Okaloosa County BOCC — April 15, 2014 — Foy Shaw Road Project SJPA_Sig Resolution_Appraisals_Land Purchase Agreement Letter — reading text

$20,192 $4,185 3.07 + Acres, - Industrial Land, Foy Shaw Road Project Page 25 Crestview, Okaloosa County, FL H&A 140023 Explanation of Adjustments to Comparable Land Sales Adjustments are typically made to the comparable iand sales to account for differences between the subject property, “as vacant” and each of the comparable land sales. An analysis of each of the elements of comparison and adjustments applied to the comparable site sales to account for the differences is presented below. Data is not adequate to provide reliable adjustment factors via matched pair, bracketing, or regression analysis. Adjustments or the absence of adjustments are based on market observations. Property Rights Conveyed Each of the properties was conveyed in fee simple ownership by Warranty Deed instruments. The subject property is owned in fee simple. Therefore, no adjustments are required for property rights. All of the comparable land sales employed herein sold with cash to the seller and/or cash equivalent financing from conventional lending sources at market rates. No abnormal seller financing was reported. No adjustment is required for financing. Conditions of Sale All of the comparable land sales were arm’s length transactions. No adjustments were required. Financing Market Conditions All comparable sales were adjusted downward at a rate of negative 10.0% per year. This rate is based on (Tine) analysis of these comparable sales and other sales in the competitive market area. Location _The location of the comparables relative to the subject was considered. All comparable sales were adjusted downward for their superior location within the Airpark. Industrial park lots tend to set the top of the market within that sector. Size In this analysis, the size of the comparables relative to the subject was considered significant. ‘The market prefers smaller parcels to optimize economy of scale. All comparable sales were either adjusted upward for their larger, less efficient size or downward for their smaller more efficient size compared to the subject. Dimensions The Subject and all comparable land sales were contrasted for this feature. The market would view comparable with equal faver. No adjustments were required. Zoning The subject and all comparable land sales were contrasted for this feature. The market would likely judge all comparable sales with equal favor due to its existing industrial zoning. No adjustments were necessary. Highest and Best Use We have considered the highest and best use for each of the comparable land sales based on subsequent development, lack thereof, or other market information. The subject and all comparable sales would likely be adjudged by the market to be similar, and accordingly. no adjustment was made. Utilities All utilities required for commercial use, such as water, sewer, electricity, telephone, and cable, were available at or nearby each of the comparable land sale sites. No adjustments were necessary. Topography The market prefers level and cleared lots. All comparable sales were contrasted for these features as compared with the subject. The market would likely view all comparable sales as superior to the subject and were adjusted downward accordingly. Functional Utility In this analysis, the functional utility of the comparables relative to the subject was considered and was not considered significant. No adjustments were necessary. All comparable sales were contrasted for this feature. All comparable sales had paved access. The market Access would view this feature as superior to the subject, therefore all comparable sales were adjusted downward accordingly. Net Adjustment Percentage The net adjustment percentage represents the net effect of all the adjustments applied to a particular comparable land sale. The range of net adjustments were -28% to -37%. 3.07 + Acres, - Industrial Land, Foy Shaw Road Project Page 26 Crestview, Okaloosa County, FL H&A 140023 RECONCILIATION OF SITE VALUE - PRIOR TO TAKING The appraisers researched active vacant land listings with a similar highest and best use that would compete with the subject if on the market at the same time. Active listings tend to set the top of the market and are a good barometer of market trends. Large tracts of raw industrial land are typically priced on a per acre unit basis. Active listings are shown below. MLS statistical data indicates the sale price to original list price ratio is about 54%, averaged over the past year. Active listings range from $7,500 to $165,000, with a median of $42,000. When the SP/LP percentage is applied to the active list price range, the adjusted or probable sale price range would be $4,000 to $89,000 per acre and a median of $21,000 per acre, rounded, all elements of comparison being equal. The subject falls within the adjusted value range which supports the final value conclusion. MLS #513066 is located just south of the subject. This listing has a long market exposure. The listing agent indicated the sellers are waiting for an offer from the County and are in no hurry to sell. Locgtion MILSt ArSClass 51305625 ALand XXxXX GODFREY ST 9 55487525 ALand 99909 9 j ADAMS PKWY 452 7 34$0,900 33Z735423ALand 650 HWY 3315 250 3 $449.900 60833223 ALand S277 HWY 82 240 2 570,000 477224 1i2Atand 1 STOKES Ave 419 3 $495,000 $7317912ALand CO FIM BLVD 329 2 5199-300 S8$54i120A4tsnd LOTS £9 BLUE RIOGE 373 2 $1$0.900 PKWY S7392825Atand 3.5 AC HWY 99 WY 375 13 $75,090 1238525 ALand 540 ARMISTEAD BLVD 4-393 13 $135.006 There have been very few industrial land sales over the past two years based on MLS data, as indicated below. Market trends in industrial development land show little change over the past year. : Original List, Sala Oo s | MLS# i subar | Address | City | Frontage Acres Cete:Sold Price | Price | Type lee OC] : Stsext- 2e37 $20, Pensec sO sousiccs ee wee sere ¥49.500 ert pe ( 2 S826na2 te? 4590 Guar zee ee wi 322575 120000 2.88 330.08 138.000 as is ; [} 3 68843-2038 T3283 SOMMERCE FREEPORT mm fal 383.200 52,500 sis ‘ ) 4 Sogo: 233 Tap Houx ww ors FRERECRT 429 422.725 27.50 x CJ) § $8383.— :324 oT ENCA 2 SahTa 2550 SE8C— $3 2d tydees2 337.550 3.00 0-220 ‘ [CT] 4 cascse 33s Z2RQFSSSIONA, MrkaMar 32505 iis thtwad 3236.500 hee. wes , fC) 7 S2Site soe TaD sioux wy 3 FR EE2057 Bag SEES 23.457 W48 38S () 3 S2Ss$e 9 zae23 TED BO or eapescny has 3 ezees $14.37 36.252 220 [} = S025i3° 20:37 TED siouc OT 9 #2382037 geer'tz 532.238 §2.282 REG () 39 :5%— 3324 12 10285 CRATE Vay sRest ey $3ize33 329.703 283,206 8 3 oss s808S32 0 aivS2 2 AGREE ee omg RD NavaRRE 205022 32£2.209 390.222 s (71 td Se4u07T «12°56 300 SEMINCLE ST 23QT #STON BBic- 5 5; oa/23 335.200 43.509 ‘ between $17,265 and $24,986 per acre with to derive a reliable indication of value for the mean of the indicated range due to hat the market value of the 10+ acres of The sales comparison analysis indicated a range of value for the subject a mean of $20,192 per acre. The quantity and quality of data is sufficient the subject, and in our opinion, the market value for the site is below continuing market uncertainty within the industrial sector. Our opinion is t industrial property, parent tract, “As Vacant,” is $19,000 per acre. Estimated Current Acres Price Per Acre Market Value Rounded | 10.0 x $19,000 = $190,000 $190,000 OPINION OF VALUE FOR THE SUBJECT PROPERTY-PARENT TRACT VIA THE SALES COMPARISON ANALYSIS (As of February 12, 2014) $190,000 Excess Land: None. 3.07 + Acres, - Industrial Land, Foy Shaw Road Project Page 27 Crestview, Okaloosa County, FL H&A 140023 VALUATION OF THE ‘TAKING’ The eminent domain taking for the Foy Shaw Road Project is 3.07 acres as indicated on the survey provided to the appraisers by the client. It is triangular in shape and has no access of its own. About 1/3 of the land area near the creek is in a flood zone. The ‘take’ is intended to be part of an assemblage for the roadway project. I Estimated Current Acres Price Per Acre Market Value Rounded 1 I 3.0 x $19,000 - $57,000 $58,000 OPINION OF VALUE FOR THE SUBJECT PROPERTY-‘TAKING’ VIA THE SALES COMPARISON ANALYSIS (As of February 12, 2014) $58,000 VALUATION OF THE ‘REMAINDER’ (Parent tract after the ‘taking’) The eminent domain ‘taking’ for the Foy Shaw Road Project is 3.07 acres as indicated on the survey provided to the appraisers by the client. The ‘taking’ will sever access to the creek from the remainder and change the parcel shape, neither condition is adverse to industrial development. Therefore, there are no damages to the ‘remainder’. The remaining acreage to the parent tract is 7 acres. Estimated Current Acres Price Per Acre Market Value Rounded } 7.0 x $19,000 = $133,000 $132,000 OPINION OF VALUE FOR THE SUBJECT PROPERTY-‘REMAINDER’ VIA THE SALES COMPARISON ANALYSIS (As of February 12, 2014) $132,600 FINAL VALUE OPINION Summary of Values Parcel Value Parent Tract Before Taking - 10 acres $190,000 Value of the ‘Taking’ - 3.07 acres $58,000 Parent Tract Less Value of the ‘Taking’ (rounded) $132,000 Parent Tract After ‘Taking’ $132,000 Damages to Parent Tract (Remainder) $0 Value of the ‘Taking’ $58,000 Damages + Value of the ‘Taking’ $58,000 3.07 + Acres, - Industrial Land, Foy Shaw Road Project Crestview, Okaloosa County, FL Subject Photograph Okaloosa County Property Appraiser Data Tax Record Warranty Deed Client Engagement Letter Demographics Qualifications of the Appraisers ADDENDA Page 28 H&A 140023 : , Page 29 + 2 3.07 + Acres, - Industrial Land, Foy Shaw Road Project H&A 140023 Crestview, Okaloosa County, FL Site Map Ford St, CEW Prepared by Walter Humphrey Drive Time: 5, 10, 15 Minutes De | Sih Ave - E North Ave ee." cs i — fy) re if att > Watton L. Cresin . 45 al a a sS = Nels Ave Okaloos2 Oo ; a ot ie i | February 18, 2014 Demographic and Income Profile - Appraisal Version Prepared by Walter Humphrey Ford St, CEW Drive Time: 5, 10, 15 minutes Summary Census 2010 2013 2018 Population 1,368 1,400 1,503 Households 522 537 583 Families 381 390 421 Average Household Size 2.47 2.46 2.44 Owner Occupied Housing Units 393 390 429 Renter Occupied Housing Units 129 146 154 Median Age 39.2 39.4 39.2 Trends: 2013 - 2018 Annual Rate Area State National Population 1.43% 0.99% 0.71% Households 1.66% 0.98% 0.74% Families 1.54% 0.87% 0.63% Owner HHs 1.92% 1.32% 0.94% Median Household Income 1.90% 3.47% 3.03% 2013 2018 Households by Income Number Percent Number Percent <$15,000 70 13.0% 68 11.7% $15,000 - $24,999 73 13.6% 56 9.6% $25,000 - $34,999 37 6.9% 35 6.0% $35,000 - $49,999 84 15.6% 82 14.1% $50,000 - $74,999 152 28.3% 163 28.0% $75,000 - $99,999 57 10.6% 87 14.9% $100,000 - $149,999 43 8.0% 64 11.0% $150,000 - $199,999 16 3.0% 24 4.1% $200,000+ 4 0.7% 5 0.9% Median Household Income $50,368 $55,327 Average Household income $57,150 $65,618 Per Capita Income $21,843 $25,224 Census 2010 2013 2018 Population by Age Number Percent Number Percent Number Percent Qiai4 90 6.6% 90 6.4% 97 6.4% 5-9 95 5.9% 93 6.6% 98 6.5% 10-14 at 5.9% 91 6.5% ii 6.7% 15-19 84 6.1% 80 5.7% 93 6.2% 20-24 78 5.7% 82 5.9% 78 5.2% 25 - 34 185 13.5% 194 13.7% 193 12.8% 35 - 44 176 12.9% 172 12.3% 199 13.2% 45 - 54 204 14.9% 192 13.7% 188 12.5% 55 - 64 175 12.8% 194 13,9% 200 13.3% 65 - 74 119 8.7% 126 9.0% 155 10.3% 75 - 84 64 4.7% 71 5.1% 80 5.3% 85+ 16 1.2% 17 1.2% 23 1.5% Data Note: Income ts expressed in current dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018. February 18, 2014 Demographic and Income Profile - Appraisal Version Ford St, CEW Prepared by Walter Humphrey Drive Time: 5, 10, 15 minutes Trends 2013-2018 w 1 N in 1 va U Area &] State USA Annual Rate (in percent) Median RH income Families Owner His Popuiation Population by Age 134 124 11- ‘s Percent i¢Ty? @ 2013 @ 2018 14 | ive 0 O-4 5-9 10-14 15-13 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ 2013 Household Income