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HomeMy WebLinkAbout116-26 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 116-26 File Number: 2026-1311 A RESOLUTION TO APPROVE THE PURCHASE OF PROPERTY LOCATED AT 2400 WEST VALLEY DRIVE IN THE AMOUNT OF $225,000.00, TO APPROVE A CONTINGENCY IN THE AMOUNT OF $7,500.00, AND TO AUTHORIZE THE MAYOR TO SIGN ALL CLOSING DOCUMENTS WHEREAS, due to continued flooding and in response to the May 2017 flood event, the City Council approved a contract with FTN Associates to research potential solutions to the flooding in the Hamestring Creek repetitive loss area that did not yield any feasible results; and WHEREAS, on February 4, 2025, City Council passed Resolution 44-25 authorizing an agreement with Olsson to study another option for reduction in flooding along West Valley Drive and draft a grant application to purchase properties should that option not yield acceptable results; and WHEREAS, results from the study indicated that flooding could be reduced enough to potentially avoid the purchase of a few of the properties, though others would continue to flood; and WHEREAS, staff then submitted a grant application to the Department of Agriculture, Natural Resource Division for a Flood Mitigation Assistance Grant to purchase properties within the repetitive loss area with the intent to remove the structures; and WHEREAS, after the grant submission, the property located at 2400 West Valley Drive was listed for sale and the City submitted an offer to purchase the property, contingent on an appraisal and on City Council approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the purchase of the property located at 2400 West Valley Drive in the amount of $225,000.00 for the purpose of removing a repetitive loss structure, approves a contingency in the amount of$7,500.00, and further authorizes Mayor Rawn to sign all closing documents. PASSED and APPROVED on May 5, 2026 Approved: Attest: Page 1 Molly Rawn, Mayor Kara Paxton, City Clerk Treasurer Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-1311 MEETING OF MAY 5, 2026 TO: Mayor Rawn and City Council THROUGH: Keith Macedo, Chief of Staff Chris Brown, Public Works Director FROM: Alan Pugh, Stormwater Manager SUBJECT: Approving the purchase of the property at 2400 W Valley Drive for the purchase price of $225,000 due to ongoing flooding of Hamestring Creek and to remove the structure from the floodway, approval of a $7,500 contingency to cover all closing costs and authorizing the mayor to sign all closing documents. RECOMMENDATION: Staff recommend purchasing the property at 2400 W Valley Drive for the purchase price of $225,000 due to ongoing flooding of Hamestring Creek and to remove the structure from the floodway, approval of a $7,500 contingency to cover all closing costs and authorizing the mayor to sign all closing documents. BACKGROUND: Due to continued flooding and in response to the May 2017 flood event, the City Council approved a contract with FTN Associates in May of 2020 to research potential solutions to the flooding in the Hamestring Creek repetitive loss area (RLA). This study looked at several options including upstream detention and channel improvements to determine if the flooding could be alleviated. This study ultimately did not yield any feasible results. Resolution 44-25 authorized staff to enter into an agreement with Olsson to study another option for reduction in flooding along W Valley Dr and draft a grant application to purchase properties should that option not yield acceptable results. Results from study indicated that flooding could be reduced enough to potentially avoid the purchase of a few of the properties, however others still would continue to flood. Staff then submitted a grant application to the Department of Agriculture, Natural Resource Division for a Flood Mitigation Assistance Grant to purchase properties within the RLA. One of these properties was located at 2400 W Valley Drive. The home currently experiences water in the crawl space, property damage during flooding and is located within the floodway. DISCUSSION: After the grant submission, the property located at 2400 W Valley Drive was listed for sale. At that time the City placed an offer to purchase the property, contingent on an appraisal and on City Council approval, to remove the structure from the floodway and eliminate future flood losses. The City is also studying the potential to create floodplain storage at this location and return the area to a natural floodplain. While this small area may not show a measurable decrease in the flood elevations, this may be combined with future projects to help alleviate flooding in the area. The property is listed for sale for $225,000 and while the City’s appraisal was slightly below that figure at $217,000, the owner indicated that they had other full price offers which would support the value of $225,000. Staff is recommending purchasing the property for $225,000. Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov BUDGET/STAFF IMPACT: Funding would be from the 2022 Drainage Bonds which allow for the purchase of floodplain properties. ATTACHMENTS: 3. Staff Review Form, 4. 2400 Valley Dr Appraisal, 5. Accepted Offer Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 479) 575-8323 File #: 2026-1311 A RESOLUTION TO APPROVE THE PURCHASE OF PROPERTY LOCATED AT 2400 WEST VALLEY DRIVE IN THE AMOUNT OF $225,000.00, TO APPROVE A CONTINGENCY IN THE AMOUNT OF $7,500.00, AND TO AUTHORIZE THE MAYOR TO SIGN ALL CLOSING DOCUMENTS WHEREAS, due to continued flooding and in response to the May 2017 flood event, the City Council approved a contract with FTN Associates to research potential solutions to the flooding in the Hamestring Creek repetitive loss area that did not yield any feasible results; and WHEREAS, on February 4, 2025, City Council passed Resolution 44-25 authorizing an agreement with Olsson to study another option for reduction in flooding along West Valley Drive and draft a grant application to purchase properties should that option not yield acceptable results; and WHEREAS, results from the study indicated that flooding could be reduced enough to potentially avoid the purchase of a few of the properties, though others would continue to flood; and WHEREAS, staff then submitted a grant application to the Department of Agriculture, Natural Resource Division for a Flood Mitigation Assistance Grant to purchase properties within the repetitive loss area with the intent to remove the structures; and WHEREAS, after the grant submission, the property located at 2400 West Valley Drive was listed for sale and the City submitted an offer to purchase the property, contingent on an appraisal and on City Council approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the purchase of the property located at 2400 West Valley Drive in the amount of $225,000.00 for the purpose of removing a repetitive loss structure, approves a contingency in the amount of $7,500.00, and further authorizes Mayor Rawn to sign all closing documents. Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Comments: Purchase Order Number: Change Order Number: Previous Ordinance or Resolution # Approval Date: Original Contract Number: 46040.7405 Project Number Budget Impact: Drainage Projects-Floodplain Buyout Fund LandAcquisition4704.860.7405-5805.00 Account Number Project Title City of Fayetteville Staff Review Form 2026-1311 Item ID 5/5/2026 City Council Meeting Date - Agenda Item Only Approving the purchase of the property at 2400 W Valley Drive due to ongoing flooding of Hamstring Creek and to remove the structure from the floodway, approval of a $7,500 contingency to cover all closing costs and authorizing the mayor to sign all closing documents. N/A for Non-Agenda Item Action Recommendation: Submitted By Chris Brown STORMWATER MANAGEMENT (740) Division / Department 4/9/2026 Submitted Date Yes 232,500.00$ 232,500.00$ Budgeted Item? Does item have a direct cost? Is a Budget Amendment attached? Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Amendment Remaining Budget 232,500.00$ Yes No -$ Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 APPRAISAL OF REAL PROPERTY 2400 W Valley Dr Fayetteville, AR 72703 Lot 21, ST Russell Subdivision City of Fayetteville 113 W Mountain St Fayetteville, AR 72701 217,000 03/23/2026 Chris Hamaker Boston Mountain Real Estate PO Box 722 Fayetteville, AR 72702-0722 479) 251-8600 appraisal@cox-internet.com Form GA1V - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE LOCATED AT FOR OPINION OF VALUE AS OF BY mailto:appraisal@c ox-internet.com Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 260305 N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville A reasonable exposure time for the subject property at the market value stated is between 0 and 3 months. The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. Unless otherwise indicated, I 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. I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared. Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report. Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification (if there are exceptions, the name of each individual providing significant real property appraisal assistance is stated elsewhere in this report). Chris Hamaker 03/24/2026 CR2256 AR 06/30/2026 03/23/2026 Form ID14AP - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE File No. Borrower Property Address City County State Zip Code Lender This report was prepared in accordance with USPAP Standards Rule 2-2(a). This report was prepared in accordance with USPAP Standards Rule 2-2(b). My opinion of a reasonable exposure time for the subject property at the market value stated in this report is: I certify that, to the best of my knowledge and belief: I have NOT performed services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. I HAVE performed services, as an appraiser or in another capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Those services are described in the comments below. APPRAISER: Signature: Name: Date Signed: State Certification #: or State License #: State: Expiration Date of Certification or License: Effective Date of Appraisal: SUPERVISORY APPRAISER: (only if required) Signature: Name: Date Signed: State Certification #: or State License #: State: Expiration Date of Certification or License: Supervisory Appraiser Inspection of Subject Property: Did Not Exterior-only from Street Interior and Exterior Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Boston Mountain Real Estate 260305RESIDENTIALAPPRAISALSUMMARYREPORT 2400 W Valley Dr Fayetteville AR 72703 Washington Lot 21, ST Russell Subdivision 765-11077-000 2025 1,555 .00 N/ A TCSE, LLC W Fayetteville 22220 0106.02 Floodplain Buyout City of Fayetteville City of Fayetteville 113 W Mountain St, Fayetteville, AR 72701 Chris Hamaker PO Box 722, Fayetteville, AR 72702-0722 100 3,000 500 0 175 25 60 10 10 10 Vac/ Public 10 The subject neighborhood is roughly defined by E Joyce Blvd to the north; N Rupple Rd to the west; MLK Blvd to the south; and College Ave to the west.The subject is in a growing to stable residential neighborhood consisting of mostly single family homes, apartment complexes, and 2-4 family buildings. The subject neighborhood is near employment centers, public services, entertainment facilities, schools, hospitals, parks, and recreational facilities. The unemployment rate in northwest Arkansas is around 3.5% which is below national and state averages. OTHER=AGR. Market conditions have been average to good in northwest Arkansas and most areas have declined between 2008 and 2010. There were signs of stabilization in some sub-markets and some areas saw an increase in values during most of 2012. 2013-2025 saw steady sales, which have continued into 2026. The area is still experiencing growth and reasonable interest rates. 97' x 169'16,393 sf RSF-4 Residential Single Family Single Family Residential Single Family Residential The highest and best use is for single family residential. SWEPCO Black Hills Fayetteville Fayetteville Fayetteville Asphalt Concrete Concrete Wood Pole None Generally Level Typical for area Rectangular Appears Adequate Residential AE 05143C0204G 01/25/2024 The subject property is in flood zone AE. A professional survey is recommended (not required) to determine the exact location of the subject within the flood zone. The subject property is also affected by Streamside Protection Ordinance. Please city documents for additional information. 1 1 Ranch/ Avg 59 30 Con Block HB Composition/ Avg None Double Pane/ Avg Yes/ Avg None Yes None None Noted None Noted 0 0 FWA N. Gas X CP;V;HW/ Fair-Avg DW/ Fair-Avg Wood/ Average Vinyl/ Fair-Avg Fiberglass/ Average Hollow Core/ Average 0 None Cov Concrete CvCn None None 2 1 1 Concrete 5 2 1.5 1,093 The subject has typical amenities for the area. Improvements are of average quality and in fair to average condition. No repairs are needed at this time. Form GPRES2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE File No.: SU B J E C T Property Address:City:State:Zip Code: County:Legal Description: Assessor's Parcel #: Tax Year:R.E. Taxes: $Special Assessments: $Borrower (if applicable): Current Owner of Record:Occupant:Owner Tenant Vacant Manufactured Housing Project Type:PUD Condominium Cooperative Other (describe)HOA: $per year per month Market Area Name:Map Reference:Census Tract: AS S I G N M E N T The purpose of this appraisal is to develop an opinion of:Market Value (as defined), or other type of value (describe) This report reflects the following value (if not Current, see comments):Current (the Inspection Date is the Effective Date)Retrospective Prospective Approaches developed for this appraisal:Sales Comparison Approach Cost Approach Income Approach (See Reconciliation Comments and Scope of Work) Property Rights Appraised:Fee Simple Leasehold Leased Fee Other (describe) Intended Use: Intended User(s) (by name or type): Client:Address: Appraiser:Address: MA R K E T A R E A D E S C R I P T I O N Location:Urban Suburban Rural Built up:Over 75%25-75%Under 25% Growth rate:Rapid Stable Slow Property values:Increasing Stable Declining Demand/supply:Shortage In Balance Over Supply Marketing time:Under 3 Mos.3-6 Mos.Over 6 Mos. PredominantOccupancy Owner Tenant Vacant (0-5%) Vacant (>5%) One-Unit Housing PRICE 000) Low High Pred AGE yrs) Present Land Use One-Unit % 2-4 Unit % Multi-Unit % Comm'l % Change in Land Use Not Likely Likely *In Process * To: Market Area Boundaries, Description, and Market Conditions (including support for the above characteristics and trends): SI T E D E S C R I P T I O N Dimensions:Site Area: Zoning Classification:Description: Zoning Compliance:Legal Legal nonconforming (grandfathered)Illegal No zoning Are CC&Rs applicable?Yes No Unknown Have the documents been reviewed?Yes No Ground Rent (if applicable)$/ Highest & Best Use as improved:Present use, or Other use (explain) Actual Use as of Effective Date:Use as appraised in this report: Summary of Highest & Best Use: Utilities Public Other Provider/Description Off-site Improvements Type Public Private Electricity Gas Water Sanitary Sewer Storm Sewer Street Curb/Gutter Sidewalk Street Lights Alley Topography Size Shape Drainage View Other site elements:Inside Lot Corner Lot Cul de Sac Underground Utilities Other (describe) FEMA Spec'l Flood Hazard Area Yes No FEMA Flood Zone FEMA Map #FEMA Map Date Site Comments: DE S C R I P T I O N O F T H E I M P R O V E M E N T S General Description of Units Acc.Unit of Stories Type Det.Att. Design (Style) Existing Proposed Und.Cons. Actual Age (Yrs.) Effective Age (Yrs.) Exterior Description Foundation Exterior Walls Roof Surface Gutters & Dwnspts. Window Type Storm/Screens Foundation Slab Crawl Space Basement Sump Pump Dampness Settlement Infestation Basement None Area Sq. Ft. Finished Ceiling Walls Floor Outside Entry Heating Type Fuel Cooling Central Other Interior Description Floors Walls Trim/Finish Bath Floor Bath Wainscot Doors Appliances Refrigerator Range/Oven Disposal Dishwasher Fan/Hood Microwave Washer/Dryer Attic None Stairs Drop Stair Scuttle Doorway Floor Heated Finished Amenities Fireplace(s) # Patio Deck Porch Fence Pool Woodstove(s) # Car Storage None Garage # of cars (Tot.) Attach. Detach. Blt.-In Carport Driveway Surface Finished area above grade contains:Rooms Bedrooms Bath(s)Square Feet of Gross Living Area Above Grade Additional features: Describe the condition of the property (including physical, functional and external obsolescence): Copyright© 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited. 3/2007 Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 260305RESIDENTIALAPPRAISALSUMMARYREPORT Co Assessor & MLS N/ A 2400 W Valley Dr Fayetteville, AR 72703 N/ A Property Inspection N/ A N/ A N/ A Fee Simple Suburban/ Avg 16,393 sf Residential/ Avg Ranch/ Avg Average 59 Fair to Average 5 2 1.5 1,093 N/ A N/ A Average CH/ A Average 1 Car Carport Covered Porch Flood Zone Yes 2227 W Hatfield St Fayetteville, AR 72703 0.16 miles E 224,000 198.58 ML#1309096;DOM 58 County Assessor Not Disclosed Not Disclosed 09/09/2025 Fee Simple Suburban/ Avg 17,424 sf 0 Residential/ Avg Ranch/ Avg Average 59 Average -10,000 6 4 1.0 +3,000 1,128 N/ A N/ A Average CH/ A Average Garage Storage 0 Porch/ Patio 0 Yes 7,000 217,000 1119 S Ellis Ave Fayetteville, AR 72701 2.31 miles SE 200,000 203.25 ML#1317108;DOM 3 County Assessor Not Disclosed Not Disclosed 09/18/2025 Fee Simple Suburban/ Avg 12,632 sf 0 Residential/ Avg Ranch/ Avg Average 65 0 Fair to Average 5 3 1.0 +3,000 984 +8,175 N/ A N/ A Average CH/ A Average 1 Car Garage -4,000 Porch/ Patio 0 Yes 7,175 207,175 1224 N Turner Ave Fayetteville, AR 72703 0.34 miles E 255,000 249.76 ML#1321877;DOM 1 County Assessor Not Disclosed Not Disclosed 10/09/2025 Fee Simple Suburban/ Avg 12,632 sf 0 Residential/ Avg Ranch/ Avg Average 63 0 Fair to Average 6 3 1.0 +3,000 1,021 +5,400 N/ A N/ A Average CH/ A Average 1 Car Garage -4,000 Porch/ Patio 0 No -20,000 15,600 239,400 The sales utilized in this report were based upon their location, age, dwelling size, condition, and market appeal. The sales were researched and verified through county assessor records and the Northwest Arkansas multi-list service. Other sales were researched; however, these are considered to be the most instructive as of the date of the appraisal. The subject is compatible with homes located in the defined neighborhood. The sales have been weighted on their similarity and percentage adjustments. The subject is inferior in number of bedrooms but superior in number of bathrooms. The location of the subject in the flood plain is inferior to similar homes not in the floodplain. This adverse site condition can vary from year to year based upon perceived flooding, flood insurance rates, and governmental development restrictions. 217,000 Form GPRES2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE File No.: TR A N S F E R H I S T O R Y My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Data Source(s): 1st Prior Subject Sale/Transfer Date: Price: Source(s): 2nd Prior Subject Sale/Transfer Date: Price: Source(s): Analysis of sale/transfer history and/or any current agreement of sale/listing: SA L E S C O M P A R I S O N A P P R O A C H SALES COMPARISON APPROACH TO VALUE (if developed)The Sales Comparison Approach was not developed for this appraisal. FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address Proximity to Subject Sale Price $$$$ Sale Price/GLA $/sq.ft.$/sq.ft.$/sq.ft.$/sq.ft. Data Source(s) Verification Source(s) VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjust.DESCRIPTION +(-) $ Adjust.DESCRIPTION +(-) $ Adjust. Sales or Financing Concessions Date of Sale/Time Rights Appraised Location Site View Design (Style) Quality of Construction Age Condition Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count Gross Living Area sq.ft.sq.ft.sq.ft.sq.ft. Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck Net Adjustment (Total)+-+-+-$$$ Adjusted Sale Price of Comparables $$$ Summary of Sales Comparison Approach Indicated Value by Sales Comparison Approach $ Copyright© 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited. 3/2007 Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 260305RESIDENTIALAPPRAISALSUMMARYREPORT Land sales in the area were researched through the Northwest Arkansas MLS. Zoning, geography, and land size were all taken into account and an opinion for estimated site value was found. N/ A N/ A N/ A N/ A Physical depreciation is calculated using the effective age/ economic life method based on a sixty year scale. N/ A N/ A 217,000 The income approach was not utilized since the subject property is located in an area of mostly owner occupied single family homes. The sales comparison approach has been given all of the weight since the cost approach was not necessary due to good market information. The subject property value could easily range from $215,000 to $225,000 depending on mortgage and insurance rates. 217,000 03/23/2026 23 Scope of Work Limiting Cond./Certifications Narrative Addendum Photograph Addenda Sketch Addendum Map Addenda Additional Sales Cost Addendum Flood Addendum Manuf. House Addendum Hypothetical Conditions Extraordinary Assumptions City of Fayetteville 113 W Mountain St, Fayetteville, AR 72701 Chris Hamaker Boston Mountain Real Estate 479) 251-8600 appraisal@cox-internet.com 03/24/2026 CR2256 AR None 06/30/2026 03/23/2026 Form GPRES2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE File No.: CO S T A P P R O A C H COST APPROACH TO VALUE (if developed)The Cost Approach was not developed for this appraisal. Provide adequate information for replication of the following cost figures and calculations. Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value): ESTIMATED REPRODUCTION OR REPLACEMENT COST NEW Source of cost data: Quality rating from cost service:Effective date of cost data: OPINION OF SITE VALUE =$ DWELLING Sq.Ft. @ $=$ Sq.Ft. @ $=$ Sq.Ft. @ $=$ Sq.Ft. @ $=$ Sq.Ft. @ $=$ Garage/Carport Sq.Ft. @ $=$ Total Estimate of Cost-New =$ Less Physical Functional External Depreciation =$() Depreciated Cost of Improvements =$ As-is'' Value of Site Improvements =$ INDICATED VALUE BY COST APPROACH =$ Comments on Cost Approach (gross living area calculations, depreciation, etc.): Estimated Remaining Economic Life (if required):Years IN C O M E A P P R O A C H INCOME APPROACH TO VALUE (if developed)The Income Approach was not developed for this appraisal. Estimated Monthly Market Rent $X Gross Rent Multiplier = $Indicated Value by Income Approach Summary of Income Approach (including support for market rent and GRM): PU D PROJECT INFORMATION FOR PUDs (if applicable)The Subject is part of a Planned Unit Development. Legal Name of Project: Describe common elements and recreational facilities: RE C O N C I L I A T I O N Indicated Value by: Sales Comparison Approach $Cost Approach (if developed) $Income Approach (if developed) $ Final Reconciliation This appraisal is made ''as is'',subject to completion per plans and specifications on the basis of a Hypothetical Condition that the improvements have been completed,subject to the following repairs or alterations on the basis of a Hypothetical Condition that the repairs or alterations have been completed,subject to the following required inspection based on the Extraordinary Assumption that the condition or deficiency does not require alteration or repair: This report is also subject to other Hypothetical Conditions and/or Extraordinary Assumptions as specified in the attached addenda. Based on the degree of inspection of the subject property, as indicated below, defined Scope of Work, Statement of Assumptions and Limiting Conditions, and Appraiser’s Certifications, my (our) Opinion of the Market Value (or other specified value type), as defined herein, of the real property that is the subject of this report is:$, as of:,which is the effective date of this appraisal. If indicated above, this Opinion of Value is subject to Hypothetical Conditions and/or Extraordinary Assumptions included in this report. See attached addenda. AT T A C H M E N T S A true and complete copy of this report contains pages, including exhibits which are considered an integral part of the report. This appraisal report may not be properly understood without reference to the information contained in the complete report. Attached Exhibits: SI G N A T U R E S Client Contact:Client Name: E-Mail:Address: Appraiser Name: Company: Phone:Fax: E-Mail: Date of Report (Signature): License or Certification #:State: Designation: Expiration Date of License or Certification: Inspection of Subject:Interior & Exterior Exterior Only None Date of Inspection: Supervisory or Co-Appraiser Name: Company: Phone:Fax: E-Mail: Date of Report (Signature): License or Certification #:State: Designation: Expiration Date of License or Certification: Inspection of Subject:Interior & Exterior Exterior Only None Date of Inspection: Copyright© 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited. 3/2007 mailto:appraisal@c ox-internet.com Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 260305 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is 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 each 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 U.S. 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. (Source: FDIC Interagency Appraisal and Evaluation Guidelines, 2010.) Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The appraiser has made no survey of the property. 3. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 4. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. This appraisal report must not be considered an environmental assessment of the subject property. 6. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and any applicable federal, state or local laws. 8. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. 10. The appraiser is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting from the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Form ACR2_DEFD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE File No. Page 1 of 2 Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 260305 CERTIFICATION: The appraiser certifies and agrees that: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. Unless otherwise indicated, I 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. 4. Unless otherwise indicated, I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 5. I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared. 9. Unless otherwise indicated, I have made a personal inspection of the interior and exterior areas of the property that is the subject of this report, and the exteriors of all properties listed as comparables. 10. Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification (if there are exceptions, the name of each individual providing significant real property appraisal assistance is stated elsewhere in this report). 2400 W Valley Dr, Fayetteville, AR 72703 Chris Hamaker Title:Certified Residential CR2256 AR 06/30/2026 03/24/2026 Title: Form ACR2_DEFD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE File No. ADDRESS OF PROPERTY ANALYZED: APPRAISER: Signature: Name: State Certification #: or State License #: State:Expiration Date of Certification or License: Date Signed: SUPERVISORY or CO-APPRAISER (if applicable): Signature: Name: State Certification #: or State License #: State:Expiration Date of Certification or License: Date Signed: Did Did Not Inspect Property Page 2 of 2 Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 260305 FOR FEDERALLY RELATED TRANSACTIONS Borrower Lender/Client N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Floodplain Buyout City of Fayetteville AE 05143C0204G 01/25/2024 Fayetteville TCSE, LLC Form MPA4 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Boston Mountain Real Estate MULTI-PURPOSE SUPPLEMENTAL ADDENDUM Property Address City County State Zip Code This Multi-Purpose Supplemental Addendum for Federally Related Transactions was designed to provide the appraiser with a convenient way to comply with the current appraisal standards and requirements of the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of Currency (OCC), the Office of Thrift Supervision (OTS), the Resolution Trust Corporation (RTC), and the Federal Reserve. This Multi-Purpose Supplemental Addendum is for use with any appraisal. Only those sections and statements which have been marked by the appraiser apply to the property being appraised. PURPOSE, INTENDED USE & INTENDED USER(S) OF APPRAISAL The purpose of the appraisal is to estimate the market value as defined herein, or Intended use of the appraisal report: Intended user(s) of the appraisal report (by name or type): This is a federally related transaction. EXTENT OF APPRAISAL PROCESS The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection of the subject property and neighborhood, and selection of comparable sales within the subject market area. The original source of the comparables is shown in the Data Source section of the market grid along with the source of confirmation, if available. The original source is presented first. The sources and data are considered reliable. When conflicting information was provided, the source deemed most reliable has been used. Data believed to be unreliable was not included in the report nor used as a basis for the value conclusion. The Reproduction/Replacement Cost is based on: supplemented by the appraiser's knowledge of the local market. Physical depreciation is based on the estimated effective age of the subject property. Functional and/or external depreciation, if present, is specifically addressed in the appraisal report or other addenda. In estimating the site value, the appraiser has relied on personal knowledge of the local market. This knowledge is based on prior and/or current analysis of site sales and/or abstraction of site values from sales of improved properties. The subject property is located in an area of primarily owner-occupied single family residences and the Income Approach is not considered to be applicable. For this reason, the Income Approach was not used. The Estimated Market Rent and Gross Rent Multiplier utilized in the Income Approach are based on the appraiser's knowledge of the subject market area. The rental knowledge is based on prior and/or current rental rate surveys of residential properties. The Gross Rent Multiplier is based on prior and/or current analysis of prices and market rates for residential properties. For income producing properties, actual rents, vacancies and expenses have been reported and analyzed. They have been used to project future rents, vacancies and expenses. FEMA FLOOD HAZARD DATA Flood map is attached Subject property is not located in a FEMA Special Flood Hazard Area. Subject property is located in a FEMA Special Flood Hazard Area. Zone FEMA Map/Panel #Map Date Name of Community The community does not participate in the National Flood Insurance Program. The community does participate in the National Flood Insurance Program. It is covered by aregular program. It is covered by anemergency program. Analysis/Comments: CURRENT SALES CONTRACT The subject property iscurrently not under contract. The contract and/or escrow instructions were not available for review. The unavailability of the contract is explained later in the addenda section. The contract and/or escrow instructions were reviewed. The following summarizes the contract: Contract Date Amendment Date Contract Price Seller Owner of Record The contract indicated that personal propertywas not included in the sale. The contract indicated that personal propertywas included. It consisted of Estimated contributory value is $ Personal property was not included in the final value estimate. Personal property was included in the final value estimate. The contract indicatedno financing concessions or other incentives. The contract indicatedthe following concessions or incentives: If concessions or incentives exist, the comparables were checked for similar concessions and appropriate adjustments were made, if applicable, so that the final value conclusion is in compliance with the Market Value defined herein. Analysis/Comments: Page 1 of 3 Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 0-3 months 0-3 months NWAMLS 225,000 N/ A County Assessor 3 years County Assessor 1 year None of the comparable sales have transferred within the previous 12 month period. Form MPA4 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE MARKET OVERVIEW Include an explanation of current market conditions and trends. is considered a reasonable exposure time for the subject property at a value range of $to $ Analysis/Comments: is estimated to be the marketing time for the subject property. Analysis/Comments: Marketing Factors: SUBJECT PROPERTY OFFERING INFORMATION According to the subject property: has not been offered for sale in the past:30 days 1 year 3 years. is currently offered for sale for $. was offered for sale within the past:30 days 1 year 3 years for $. Offering information was considered in the final reconciliation of value. Offering information was not considered in the final reconciliation of value. Offering information was not available. The reasons for unavailability and the steps taken by the appraiser are explained later in this addendum. Analysis/Comments: SALE/TRANSFER HISTORY & ANALYSIS OF SUBJECT PROPERTY According to the following data source(s): the subject property: Has not transferred in the past one year.in the past three years.in the past five years. Has transferred in the past one year.in the past three years.in the past five years. All prior sales or transfers occurring in the past prior to the Effective Date of Appraisal are listed below. Date of Sale/Transfer Price of Sale/Transfer Seller Buyer Data Source(s)Effective Date of Data Sources Subject Sale/Transfer History Analysis/Comments: SALE/TRANSFER HISTORY & ANALYSIS OF COMPARABLE SALES According to the following data source(s): all prior sales or transfers occurring in the past prior to the most recent date of sale or transfer are listed below. PRIOR SALE/TRANSFER #COMPARABLE #COMPARABLE #COMPARABLE # Date of Sale or Transfer Price of Sale or Transfer Seller Buyer Data Source(s) Effective Date of Data Source(s) PRIOR SALE/TRANSFER #COMPARABLE #COMPARABLE #COMPARABLE # Date of Sale or Transfer Price of Sale or Transfer Seller Buyer Data Source(s) Effective Date of Data Source(s) Comparables Sale/Transfer History Analysis/Comments: Page 2 of 3 Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 1) The analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice USPAP''). 2) Their compensation is not contingent upon the reporting of predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 3) This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. The appraiser's opinion of value is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions unless otherwise stated in this report. The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively unless otherwise stated in this report. It is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental environmental conditions on or around the property that would negatively affect its value. The highest and best use is single family residential. 03/23/2026 03/23/2026 03/24/2026 Chris Hamaker (479) 251-8600 AR CR2256 06/30/2026 84-1647202 Form MPA4 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE ADDITIONAL CERTIFICATIONS The Appraiser certifies and agrees that: ENVIRONMENTAL LIMITING CONDITIONS HIGHEST & BEST USE ANALYSIS Analysis/Comments: As Vacant: As Improved: EFFECTIVE DATE OF APPRAISAL (if not current, see comments). This appraisal report reflects the following value:Current Retrospective Prospective Effective Date of the Appraisal: Comments on the Effective Date ADDITIONAL COMMENTS APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION Appraiser's Signature Inspection Date Signed Date Appraiser's Name Phone # State License or Certification #Exp.Tax ID # Appraiser is certified under the following CE program(s). CO-SIGNING APPRAISER'S CERTIFICATION The co-signing appraiserhas personally inspected the subject property, both inside and out, and has made an exterior inspection of all comparable sales listed in the report. The report was prepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts responsibility for the contents of the report including the value conclusions and the limiting conditions, and confirms that the certifications apply fully to the co-signing appraiser. The co-signing appraiserhas not personally inspected the interior of the subject property and: has not inspected the exterior of the subject property and all comparable sales listed in the report. has inspected the exterior of the subject property and all comparable sales listed in the report. The report was prepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts responsibility for the contents of the report, including the value conclusions and the limiting conditions, and confirms that the certifications apply fully to the co-signing appraiser with the exception of the certification regarding physical inspections. The above describes the level of inspection performed by the co-signing appraiser. The co-signing appraiser's level of inspection, involvement in the appraisal process and certification are covered elsewhere in the addenda section of this appraisal. CO-SIGNING APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION Co-Signing Appraiser's Signature Inspection Date Signed Date Co-Signing Appraiser's Name Phone # State License or Certification #Exp.Tax ID # Co-Signing Appraiser is certified under the following CE program(s): Page 3 of 3 Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Clarification of Scope of Work and Intended Users Intended Users -The intended user of this appraisal report is the client. The intended use is to evaluate the property that is the subject of this appraisal for a Floodplain Buyout, subject to the stated scope of work, purpose of the appraisal, reporting requirements of this appraisal report form, and definition of market value. No additional intended users are identified by the appraiser. The Appraiser does not intend use of this appraisal and appraisal report by other users. Unless otherwise identified by the Client as being an Intended User, all other third parties are considered to be unintended users, including, but not limited to the current owner of the subject property, the borrower in the pending loan transaction, other mortgage lending institutions and other governmental agencies not involved in the mortgage lending process. Specifically, any potential buyers or outside lenders contemplating purchase or mortgage activity on this property are urged to seek a separate opinion of value from a competent and duly licensed/ certified appraiser. Any additional requests in this assignment by third parties must be requested in writing and may either be declined or, if performed, may be subject to additional billing to recover costs associated with such requests. Intended Use – The Intended Use of this appraisal and appraisal reports as stated in the report form is “for the client to evaluate the property that is the subject of this appraisal for personal purposes only.” No other intended uses have been communicated to the Appraiser and none are assumed. Pursuant to USPAP SR1-2.a, this appraisal is developed strictly and solely in accordance with those intended uses communicated to the Appraiser at the time of engagement. If a third party to this appraiser-client relationship desires an appraisal for their own uses, they are urged to seek one developed specifically for their uses from a competent and appropriately licensed/ certified appraiser. The Appraiser in this assignment cannot accept responsibility for uses not otherwise identified at the time of engagement. Therefore, the Appraiser does not intend use of this appraisal report for other purposes. Use – Reading the appraisal report or processing he report does not constitute use. Relying on the appraisal report to understand how the appraiser developed the opinion of value does not constitute use. Use means relying on the appraisal report to make a decision or to take an action. The purpose of the Appraiser’s clarification of the Intended Users and Intended Use is to establish specific expectations for this work-product in compliance with USPAP, as opposed to the additional undisclosed and/ or unknowable expectations as are omitted in the form report. Any criticism of this apparent contradiction should be directed to the weaknesses of the language used in the form, which is considered a vehicle for communicating the results of an appraisal developed and reported by the Appraiser. Adequacy of Scope – The Appraiser has proposed, and the Client has agreed (prior to submission), that the level of development and reporting detailed above is sufficient to address the substantiate criteria of a reasonable Scope of Work within the context of the Intended Users and Intended Use. With the exception of revisions made for the purpose of correction of any errors, the Appraiser does not anticipate further development or reporting requirements for this assignment. Any additional requests from the Client or any third parties may represent a change in the assignment conditions and require the development of a new assignment. With the exception of corrections or any errors or omissions, any additional requests must be made in writing and may be subject to additional billing to recover the costs associated with the additional work. The appraisal is based on the information gathered by the Appraiser from public records, other identified sources, complete visual observation of the subject property, its neighborhood, and selection of comparable sales within the subject’s market area. The original source of the comparables is shown in the Data Source section of the market grid along with the source of confirmation, if available. The sources and data are considered reliable. When conflicting information was provided, the source deemed most reliable was used. Data believed to be unreliable was not included in the report nor used as a basis for the value conclusion. The appraiser is not a home inspector and the appraisal report is not a home inspection. The appraisal report cannot be relied upon to disclose hidden defects that are not apparent from a visual observation of the surfaces of the subject property from standing height. The testing of systems (structural, electrical, mechanical, heating, cooling, plumbing) and components (such as appliances, fixtures, doors, windows, etc.) lies outside the scope of this appraisal assignment. This report is not intended for use by anyone for the purpose of identifying and adverse conditions in the subject’s systems and components that might be revealed by any inspections by licensed professionals in any relevant field. This appraisal does not guarantee that the subject property is free of undetected problems, possible defects or environmental hazards that could exist. Scope of Work 260305 N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Chris Hamaker CR2256 AR 03/24/2026 Form TADD2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Borrower Lender/Client Property Address City County State Zip Code File No. Signature Name State Certification #State Or State License #State Date Signed Signature Name State Certification #State Or State License #State Date Signed Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Complete visual observation of the interior area of the subject property: A visual observation from standing height of the accessible areas and unobstructed, exposed surfaces of the living area without removal of personal possessions. It includes the visual observation of attached automobile storage, if any, as well as any attached accessory buildings judged by the appraiser to have contributory value. Complete visual observation of the exterior area of the subject property: A visual observation of the unobstructed, exposed, and accessible perimeter of the residential improvements from standing height. It includes the visual observation of attached automobile storage, if any, as well as any attached accessory buildings judged by the appraiser to have contributory value. Living area: Living area is defined as legal, finished, permanently heated, living space contiguous with other living area and regarded by a typical purchaser as being habitable and as having utility. The visual observation of the attic, the crawl space, any unfinished basement, and below grade storage is based on HUD’s “head and shoulders” requirement. This appraisal report conforms to The American National Standards Institute ANSI Z765-2021. This appraisal utilizes digitized electronic signatures that prevent altering of the appraisal report in any manner without the removal of the Appraiser’s signature. These signatures are secure and irrevocable, binding the Appraiser(s) to the accuracy and completeness of the appraisal report. Additional Comments The comments in this addendum are intended to expand on the information provided on the form appraisal. It is our desire to ensure that the client fully understands the appraisal process and methodology as well as the facts pertinent to the valuation of the subject property. The expanded narrative provided in this addendum is an effort to clarify those areas of the report that we have found to cause the most concern to our clients. In the market grid, ROOM COUNT contains an adjustment for bathrooms. The next line, GROSS LIVING AREA (GLA), contains the adjustment for GLA, total room count and bedroom count as a single adjustment. Note that any extreme in living area and / or room count may result in a functional utility adjustment under the separate line UTILITY. The sketch of the subject property is primarily to assist the reader (reviewer) in visualizing the property as we have seen it from the visual inspection of the subject property. The floor plan provided is not intended to duplicate the builder’s plan to scale, but rather to be a guide to the reviewer in evaluating normal traffic patterns within the property. Areas of limited access (attic, crawl spaces, eaves, etc.) may not necessarily be inspected due to limited access. For the purposes of this appraisal, a condition for any such applicable area is determined after a visual inspection of related/ adjoining parts of the structure. An appraiser is a trained and experienced observer of real estate, but recognizing, detecting, or measuring contamination is often beyond the scope of the appraiser’s expertise. Remediation and compliance cost estimation involves knowledge and experience beyond that of most appraisers. This inspection is not intended to serve as a termite inspection, although any observed problems are noted in the appraisal. The buyer or homeowner should contact a qualified inspectional professional for this service if so desired. In the preparation of this appraisal some or all of the photographs may be digitized. In no case have the photos been altered or manipulated in any manner. All photos are accurate representations of the properties. Opinions or estimates expressed herein represent the Appraiser’s best judgment, but should not be construed as advice or recommendation to act. The Appraiser should be contacted with any questions before this report is relied upon for decision making. This appraisal represents an estimate of value based on analysis of information known to the Appraiser at the time of engagement. The Appraiser and Boston Mountain Real Estate, Inc. do not assume any responsibility for incorrect analysis due to incorrect or incomplete information, which was provided to the Appraiser. If new data or documentation is provided to the Appraiser, the value in this report is subject to change based on the significance of this new data. Soils known to be unstable (shrink or swell) exist in Northwest Arkansas. This type of soil condition causes the soil around the foundation of a dwelling to expand and contract due to changes in its water content. Indications of this problem include: Foundation walls that are buckled or bowed. Doors and window that stick or do not open. Cracks in the foundation walls. Cracks in the exterior walls. Cracks in the interior walls and ceilings. Sunken or buckled interior concrete floors. While the Appraiser has made a diligent observation of the subject property and none of the indicators were noted, the only way to insure that this problem is not present is to have the property tested or inspected by a professional in that field. Scope of Work 260305 N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Chris Hamaker CR2256 AR 03/24/2026 Form TADD2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Borrower Lender/Client Property Address City County State Zip Code File No. Signature Name State Certification #State Or State License #State Date Signed Signature Name State Certification #State Or State License #State Date Signed Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Comments on the Sales Comparison Analysis The comparable sales are adjusted for site and location to note differences in estimated market differences between the subject and comparables listed in this report. Quality of construction differences are noted between the subject and comparables based on the workmanship and materials used. The construction differences are noted for interior and exterior quality. The comparables effective ages have been adjusted between the subjects effective age to represent differences in physical depreciation. Since not every subject can be compared to “ideal” comparable sales, the Appraiser has chosen what are believed to be the best comparable sales available from a thorough and extensive search for comparable sales data in the subject’s market. The sales selected for use in the analysis are considered to be the best indicators of value for the subject property. Other sales reviewed would have required excessive adjustments and were not considered to be as reliable as the comparable sales chosen. Adjustments with the Sales Comparison Analysis are based on the market extraction method, generally employing the matched pair process, and not specifically based on cost figures. To the best of the Appraisers knowledge, all comparable sales were sold with no special or creative financing or sales concessions. Closing costs paid by the sellers of the comparable properties are equivalent to typical financing terms offered by third party institutional lenders in the local market. In the Appraiser’s opinion, these sales represent typical market financing transactions. The sales prices are not considered to be inflated due to special or excessive financing concessions. The indicated values of the comparable sales reflect the value of the subject real estate and include only those sellers closing costs normally paid by tradition or law in the market area. Gross living areas shown for the comparable sales are estimates based on information from one or more of the following sources: Northwest Arkansas Multiple Listing Service (MLS), county/ city tax records, real estate agents, homeowners, builders, appraisers, interoffice data bank, or actual measurements. Slight variations in size will have no effect on the estimate of value. Gross living area adjustments are not adjusted for square footage differences of five percent or less. All comparable sales are settled to the best of the Appraiser’s knowledge. Verification is with county records and/ or the Realtor. The appraiser certifies and agrees that this appraisal report was prepared in accordance with the requirements of Title XI of the Financial Institutions, Reform, Recovery, and Enforcement Act (FIRREA) of 1989, as amended (12 U.S.C. 3331 et seq.), and any applicable implementing regulations in effect at the time the appraiser signs the appraisal certification. Scope of Work 260305 N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Chris Hamaker CR2256 AR 03/24/2026 Form TADD2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Borrower Lender/Client Property Address City County State Zip Code File No. Signature Name State Certification #State Or State License #State Date Signed Signature Name State Certification #State Or State License #State Date Signed Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Form PIC4x6.SR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Subject Photo Page N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Subject Front Sales Price GLA Total Rooms Total Bedrms Total Bathrms Location View Site Quality Age 2400 W Valley Dr N/ A 1,093 5 2 1.5 Suburban/ Avg Residential/ Avg 16,393 sf Average 59 Subject Rear Subject Street Borrower Lender/Client Property Address City County State Zip Code Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Form PIC4X6.SR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Subject Photo Page N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Living Room Sales Price G.L.A. Tot. Rooms Tot. Bedrms. Tot. Bathrms. Location View Site Quality Age 2400 W Valley Dr N/ A 1,093 5 2 1.5 Suburban/ Avg Residential/ Avg 16,393 sf Average 59 Kitchen Dining Borrower Lender/Client Property Address City County State Zip Code Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Form PIC4X6.SR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Subject Photo Page N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Bedroom Sales Price G.L.A. Tot. Rooms Tot. Bedrms. Tot. Bathrms. Location View Site Quality Age 2400 W Valley Dr N/ A 1,093 5 2 1.5 Suburban/ Avg Residential/ Avg 16,393 sf Average 59 Bedroom Mechanical Borrower Lender/Client Property Address City County State Zip Code Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Form PIC4X6.SR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Subject Photo Page N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Half Bathroom Sales Price G.L.A. Tot. Rooms Tot. Bedrms. Tot. Bathrms. Location View Site Quality Age 2400 W Valley Dr N/ A 1,093 5 2 1.5 Suburban/ Avg Residential/ Avg 16,393 sf Average 59 Bathroom Utility Borrower Lender/Client Property Address City County State Zip Code Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Form SKT.BLDSKI - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Building Sketch N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Borrower Lender/Client 26 2 4. 8 20 5. 1 Property Address City County State Zip Code Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Form PIC4x6.CR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Comparable Photo Page N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Comparable 1 Proximity Sale Price GLA Total Rooms Total Bedrms Total Bathrms Location View Site Quality Age 2227 W Hatfield St 0.16 miles E 224,000 1,128 6 4 1.0 Suburban/ Avg Residential/ Avg 17,424 sf Average 59 Comparable 2 Proximity Sale Price GLA Total Rooms Total Bedrms Total Bathrms Location View Site Quality Age 1119 S Ellis Ave 2.31 miles SE 200,000 984 5 3 1.0 Suburban/ Avg Residential/ Avg 12,632 sf Average 65 Comparable 3 Proximity Sale Price GLA Total Rooms Total Bedrms Total Bathrms Location View Site Quality Age 1224 N Turner Ave 0.34 miles E 255,000 1,021 6 3 1.0 Suburban/ Avg Residential/ Avg 12,632 sf Average 63 Borrower Lender/Client Property Address City County State Zip Code Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Form MAP.FLOOD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Flood Map N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Borrower Lender/Client Property Address City County State Zip Code Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Aerial Map N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Borrower Lender/Client Property Address City County State Zip Code Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Location Map N/ A 2400 W Valley Dr Fayetteville Washington AR 72703 City of Fayetteville Borrower Lender/Client Property Address City County State Zip Code Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 X Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5 3/12/2026 | 2:36 PM PDT Docusign Envelope ID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Docusign Envelope ID: 36412BE0-33E6-4F72-80C2-EED94FE8C3D5DocusignEnvelopeID: 30300694-B965-4EAB-9ABB-736CCB2269B1Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370