Okaloosa County BOCC — April 5, 2016 — Okaloosa County-old Piggly Wiggly Bldg Appraisal Oct 2015 — reading text

opinion of value. This report also includes thorough descriptions of the subject and the market for the property type. Teel, Bracewell & Schmitt Appraisals completed the following steps for this assignment: Extent to Which the Property is identified Teel, Bracewell & Schmitt Appraisals collected the relevant physical characteristics about the subject via a physical identification and inspection of both the interior and exterior of the subject property. The physical property was legally identified through its postal address, assessor’s records, the provided legal description and/or the provided title report. Economic characteristics of the subject were identified via an analysis of a recent rent roll and/or historical operating statements. Extent to Which the Property is Inspected Teel, Bracewell & Schmitt Appraisals conducted a physical inspection of both the interior and exterior of the subject property, as well as its surrounding environs on the effective date of the appraisal. 13 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156 Type and Extent of the Data Researched Teel, Bracewell & Schmitt Appraisals physically inspected the micro and/or macro market environments with respect to physical and economic factors relevant to the valuation process. This knowledge was expanded through interviews with regional and/or local market participants, available published data and other various resources. Teel, Bracewell & Schmitt Appraisals also conducted regional and/or local research with respect to applicable tax data, zoning requirements, flood zone status, demographics, income and expense data, and comparable listing, sale and rental information. Type and Extent of Analysis Applied Teel, Bracewell & Schmitt Appraisals analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. One of the three traditional approaches to value were considered and utilized. Teel, Bracewell & Schmitt Appraisals then correlated and reconciled the results into a reasonable and defensible value conclusion, as defined herein and estimated a reasonable marketing time associated with the value estimate presented. Special Appraisal Instructions Only the Sales Comparison approach will be utilized per agreement with the client and the composition of the property. 14 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  APPRAISAL DEVELOPMENT AND REPORTING In preparing this appraisal, we relied on one of the three approaches in formulating an overall value. To develop the opinion of value, we performed a complete appraisal process, as defined by the Uniform Standards of Professional Appraisal Practice. This means that no departures from Standard 1 were involved. LEGAL DESCRIPTION: ZONING: The subject property is subject to zoning regulations administered and adapted by the City of Crestview. The site is currently zoned C-1, which is a general commercial classification. The FLU is DMU (Downtown Mixed Use). Under current zoning, almost every property in downtown Crestview is not incompliance at present time. Only three properties with the C-2 are considered in compliance. As stated earlier, the City is and has been in the process of re-writing the zoning and future land use codes. It appears in a 1 to 2 year time period, this condition will be reconciled. TAX IDENTIFICATION: Tax I.D. # 2014 Assessed Value 2014 Assessed Taxes 17-3N-23-2490-0068-0010 $215,476 $4,138.11 (unpaid) A three year review of the taxes indicated 2013 and 2014 real estate taxes have not been paid. A detailed review of the taxes is included within the addendum of this report. PROPERTY HISTORY: A review of public record report and other sources suggest no transaction affecting the subject property over past three years. “Extraordinary Assumptions: This appraisal assumes and subject to the subject property having a mold remediation and the property will continue to be usable.” 15 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  MARKETING TIME The reasonable marketing time is an estimate of the amount of time it might take to sell a property interest in real estate at the opinion of market value level during the period immediately after the effective date of the appraisal. The reasonable marketing time is a function of price, time, use and anticipated market conditions such as changes in the cost and availability of funds; not an isolated estimate of time alone. Marketing time, which occurs after the effective date of the market value opinion, differs from exposure time, which is always presumed to precede the effective date of an appraisal. The marketing period for the subject property is estimated to be over 12 months. EXPOSURE TIME When estimating market value, the appraiser should be specific as to the estimate of exposure time linked to the value opinion. Reasonable exposure time is one of a series of conditions in most market value definitions. Exposure time is always presumed to precede the effective date of the appraisal. Exposure time may be defined as follows: The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based upon an analysis of past events assuming a competitive and open market. Exposure time is different for various types of real estate and under various market conditions. It is noted that the overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. This statement focuses on the time component. The fact that exposure time is always presumed to occur prior to the effective date of the appraisal is substantiated by related facts in the appraisal process: supply/demand conditions as of the effective date of the appraisal; the use of current cost information; the analysis of historical sales information (sold after exposure and after completion of negotiations between seller and buyer); and the analysis of future income expectancy estimated from the effective date of the appraisal. The exposure time for the subject property is estimated to be over 12 months. 16 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  REAL ESTATE APPRAISED LOCATION DESCRIPTION: The site is situated on the southwest side of Beech Ave, one block south of the courthouse. The site is located at the Beech Ave. /Wilson Street intersection. The subject is located within the old downtown business district. Downtown redevelopment grants have allowed improvements to the streets and sidewalks along Main Street and Wilson Street including decorative street lighting and shrubbery islands. Uses along Main Street include retail stores, salons, churches, antique shops, restaurants, and professional offices. Several of the buildings that were constructed more than 60 years ago have been renovated. However, such renovations are made at the discretion of each individual property owner. Main Street is located one block West of Ferdon Boulevard (S.R. 85), the major North/South traffic artery through Crestview. Main Street had been the major traffic artery until a railroad overpass was constructed one block to the East on what was then Pearl Street. Pearl Street was widened to a divided 4-lane and renamed Ferdon Boulevard. Since that time, many properties have been converted for commercial use along Ferdon Boulevard due to the higher traffic exposure. Parking continues to be a concern along Main Street and the downtown area. The only parking is angled parking along each side of the 2-lane street, as well as the side streets connecting to it. Although the City has discussed the need for additional parking, no action has been taken to address this situation. 17 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  NEIGHBORHOOD MAP 18 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  NEIGHBORHOOD AERIAL MAP 19 TEEL & WATERS REAL ESTATE CO., INC. - APPRAISAL DIVISION FORT WALTON – AC - 850-243-5511 ∙ 499 N. FERDON BLVD. - CRESTVIEW, FL 32536 - AC – 850-682-6156  SITE DESCRIPTION Dimensions & Shape: The subject site is a rectangular shaped parcel containing 0.48-acres, more or less. The site has frontage on two roadway. Per the legal description & old recorded plat, the site measures 150 FF x 140’. A copy of the plat/site map is included within this report for a detailed review. A review of this plat is highly recommended. The site is improved with a one story building, which will be discussed later within this report. Topography & Elevation: The subject site is situated at and/or above street grade. The property has not been engineered for proper drainage. Street Improvements: Wilson Street provides primary access to subject. Beech Ave. provides additional access and lead to both Main Street and S. Ferdon Blvd. Wilson Street is a two-lane asphalt paved City Street. Beech Ave. is a one way paved city street at the subject property. Utilities: City services include water, sewer, and garbage pickup. The Okaloosa Gas District provides natural gas. CenturyLink (former Embarq) provides telephone service and Gulf Power Company provides electricity. Census Tract: The census tract number 0205.00, Okaloosa County. Flood Zone: After reviewing the F.E.M.A flood map #12091 C0165H, dated 12/06/2006; it appears the subject is not located in a special flood hazard area. A further description is taken from accompanying photographs and sketches HIGHEST AND BEST USE: If vacant, the highest and best use would be commercial due to the current zoning and location in a commercial district The site is currently improved with a 12,000± SF commercial building. The subject property is in extremely poor condition. This building will require extensive remodeling including mold remediation before being a readily usable place of business. Given the legal and physical qualities of the subject along with its location, a commercial use of the subject is considered to be the