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HomeMy WebLinkAbout228-26 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 228-26 File Number: 2026-3472 A RESOLUTION TO APPROVE THE PURCHASE APPROXIMATELY 42 ACRES OF PROPERTY LOCATED AT 4995 WEST WEDINGTON DRIVE IN THE AMOUNT OF $7,600,000.00, TO APPROVE A CONTINGENCY IN THE AMOUNT OF $20,000.00, AND TO APPROVE A BUDGET AMENDMENT WHEREAS, the parks system continues to see increased demand for field space for a variety of activities including open, free play, rugby, youth football and ultimate frisbee; and WHEREAS, the Parks and Recreation System Master Plan identified the need for park land acquisition in gap areas primarily on the west side of town with additional recommendations including adding more fields in response to the increased demand; and WHEREAS, in addition to planning for population growth, a subcommittee of the Parks and Recreation Advisory Board began to work with staff to identify potential properties for acquisition to meet these needs and, after a thorough review of service area gaps, the property located at 4995 W. Wedington Drive was identified as the top priority; and WHEREAS, the property owner is interested in leaving a legacy of greenspace for the community and worked with staff to negotiate the purchase price; and WHEREAS, this acquisition will support the development of a community park on this west side of town including multi-use fields and the addition of a west side recycling drop off and road realignment of N. 51st Avenue and N. Broyles Avenue to create a safer intersection. 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 4995 West Wedington Drive in the amount of $7,600,000.00, approves a contingency in the amount of $20,000.00, and further authorizes Mayor Rawn to sign the agreement and all closing documents. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget amendment, a copy of which is attached to this Resolution. Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Resolution: 228-26 File Number: 2026-3472 Page 2 PASSED and APPROVED on October 20, 2026 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-3472 MEETING OF OCTOBER 20, 2026 TO: Mayor Rawn and City Council THROUGH: Jennifer Walker, Chief of Staff FROM: Alison Jumper, Director of Parks, Natural Resources and Cultural Affairs SUBJECT: Approval of a Resolution to Purchase Property Located at 4995 W. Wedington Drive RECOMMENDATION: Staff recommend approval of a resolution authorizing the purchase of approximately 42.23 acres of property located at 4995 W. Wedington Drive (APN# 765-16189-000 & 765-24420-000) from Paul Marninoni Farms, LLC in the amount of $7,600,000 under the attached Land Sale Agreement and up to $20,000 for associated closing costs, for a total authorization of $7,620,000 and approval of a budget amendment. BACKGROUND: The parks system continues to see increased demand for field space for a variety of activities including open, free play, rugby, youth football and ultimate frisbee. The Parks and Recreation System Master Plan identified the need for park land acquisition in gap areas primarily on the west side of town (Active and Well Goal C2: Strategy c, Goal C3:Strategy e). The plan also recommends adding more fields in response to the increased demand. In 2026, the voters approved 25.5 million dollars in bond funds for Parks and Recreation, with land acquisition as an allowable use. For these reasons, and to plan for population growth, a subcommittee of the Parks and Recreation Advisory Board began to work with staff to identify potential properties for acquisition to meet these needs. After a thorough review of service area gaps and undeveloped greenspace suitable for multi-use fields, the approximately 42.23 acre property located at 4995 W. Wedington Drive rose as the top priority. Staff worked with the subcommittee and the Friends of Fayetteville Parks to begin a conversation with the landowner. The item will be presented to the Parks and Recreation Advisory Board for recommendation on October 5, 2026. DISCUSSION: The acquisition will support the development of a community park on the west side of town, including multi-use fields. It will also support the addition of a west side recycling drop-off and a road realignment of 51st Ave and Broyles Ave to create a safer intersection. Question 3 of the 2026 Bond Initiative included land acquisition for parks and greenspace. Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov The property owner is interested in leaving a legacy of greenspace for the community and worked with staff to negotiate the purchase price of $7,600,000. The agreement outlines four additional terms including: a. The family of Paul Marinoni, Jr. shall have naming rights for the park to be developed on the Property pending final approval by the Fayetteville City Council in accordance with § 97.088 of the Fayetteville City Code without any additional payment being required. b. The park will include a memorial bench or monument in honor of the family of Paul Marinoni, Jr. with the exact wording to be arrived upon in collaboration between Seller and the City in accordance with the provisions for recognition signs in § 97.088 of the Fayetteville City Code without any additional payment being required. c. Seller shall have the option, at Seller's sole expense, to remove any of the existing farm structures, including the machine sheds and pole barn, on the Property. Such removal shall be accomplished prior to the closing date unless the parties agree in writing to a later date. However, in no event shall the deadline be extended beyond March 1, 2027. If the structures are not removed by that date, the Seller's interest in those structures shall be forfeited and the option to remove them shall be terminated. d. The City expressly acknowledges and agrees that the Property is being conveyed solely for the benefit of the public. The land will be used primarily for parkland, recreation, and open space but may also be used for other public purposes including a community center or recycling center. The City will work expediently after closing to rezone the property to P-1, Institutional. The Property shall be maintained and operated by the City for public purposes and the City will not sell, lease, exchange, or otherwise transfer ownership or control of the Property. Three appraisals have been completed for the property. Two were commissioned by the City and one was requested by and completed for the land owner. CBRE, Inc. completed the first City appraisal on July 5, 2026, and valued the land at $4,400,000. MAC Valuation Group completed the second City appraisal on September 9, 2026, and valued the land at $8,120,000. Reed & Associates prepared the landowner's appraisal, which valued the land at $7,840,000 as of December 5, 2025. The CBRE and Reed appraisals reference an acreage of 43.89 acres, while the MAC VG appraisal references 42.23 acres because it is accounting for two right of way acquisitions from the property in 2003 and 2005. Staff did not rely on the CBRE appraisal because it valued the property only under its current zoning (R-A and RSF-4) and treated a rezoning as unlikely. It did not consider the City's Future Land Use Map, which identified this area as mixed use, which could include commercial and neighborhood services. Both MAC VG and Reed based the appraisal on a highest and best use of mixed use, as the City’s Land Use plan indicates. The $7,600,000 purchase price is $520,000 below the MAC Valuation Group appraisal and $240,000 below the landowner's appraisal. BUDGET/STAFF IMPACT: Funds will come from the following sources: The Recycling and Sustainability bond share pays for approximately one acre site of the West Side Recycling Drop-Off at the same price per acre as the rest of the property. Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov Funding Source Project Amount 2250 – Parks Development (PLD SW) 46050.7515.1000 385,439 4705 – Parks 2022 Bonds 46050.7515.1000 1,293,600 4805 – Parks 2024 Bonds 46050.7515.1000 767,800 4905 – Parks 2026 Bonds 46050.7515.1000 5,000,000 4907 – Recycling & Sustainability 2026 Bonds 49070.7750.1000 173,161 7,620,000 ATTACHMENTS: 3. Staff Review Form, 4. Land Sale Agreement, 5. Budget Adjustment, 6. City Appraisal Summary #1 for Marinoni Farms Property - CBRE, 7. City Appraisal Summary #2 for Marinoni Farms Property - MAC VG, 8. Landowner Appraisal Summary for Marinoni Farms Property - Reed & Associates Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2026-3472 A RESOLUTION TO APPROVE THE PURCHASE APPROXIMATELY 42 ACRES OF PROPERTY LOCATED AT 4995 WEST WEDINGTON DRIVE IN THE AMOUNT OF $7,600,000.00, TO APPROVE A CONTINGENCY IN THE AMOUNT OF $20,000.00, AND TO APPROVE A BUDGET AMENDMENT WHEREAS, the parks system continues to see increased demand for field space for a variety of activities including open, free play, rugby, youth football and ultimate frisbee; and WHEREAS, the Parks and Recreation System Master Plan identified the need for park land acquisition in gap areas primarily on the west side of town with additional recommendations including adding more fields in response to the increased demand; and WHEREAS, in addition to planning for population growth, a subcommittee of the Parks and Recreation Advisory Board began to work with staff to identify potential properties for acquisition to meet these needs and, after a thorough review of service area gaps, the property located at 4995 W. Wedington Drive was identified as the top priority; and WHEREAS, the property owner is interested in leaving a legacy of greenspace for the community and worked with staff to negotiate the purchase price; and WHEREAS, this acquisition will support the development of a community park on this west side of town including multi-use fields and the addition of a west side recycling drop off and road realignment of N. 51st Avenue and N. Broyles Avenue to create a safer intersection. 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 4995 West Wedington Drive in the amount of $7,600,000.00, approves a contingency in the amount of $20,000.00, and further authorizes Mayor Rawn to sign the agreement and all closing documents. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget amendment, a copy of which is attached to this Resolution. Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Resolution: 228-26 File Number: 2026-3472 Page 2 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 City of Fayetteville Staff Review Form 2026-3472 Item ID 10/20/2026 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Alison Jumper 9/29/2026 PARKS & RECREATION (520) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommend approval of a resolution authorizing the purchase of property located at 4995 W. Wedington Drive (APN# 765-16189-000 & 765-24420-000) in the amount of $7,600,000 with additional terms and up to $20,000 for associated closing costs, for a total authorization of $7,620,000 and approval of a budget amendment. Budget Impact: xxxx.xxx.xxxx-5805.00 2250 - Parks Dev, 4705 - Parks Bonds 2022, 4805 - Parks Bonds 2024, 4905 - Parks Bonds 2026, 4970 - Sustainabilty Bonds 2026 Account Number Fund 46050.7515.1000 / 49070.7750.1000 Parks Land Acquisition / West Side Recycling Facilities Project Number Project Title Budgeted Item?Yes Total Amended Budget $7,234,561.00 Expenses (Actual+Encum)$- Available Budget $7,234,561.00 Does item have a direct cost?Yes Item Cost $- Is a Budget Amendment attached?Yes Budget Amendment $385,439.00 $307.00 Remaining Budget $7,620,000.00 Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 10/20/2026 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 City of Fayetteville, Arkansas - Budget Amendment/Adjustment (Agenda) Budget Year Division /Org2 PARKS & RECREATION (520) BA Number 2026 Requestor:Alison Jumper BUDGET AMENDMENT/ADJUSTMENT DESCRIPTION: Staff recommend approval of a resolution authorizing the purchase of property located at 4995 W. Wedington Drive (APN# 765-16189-000 & 765-24420-000) in the amount of $7,600,000 with additional terms and up to $20,000 for associated closing costs, for a total authorization of $7,620,000 and approval of a budget amendment. COUNCIL DATE:10/20/2026 ITEM ID#:2026-3472 Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.2026914TOTAL385,439 385,439 Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 2250.520.9256-5805.00 385,439 -46050 7515.1000 EX Land - Acquisition 2250.520.9256-4419.02 -385,439 46050 7515.1000 RE Greenspace Fees - SW -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 CBRE Valuation & Advisory Services cbre.com/valuation Appraisal Report 43.89 ACRES 4995 W Wedington Drive Fayetteville, Arkansas 72704 Prepared for: City of Fayetteville Date of Report: July 5, 2026 CBRE F ile No.: CB26US064966-1 Client Reference No.: 2026-00000728 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 CBRE Valuation & Advisory Services CBRE VALUATION & ADVISORY SERVICES 1 © 2026 CBRE, INC 438 E. Millsap, Suite 103 Fayetteville, AR 72703 T (479) 442-7401 F (479) 442-7806 www.cbre.com/valuation Date of Report: July 5, 2026 CITY OF FAYETTEVILLE 1455 S Happy Hollow Rd Fayetteville, Arkansas 72701 RE: Appraisal of: 43.89 Acres 4995 W Wedington Drive Fayetteville, Washington County, Arkansas CBRE File No. CB26US064966-1 Client Reference No.: 2026-00000728 Dear Client: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 43.89-acre tract of vacant land located at 4995 W Wedington Drive in Fayetteville, Arkansas. The site is generally rectangular shaped with a small irregular feature at the southwest corner and is considered to have a generally level topography. Currently, the site is improved with a single-family residence built in 1951 and accessory agricultural improvements; however, given recent development, the existing improvements do not offer any contributory value to the site. The subject is more fully described, legally and physically, within the enclosed report. Based on the analysis contained in the following report, the market value of the subject is concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion As Is - Land Fee Simple Estate June 11, 2026 $4,400,000 Compiled by CBRE The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 CBRE Valuation & Advisory Services cbre.com/valuation The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non -intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Jacob White Jason Bitter, MAI Title: VAS - Vice President Title: Managing Director Phone: (479) 442-7401 Phone: (816) 968-5877 Email: Jake.White@cbre.com Email: Jason.Bitter@cbre.com License No. & State: CG3691 AR License No. & State: CG5380 AR Maxwell Fanning Title: VAS - Vice President Phone: (479) 442-7401 Email: Maxwell.Fanning@cbre.com License No. & State: CG3800 AR Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Executive Summary CBRE VALUATION & ADVISORY SERVICES vii © 2026 CBRE, INC Executive Summary Property Name Location Parcel Number(s) Client Client Reference Number Highest and Best Use As If Vacant Property Rights Appraised Date of Inspection Estimated Exposure Time Estimated Marketing Time Primary Land Area 43.89 AC 1,911,848 SF Zoning Buyer Profile owner-user 43.89 Acres June 11, 2026 Residential 2026-00000728 4995 W Wedington Drive Fayetteville, Washington County, AR 72704 City of Fayetteville 765-16189-000, 765-24420-000 Fee Simple Estate 6 - 12 Months 6 - 12 Months R-A & RSF-4 VALUATION Total Per SF Land Value $4,400,000 $2.30 CONCLUDED MARKET VALUE Appraisal Premise Interest Appraised Value As Is - Land Fee Simple Estate $4,400,000 Compiled by CBRE June 11, 2026 Date of Value Market Volatility Recent military action between an Israeli/U.S. coalition and Iran has heightened global economic uncertainty and risks. The situation remains extremely fluid with a variety of possible outcomes. Impacts on real estate are highly dependent on both the length and scope of the conflict. Beyond the duration and scope of the conflict, potential risks include the impact on energy infrastructure in the Gulf states and the transit of oil and gas through the Strait of Hormuz. There are implications for global supply chains, as well as the cost of capital and capital markets activity. Amid increased uncertainty, the Fed will likely hold interest rates steady as it assesses the economic implications but will likely resume rate cutting if the economy materially deteriorates. At the long end of the yield curve, investors have remained more concerned about inflation than growth since the conflict began. Long-term rates may drop if the Middle East conflict escalates and/or economic conditions worsen, which would likely drive more capital to safe havens. Experience has shown that consumer and investor behavior can quickly change during periods of heightened volatility. Lending or investment decisions should consider the potential for a continuation of recent volatility, which may affect market conditions disproportionately, depending on asset class. Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Executive Summary CBRE VALUATION & ADVISORY SERVICES viii © 2026 CBRE, INC It is important to note that the conclusions set out in this report are valid as at the valuation date only. Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events. Extraordinary Assumptions An extraordinary assumption is defined as “an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” 1 • None noted Hypothetical Conditions A hypothetical condition is defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purposes of analysis.” 2 • None noted Ownership and Property History OWNERSHIP SUMMARY Item Current Current Ownership Owner:Paul Marinoni Farms, LLC Sale in Last 3 Years?:No County/Locality Name:Washington Pending Sale Under Contract:No Current Listing Currently Listed For Sale:No Compiled by CBRE CBRE is unaware of any arm’s length ownership transfers of the property within three years of the date of appraisal. Further, the property is not reportedly being offered for sale as of the current date. Currently, the property is not listed for sale; however, the City of Fayetteville has been in communication with the property owner about potentially acquiring the site in order to make it into a park. Exposure/Marketing Time Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market 1 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 2 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Executive Summary CBRE VALUATION & ADVISORY SERVICES ix © 2026 CBRE, INC prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following: • exposure periods for comparable sales used in this appraisal; • the opinions of market participants. The following table presents the information derived from these sources. EXPOSURE/MARKETING TIME DATA Exposure/Mktg. (Months) Investment Type Range Average Comparable Sales Data 6.0 -18.0 12.0 Local Market Professionals 6.0 -12.0 9.0 CBRE Exposure Time Estimate CBRE Marketing Period Estimate Various Sources Compiled by CBRE 6 - 12 Months 6 - 12 Months Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 M A C V A L U A T I O N G R O U P APPRAISAL REPORT MARINONI FARMS | WEDINGTON DR 4995 W Wedington Dr Fayetteville, Arkansas PREPARED BY MAC Valuation Group 204 Executive Court, ste 301 Little Rock, AR 72211 +1 (501) 920-2334 www.macvaluation.com PREPARED FOR Molly Rawn The City of Fayetteville 113 W Mountain St Fayetteville, AR 72701 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 EXECUTIVE SUMMARY MAC VALUATION GROUP MAC-2614127 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 APPRAISAL REPORT ON THE PAUL MARINONI FARMS, LLC PROPERTY 43.89± ACRES OF LAND LOCATED AT THE SOUTHWEST CORNER OF W. WEDINGTON DRIVE AND N. BROYLES AVENUE, FAYETTEVILLE, WASHINGTON COUNTY, ARKANSAS FOR PAUL MARINONI PAMANGUS3@GMAIL.COM BY REED & ASSOCIATES, INC. 3739 N. STEELE BLVD., SUITE 322 FAYETTEVILLE, ARKANSAS #71-0564800 File No.6918-1 AS OF JANUARY 21, 2025 AND DECEMBER 5, 2025 (RETROSPECTIVE) (REVISED) 1 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Reed Associates, Inc. 3739 N. Steele Blvd., Suite 322, Fayetteville, AR 72703 * 479-521-6313 * Fax: 479-521-6315 * www.reedappraisal.biz Tom Reed, MAI Katie Hampton Shannon Mueller, MAI E. P. Scruggs III Blake Hopper Rob Potts Ann Julian May 21, 2026 Paul Marinoni Farms, LLC c/o Paul Marinoni pamangus3@gmail.com RE: Appraisal Report On The Paul Marinoni Farms, LLC Property; 43.89± acres of land located at the southwest corner of W. Wedington Drive and N. Broyles Avenue, Fayetteville, Washington County, Arkansas Dear Mr. Marinoni: In compliance with your request and for the purpose of estimating the retrospective market value of the above captioned property, I hereby certify that I have examined the subject property and have made a survey of matters pertinent to the estimation of value. I further certify that I have no interest, present or contemplated, in the property appraised and that my fee was not contingent upon the value estimate reported. The following written real property appraisal report contains data gathered in my investigation, information from my files, and shows the method of appraisal in detail. This report has been prepared under the Appraisal Report option. Due to my experience and education, I am qualified to appraise this type of property. This report represents a Revised Report. Based upon an analysis of relevant data and contingent upon the Assumptions and Limiting Conditions which follow and appear later in this report, it is my opinion the retrospective market values of the fee simple estate of the subject property, as of January 21, 2025, and December 5, 2025, was: January 21, 2025 - $7,455,000 December 5, 2025 - $7,840,000 2 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 The preceding value reflects terms equivalent to cash to the owner, and represents that for real property only. No personal property has been included in this valuation. The preceding value is contingent upon the following Extraordinary Assumptions: 1. That the subject and adjacent properties are in compliance with all applicable EPA regulations. 2. The land size is as indicated in this report. 3. There are no adverse easements/encroachments on the subject property. 4. The subject was in similar condition/composition on the effective dates of value as it was on the date of inspection. If any, or all, of these Extraordinary Assumptions proves to be untrue, the preceding value estimate could be influenced. The reader is referred to additional Assumptions and Limiting Conditions appearing in the Introduction Section of this report. The estimated exposure period for the subject property is one± year or less. Sincerely, Shannon Reed Mueller, MAI, R/W-AC, CG2302 REED & ASSOCIATES, INC. 3 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 SUMMARY OF IMPORTANT CONCLUSIONS Client: Paul Marinoni Farms, LLC , c/o Paul Marinoni Property: 43.89± acres of land located at the southwest corner of W. Wedington Drive (AR Hwy. 16) and N. Broyles Avenue, Fayetteville, Washington County, Arkansas Purpose Of The Appraisal: Retrospective market value estimate for tax purposes Property Rights Appraised: Fee simple estate Ownership Of The Appraised Property: Paul Marinoni Farms, LLC Effective Dates Of Value Estimates: January 21, 2025, and December 5, 2025 Description Of The Site: The subject site is located at the southwest corner of W. Wedington Drive (AR Hwy. 16) and N. Broyles Avenue, Fayetteville, Washington County, Arkansas. Subject site is indicated to contain approximately 43.89± acres or 1,911,848± SF. The site is slightly irregular in shape. The subject represents parcels 765-16189-000, 765-24420-000, as identified by the Washington County Assessor’s Record. The land size was taken from multiple Warranty Deeds filed with the Washington County Circuit Clerk. The property is accessed via W. Wedington Drive. W. Wedington Drive is a five lane, asphalt paved AR Highway, while N. Broyles Avenue is asphalt paved with two- lanes. Frontage is at, or near road grade. The property is subject to a 80’± gas easement along the west boundary, water/sewer easements along the boundaries of the site, as well as an additional water sewer easement extending easterly from the west property line to just east of the pond located on the site, and multiple easements in the rear 6.46± acres. The subject property also includes a pond in the north central portion of the site. The subject property is zoned R-A, Residential Agricultural by the City of Fayetteville. The City of Fayetteville Future Land Use Map indicates the preferred future use of the northeast 12 acres as City Neighborhood, while the remainder is designated as Residential Neighborhood. The topography of the subject property is rolling. The high elevation in the northeast corner is 1,240’, while the low elevation in the southwest corner is near 1,200’. A soil report on the subject was not provided, but there are no apparent adverse soil conditions. Building improvements are situated on nearby sites. Approximately 2.78± acres of the subject is located within area Flood Zone AE of Owl Creek in the southwest portion of the site as defined by FEMA. A flood zone map is presented in the Addenda of this report. All city utilities are available to the subject property. A survey is recommended. Please see the Description of Site section later in this report for further details. Description Of The Improvements: The site is improved with a single-family dwelling containing 1,671± SF, storm shelter, 6 pole sheds, and a lean-to. The improvements are older and do not represent the highest and best use of the property, therefore no longer contribute value to the land. 16 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849 Highest And Best Use: In my opinion, the highest and best use of the subject “as vacant” is for mixed use development, as demand dictates, within size, and easement limitations, that comply with potential zoning limitations. Final Value Estimate: January 21, 2025 - $7,455,000 December 5, 2025 - $7,840,000 The preceding values reflect terms equivalent to cash to the owner, and represents that for real property only. No personal property has been included in this valuation. The preceding value is contingent upon the following Extraordinary Assumptions: 1. That the subject and adjacent properties are in compliance with all applicable EPA regulations. 2. The land size is as indicated in this report. 3. There are no adverse easements/encroachments on the subject property. 4. The subject was in similar condition/composition on the effective dates of value as it was on the date of inspection. If any, or all, of these Extraordinary Assumptions proves to be untrue, the preceding value estimate could be influenced. The reader is referred to additional Assumptions and Limiting Conditions appearing in the Introduction Section of this report. The estimated exposure period for the subject property is one± year or less. 17 Docusign Envelope ID: 939FABA1-7EE7-867A-811B-3E8008FD2849