The URL can be used to link to this page

Item I09 I9 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 David Rice,District 4 Board of County Commissioners Meeting February 21, 2024 Agenda Item Number: I9 2023-2160 BULK ITEM: No DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Richard Strickland N/A AGENDA ITEM WORDING: Approval of Resolution promulgating an administrative directive for the purpose of setting forth the terms under which a parcel of land, subject to FAA grant assurances, at the Florida Keys Marathon International Airport will be leased to the Monroe Department of Emergency Management from the Monroe County Department of Airports. ITEM BACKGROUND: The former Director of Airports obtained a Florida Department of Transportation(FDOT)Aviation grant to assist the County with funding for the construction of a non-aeronautical revenue generating facility at the Marathon Airport. The FDOT grant incorporates the Airport Improvement Program(AIP) grant assurances, and FDOT offered the grant to provide the Marathon Airport with an additional revenue source to meet its obligation to be as self-sustaining as possible. Under AIP grant assurances, Monroe County is obligated to maintain a fee and rental structure at the Marathon Airport that will help make the airport as self-sustaining as possible. PREVIOUS RELEVANT BOCC ACTION: On September 19, 2018, the BOCC approved an agreement with the Florida State Department of Emergency Management to accept a grant in the amount of$5.9M for the design and construction of a Monroe County Emergency Operations and Public Safety Center. On December 19, 2018, the BOCC approved an agreement with the Florida Department of Transportation (Public Transportation Grant G1009) to accept a grant in the amount of$400,000 (to be matched with $400,000 in County funds) for the planning,permitting, design and construction of a non- aeronautical building (EOC) to be constructed on the SW corner of the Marathon airport property. On March 28, 2020, the BOCC approved Amendment No. 1 to FDOT Grant G1009 providing $4,000,000 for construction of the non-aeronautical building, and on April 21, 2021, the BOCC approved Amendment No. 2 providing final funding in the amount of$6,338,000 for construction costs for this project. 2469 INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: New 40 year agreement effective 04/01/2024 through 03/31/2064. STAFF RECOMMENDATION: Approval. DOCUMENTATION: Resolution- EOC Administrative Directive - Feb. 2024 final.pdf Resolution- EOC Administrative Directive - Exhibit A.pdf FINANCIAL IMPACT: $303,176.00 per year for year one plus annual CPI-U adjustment on term anniversary date. Funding is General Revenue Fund 001. 2470 RESOLUTION NO. -2024 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, PROMULGATING AN ADMINISTRATIVE DIRECTIVE FOR PURPOSES OF SETTING FORTH THE TERMS UNDER WHICH A PARCEL OF LAND, SUBJECT TO FAA GRANT ASSURANCES, AT THE FLORIDA KEYS MARATHON INTERNATIONAL AIRPORT WILL BE LEASED TO THE MONROE COUNTY DEPARTMENT OF EMERGENCY MANAGEMENT FROM THE MONROE COUNTY DEPARTMENT OF AIRPORTS. WHEREAS, during an event that has required the activation of the Monroe County (County)Emergency Operations Center(EOC)the County has historically converted the Board of County Commissioners commission chambers in the Marathon Government Center into the County's EOC; and WHEREAS,the converted commission chambers have been shown to have shortcomings during past emergency events up to and including the need to evacuate the EOC during Hurricane Irma; and WHEREAS, the County has had a long-standing need to construct a dedicated EOC facility, capable of among other things, withstanding a category 5 hurricane; and WHEREAS, Monroe County owns and operates the Florida Keys Marathon International Airport(Marathon Airport); and WHEREAS, the Director of Airports predecessor applied for and obtained a Florida Department of Transportation (FDOT) Aviation grant for purposes of assisting the County with funding for the construction of a non-aeronautical revenue generating facility; and WHEREAS, the FDOT aviation grant incorporates the Airport Improvement Program (AIP) grant assurances; and WHEREAS, under the AIP grant assurances, Monroe County is obligated to maintain a fee and rental structure at the Marathon Airport that will make the airport as self-sustaining as possible; and WHEREAS, the purpose of the grant was to provide the Marathon Airport with an additional revenue source in order to meet its obligation to be as self-sustaining as possible; and WHEREAS, the non-aeronautical revenue generating facility is designed to withstand a category 5 hurricane and can therefore be used as an EOC; and WHEREAS, FAA Grant Assurance 425, as well as the FAA's Policy and Procedures 2471 Concerning Use of Airport Revenue (64 Fed. Reg.7696 (February 16, 1999)),both require that the leasehold premises occupied by the Monroe County Emergency Management Department pay rent to the Monroe County Department of Airports; and WHEREAS, the Monroe County Department of Airports had an appraisal performed by Slack, Johnston and Maggenheimer, a real estate, appraisal and consultant firm, and the appraisal determined that the fair market value rent of the property should set at $2.00 per sq. ft per year; and WHEREAS, the purpose of this Agreement Directive is to set forth the duties, responsibilities and obligations of the respective departments for the lease of the parcel of property at the Marathon Airport. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA THAT: 1. Recitals. The foregoing recitals are true and correct and are hereby incorporated by reference. 2. Directive. The Monroe County Department of Emergency Management(MCEM, Lessee or Tenant) and the Monroe County Department of Airports (MCA or Lessor) are directed as follows. 3. Premises. MCA hereby leases approximately 151,588 sq. ft. located at the Florida Keys Marathon International Airport as shown on Exhibit A to be used by MCEM for construction of an Emergency Operations Center (EOC). The premises are leased in an as is condition. Upon completion of the EOC facility, the completed facility shall be an MCA asset and will be included in the leasehold premises. MCEM shall be entitled to use, in common with others authorized to do so, the Airport and appurtenances, together with all facilities, equipment and parking areas. 4. Term. The term of this agreement shall be forty (40) years commencing on April 1, 2024 and terminating on March 31, 2064. 5. Rent. The initial rent for the premises shall be $303,176 per year computed at two (2) dollars per square foot/per year. Thereafter, on the annual anniversary of the execution of this Agreement, rental rates will be increased by 3% or by an amount equal to the percentage increase in the CPI- U for all urban consumers for the previous calendar year, whichever is lower. In the event of a deflationary CPI, no adjustment in the rental rates will be made. 6. Lessee's Covenants a) Lessee MCEM shall be responsible for budgeting and obtaining any additional funds necessary for completing the construction of the EOC facility and shall provide all items and 2472 equipment needed for the operation. Unless otherwise extended, MCEM's items and equipment must be removed from the premises when this lease terminates. MCEM shall be responsible for budgeting and obtaining any funds necessary to install, maintain, operate, repair and replace any and all trade fixtures and other personal property useful from time to time in connection with its operation on the Airport. b) MCEM agrees to make no exterior architectural changes without the consent in writing of the Director of Airports, whose consent will not be unreasonably withheld. c) MCEM shall be responsible for budgeting and providing for all maintenance costs necessary for the upkeep of the EOC facility and leasehold premises and for all utility costs associated with the EOC facility and leasehold premises. 7. Public Records Compliance. Lessee and Lessor shall allow and permit reasonable access to, and inspection of, all documents, papers, letters or other materials in its possession or under its control subject to the provisions of Chapter 119, Florida Statutes, and made or received by the Lessee and Lessor in conjunction with this Agreement; and the Lessor shall have the right to unilaterally cancel this Agreement upon violation of this provision by Lessee. 8. Lessor's Covenants a) The Lessor does not make any representations or warranties regarding the premises beyond those set forth in this agreement. The taking of possession of the premises by the Lessee is conclusive evidence that the premises were in good and satisfactory condition when the Lessee took possession. In no event will the Lessor be liable for any building construction defects. b) In the event the premises are partially damaged by fire, explosion,the elements,the public enemy or other casualty,but not rendered untenable,then the premises will be repaired with due diligence by the County. The rent payable under this lease will be waived until the premises are fully restored by the County. In the event the County chooses not to restore the premises, the County will demolish any remaining structure and remove all structural debris from the premises after which MCEM will have no further obligations, duties or rights with regards to the premises. 9. Rights Reserved. Notwithstanding anything herein contained that may be, or appear to be, to the contrary, it is expressly understood and agreed that the rights granted under this agreement are nonexclusive and the Lessor herein reserves the right to grant similar privileges to another Lessee or other Lessees on other parts of the Airport. 10. Inspection of Premises by Lessor. Lessor and its authorized officers, employees, agents, contractors, subcontractors and other representatives shall have the right to enter upon the leased premises in order to inspect the leased premises at reasonable intervals during regular business hours (or at any time in case of emergency) to determine whether Lessee has complied and is complying with the terms and conditions of this agreement with respect thereto. 2473 11. Nondiscrimination. The tenant itself, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree that(1)no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination, (3)that the tenant shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. That in the event of breach of any of the above nondiscrimination covenants, Airport Owner shall have the right to terminate the lease and to re-enter and as if said lease had never been made or issued. The provision shall not be effective until the procedures of Title 49, Code of Federal Regulations,Part 21 are followed and completed, including exercise or expiration of appeal rights. In addition, Tenant agrees that there will be no discrimination against any person, and it is expressly understood that upon a determination by a court of competent jurisdiction that discrimination has occurred, this Agreement automatically terminates without any further action on the part of any parry, effective the date of the Court order. Tenant agrees to comply with all Federal and Florida statutes, and all local ordinances, as applicable, relating to nondiscrimination. These include but are not limited to: 1) Title VII of the Civil Rights Act of 1964 (PL 88-352) which prohibits discrimination on the basis of race, color or national origin; 2) Title IX of the Education Amendment of 1972, as amended (20 USC ss. 1681-1683, and 1685 -1686), which prohibits discrimination on the basis of sex; 3) Section 504 of the Rehabilitation Act of 1973, as amended (20 USC s. 794), which prohibits discrimination on the basis of handicaps; 4) The Age Discrimination Act of 1975; as amended (42 USC ss. 6101-6107) which prohibits discrimination on the basis of age; 5) The Drug Abuse Office and Treatment Act of 1972 (PL 92-255), as amended,relating to nondiscrimination on the basis of drug abuse; 6)The Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (PL 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; 7) The Public Health Service Act of 1912, ss. 523 and 527 (42 USC ss. 690dd-3 and 290ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; 8) Title VIII of the Civil Rights Act of 1968 (42 USC s. et seq.),as amended,relating to nondiscrimination in the sale,rental or financing of housing; 9) The Americans with Disabilities Act of 1990 (42 USC s. 1201 Note), as maybe amended from time to time,relating to nondiscrimination based of disability; 10) Secs. 13-101, et seq.,Monroe County Code,relating to discrimination based on race, color,sex,religion, disability, national origin, ancestry, sexual orientation, gender identify or expression, familial status or age; 11) Any other nondiscrimination provisions in any Federal or state statutes which may apply to the parties to, or the subject matter of, this Agreement. 12. Severability If any term, covenant, condition or provision of this Directive (or the application thereof to any circumstance or person) shall be declared invalid or unenforceable to any extent by a court of competent jurisdiction, the remaining terms, covenants, conditions and provisions of this Directive, shall not be affected thereby; and each remaining term, covenant, condition and 2474 provision of this shall be valid and shall be enforceable to the fullest extent permitted by law unless the enforcement of the remaining terms, covenants, conditions and provisions of this Directive would prevent the accomplishment of the original intent of this Directive. 13. Non-Reliance by Non-Parties. No person or entity shall be entitled to rely upon the terms, or any of them, of this Directive to enforce or attempt to enforce any third-party claim or entitlement to or benefit of any service or program contemplated hereunder. 14. Other Use. MCEM shall not use or permit the use of the demised premises or any part thereof for any purpose or use other than as set forth in this Directive. 15. Airport Protection. It shall be a condition of this Directive; i) That the lessor reserves unto itself, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the real property hereinafter described, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on, taking off from or operating on the airport. ii) That the Lessee expressly agrees for itself, its successors and assigns, to restrict the height of structures, objects of natural growth and other obstructions on the hereinafter described real property to such a height so as to comply with Federal Aviation Regulations, Part 77. iii) That the Lessee expressly agrees for itself, its successors and assigns, to prevent any use of the hereinafter described real property which would interfere with or adversely affect the operation or maintenance of the airport, or otherwise constitute an airport hazard. iv) That at such time in the future as deemed necessary by the Lessor, Lessor may enter and construct airport improvements (runways,taxiways, extensions, associated lighting,etc.)upon the premises provided notice is given to the Lessee at least 180 days prior to the start of construction. Should such development become necessary, the Lesssor agrees to pay all costs associated with the protection or relocation of Lessee's facilities to accommodate said airport improvements. 16. Property Rights Reserved. This Directive and all provisions hereof are subject and subordinate to the terms and conditions of the instruments and documents under which the Airport Owner acquired the subject property from the United States of America and shall be given only such effect as will not conflict or be inconsistent with the terms and conditions contained in the lease of said lands from the Airport Owner, and any existing or subsequent amendments thereto, and are subject to any ordinances, rules or regulations which have been, or may hereafter be adopted by the Airport Owner pertaining to the Marathon Airport. 2475 17. Paragraph Headings. Paragraph headings herein are intended only to assist in reading identification and are not in limitation or enlargement of the content of any paragraph. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of the Board held on the 21" day of February 2024. Mayor Holly Merrill Raschein Mayor Pro Tem James k. Scholl Commissioner Craig Cates Commissioner Michelle Lincoln Commissioner David Rice (SEAL) BOARD OF COUNTY COMMISSIONERS ATTEST: KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA BY BY As Deputy Clerk Mayor Holly Merrill Raschein NROE GOUNTY ATTOnNE r'' ... AfPROVE FOO R 4A P CI J. A0G-- Rates 2/13/24 2476 LLVZ tin Oppm RUN h 'o. - P OplOp gg gC Sg fag gg a S a F N HIM! go 2,1 g�aaa � In a°a: 8 >^ nease•a4•e aea.ie•.m� °� ,s 1 6 - d / a lan. s o� �m E > p$ W w 0.zKUz * 1 ,v BZ ,4 EEEd Diy F,ryd ¢" x a s SRIM r Y > e ml \ 1 \ o' j✓ e " s " .r v " z � R no=° �Q / � j'^ n a / a y / e�§3i`agP°aka x M e� r a w 4 a HIS g " } d ge=��e£��d��e e�� W a ! i aN Liz Yongue From: Gomez-Krystal <Gomez-Krystal@MonroeCounty-FL.Gov> Sent: Tuesday, February 20, 2024 2:45 PM To: Ballard-Lindsey; County Commissioners and Aides; Kevin Madok; Pamela G. Hancock; Senior Management Team and Aides; Liz Yongue; InternalAudit Cc: Gastesi-Roman; Shillinger-Bob; Williams-Jethon; Cioffari-Cheryl; Livengood-Kristen; Rubio-Suzanne; Pam Radloff; County-Attorney; Allen-John; Danise Henriquez; Saenz- Stephanie; Hurley-Christine; Rosch-Mark; Gambuzza-Dina; Beyers-John Subject: Item 19 BOCC 02/21/2024 REVISED ITEM WORDING & BACKUP Attachments: EOC appraisal.pdf, Resolution - EOC Administrative Directive - Feb. 2024 final stamped.pdf Follow Up Flag: Follow up Flag Status: Flagged Good Afternoon, Please be advised,the agenda item wording and backup have been revised for item 19. "AIRPORTS:Approval ofResolution promulgating an administrative directive for the purpose ofsetting forth the terms under which Monroe County shall administratively transfer funds for a parcel of land, subject to FAA grant assurances, at the Florida Keys Marathon International Airport. will be leased to the no n„^_e Sincerely, Executive Administrator Monroe County Administrator's Office 1100 Simonton Street, Suite 2-205 Key West, FL 33040 (305)292-4441 (Office) (305)850-8694(Cell) Courier Stop#1 Notary Public w.r onryec_ u�n1yy: .....gpy gqjz..- Y .�.. _rn groecou�_n�.Y..-.�..:. .Y. PLEASE NOTE: FLORIDA HAS A VERY BROAD RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO OR FROM THE COUNTY REGARDING COUNTY BUSINESS ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC AND MEDIA UPON REQUEST. YOUR EMAIL COMMUNICATION MAY BE SUBJECT TO PUBLIC DISCLOSURE. 1 S'LA w✓�" JOHNSTON ON MAGENHEiMER REAIL.ESTATE APPRAISERS&CONSULTANTS 7245 S.W.87 AYENUE,SUITE 800 MIAMI, FLORIDA SS 17S APPRAISAL OF REAL PROPERTY ANNUAL FAIR MARKET RENT FOR +/- 3.48 ACRES LOCATED AT THE FLORIDA KEYS MARATHON INTERNATIONAL AIRPORT (MTH), CITY OF MARATHON, MONROE COUNTY, FLORIDA APPRAISAL REPORT SJM FILE: 21909 PREPARED FOR MR. JOHN MAFERA REGIONAL DIRECTOR OF AVIATION MCFARLAND-JOHNSON, INC. 49 COURT STREET, SUITE 240 BINGHAMTON, NEW YORK 13901 -AND- MR. RICHARD STRICKLAND DIRECTOR OF AIRPORTS MONROE COUNTY 3491 SOUTH ROOSEVELT BOULEVARD KEY WEST, FL 33040 1 SLACK RN�JOHSTON 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) November 16, 2021 Mr. John Mafera -And- Mr. Richard Strickland Regional Director of Aviation Director of Airports McFarland-Johnson, Inc. Monroe County 49 Court Street, Suite 240 3491 South Roosevelt Boulevard Binghamton, New York 13901 Key West, Florida 33040 RE: Appraisal Report—Annual Fair Market Rental for +/- 3.48 Acres Located at the Florida Keys Marathon International Airport (MTH) City of Marathon, Monroe County, Florida SJM File: 21909 Dear Messrs. Mafcra and Strickland: At your request, we have prepared an appraisal report of the annual fair market rental for a parcel of non-aviation land at the Florida Keys Marathon International Airport (MTH) as of July 9, 2021, the date of valuation and property visit. MTH is a general aviation airport owned and operated by Monroe County. The subject property is considered by MTH to be non-aviation property due to its location at the airport. Based on prior agreement with the client, this analysis is based on the assumption the site is available for development of a non-aviation industrial/office type use. The subject property is located at Mile Marker 51 near the northeast corner of Overseas Highway and Aviation Boulevard, which is at the west end of the airport. The subject property is a vacant parcel that consists of about 3.48 acres of scarified/developed land. The subject property is zoned Airport and is designated as Airport according to the City of Marathon Future Land Use Map. The subject site is proposed to be developed by Monroe County for an Emergency Operations Center. For valuation purposes we have assumed the proposed industrial/office type use would be permitted. 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 John Mafera and Richard Strickland November 16, 2021 The appraisal report states our opinion of annual fair market rent, 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. 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 Flu, SARS, MERS, EBOLA and HIV/AIDS) it is anticipated the current pandemic will pass in time; however, the extent of the economic damage remains to be seen. Based upon available information, this appraisal is premised upon the extraordinary assumption that the Covid-19 virus will not have a measurable long-term value impact on the property that is the subject of this appraisal. The following report contains the results of our investigations and the explanation of the approaches to value. Respectfully submitted, SLACK, JOHNSTON & MAGENHEIMER, INC. 44W10e__ Andrew H. Mag enheimer MAI CERT.GEN.RZ 1073 3 SI_.AC,K JOHNSTON MAGENHEIMI=R 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..............................................................................I I LEGAL DESCRIPTION..........................................................................................................I I OWNERSHIP AND HISTORY OF THE PROPERTY ..........................................................I I PURPOSE, INTENDED USE AND DATE OF THE APPRAISAL.......................................11 DEFINITION OF VALUE AND INTEREST APPRAISED ..................................................12 SCOPE OF THE APPRAISAL................................................................................................13 EXPOSURE AND MARKETING TIME................................................................................14 NEIGHBORHOODDATA......................................................................................................15 DESCRIPTION OF THE SITE................................................................................................19 REAL ESTATE TAX ANALYSIS..........................................................................................20 LAND USE AND ZONING ....................................................................................................20 HIGHEST AND BEST USE....................................................................................................23 VALUATION PROCESS ........................................................................................................25 SALES COMPARISON APPROACH-FEE SIMPLE LAND VALUE...............................26 INCOME APPROACH - ANNUAL MARKET RENT ESTIMATE......................................32 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.............................................45 4 SLKC- K JOHNSTON MAGENHEIMI=R SUMMARY OF SALIENT FACTS AND CONCLUSIONS Property Appraised: +/- 3.48 acres located at the Florida Keys Marathon International Airport (MTH), City of Marathon, Monroe County, Florida Property Type: Assumed vacant land 2020 Real Estate Taxes: RE Number: 00104500-000100 and a portion of 00 10 1 1 60-000000 Taxes: $0 Exempt Ownership: Monroe County 1100 Simonton Street, Suite 205 Key West, Florida 33040 Interest Appraised: Annual Fair Market Rent Land Area: 151,588 Square Feet; 3.48 Acres Improvements: None Land Use: Airport; City of Marathon Zoning: Airport: City of Marathon Highest and Best Use: Industrial/Office type uses Date of Valuation: July 9, 2021 Date of Report: November 16, 2021 Annual Fair Market Rent: (1) $2.00 Per Square Foot/Year Note (1): The rental rate is on a net basis with the tenant responsible for all expenses associated with the property. 5 SNACK JOHNSTON MAGENHNEIMER AERIAL PHOTOGRAPH OF THE SUBJECT PROPERTY � v i a r � Y ,y / r l / Y Source: Monroe County Property Appraiser's Office For illustrative purposes, not to scale; approximate boundaries Note: Building has been demolished as of December, 2020 6 SNACK JOHNSTON MAGENHNEIMER 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 personal interest with respect to the parties involved. - we have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. - our engagement in this assignment was not contingent upon developing or reporting predetermined results. - compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - 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 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.RZ13s6,provided significant real property appraisal assistance to the person signing this certification. - we have not performed services regarding the subject property in the past three years. - the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. - as of the date of this report, Andrew H. Magenheimer, has completed the continuing education program for Designated Members of the Appraisal Institute. SLACK, JOHNSTON&MAGENHEIMER,INC. 49owle-- Andrew H. Magenheimer, MAI CERT.GEN.RZ 1073 7 Sl-.,iACKJOHNSTON MAGENHEIMER 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. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others has been gathered from sources deemed to be reliable, however, no warranty is given for its accuracy. 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 no survey of the property, and assume no responsibility in connection with such matters. 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. 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. 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 SACK JOHNSTON MAGENHNEIMER 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 disseminated to the public through advertising,public relations,news, sales, or other media without the written consent and approval of the appraiser. The use of this report in any public offering or syndication document is specifically prohibited. 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 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. Appraisal Assumptions 16. This appraisal is based on the assumption the subject property is free and clear of any environmental contamination associated with past and present airport use. The analysis of environmental contamination is beyond our expertise and Phase I and II environmental audits are recommended for the property. The existence of environmental contamination could have a significant effect on the value conclusions within this report. 9 SACK JOHNSTON MAGENHNEIMER 17. We were not provided a surveyor legal description for the subject property. The site area relied upon herein was provided by the client. Any difference in size could have a material impact on our conclusions and require additional analysis. 18. Based on prior agreement with the client,this analysis is based on the assumption the site is available for development of a non-aviation industrial/office type use. If the property is not permitted for industrial/office type uses the value conclusions are subject to change and would require further analysis. Acceptance or use of this report constitutes acceptance of the preceding conditions. 10 SACK JOHNSTON MAGENHNEIMER IDENTIFICATION OF THE PROPERTY The subject property is located at Mile Marker 51 near the northeast corner of Overseas Highway and Aviation Boulevard, which is at the west end of the airport. The subject property is a vacant parcel that consists of about 3.48 acres of scarified/developed land. The subject property is zoned Airport and is designated as Airport according to the City of Marathon Future Land Use Map. The subject site is proposed to be developed by Monroe County for an Emergency Operations Center. The subject property is considered by MTH to be non-aviation property due to its location at the airport. Based on prior agreement with the client, this analysis is based on the assumption the site is available for development of a non-aviation industrial/office type use. LEGAL DESCRIPTION As noted, a survey with a legal description for the subject property was not provided or reviewed. The subject property is located at the southwest corner of the Florida Keys Marathon International Airport in an area designated for non-aviation development. The site parameters were provided by the client and it is our understanding the boundaries will be finalized based on the future planning. OWNERSHIP AND HISTORY OF THE PROPERTY The subject property is located at the Florida Keys Marathon International Airport. The airport is owned by Monroe County, 1100 Simonton Street, Suite 205, Key West, Florida. Monroe County has owned the airport in excess of 10 years and the property is not listed for sale or lease. PURPOSE, INTENDED USE AND DATE OF THE APPRAISAL The purpose of this appraisal is to develop and report an opinion of the annual fair market rent for the subject property. The date of valuation is July 9, 2021 and the date of the report is November 16, 2021. It is our understanding that the intended use of the appraisal is to assist the owner in negotiating a development lease for the subject property. The intended users of this report are the client, McFarland-Johnson, Inc. and Monroe County. 11 SACK JOHNSTON MAGENHEIMER 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 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 whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in 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." Leased Fee Interest is "a freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease)". 12 SACK JOHNSTON MAGENHEIMER Leasehold Interest is the "interest held by a lessee (tenant) through a lease transferring the rights of use and occupancy for a stated term under certain conditions." Market Rent is "the most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs)." 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 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." SCOPE OF THE APPRAISAL The scope of this appraisal report is defined by the purpose, which is to estimate the annual fair market rent for a 3.48-acre site located at the Florida Keys Marathon International Airport (MTH). The assignment included a visit to the subject property and surrounding neighborhood, which was made on and a review of the information provided by the client. The client provided the conceptual boundary of the subject parcel and the MTH Airport Layout Plan. Subsequent to our visit, research was conducted in support of an estimation of the highest and best use, as of the date of valuation. The highest and best use analysis considers all physically possible, legally permissible and economically feasible uses to which the property can be put as vacant and improved. Based on the scope of the appraisal, only the highest and best use as vacant was considered in our analysis. This analysis is based on the assumption the site is vacant and available for development of a non-aviation industrial/office type use. After concluding the highest and best use, the valuation methods were considered. 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. As noted, the scope of the appraisal is to estimate the annual fair market rent of the subject site. There are two generally accepted methods of estimating annual market land rent. One is by direct comparison of rentals paid and asked for similar properties, consistent with the definition of market rent. The second method is by direct capitalization of the land value, in which the market annual land rent is estimated by first estimating the underlying land 13 SACK JOHNSTON MAGENHNEIMER value and then applying a market derived overall capitalization rate to arrive at annual market rent. Due to the limited number of comparable land leases, our analysis used the land capitalization approach to estimate market rent for the subject site. As such, the annual market land rent for the subject site was estimated through a capitalization process, by applying a market derived capitalization rate to the estimated land value of the subject site. Research was conducted for land sales consistent with the assumed zoning for the subject site and containing close to one acre or more. The sales included in this report are representative of the best available market data. Research of the selected sales included, to the extent possible, a visual inspection, reviewing the deed and confirming sale details with one or more of the parties to the transaction, or their representatives. Only those sales considered reasonably similar to the subject site were included, thus reducing the number of adjustments required. 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 the final conclusion of value. 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. A review of current market activity for vacant land in the Florida Keys, as well as conversations with real estate brokers active within this market, was performed in order to estimate an exposure time for the subject property. Most brokers indicated certain sectors of Monroe County's real estate market, including 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 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 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 14 SNACK JOHNSTON MAGENHNEIMER and/or building obstacles. For this reason, we have estimated a marketing time of up to 12 months for the subject property. NEIGHBORHOOD DATA The subject property is located in the Middle Keys region of Monroe County. Key West is the southernmost island in the archipelago known as the Florida Keys, a chain of over 800 subtropical islands off the southern tip of Florida's mainland. The Keys primarily consist of a network of 30 inhabited coral islands covered with tropical vegetation arching southward between the shallows of Florida Bay on the north side and a barrier reef of living coral lying in the Atlantic Ocean to the south. The islands span a distance of over 100 miles. The climate is warm year-round. Monroe County covers a total of 1,034 square miles of land area, and comprises two geographically distinct areas. The northern part of the county is at the southwestern end of the mainland of Florida, and consists primarily of a portion of the Everglades with a few inhabitable areas. The second area is the true Keys, a series of islands beginning with North Key Largo and extending southwesterly 115 miles. Key West, the end of the island chain, is located approximately 160 miles southwest of Miami, 90 miles north of Cuba, and is the southernmost point in the continental United States. Key West is also the county seat for Monroe County. A map of Monroe County is provided below. h6rk E00i lade, khHOi P - ✓' Tail y I d ti, ,A ' 'W 15 SNACK JOHNSTON MAGENHNEIMER As of 2020, Monroe County was populated with an estimated 77,823 residents. The majority f the population is divided among the various areas of unincorporated Monroe County, with the largest population group in the Key West census division. The City of Key West proper comprises approximately 30% of Monroe County with a population of 24,868 in 2020. The City of Marathon had a population of 9,097 and the Village of Islamorada had a population of 6,400. The overall population in the Florida Keys has historically increased slightly each year since the 1940's; however, the 2010 census figures showed a slight decrease. The decrease is likely due to the exit of permanent residents, who were replaced by second home owners and transient residents. A decrease from 2017 to 2018 was also noted, likely due to the displacement of many residents due to Hurricane Irma in 2017. Overseas Highway, (U.S. Highway 1) is the only access from the mainland, by car, to all destinations in the Keys. It is the dominant commercial corridor throughout the county. Development along the highway includes a mixture of commercial, residential, industrial and tourist-related uses. While significant portions are zoned for commercial use, there are also many untouched tracts which have been purchased or targeted for purchase for natural preservation. As a result of the difficulties in gaining approvals for new development, the demand for large undeveloped tracts of land is almost non-existent in the private sector. Most new development takes place on already scarified sites or in the form of replacement of pre- existing structures. Most purchases of large tracts of land are made by governmental or conservation groups for preservation. By definition, a neighborhood is a group of complimentary land uses. Typically, its boundaries can be fairly easily defined, be they physical, social, economic or governmental in nature. The unique geographical aspect of the Florida Keys creates land uses and neighborhood characteristics throughout the archipelago which are generally atypical. As mentioned previously, 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. Land uses are somewhat limited by the geography of Monroe County, and many uses take advantage of the natural resources, with tourism and commercial/sport fishing dominating the local economy. The concept of complimentary land uses are often overruled by constraints resulting from the odd configuration or limited availability of developable land. For these reasons, neighborhood boundaries are lesser defined, with incongruent uses existing throughout much of the county's developed areas. The subject property is located on Vaca Key in the City of Marathon. The City of Marathon was incorporated in 1999. Its boundaries extend from the east end of the Seven Mile Bridge (approximately Mile Marker 47) to the west end of Tom's Harbor Bridge (approximately Mile Marker 60). The City includes the islands of Boot Key, Knight Key, Hog Key, Vaca 16 SNACK JOHNSTON MAGENHNEIMER Key, Stirrup Key, Crawl and Little Crawl Keys, East and West Sister's Island, Deer Key and Fat Deer Key, Long Pine Key and Grassy Key. Marathon is one of the more populated areas of the Keys and has a higher concentration of commercial development than many other areas of the Keys. Commercial development includes a wide variety of motels, restaurants, shopping centers, drug stores, supermarkets, as well as a Home Depot center. Boating, fishing and water sports are a big part of the economy in the Florida Keys. According to statistics published by the Department of Motor Vehicles, there are approximately 29,000 registered vessels in Monroe County. This indicates almost 40% of the total population of Monroe County have a registered vessel. In all likelihood, there are probably significantly more vessels in Monroe County than registered due to the number of second home owners from neighboring counties to the north who register their vessels in Miami-Dade or Broward Counties. The Florida Keys Marathon International Airport is a mostly general aviation airport, and one of only two in the Florida Keys. Although there are other air strips in the Keys, Marathon and Key West are the only two airports providing commercial flights in and out of the Keys. Based on our visit to the area, there appears to be significantly more new construction taking place than in years prior. New construction includes both commercial and residential components. 17 SNACK JOHNSTON MAGENHNEIMER Marathon y�y FLOR16~ I ' ar ke, c, ,v 0mi 1 2 3 4 5 is SLACK. JOHNSTON MAGEN'N' EIMER DESCRIPTION OF THE SITE Location: The subject property is located near the northeast corner of Overseas Highway and Aviation Boulevard at Mile Marker 51, in the City of Marathon, a municipality of Monroe County, Florida. Shape: Assumed mostly rectangular Land Area: 151,588 square feet 3.48 acres Frontage/Access: The subject property has frontage and access from Aviation Boulevard. The property has visibility from Overseas Highway; however, there is an airport access road between the subject and Overseas Highway preventing direct access. The property does not have water frontage. Habitat/Topography: Based on the information available, the habitat on the subject property consists of "developed land" and the site is mostly scarified. Flood Insurance: Zone AE (Elevation 7 and 8). National Flood Insurance Community Panel Number 12087C1381K, 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. Environmental Study: An environmental risk study was not provided for our review. This appraisal report is based on the assumption that no conditions exist that would adversely affect the utilization or marketability of the property. Mineral Rights: It is assumed there are no known oil, gas and mineral reservations. 19 SACK JOHNSTON MAGENHNEIMER REAL ESTATE TAX ANALYSIS The subject property is located in the City of Marathon and would be subject to city and county ad valorem taxes on real property if privately owned. 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 subject property is a portion of the folios shown below. The property is tax exempt because of its governmental ownership. Monroe County Market Value a.s,sessrrrerrut TetA Felix, # Land Improvements, Total Assessment Taxes, Total $1,301,435 $10,584,844 $11,8,8,5,279 11,886 279 $0.010 LAND USE AND ZONING Future Land Use According to the City of Marathon Future Land Use Map, the subject property has a land use designation of Airport. A copy of the land use map is presented on the following page. According to the Marathon Comprehensive Plan: ,,,➢firz The principal pUrperse of lie Airport ➢ istr;ict future land, usc category as to provide for the landing and take-o➢'I`of arrcrall, both public rarer.➢ private" and tr:a provide for their storage and rr-uai:nten aric and the uappaurtenant area uhich is, used, d'(.:ar rr;rpr rt buildings or other airport facillitles, rraglits-of- ^gay, or rat➢ er appropriate public utscs,. Residential uses arc not pen-nilt d, §➢ 3,.3 U 77(6)lrrle . F&. 20 SLACK JOHNSTON MAGENHNEIMER I' ��EL KEY r - i rr l s _ VACA KEY BIGHT 1 i Zoning The subject property is located within the jurisdictional boundaries of the City of Marathon and is zoned Airport. According to the Marathon Land Development Code, Airport is "intended to establish areas appropriate for airport uses and other uses that are restrictive to the general public, designated within the Airport future land use category on the Future Land Use Map". r � � ,+r�✓V�4 ip�Pl 1. s k% � x k, 4 4 �+�', ,P"y y^.. ✓ � I YY i F ITIt F. � it ll� ii i III ��.. 21 SLACK JOHNSTON Building Permit Allocation System (BPAS and CBPAS) The City of Marathon's Building Permit Allocation System (BPAS) regulates both residential and commercial development in the City. The commercial system is referred to as CBPAS. Permits for both commercial and residential development are issued according to a point allocation system. There are separate allocations for commercial, market rate housing and affordable housing. Points are allocated for such factors as affordable housing, utility availability to the site, dwelling design criteria and other factors. Applications with the greatest number of positive points are awarded the permits. Negative points are assessed for sensitive habitats, undisturbed areas and areas where endangered species are found. For residential development,both affordable and market rate BPAS allocations are awarded two times a year. Pre-existing improvements provide the site with the ability to be developed as a knockdown- replacement without going through the CBPAS or BPAS system of allocating permits. Airport Layout Plan (ALP) According to the June, 2020 Airport Layout Plan for MTH, the subject property is designated as "non-aeronautical use building" west of the Runway Protection Zone (RPZ) for Runway 7-25. The ALP provides for a variety of permissible uses based on the needs of the airport. The proposed Monroe County Emergency Operations Center (EOC) is considered an allowable use. clunm , �. #� �" � " � yaw.�„ ,. , „i�v, I�w uu��•r,r^� � ru w �, Vq Im " rN ' I h1M i ' arrY,«ww,tu "" wwwiw,u .....— v N e All v� 1 �r n _.... y p 1 ry�p� y M'NNIW�g T'A�116 i H 94111 Mir „ x m l n uW µ�..,;i i i am�✓ �i. a �'"� w�" �� J �� r wu �� K ,�W " ' d"r r�� FUE IFA ,.�(ti 22 SLACK. JOHNSTON MAGENHEIMER 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." In estimating highest and best use, there are four stages of analysis: 1. Possible Use - normally dictated by physical constraints. 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 restrictions that may exist. 3. Feasible Use - which possible and permissible uses will produce a net return to the 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. It 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. This analysis is based on the assumption the site is vacant and available for development of a non-aviation industrial use; therefore, in arriving at the estimate of highest and best use, the property was analyzed as though vacant. 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. Physically Possible: The property is located in the Middle Keys region of Monroe County in Marathon near Mile Marker 51 of Overseas Highway. The subject property consists of 3.48 acres of vacant land located at the Florida Keys Marathon International Airport that has been designated for non-aviation use. The subject property has road frontage and access and is mostly scarified land. It is not waterfront. Legally Permissible: Permissible or legal uses are those permitted by zoning and land use regulations. The site is zoned Airport and is also designated as Airport according to the City 23 SACK JOHNSTON MAGENHNEIMER of Marathon Future Land Use Map. As 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 subject property is considered by MTH to be non-aviation property due to its location at the airport. Based on prior agreement with the client, this analysis is based on the assumption the site is available for development of a non-aviation industrial/office type use. Feasible or Maximally Productive Use: This analysis is based on the assumption the site is vacant and available for development of a non-aviation use. The proposed industrial/office type use would be feasible use based on the lack of available similar uses in the area. Conclusion: Based on the analysis above, we estimate that the highest and best use of the subject property would be consistent with the proposed industrial/office type use. 24 SNACK JOHNSTON MAGENHNEIMER 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 (discounted cash flow). The sales comparison approach provides an indication of value based on sales of properties considered similar. The cost approach provides an indication of the value of a property represented by the reproduction cost of the existing improvements, less accrued depreciation, to which is added the land value. The subject property is considered by MTH to be non-aviation property due to its location at the airport. Based on prior agreement with the client, this analysis is based on the assumption the site is available for development of a non-aviation industrial/office type use. As noted, MTH intends to lease the subject site to Monroe County for the construction of an Emergency Operations Center (EOC). Our valuation analysis is based on the non- aviation industrial/office type use as proposed under a long-term development lease scenario. There are two generally accepted methods of estimating annual flair market land rent. One is by direct comparison of rentals paid and asked for similar properties, consistent with the definition of market rent. The second method is by direct capitalization of the land value, in which the market annual land rent is estimated by first estimating the underlying land value and then applying a market derived overall capitalization rate to arrive at annual market rent. Our research and analysis to estimate the market rent for the subject site began with a search for comparable ground lease rentals. Based on our research, there are limited transactions. Due to the limited number of comparable long-term ground land leases, our analysis used the land capitalization approach to estimate the market rent for the subject site. Market annual land rent is estimated through a capitalization process, by applying a market derived capitalization rate to the estimated site value. The value of the subject site was estimate using the sales comparison approach. The annual market rent was by applying a capitalization rate derived from similar investments. In the following sections, the land valuation of the subject site will be followed by an estimate of annual market rent using the direct capitalization method. 25 SNACK JOHNSTON MAGENHNEIMER The final step in our analysis is a reconciliation of the appraisal methods used. The reconciliation reviews and re-examines each of the approaches to value that were employed. Consideration is given to the type and reliability of data used and the applicability of each approach. The quantity and quality of data used and the reliability of their value indications are the basis for the final conclusion of value. SALES COMPARISON APPROACH—FEE SIMPLE LAND VALUE 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. 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 property. The basic steps involved in the application of this approach are as follows: 1. Researching recent relevant property sales and current offerings throughout the competitive area. 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. 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. 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. Our research for comparable land sales extended from January, 2020 to the effective date of this appraisal. The search concentrated on vacant sites located in the Florida Keys suitable for industrial uses and commercial uses. Typically, land sells based on units of comparison particular to the property type (e.g., price per square foot, price per acre, price 26 SNACK JOHNSTON MAGENHNEIMER 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 July, 2020 and March, 2021. 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 $22.67 to $40.46 per square foot. The land sales range in size from 0.94 to 3.00 acres. A summary chart and location map follow. Detailed information of the land sales is presented in the addenda. sUINTNL,iRY OF SALES, Date of Total Site Total Site Price Per No- address Sale, Sale Price area(SF)! area(AQ zoning Total 5F 1 111 Overseas Highivay Nov-20 $2,500,000 107,750 2.47 Industrial $23.20 Rockland Ivey 2 113 Overseas Highway Jul 2'0 $3,200,100 130,680 3.00 Industrial $24 49 Rockland Key 3 11150 Overseas HighwayMar-21 $1,6907000 41;770 0.96 Mixed $40.46 Marathon 4.e:se 4 Adjacent for 74430 Overseas I`v ar-21 $9257000 40,800 0.94 -Neighborhoad $22.67 Highway,Islamorada Commercial 27 S .ACKJOHNSTON MAGENHEIMER Sales Map red, �LQRII A MMIROE Gbifibeft,Lake Lake wyr War LaAo- 71 M.JaNko� �a�A t a lrntd t 9N Nft+ Qx1dN e K'B yAlr rbra 6 Key, 6forty rie'di . Prq�te�, wrxartl"I"itd Na b krey M�10, s�B�ua�ra w�rr � �point, iVNeN�N r "l Girrco lUlnit t e` ei J if'ieNNraru Ke P st. As, 1NW t ' 'A 0 mi 10 20 30 Copyright©antl(P)1988 2012 M I-soft Corporation ancllor its supp Ile rs All rights reserved http'fl—icrosoft ccnVstmM&r Certain mapping and direction data©2012 NAVTEQ_All rights reserver!The Data for areas Of Canada includes inforrnationtaken wth permissionimm Canadian authontil including'O HerM ajestythe Queen In Right cf Canatla,©Queen's P nhter for Ontano.NAVTEQ and NAVTEQ ON BOARD are trademarks of Ni.@ 2012 Tele Atlas NcrthAmerica,Inc.All rights reeervad Tale Atlas and Tell NorthAmerica are tra did marks ofTeleAtlas,Inc.©2012 by Applied Geographic 6olulious.All rights reserved.Portions OO Copyrght 2012 by Woodall Pugficabous Corp.All rights res-ed. 28 SLANCKJOHNSTON MAGENHEIMER 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. 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 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. 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 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 the property for redevelopment with a mini-storage facility and the buildings have been demolished. Sale 3 is located at 11150 Overseas Highway in Marathon. This site is currently improved with a building that was previously used as a Burger Key restaurant. The site contains 41,730 square feet(0.96 acre). The site is zoned Mixed Use. This sale took place in March, 2021. The sales price was $1,690,000 or $40.46 per square foot. This site also sold in June, 2019 for $1,100,000. According to the realtor, the existing building is in a state of disrepair and did not contribute to the overall value of the property. The broker indicated the buyer intends to demolish the building to make way for a new Circle K store and gas station Sale 4 is located 74430 Overseas Highway on Louver Matecumbe Key in the Village of Islamorada. This property contains approximately 42,800 square feet(0.94 acre). This site sold in March, 2021 for $925,000 or $22.67 per square foot. The property is zoned Neighborhood Commercial. This site was vacant at the time of sale. 29 SACK JOHNSTON MAGENHNEIMER 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. Terms of Sale: According to the grantor's representative, Sale 1 sold at a discount of at 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 4 were considered sold as arm's length transactions; therefore, no adjustments are required. Time/Market Conditions: The closed sales transpired between July, 2020 and March, 2021. The subject's market area is experiencing a surge in renewed interest by 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 upward trend is expected to continue into the near future. These sales are considered to be reflective of current market trends having taken place within the past 12 months and no adjustments are warranted. Location/Access: The sales were selected based on their locations in the subject market area, the Florida Keys. The subject property is located in the City of Marathon. Sales 1 and 2 are located on Rockland Key and are considered similar in terms of location and no adjustment is warranted. Sale 3 is located in Marathon and no adjustment is warranted. Sale 4 is located in the Upper Keys in Islamorada, but is considered similar in location. No adjustment is warranted. Size: Typically, smaller parcels sell for higher per unit prices than larger parcels, all other things being equal. A comparison of two sales on Big Pine Key tends to support this theory. A small site containing 0.36 acre sold for approximately 70% more than a site containing 4.00 acres on a per square foot basis. The subject property contains approximately 151,588 square feet (+/- 3.48 acres). Sales 1 and 2 are considered similar in size. Sales 3 and 4 warrant downward adjustment for their smaller site areas. 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 warranted. Sales 3 and 4, like the subject property, do not have environmentally sensitive areas and do not require adjustment for this factor. 30 SACK JOHNSTON MAGENHNEIMER Land Use/Zoning: This analysis is based on the assumption the site is vacant and available for development of a non-aviation industrial use. The sales are zoned for industrial and commercial uses. Sales 1 and 2 are similar and no adjustment is warranted. Sales 3 and 4 warrant downward adjustment for superior zoning. Shape/Configuration: The subject property is assumed to be mostly rectangular in shape. The sales are similar in shape and no adjustment is warranted. 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 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. Improvements/Buildings: It is our understanding the subject property will be made vacant. Sale 1 included a building in fair condition and the grantee intends to continue to use the building. Downward adjustment is warranted for 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 former fast food restaurant building that will be demolished. No adjustment is warranted. Sale 4 was vacant at the time of sale. 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 3/2021 3/2021 Price/Square Foot $23.20 $24.49 $40.46 $22.67 Market Conditions = _ _ _ Condition of Sale + Location Size Topography(Wetlands) + + Zoning Config./Shape Useable/Gross Area + + Improvements Overall + + 31 SLACK JOHNSTON N MAGENHNEIMER Sales 1 and 2 are most similar to the subject property in terms of use (zoning) 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. Based on the above, we have formed the opinion that the fair market land value of the subject property is estimated to be $25.00 per square foot, or $3,790,000, rounded (151,588 SF x $25.00/SF). INCOME APPROACH - ANNUAL MARKET RENT ESTIMATE There are two generally accepted methods of estimating annual market rent for real property. One is by direct comparison, as was previously applied in valuing the land. This method compares rental rates being paid for like properties, if available. The second method is by direct capitalization, in which the annual market rental rate is estimated by first determining the underlying land value and then applying a market derived overall capitalization rate to arrive at annual market rent. Land suitable for immediate development is more often purchased rather than leased long- term. Our research revealed no current information available regarding land leases for sites similar to the subject parcel. Since market derived capitalization rates for vacant land are more readily available, the land capitalization approach is the method relied upon. A major factor of consideration, in estimating annual market rent for land, is the relevant terms and conditions of the lease. Such factors as length of the lease term, whether or not renewal options are provided, whether the rent is flat or adjusted periodically, are all relevant factors. If adjusted, is the rent tied to CPI or are the rent increases stated or stepped'? Are the rent adjustments based upon periodic reappraisals? Is the lessee required to make any capital improvements? Are allowances given for same? As can be seen, lease terms can vary considerably and many of these factors can influence the rent a lessor is willing to accept, or a lessee is willing to pay. Of the above factors, the most critical, for larger parcels of vacant land, is likely to be the length of the term of the lease. Depending upon a lessee's intended use, a longer term may be required in order to amortize development costs for the planned improvements. If no substantial improvements are planned, both parties may find a shorter term acceptable. Given the scope of the bio-hazardous waste disposal facility being considered for the subject site, a relatively long term will be required by the developer. The airport authority is proposing to lease the subject parcel for a quasi-industrial use 32 SACK JOHNSTON MAGENHNEIMER (Emergency Operations Center). Rent is based on a capitalization formula. Capitalization rates are a relationship between the property's net income and value. The direct capitalization formula is as follows: Income /Rate = Value or Value x Rate =Income To estimate the capitalization rate, we analyzed recent ground lease sales of commercial and industrial parcels located within neighboring Miami-Dade County. The ground lease sales analyzed were for sites with long term established credit tenants (i.e., financial institutions, drugstore and restaurants) based on rental rates established at different times. The local area land capitalization rates range from 4.33%to 5.38%. It is noted that the land capitalization rates reflected by these ground lease sales involve national, creditworthy tenants. Upon discussion with several ground lease real estate brokers, on average industrial ground lease capitalization rates tend to be slightly higher than for retail depending on the quality of the tenant and the location of the real estate. Capitalization rates can range from 4.5% for credit worthy tenants to as high as 8.0% for non-credit worthy tenants. Slack, Johnston & Magenheimer conducts an annual survey of owners and operators of numerous general aviation airports throughout the state of Florida. Within this survey, the participants are asked how annual market rents are determined. Several respondents indicated that annual market rents were established by direct comparison. Overwhelmingly, the respondents stated that the method used was application of a capitalization rate to the market value of the land. The FAA lease review and specific lease requirements indicate a range of land capitalization rates of 8.0% to 12.0%. In addition, the RealtyRates.com, 2nd Quarter 2021 Investor Survey, reflected average land capitalization rates for a variety of property types which ranged from 5.79% to 8.24%, with an average for all property types of 6.88%. 33 SACK JOHNSTON MAGENHNEIMER 11 1 LAND L,EOk, V,7r0V*r,4'T%P0, mo*, �),'Avw "1011fit, 1, ,A# Apartrmme nts 1.96". 3,22% 5.&,0 4. : 9 72% 6.901 1µ1*a1'lh CaretSe Dior Heyusing 2..00 J.rN�% .40 4.60%, 10..46;,, TWQ IradwWaI 2,,00,,. 6.1 4,% 4,601n 962% 7A,% Lodging ..OW. 14..U'% 90% 4.I60%' 14919 7. 9% Mobile H'ommeFP',VNJa* 1 3,' 111. 6, 7"M 413% 797M i Office 1.37% 9;.Ot'% 5.79:% 4.57% 9. p17: 6.797x. Restaur W 2,11v. 14 N,% 7, 7;� 5,ft% 14 76% 9,97. t it UW,' 10.20X .:1% 4. 0% 10-70V 7.31N:` O" tora e ,Olin. 9 45,. 7 2 9"4 4,60'% 9 95% 1123% Spo?c,i>l P Urplose 2.58% 15,9/ 9.24 r. 5.85%, 17.43% 9.58%, .0,11 Prop times 1 73,,, 15 9% 0 99 4,1 5.187". T74 'twt -oet qX ;I J kk o r� k O 1' �lk a;rc s u.MT Having analyzed the above sources of market data and in estimating the current annual market rents for the subject site, we have concluded a land capitalization rate of 8.0% is considered appropriate based on a triple-net development lease where the tenant is responsible for all expense. Based on this analysis,we have estimated the fair market annual rent at $2.00/SF ($25.00/SF land value x 8.0% capitalization rate) or $303,200/year, rounded (151,588 SF x $2.00/SF/Year) for the 3.48-acre subject property. The above market rent estimate is based on a triple-net lease, with the tenant responsible for all property expenses. It is recommended the landlord include a provision within the lease for incremental adjustments to the initial rent. The annual rents should be adjusted based on changes in an acceptable index (CPI-U), with provisions for reappraisal to reestablish market rents at future increments of every 5 to 10 years. Based on the scope of the appraisal, the site has been valued under the hypothetical condition it is "vacant and ready for development." As such, the appraisal did not include a visit to the existing improvements and did not consider any potential contributory value, if any, of the existing improvements or their potential demolition costs. Our valuation analysis is based on the assumption the site is available for development of a non-aviation industrial use. 34 SNACK JOHNSTON MAGENHNEIMER RECONCILIATION AND FINAL VALUE ESTIMATE The subject property consists of 3.48 acres at the Florida Keys Marathon International Airport (MTH). MTH is a general aviation airport owned and operated by Monroe County. The subject property is considered by MTH to be non-aviation property due to its location at the airport. Based on prior agreement with the client, this analysis is based on the assumption the site is available for development of a non-aviation industrial/office type use. As noted, MTH intends to lease the subject site to Monroe County for the construction of an Emergency Operations Center (EOC). Our valuation analysis is based on the non- aviation industrial/office type use as proposed under a long-term development lease scenario. Our research and analysis to estimate the market rent for the subject site began with a search for comparable ground lease rentals. Due to the limited number of comparable long-term ground land leases, our analysis used the land capitalization approach to estimate the market rent for the subject site. Market annual land rent is estimated through a capitalization process, by applying a market derived capitalization rate to the estimated site value. The value of the subject site was estimated using the sales comparison approach. The annual market rent was by applying a capitalization rate derived from similar investments. In the following sections, the land valuation of the subject site will be followed by an estimate of annual market rent using the direct capitalization method. Based on our investigation and analysis, we have formed the opinion that the fair market value rent for the subject property as of was $2.00/SF/Year, or $303,200/year, rounded (151,598 SF x $2.00/SF/Year) for the +/- 3.48-acre subject property. 35 SACK JOHNSTON MAGENHNEIMER ADDENDUM A - PHOTOGRAPHS OF THE SUBJECT PROPERTY 0 View of the subject property from Aviation Boulevard. r P Additional view of subject property from airport access road. 36 SACK JOHNSTON MAGENHNEIMER ADDENDUM B—LAND SALES SALE I pill r m!�rn,llJ ( �o an Alt f% a JIMi. .'( ,...ykm.�,,.. Property Type: Industrial land and building Location: I I I Overseas Highway, Rockland Key, Monroe County, Florida Folio Number: 00122070-000203 Legal Description: Lengthy legal retained in appraisal file. ORB/Page: 3056/1207 Grantor: Rockland Investment Corporation, Inc. Grantee: Star of the Sea Foundation, Inc. Land Area: 107,750 Square Feet; 2.47 Acres Access: Unnamed access road (easement) Land Use: Industrial; Monroe County Zoning: Industrial; Monroe County 37 SACK JOHNSTON MAGENHNEIMER 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. Date of Sale: November, 2020 Property Rights Conveyed: Fee simple interest Terms : Cash to seller Conditions of Sale: Arm's length transaction (see comments) Prior Sale: No prior sales reported Present Use: Industrial uses Highest and Best Use: Industrial uses Intended Use: Continued industrial usage 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 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. i/ r�hr itmm.� lr��/%��/��/��/ //// ! r llr9r�i/r rr( /�ir l�i �7✓r r/f� �i/�/r�i%il rr�r// f rir % h��fjr ri/ /i�%��A ^✓✓�i/j��f �� //i��%ri�%'�r��/ii;/ii�i/�i�///,;r „ ,,, r l/✓/�fullh?frdy��1 3% 38 SLACK JOHNSTON MAGENHNEIMER SALE 2 f r k 6 I %ii ✓�� p a, rim � 070.000,101 41 , 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. Grantee: Key West Property Holdings, LLC Land Area: 130,680 Square Feet; 3.00 Acres Access: Unnamed access road (easement) Land Use: Industrial; Monroe County Zoning: Industrial; Monroe County 39 SACK JOHNSTON MAGENHNEIMER 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 Terms : Cash to seller Conditions of Sale: Arm's length transaction Prior Sale: No prior sales reported Present Use: Industrial uses Highest and Best Use: Industrial uses Intended Use: Possibly mini storage 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. ✓�„ �iiii �%jai//,,,; ///fir ti y , ✓ ( .,;i�/ ryl /i ,,�;,.,,r i �/i/��//e �c,r= / U ,'�✓/✓///i/L//�l�i�/� ��i,✓1��/��11��4�iJl r ( N ��✓ l/,r /� �,✓UHF y a�/ f r �i Fii�i/0� !f/%� ,r r 40 SNACK JOHNSTON MAGENHNEIMER SALE 3 v�'r �low ��, t �� "� ✓ /r„✓/i/I ( i � a o „vy.� Js; � 1 ✓i r f � r r9 1 rr/ /�/%r p✓% ri r � i � Orr�1 r %r �✓/r� � r Ir 7 " �Y i r H v � r liii%%//%r%/yl�i�'�' /l/%/�i%G��a✓��/I/GV row ,iP r '� "uMr� % ✓r/i%%i%%�.,y.f�7`�lfrir ,rsanw�w,re/l//l✓//%��i�%fl v,r r�yi !�i0'�'+ ffl(/ ry i rf j%f 2�i` y OG//0/✓��(�JAo r� r� Property Type: Commercial land and building Location: 11150 Overseas Highway, Marathon, Monroe County, Florida Folio Number: 00334600-000000 Legal Description: I'he South Z48,15 fev"I of 1,ols, 3, and, 4, Bloch, 1j, ,kEY (,"0;t,)4)N'V SUBDIVISION No. 1, 4"Ording,to the pN;,juli thereof reconled hi Plat flook 41, page 10 (d flat, Public Riecor s, of "loa ("Ounty, Florida. ORB/Page: 3086/949 Grantor: Kelley Investments, LLC Grantee: Circle K Stores, Inc. Land Area: 41,730 Square Feet; 0.96 Acre Access: Overseas Highway and V Avenue Land Use: Mixed Use Commercial; City of Marathon Zoning: MU (Mixed Use); City of Marathon 41 SNACK JOHNSTON MAGENHNEIMER Property Data: Cleared Days on the Market: 358 Sales Price: $1,690,000 Unit Price: $40.50 per sq.ft. Date of Sale: March, 2021 Property Rights Conveyed: Fee simple interest Terms : Cash to seller Conditions of Sale: Arm's length transaction Prior Sale: June, 2019; $1,100,000 Present Use: Unoccupied former fast food restaurant Highest and Best Use: Commercial use Intended Use: Unknown Comments: This site is currently improved with a building that was previously used as a Burger King restaurant. According to the realtor, the building is in a state of disrepair and did not contribute to the overall value of the property. The buyer plans to demolish the building. u ,I { 42 SNACK JOHNSTON MAGENHNEIMER SALE 4 r µ fj vf l Y y Property Type: Commercial land Location: 74430 Overseas Highway, Lower Matecumbe Key, Islamorada, Monroe County, Florida Folio Number: 00392230-000000, 00392240-000000, 00392250- 000000, 00392270-000000, 00392280-000000 and 00392290-000000 Legal Description: Lots 5-5B, 6, 7, 9, 10 and 11, Block B, of White Marlin Beach, Section 1, according to the Plat thereof, recorded in Plat Book 3, Page 184, of the Public Records of Monroe County, Florida. ORB/Page: 3079/1416 Grantor: John Leto, Sr. Grantee: Walrenenterprises, LLC Land Area: 40,800 Square Feet; 0.94 Acre 43 SNACK JOHNSTON MAGENHNEIMER Access: Overseas Highway, Lake View Drive and Gulf View Drive Land Use: Mixed Use: Islamorada Zoning: Neighborhood Commercial; Islamorada Property Data: Mostly cleared Days on the Market: 194 Sales Price: $925,000 Unit Price: $22.67 per sq.ft. Date of Sale: March, 2021 Property Rights Conveyed: Fee simple interest Terms : Cash to seller Conditions of Sale: Arm's length transaction Prior Sale: None reported for several years Present Use: Vacant Highest and Best Use: Commercial and/or industrial uses Intended Use: Unknown Comments: This site was vacant at the time of sale. The grantee does not have any immediate plans for the site and may use it for open storage as an interim use. Y 44 SNACK JOHNSTON MAGENHNEIMER ADDENDUM C - QUALIFICATIONS OF THE APPRAISER ANDREW H. MAGENHEIMER, MAI 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. June, 1997 to Present, Principal, Slack, Johnston& Magenheimer, Inc. August, 1991 to May, 1997, Senior Appraiser, Slack& Johnston, Inc. February, 1987 to July, 1991, Staff Appraiser, Dixon &Friedman, Inc. GENERAL APPRAISAL EXPERIENCE: Appraisals - Vacant land, environmentally sensitive land, aviation facilities, industrial facilities, shopping centers, office buildings, apartment buildings,residential developments and single-family residences. Consulting - Economic research, market analysis, feasibility analysis and ad valorem real estate tax assessment appeals pertaining to industrial,commercial and residential properties. Litigation Support — Appraisals and consulting, including expert testimony, concerning various property types. AFFILIATIONS: Licensed Florida Real Estate Broker Florida State-Certified General Real Estate Appraiser, Certification No. RZ1073 Appraisal Institute Member, MAI, Certificate Number 10133, Continuing Education Completed 2002 President of the South Florida Chapter of the Appraisal Institute Member of the Miami Board of Realtors Member of the Florida Keys Board of Realtors Corporate Member of Florida Airport Council (FAC) 45 SNACK JOHNSTON MAGENHNEIMER RESOLUTION NO. -2024 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, PROMULGATING AN ADMINISTRATIVE DIRECTIVE FOR PURPOSES OF SETTING FORTH THE TERMS UNDER WHICH MONROE COUNTY SHALL ADMINISTRATIVELY TRANSFER FUNDS FOR A PARCEL OF LAND, SUBJECT TO FAA GRANT ASSURANCES,AT THE FLORIDA KEYS MARATHON INTERNATIONAL AIRPORT. WHEREAS, during an event that has required the activation of the Monroe County (County) Emergency Operations Center (EOC), the County has historically converted the Board of County Commissioners commission chambers in the Marathon Government Center into the County's EOC; and WHEREAS,the converted commission chambers have been shown to have shortcomings during past emergency events up to and including the need to evacuate the EOC during Hurricane Irma; and WHEREAS, the County has had a long-standing need to construct a dedicated EOC facility, capable of among other things, withstanding a category 5 hurricane; and WHEREAS, Monroe County owns and operates the Florida Keys Marathon International Airport(Marathon Airport); and WHEREAS, a prior Director of Airports applied for and obtained a Florida Department of Transportation (FDOT) Aviation grant for purposes of assisting the County with funding for the construction of a non-aeronautical revenue generating facility; and WHEREAS,Monroe County through its Project Management Department obtained grants from the Florida Department of Emergency Management in order to fund construction of the facility; and WHEREAS, the FDOT aviation grant incorporates the Airport Improvement Program (AIP) grant assurances; and WHEREAS, under the AIP grant assurances, Monroe County is obligated to maintain a fee and rental structure at the Marathon Airport that will make the airport as self-sustaining as possible; and WHEREAS,the purpose of the FDOT aviation grant was to provide the Marathon Airport with an additional revenue source in order to meet its obligation to be as self-sustaining as possible; and WHEREAS, the non-aeronautical revenue generating facility is designed to withstand a category 5 hurricane and can therefore be used as an EOC; and WHEREAS, the County desires to set forth the process for transferring funds from the general fund account to the Marathon Airport account in accordance with the terms contained in the grants that have been awarded to the County; and WHEREAS, the Monroe County Department of Airports had an appraisal performed by Slack, Johnston and Maggenheimer, a real estate, appraisal and consultant firm, and the appraisal determined that the market value ground rent for the property should set at $2.00 per sq. ft per year. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA THAT: 1. Recitals. The foregoing recitals are true and correct and are hereby incorporated by reference. 2. Premises, Funding The County shall make use of approximately 151,588 sq. ft. located at the Florida Keys Marathon International Airport as shown on Exhibit A for use as an Emergency Operations Center (EOC), Emergency Management Department offices, Monroe County Fire Rescue offices, and Monroe County Sheriff's dispatch center. For use of the premises, Monroe County shall administratively transfer $303,176 into the budget of the Florida Keys Marathon International Airport per year computed at two (2) dollars per square foot/per year. Thereafter, on April I" of every year,the amount administratively transferred will be increased by 3%or by an amount equal to the percentage increase in the CPI-U for all urban consumers for the previous calendar year, whichever is lower. In the event of a deflationary CPI, no adjustment in the rental rates will be made. The budgeting for, and transfer of the funds, shall be an internal function performed by the Monroe County Office of Management and Budget. 3. Term. The term of this agreement shall be forty (40) years commencing on April 1, 2024 and terminating on March 31, 2064. 4. Budgeting a) Monroe County shall be responsible for budgeting and obtaining any funds necessary for use of the premises. b) Any exterior architectural changes shall be made in consultation with the Director of Airports. c) Monroe County shall be responsible for budgeting and providing for all maintenance costs necessary for the upkeep of the facility and premises and for all utility costs associated with the facility. 5. Airport Protection. It shall be a condition of this Directive: i) That Monroe County reserves unto itself, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the real property hereinafter described, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on, taking off from or operating on the airport. ii) That Monroe County expressly agrees for itself, its successors and assigns, to restrict the height of structures, objects of natural growth and other obstructions on the hereinafter described real property to such a height so as to comply with Federal Aviation Regulations, Part 77. iii) That Monroe County expressly agrees for itself, its successors and assigns, to prevent any use of the hereinafter described real property which would interfere with or adversely affect the operation or maintenance of the airport, or otherwise constitute an airport hazard. iv)That at such time in the future as deemed necessary by Monroe County, Monroe County may enter and construct airport improvements (runways,taxiways, extensions, associated lighting, etc.)upon the premises provided notice is given to the Lessee at least 180 days prior to the start of construction. Should such development become necessary, Monroe County shall pay all costs associated with the protection or relocation of the existing facilities to accommodate said airport improvements. 6. Property Rights Reserved. This Directive and all provisions hereof are subject and subordinate to the terms and conditions of the instruments and documents under which the Airport Owner acquired the subject property from the United States of America and shall be given only such effect as will not conflict or be inconsistent with the terms and conditions contained in the lease of said lands from the Airport Owner, and any existing or subsequent amendments thereto, and are subject to any ordinances, rules or regulations which have been, or may hereafter be adopted by the Airport Owner pertaining to the Marathon Airport. 7. Paragraph Headings. Paragraph headings herein are intended only to assist in reading identification and are not in limitation or enlargement of the content of any paragraph. THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of the Board held on the 21" day of February 2024. Mayor Holly Merrill Raschein Mayor Pro Tem James k. Scholl Commissioner Craig Cates Commissioner Michelle Lincoln Commissioner David Rice (SEAL) BOARD OF COUNTY COMMISSIONERS ATTEST: KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA BY BY As Deputy Clerk Mayor Holly Merrill Raschein „ RO,,E COUNTY ATTOMEY 4N ;IOV'E T FORM F J. _. ASSIST UTY A +BEY [gate 1/20 24