pubji c Pncords of. Monroe County, f nr da ; thence Nort l" alonq the Westerly limits f the said "Rockland Village" , a distance of 29 . 30 feet to apoint ; thence West , leaving the said Westerly limits, a ch tame of I840 . SO feet to the Northwest corner of lands described in official Records Boo 373 , Page (s) 112 and 113 of the said Public Records of Monroe County, tR l orl da; thence continuing West , a distance of 932 . 99 feet to a point; thence North, a. distance of 502 . 67 feet to a point hereinafter to be known as the -Point ofBeginning" ; thence Fast a distance of 110 . 00 feet to a paint ; thence North, a � distance of 104 . 12 feet to a point ; thence We t , distance of 2B3 . 11 feet to a intr thence South, a � distance of 104 . 12 feet to a Point, thence, East, a � i s f 7� `t 1 feet. back tr.r t-he "Pni.nt: d �tane�e e�� :� �. . �. of Beginning" . Cv"'�rsat�.m:ira5.r�{� �.,�, "ll eaar��� feet car C) : c> 7 acres more ear less , c DacW! 17 2146 Pit 25 Packet Pg. 2889 U.2.a DESCRIPTION: PARCEL "D" A paL tz ..3. of laird lying in and being a par,,- {W" Government ;mot °'lay . c 7 , Section 21, Township 67 South, Range 26 East, Rockland ley, Monroe County, Florida (also to be known as Tract 20 of the c future map or plat entitled "Rockland Key Commerce enter" at � the time of recfordaLion.) and said parcel being anrre part-icularly 0 described as followsa Commencing a'r thze Sao ",h wte s-.1 corner of the map or a i,1t E 11a " � r P.� a C Book�e r L c "Rockland p 4 , pate 133 , of the Public Records of Monroe County, e Florida; thence North, along the Westerly limits y the said "P c lancd Village" , a distance of 29 . 30 feet � to a, point ;, thenceWest- , leaving the said Westerly limits, a distance of 1840 . 50 feet to the 1 ort-hwe t CL corner of lands described in of fic i a.] Recorcd.s tic k 0. 373 , Page (s) 1' 1 2 and 113 of the said Public Record., of t8 Fi r, tia; thence cor..ar a v, �a�-cue CCounty, _ min West , a _ distance of 932 . 99 feet to a point; thence North, a distance cat 502 , 67 feet to a poiIntj thence East, a � di s,t.azrce-- cif 110 . 00 feet to a point; thence I":torUl, a distance of 104 . 12 feet to a point hereinafter to d known as the "Pczfint of Beginning" thence continuing North,h, L CI i stance of 104 . 12 feet to a Point ; thence,, We o t , a distance of 262. II feet, t,.,o a p rat , T-hence South, a di tag c:e of 104 . 12 feet to apoint; thence x East, a distance of 283 . 11 feet back Cothe "Poii=t of Beginning" CQrataininq 29, 477 square feet or 0 . 7-� acres more or lava. � 0 U 0 F:`tJK\K MP\Rw0CKI_AI%r3\5a1e to M'nnioe County\ EGAL DEsc-RivrioLV..doc t UNT 72 OFfICIAL RECORDS Bko 1 U I Packet Pg. 2890 U.2.b 3144 Northside Drive,Ste 201 Key West,FL 33040 4: A P P R A I S A L C off,im(305)296-4563 4xtt3t15)�722?ltnl '4 ebsitc:I r &€cs l;r4�rau� ) . rangy F:-mails jinrar lhl-k,vysallprakals.anna March 11, 2021 Mr. Kevin G. Wilson, P.E. Assistant County Administrator Monroe County, FL(Florida Keys) 102050 Overseas Highway 0 Key Largo, Florida 33037 Subject: Appraisal Report of: Subject Property: Tract 22 (Split-out of Parcel GG), Part of 121 Overseas Highway E Rockland Key, Monroe County, Florida 33040 Our File No.: 114-21 e Dear Mr. Wilson: 2 I have performed an Appraisal Report and formed my opinion of the"As Is"Market Value of the above referenced property as of February 10, 2021. The assumptions and the real estate referenced above are 0 more clearly defined in the General and Extraordinary Assumptions and Limiting Conditions plus in the Property Description section of this report. The attached Appraisal Report has been prepared to comply T with my understanding of the requirements of the Uniform Standards of Professional Appraisal Practice. The subject property consists of one, vacant, Industrial zoned tract with 194.07 linear feet along the E easterly side an access road and extending approximately 283.11 linear feet in depth. Access to the site is from the gravel road "Conch Circle" which connects to the secondary, gravel road, locally called N Industrial Drive, northerly from the Overseas Highway, also US 1 Highway at approximately Mile Marker 9. A survey of the subject property was not made available. According to the Monroe County CD CD N Property Appraiser's Office, the subject site contains 54,943 square feet or 1.26 acres. Any revisions to the site dimensions and site area, to the subject property, may result in a change in value. °i E Packet Pg. 2891 U.2.b Mr. Kevin G. Wilson, P.E. Assistant County Administrator March 11, 2021 Page 2 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. The Fee Simple Interest is the unencumbered value of the subject property;basically, market rents and terms are considered with no regard to existing leases and terms. The Leased Fee Interest is an ownership interest held by the landlord, who conveys the rights of use and occupancy to a tenant by 0 lease. The landlord's rights include the right to receive rent and the right of possession at the end of the lease period. Presently, there are no existing long-term leases encumbering the subject property. Therefore,a Fee Simple analysis was performed and Leased Fee valuation was not considered applicable in the case at hand.The reader is cautioned that a title search was not made;thus,no other encumbrances E are considered herein. 0 W Based on analysis of market data, inspection, and research, it is my opinion that the "As Is" Market `h Value of Subject Property, commonly known as Tract 22, Part of 121 Overseas Highway , Rockland Key,Monroe County,Florida subject to definitions,assumptions and limiting conditions,as of February 10, 2021, is: ONE MILLION THREE HUNDRED SEVENTY THOUSAND DOLLARS ' ( $ 1,370,000 ) T As of the effective date, the 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 appraiser assumes that the defy in market activity,buy 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. The attached Appraisal Report which is intended to comply with the reporting requirements set forth E under Standard Rule 2-2(a)of the Uniform Standards of Professional Appraisal Practice for an appraisal U report,Title XI of the Financial Institutions Reform,Recovery and Enforcement Act of 1989(FIRREA), and the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, plus typical appraisal guidelines. The Appraisal Report f/k/a Summary Appraisal Report, may 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. The appraiser is not responsible for unauthorized use of this report. Packet Pg. 2892 U.2.b Mr. Kevin G. Wilson, P.E. Assistant County Administrator March 11, 2021 Page 3 If you have any questions regarding this appraisal report,feel free to contact me. Thank you for giving me the opportunity to provide this service for you. Respectfully submitted 0 0 James E. Wilson, MAI, MRICS, President State-certified general real estate appraiser RZ2164 Email: jimLfla-keysappraisals.com 0 Report Attached:R:AComm-21\114-21\Comm-21-114.wpd 2 T cv cv cv CD cv U Packet Pg. 2893 U.2.b APPRAISAL REPORT Subject Property Located At: TRACT 22 (SPLIT-OUT OF PARCEL GG), PART OF 121 OVERSEAS HIGHWAY KEY WEST, ROCKLAND KEY, MONROE COUNTY, FLORIDA 33040 Property Type: 0 VACANT INDUSTRIAL LAND 0 Prepared For: MR. KEVIN G.WILSON,P.E. c ASSISTANT COUNTY ADMINISTRATOR y MONROE COUNTY,FL(FLORIDA KEYS) 102050 OVERSEAS HIGHWAY a. KEY LARGO,FLORIDA 33037 Valuation Date: Ln FEBRUARY 10, 2021 w Prepared By: N cv JAMES E. WILSON,MAI,MRICS,PRESIDENT N CD STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER C14 RZ2164 APPRAISAL COMPANY OF KEY WEST 3144 Northside Drive, Suite 201 Key West, Florida 33040 OUR FILE NO.: 114-21 Packet Pg. 2894 Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL TABLE OF CONTENTS COVER PAGE LETTER OF TRANSMITTAL SUMMARY OF FACTS AND CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0 SUBJECT PROPERTY PHOTOGRAPHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 0 ASSUMPTIONS AND LIMITING CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 0 STATEMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 E FLORIDA KEYS MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 0 W LOCATION MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 2 AERIAL PLAT MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 �d 0 FACTUAL DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 A. Purpose and Intended Use of Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 'ru .T B. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 C. Property Rights Appraised: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 D. Legal Description: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 E E. Ownership/Sales History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 F. Zoning: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 C44 1 G. Utilities: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 C44 H. Real Estate Taxes & Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 I. Effective Date of this Report: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 J. Date of this Report: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 K. References: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 E SUBJECT'S MARKET AREA ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 DEMOGRAPHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 ROCKLAND PLAT MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 PROPOSED SITE PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Appraisal Company of Key West Page I Packet Pg. 2895 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL AERIAL PLAT MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 COUNTY FLOOD MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 FLOODMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 STATEMENT OF HIGHEST AND BEST USE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 A. Definition of Highest& Best Use: 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . As Vacant& Available: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 0 As Improved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 a, B. Scope of Work, Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 C. Cost Approach .. . . . 43 P 0. D. Income Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 0. E. Sales Comparison Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 w 0 RECONCILIATION AND FINAL ESTIMATE OF VALUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 w CERTIFICATION OF VALUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 2 Part IV W ADDENDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 QUALIFICATIONS OF APPRAISER JAMES E. WILSON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 T cv cv cv CD cv u Appraisal Company of Key West Page 2 Packet Pg. 2896 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL SUMMARY OF SALIENT FACTS & CONCLUSIONS Subject Property: Tract 22 (Split-out of Parcel GG), Part of 121 Overseas Highway Rockland Key, Monroe County, Florida 33040 Property Type: Vacant Industrial Land for Redevelopment -� (Existing Dilapidated Structures Have No Contributory Value) 0 Zoning: I Industrial, Monroe County 0 Land Size: 54,943 square feet or 1.26 Acres 0 Flood Hazard Zone: Map No.: 12087C1531K, 2/18/05: Flood Zone AE(Elevation 10 feet) Value Indications: 0 Reconciliation of Values 2 Subject Property Tract 22(Split-out of Parcel GG),Part of 121 Overseas Highway Rockland Key,FL 33040 "As Is"Fe a Simple' Valuation Method: Market value y Cost Approach: Not Applicable Income Approach: Not Applicable e( Sales Comparison Approach: $1,370,000 E As Is"Market Value,as of February 10,2021 (Rounded): $1,370,000 r N N Highest and Best Use: Future Development of Industrial Use C44 CD Date of Valuation: February 10, 2021 Date of Site Visit: February 10, 2021 e( Date of Report: March 11, 2021 Marketing Time: 6 to18 Months based on a list price within 5 percent of appraised value and based on stable economic conditions. Appraisal Company of Key West Page 3 Packet Pg. 2897 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL Exposure Time: Equal to present marketing time. Extraordinary Assumptions: The legal description with the recent Warranty Deed recorded in Official Record Book 2189, Page 1785-1787 has a detailed metes and bounds : description, also indicates that it will be known as Tract 21 of the future T map or plat entitled "Rockland Key Commerce Center". It appears the more recentproposed map depicts the subjectproperty as Tract22.Ihave r- utilized Tract 22 in this appraisal report. Hypothetical c Conditions: None 0 2 T) cv cv cv CD cv U Appraisal Company of Key West Page 4 Packet Pg. 2898 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL SUBJECT PROPERTY PHOTOS �j(�� } x Itt iys tit a ;�Lrss it�,�. (,) j.' E 1 £ � � }��s�l���''V�+�i"'i�t�s���11�����tj�����s�{����� 2 Street View Looking Along Access Easement"Conch Circle" T t 111 {fir rt t s t s it 114} ssl il�sl�\�+�35 t�� ��s��ltiS�t S tit ¢It tty � ?t P�t� Cf "•���,. ( t E .E+ Street View Looking _AlongAlong Access Easement"Conch Circle" Appraisal Company of Key West Page S Packet Pg. 2899 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL SUBJECT PROPERTY PHOTOS s 4 r ;r 2 View of Subject Parcel (Dilapidated Structure) T) N CV 51 N i r57 �k }S It\ �t t g�ic E ls�� 1 1Jn View of SubjectParcel Appraisal Company of Key West Page 6 Packet Pg. 2900 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL SUBJECT PROPERTY PHOTOS l�f E U View of Dilapidated Structure �t T t , All, C44 4 t r. CD N View of Subject Property Appraisal Company of Key West Page 7 Packet Pg. 2901 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL SUBJECT PROPERTY PHOTOS r ktrgkS ttjR ti rr � an F�t i�t�r{1�a�� E 2 View of Subject Property W T) E N N IC View of Subject Property Appraisal Company of Key West Page 8 Packet Pg. 2902 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL SUBJECT PROPERTY PHOTOS E 2 View of Subject Property W T N N N N Appraisal Company of Key West Page 9 Packet Pg. 2903 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL ASSUMPTIONS AND LIMITING CONDITIONS This is an Appraisal Report,which is intended to comply with the reporting requirements set forth under S.R. 2-2(b)of the Uniform Standards of Professional Appraisal Practice. As such, it might not include full discussion of the data,reasoning,and analyses that were used in the appraisal process to develop the appraisers' 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 the intended use stated. The appraiser is not responsible for unauthorized use of this report. 0 This confidential report is prepared for the sole use and benefit of Mr.. Kevin Wilson, P.E., Assistant County Administrator,Monroe County Staff and the Monroe County Board of County Commissioners, 0 0. is based,in part,upon documents,writings,and information owned and possessed by the client,Monroe a. County. This report is provided for informational purposes only to third parties authorized to receive W it. Appraisal Company of Key West assumes no responsibility if this report is used in any other manner. - 2 THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS: The legal description with the recent Warranty Deed recorded in Official Record Book 2189,Page 1785- 1787 has a detailed metes and bounds description,also indicates that it will be known as Tract 21 of the future map or plat entitled"Rockland Key Commerce Center".It appears the more recent proposed map 76 depicts the subject property as Tract 22. I have utilized Tract 22 in this appraisal report. This report contains the results of my 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. 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 is not encumbered by any long-term leases. Thus, a Lease Fee analysis was not applicable. The Fee Simple Value has been included herein. However, the reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. 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 is connected. No responsibility is assumed by the Appraiser for matters which are of legal nature,nor is any opinion on the title rendered herewith. Good title is assumed as a title search was not made available. Appraisal Company of Key West Page 10 Packet Pg. 2904 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL The property has been appraised as though free of liens and encumbrances, except as herein described. Charges for solid waste collection are a special assessment in Monroe County; delinquent charges for solid waste collection, or other liens against the subject property have not been considered in the valuation contained herein as a title search was not made available or conducted by the appraiser. The management of the property is assumed to be competent and the ownership in responsible hands. : The Appraiser herein is notrequired to give testimony in courtunless arrangements have been previously made thereof. � 0 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 Appraisers assume no responsibility for 0 0. such conditions, or for engineering which might be required to discover such factors. 0. Information, estimates and opinions furnished to the appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no respon- sibility for accuracy of such items furnished to the Appraisers can be assumed by the Appraisers. 2 Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the Appraiser is affiliated. �t The undersigned Appraiser has no present or contemplated future interest in the property and the ru 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 exceptthe applicantuse the same for any purpose without the previous written consent of the appraiser 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 the Appraiser is affiliated. E This appraisal report is in conformity with the Uniform Standards of Professional Appraisal Practices and this appraisal assignment was not based on a requested minimum valuation, a specific valuation,or the approval of a loan. The Fee Simple Value does not consider any personal property. Information, estimates and opinions furnished to the appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no respon- sibility for accuracy of such items furnished to the Appraiser can be assumed by the Appraiser. Appraisal Company of Key West Page 11 Packet Pg. 2905 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL The Americans with Disabilities Act("ADA") became effective January 26, 1992. The appraiser has not made a specific survey or analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property,together with a detailed analysis of the requirements of the ADA,could reveal thatthe property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a : negative effect upon the value of the property. Since the appraisers has no direct evidence relating to T this issue, possible noncompliance with the requirements of the ADA in estimating the value of the property has not been considered. 0 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, 0 0. among other things, non-apparent structural conditions; presence of prohibited hazardous wastes; a. 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 is not qualified to detect latent 0) conditions and has conducted this appraisal upon the assumption that no latent conditions (including 2 those mentioned above and others) exist on the property covered by this appraisal. In this appraisal assignment,the existence of potentially hazardous material used in the construction or maintenance of the existing building,such as the presence of radon,asbestos insulation and/or existence 0 of toxic waste,which may or may not be present on the property,has not been considered.There are only ru a few dilapidated structures on the site which will be demolished or removed. Any possible environmental detrimental effect was not considered. I am not qualified to detect hazardous substances. I urge the client to retain an expert in this field if desired. On February 11,2020,the World Health Organization(WHO)named apneumonia-type virus,COVID- 19 (coronavirus disease). One month later, on March 11, 2020, WHO declared the virus a pandemic, the highest level of a health emergency. Subsequently on March 13, 2020, President Donald Trump declared a U.S.National Emergency.By March 17,2020,there are documented cases of the virus in all 50 US states. E The sheer magnitude of the world wide disruption introduces an unprecedented complexity to market forecasting. The long-term impact is still not clear.Prior to the pandemic,market activity was driven by strong investor demand and liquidity. Asset values tend to fluctuate in short time periods if either of these two factors or other unexpected change in market conditions occurs. Swift and continued government stimulus is required to restart the national economy. Discussions with market participants, real estate agents,buyers, sellers,investors and other real estate professionals indicate that some sectors and property types will be severely impacted in the short-term. A rebound is anticipated due to pent-up Appraisal Company of Key West Page 12 Packet Pg. 2906 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL demand; however, a reliable time line is difficult to forecast at this point. ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraiser conducting this appraisal, nor the APPRAISAL COMPANY OF Key West make any warranty, express or implied, to property covered by this appraisal, and neither shall have any liability to any person for differences in the value of the appraised property, or other damages, resulting from discovery of latent conditions (including : those mentioned above and others) on, or in proximity to, the appraised lands. 0 I hereby certify thatto the best of my knowledge and belief the statements of fact contained in this report, upon which the analyses,opinions and conclusions expressed herein are based,are true and correct;also this report sets forth all the limiting conditions affecting the analyses, opinions and conclusions contained in this report; also this report has been made in conformity with the Appraisal Institute. 0 0 2 76 T cv cv cv cv STATE MAP Appraisal Company of Key West Page 13 Packet Pg. 2907 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL _ c .axw. E M W CL e( T) cv cv cv CD cv u Appraisal Company of Key West Page 14 Packet Pg. 2908 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL FLORIDA KEYS MAP FLORIDA Key Largo MM 99-106 Tavernier MM 91-92 Plantation Key MM 86-90 Windley Key MM84 tl�-%�ItKpl per Mat ecumbe Key MM80 N E �yer Matecumbe Key MM74 L. ecta Key MMJO ' r MM66-69 Key.MM61 (u - -aGran^yXey MM57-60 yhee M° oKeyColnEah MM54 0n— Ky 0) Marathon MM50 y Pigeon Key MM145 o, 7-mile s.-zdge ,v iiS��u�nl1shine dX:" 37--38 MM 40 Middle1Toi TSM1f 28 8 CL amrod MM 2�-27 S,u,iimmarlMMe�..��na MM 2 25 Sugsrulb�a KeY2MM22-23 Sever Sugarloaf Key MM 17 5addleb—eh Keys MM 13-16 Big Coppitt MM 10 Boca chlca MM 7-8 _ Stock Zsland MM 5 Key West MM 0-4 fn N 1 N N CD Appraisal Company of Key West Page 15 Packet Pg. 2909 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL LOCATION MAP 0 0 0 a 2 Ew Rockland Key Yoe[y xlarve, 3 �c� N t4 � y s Casty.` N N r N CD U Appraisal Company of Key West Page 16 Packet Pg. 2910 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL AERIAL MAP ublic.net"' Monroe County, FL u� Overview a ' 0 N pd E ' y +2208_anx X n 0 L.1egerd center§lrse 0 : '+ = - Easements Hooks Q, ,, a #, Ls LDG7 a00304 'h - _.... Read Center Tt � � - ��#•„� �, 7, � R4ghts of Way 4F� 1W`� KeyN.— .� $E15d8'YF4tfirl5 t lj Rasp 1 C. r �• r 4 'A pt. .t } 'M 5, 0 r� ° ,�' ���F�� taa rt Fame,IV 4X)122t7813•,Gt7G;t)4 Alternate PD'AM5G76 [7"er Address 5l K d NVES'I W.N`4'UC N 5eclrwp/Rng 21:67126 Class. VACANTINDUSTRIAL 6158 Unaee St Property Addrers VACANT LAND Key WY ss..FL 3,4X)4 Y ROC Kt.AN D KE`( Dss£rtct 14DOB Br;effax 2167'X6ROCKLAND KEY PTCs£3Y1I.,0T'lA7KAPT PARCEL firCr)t>R?713?27SA2;w�R1'719.2?24�%.:�)`AFFt"Jr#3:113.2,2:33r';32 Desutptim OR1719-2236CRFF<)R171�2237(39©R3719-72.76i77RELlEOR21i39-1-/85/87 tNnrz.`V.ant sx>•r, ..._Llat ea.i.insr.i[�i (� Gaye€neater:'t t39F7S:2;: Lass G;aea::ri is rr.;!719:'2r.15.4,2]'2"M N GiNv@k�'eS'Iry �C�'171��I�G�-''Y rs i N CD Appraisal Company of Key West Page 17 Packet Pg. 2911 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL FACTUAL DATA A. Purpose, Intended Use and Intended User of Appraisal: The purpose of this appraisal is to report to you my opinion of the "As Is"Market Value of the Fee Simple Interest of the subject property. The intended use of this appraisal is to reportedly provide general information to the client for 0 negotiations and possible purchase of the subj ectproperty by the Client. The client and intended r- user(s) of this report is Mr. Kevin Wilson, P.E., Assistant County Administrator, Monroe County, Monroe County Staff, and the Monroe County Board of Commissioners. 0 B. Definitions: 1. Appraisal is the act or process of estimating value; an estimate of value.' 0 0) 2. Appraisal Report is the written or oral communication of an appraisal; the document transmitted to the client upon completion of an appraisal assignment. The reporting standards are set forth in the Standards Rules relating to Standards 2 and 5 of the Uniform Standards of Professional Appraisal Practice. e( 3. Cash Equivalency Analysis is a method in which the sales prices of comparable properties,which sold with atypical financing for the market area are adjusted to reflect typical market terms.3 4. Extraction is a method of estimating land value where in the depreciated cost of the °' improvements on the improved property is estimated. The estimated depreciated value of the improvements is then deducted from the total sale price to arrive at an estimated sale price for the land.4 CD 5. Fee Simple Estate is absolute ownership unencumbered by any other interest, subject a only to the governmental limitations including: eminent domain, escheat,police power, and taxation.s �t Appraisal Company of Key West Page 18 Packet Pg. 2912 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL 6. Market Value is defined by the regulatory agencies of federal financial institutions, as follows. "The most probable price which a property should bring in a competitive and open market under all conditions requisite to fair sale, the buyer and seller each acting prudently,knowledgeably,and assuming the price is not affected by undue stimulus. Im- : plicit in this definition is the consummation of a sale as of a specified date and the pass- ing of title from seller to buyer under conditions whereby: a) buyer and seller are typically motivated; b) both parties are well informed or well advised, and each acting in what he 0 considers his own best interest; a c) a reasonable time is allowed for exposure in the open market; 0) d) payment is made in terms of cash in U.S. dollars or in terms of financial arrange- 2 ments comparable thereto; e) 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.i6 C. Property Rights Appraised: Since the subject property is not encumbered by any long-term leases, it has been appraised considering 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. A Leased Fee Valuation was not applicable. The element which is included in this appraisal is the vacant land. However, the reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein. Appraisal Company of Key West Page 19 Packet Pg. 2913 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL D. Legal Description: DOC# 15568411 Bkp 2289 Pgp 1787 EXHIBIT A LEGAL DESCRIPTION A parcel of land lying in and being a part of Governmeant. Lot No. 7, Section 21, Township 67 South, Range 26 East, Rockland Key, Monroe County, Florida (also to be known as Tract 2l of the future map Or plat entitled "Rockland Key Commerce Center" at the time of recordation} and said parcel being more particularly described as follows:. Commencing at the Southwest corner of the map or plat entitled "Rockland J:i11 c3€" as recorded in Plat Book 4, Page 133, of the Public Records of Monroe County, Florida; thence North, along the Westerly limits, of the said "Rockland Village", a 0. distance of 29.30 feat- to a paint, thence West, leaving the said 0. Westerly limits, a distance of 1840.50 feet: to the Northwest E corner of .Lands de criheci in Official Kecords Book 373, Pages 1.12 and 113 of the said Public Records of Monroe County, Florida; thence continuing West, a distance of 932.99 .feet to a point; 0 thence North, a distance of 502.67 feet to a point; thence; East, N a distance of 110.00 feet to a point; thence North a distance of 208.24 feet to a point hereinafter to be known as the "Point of Beginning"; thence continuing North, a distance of 194.07 feet to � a point; thence West, a distance of 283.11 feet to a pointy CL thence ,youth, a distance of 194.07 feet to a point; thence East, W a distance of 293.11 feet back to the "Point of Beginning" Containing 54,94.3 satttare feet or 1.261 acres more or less *Note: The most recent proposed Plat Map appears to note the subject as Tract 22. E. Ownership, and Sales History of the Subject Property: According to the Monroe County Property Appraiser and County Clerk records, Official N Records, Book 2189,Page 1785,the subject property was most recently purchased on February 17,2006 for$504,000 and according to the grantee,this sale was not an arm's length transaction. The Grantor/Seller was Rockland Investment Corporation, Inc., Inc. and the Grantee/Buyer is SJK Investment,LLC of 121 Overseas Highway,Suite 103(address attime of transfer).This sale was a subdivision of a larger parcel. The prior sale of the larger parcel was on August 2, 1996 for $1,600,000 with the Grantor, The Dickerson Group, Inc and the Grantee, Rockland Investment Corporation, Inc. According to the Key West Association of Realtors Multiple Listing Service, the subject property is not currently listed for sale. However, a group of tracts were previously listed for about$1 million per acre.The listing was cancelled in February 2021. A four acre parcel on the Overseas Highway is listed for$6 million or$1.5 million per acre. The existing buildings probably would be razed for redevelopment; thus, they likely do not have substantial contributory value. Appraisal Company of Key West Page 20 Packet Pg. 2914 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL F. Zoning District: According to the Monroe County Comprehensive Land Use Map as of the date of valuation, the subject property is within the Industrial Zoning District, I. Sec. 130-35. -Purpose of the Industrial District(1). The purpose of the I district is to establish areas that are suitable for the development of industrial, manufacturing, warehousing, and distribution uses. ( Ord. No. 006-2016 , § 1(Exh. 1), 4-13-2016) Sec. 130-82. - Industrial District(1). c (a) The following uses are permitted as of right in the Industrial district: (1) Restaurants of less than 5,000 square feet of floor area; (2) Office uses of less than 5,000 square feet of floor area; (3) Attached and detached dwellings involving less than six units, designated as employee housing as provided for in section 139-1; 2 (4) Commercial apartments involving less than six dwelling units; (5) Commercial fishing; (6) Institutional uses; (7) Light industrial uses; (8) Public buildings and uses; (9) Accessory uses; (10)Replacement of an existing antenna-supporting structure pursuant to section 146-5(b); (11)Collocations on existing antenna-supporting structures, pursuant to section 146-5©; (12)Attachedwireless communications facilities,as accessory uses,pursuantto section 146-5(d); (13)Stealth wireless communications facilities, as accessory uses,pursuant to section 146-5(e); and N (14)Satellite earth stations, as accessory uses,pursuant to section 146-5(f). cv (b) The following uses are permitted as minor conditional uses in the Industrial district, subject to the standards and procedures set forth in chapter 110, article III: (1) Office uses of 5,000 to 20,000 square feet in floor area,provided that access to U.S. 1 is by way of: a. An existing curb cut; b. A signalized intersection; or c. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; (2) Commercial apartments involving six or more dwelling units,provided that: Appraisal Company of Key West Page 21 Packet Pg. 2915 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL a. The hours of operation of the commercial uses proposed in conjunction with the apartments are compatible with residential uses; and b. Access to U.S. 1 is by way of: 1. An existing curb cut; 2. A signalized intersection; or 3. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at : least 400 feet; (3) Attached and detached dwellings involving six or more units, designated as employee housing as provided for in section 139-1; (4)New antenna-supporting structures, pursuant to section 146-5(a); and (5) Wastewater treatment facilities and wastewater treatment collection systems serving uses 0 located in another land use district land,provided that: 0 0. a. The wastewater treatment facility and wastewater treatment collection systems are in a. compliance with all federal, state, and local requirements; b. The wastewater treatment facility, wastewater treatment collection systems, and accessory uses shall be screened by structures designed to: 0) 1. Be architecturally consistent with the character of the surrounding community; 2 2. Minimize the impact of any outdoor storage, temporary or permanent; and 3. A solid fence may be required upon determination by the planning director; c. Where a district boundary buffer is not required as set forth in chapter 114, article V, a planting bed, eight feet in width, shall be established to buffer the facility, providing the 0 following: 6 1. One native canopy tree for every 25 linear feet of fence; 2. One understory tree for every ten linear feet of fence; 3. The required trees shall be evenly distributed throughout the planting bed; and 4. The planting bed shall be installed as set forth in chapter 114, article IV. © The following uses are permitted as major conditional uses in the Industrial district, subject to the standards and procedures set forth in chapter 110, article III: (1) Marinas, provided that: a. The parcel proposed for development has access to water at least four feet below mean sea level at mean low tide; b. The sale of goods and services is limited to fuel, food,boating, diving and sport fishing E products; c. All outside storage areas are screened from adjacent uses by a solid fence,wall or hedge at least six feet in height; and d. Each nonwaterside perimeter setback of the parcel proposed for development must have a class C bufferyard within a side yard setback of ten feet; (2) Resource extraction,provided that: a. The parcel proposed for excavation is a part of a lawfully operated, active quarry on the Appraisal Company of Key West Page 22 Packet Pg. 2916 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL effective date of the ordinance from which this chapter is derived; b. Excavation equipment is screened from view by any established residential use; and c. A reclamation plan is prepared and implemented in accordance with the requirements of the plan; and (3) Heavy industrial uses, provided that: a. All outside storage areas are screened from adjacent uses by a solid fence,wall or hedge : at least six feet in height; and r- b. The parcel proposed for development is separated from any established residential use by a class F bufferyard. ( Ord. No. 006-2016 , § 1(Exh. 1), 4-13-2016) 0 According the Monroe County Planning Department,properties in the "I"- Industrial Use District- is a. exempt from NROGO, (which limits new development to 2,500 square feet of gross building area), if � the use is any one of the following; manufacturing, assembly, wholesaling or distribution. - Other zoning requirements of the"I"Industrial Zoning district includes a 25'front-setback,a 10/15'side- setback,a 20'rear-setback and a parking requirements of 2.5 parking spaces for every 1,000 feet of gross CL building area.Also,there is a maximum Floor Area Ratio(FAR)of 40%and an open space ratio of 20%. In addition,the allocated density is one per upland acre and maximum net density is two dwelling units per upland acre. 76 T Noise Zone: The subject properties are located in Noise Contour Zone CNR3 (contour 115 Pndb), according to the N.A.S.Noise Contour Comparison maps,thereby restricting residential development on the subject sites. This factor does not negatively affect the subj ect Tracts due to their present and continued commercial and industrial use. N N N U Appraisal Company of Key West Page 23 Packet Pg. 2917 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL ZONING MAP i is'tsalai}s`t S J 1 s s tr-q}l\�� t 1 S �- + tt �t tiritt.a- r is '— 'rt}I} F ks n, ICI �I >! ut 2 ) eta 1�I s) s r C js77{{ 4SI,F s tar)U` � `i Al s r \ £t} fis n 1 )1 1 t ( 1 � ,itsFF� r is s Uit E L fttt, � aw � ' } ,it AJ �rfirJ#r �4u f ( '� 1UI�1 � 1 }(� �s � ;; 1t S w � }lt�s t (IJ E (ssl - ��� CV u Appraisal Company of Key West Page 24 Packet Pg. 2918 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL FUTURE LAND USE MAP tt � ry E e o - 2 L. t} ` T N ,, )� +tits t', l�,�f�3 to tt }}��ajs 1}'£ tt r t }l}1"f izt s rstt,as t'trt i,,.it t :�t 1' iS t r, !i •:, N C44 N .,S �� ;• St(t��y�y ���` ��-_ ���tY 19I�a�- }1?�} s �naht+MI7 � t st 1 da��+i t t t C44 U Appraisal Company of Key West Page 25 Packet Pg. 2919 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL G. Utilities: The subject parcel is are connected to Florida Keys Aqueduct (FKAA) for water, Keys Energy Services (KES) for electric, and Waste Management for solid waste. It is currently connected to a private sewage treatment plant, but will be connect to the Big Coppitt Wastewater District for wastewater. .� H. Real Estate Tax Assessment& Burden: 0 Subject Property,Tract 22,Portion of 121 Overseas Highway,Rockland Key Parcel No.00122080-000304-Alternate Key 9085076 Year Land Improvement Msc.Imp. Just Value Assessment Tax Burden Wastewater Total Burden Mllage 2020 $275,182 1 $0 1 $6,535 r $281,717 1 $94,603 1 $1,499.28 1 $0.00 1 $1,499.28 1 9.2182 0. 0. 0 Based on the 2020 millage rate of$9.2182 per$1,000 of the overall property's 2020 assessed value, W the indicated 2020 tax burden for the subj ectproperty is$1,499.28. According to the Tax Collector's 2 office,the 2020 taxes have been paid and there appear to be no delinquent taxes owed for the subject parcel. However, a title search was not made for the subject parcels. L Effective Date of Appraisal: February 10, 2021 0 T J. Date of this Report: March 12, 2021 K. References: Information, estimates and opinions furnished to the Appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished to the Appraiser is assumed by the Appraiser. Relevant information for the subject property was provided by Mr. William Kemp and Mr. Steve Henson. Additional information was provided in the verification process by various real estate agents, buyers, sellers and market participants. E Appraisal Company of Key West Page 26 Packet Pg. 2920 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL SUBJECT'S MARKET AREA (NEIGHBORHOOD)ANALYSIS The subject properties have highway access via the Toppino Industrial Drive with additional easements off the westbound lanes of U.S. Highway No.1. The Overseas Highway also known as U.S. Highway No. 1 is the only highway into and out of the Florida Keys and Key West. It is a two-way asphalt paved highway which all vehicular traffic must use to enter or exit the Florida Keys. The surrounding : neighborhoods include single family homes,trailers and one condominium project.There are a few areas of modest homes and manufactured homes in need of renovation in the surrounding neighborhoods of the subject tract,however,there are signs of improvement as properties are bought and renovated. Just nine miles easterly from Key West,the area provides affordable housing for the working service class, and/or light industrial,commercial,and warehouse uses which depend mostly on local patronage. Also, there are native areas that are environmentally protected which include wetlands, native vegetation, 0 0. mangroves and other low-level plants and vegetation and/or protected wildlife habitat. Generally the a. subject's area would be described as desirable and with lower property values, the area is attractive to W Key West and nearby Naval Air Station (NAS) employees. 0) The subject property is located within an area which is dominated by a few residential subdivisions and 2 undeveloped acreage, most of which is environmentally protected wetlands and/or sensitive native vegetation. Sparse evidence of commercial development is noted along the Overseas Highway corridor. Prior to the recent economic slowdown,there was steady development within the neighborhood due to its proximity to the City of Key West. The subject's immediate area is Industrial park with vacant land and improved warehouse and light industrial properties. T In conclusion, the subject neighborhood is very desirable for commercial or industrial development, especially due to the existence of industrial zoned tracts park. The subjectproperty enjoys avery central location within the Lower Florida Keys, which is very desirable to business entities. The existing Industrial use represents the Highest and Best Use of these sites. The commercial uses along U.S.Highway No. l include hotels,motels,restaurants,professional offices, hospital, retail shops and strip shopping centers, tourist-related businesses, service establishments, recreational and commercial marinas, marine related uses, and mobile home parks. E The Key West Airport is located about five miles southwesterly and Miami International Airport is located about 140 miles northerly from the subject property.Key West offers several substantially sized shopping districts for this Lower Keys community, having several strip shopping centers, local retail stores,national retailers such as Sears/K-Mart,Home Depot,Office Max,CVS,Walgreens and medical, dental and professional offices. Appraisal Company of Key West Page 27 Packet Pg. 2921 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL General Economic Conditions: The renovations, improvements and demand for properties within the area had been steady; however, because of the national slow down in the housing market supply had exceeded demand until late 2011. A distinct decline in the residential sales volume and property values due to increases in inventory, less demand and the difficulty in obtaining financing from the height of the market 2005/2006 until last year affected the real estate market. During this downturn, "short sale", foreclosure, and distressed sales .� activity became quite prominent,unfortunately,affecting the entire market. It appears that the residential market began to rebound in 2011. Inventory has actually become tight since 2012 with increases noted in asking and sales prices. Since the onset of COVID and extremely first quarter 2021, substantial increases have been noted. c With respect to the commercial retail sector,the market has experienced an increase in the availability 0 0. of vacant commercial space in the commercial real estate area during the recession. However, the a. commercial market"bottomed out"near the end of 2011 and has subsequently stabilized followed by � an appreciation in values. There was a significant increase in sales and leasing activity since 2013 to - present. Rental rates and occupancy rates are continuing to climb. 2 IMPLEMENTATION OF COMMERCIAL R.O.G.O. Sales of vacant, commercially zoned parcels within the Florida Keys have dwindled over the past few 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 latest regulations, the maximum allowable square footage for new commercial development is 2,500 square feet. 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 is to grantthe applicant an allocation award,offer to purchase the property, or suggest such other relief as may be necessary and appropriate. cv Saply and Demand The supply of commercial space is limited and new commercial construction has been restricted since E 1996 due to a commercial building moratorium that had been in effect until the recently implemented commercial rate of growth ordinance (NROGO). Therefore, the current and ongoing regulations are expected to place upward pressure on price levels of existing commercial units. Furthermore, the downturn of the national economy as well as the increasing protection of environmentally sensitive lands have resulted in the reduction of developable sites similar use properties. Appraisal Company of Key West Page 28 Packet Pg. 2922 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL Conclusion: In summary,the subject property is located in the Lower Florida Keys where there is a concentration of services,employment and shopping. Residential uses are located off the highway;these neighborhoods, as well as neighboring communities support the commercial businesses in the area.Big Coppitt Key the adjacent Key to the subject property,location is appealing, especially with the availability of municipal : sewer utility services. 0 The surrounding structures are generally well maintained in average to above average condition. The r_ considerable amount of automobile traffic along U.S. Highway No. 1 provides good exposure to this area. Further, I anticipate an improvement in the general quality of the neighborhood, due to building and environmental restrictions placed on all properties in the Florida Keys. 0 A brand new affordable housing project was commenced on Big Coppitt Key, the adjacent Key to the subject property. The Quarry, a moderate and low income affordable housing project has been completed and contains 208 units, including one, two and three bedrooms rental units on the gulfside of Overseas Highway located on a 14.77 acre parcel_ On February 11,2020,the World Health Organization(WHO)named apneumonia-type virus,COVID- 19 (coronavirus disease). One month later, on March 11, 2020, WHO declared the virus a pandemic, the highest level of a health emergency. Subsequently, on March 13, 2020, President Donald Trump declared a U.S. National Emergency. By March 17,2020,there were documented cased of the virus in ru all 50 US States. The sheer magnitude of the world wide disruption introduces an unprecedented complexity to market forecasting. The long-term impact is not clear. Prior to the pandemic, market activity was driven by strong investor demand and liquidity. Asset values tend to fluctuate in shorttime periods if either of these two factors or other unexpected change in market conditions occurs. Further and continued government stimulus may be required to dispel a recession. Discussions with market participants,real estate agents,buyers, sellers, investors and other real estate professionals indicate that some sectors and property types have severely impacted in the short-term such as: tourism heavy retail, restaurants,attractions and watersports. A rebound is anticipated for commercial market due to the pent- up demand; however, a reliable time line is difficult to forecast at this point. The industrial segment is till strong due to limited supply and there have been a few land sales near the subject,which were very strong. The residential market has exploded in activity during the COVID-19 pandemic as out-of-town buyers are flocking to the Florida Keys, in search of safety, privacy and a year-round outdoor living friendly environment. Appraisal Company of Key West Page 29 Packet Pg. 2923 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL Advantages and Disadvantages of Subject Property: Stren tg hs: 1. Recent Rebound and Appreciating Market Values even inspite of the COVID-19 crisis .� 2. Lack of comparable industrial properties for sale 3. Limited Supply of Industrial Land and Light Industrial and Warehouse Improved Properties in General 0 Weakness: P 0. 4. The subject is located on "Conch Circle" a gravel road, in an off-highway location. a. 0 2 76 T N N N N Appraisal Company ofKey West Page 30 Packet Pg. 2924 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL In terms of demographic trends taking place in within a 3.0 mile radius of the subject property has been compiled: esr - Demographic Income Profile _ 155 Overseas Hwy,Key West,Florida,33040 Prepared by Esri Ring:50 mile radius .437z+ Summary ;C$nsus2010 2039 2024 Population 52,669 53,050 53,895 Households 23,239 23,296 23,633 Families 12,676 12,563 12,694 Average Household 547e 2.20 2.21 2.21 Owner Occupied Housing Units 12,169 11,438 11,845 Renter Occupied Housing Units 11,070 11,858 11,788 Median Age 44.9 47.4 48.0 L- 4rendst 2019-Z024 Annual Rate Area Stale National ' Population.. 0.31% 1,37% 0.77% Households 0.29% 1.31% 0.75% Families 0.21% 1.26% 0.68Wo Owner HHs 0.70% 1.60% 0.92% Median Household Income 2.89% 2.37% 2.70% 2019 2024 0) Households by income Number percent Number Percent N c$15,000 2,019 8.7% 1,784 7.5% $15,000-$24,999 1,326 5.7% 1,194 5.1% $25,000-$34,999 1,765 7.6% 1,508 6.4% $35,000-$49,999 3,474 14.9% 3,167 13.4% CL $50,000-$74,999 3,730 16.0% 3,184 13.5% $75,000-$99,999 3,796 16.3% 4,023 17.0% $100,000-$149,999 3,406 14.6% 3,792 16.0% $150,000-$199,999 1,523 6.511. 2,208 913% $200,000+ 2,257 9.7% 2,773 IL7% Median Household Income $69,120 $79,693 Average Household Income $96,577 $111„807 In Per Capita Income $42,640 $49,263 ' Census 2010 Z019 2024 Population by Age Number Percent Number.: Percent Number Percent ' 0-4 2,490 43% 2,210 4.2% 2,278 4.2% 5-9 2,080 3.9% 2,225 4.2% 2,152 4.0% 10-14 2,030 3.9% 2,220 4.2% 2,242 4,2 15-19 2,315 4.4% 1,920 3A% 2,143 4.096 � 20 24 2,910 5.5% 2.,489 4.7% 2,471 4,6% 25-34 7,106 13.5% 6,867 12.9% 6;602 12.3% P, 35-44 7,508 143% 6,527 12.9% 7,046 1311% CV 45-54 9,110 1.7.3% 7,658 14.4% 7,035 13.1% CV 55-64 9,046 17.2% 9,488 17.9% 8,906 16.5% 65-74 5,020 9.5% 7,257 13.7% 3,049 14,,99/b 75-84 2,307 4.4% 3,001 5.7% 3,975 7.4% 85+ 747 1.4% 888 1.7% 986 1.8% Cutout;2010 2019 2024 ,Rase and Ethnicity Number Percent Number Percent Number : Percent CU White Alone 46,115 87.6% 44,833 84.5% 44,684 82.9% Black Alone 3,837 7.3% 4,760 9.0% 5,333 9.9% American Indian Alone 201 0.4% 237 0.4% 269 0.5% Asian Alone 664 1.3% $55 1.6% 979 1..8% C6 Pacific Islander Alone 50 0A% 53 0.1% 59 0,1% Some Other Race Alone 796 1.5% 1,034 1.9% 1,147 2.1% Two ar More Races 1,006 1.9% 1,278 2.4% 1,414 LIS% Hispanic Origin(Any Race) 11,280 21.4% 14,096 26.6% 15,938 29.6% Data Note:Income is expressed in current dollars. source:U.S.Census Bureau,Census 2010 Summary File 1. Esn forecasts for 2019 and 2024, April 23,2020 Appraisal Company of Key West Page 31 Packet Pg. 2925 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL esiri Demographic 155 Overseas Hwy,Key West,Florida,33040 Prepared by Esri Ring:50 mlie radius it Trends 2019-2024 c 2.5- i CL 2_ 1.5 Of 1 0 � Area 0.5 e i :zi: Q USA �.I 0 E �� .�, i,� �r It � Population Households Families Owner HHs Median HH Income Population by Age 0) 16 N 12 1 � Y I � 10 C=• J iri W a 8 I EL 5 I� r0 2019 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ N 2019 Household Income 2019 Population by Race 3SK-C49K $25K-j34K 80 $I5K-$24K 70 5.74 $50K-04K 60 tG Oaro i hN1. B.II so C dl 40 d 30 $200K+ 9.7n 2.0... CD $I.``4K"$1499 10 G.5°h $100, r 4.G4S, Whim Black Am.Ind. Asa. Pacific Other T.O+ 2019 Percent Hispanic Origin:26.6% (, �dw rce:U s.a ensrt5 here .l,i=eixsrec Jai[a SfrinomarY I rile i. L n orLcaq-s for 2019 and 2..021 April 23,2020 Appraisal Company of Key West Page 32 Packet Pg. 2926 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL MARKETING TIME Based on sales of comparable commercial properties in the subjects' market area,we have estimated a 6 to 18 months. The market time estimate is based on interviews of real estate agents and market time information for the comparable properties. At this time, the local industrial market has not been : significantly negatively affected by the COVID-19 Pandemic. r- 0 EXPOSURE TIME 0 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 times would be equal to the 0 marketing time, based on a listing price within 5.0% of my appraised value. PROPERTY DATA DESCRIPTION The subject property consists of one, vacant, Industrial zoned tract, with 194.07 linear feet along the 2 easterly side of"Conch Circle"and extends approximately 283.11 linear feet easterly.Access to the site e W is from the gravel road "Conch Circle" which connects to the secondary, gravel road, locally called Industrial Drive,northerly from the Overseas Highway known as the US 1 Highway at approximately Mile Marker 9. A survey was not available for the subject tract. According to the Monroe County Property Appraiser's Office, the subject site contains 54,943 square feet or 1.26 acres of upland area. Any deviations from these boundary dimensions and site size could result in a change in value Aerial Map, Aerial Plat Map and Proposed Site Plan for the subject are on the following pages. N N N CD Appraisal Company of Key West Page 33 Packet Pg. 2927 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL ROCKLAND PLAT MAP �a LLC- IS $. czmao.aooao-t I 1 � Cb U CL - 1R1aYR.mIX.ltOda � .� :226sflmAm, I , } =n w ' e3zn o.uw ios R'"'-,mo,os n N m / alb a / e �.. — -- - f t8 Appraisal Company of Key West Page 34 Packet Pg. 2928 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL PROPOSED SITE PLAN 35, HS � f w 4 i u .. E t II t it CL 3 L , g€ I VVV ` [ o d Y � 1� � � 3 a 54 •� p -➢ s F P -« C i cV 1 r; t r xfd N C E — � Appraisal Company of Key West Page 35 Packet Pg. 2929 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL AERIAL PLAT MAP ublic.net`y" Monroe County, FL O � I Overview � 175 x1 h Easem e O R 2745-1 d O �sfi'1,<<,Isli�urt�t Legend Centerline Easements O W` �1 Hooks (U +� [� n 1 Ch 0304 i , 40VQ.V0 �h rwf LotLines ,� K" — Road Center Rightsof Way t� Shoreline CL f i � h �lpe 1 Iy pdhl —v Condo Building �t Key Names Subdivisions Parcels Parcels a r ' ' h 0 g. 34'ft e. to .._. ` 'sS"7'"i E Parcel ID 00122080-000304 Alternate ID 9085076 Owner Address SJKINVESTMENTLLC Sec/Twp/Rng 21/67/26 Class VACANT INDUSTRIAL 615B United St r Property Address VACANT LAND Key West,FL33040 ROCKLAND KEY District 100B Brief Tax 216726 ROCKLAND KEY PT GOVTLOT7(A/K/A PT PARCEL GG)OR1719-2225127 OR1719-2228/30/AFF OR1719-2231/32 '— Description OR1719-2236/AFFOR1719-2237/39OR1719-2276/77REL/EOR2189-1785/87 CCD V (Nate:Notto be used on legal documents) N Date created:1/29/2021 Last Data Uploaded:1/29/20214:12:42AM Developed by4.1 Schneider GE©SPATIAL Appraisal Company ofKey West Page 36 Packet Pg. 2930 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL 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. If and/or when updated surveys are made available and if any discrepancies are noted due to easements and/or encroachments,I reserve the right to change the final indicated value herein. According Mr. Jim Anderson of the Tallahassee,Florida Division of the United States Census Bureau, Monroe County is not divided into Census Tracts; but rather `Block Numbering Areas". The subject property is located within Block Number 9717. 0 The subj ectparcel is located within a Special Flood Hazard Area,specifically Flood Zone AE(Elevation 10 Feet), according to Flood Insurance Rate Map, Monroe County, Map Number Map No.: 0 0. 12087C1533K, dated February 18, 2005. Monroe County participates in a National Flood Insurance a. Program and is covered by a regular program.The proposed construction will be required to meet current W FEMA elevation requirements. The Flood Maps are as follows. 2 76 T cv cv cv cv Appraisal Company ofKey West Page 37 Packet Pg. 2931 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL COUNTY FLOOD MAP now O 0 iiCc .a r f 0 IWO loop C g "s a i E fyt� W w°�' � a��,ra• ���, ,.� r .� � �'�{ 1Pt ���1t t�' � 1 '` �`P t8 rf id p t E 1 e ,: 1 filrs� i` i fil CE C CV N ltf vP" ,�Yi1 i CV N `r t 1*� 1 ti'i' ar�`n - i� a`` 1zt 1fi A S4•� f Appraisal Company of Key West Page 38 Packet Pg. 2932 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL FEMA FLOOD MAP National Flood Hazard Layer FIRMette EEMA Legend €S AZARD AREAS f� xxa € AAif Cb � ` r-' ka\�� �` to �� s�>>� �A�i€y� +' 'V. `��i areiEo�Hazaea n�rvm€w4dR-d- Lo, v�rear Ei ro€ i OYHERAnEA6 aie �u I[It 1 t CM1a L 5 5 a€ A sraUUUREcrmEr€s of o F i �. E t `LTYgITNINC ORPE4�1�4TET?ARE�S fi' E�F�d EI k-(BFE) ", U� E,w a n �� t��}!4 FWoKs xrd ro n F = r t > a iio �q } pFl 10 Pell nk �- �'"� �, — 11 2E #w 1 {14,€`i-l', A s� _ ?+ ` ,'. ` •• ° ;,.,.� Rmne M � ap msgestur 1:6M0 {7 2Pf1 GO{l t;g4C5 i,vpp 20Pf1 reR�il+9n pa*pusms !�. 63senf3p GSGS NalibrFer Map C1rtA O-gHry:il..ref@—Eln»t r.3Dzfl N 1 N CD CD u Appraisal Company of Key West Page 39 Packet Pg. 2933 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL HIGHEST AND BEST USE "Highest and Best Use" is defined as: The reasonably probable use of a property that results in the highest value. The four criteria the highest and best use must meet are legal permissibility,physical possibility, : financial feasibility, and maximum productivity.' r- 0 In both cases, land as though vacant and as improved, must satisfy the following four r- criteria: c 1. Legally permissible — uses allowed under the zoning laws and other legal c restrictions that apply to the site 2. Physically possible—uses the site can physically accommodate 3. Financially feasible—uses that will produce a positive return 4. Maximally productive—the use that produces the highest net return. 2 Tests of legal permissibility and physical possibility must be applied before the remaining tests of financial feasibility and maximal productivity. A use may be financially feasible, but this is irrelevant if it is physically impossible or legally prohibited.z T The Highest and Best Use of the land as if vacant and available for use may be different from they Highest and Best Use of the improved property. This is true when the improvements do not constitute an appropriate use. The existing use will continue unless and until land value in its Highest and Best Use exceeds the sum value of the entire property in its existing use and the cost to remove the improvements. Since the appraisal of the subject property is based on a particular premise of use, the Highest and Best Use analysis determines just what this premise of use should be. A Highest and Best Use analysis consists of considering the Highest and Best Use of a property under two assumptions: (1)with a vacant and available site and(2)with the property as improved. These two assumptions on Highest and Best Use are correlated into one final estimate of Highest and Best Use. e( 1 The Dictionary of Real Estate Appraisal,6th ed. Chicago:Appraisal Institute,2015,p. 109 2 The Appraisal of Real Estate, 14th ed. Chicago:Appraisal Institute,2013,p.335 Appraisal Company of Key West Page 40 Packet Pg. 2934 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL "As If Vacant": The physical aspects of the land impose the first constraints on any possible use of the property. The subject site is vacant site that is rectangular in shape,with access from a gravel road and no apparent hindrances noted for industrial use development. Land values of Industrial zoned tracts have dramatically increased in recent history due to the lack of similarly zoned properties and the on-going redevelopment in the Lower Florida Keys. Furthermore, : I zoned lots are selling at a premium as they are not subject to NROGO, commercial rate of growth ordinance restrictions. 0 "As Improved": This analysis is not applicable as the subject property is vacant land as the existing construction equipment and dilapidate portable office are personal property and not included within the scope of this assignment. c 0 2 76 T N N N N Appraisal Company of Key West Page 41 Packet Pg. 2935 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL SCOPE OF WORK APPRAISAL DEVELOPMENT AND REPORTING PROCESS There are three typical approaches to value to consider in each appraisal assignment. The three traditional approaches to value are the Cost Approach,the Sales Comparison Approach and the Income (Direct Capitalization and/or Discounted Cash Flow)Approach. The three approaches to value are not : always applicable to the assignment;however,the three approaches to value are always considered. The 2 appraisers performed a summary appraisal report, as defined by the Uniform Standards of Professional Practice. 0 Data relevant to each of the approaches is developed and analyzed to produce a value from each of the approaches. Each of the approaches utilizes data that is gathered from the market place. Items of both 0 similarity and dissimilarity in comparable properties are analyzed and adjustments are made for the 0 differences. 0 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 2 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 ru market was researched and analyzed. The appraiser describes the building improvements in detail, if applicable;these descriptions are based on a walk through and/or plans and specifications, if available. The appraiser is not a contractor nor a structural engineer; therefore, structure soundness or damage cannot be warranted. The appraiser will note any apparent or potential problems such as deferred maintenance, water damage or spalling. 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, Loopnet and CRSData.com, FlexMLS.com, a computerized MLS (Multiple Listing System). All sources use data from the Monroe County Property Appraiser's Office, as well as, from the public records. Additional data sources include: Loop Net, a National Multiple Listing Service. Real estate agents in the market area are interviewed for the most current information on sales and listings. All of the information is Appraisal Company of Key West Page 42 Packet Pg. 2936 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL analyzed in preparing the report and is utilized in supporting the indicated value. In the case at hand, the subject property is a vacant Industrial tract. As a result, the Cost Approach is not applicable as there are no building site improvements. The few dilapidated structures have no contributory value.The Sales Comparison Approach was totally weighted herein.The Income Approach is not applicable, as vacant tracts are not leased long-term, but developed. .� A brief description of each of the approaches to value follows: THE COST APPROACH The Cost Approach is determined by taking the value of the land and adding to it the depreciated value 0 of the present improvements. A separate land analysis is done to determine the value of the land. This a. approach is based on the Principle of Substitution, which states that a purchaser will not pay more for W an existing property than the cost to reproduce it, in a similar area, assuming that it could be reproduced - without delay. The subject is 1.26 acres of Industrial zoned vacant land on Rockland Key. As a result, 0) the Cost Approach is not applicable as there are no significant building nor site improvements. THE INCOME APPROACH The Income Approach to value presumes that no prudent buyer will pay more for the subject property ru than the capitalized rental value attainable through ownership of the property. The buyer will only bed willing to pay the present value of what he/she consider those future benefits to be. This approach is considered to be the strongest indicator of current fair market value when the property is purchased as an income-producing property having a reliable historical cashflow. Due to the subject being a vacant industrial tract,the Income Approach was not applicable as similar properties are mostly owner-occupied and not leased long-term, but eventually developed. N THE SALES COMPARISON APPROACH N This approach is also based on the Principle of Substitution. When applied, it states that when similar (comparable) properties in similar locations are adjusted for any dissimilarities, the value from these comparable properties can indicate an estimate of value.This approach is applicable as there were recent similar comparable sales available for analysis construction. As a result, this approach was weighted totally herein. Appraisal Company of Key West Page 43 Packet Pg. 2937 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL SALES COMPARISON APPROACH The Sales Comparison Approach is an appraisal technique in which the market value estimate is based on the prices paid in actual market transactions and current listings. It is a process of correlation and analysis of similar properties that recently sold in the subject's market area. .� This approach is based upon the principal of substitution; that is, when a property is placed in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no costly delays in making the substitution. The Sales Comparison Approach bases its value indication on sales of other similar properties in the area. These sales are analyzed and compared to the subject property. The Sales Comparison Approach bases its value indication on recent land sales that 0 0. are pertinent to the value of the subject property and was tom weighted for the final valuation. a. A thorough search was conducted for recent sales of similar Industrial properties.A survey of the market area resulted inland sales which were located within the subject's market area. No personal property nor equipment has been included in the valuation herein. T N N N N Appraisal Company of Key West Page 44 Packet Pg. 2938 (puejMciloU uo Apedoid dweNjo asqe3ind) MMOV- ' s' a w L - -L :4u9wg3e44 0 C4 04 a� a 4.1 ac a� a NBC=r + I}�i It •tS�.tgii sq �Io I�I�I� Z a vMi v : �INIul o v �o a � � { +� i�1>rr alalomilol� ry m a o n ololol�I� o � cc3initials o � ct O -- 00 O k M R3 � ti � + TOW W. to EEn+ ' fli fli�i flies u"s uNs us u00s � O V + r+ (r. 'f{t1 +i++. I o o o o O �qp t' s,+�(oIoRR g 8 Rif.[�I�I�I �E ' H � EEN tsw >; o C+ o N CZ O t z �Jl aj o o N o z V] � CIS N N 8 Z N CH hf 4�l) ly O + u t W I-�o I 141 Ill 1 t! a + 4 ++++ + }+ 8 1.1 1.1 t0 NISaIW � F, v �'+ aITAIU c O 1'°I8IxIa4.1 O IyI�I�Iw w N H v v c� t tiit+ st I�I�I�I�G � � c F� N MOM, ,+ -I i O CYO r!1� Nstt+, )gIoINI U AV . 4 lC' + i �+ INI nlvly, p U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL LAND SALES MAP r Tr,rh 0 Key Midd1: 0 m a I: s :� d ey .k%3.I I-) C Cu djQ r'U� ', ,,RSr7r I'.'3 Key E D 10 l 0 (B Big, 2- CL 17Yd IVA ,d�ocr� i I ® k N Y I� t w r N N r N CD U Appraisal Company of Key West Page 46 Packet Pg. 2940 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL LAND SALE NO. 1 0 s � z �j 0 Vacant Industrial&One-Story CBS&Pre- PROPERTY TYPE: Stressed Concrete ZONING: I(Industrial) 0 0) PARCEL NUMBER: 00122070-000203 ALT.KEY#: 9104573 O PROPERTY LOCATION:New Parcel 3,Part of 111 Overseas Hwy., Mile Marker: 9 :5 Rockland Key C' LEGAL DESCRIPTION:Part of Gov't Lot 7(a/k/a Pt Parcel GG),Rockland Key SALE DATE: 11/05/20 DAYS ON MARKET:N/A SALES PRICE: $2,500,000 LISTING PRICE: N/A RATIO:N/A Less:Contrib.Value of Bldgs& N Site Improvements: ($1,177,206) Adjusted Sales Price: $1,322,794 >� GRANTOR:Rockland Investment Corp.,Inc. GRANTEE: Star of the Sea Foundation,Inc. r N DOCUMENT TYPE: Warranty Deed OFFICIAL RECORD BOOK/PAGE: 3056/1207 tV r� CONDITION OF SALE: Ar 's Length VERIFICATION:Public Records,Seller,Buyer,Closing CD m Agent&Surveyor by JW tV FINANCING: Conventional SPECIAL TERMS:N/A E YEAR: 2020 ASSESSMENT: Split-Out of Larger TOTAL TAX BURDEN: N/A O TOTAL AREA SQ.FT.: 61,608 ACRES: 1.41 DOLLAR/SQ.FT.: $21.47 HIGHWAY FRONTAGE FT.: Partial $/FRONT.FT.:N/A DOLLAR/ACRE: $938,152 COMMENTS: This property consists of a total2.50 acres of Industrial zoned land in Rockland Key. However,there is a non-exclusive ingress/egress easement road and environmentally sensitive area onthe west part of the parcel. According to the surveyor,the upland or useable area is 1.41 acres. The site is improved with a 13,656 square foot CBS&pre-stressed concrete warehouse/service facility.Based on my appraisal at the time of sale,I estimated that the building and site improvements had$1,177,206 of contributory value. The depreciated value of the building and site improvements were deducted in order to arrive at an extracted land value. This'New Parcel 43"is located proximate to the subject. Appraisal Company of Key West Page 47 Packet Pg. 2941 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL LAND SALE NO. 2 uµ s � PROPERTY TYPE: Vacant Industrial&One-Story Metal&CBS ZONING: I(Industrial) PARCEL NUMBER: 00122070-000202 ALT.KEY th 9104551 0 PROPERTY LOCATION: Broward Parcel,Part of III Overseas Hwy., Mile Marker: 9 Rockland Key LEGAL DESCRIPTION:Part of Gov't Lot 7,Rockland Key 2 SALE DATE: 07/17/20 DAYS ON MARKET:N/A CL SALES PRICE: $3,200,000 LISTING PRICE:N/A RATIO: N/A Less:Contrib.Value of Bides& C( Site Improvements: 200 000 ' Adjusted Sales Price: $3,000,000 GRANTOR:Rockland Investment Corp.,Inc.($3,170,200)&SJK Investment,LLC($29,800) GRANTEE: Key West Property Holdings,LLC 0) DOCUMENT TYPE: Special Warranty Deed OFFICIAL RECORD BOOK/PAGE: 3033/ 524&532 T" tV CONDITION OF SALE: Arm's Length VERIFICATION:Public Records,Sellers,Closing Agent& C 4 Surveyor by JW r N FINANCING: Conventional SPECIAL TERMS:N/A tCD V YEAR: 2020 ASSESSMENT: Split-Out of Larger TOTAL TAX BURDEN: N/A TOTAL AREA SQ.FT.: 104,555 ACRES: 2.40 DOLLAR/SQ.FT.: $28.69 HIGHWAY FRONTAGE FT.:Partial $/FRONT.FT.:N/A DOLLAR/ACRE: $1,250,000 .N COMMENTS: This property consists of a total 3.0 acres of Industrial zoned land in Rockland Key. However,there is a non-exclusive ingress/egress easement road and environmentally sensitive area on the west part of the parcel. According to the surveyor,the upland or useable area is 2.4 acres. The site is improved with a 5,263 square foot CBS&metal frame workshop building. The seller estimated that the building had$200,000 of contributory value;however,the buyer plans on demolishing the older structure. This buyer is planning on building a self-storage facility on site.The depreciated value of the building was deducted in order to arrive at an extracted land value. This'Broward Parcel"is located adjacent to the subject. Appraisal Company of Key West Page 48 Packet Pg. 2942 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL LAND SALE NO. 3 j` t 111��514 V ry li q V PROPERTY TYPE: Vacant Commercial Land&2-Story Office ZONING: SC(Suburban Commercial) 0 PARCEL NUMBER:Numerous 15 Lots ALT.KEYth Numerous 15 Lots w PROPERTY LOCATION: Stock Island Mile Marker: 4.75 t8 LEGAL DESCRIPTION: Lots 1-16,Sunshine Sub No-2,P132-151 Stock Island,Monroe County Public Records CL W SALE DATE: 08/29/17 DAYS ON MARKET: N/A SALES PRICE: $3,150,000 LISTING PRICE:N/A RATIO: N/A Less:Contrib.Value of Bldgs& Site Improvements: $50( 0,000) Adjusted Sales Price: $2,650,000 GRANTOR: Cotton of Key West Limited Partnership GRANTEE:Monroe County School Board r tV DOCUMENT TYPE: Warranty Deed OFFICIAL RECORD BOOK/PAGE: 2871/393 tV r CONDITION OF SALE:Arm's Length VERIFICATION:Public Records,Listing Broker,Appraisal CD by JW tV FINANCING: Cash SPECIAL TERMS:N/A YEAR: 2016 ASSESSMENT: $896,131 TOTAL TAX BURDEN: $8,733.41 TOTAL AREA SQ.FT.: 84,000 ACRES: 1.93 DOLLAR/SQ.FT.: $31.55 HIGHWAY FRONTAGE FT.:No $/FRONT.FT.: N/A DOLLAR/ACRE: $1,632,124 COMMENTS: This property consists 1.93 acres,an entire city block on Stock Island,just out of the City Limits of Key West. The site has 1,240 linear feet of frontage along four streets. Most of the property(87.5%)is vacant,commercial land,while a 10,500 square foot parcel is improved with a two-story CBS/masonry office structure containing 4,133 square feet of gross building area. The depreciated value ofthe office building and site improvements were deducted in order to arrive at an extracted land value. There is a small shed that was not considered to have any contributory value. The property was appraised by my office at the time of sale. Appraisal Company of Key West Page 49 Packet Pg. 2943 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL LAND SALE NO. 4 t 4 r � w � PROPERTY TYPE: Vacant Commercial Land&Metal ZONING: SC(Suburban Commercial) Free Span Warehouse/Service Bldg. PARCEL NUMBER:Numerous 7 Lots ALT.KEY th Numerous 7 Lots PROPERTY LOCATION: Big Coppitt Key Mile Marker: 10.0 y LEGAL DESCRIPTION: Lot 1,Part of Lot 2,Lots 3 through 7,Coppitt Sub Amended Plat P134-50,Big Coppitt Key,Monroe 2 County Public Records CL SALE DATE: 08/28/17 DAYS ON MARKET:N/A SALES PRICE: $1,250,000 LISTING PRICE:N/A RATIO: N/A Less:Contrib.Value of Bid,gs& Site Improvements&Demo. : $15( 0,000) y Adjusted Sales Price: $1,100,000 GRANTOR: Woodward Properties GRANTEE:Mama's Rock and Sand,Inc. <U r DOCUMENT TYPE: Warranty Deed OFFICIAL RECORD BOOK/PAGE: 2871/1968 tV N CD CONDITION OF SALE: Arm's Length VERIFICATION:Public Records,Listing/Selling Broker, r Lender,Prior Appraisals by JW tCD V N FINANCING: Conventional SPECIAL TERMS:N/A YEAR: 2016 ASSESSMENT: $598,141 TOTAL TAX BURDEN: $5,177.56 TOTAL AREA SQ.FT.: 45,503 ACRES: 1.04 DOLLAR/SQ.FT.: $24.17 HIGHWAY FRONTAGE FT.: No $/FRONT.FT.: N/A DOLLAR/ACRE: $1,057,692 COMMENTS: This property consists of 1.04 acres ofmostly vacant commercial land used for open storage and boat trailer repairs. The tract includes seven contiguous lots with highway frontage on Big Coppitt Key.The property is improved with a one-story metal free span warehouse/service structure containing 2,200 square feet of gross building area. The depreciated value of the warehouse building and site improvements($170,000)were deducted in order to arrive at an extracted land value. There is a small shed and commercial canopy that needs to be demolished and removed. The actual demolition and haul away bid($20,000)was added to estimate the vacant land value. The property was appraised by my office in the past and at the time of sale. Appraisal Company of Key West Page 50 Packet Pg. 2944 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL LAND SALE NO. 5 O O 'H real W PROPERTY TYPE:Vacant Industrial/Mixed Use ZONING:I changed to MU,Monroe County 0 PARCEL NUMBERS:00120940-000201,-000100,-000302 ALT.KEY#:9104109,8571011,9104108 a) PROPERTY LOCATION:30 Puerta Drive,Big Coppitt Key,FL 33040 Mile Marker:9.5 t8 U LEGAL DESCRIPTION:Lengthy Metes and Bounds Description(Parcels 9,10&11) CL SALE DATE: 04/20/17 DAYS ON MARKET:N/A TOTAL SALES PRICE: $9,200,000 LISTING PRICE:N/A RATIO:N/A ($1,950,000) $7,250,000 GRANTOR: Toppino Land Trust,LLC&Edward Toppino Sr.Land Trust GRANTEE: Quarry Partners,LLC DOCUMENT TYPE: Warranty Deed OFFICIAL RECORD BOOK/PAGE: 2850/1615-1621 0) CONDITION OF SALE:Ann's Length VERIFICATION:Public Records,Closing Agent&Attorney, T_ N N FINANCING: Conventional SPECIAL TERMS:N/A r N CD YEAR: 2016 ASSESSMENT: $1,338,013 TOTAL TAX BURDEN: $11,151.57 Cy TOTAL AREA SQ.FT.:643,381 ACRES: 14.77 DOLLAR/SQ.FT.: $11.27 di HIGHWAY FRONTAGE FT.:N/A $/FRONT.FT.:N/A DOLLAR/ACRE: $490,860.00 COMMENTS: This property consist ofthree vacant,contiguous tracts,kwon as Parcels 9,10&11 located on the westerly end ofBig Coppitt U Key that overseas a large former borrow pit or lake that also fronts along Rockland Key. The entire parcel contains 14.77 acres and has been rezoned from Industrial to Mixed-Use in order to allow for development of 208 affordable housing units(Low Income Housing Tax Credit). I appraised the property for the Estate(s)prior to the sale to the developer. The seller paid approximately$1,950,000 towards obtaining the ROGOs for affordable housing use,plus paying for the required access road and infrastructure. Asa result,the net price of$7,250,000 represents the vacant land without entitlements and required access. Appraisal Company of Key West Page 51 Packet Pg. 2945 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL Quantitative Adjustments to Comparable Sales: The five most recent and similar comparable sales were analyzed in order to make comparisons to the subject property. Adjustments are required for individual physical and locational characteristics which typically affect value. Each characteristic is detailed below with an explanation of adjustments which were made to the comparable sales. Property Rights: All of the comparables sold Fee Simple. The subject is not encumbered by any long-term leases. 0 Financing: All of the comparable sales were considered cash equivalent, either cash, conventional financing or PMM (owner financing) at market rates. Thus, none of the comparables required adjustment for 0 financing. a Market Conditions: I considered this market segment to have stabilized in 2011 after the recession with steady appreciation 0) since 2016. I analyzed the sales/resales of the comparable land sales over time to estimate a reliable 2 appreciation rate. c. Based on the sales/resales market data, I projected a conservative annual appreciation rate of 3%up to one year prior to the effective valuation date. The COWD-19 Pandemic does not appear to have adversely affected Industrial Land, as demand has rebounded due to busy construction and renovation ru market. Conditions of Sale: All of the comparables were arm's length transactions; thus no adjustments for condition of sale was warranted herein. N Land Size: The unit of measure is price per square foot. Typically,the larger the site,the lower the price per square foot(diminishing returns),which is supported by market data. The comparables larger than the subject size were positively adjusted and vice versa. Highway Frontage: The subject is located at the highway. The sale with superior highway or thoroughfare frontage were negatively adjusted. Water Frontage: The subjectproperty is dry upland area. Sales 1 and 2 have frontage with mangrove and environmental sensitive area; however, it is shallow and not boatable. Sales 4 and 5 are superior;water frontage and views; thus, negatively adjusted herein. Appraisal Company of Key West Page 52 Packet Pg. 2946 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL Overall Location: Location adjustments were made for superior or inferior neighborhoods based on paired sales between the comparables. The subject is located on in the Industrial area of Rockland Key. Sales 5 was considered to be slightly inferior overall. Sale Nos. 3 and 4 are located in superior areas overall due historically having higher land values. Sales 1 and 2 are the most similar to the subject in location. .� Entitlements/Utility: The subject has redevelopment rights for commercial floor area or NROGO due to its location within the Industrial Zoning District. All of the subject comparables have superior commercial floor area rights or existing entitlements; thus, they were not adjusted herein. Zoning: The subject is zoned I,Industrial. Comparables 1 and 2 are located in the same zoning district. 0 0. Sales 3 through 5 are located in superior districts; thus, they are negatively adjusted herein. a. 0 W 2 T) N N N CD Appraisal Company of Key West Page 53 Packet Pg. 2947 (pueIM3oU uo Apedoid dwoMjo asqe3ind) MMOV- ' s' a w LZ-ZoqZOZ :4u9wq3e44V co v o Cb a d U I I ICI I I I I I I I � I I I I I I I I I IoI E I ICI I I I I I � I I I I I I I CW t} „ •- oI I' II. I�IIaI °I I I �I I I c �I�I�I oI I I� e I4 al I IUI NISI I ZI I ICI I I I I Ib I I I I I I I , CW I I IoI I I I I I I I I I I I I I I I °IoIUI el I I aI oI I I I I Iti I I I I I I I t„J} { ss}c' � O � � NIcnI �I�I a"iE�IcnI•`''I �.'I�I�IU rI I I IV �ol,°��,I,°��,I �� j �� j�°�i, °v� � o oI� �A }r y N ds olwl UII'-o -II I �I I I II,�I�I ° I I IUI� aI I I �I I I I I I I Ib I I I I I I I°II'� I I I I I I I O ail IwI I�I¢I IZI I I I I I I I I I I I I I I I I I I I IDI I I I I I I I Id' I I I I I I I 07 I °I--IUI I I I °I I I I I I I I I I I I I I I N � x g o of al'54I ol ICI i 91 � lI l � l aI I I I I I I I I a I °JI�I. I �I�IIIIII'" N �I� l�I °JIUI�I I I ICI I I I b, I I I I I I I I I I I I-pI •ti �� i�l fn .ti, as S 07 N p > ,� II II II II II II II II II II II o ,�ct V k V V 69 w U N r21 at it'; N b M Fi bD M Fi bD s4 N X Incn W Q In W i -.y k �r {tA, G P P ,g °J cn cn ;; f�' o �. w o o � f�' o .� w o o � •o ^d •o ti cUwN ¢ a U x cUwN a� U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL Value for the Subject Parcel Conclusion: In order to estimate the value of the subject property,I analyzed recent sales of comparable commercial and Industrial land.On the preceding page,a detailed adjustment grid is presented for the subj ectparcels. The comparables indicate an adjusted value per square foot from $19.55 to $32.99 per square foot with a mean at$24.41 and a median at$21.47. .� Based on analysis and adjustments to the individual comparables, Sales 1 and 2 were weighted the heaviest as they were the most similar and most recent. The weighted average of the comparables equaled $25.00 (rounded)per square foot. The value calculations are noted as follows. 0 $25.00 X 54,943 $1,373,575 Equals Land Value: $1,370,000 E 0 Land Value of the Subject Property via the Sales Comparison Approach as of February 10,2021 W (Rounded) Is: . $1,370,000 2 T cv cv cv cv Appraisal Company of Key West Page 55 Packet Pg. 2949 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL RECONCILIATION AND FINAL ESTIMATE OF VALUE The following Fee Simple value indications have been developed in my analysis of Market Data. Reconciliation of Values 0 Subject Prove'rt� Tract 22(Split-out of Parcel GG),Park of 121 Overseas Highway Rockland Key,FL 33040 0 "As Is"Fee Simple Valuation Method; Market Value Cost Approach: Not Applicable Income Approach: Not Applicable Sales Comparison Approach: $1,370,000 As Is" Market Value, as of February 10, 2021 (Rounded): $1,370,000 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 ru Approach was considered, but not applied due the subject property being a vacant tract. The small dilapidated structures and site improvements have no significant contributory value. The Income 0. Approach was considered,but also not applied. The subject property has been a vacant large tract with 0 no long-term leases.A buyerwould likelypurchase theproperty for redevelopment into a lightindustrial use. Therefore, the Income Approach was considered not applicable in my valuation. The Sales Comparison Approach was considered due to the availability of relevant land sales within the immediate market area. The Sales Comparison Approach was weighted totally in the valuation. N Based on analysis of market data, inspection, and research, it is my opinion that the "As Is" Market Value ofSubject Property,commonly known as Tract 22(Split-out of Parcel GG),part of 121 Overseas E Highway, Rockland Key, Monroe County, Florida subject to definitions, assumptions and limiting conditions, as of February 10, 2021, is: ONE MILLION THREE HUNDRED SEVENTY THOUSAND DOLLARS ( $ 1,370,000 ) Appraisal Company of Key West Page 56 Packet Pg. 2950 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL CERTIFICATION OF VALUE 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,FLORIDA 33037 0 I have personally examined the following property: 0 Commonly Known as: Tract 22, Part of 121 Overseas Highway Rockland Key, Florida 33040 2 and based on analysis of market data, inspection, and research, it is my opinion that the "As Is"Market :5 CL Value of above Subject Property, subject to definitions, assumptions and limiting conditions, as of February 10, 2021, is: ONE MILLION THREE HUNDRED SEVENTY THOUSAND DOLLARS T ( $ 1,370,000 ) I ADDITIONALLY CERTIFY that, to the best of my knowledge and belief: o The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with,my interpretation of the guidelines and recommendations set forth in The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). cv o The statements of fact contained in this report are true and correct. E 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 I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. Appraisal Company of Key West Page 57 Packet Pg. 2951 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL o My engagement in this assignment was not contingent upon developing or reporting predetermined results. o My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or a direction in value that favors the cause of the client,the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a : subsequent event directly related to the intended use of this appraisal_ r_ 0 o My analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. 0 o James E.Wilson has made a personal inspection of the property that is the subject of this report. 0 o No one has provided significant professional assistance to the person signing this report. w 0 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. a. 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 �t Standards of Professional Appraisal Practice. T o No other appraisals, feasibility analysis, nor professional services were rendered by my office in connection to the subject property over the three years prior to the effective valuation date 0 with this report. cv o James E.Wilson,MAI,MRICS, has completed the Standards and Ethics education requirement N of the Appraisal Institute for Members. N APPRAISAL COMPANY OF KEY WEST E James E. Wilson, MAI, MRICS, President State-certified general real estate appraiser RZ2164 Appraisal Company of Key West Page 58 Packet Pg. 2952 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL c c ADDENDA 0 w 2 T) N N N CD Appraisal Company of Key West Page 59 Packet Pg. 2953 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL PROFESSIONAL QUALIFICATIONS JAMES E. WILSON, III, MAI, 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 Pompano Beach,Florida. He appraised awide 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 ro_ects, including highest and best use studies, complex property appraisals, and wetland and environmentally sensitive valuations p l g g p p p Y pp Y � 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 Member of the Appraisal Institute,MAI..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 E 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. 0 W Education: SOUTH BROWARD HIGH SCHOOL,Hollywood,FL, 1987. UNIVERSITY OF FLORIDA,Gainesville,Florida-Bachelor of Science in Business Administration- CL W Major in Economics, 1987-1991. APPRAISAL INSTITUTE 0 Appraisal Reporting of Complex Residential Properties,October, 1993. , Persuasive Style in Narrative Appraisal Reports,May, 1994. 6 ACE 1779-"Special Purpose Properties-The Challenge of Real Estate Appraising in Limited Markets", T�) September, 1996. 410 Standards of Professional Practice,Part A(USPAP),8/97. e( 420 Standards of Professional Practice,Part B,August, 1997. 520 Highest&Best Use and Market Analysis,October, 1997. E Non-Conforming Uses Seminar,January, 1998. 510 Advanced Income Capitalization,May, 1998. j 530 Advanced Sales Comparison&Cost Approach,May, 1998. N 540 Report Writing&Valuation Analysis,August, 1998. 550 Advanced Applications,February, 1999. CD Regression Analysis in Appraisal Practice:Concepts&Applications,Seminar,March,2000. General Demonstration Appraisal Report Writing Seminar,March,2000. 800 Separating Personal&Real Property from Intangible Business Assets,March,2002. Successful Completion of the General Comprehensive Examination for the Appraisal Institute Uniform Appraisal Standards for Federal Land Requisitions,March,2007 General Demonstration Appraisal Report Writing Seminar,August,2007 Valuation of Conservation Easements,January,2008. Appraising Distressed Commercial Real Estate,June,2009 Oil Spills and Property Values,Webinar,August,2010 Business Practices and Ethics,September,2010 A Debate of the Allocation of Hotel Total Assets,October 26,2010 Appraisal Institute Update,May 19,2011 Appraisal Company of Key West Page 60 Packet Pg. 2954 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL Professional Oualifications 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 p: 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 General Demonstration Report Writing,Online,October 28,2019 0 Valuation of Donated Real Estate Including Conservation Easements,Virtual Classroom,FL June 25,2020 E GOLD COAST SCHOOL OF REAL ESTATE c Real Estate Principles,Practices,and Law-FREC Course I,May, 1992. W Salesman Post-License Program,February, 1994. Mortgage Broker,Exam-Prep Program,September, 1992. 2 AB I-Appraisal Board-Fundamentals of R.E.Appraising,5/92. :5 AB II-Appr.Board-Appraising Resid.&Income Properties,2/94. CL 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. y National USPAP Update Course,June 2006 Techniques of Income Property Appraisal,June 2006 e( McKISSOCK DATA SYSTEMS Automated Valuation Models, October,2000. E 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. N Appraising for the Secondary Market,October,2004. N Appraising High-Value Residential Properties,October,2004. .. Florida Laws and Regulations,October,2004. Limited Appraisals and the Scope of Work Decision,October,2004. National USPAP Equivalent,October,2004. Florida Laws and Regulations,September 2006. Disclosures and Disclaimer,September,2006. Appraisal Trends,September 2006. National USPAP Update Equivalent(2008-2009),November,2008. Introduction to Expert Witness Testimony,November 2008. Mortgage Fraud-Protect Yourself,November,2008. Florida Appraisal Supervisor-Trainee Roles and Relationships,November,2008. Florida Laws and Regulations,November,2008. National USPAP Update Equivalent(2010-2011),August,2010. Appraisal Company of Key West Page 61 Packet Pg. 2955 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL Professional Oualifications of James E. Wilson, III (Continued) Risky Business:Ways to Minimize Liability,August,2010. Florida Laws and Regulations,August 2010. Florida Apprisal Supervisor-Trainee Roles and Relationships,August,2010. The Changing World of FHA Appraising,August,2010. 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 0 2016-201 7-Hour National USPAP Update Course,November,2016 �1= 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 0 Appraising Small Apartment Properties,November 2018 0. Appraisal of Land Subject to Ground Leases,November 2018 0' The Basics of Expert Witness for Commercial Appraisers,November 2018 2020-2021 7-Hour USPAP Update Course for Non-Residential Real Property,November 2020 Essential Elements of Disclosures and Disclaimers,November 2020 0 Evaluations,Desktops,and other Limited Scope Appraisals,November 2020 W Florida Appraisal Laws and Regulations,November 2020 That's a Violation,November 2020 2 VALUE INFORMATION TECHNOLOGY,INC. CL "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, State of Florida;Registration No.RZ 2164. Licensed Real Estate Salesperson,as designated by the Department of Professional Regulation,State of E Florida;License No.SL 0589552(currently inactive). Professional N Associations: Key West Board of Realtors MAI,Member of the Appraisal Institute,March,2020 Member#224192 Member of RICS(Royal Institute of Chartered Surveyors),October,2010 Member41299389 CD N 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, 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 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, Appraisal Company of Key West Page 62 Packet Pg. 2956 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL 1994. 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 .F 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 0 APPRAISER CERTIFICATION 0 0 Ron Desands,Governor Halsey 18esheam 5ecre€ery N y5 dbpr � fi$ f STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAV APPRAISER'HERE N ISCERTIFIED UNDER THE � PROVISIt3t " N, RT 47 FE kj,()Ar STATUTES T) s� r � NAMES � W ' 4 PRTII f� ATE 01 e I EY +"ES f FL0 cv N N I LICENE_FIl9M� R k _ � 1��� RZ296�1 �,•�I tV EXPIRATION DATE. NOVEMBER 30,2022 Always verify licenses online at MyFloridabcensexom Do not alter this document in any form. � .N This is your license.It is unlawful for anyone other than the licensee to use this document. Appraisal Company of Key West Page 63 Packet Pg. 2957 U.2.b Appraisal Report Tract 22, Part of 121 Overseas Highway, Rockland Key, FL c c c 0 w 2 T) cv cv cv CD cv u Appraisal Company of Key West Page 64 Packet Pg. 2958 U.2.c SLACK JOHNSTON MAGEI` H IMER REAL ESTATE APPRAISERS&CONSULTANTS 7245 S.W. 87 AVENUE,SUITE 300 MIAMI, FLORIDA 33173 O APPRAISAL OF REAL PROPERTY 1 .26 ACRES LOCATED ON ROCKLAND KEY, MONROE COUNTY, FLORIDA OWNED BY SJK INVESTMENT, LLC y U APPRAISAL REPORT SJM FILE: 21859 PREPARED FOR N CD KEVIN G. WILSON, PE c44 ASSISTANT COUNTY ADMINISTRATOR MONROE COUNTY m I 100 SIMONTON STREET, SUITE 2-213 KEY WEST, FLORIDA 33040 1 Packet Pg. 2959 u.2.c SLACK JOHNSTON MAGENHEIMER REAL ESTATE APPRAISERS&CONSULTANTS ANDREW H.MAGENHEIMER,MAI THEODORE W.SLACK,MAI CERT.GEN.RZ1073 (1902-1992) THEODORE C.SLACK,MAI (1931-2015) SUE BARRETT SLACK,MAI (RETIRED) March 30, 2021 Kevin G. Wilson, PE Assistant County Administrator Monroe County 1100 Simonton Street, Suite 2-213 Key West, FL 33040 RE: Appraisal of Real Property 1.26 Acres Located on Rockland Key, Monroe County, Florida Owned By SJK Investment, LLC SJM File: 21859 2 Mr. Wilson: At your request, we have prepared an appraisal report of the above referenced property as of March 22, 2021, the date of valuation. The purpose of the appraisal is to estimate the market value of the fee simple interest in the subject property as of the effective date of valuation. The intended user of this report is the client, Monroe County. The intended use ' of the appraisal is to assist Monroe County with the potential purchase of the property from a willing seller. The subject property consists of a parcel of mostly vacant land located on Rockland Key E in Monroe County, Florida. The property is located approximately 0.25 mile north of Mile �e Marker 9 of Overseas Highway (US Hwy. 1). According to the Monroe County Property Appraiser's Office, the property contains a total of 1.26 acres. The site is identified as 9 "undeveloped land" and is mostly scarified. There are two small utility buildings on the N site which are in poor condition and are not considered to contribute any value to the overall property. The subject property is zoned Industrial (1) and is designated as Industrial (1) according to the Monroe County Future Land Use Map. The subject property is accessible via graded, unnamed road easements from Overseas Highway. The parcel does not have water frontage. 2 SLACK,JOHNSTON&MAGENHEIMER,INC. 7245 S.W.87 AVENUE,SUITE 300,MIAMI,FLORIDA 33173 TELEPHONE(305)670.21 1 1 • EMAIL: SJMIAMI@AOL.COM Packet Pg. 2960 U.2.c Kevin Wilson March 30, 2021 The appraisal report states our opinion of market value, subject to various assumptions and limiting conditions contained in this appraisal report. The analyses forming the basis of our valuation have been performed by the undersigned. The appraisal has been prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Standards Board of the Appraisal Foundation. 0 0 As of the date of this report, the world is in the midst of a pandemic associated with the virus Covid-19. The world economy is in a state of volatility based on the uncertainty of the outcome of the impact of the virus. In the United States, the federal, state and local governments are taking steps to limit the spread of the virus. These steps have negatively impacted several facets of the economy including travel, tourism and hospitality. Based on the results of historic pandemics of the 20th century(Swine Flu, Asian Flu, Hong Kong 0 Flu, SARS, MERS, EBOLA and HIV/AIDS) it is anticipated the current pandemic will pass in time;however, the extend of the economic damage remains to be seen. Based upon available information, this appraisal is premised upon the extraordinary assumption that the Corona virus will not have a measurable long-term value impact on the property that is the subject of this appraisal. E Based on our investigation and analysis, we have formed the opinion that the market value CD cu of the fee simple interest in the subject property, as of March 22, 2021, was $1,375,000. The following report contains the results of our investigations and the explanation of the T approaches to value. Respectfully submitted, E SLACK, JOHNSTON & MAGENHEIMER, INC. 4 CD 4W4%�!_ N Andrew H. Magenheimer, MAI CERT.GEN.RZ1073 3 SLACK JOHNSTON Packet Pg. 2961 U.2.c TABLE OF CONTENTS SUMMARY OF SALIENT FACTS AND CONCLUSIONS ...................................................5 AERIAL PHOTOGRAPH OF THE SUBJECT PROPERTY...................................................6 CERTIFICATION......................................................................................................................7 ASSUMPTIONS AND LIMITING CONDITIONS..................................................................8 IDENTIFICATION OF THE PROPERTY..............................................................................10 LEGAL DESCRIPTION..........................................................................................................10 OWNERSHIP AND HISTORY OF THE PROPERTY ..........................................................I 1 PURPOSE, INTENDED USE AND DATE OF THE APPRAISAL.......................................I I DEFINITION OF VALUE AND INTEREST APPRAISED ..................................................12 SCOPE OF THE APPRAISAL................................................................................................13 EXPOSURE AND MARKETING TIME................................................................................14 NEIGHBORHOOD DATA......................................................................................................15 DESCRIPTION OF THE SITE................................................................................................18 REAL ESTATE TAX ANALYSIS..........................................................................................20 LANDUSE AND ZONING ....................................................................................................20 HIGHEST AND BEST USE....................................................................................................25 2 VALUATIONPROCESS ........................................................................................................27 SALES COMPARISON APPROACH ....................................................................................28 RECONCILIATION AND FINAL VALUE ESTIMATE ......................................................35 ADDENDUM A - PHOTOGRAPHS OF THE SUBJECT PROPERTY................................36 ADDENDUM B -LAND SALES...........................................................................................37 ADDENDUM C - QUALIFICATIONS OF THE APPRAISER.............................................48 T Cn m CD CD u 4 SLACK JOHNSTON Packet Pg. 2962 U.2.c SUMMARY OF SALIENT FACTS AND CONCLUSIONS Property Appraised: 1.26 acres located on Rockland Key, Monroe County, Florida Property Type: Vacant land RE Number: 00122080-000304 0 2020 Market Value Assessment: $218,717 0 2020 Real Estate Taxes: $1,499.28 0 Ownership: SJK Investment, LLC 615 B United Street E Key West, FL 33040 0 W Interest Appraised: Fee Simple Estate 2 Land Area: 54,943 Square Feet; 1.26 Acre Improvements: Two small utility buildings in poor condition a, Land Use: Industrial (1); Monroe County Zoning: Industrial (1); Monroe County Highest and Best Use: Industrial uses Date of Valuation: March 22, 2021 We Date of Report: March 30, 2021 a N CD Final Value Estimate: $1,375,000 C44 5 SLACK r�eu Packet Pg. 2963 U.2.c AERIAL PHOTOGRAPH OF THE SUBJECT PROPERTY 122080 0302 - u *,T CL Source: Monroe County Property Appraiser's Office For illustrative purposes, not to scale. T) N N 6 SLACK r�eu Packet Pg. 2964 U.2.c 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 are 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 c personal interest with respect to the parties involved. 0 - we have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 0. 0. - our engagement in this assignment was not contingent upon developing or reporting predetermined results. 0 - compensation for completing this assignment is not contingent upon the development or reporting y 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. ,CL W - 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 Standards of Professional m Appraisal Practice of the Appraisal Institute. - The undersigned has made a visit to the property that is the subject of this report. , - Kimberly Magenheimer, CERT.GEN.RZ1386,provided significant real property appraisal assistance to the person signing this certification. 0. - we have not performed services regarding the subject property in the past three years. E - the use of this report is subject to the requirements of the Appraisal Institute relating to review by CD r9 its duly authorized representatives. - as of the date of this report, Andrew H. Magenheimer, has completed the continuing education `CD V program for Designated Members of the Appraisal Institute. `.V SLACK, JOHNSTON&MAGENHEIMER, INC. Andrew H. Magenheimer, MAI CERT.GEN.RZ1073 7 SLACK Packet Pg. 2965 ASSUMPTIONS AND LIMITING CONDITIONS The appraisal is subject to the following assumptions and limiting conditions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. No legal opinion related to a title search was provided and all existing liens and encumbrances, including deed restrictions and developers' agreements, have not been investigated unless otherwise stated. The property is appraised as though free and clear. 0 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others has been gathered from sources deemed to be reliable, 0 however, no warranty is given for its accuracy. E 0) 5. All engineering and surveying is assumed to be correct. Any sketches, plats, or drawings included in this report are included to assist the reader in visualizing the property. We have made 0 Ch no survey of the property, and assume no responsibility in connection with such matters. M 2 6. It is assumed that there are no hidden or inapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for unusual soil conditions and no opinion as to these matters is to be inferred or construed from the attached report other than those specifically stated in the report. Unless stated otherwise, the soil conditions of the subject property are assumed to be adequate to support development utilizing conventional construction techniques. We recommend the client obtain an opinion from a competent engineering firm. T 7. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. N 9. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 8 SLACK r�eu Packet P�. 2966 U.2.c 11. This study is to be used in whole and not in part. No part of it shall be used in conjunction with any other appraisal. Publication of this report or any portion thereof without the written consent of the appraiser is not permitted. 12. The appraiser, by reason of this report, is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 13. Neither all,nor any part of the contents of this report(especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected), shall be 0 disseminated to the public through advertising,public relations, news, sales, or other media without r_ the written consent and approval of the appraiser. The use of this report in any public offering or syndication document is specifically prohibited. , 0 14. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of, nor did the appraiser become aware of such during the appraiser's 0 inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. It is recommended that the client retain an expert in this field, if needed. 15. Disclosure of the contents of this report by the appraiser is controlled by the Appraisal Institute of which one or more signatures of this report is an MAI member and by the Florida Department of Professional Regulation, Division of Appraisal State Certification. The analysis and value conclusions, as well as non-public information about the subject property, are confidential matters and cannot be divulged to any persons other than the party for whom the report is prepared. Exceptions to this confidentiality provision are requests by committees of the Appraisal Institute or the Florida Department of Professional Regulations for peer review, and subpoenas by any court having jurisdiction to request production of the report. N N 16. The subject property has no public road frontage. It is our understanding access is provided by unnamed easements associated with the original subdivision of a larger parcel. This appraisal is based on the assumption the subject property has public access. Limits on access could impact the its value and required additional analysis. A thorough title analysis and understanding of the C easements is recommended. Acceptance or use of this report constitutes acceptance of the preceding conditions. 9 SLACK r�eu Packet Pg. 2967 U.2.c IDENTIFICATION OF THE PROPERTY The subject property consists of a parcel of mostly vacant land located on Rockland Key in Monroe County, Florida. The property is located approximately 0.25 mile north of Mile Marker 9 of Overseas Highway (US Hwy. 1). According to the Monroe County Property Appraiser's Office, the property contains a total of 1.26 acres. The site is identified as "undeveloped land" and is mostly scarified. There are two small utility buildings on the site which are in poor condition and are not considered to contribute any value to the overall property. The subject property is zoned Industrial (1) and is designated as Industrial (1) U according to the Monroe County Future Land Use Map. The subject property is accessible W via graded, unnamed road easements from Overseas Highway. The parcel does not have water frontage. 0 LEGAL DESCRIPTION The legal description for the subject property was taken from a Warranty Deed dated , February 17, 2006, and recorded in the public records of Monroe County, Florida, in ORB 2189, at Page 1785. 2 A parcel of land lying in and being a part of Government Lot No. 7, section 21, Township 6`i South, Range 26 East, Rockland Key, Monroe County, Florida � (also to be known as Tract 21 of the future map or plat entitled "Rockland Key Commerce Center" at the time of recordation) and said parcel being more � particularly described as follows: Commencing at the Southwest corner of the map or plat entitled "Rockland Village" as recorded. in Flat Book 4, Page 133, of the Public Records of Monroe County, Florida; thence North, y along the Westerly limits. of the said "Rockland Village", a distance of 29.30 feet to a point, thence West, leaving the said Westerly limits, a distance of 1840.50 feet to the Northwest corner of lands described in Official Records Book 373, Pages 112 and 113 of the said Public Records of Monroe County, Florida; thence continuing West, a distance of 932.99 feet to a point; thence North, a distance of 502.67 feet to a point; thence East, CD a distance of 110.00 feet to a point; thence North a distance of 208.24 feet to a point hereinafter to be known as the "Point of Beginning"; thence continuing North, a distance of 194.07 feet to a point; thence West, a distance of 283.11 feet to a point, CD thence South, a distance of 194.07 feet to a point, thence .East, a distance of 283.11 feet back to the "Point of Beginning". Containing 54,943 square feet or 1.261 acres more or less 10 SLACK Packet Pg. 2968 i U.2.c OWNERSHIP AND HISTORY OF THE PROPERTY Ownership of the subject property is held by SJK Investment, LLC, 615 B United Street, Key West, FL 33040. A Warranty Deed dated February 17, 2006, transferred ownership from Rockland Investment Corporation, Inc. to SJK Investment. Based on the documentary stamps, the sales price was $504,000 (ORB 2189 at Page 1785). This transaction is too old to be of relevance in the valuation analysis for the subject property. In addition, it is our understanding the transaction may have not been entirely arms' length as the two parties were business partners in other endeavors. To the best of our knowledge, the subject property is not listed for sale. The property owner's representative reported that the property is not leased. c� 0 PURPOSE, INTENDED USE AND DATE OF THE APPRAISAL The purpose of the appraisal is to provide an estimate of the market value of the fee simple interest in the subject property as of March 22, 2021, the effective date of valuation. The W date of the report is March 30, 2021. 2 The intended user of this report is the client, Monroe County. The intended use of the appraisal is to assist Monroe County with the potential purchase of the property from a willing seller. There are no other intended users or intended uses of this appraisal. T) N N 11 SLACK r�eu Packet Pg. 2969 U.2.c DEFINITION OF VALUE AND INTEREST APPRAISED The Uniform Standards of Professional Appraisal Practice (USPAP 2020-2021) defines Market Value as "a type of value, stated as an opinion, that presumes the transfer of a property (i.e. a right of ownership or a bundle of rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal." We have relied on the definition of Market Value as "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the 0 price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions 0 whereby: 1. buyer and seller are typically motivated; , 2. both parties are well informed or well advised, and acting in what they consider their 0) own best interests; 3. a reasonable time is allowed for exposure in the open market; 2 4. payment is made in terms of cash in United States dollars or in terms of financial �-- arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Federal Register 77472,Volume 75,No. 237,December 10,2010) Other pertinent definitions from the Dictionary of Real Estate Appraisal, Sixth Edition, as published by the Appraisal Institute, are as follows: Fee Simple Estate is the"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." N N Exposure Time is "the estimated length of time to property interest being appraised would have been offered in the market prior to the hypothetical consummation of a sale at market E value on the effective date of the appraisal." Marketing Time is "an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of the appraisals." 12 SLACK r�eu Packet Pg. 2970 U.2.c Easement is "the right to use another's land for a stated purpose." SCOPE OF THE APPRAISAL The scope of this appraisal report is defined by the purpose, which is to develop and report an opinion of the market value of the fee simple estate in the subject property as of the date of valuation. The subject property consists of industrially zoned land located at Mile Marker 9 of Overseas Highway (US Hwy.1) on Rockland Key in Monroe County, Florida. r- The assignment began with a visit to the subject property and surrounding neighborhood, 0 which was made on March 22, 2021. We have reviewed information regarding the buildability of the subject property, as well as market conditions. The client provided copy 0 of the 2006 deed and the property owner's contact information. E Subsequent to our visit, and review of information provided, an estimate of the highest and best use, as of the date of valuation, was made. The highest and best use analysis considers 0) all physically possible, legally permissible and economically feasible uses to which the property can be put as vacant. c. The appraisal process includes three basic approaches to value. These are the income, sales comparison, and cost approaches. The application of these approaches is determined by the type of property being appraised, as well as the scope of the valuation assignment. The sales comparison approach was considered the applicable approach in the valuation of the subject property, which consists of a vacant land. T CU A search was conducted of sales of industrially zoned sites and commercially zoned sites 0. with similar highest and best uses. The sales information included in this report was0. considered of good quality and representative of the best available market data. Analysis of the selected sales included a visit to the property, reviewing the deed and confirming sale � details with one or more of the parties to the transaction or their representatives. The final step in our analysis is a reconciliation of the appraisal methods used. The quantity and quality of the data used, and the reliability of their value indications, are the basis for N the final conclusion of value. 13 SLACK r�eu Packet Pg. 2971 U.2.c EXPOSURE AND MARKETING TIME Exposure and marketing times are the typical periods of time necessary to expose and actively market the subject property on the open market to achieve a sale at a price consistent with the market value estimate and on terms consistent with the definition of market value recited herein. The length of time is a function of several factors including price, terms, investment quality and exposure to a given market. Exposure time is the hypothetical period immediately preceding the effective date of the appraisal and market time is the period immediately after the effective date of the appraisal. W r- A review of current market activity for vacant land in the Florida Keys, as well as 0 conversations with real estate brokers active within this market, was performed in order to estimate an exposure time for the subject property. 0 Most brokers indicated certain sectors of Monroe County's real estate market, including E vacant land and existing homes, have experienced increased activity and an upward trend in sale prices. Marketing time should be less than one year, if the property is priced y realistically. According to statistics published in Coldwell Banker Schmitt's Real Estate Report, the average number of days on the market for all properties types is approximately 2 120 days or 4 months. It is our opinion that vacant land could take longer to sell than �-- improved properties due to the uncertainties associated with obtaining permits to build and/or building obstacles. For this reason, we have estimated a marketing time of up to 12 months for the subject property. T N N 14 SLACK r�eu Packet Pg. 2972 U.2.c NEIGHBORHOOD DATA The subject property is located within Monroe County, Florida, also known as the Florida Keys. Monroe County is made up of a chain of small islands that sweep about 115 miles in a southwesterly direction from the southern tip of Florida's mainland, ending at Key West. The county is divided into four separate regions or expanded neighborhoods: the Upper, Middle, and Lower Keys and the City of Key West. The subject property is located in the Lower Keys region on Rockland Key. 0 Rockland Key lies at Mile Marker 9 of Overseas Highway (US Highway 1). Overseas Highway is the only access from the mainland Miami-Dade County by car to all destinations 0 in the Keys. 0 Because of the concern for the Key Deer habitat, as well as the habitat of other species such as the Lower Keys Marsh Rabbit and Eastern Indigo Snake, there has been a significant E effort by governmental and environmental agencies to purchase land in the Lower Keys. The efforts have included purchases of large tracts of undeveloped land, as well as y individual lots within improved subdivisions. A large percentage of vacant land in the Lower Keys is already under some form of government ownership. There have also been 2 several wildlife preserves established including the Florida Keys National Wildlife Refuge -- Complex. a� Rockland Key is divided by Overseas Highway. The subject property is located on the portion of Rockland Key north of Overseas Highway. The western 3/4 of the island iscu industrially zoned and uses include warehouses and open storage. Access to most properties in this area is provided via easements. The roads are typically graded limerock or asphalt y millings. Parts of the island are also being mined for limerock. The eastern 1/4 of the island includes the Rockland Village single family subdivision. These homes are canal front with open water access. Since January, 2019 there have been 8 sales 0) on single family homes in Rockland Village. Sales prices ranged from $440,000 to $800,000. An affordable housing development known as Quarry 3 (Phase 3) is currently a under construction in this area and is anticipated to be complete in the Summer of 2021. The Quarry 3 offers 57 units including 1-, 2- and 3-bedroom floor plans. Phases 1 and 2 of N the Quarry are located in close proximity on Big Coppitt Key. Development south of Overseas Highway is limited to a sparsely developed, residential development known as Rockland Hammock. This is a mostly dry subdivision with only a few homes located on a canal. At one time, a large retail development was proposed for Rockland Key. The development was to be situated on a 33-acre site and was to include 175,000 square feet of commercial space. WalMart was slated to occupy approximately 135,000 square feet. The project was 15 SLACK r�eu Packet Pg. 2973 U.2.c also to include approximately 40 employee housing units. It is our understanding the project is no longer moving forward. Rockland Key is located in close proximity to the Naval Air Station Key West (a/k/a Boca Chica Naval Air Station). According to the Commander, Navy Region Southeast website, "Naval Air Station Key West's national security mission supports operational and readiness requirements for Department of Defense, Department of Homeland Security, National Guard units, federal agencies, and allied forces." 0 The station is equipped with a sophisticated Tactical Combat Training System (TCTS), similar to the one depicted in the popular movie "Top Gun," which tracks and records aerial 0 maneuvers. In addition, NAS Key West is the host facility for numerous tenant activities, including Joint Interagency Task Force South, U.S. Coast Guard, and U.S. Army Special 0 Forces Underwater Training School to name a few." For the most part, land uses on northern Rockland Key are industrial in nature. There appears to be a strong demand for industrial properties likely due in part to the limited y supply of industrially oriented properties in the Florida Keys. Other than Rockland Key, industrial zoning is limited to small areas on Big Pine Key, Stock Island and near the airport in Marathon. -- Rockland Key j� t}Ts`1 i I 0' t - tt�l Ui1i)}1�1 1�4 _ i� t��v 8'Y - E_ x ii d` i tir!45 it,,in,'ra '°��j�dirslh¢S�Sr�7 i t>e�'Ytl Spit ' r ?� � t��� ik h ii i 1, ��• t8 n- N 3 r E c° sU m 16 SLACK Packet Pg. 2974 U.2.c Monroe County 6y T e E v .e r 51 t d ,e s 61avi�I { BROWARD Hollywood ar 41 29 C 0a 1- L 'I P P Everglades "�emb f 'aar�PO1�CE Miami m_ Wildlife 27 P� e c ���Heach 47 F I rQ A managcmentArea f{� tSf ! ' Hialaal srd tis r ijokh Miami ,. Te B' yprsea ' 'a1 ale !� j Miami H Tonal Rrese a Tarn+ami � 853 Lopes Big Cylrrfiss 1liastch 'ter Gar i Gables: l trston Cz a(he n Westwood Lakg�i i51��rrii Swamp Key l4Msr ayira 0 997., a�(� edfendall Key Biscayne (L' MIAAMI-DAAD Terrina 0 Lostmans ,q ds : utierRid ge Ml'NROE Pnnoetorrfq�'� � 61oao' Homestead 'Leisure itj biapayne � IUationai � North Neroey ; �rri�rl5wk Creetc Florida City Park � shark � Caesar'freak wotsolf North E Joeutlrberk �C5ros5 Loke se?unrl '0 Mr€ldie hex"rake LonrJ�takq 0 h t y=i.0 rI 0) Lana l filrc�he ri' ,nludLdke Monree,L, k La#e Key i fltgo Everglades t8 Nalfanal C? Park r' CL Tavernier Florida Bay `istamoda E M e x l a Marathon Great White � t � d rd t T �Hera t h .R. BiB Pang-'' r Key West 0 c a a n tt3 N,W R, N Key iF qpq M CD r tV CD tV f rtii 1-3how Coal Vi 4t3 0 MI 10 20 30 40 17 SLACK r�eu Packet Pg. 2975 DESCRIPTION OF THE SITE 122080.000302 122080.000303 �w Go M on GO-0 175 1 � E f nt sr7 R 2 45 107r} E 1350 2E319 _ 333 122080.000304 0. LI.Deed kb.244575 1 � I !� I ail aa�c I ,,tis a 122081.0001 CL ------------------------------ W I L] qq I 4 I Location: Rockland Key. The property is located approximately 0.25 mile north of Mile Marker 9 of Overseas Highway(US Hwy. 1). This location is in the Lower Keys region of Monroe County. Shape: Rectangular with dimensions of approximately 283 feet by E 194 feet. �e Land Area: 54,943 square feet 1.26 acres N N Frontage/Access: The subject property has frontage and access via unnamed easements from Overseas Highway (US 1). The property does not have water frontage. Habitat/Topography: Based on the information available, the habitat on the subject property consists of"undeveloped land" and the site is mostly scarified. 18 SLACK r�eu Packet P�. 2976 U.2.c Flood Insurance: Zone AE (Elevation 10). National Flood Insurance Community Panel Number 12087C1531K, dated February, 18, 2005. Utilities: Water, sewer and electric are available to the site. Land Use Restrictions: From the information available, there do not appear to be any easements or encroachments that would adversely affect the utilization of the subject property for its highest and best use. 0 Environmental Study: An environmental risk study was not provided for our review. This appraisal report is based on the assumption that no 0 conditions exist that would adversely affect the utilization or marketability of the property. 0 Mineral Rights: It is assumed there are no known oil, gas and mineral E reservations. 0 Habitat Map CL ky �r p� E " sof d i f eF t�_' M e CD . " t �' " `�` •;a �.r*4` its � �tlf N CD r E i Y � Sf .. t� .ifr �f i s�7fliilt,,Sf ` f> >tffrltnSr ,: _ 19 SLACK rf.�C13 Packet Pg. 2977 U.2.c REAL ESTATE TAX ANALYSIS The subject property is located in Monroe County and subject to county ad valorem taxes on real property. The Florida Statutes provide for assessment and collection of ad valorem taxes on real property; however, the taxes are assessed, collected, and used on the local county level. The assessment for the property is established each year as of January 1 st by the Monroe County Property Appraiser's Office at 100% of "Just Value". The tax due is computed according to annual millage rates established by Monroe County. Millage rates are the amount paid to each taxing body for every $1,000 of assessed value. Taxes are payable in November with a 4% discount and become delinquent on April 1 st. The 2020 W assessments and taxes for the subject property are as follows: 0 Total 'Iarket Assessed. MCPA Falio Land Improvements Assessment Value Taxes 001220 0-000304 S275,182 e535 2 1-717 S94,60,3 1;499e2 It should be noted, differences between "assessed values" and "market value assessments" or"just values" are attributable to the cap on annual ad valorem assessments provided under y Florida Statute 193.1555. There are no delinquent taxes reported for the subject property. 2 LAND USE AND ZONING The state-mandated, Comprehensive Master Development Plan for Monroe County has had enormous impact on the development potential of most vacant sites in all of Monroe County. Concurrency issues, and evacuation potential in the event of hurricanes are paramount , considerations relative to new development. The fragile Keys ecosystem is already strained y to provide services such as potable water, sanitary sewer, drainage and other services to development already in place. Evacuation potential is limited to the Overseas Highway, the only vehicular transportation access to most of the Florida Keys. Environmental preservation concerns have also taken prominence, as fears that the unique geography of �e the area will be irrevocably lost, as wetlands are filled and coastal alterations and effluents damage the coral reefs. N Zoning regulations, in and of themselves, are not the ultimate determining factor placing N constraints on development of land in the Keys. It is the county's interpretation of their applicability, as they relate to identified land types, which really matters. In other words, if the county should identify a portion of a property as wetlands or mangroves, none of that area can be included in calculations of upland area for allocated density. This identification and allocation process is somewhat subjective and, therefore, often open to interpretation. 20 SLACK r�eu Packet Pg. 2978 i U.2.c Tier System While the Monroe County Land Use Plan and Zoning Code do permit specified uses "as of right" for vacant properties, development rights are also affected by the Tier System, which incorporates the Rate of Growth Ordinance (ROGO). The Tier System came into effect in October, 2007. The subject property is designated as Tier III. Tier III is the least restrictive in terms of potential development. The various tiers are described as follows: Tier Description Tier I boundaries were delineated to include one or more of the following criteria: 0 ■ Vacant lands which can be restored to connect upland native Habitat patches and reduce further fragmentation of upland native habitat. � ■ Lands required to provide an undeveloped buffer,up to 500 feet in depth,if indicated as 0 appropriate by special, species studies, between natural areas and development to reduce secondary impacts. Canals or roadways, depending on width, may form a 1 boundary that removes[lie need for the buffer-or reduces its depth. ■ Lands designated for acquisition by public agencies for conservation and natural resource protection. ■ Known locations of threatened and endangered species,as defined in LDR Section 101-1, 0) identified on the threatened and endangered plant and animal maps or the Florida Keys on Carrying Capacity study maps,or identified in on-site surveys. ■ Conservation,Native Area,Sparsely Se[tled,and Offshore Island land use districts.. s Areas with minimal existing development and infrastructure. CLL pertains only to Big Pine Key / No Name Key. Scattered lots and fragments of environmentally sensitive lands ilia] may be found in platted subdivisions. A large number fI of these lots are located on canals and are of minimal value to the ley deer- and other protected species because the canal presemsa barrier to dispersal. III Tier III are lands located outside of Rig Pine Key and No Name Key that are not designated � Tier I or Tier III-A. Tier III represents the majority of developable acreage in the County. Tier III-A is designated as a Special Protection Area. It is defined as land%that,have one acre IIf A or more of native upland habitat. ' Some properties do not have a tier designation. These undesignated properties are found on throughout the Keys but most occur in ocean Reef,which is exempt from the Tier overlay Undesignatcd Ordinance. Others are rights-of-way, military installations, or properties that were not designated due to mapping discrepancies and., at the time of the preparation of this document,are being evaluated for tier deli nation. r7 r7 r N CD 21 SLACK Packet Pg. 2979 U.2.c Tier Map r r, r i4 r } 0 a� W _ C y 0 E W CL ; s t 3 E � c 1 FLUM T According to the Monroe County Future Land Use Map, the subject property is designated as Industrial (1). "The principal purpose of the Industrial (1) future land use category is to E provide for the development of industrial, manufacturing, and warehouse and distribution uses. Other commercial, public, residential, and commercial fishing-related uses are also allowed. Residential uses are limited to employee housing or commercial apartments. N CD U 22 SLACK Packet Pg. 2980 U.2.c Flum Map �t ? 1t tttitit it fti t{to 2, 0 1 CL' r 0 It� E - a - 1S1�, 0 �it t tx s � tis t? 11 i c t rtJt thit x� e - V� r- t CL } a t c. 115V T Zoning The subject property is zoned Industrial (1). According to Monroe County's Land development code, "the purpose of the I district is to establish areas that are suitable for the development of industrial, manufacturing, warehousing, and distribution uses. " The maximum floor area ratio for industrial uses ranged from .025 to 0.40 depending on the use. The minimum open space ratio is 0.20. N 23 SLACK Packet Pg. 2981 U.2.c Zoning Map i fil - s 0 Al rA �51, — FOr€ 7 MOM TIP- 4'4a�t'V)���f 4C��(((€�k�`±4'c�-sA�fiit�t41L�llSF£tR�t\t�e'fE— "�`iaF{�k��:tQ,l1@ll�Slii��E�t }-i��r�`s�ssl£�E#Siflit�Au€�ai� Ft�b t((r,_ jl� t!llT��'iSl>�tt S s } r ,k ..... j {�'' ftv�f1 iq i, 11rts)1ti t is; tt r- Al - }) 1 �Et 1� 1CI ti i cn m CD - N CD u 24 SLACK Packet Pg. 2982 U.2.c HIGHEST AND BEST USE According to The Dictionary of Real Estate Appraisal (Sixth Edition) published by the Appraisal Institute, the pertinent terms relating to highest and best use may be defined as follows: Highest and Best Use is "the reasonably probable use of property that results in the highest value. The four criteria that highest and best use must meet are legal permissibility,physical possibility, financial feasibility and maximum productivity." r- In estimating highest and best use, there are four stages of analysis: 0 1. Possible Use - normally dictated by physical constraints. 0 2. Permissible Use - what use would be permitted in consideration of existing zoning and other applicable laws governing the use of the property, as well as any deed E restrictions that may exist. 3. Feasible Use - which possible and permissible uses will produce a net return to the 0) owner of the site. 4. Maximally Productive - among feasible uses, which use will produce the highest net return to the land. To meet the tests of highest and best use, the use cannot be speculative or conjectural. Its, must be legal and probable. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject property. In arriving at the estimate of highest and best use, the property was analyzed as vacant. y T As Though Vacant The highest and best use, as vacant, considers among all reasonable alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination. The use of a property based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements. N Physically Possible: The property is located in the Lower Keys region of Monroe County on Rockland Key at Mile Marker 9 of Overseas Highway. The subject property consists of 1.26 acres of vacant land. The subject property has frontage on graded road easements. It is not waterfront. The site is mostly scarified. Legally Permissible: Permissible or legal uses are those permitted by zoning and land use regulations. The site is zoned Industrial (1)) and is designated as Industrial (1) according to the Monroe County Future Land Use Map. The property is designated as Tier 111. As 25 SLACK Packet Pg. 2983 U.2.c mentioned above,the property is mostly scarified and there do not appear to be any wetlands on the site. It is assumed that there are no other covenants, restrictions or easements that would adversely affect the use of the site to such an extent that it would negatively impact its value. The most likely legally permissible use would be for industrial uses. Feasible or Maximally Productive Use: The subject site is zoned for industrial uses and is of sufficient size to allow for a variety of industrial uses. r- Conclusion: Based on the analysis above, we estimate that the highest and best use of the 0 subject property is for development with industrial uses. 0 0 T) N N 26 SLACK Packet Pg. 2984 U.2.c VALUATION PROCESS There are three generally recognized approaches considered in the valuation of real property. They include the income, sales comparison, and cost approaches. It should be noted that the appropriateness and reliability of each approach depends on the type of property being appraised, the age and condition of the improvements, if any, and the availability and quality of market data available for analysis. The income approach provides an indication of value of a property based on a conversion of anticipated benefits (net income). The method of conversion is called capitalization and is either based on a single year's income (direct capitalization), or several years' income 0 (discounted cash flow). The sales comparison approach provides an indication of value based on sales of properties considered similar. Within the sales comparison approach an income multiplier analysis has also been relied upon. The cost approach provides an indication of the value of a property represented by the reproduction cost of the existing E improvements, less accrued depreciation, to which is added the land value. W The appraisal process is concluded by a review and re-examination of each of the approaches to value employed. Consideration is given to the type and reliability of data used and the applicability of each approach. These factors are reconciled and a final value estimate is made. Based on the information available,we have estimated the highest and best use of the subject property would be for industrial uses. For valuation purposes, we have utilized the sales comparison approach, as the subject property consists of mostly vacant land. , T N N 27 SLACK Packet Pg. 2985 SALES COMPARISON APPROACH The sales comparison approach produces an estimate of value for real estate by comparing recent sales of similar properties in the subject's surrounding or competing area. Inherent in this approach is the principle of substitution, which states that when a property is replaceable in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming that no costly delay is encountered in making the substitution. 0 By analyzing sales which qualify as arm's-length transactions between willing, knowledgeable buyers and sellers, price trends can be identified from which value parameters may be extracted. Comparability as to physical, locational, and economic characteristics are important criteria in evaluating the sales in relation to the subject 0 property. The basic steps involved in the application of this approach are as follows: 0. 1. Researching recent relevant property sales and current offerings throughout the competitive area. W 2. A selection process to focus on properties considered most similar to the subject, and then analyzing the selected comparable properties giving consideration to the time of sale and any change in economic conditions which may have occurred as of the date of valuation. Other relevant factors of a physical, functional, or locational nature are also considered. a, 3. Reducing the sales to a meaningful unit of comparison, i.e., price per unit or price per square foot. 4. Making appropriate adjustments to the comparable properties. 5. Interpreting the data analyzed to draw a meaningful conclusion of value. y The validity of this approach is dependent upon the availability and relevancy of the data. The sales of properties having characteristics similar as the subject have been collected and analyzed. e Our research for comparable land sales extended from January, 2018 to the effective date of this appraisal. The search concentrated on vacant sites located in the Lower Keys and N zoned or used for industrial uses. Typically, land sells based on units of comparison N particular to the property type (e.g., price per square foot, price per acre, price per unit). In this analysis, the price per square foot was considered the appropriate unit of comparison. Four sales have been presented in this report. The land sales under analysis occurred between January, 2018 and November, 2020. All of the sales included in our analysis are considered to represent the best available data as of the date of valuation. The sales reflected unadjusted prices per square foot from $13.48 to $24.49 per square foot. The land sales range in size from 0.36 to 4.00 acres. A summary chart and location map follow. Detailed information of the land sales is presented in the addenda. 28 SLACK Packet P�. 2986 U.2.c S•t NENLA, RY OF SALES Date of Total Site Total Site Price Per Igo_ Address Sale Sale Price Area(SF) Area(ACC Zoning, I`otal SF 1 111 CKers.eas Higbi ay IVov-20 $2.500000 107,750 247 Industrial $23.20 Rockland; ev U 0 2 113 Overseas Hi� way Jul-20 $3,200,100 130680 3.00 Industrial $2 _49 Rockland Key, 3 50 Chambers Street Jan-1S $362.000 15.750 0.36 Suburban $22.95 Big Pine Key Commercial w 4 100Industrial Road A.ug-18 $27350.000 174.306 4.00 Industrial $13.45 Big Pine Key 0 0 Subject North of Overseas High,vay 54.943 1.26 Industrial W Rockland; ev T) r9 r9 cv CD cv 29 SLACK Packet Pg. 2987 U.2.c Sales Map 0 `wrl`irier q�,��a°ti �if,,.�ahtar T� 0 +t'rr Vie} Yti tufa C } 0 :m Mini Il iaxy himpkiltt Ke � At",IK+ey 0) Usaf Tethered Aerostat Radar Site VtAjtasra Key S Stluirrel No, 4tirt}lix:fray F+une, Gudtoe Key. =' Little :5 ' uminarfand[xa1 Harbor I g4r;elgr roc S" f Rarnrod Torc }� C�L nuru Kie Ferky, Pirates Cove Key ey Ke ugarloa ••� Midi hw9gni 'd€inds Shores 0) qk grid t�t, Sigh[ �BaY Point N1r��l�t 1 ' Naval A€r Station, Kay West to im CL CL duo e x 'f c o M M A It d ar1 # N c e a rr CD tV U Omi 2 4 6 8 10 Copyright©and(P)1900-2012 H icrosoft Corporation an Nor its suppliers.All rights reserved-http INMnm microsofl cornfstmetsr Certain mapping and direction data©2012 NAVTEQ.All rights reserved.The Data for areas of Canada includes Information taken wth permission from Canadian authontil including:©Her H ajesty the Queen in Right of Canada,O Queen's Printer for Ontario.NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ.@ 2012 Tele Atlas N orthAmeric s,Inc.All rights reserved.Tele Atlas and Tele Atlas North America are trademarksofTeleAtlee,Inc.©2012 by Applied Geographic Solubons.All rights reserved.Portions©Copyright 2012 cy W oodall Publications Corp.All rights reserved. 30 SLACK Packet Pg. 2988 i U.2.c Discussion of the Land Sales Sale 1 is located on Rockland Key and has an address of I I I Overseas Highway, although it does not physically front on Overseas Highway. It is located approximately 650 feet north of Overseas Highway and is accessible from Overseas Highway via an unnamed road easement. This property contains approximately 107,750 square feet (2.47 acres). The western one-half, more or less, of the property is comprised of wetlands and/or encumbered by easements providing access to other properties on Rockland Key. The property is zoned Industrial. This site sold in November, 2020 for $2,500,000 or $23.20 per square foot. W The site is improved with a warehouse building containing approximately 14,010 square feet. According to the Monroe County Property Appraiser's Office, the building was constructed in 1958. According to the grantor,the building needs a new roof and the grantee 0 will be required to tie-in to the central sewer system. The property was purchased by a charity (food bank). According to the grantor's representative, the grantee was given a E discount because one of the partners is a supporter of the charity. W Sale 2 is also located on Rockland Key and has an address of 113 Overseas Highway, although it does not physically front on Overseas Highway. It is located approximately 350 2 feet north of Overseas Highway and is accessible from Overseas Highway via an unnamed road easement. This property contains approximately 130,680 square feet(3.00 acres). The one-third, more or less, of the property is comprised of wetlands and/or encumbered by easements providing access to other properties on Rockland Key. The property is zoned Industrial. This site sold in July, 2020 for $3,200,100 or $24.49 per square foot. At the time of sale, the site was improved with industrial buildings. The grantee purchased y the property for redevelopment with a mini-storage facility and the buildings have been demolished. Sale 3 is located at 50 Chambers Street on Big Pine Key. This property contains We approximately 15,750 square feet (0.36 acre). This site sold in January, 2018 for $362,000 or $22.98 per square foot. The property is zoned Suburban Commercial. N At the time of sale, the site was improved with an industrial building that had been damaged N during Hurricane Irma. The building is still in a state of disrepair and its interior is exposed to the elements. Sale 4 is located at 100 Industrial Road on Big Pine Key. This property contains approximately 174,306 square feet (4.00 acres). This site sold in August, 2018 for $2,350,000 or $13.48 per square foot. The property is zoned Industrial. This site is improved with two industrial buildings in average condition. The buildings contain approximately 6,250 square feet. 31 SLACK Packet Pg. 2989 U.2.c Adjustment Factors Property characteristics and sale terms considered in our analysis are financing, changes in market conditions, conditions of sale, size, location, topography, zoning and size. Each of these items has been analyzed and compared to the subject property and are discussed in the following paragraphs. Financing: The sales were cash to the seller transactions, with typical terms of purchase for the subject market and no adjustments for financing are warranted. W r- Terms of Sale: According to the grantor's representative, Sale 1 sold at a discount of at 0 least $500,000 based one of the partner's relationship with the local charity who purchased the property. The favorable terms of sale were considered in our analysis. Sales 2, 3 and 0 4 were considered sold as arm's length transactions; therefore, no adjustments are required. Time/Market Conditions: The closed sales transpired between January, 2018 and November, 2020. The subject's market area is experiencing a surge in renewed interest by y investors and developers. As a result, property values and sales activity are on an upward trend and based on conversations with investors and brokers active in the market, this 2 upward trend is expected to continue into the near future. Sales 1 and 2 are considered to be reflective of current market trends having taken place within the past 12 months and no adjustments are warranted. Sales 3 and 4 warrant upward adjustment for improving market conditions. Location/Access: The sales were selected based on their locations in the subject market , area, the Lower Keys. The subject property is located on Rockland Key just 9 miles east of Key West. Sales 1 and 2 are also located on Rockland Key and are considered similar in terms of location and no adjustment is warranted. Sales 3 and 4 are located on Big Pine Key at Mile Marker 30, more or less. This location is considered less desirable than the subject property which is located just outside Key West requiring upward adjustment for location. Size: Typically, smaller parcels sell for higher per unit prices than larger parcels, all other N things being equal. A comparison of Sales 3 and 4 tends to support this theory. Sale 3, a much smaller site, sold for approximately 70%more than Sale 4 on a per square foot basis. The subject property contains approximately 54,943 square feet(1.26 acre). Sales 1, 2 and 4 warrant upward adjustment for their larger sizes. Sale 3 warrants downward adjustment for its smaller site area. Topography (Wetlands): The subject property is comprised mostly of scarified land with no environmentally sensitive areas noted. The sales have varying habitats including previously developed land and environmentally sensitive habitat. Sales 1 and 2 included mangroves reducing the overall useable area. Upward adjustments are considered to be 32 SLACK Packet Pg. 2990 U.2.c warranted. Sales 3 and 4, like the subject property, do not have environmentally sensitive areas and do not require adjustment for this factor. Land Use/Zoning: The subject property is zoned Industrial. The sales are zoned Industrial and Suburban Commercial. Sales 1, 2 and 4 are similar and no adjustment is warranted. Although Sale 3 is zoned Suburban Commercial, it is improved with an industrial building and is not located on Overseas Highway rendering it less conducive for commercial uses, but suitable for other less intensive commercial uses, (i.e. office). Slight downward adjustment is warranted for superior zoning. Shape/Configuration: The subject property is rectangular in shape. The sales are similar in shape and no adjustment is warranted. 0 Useable Area Versus Gross Area: Portions of Sales 1 and 2 are encumbered by easements providing access to other portions of Rockland Key. Upward adjustment is warranted for E the diminished useable area. Sales 3 and 4 do not appear to be encumbered and are similar to the subject property with no adjustments warranted. 0) ImprovementsBuildings: The subject property is mostly vacant with the exception of two 2 small utility buildings in poor condition. Sale 1 included a building in fair condition and the grantee intends to continue to use the building. Downward adjustment is warranted for a� the contributory value of the building. Sale 2 was improved with buildings at the time of sale that were subsequently demolished no adjustment is warranted. Sale 3 is improved with a metal building that was heavily damaged by Hurricane Irma in 2017. The building is still unrepaired and is not considered to contribute value to the overall property and no , adjustment is warranted. Sale 4 included buildings that are still in use and downward y adjustment is warranted. N N 33 SLACK Packet Pg. 2991 U.2.c Conclusion The following adjustment grid is provided to illustrate the appraiser's thinking in the reconciliation of the data presented. No. 1 2 3 4 Date 11/2020 7/2020 1/2018 8/2018 -� Price/Square Foot $23.20 $24.49 $22.98 $13.48 Market Conditions = _ + + c Condition of Sale + _ _ _ 0 c Location Size + + - + 0 Topography(Wetlands) + + Zoning = _ _ _ E Config./Shape — — — — Useable/Gross Area + + Improvements Overall + + + + In addition to the four sales discussed above, the owner of the subject property reported that E he also owns a 2.30-acre site on Rockland Key (117 Overseas Highway) that is currently under contract for sale for approximately $2,300,000 or $23.00 per square foot. This site does not appear to have any environmentally sensitive habitat, but is subject to a 40-foot easement on its southern boundary. y T Sales 1 and 2 are most similar to the subject property in terms of location and are considered the more reliable indicators of the value of the subject property. Sale 2, which represents a redevelopment site, is most similar to the subject property and warranted less adjustment as compared to Sale 1. The unadjusted sale prices of Sales 1 and 2 are $23.30 and $24.49. Both warrant upward adjustment for their environmentally sensitive habitats and encumbrances (easements) which reduce the useable areas of the sites. N Based on the above, we have formed the opinion that the market value of the subject property is estimated to be $25.00 per square foot. Although this is slightly above the E unadjusted range indicated by the four sales, this conclusion is considered reasonable given, the subject contains only 54,943 square feet (smaller than Sales 1 and 2), has no known encumbrances (easements) and does not appear to have any environmentally sensitive habitat. The value of the subject property is estimated as follows: 54,943 Square Feet @ $25.00 Per Square Foot= $1,373,575, rounded to $1,375,000 34 SLACK Packet Pg. 2992 U.2.c RECONCILIATION AND FINAL VALUE ESTIMATE The process of reconciliation reviews and reexamines the approaches to value which were included in the appraisal. Our analysis of the fee simple market value of the subject property has primarily relied on the sales comparison approach. Based on our investigation and analysis, we have formed the opinion that the market value of the fee simple interest in the subject property as of March 22, 2021, was $1,375,000. 0 r- 0 0 0 T) Cn CD CD 35 SLACK Packet Pg. 2993 U.2.c ADDENDUM A - PHOTOGRAPHS OF THE SUBJECT PROPERTY l.. z 5r K! View of the subject property from unnamed access road. T) y (} A �� �I'iw Ji 4VLia d'x E P' `- E pk, a ,,a Additional view of subject property from unnamed access road. 36 SLACK Packet Pg. 2994 U.2.c ADDENDUM B —LAND SALES SALE 1 17( 71 ' err . 1220704 P3 r n 0 It th � a flPM p 1 ro CI. 4 t R{ E Property Type: Industrial land and building Location: I I I Overseas Highway, Rockland Key, Monroe County, y Florida Folio Number: 00122070-000203 E Legal Description: Lengthy legal retained in appraisal file. �? ORB/Page: 3056/1207 N Grantor: Rockland Investment Corporation, Inc. a Grantee: Star of the Sea Foundation, Inc. Land Area: 107,750 Square Feet 2.47 Acre Access: Unnamed access road (easement) Land Use: Industrial; Monroe County 37 SLACK Packet Pg. 2995 Zoning: Industrial; Monroe County Property Data: Vegetation includes developed lands and mangroves Days on the Market: Not available Sales Price: $2,500,000 Unit Price: $23.20 per sq.ft. W r_ Date of Sale: November, 2020 0 Property Rights Conveyed: Fee simple interest Terms : Cash to seller 0 Conditions of Sale: Arm's length transaction (see comments) E Present Use: Industrial uses W Highest and Best Use: Industrial uses Intended Use: Continued industrial usage 2 Prior Sale: No prior sales reported Comments: The western one-half, more or less, of the property is comprised of mangroves and/or encumbered by easements providing access to other properties on Rockland Key. The site y is improved with a warehouse building containing approximately 14,010 square feet. According to the Monroe County Property Appraiser's Office, the building was constructed in 1958. According to the grantor, the building needs a new roof and the grantee will be required to tie-in to the central sewer system. The property was purchased by a charity (food bank). According to the grantor's representative, the grantee was given a discount because one of the partners is a supporter of the charity. N N 38 SLACK Packet P�. 2996 U.2.c Sale 1 t7 i t � 7 khl 7i s ��ts5 ill�4s� �7sf ss��1y4(t�Il � s � i � s u r £ u ' S £ sfe { 7s7 i s s ICR MIN Q, sv, b�kt •t�tasr �"' CL N CD u 39 SLACK Packet Pg. 2997 U.2.c SALE 2 Al £ £ Ji iP Y+ 442 1N E L77L7 Cld01fl1 CL Property Type: Industrial land Location: 113 Overseas Highway, Rockland Key, Monroe County, Florida Folio Number: 00122070-000202 Legal Description: Lengthy legal retained in appraisal file. ORB/Page: 3033/524 and 3033/532 Grantor: Rockland Investment Corporation, Inc. N Grantee: Key West Property Holdings, LLC Land Area: 130,680 Square Feet E 3.00 Acres Access: Unnamed access road (easement) Land Use: Industrial; Monroe County Zoning: Industrial; Monroe County 40 SLACK Packet Pg. 2998 i U.2.c Property Data: Vegetation includes developed lands and mangroves Days on the Market: Not available Sales Price: $3,200,100 Unit Price: $24.49 per sq.ft. Date of Sale: July, 2020 Property Rights Conveyed: Fee simple interest W Terms : Cash to seller 0 Conditions of Sale: Arm's length transaction 0 Present Use: Industrial uses E Highest and Best Use: Industrial uses Intended Use: Possibly mini storage W Prior Sale: No prior sales reported Comments: The one-third, more or less, of the property is comprised of wetlands and/or encumbered by easements providing access to other properties on Rockland Key. At the time of sale, the site was improved with industrial buildings. The grantee purchased the property for , redevelopment with a mini-storage facility and the buildings have been demolished. y N N 41 SLACK Packet Pg. 2999 U.2.c Sale 2 £ £ tt£ CL a � £ yt� N M M N CD u 42 SLACK Packet Pg. 3000 U.2.c SALE 3 i eq t t mete— " �Y 2762 V p W p W 1_ U Property Type: Industrial land and building Location: 50 Chambers Street, Big Pine Key, Monroe County, Florida Folio Number: 00276240-000000 Legal Description: Lots 11, 12 and 13, in Square 4, of KINERCHA, according to the map or plat thereof, as recorded in Plat Book 1, Page 74 of the Public Records of Monroe � County, Florida. ORB/Page: 2890/1547 N Grantor: Patricia Ann Valentik, individually and as successor trustee of the Evelyn K. Bilecky Revocable Living Trust Grantee: Jonathan S. Gabriel, as Trustee of the Camere Realty Trust Land Area: 15,750 Square Feet 0.36 Acre Access: Chambers Street 43 SLACK Packet Pg. 3001 U.2.c Land Use: Mixed Use Commercial; Monroe County Zoning: Suburban Commercial; Monroe County Property Data: Mostly cleared Days on the Market: 37 Sales Price: $362,000 Unit Price: $22.98 per sq.ft. W 0 Date of Sale: January, 2018 Property Rights Conveyed: Fee simple interest 0 Terms : Cash to seller E Conditions of Sale: Arm's length transaction W Present Use: Industrial uses Highest and Best Use: Industrial and/or commercial use 2 Intended Use: Unknown �- Prior Sale: August, 1992; $155,000 a, Comments: At the time of sale, the site was improved with an industrial building that had been damaged y during Hurricane Irma. The building is still in a state of disrepair and its interior is exposed to the elements. N N 44 SLACK Packet Pg. 3002 U.2.c Sale 3 S h f((((( V �i si r Aim i' � 7 �. {Sim ' 4 i �+r T. s r ir, A �r s ch N CD CD M r N CD U 45 SLACK Packet Pg. 3003 U.2.c SALE 4 zm S�,�� A. _ x ird i � rst) %� r•;�'�,5 jH�t} a4 Yf 2'�u:y���}�tr ��r th i�q'r,{ttt�'' i t y h yy „ ix 1: E 44 of x� 731 � � . Property Type: Industrial land and buildings °3 Location: 100 Industrial Road, Big Pine Key, Monroe County, Florida ' T Folio Number: 00277196-000000 Legal Description: Lengthy legal retained in appraisal file. ORB/Page: 2926/855 �? Grantor: Paul J. Snellinger Grantee: RK Land Holding, LLC Land Area: 174,306 Square Feet 4.00 Acres Access: Industrial Road Land Use: Industrial; Monroe County Zoning: Industrial; Monroe County 46 SLACK Packet Pg. 3004 U.2.c Property Data: Mostly cleared Days on the Market: Not available Sales Price: $2,350,000 Unit Price: $13.48 per sq.ft. Date of Sale: August, 2018 Property Rights Conveyed: Fee simple interest Terms : Cash to seller 0 Conditions of Sale: Arm's length transaction 0 Present Use: Industrial uses Highest and Best Use: Industrial uses E Intended Use: Unknown 0 Prior Sale: None reported for several years U Comments: �-- This site is improved with two industrial buildings in average condition. The buildings contain approximately 6,250 square feet. Sale 4 T E 2 � X �tos N i ?qAY fAS i t t t t1 i � ai•. �£i �n :i £ £A1��+�£tSl l� ADS}I111�� £l il�i l��£� �t��j���t2ii��£i£�}l�}}£1££}y_4� �£�l£t�ti. � 47 SLACK Packet Pg. 3005 ADDENDUM C - QUALIFICATIONS OF THE APPRAISER EDUCATION: Bachelor's Degree, The University of the South, Sewanee, Tennessee, 1986 EXPERIENCE: Over thirty years in the field of real estate, involved in various forms of consultation, appraisal, economic research and market analysis. 0 June, 1997 to Present, Principal, Slack, Johnston& Magenheimer, Inc. r_ August, 1991 to May, 1997, Senior Appraiser, Slack& Johnston, Inc. 0 February, 1987 to July, 1991, Staff Appraiser, Dixon& Friedman, Inc. E GENERAL APPRAISAL EXPERIENCE: Appraisals - Vacant land, environmentally sensitive land, aviation facilities, industrial 0 Ch facilities, shopping centers, office buildings, apartment buildings, residential developments and single-family residences. 2 Consulting - Economic research, market analysis, feasibility analysis and ad valorem real estate tax assessment appeals pertaining to industrial, commercial and residential properties. E Litigation Support — Appraisals and consulting, including expert testimony, concerning u various property types. AFFILIATIONS: v Licensed Florida Real Estate Broker Florida State-Certified General Real Estate Appraiser, Certification No. RZ 1073 Appraisal Institute Member, MAI, Certificate Number 10133, Continuing Education Completed 2002 President of the South Florida Chapter of the Appraisal Institute N Member of the Miami Board of Realtors a Member of the Florida Keys Board of Realtors Corporate Member of Florida Airport Council (FAC) 48 SLACK Packet P�. 3006