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HomeMy WebLinkAboutOrdinance 3625 FILED r ; ;t RECORD ' 92 RUG 14 MM 13 55 WASRiNV ( ON CO AR ORDINANCE NO . 3625 A . KSI LMEYER r AN ORDINANCE AUTHORIZING EMINENT DOMAIN a PROCEEDING FOR THE CITY TO OBTAIN TRACT NO , 73 OF THE AIRPORT FEDERAL LAND ACQUISITION p.y PROJECT , CONSISTING OF APPROXIMATELY 1 . 96 r ACRES OWNED BY MR , AND MRS , ALLEN HATCH , BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF d FAYE7TEVILLE , ARKANSAS : Section 1 . That the Board of Directors authorizes and directs the city attorney of the City of Fayetteville , Arkansas to initiate legal action in order to obtain property needed for the airport federal land acquisition project on the property described below : A ) Tract No . 73 , owned by Mr . and Mrs . Allen Hatch , containing approximately 1 . 96 acres , as more fully set forth in the legal description attached hereto as Exhibit nAn Section 2, The Board of Directors hereby determines that the immediate acquisition of the above-described property for the airport federal land acquisition project is necessary for runway approach and transitional area protection/obstruction removal and is essential for the public health , safety and welfare . Therefore , an emergency is hereby declared to exist and this ordinance being necessary for the public health , safety and welfare shall be in full force and effect from and after its passage and approval . PASSED AND APPROVED this 4th day , of August , 1992 . APPROVBy : ED : Mayo (1 111 i ) - ATTEST : By : • -Cite Cl 92 41394 _ O Y Jr CERT'IFICAT'E OF RECORD State of Arkansas SS City of Fayatteville I, ;sherry Thomps, City Clerk and Ez- Officlo :ecorder for the City of F'a;yettev;lle, do hereby certify thet the az ;sexed or foregoing is of record In my office and the same appears in OrdPnance Fi Resolution book at Page. I Witness my han end seai �thla —y�day of c C Stp C,sr: nd kr-Ornclol Recorder r1 - 1l1 ORDINANCE NO. 3626 STATE of ARKANSAS J as AN ORDINANCE AUTHOR- Cc of Washin ton IZING EMINENT DOMAIN 4' B PROCEEDING FOR THE CITY TO OBTAIN TRACT . NO. 73 OF THE AIRPORT FEDERAL LAND ACQUISI- 10 . D . 'Q/� hereby certify that I TION PROJECT. CONSIST- am the publisher of THE NORTHWEST ARKANSAS TIMES, a daily newspaper ING OF APPROXIMATELY 1 .96 ACRES OWNED BY having a second class mailing privilege, and being not less than four pages of five MR. AND MRS. ALLEN columns each, published at a fixed place of business and at a fixed (daily) intervals HATCH. continuous) in the Ci of Fayetteville, Cam of Washington, Arkansas for more BE . IT ORDAINED BY Y City Y tY B THE BOARD OF DIREC- than a period of twelve months, circulated and distributed from an established place TORS OF THE CITY OF of business to subscribers and readers generally of all classes in the City and County F A Y E T T E V. 1 L L E , ARKANSAS; for a definite price for each copy, ora fixed price per annum, which price was fixed Section 1 . That the at what is considered the value of the publication, based upon the news value and set- Board of Directors author- izes vice value it contains, that at least fiftycent of the subscribers thereto have aid Boa and directs the city at- Pcr P tomer of the Cay of Fayet- cash for their subscriptions to the newspaper or its agents or through recognized news legal Arkansas to inmate dealers over a Period of a least six months; and that the said news publishes an legal actin in order to ate Pcr P6Pcr tain property needed for the average of more than forty percent news matter. airport federal lana acquisi- tion project to the property I further certify that the legal notice hereto attached in the matter of A) Tract below: AI . & No. 73, owned by Y eco & Mrs. Allen Hatch, � 1 .96 - ions approximately [ O[ 1 .96 � acres, as more fully / set forth in the legal de- e re was ublished in the ular dail if said a for scription attached hereto as P B issue onewspaper Per Exhibit "A". I consecutive insertions as follows: Section 2. The Board Of Q� Directors Hereby deter- mines 1 �lf lxUl 2 miness that the immediate The first insertion on the day of 19 / acquisition of the above- described property for the airport federal lana acquisi- the second insertion on the day of 19 ition project is necessary for ,runway approach and trensk the third insertion on the de of 19 'tional area protection/ , Y obstruction removal and is ' essential for the public and the fourth insertion on the day of 19 health, safety and welfare. Therefore, an emergency is hereby declared to exist and this ordinance being necessary for the public health, safety and welfare PNZIdtmU General Manager shall be in full force and ef- fect from and after its pas- � L sage and approval. PASSED . AND AP- I Sworn to and subscribed before me on this day of PROVED this 4th day of August, 1992. APPROVED: 01A &Aoat 193a? By: Fred S. Vorsanger Mayor ATTEST: By: Sherry L. Thomas City Clerk EXHIBIT "A" Notary Public A part of Southwest Quar- ter of the Southwest Quar- ter of Section 33, Township 16 North, Range 30 West. My Commission Expires: 1 being more particularly de- ' /r scribed as follows, to-wit: Beginning at a Point On the west line of U.S. Highway ' 71 , which point is 811 .9 ' feet North of the South line - of said 40 acre tract, for a - beginning point to the lands �� herein being conveyed: Fees for Printing $: / 07 . thence wast approximately .: 200 feel: thence South 150 Cost of Proof $ • ' feet; thence West approxi- ' mately 100 feet: chance b .. South approximately 255.9 Total $ ' feet: thence East 150 feet; , thence North 100 feet: thence East 23 feet; thence North 83 feet: thence in a Northeasterly direction 62 feet to a point which is 66 feet West of the West line of said Highway; thence East 66 feet to the Wast line of said Highway; ' thence North 185.9 feet to the place of beginning. _ 1 i i Reed dLo a, . Ioff' I i PART I - INTRODUCTION i i i i i i i 1 C I deed d cd"act;a e j Aw. TABLE OF CONTENTS Title Page . . . . . . 1 Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 3 PART I - INTRODUCTION I Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Photographs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 14 Certificate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Assumptions and Limiting Conditions . . . . . . . . . . . . . . . . . . 16 - 17 Summary of Important Conclusions . . . . . . . . . . . . . . . . . . . . . 18 - 19 Qualification of Tom Reed . . . . . . . . . . . . . . . . . . . . . . . . . 20 - 21 i PART II - FACTUAL DESCRIPTION Identification of Property . . . . . . . . . . . . . . . • • • • • • • • • • 22 Purpose of the Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Definition of Market Value . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Property Rights Appraised . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Scope of the Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 - 25 Ownership of the Appraised Property . . . . . . . . . . . . . . . . . . 25 Area Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Area Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 - 33 Real Estate Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Neighborhood Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 - 36 Parcel Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Description of Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 - 41 Zoning and Assessment and Taxes . . . . . . . . . . . . . . . . . . . . . . 42 Zoning Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 i I� PART III - ANALYSIS OF DATA AND OPINIONS OF THE APPRAISAL Highest and Best Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 - 46 Cost Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 - 54 Sales Comparison Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 - 69 Income Capitalization Approach . . . . . . . . . . . . . . . . . . . . . . . 70 - 81 Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 - 83 i PART IV - ADDENDA WarrantyDeed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Location Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 - 86 i. Flood Plain Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Property Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 - 93 Mobile Home Inspection Report . . . . . . . . . . . . . . . . . . . . . . . . 94 - 104 Income Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 - 106 Appraisal Request Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 - 109 4 /rI I S` 0 J / , • I I I BAILEY DRIVE FRONTAGE • • •'\'�';'Yt�''.I� Vii . ', �•� � � �/•I ''• \� � A�• ��(' ` 7J°' rf y�{ �•'G iM7�* ��� • �^' `{F �•VHF Photographs , Cont ' d . DRIVEENTRANCE TO MOBILE HOME PARK FROM BAILEY • TRAILER NO * I PROPERTY OWWERfS RESIDENCE p ��!,;����� J Ji' /II Reedd cd"Ocit /. Photographs , Cont ' do II. 1 r,� �t1L ,•j 7 '.. s • , • .-tom,,:}, l� �_ d I1 � t, lot Aw �I�I TRAILER NO * 4 , 2 TRAILER NOs 5. Photographs , pppppp TRAILER , • i � •,ISI ', r i� TRAILER NOSJ ' AV Reed f / Photographs , Cont ' d , .l ����, IIIM1M1M1 - •. . � ti. /. J ff�((111SSp11��7.➢➢O+LLL.'t% , • �„ �,,,� • � �*''.. ....>/rte'} 1 .� S. +rY•fr' '� 4 h nr e � '3` -•a4•^3•r1 1 f µf,.rt•, .. }� - ;tea ♦ ^'u •Sn.J\ p=ps)a f' ! /r' s TRAILER • TRAILER ljJail Spp' I ►���n11�1110 • yh o • � _,; � � �t f4 4 �• .�N` * rMZY bra � •t7' .. ,�( �: + i L� ` �• Y ill �1 � it � ty + NIL i �� , , . .. A . I yiPp ••{;y LTRCIt;% `'fS mow' -••'•'T .%ON ' fl y y. i a { j Iii• -°t hey i!k .,.;• ' 1 ________ ___ J -• •4c . Ji .�.y�� '• • �n C M . • • fi '• t1♦ • 1 V '• 1• �`Yla�ri►! 111"' 1jYy .., i • `� K 1 w �_. :Fit. t I i W.1'� �..\ Jti� 2aL� nn y '..�J -1 ! / >rr _�.. r� . . .� ' •~"L C. .•r. T� l+'!h•1l./, . e.i. !1T41V11WI1 (y{Vii 1 :{'.l.!i� Ali (!.a I/ ��fY•.I -tw11 • �,• 1ill • fi, ,. J� am. r... ... r.,1 .flUt*t,),' .� f ��. ..M v y. {.in 'j fl 1• r'~1i�b[L�Q� " >�-(r•T� • Jr�t n •l.l . �q P • 'i C III • � �� �� � R !:At. i S .. .. .. Iaw_ .I weed d s oc aced, Inc. CERTIFICATE I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions,- aiid conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. - I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent upon the reporting of a 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. The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. - My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. I, Tom Reed, have made a personal inspection of the property that is the subject of this report. - No one provided significant professional assistance to the person signing this report. I certify that, to the best of my knowledge and belief, the reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. - I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. - As of the date of this report, I, Tom Reed, have completed the requirements of the continuing education program of the Appraisal Institute. Respectful1 s bmitted, Tom Reed, MAI REED & ASSOCIATES, INC. 15 °mod d Qaaoc:ako, AM ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and merchantable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by otherS is believed to be reliable. However, no warranty is given for its accuracy. 5. All 'engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 16 1 1 . r 1 1 I I 1 t I 11 I I I I I °Reed if . aaocualea, .nc. Assumptions and Limiting Conditions - Cont'd. 10. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless not0d.in.the report. 11. "Unless otherwise stated in this :report, the existence of hazardous materials which may or may not be present on the property was not observed by the appraiser. No responsibility is assumed for any such conditions or any expertise or engineering knowledge required to discover them. The client is urged to retain an expert if desired." This appraisal report has been made with the following general limiting conditions. 1. The distribution; if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety. 3. The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. s I 17 SUMMARY OF IMPORTANT CONCLUSIONS Clients: W.D. Schock Company, Greenland, Arkansas Property Location: Southwest corner 'of U.S.. 71 Highway and Bailey Drive, Greenland, Arkansas; Owner's mailing address is Route 8 Box 100, Fayetteville, Arkansas Purpose of the Appraisal: Market Value Estimate Property Rights Appraised: Leased Fee Estate Scope of the Appraisal: The "Appraisal Process" was followed in estimating the market value of the subject property. Ownership of the Appraised Property: Allen C. Hatch Date of Value Estimate: January 29, 1992 Description of Site: 1.96+/- acres of commercial zoned property; Undulating to gently sloping topography; Typical public utilities available; Property is traversed by a drainage ditch; 12 space mobile home park with room for 2 more spaces. Description of Improvements: 722+/- SF frame, detached garage; 11 on -site mobile homes; Property owner occupies space number one; Typically rented by the week; Each space is individually metered; Park is 6+/- years in age and in average condition. Hiahest and Best Use: Estimated Site Value: Indicated Value By Cost Approach: Indicated Value By Sales Comparison Approach: Mobile Home Park $35,500 $224,000 $215,000 Indicated Value By Income Capitalization Approach: $230,000 t ELI i ISummary of Important Conclusions, Cont'd. I I I I I Final Value Estimate: Real Property Contributory Value of Mobile Homes:.: In Place & Reedy for Rental TOTAL _ $ 76,000 = 154,000 _ $230,000 The preceding value represents terms equivalent to cash to the owners. . It should be noted that subject property is traversed by a drainage ditch. The limit of the flood zone study is just east of subject. A survey is needed to make an exact determination if subject property is located in the 100 year flood zone. I hereby certify that this appraisal report conforms to Federal Aviation Administration Guidelines, to the best of my understanding. Only the interior of one trailer, number one, was examined. The preceding mobile home value is based on the assumption that the interior of each mobile home is in at least average condition with no major items of deferred maintenance. The preceding value is also subject to income/expense data furnished by Mr. Hatch being correct. Li LE weed d .1d%oocialeo, Lw. QUALIFICATIONS OF TOM REED Educational Background and Training B.S.B.A. in Finance/Real Estate -University of Arkansas, May 1973 Masters in Business Administration-Univer"sity'of Arkansas, r., :... May, 1978 - -. State Certified General Appraiser - CG0217 The following courses and/or exams given by The American Institute of Real Estate Appraisers have been successfully completed: Exam 8 (Residential Valuation) -1976 Exam 1A (Real Estate Appraisal Principles and Basic Valuation Procedures) -1977 Exam 2-3 (Standards of Professional Practice) -1982 & 1991 Exams 1B -A & 1B -B (Capitalization Theory and Techniques) - 1984 Exam 2-1 (Case Studies in Real Estate Valuation) -1984 Course 2-2 (Valuation Analysis and Report Writing) -1987 Exam lA-1 (Real Estate Appraisal Principles) -1988 Exam 1A-2 (Basic Valuation Procedures) -1988 Additional appraisal courses successfully completed include: Farm Manager and Rural Appraisal Course sponsored by The American Society of Farm Managers and Rural Appraisers -1976 Professional Experience Associate Appraiser with Adams Appraisal Co., Harrison, AR, from January, 1974, through December, 1977 Chief Appraiser and owner of Adams Appraisal Co., Springdale, AR, from December, 1977 to present Adams Appraisal Company renamed "REED & ASSOCIATES" as of July 1979, and Incorporated as of October, 1982 Professional Affiliations Arkansas Real Estate Salesperson's License -1972 Arkansas Real Estate Broker's License -1979 National Association of Realtors Arkansas Realtors Association-GRI District 3 Vice -President (1985) Board of Directors (1987-1989) Board of Realtors Springdale (President -1984) Fayetteville -Affiliate Membership Rogers -Affiliate Membership Member of the Appraisal Institute - #M7987 Arkansas Assessors Association -Senior Appraiser Level IV designation given by the Arkansas Coordination Div. Conventional Fee Appraiser -FNMA #1024389 Assessment t Qualifications, Cont'd. Clientele FAA Dept. of Transportation -Southwest Region -Ft. Worth, TX Federal Housing Administration -Little Roc)c, AR Farmers Home Administration -Harrison, Ye;ldville, & Mountain Home, AR Veteran's Administration -Little Rock, AR Corps of Engineers -Little Rock & Vicksburg Districts Cities of: Pea Ridge, Springdale, Fayetteville, Harrison, Bentonville, Mountain Home, Gravette First National Bank -Springdale, AR First State Bank -Springdale, AR Springdale Bank & Trust -Springdale, AR United Federal Savings Bank -Springdale, AR First National Bank -Rogers, AR MclLroy Bank -Fayetteville, AR First National Bank-Fayetteville,.AR One National Mortgage -Fayetteville, AR Collateral Mortgage -Fayetteville, AR First Financial Mortgage -Fayetteville, AR Other Mortgage Companies, Banks, & Savings & Loans Individuals & Attorneys Relocation Companies -Employee Transfer Company, Homequity, Realty Relocation Service Corp., Merrill Lynch Relocation Management, Equitable Relocation Service Mass Appraisal for Property Tax Purposes: Crawford County, Baxter County, Boone County, Carroll County Court Testimony Circuit Court -Harrison, Fayetteville, Bentonvile, Berryville, Eureka Springs, Mt. Home, & Fort Smith Federal Court -Harrison, Fayetteville, & Fort Smith Chancery Court -Harrison & Fayetteville Appraisal Seminars, 1990 Hotel/Motel Valuation -Deer Valley, Utah, January, 1990 HUD Single -Family Review Seminar -Hot Springs, AR April 9-10, 1990 VA Single -Family Review Seminar - North Little Rock, AR, August 3, 1990 Appraisal Seminars, 1991 VA Single -Family Review Seminar - North Little Rock, AR, August, 1991 Landfills and Their Effect Upon Value - Seattle, Washington, August, 1991 The Technical Inspection of Real Estate - Seattle, Washington, August, 1991 Residential St. Certification/Licensing Review - Little Rock, AR, October 18, 1991 General St. Certification/Licensing Review - Little Rock, AR, October 19, 1991 21 I • 4 I I PART II - FACTUAL DESCRIPTIONS I I I I I I I i 1 IDENTIFICATION OF PROPERTY A part of the Southwest Quarter of•the Southwest Quarter of Section 33, Township 16 North, Range 30 West, being more particularly described as follows, to *-± t:-,.• Beginning at a point on the west line of U.S. Highway 71,' which point is 811.9 feet North of the South line of• said 40 acre tract, for a beginning point to the lands herein being conveyed; thence west approximately 200 feet; thence South 150 feet; thence West approximately 100 feet; thence South approximately 255.9 feet; thence East 150 feet; thence North 100 feet; thence East 23 feet; thence North 83 feet; thence in a Northeasterly direction 62 feet to a point which is 66 feet West of the West line of said Highway; thence East 66 feet to the West line of said Highway; thence North 185.9 feet to the place of beginning. Survey which appears later, indicates slightly different dimensions. Survey will be relied on this report. PURPOSE OF THE APPRAISAL The purpose of this appraisal report is to estimate the market value of the subject property as of January 29, 1992. The client's intended use of this report is as a basis for acquisition of the property in connection with the Fayetteville Municipal Airport Land Acquisition Program. I I I I 22 GR.eed d daaocealeo, Inc. 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, eaEh acting prudently, knowledgeably, and assuming the price -is not. affected by undue stimulus. Implicitly 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: a. buyer and seller are typically motivated; b. both parties are well informed or well advised, and each acting in what he considers his own best interest; c. a reasonable time is allowed for exposure in the open market; d. payment is made in terms of cash in U.S. dollars or in term so financial arrangements. comparable thereto, and; e. 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." PROPERTY RIGHTS APPRAISED In this appraisal, we are concerned with the valuation of the leased fee estate of the subject property. Leased fee estate is defined as follows: "An ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right to repossession at the termination of lease. ,i2 Subject rental rates appear to lie within the market range ' for properties of this nature. Therefore, in my opinion, the value of the leased fee and fee simple estates are basically equal. 'American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, (Chicago: American Institute of Real Estate Appraisers, 1984), P. 194. 2American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, (Chicago: American Institute of Real Estate Appraiser, 1984), P. 123. 'American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, (Chicago: American Institute of Real Estate Appraisers, 1984), P. 152. 4Ibid, P. 152. ' 23 R# eeia J do4icez4i, Inc. SCOPE OF THE APPRAISAL The scope of this appraisal involves the application of the "Appraisal Process" in estimating the market value of the subject property. Subject site was last inspected -:on January 29, 1992. Pertinent locational and physical data was obtained at the property inspection. Mr.Hatch,the property owner, was present at the inspection. Some photographs were taken at the inspection as well as the exterior of the mobile homes examined. The legal description was furnished by the client. Also, a survey on the property was furnished by the client. Applicable property tax data was obtained at the Washington County Courthouse. The highest and best use of the property was projected based upon location, physical characteristics, zoning, existing and past usage, etc. Each of the three accepted valuation methods has been utilized in this report. The "Approaches to Value" are described later in the report. Marshall Valuation Service, a National Cost Service, was used to project the reproduction cost new of subject improvements. A local mobile home dealer was contacted on the average value per mobile home if the home is sold and moved. The information he provided dealt with Book Value. Subject improvements are not new and do suffer from accrued depreciation. The Economic Age -Life Method was used to estimate the accrued depreciation percentage. The indicated percentage depreciation was multiplied by reproduction cost new to arrive at the dollar estimate of accrued depreciation. Finally, comparable land sales were examined and analyzed for comparison purposes to the subject site. The estimated value of the subject site was added to the depreciated improvement value to arrive at the indicated value by the Cost Approach. 24 Scope of Appraisal, Cont'd. I I Cl I I I In the Sales Comparison Approach, sales of mobile home parks were examined and analyzed for comparison purposes to the subject property. There was not an abun'ance of mobile home park sales, especially •recent transactions. The sales utilized were considered the best available. The sales were compared to the subject property on a per space basis and adjustments made for differences to arrive at the indicated per space value for subject. The per space value was then multiplied by the number of spaces in subject park. This provided an estimate of value for the subject property, excluding the mobile homes. Four of the mobile home park sales also included mobile homes. Insufficient data was available on these mobile homes, however, an attempt was made to utilize the sales, including the mobile homes, to arrive at a total value of the subject property by the Sales Comparison Approach. Sales four and five were the primary comparables relied on. An effective gross income multiplier was developed from these sales and multiplied by subject's projected effective gross annual income to arrive at an indicated value. Mr. Hatch furnished income/expense data on subject mobile home park for 1989, 1990, and 1991. Copies of the 1989 and 1990 Schedule E from Mr. Hatch's tax returns appear in the "Addenda" of this report. This data was used in the Income Capitalization Approach. In addition, other mobile home parks in the Fayetteville -Springdale area were examined for comparable rentals. Annual net operating income for subject was projected at stabilized occupancy. An applicable capitalization rate was projected by the Band of Investment method and by Market Abstraction. Annual net operating income was divided by the selected overall capitalization rate to arrive at the indicated value by the Income Capitalization Approach. In conclusion, the value indications by each of the approaches were reconciled into a final estimate of defined value. OWNERSHIP OF THE APPRAISED PROPERTY Subject property is presently under the ownership of Allen C. Hatch. DATE OF THE APPRAISAL The effective date of this report is January 29, 1992. The date this appraisal report was prepared was March 11, 1992. 25 . 1 .r PF I I v ,� 1� 'WI ;L��.�„ --^� ;- .:•.I " 1t\ % -•l•i, `- 1 I I• 1 :: !: '•� •::,\_ u... 1T ..q k I „ :'.C 11.., �•,_ � / _r_ ;_ ,{' u�.L%:._.Yi. '. I ^_ e. ti ( Ilk Tar �\ T p • ,:, I. r,n_ t, I I r•1�'\\Y\, A.'I, I. w ``yR1 0E �n - I I 1\ I ,'. ,\ r rll`I i f'i .n �f1If�II(' .'. 4 J .. i I C. •9 . j :,.t - •. ! __ - - ... Y ic �1 rr1 0 j_ .._. ¶ • - •__t• , • •- rl I • III"' , � ` 1: • r ., T \ Ir otealil rgNe� �•y.r , • f I. r � f ,tM^ I r 1� onevf 11 A I r — • :N . •• , I.1 I fONESY' W11011e /t ' —•� - • —. 1 .._ FOREST ' d:::•.. If "Y. •' I •. •' V. r • V • • �Ik L I I • . e • f. ay ._• :''`' 4 It -, I ' I. I I t OF i It. t . H• t. :-i • T ,......•-t.a♦l y : 1 ' - • -LI •P--,...'1 �,r•. _z - •• - - -;h .- is __ __ V. u1: 4fr : :.. -p • I /111L a Ir__. 1/ ...*1• i' _ ��I�IY �. ri. Y' I n. M , •1111 F '✓ I J •.Y 1•:-Ir,� S �'l••)♦; li..,I_L'I-•-'$,•. — i�.k:•:!Y,�•.f -i� ', �,.I �y �,LL,..:i.'�s'�� •• I f. I -• f '`^- .��.. S' Y�j Y .l .JY •. .f !Irk`, ], r ., ` •— ;•}J.-.\-�L_ '.. 4 f 4±1! ': ' II. '• f • , \. 'I `.4 •1' , A.% `• tl�'J �, 1 I} _ I♦0111 1l / �I fr;th•'•. '\1 _ •;.{ 1[.1 V•: I: rJ��• •�' i;• I i\ t ;f •I I , /' I,'.�••' ) '. L� YY ' ,r , JI C I!,•.ti• 4 ••. ♦ • 1 I •l yrll 1�.:. ,,l IT�.'�1 ' '♦' ♦ Q 2P 1• 1'' !1 11 C ..,^I I f4!%\Li:$..::i.cII f.i/ TI 1t;:4tJ '/•' .i� .�.\% a •1 f l' 1 r I . The trade area includes Washington County and Benton County. The two counties are located in the extreme northwestern part of Arkansas. This area is bordered by the Oklahoma state line on the west, the Missout-.:.State line on the north, Carroll and Madison Countiesd' on the east, and Crawford County on the south. The., total area of Benton County is 886+/- square miles and Washington County is 963+/- square miles. The value of real property reflects and is influenced by the interaction of basic forces that motivate human activity. These forces are divided into four major categories: social trends; economic circumstances; governmental controls and regulations; and, environmental conditions. These forces exert pressure on human activities and are also affected by these activities. The interaction of all the forces influences the value of every parcel bf real estate in the market. SOCIAL FORCES: Social forces are exerted primarily through population characteristics. The demographic composition of the population reveals the potential, basic demand for real estate services. The population of Benton County in 1960, according to census figures, was 36,272. Washington County showed a population of 55,797 for the same year. The combined population in 1960 was 92,069. The 1980 census showed population figures of 78,115 and 100,494, respectively, for the two counties. This totals 178,607 for the two counties in 1980. The growth rate between 1960 and 1980 is computed to be 94+/-%, or 4.7%/year. The population of Benton County in 1990 was 97,499 and Washington County was 113,409. The combined population of the two counties in 1990 was 210,908, representing a 18.1% increase over 1980 or 1.81% year. Bentonville is the county seat of Benton County. This city is located in the north part of the county. Bentonville had a population of 8,756 in 1980, a 140% increase since 1960. The 1984 population of Bentonville was approximately 9,918. The 1990 population of Bentonville was approximately 11,257. Rogers is the largest city in the county. Its 1980 population of 17,429 showed a 206% increase in the last two decades. The 1984 population of Rogers was approximately 19,810 and the 1990 population was 24,692. Siloam Springs, located on the Oklahoma line in the southwest part of the county, is the third major city in the county. It grew from a population of 3,953 in 1960 to 8,151 in 1990, a 106% increase. 27 Area Data, Cont'd. , pflAL Some of the smaller cities and towns in Benton County include Gentry, Gravette, Pea Ridge, Lowell, Decatur, Cave Springs, Bella Vista (a large-Pcale planned unit development), etc. Within the county there. are a total of 18 incorporated towns and cities. Fayetteville is the county seat of Washington County. This city is located in the north central part of the county. Fayetteville had a population of 36,604 in 1980. This represented a 19.1% increase since 1970. The 1990 population of Fayetteville was approximately 42,099. Fayetteville is also the largest city in the county. Springdale is the second largest city in Washington County. Its 1980 population of 23,458 showed a 39.8% increase in the last 10 years. The 1990 population of Springdale was approximately 29,941. Some of the smaller cities in Washington County include Prairie Grove, Lincoln, Farmington, West Fork, Johnson, Elm Springs, etc. There are a total of 13 incorporated cities and towns within Washington County. The increased population trend is expected to continue in the Benton -Washington County area. This should at least sustain real property values and, in all probability, will have a positive effect. ECONOMIC FORCES: Econom: real property values. fundamental relationships supply and demand and the to satisfy its wants, purchasing power. .c forces are also significant to It is necessary to analyze the between current and anticipated economic ability of the population needs, and demands through its The estimated per capita personal income of Benton and Washington Counties in 1989 was $14,770 and $13,775, respectively. This compares to an estimated figure of $13,000 in 1989 for the State of Arkansas. Some 14% of the population of Arkansas are considered to have an annual income below the poverty level. The civilian labor force in Benton County numbered 53,450 in December, 1991. Washington County totaled 63,700 for the same time period. Benton and Washington Counties had unemployment rates in December, 1991, of 3.6% and 4.0%, respectively. The unemployment rates for the two counties weed d Scialr, gnc. Area Data, Cont'd. have remained relatively stable over the last four years. The unemployment rates for the State of Arkansas and the United States in December, 1991, were 7.2% and 7.1%, respectively. Regional building permits for 1991 reached a total value of $197,251,966, an increase of 20% from 1990. Individual permit categories for 1991 show residential up 45%, commercial down 2%, industrial down 95%, additions up 59%, and others down 1%. The number of residential building permits issued for new dwelling units appears to be up 48%. Statistics obtained from Northwest Arkansas Regional Planning Commission indicated the following figures with respect to value of building permits issued for 1991 compared to 1990: Bentonville' + 538 Fayetteville •- + 5% Rogers + 41% Siloam Springs - 38% Springdale + 45% County development indicators for the two counties for activity outside incorporated areas are as follows (Source - Northwest Arkansas Planning Commission): Benton County Washington County 1991 1990 1991 1990 Elec. Meters Placed 1240 1266 302 937 Septic Tank Permits 407 828 314 964 The percent change in electric meters placed for the region appears to be 30% downward while the number of septic tank permits issued decreased 59.8%. The economic base of the region consists of four basic areas: First, agricultural production with the primary commodities being beef cattle, dairy cattle, and poultry. The general offices of Tyson's Industries, the leader in the chicken industry, is located in Springdale in Washington County. Benton and Washington Counties are primarily rural in nature and, therefore, it would stand to reason that agriculture would be important to the area. There is also some cropland in the area, primarily green bean and orchard production. Second, influence from the University of Arkansas located in Fayetteville. Enrollment in the University ranges from 13,000+ to 15,000+ on an annual basis. The University provides considerable employment opportunities for area residents. It is not uncommon for 29 Area Data, Cont'd. residents of outlying areas of Benton and Washington Counties to work at the University. Third, , recreational usage primarily in the northeast part of Washington County, and the southeast, east and northeast:, parts of Benton County. This recreational usage is privjdii•ly provided by Beaver Lake, a Corps of Engineer reservoir on. the White River. Fourth, the large number of manufacturing businesses and small industries located within the two counties. Again, residents of outlying areas of the two, counties will commute to Fayetteville, Springdale, Rogers, Bentonville, etc. to work at these facilities. The general offices of Walmarts, a retail chain, are located in Bentonville. Most of the major industries are located in the larger cities in the counties, however, there are exceptions. McKee Baking is located in the small community of Gentry in the southwest part of Benton County. There are several financial institutions in Benton and Washington Counties. These institutions provide an adequate supply of funds for residential, commercial, industrial, and agricultural growth. The major commercial banks and savings and loan associations are located in Bentonville, Fayetteville, Rogers, Siloam Springs, and Springdale, with smaller banks and branches situated in many of the smaller communities. Currently, interest rates on long-term (15-30 years) residential first mortgages are in the 8 1/4% - 9% range. The maximum rate that can be charged on agricultural, commercial, industrial, and second mortgage residential loans in Arkansas is five points above the Federal Discount Rate. At the present time, the Federal Discount Rate is 3 1/2%, making the maximum allowable rate 8 1/2%. Real estate development in the area has primarily been centered in the major cities. However, rural development is also occurring with small acreage homesites visible throughout the two counties. Agricultural land values in the area generally followed the downward trend prevalent throughout the Midwest in the early and mid 1980's. However, falling land prices in the two counties primarily occurred between 1984 and 1986. The last few years have seen more of a stabilization in land values. Also, Benton and Washington Counties have not suffered as severely as other areas of the Midwest due to a lesser amount of low cropland. Economic data, for the most part, appears encouraging in the area and should also have a positive effect on real property values. Z�] Area Data, Cont'd. GOVERNMENTAL FORCES: Governmental, political, and legal actions at all levels have a great impact on property values. The county seats of Benton and Washington Counties, as previously discussed, are Bentonville •and Fayetteville, respectively. These two cities are some 30 minutes apart via U.S. Highway 71 Bypass. County government in each county is under the direction of the county judge and quorum court. Other elected county officials include the county clerk, circuit clerk, collector, and assessor. Property taxes in Arkansas are collected at the county level and distributed to the county, cities, and school districts. In Arkansas, all real property, except agricultural land, is appraised at market value. Agricultural land is valued based upon soil class productivity. The appraised value is multiplied by a 20% assessment ratio to arrive at the assessed value. The assessed value is then multiplied by the appropriate millage rate to arrive at the annual property tax. The tax is due by October 10th in the year after it is levied. Property taxes in Benton and Washington Counties are not out of line with what is experienced in other counties in the state. Benton and Washington Counties do not have county zoning at the present time. The major cities in the area do have zoning regulations. There are no adverse legislative restrictions on the use and development of real property in the area. Public utilities available in the rural areas of Benton and Washington Counties include electricity and telephone service. Natural gas and public water are also available in certain areas. Public sewer is available in the major cities and some of the small communities. Overall, governmental forces in the area provide a positive effect on real property values. Lack of public water and sewer in certain rural areas, however, is a drawback. ENVIRONMENTAL FORCES: Both natural and man-made environmental forces influence real property values. Environmental forces include climatic conditions, topography and soil, natural barriers to future development, primary transportation systems, and the nature and desirability of the immediate area surrounding a property. The two county area has relatively warm summers and mild winters. High temperatures in summer are often accompanied 31 Area Data, Cont'd. by high humidity. degrees. Each temperatures go al temperatures drop average of 6 to averages around 46 The average daily temperature is about 57 year there are about 58 days when )ove 90 degrees and only a few days when to freezing or belois'd The area has an 12 inches of snow "`annually. Rainfall inches annually. - The area is part of the Ozark Highlands. In Benton County, topography ranges from broad plains and rolling hills in the western and central parts to rocky, rough, steeper hills in the east. Much of the eastern one-third of the county is covered by Beaver Reservoir. The elevation increases from west to east and ranges from 1,000 to.1,700 feet above sea level. The elevation of Washington County also varies from 1,000 to 1,700 feet. In general, the topography is rough along the western, eastern, and northwestern boundaries. Extending through the heart of the county, from the Oklahoma line to the city of Springdale, is a plateau -like area consisting of rolling, reasonably level land. The city of Fayetteville, located in the edge of the Boston Mountain Range, is quite hilly. Soil and subsoil conditions within the two counties range from fair to good for agricultural purposes. There are natural barriers to real property development in the area. These consist primarily of mountainous regions, rivers, etc. However, many of these barriers have a positive effect on agricultural usage. The primary transportation routes in the two counties are U.S. 71 (North -South) and U.S. 412 (East-West). There are also numerous state highways and county roads providing adequate access throughout the area. Also, U.S. Highway 62 provides east -west access. Both U.S. 71 and U.S. 412 are very heavily traveled traffic arteries. U.S. 71 traverses Fayetteville, Springdale, Rogers, and Bentonville. U.S. 412 traverses Springdale and Siloam Springs. The two county area is reasonably well located and is within relatively short driving times of major metropolitan areas. Driving time to Tulsa is 2+/- hours, to Little Rock is 3- 4+/- hours, and to Kansas City is 4-5+/- hours. Environmental forces, for the most part, are considered favorable for real property development in the area. 32 Area Data, Cont'd. CONCLUSIONS Each of the major forces affecting real property values has been discussed in this section. The conclusion is that these forces appear to favorably influence real property values in the area. The trend in Benton and Washington Counties has been upward and the outlook for the future is good. Population growth is occurring at a fairly rapid pace spurring real estate development. Periodic downturns in the economy may take place, however, the strong economic base of the area should prevent a major recession. 33 AYE7TI:EV ILLS ;. Ci a ___ FJrry 1[.} p 1 YC; Wtl - ____ '�i-.., .. r. ' as NAn=. " 1 GIIIdIaMO 1Il��� 4V YPkl n !1 neat w.0 ♦�+ T T 1 r �e . ""J(7 .�. ai`: 1 fAY[iTFVII [— 1' Its •. - • •. r"\ r I e. n 1 ( :�i:•u� . .r. I.,..r .il FF 1 .'•I . ��.((��\N 1 •• L YY ..il I ".i L Iit 1• 4 N J{ j. �( \ . . .Tr' 'M..,//P N \.. 9• • Y' orn .1 :Li Ill I lr l; dl�yl i r1} ♦ ` 1 r.u. v .re fi y eyl . ♦.1• , IY`w' . 1( r n +. ` I N 1 ` ya•. {i r Fr O i r l YLL I. 4n I .• H 1 F�•'Y' Ir 1 •. l , lyi,?F. f . r yf I/�ti YIYJV J . e. e...e. r. ..•... ♦ 91r P ..�� +w:l •µ!y y, i.n 4 �1 rl .. w•uns 1. i.r VY ii j)' .. Y f •'14.1\� \d�•.i1 I'� `•.e( 1iil...e. I41 'MI�Q' 7 1 A�I wrw FII r 1 i n� Ir i1/• F .h I q•wn :ii IL L e(1 VJw \r •• 1 ww uP . u .Imn .• ii.. \-.r L" 1 IT11.. S...q.-a.....w� •• w .1 f . e , ,d 3 "� Es,.: I Il.e. .. ; c r: I, ♦Ai � .. ..c. 1 � std . .. 4 f _ lA it 1 ^� i' r � ..r. r• I 1 ) r r T!:T$T! ±1 1 t•. �Yr.✓• • r' .L: an�ri{aNY• ' hl r. .. ' . J y '1 T, t� 1 1 I y� R IN LI 11e I: .�" J 1�\�, d`r�`� {\ .♦/ • yL( SA I' r- I IJ �TG ' 1.11 .1 P11 �� •♦ I1.".y1f i/.� .r ':1'. • • II• ( I•IsLI 11 ��•1.1 .r1 r YY .� •.• .. �./w ♦j•, .{ . • \ iYn S' `ir I ♦ . r.• s re .: rr. •MJ ♦ • Y■ A ♦\ 1 I. Syr _ 1 •Y .... In %•II. WNli li E 1. ){f s .c {• .r ) 9"^I\4 �)l +}...• F.�. ., v Y J5 . V ♦ :::r.. a Y 1°A >iaY [?�,) R l% �.��•� :.. .I^ 1.i.S.. �, 1 ♦ P}. r._ulr • 1 : L.IY { 'fir 1 1• .Iw. { / • r �1 okt 1••9j' • •INo Y..,1. 1 i f ']�L 1 . T I I. L\ :.1• '1-J1•.rJI i" ♦.P 1 ,•..7 ` I;.. I • T:II \r '• '%l-♦.:... ••I ..r.. n. NEIGHBORHOOD DATA Neighborhood is defined as: "A group of complementary land uses."' Geographic Boundaries: The subject neighborhood is located in Greenland, Arkansas, along U.S. Hwy 71 and vicinity. The Highway 71 Bypass appears to be the North neighborhood boundary and the South Greenland City Limits are considered the southern, boundary. Arterial Roadways: The major roadway within the neighborhood is U.S. 71. This is a heavily traveled North -South thoroughfare with four lanes and a center turning lane. The 1988 Arkansas transportation Map indicates an average daily traffic count on 71 in the neighborhood ranging from 15,560.in the south to 18,000 in the North. The.1991 count is'expected to be higher. Built Up: The neighborhood appears to be over 75% developed, considering the Fayetteville Municipal Airport. The overall occupancy rate is in the 85 to 95% range. Summary/Conclusions: Subject property is located on the West side of U.S. 71 at the Southwest corner of the intersection of Bailey Drive with said 71. This location is in the North central part of the neighborhood. Property uses in close proximity to subject include: A residence to the west; A residence, welding shop, and small warehouse to the north across Bailey Drive; Fayetteville Municipal Airport property to the east, across U.S. 71; And, a mobile home park to the south. The Fayetteville Municipal Airport is located on the East side of U.S. 71 in the immediate subject neighborhood. Subject is located West, across 71 from the North end of the runway. The majority of the subject neighborhood is the small community of Greenland. Commercial and industrial property comprise the majority of neighborhood property use. The breakdown of property uses is estimated to be 15% single-family, 20% commercial, 30% industrial, and 35% vacant/airport. Utilities available in the neighborhood include public water & sewer, natural gas, electricity, and telephone service. 35 r' raWnr?refl'taahjmi Neighborhood Data, Cont'd. Subject neighborhood appears to be in the stability to declining stage of its life cycle. No new construction was observed. Marketing time fortproperties in the neighborhood appears to be over six months. 36 -""Parcel No. 73 1.96 Acres More or Less OWNER OF RECORD Allen C. Hatch farce! may /7.912710 DRAKE FIELD el® LINE — ORAnOe xAts ` Book 1208 —Rigs 484 kri.rLJ 1 A/L6Y DR/[mod' (is' ASPHALT) — _ N 88.0926' yl - 242,00' 1 — J IIauRI ,EM rM4 $ 1 Record Afn( Al II - IL r[I�I 1 in ' I I 71 It,, nI FRE Scab W I r! FRAME GARAGE \ II I R 104 V1I1 ^ ' MOeWE HOME r I a N 88.09'26/6r»ryGAt 7 0 k 0I 94.03' I z I •C�,ii S 88t9'25 E I _ 71,27' e I C� <<�r I II I —� J / 108 JII:7s o fl --c c n n ��I T I J S 86'09'26' E co ^ I I .. I / 23.00' \ t u I I1fi Ia 1 W — , I Z 0 J MoenE g HOME (fl AL) 0 g z or ^ 76 Y I I _�% ____S _88t9'26" E � a il 76 Y.WW Oa\t .I/IMR M-7�I,I I %OJOfN.e/1 . L/1Ne Roth — (&o NI,M [A.f Of 40 ACRE (RAC, f MII A err w MN� __�I , P'teel d do4ocbz ea, Inc. DESCRIPTION OF SITE Dimensions & Shape: Dimensions appear on facing page; Site is irregularly shaped. Area: 1.96+/- Acres; .= 85;378+/- SF; 182.67'+/- of frontage on the west right-of-way of U.S. 71; 242'+/- of frontage on the south side of Bailey Drive. It appears the east boundary of the site extends on to the 71 right-of-way. Topography: Undulating topography; U.S. 71 frontage grade; Also, a drainage ditch southeast corner of subject. conditions are not believed construction, however, a soil examined. Street Improvements-: Sidewalks _Yes x No curbs 71 Yes _No street paving Concrete x Asphalt On -site Parking Gravel Off -site Parking None to gently is slightly bi intersects 71 Soil and adverse to survey has Utilities: sloping alow road near the subsoil building not been water system: x public _comet indiv sewer system: x public _comm _indiv gas x Yes _No electric x PSC Rea Discussion of Economic Inadequacies, if any: Airport is nearby, however, this is not considered adverse to the site's highest and best use. In addition, the Arkansas - Missouri Railroad runs a short distance west of subject, however, this, too is not considered adverse to the site's highest & best use. Easements or Encroachments on site, if any: According to the survey, it appears three trailers from the adjoining mobile home part to the south encroach on the subject sit, one completely. Mr. Hatch indicated that the adjoining mobile home park used 1 1/2 spaces of his park. They pay him $1200 a year for this encroachment, however, are delinquent in their payments. No adverse easements were noted, however, the survey does not depict the location of utility easements. The flood zone map appearing in the "Addenda" of this report does not indicate subject to be located within the 100 year flood zone. However, the.map indicates the UJ weed I Seiatco, Lw. Description of Site, Cont'd actual limit of the study to be just east of subject. Considering that the south part of subject is traversed by a drainage ditch, it would appear logical that during times of heavy water flow in the :ditch, a flooding problem for the south part of the site might be created. However, according to Mr. Hatch, this has not been a problem. Site Improvements: Subject site is presently being utilized for a mobile home park. There are 12 usable spaces, with 11 spaces presently utilized. The property owner indicated there was sufficient room for two more spaces. Utilities are all underground and each space is individually metered. Each space has concrete runners with spaces one, two, eight, and nine having length runners and the remainder of the spaces having crosswise runners. These crosswise runners are typically 12'+/ - long. Spaces one and two, according to Mr. Hatch, have excessive concrete. Additional site improvements consist area, 25'+/- x 22'+/-, at space one, landscaping. Several mature shade hardwoods, were noted on the site. trees have diameters of 12", 20", 22" of a stone parking gravel drives, and trees, including Five of the larger 26", and 31". A satellite was also noted at space one. In addition, there is a 722+/- SF detached garage located in the north central part of the site. Construction is frame with composition shingle roof covering. The interior is unfinished. At the time of my inspection, there were 11 on -site mobile homes, spaces 1-11. Following is a list of the homes: Space 1 - 16' x 80' 1986 Oak Creek; Deluxe Model; 3 bedroom, 2 bath Space 2 - 14' x 70' 1984 Redman; 3 bedroom, 2 bath Space 3 - 14' x 70' 1983 Squire; 3 bedroom, 2 bath Space 4 - 14' x 60' 1981 Homette; 2 bedroom, 2 bath 39 uleed IS?cialea, Inc. Description of Site, Cont'd. Space 5 - 14' x 80' Oakland -Fleetwood; 3 bedroom, 2 bath Space 6 - 14' x 65' 1981 AlL American; 2 bedroom, 2 bath Space 7 - 14' x 67' 1983 Redman; 2 bedroom, 2 bath Space 8 - 14' x 64' 1985 Redman; 2 bedroom, 2 bath Space 9 - 14' x 65' 1983 Redman; 2 bedroom, 2 bath Space 10 - 14' x 65' Redman; Deluxe Model; 2 bedroom, 2 bath Space 11 - 14' x 80' 1984 Skyline; 3 bedroom, 2 bath A mobile home inspection report on each unit appears in the "Addenda" of this report. The reports were prepared by Don's Mobile Home Service of Fayetteville. The reports indicate compliance with code requirements and any repair needed work to the units. Also, the cost to prepare the unit for moving is indicated. The only noted repair work was as follows: Unit 4 - Kitchen floor is unsafe and needs to be replaced. Estimated cost is $375. Unit 5 - Seam coating on roof is peeling and roof needs to be resealed. Estimated cost is $336. Unit 6 - Roof coating is flaking off and roof needs to be resealed. Estimated cost is $273. The estimated cost to make the mobile homes ready to move was $650/unit except for unit one which would have an additional $150 cost due to an alternate heat/air duct system under the home. Mr. Hatch disagreed with the moving cost estimates provided by Don's Mobile Home Service. He felt the cost per unit would be $1050, including reskirting and air conditioner hook-up. Each mobile home has air conditioning except units three and seven. Also, each mobile home has a deck with an average size of 8' x 10'+/- except unit one which has 6P Description of Site, Cont'd. 20' x 10' and 3' x 10' decks. The property owner occupies unit one. Additional information on the mobileI--oines, provided by Mr. Hatch, is as follows: 1. Unit 3 has new carpet. 2. Unit 4 has a new 3 1/2 ton air conditioning unit. 3. Unit 5 is all electric. 4. A metal building is located adjacent Unit 7, however, is considered personal property and is not valued in this report. 5. Unit 8 has masonite siding and has a fireplace. 6. Unit 9 is in excellent condition. 7. Unit 10 has a jacuzzi tub. Typically, the mobile home units are rented by the week, however, unit five is rented monthly. Each unit is rented for $135/week (includes space) except numbers 5, 10, and 11 which rent for $425/month, $140/week, and $155/week, respectively. The property owner pays all utilities except on number five where the tenant pays the electric bill. At the time of my inspection, only unit eight was vacant and it was to be occupied soon. Subject mobile home park is approximately 6+/- years in age and is considered in average condition. Functional obsolescence is indicated in layout when compared to a new facility of this nature. No external inadequacies were observed. The effective age is estimated to be 5+/- years and the remaining economic life is projected to be 20+/- years. CONCLUSIONS Subject site relates reasonably well to its surroundings and is considered adequate for its present use. 41 3tee d d , Booth 4o, inc. ZONING Subject site is zoned C, General Commercial. The existing improvements and use appear _to be legal and permissible. d.,:. ASSESSMENT AND TAX The following data was obtained from the Washington County Assessor's Office: Assessed Value Tax Land $ 810 $ 30.62 Buildings 12,270 463.81 Total $13,080 $494.43 The 1991 tax is due October 10, 1992. Subject property was appraised for property tax purposes at $65,400. The assessment ratio is 20% and the 1991 millage rate is .0378. The appraisal for property tax purposes includes the land (indicated to be 2.12+/- acres), the garage, and five mobile homes. There are now eleven mobile homes on site. Therefore, the existing property tax is lower than it should be. In my opinion, if the additional mobile homes are considered, the annual property tax will increase $525+/-, assuming no change in the present millage rate. No special assessments were noted. 42 L.. • Zoning Map • f ; \ 1//!Sid h.. .1 71 y...• : - t 7' C At . ..::. -.. 14 R-1 R 2 . .. Y•..... t • .,„ K is ': : .. R-1 .• . R1 fl Taw II TN R1 [I J M • .r_1. '.i'. "l "..,'•i'.., .. LINE •MOSS vnL50N' O _ t R-1 L y R-1 •° NH N C i,: R_1 1 • CIIICL OP. . n -2 NAPIER 011. 4 Z • R-1 CKURCH On. O I 43 J• _ 1 . t II . I .. 1 - ; 1 nt' 1 . 1 1 I • I I I I I I. 1 ' I 4 1 R 1 . ..A AGRICULTU R-1 LO V/ DENS R-2 MEDIUM DE C GENERAL C' I INDUSTRIAL mftr :11_ HISTORY The present owner purchased the property from Jesse J. and Alice L. Schader on December 30, 1986. The deed is recorded in Book 1208, Page 484. The indicated -sales price was $60,000. Mr. Hatch indicated there was:i,house on the site at the time of the purchase, which he had moved.' A brief income/expense history on the subject property is as follows: - Gross Income $49,976 Operating Expenses $26,037 1990 1991 $59,192 $61,738 $24,259 $23,755 Net Operating Income $23,939 $34,933 $37,983 Mr. Hatch indicated, at the time of my inspection, that he owed $252,270 on the eleven mobile homes, or an average of $22,934 per home. However, information provided to other individuals connected with the airport expansion project was that approximately $190,000 was owed on the mobile homes. This computes to $17,273+/- per unit. 44 PART III - ANALYSIS OF DATA AND OPINIONS OF THE APPRAISAL • !/LeeQ € J1 i40c1 zk4, ti%w. HIGHEST AND BEST USE AND IMPROVEMENT ANALYSIS The definition of highest and best use is as follows: 1. The reasonable and probable use sphat,.supports the highest present value of vacant "land' or improved property, as defined, as of the date:of..the appraisal. 2. The reasonably probable and legal use of land or sites as though vacant, found to be physically possible, appropriately supported, financially feasible, and that results in the highest present land value. 3. The most profitable use. Implied in these definitions is that the determination of highest and best use takes into account the contribution of a specific use to goals as well as property owners. and best use of preservation, con like. "4 the community and community development the benefits of that use to individual Hence, in certain situations the highest land may be for parks, green belts, servation, wildlife habitats, and the The four tests that must be met to determine highest and best use are as follows: 1) Physically possible; 2) Legally permissible; 3) Financially feasible; And, 4) Maximally productive. Subject site consists of approximately 1.96+/- acres of improved commercial property. The site is zoned C, General Commercial. The location of the site is on the west side of U.S. 71 Highway at the southwest corner of the intersection of U.S. 71 and Bailey Drive. This location is in the north part of the Greenland City Limits. Fayetteville Municipal Airport property is located to the East across U.S. 71. Commercial/Industrial uses make up the bulk of the neighborhood property use. However, older residential uses are also visible. Development in the neighborhood is static at the present time. The physical characteristics of the site are considered reasonably conducive to commercial development. The site fronts the west right-of-way of U.S. 71 for approximately 182.67+/- and the south side of Bailey Drive for approximately 242'. The frontage is slightly below 71 road grade. Drawbacks are the irregular shape of the site and the drainage ditch which traverses the south part of the property. The south part of the site may lie in the 100 year flood zone, however, without a survey,, it is impossible 45 Highest and Best Use, Cont'd. to determine. The topography of the site is undulating to gently sloping. Typical public utilities are available. In my opinion, based on the preceding anal"ps`is;'•the highest and best use of the site as vacant is for -the construction of commercial service or retail improvements that are in compliance with existing zoning regulations and that do not suffer from any form of accrued depreciation. Subject site is presently improved with a 12 space mobile home park. There are eleven existing on -site mobile homes and a detached frame garage. The mobile home park is 6+/ - years in age and is in average condition. At the time of my inspection, ten of the units were occupied with the one vacant unit to be occupied in the near future. The property has a reasonably good appearance and has a -good history of steadily rising income. The net operating income has also shown definite improvement over the last three years. I seriously doubt that any other use of the site would produce greater net operating income than the present use. The mobile home park has substantial remaining economic life. In my opinion, the highest and best use of the subject site as improved is for the present use, a mobile home park. In summary, the highest and best use of the subject site is that indicated "as improved". 46 . APPROACH In the cost approach, an estimated reproduction or replacement cost of the building and land.. improvements as of the date of the appraisal is developed. together with the losses in value that have taken place du •to wear and tear, design and plan, or neighborhood influences. To the depreciated building cost estimate is added the estimated value of the land. The total represents the indicated value by the cost approach. The following terms utilized in the cost approach require defining: "Reproduction Cost is the estimated cost to construct, at current price, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship, and embodying all the deficiencies, superadequacies, and obsolescence of the subject building."5 "Replacement Cost is the estimated cost to construct, at current prices, a building with utility equivalent to the building being appraised, using modern materials and current standards, design, and layout." 6 "Accrued Depreciation is the difference between the reproduction or replacement cost of the improvements on the effective date of the appraisal and the market value of the improvements on the same date. Depreciation is caused by deterioration or obsolescence in the property. Deterioration is evidenced by the wear and tear on the structure. Functional obsolescence is caused by internal property characteristics such as poor floor plan, inadequate mechanical equipment, or functional inadequacy or superadequacy due to size or other characteristics. External obsolescence is caused by conditions outside the property such as a lack of economic demand, changing property uses in the area, or national economic conditions."' 'American Institute of Real Estate Appraisers, The Appraisal of Real Estate (Chicago: American Institute of Real; Estate Appraisers, Ninth Edition, 1987), P. 351. 6lbid, P. 352. 7Ibid, P. 353. 47 m Cost Approach, Cont'd. LAND VALUE ESTIMATE Comp #1 Location Sale Date Proximity to Subject Zoning Size Shape Topography Sale Price Price Per Acre Comments: Comp #2 y Comp #3 East side of NEC of 71B & W side of U.S. U.S. 71, south 26th Street 71,N of Branch of 71 BP Inter. Bank & across from airport 6-17-90 1-18-90 Listing .9+/- mile 1.4+/- miles .3+/- mile North North South Appears to be Appears to be C C-2 C-2 1.66+/- Acres 1.09+/- Acres 2.23+/- Acres Appears Appears Appears Irregular Irregular Irregular Gently Sloping Undulating to Undulating to Gently Sloping Gtly. Sloping $15,000 $40,000 $69,500 $ 9,036 $36,697 $31,166 Sale No. One Grantor: Grantee: Date of Sale: Recorded: Legal Desc.: Consideration: Size: Price Per Acre: Pearl Thurlby Kenneth Shepard June 17, 1990 Book 1349, Page 784 Part of Lots 3 and 6, Block 7, Sheltons Addition to Fayetteville $15,000 1.66+/- Acres $9036 48 Cost Approach, Cont'd. Remarks: Approximately 125' of frontage on U.S. 71, south of Skelton Street. Speculation is thatthe seller was motivated to sell and/;.�s- result, sold below market. Comparison to Sub.: Requires upward adjustment for conditions of sale; Reasonably similar in location and size; Requires upward adjustment for a lesser amount of 71 frontage per acre. Subject is a corner site. Overall upward adjustment of 55%; Indicated per acre value for subject of $14,006 ($ 9,036 x 1.55). Sale No. Two Grantor: Roy Teckell Grantee: Frank Shuler Date of Sale: January 18, 1990 Recorded: Book 1350, Pages 257 and 258 Legal Description: Lots 4, 5, and .6, Grandview Place Subdivision to Fayetteville. Consideration: $40,000 Size: 1.09+/- Acres Price Per Acre: $36,697 Remarks: Approximately 300'+/- of frontage on the east side of U.S. 71B across from Mexican Original. Site is level at road grade. Property was part of a trade, however, indications are that it was fully arms -length. Comparison to Sub.: Reasonably similar in location; Requires downward adjustment for smaller size and for substantially more 71 frontage per acre; Subject is a corner site. Overall downward adjustment of 50%; Indicated per acre value for subject of $18,349 ($36,697 x .50). Listing The third comparable utilized is a listing located on the west side of U.S. 7111, approximately .2+/- mile south of subject. The property is situated in the S 1/2 of the NW 1/4 of the NW 1/4 of 4-15-30. The location is in the Greenland City Limits. Lindsey & Associates Realtors presently has the property listed for sale at a price of $69,500.,' The property has 49 Cost Approach, Cont'd. been listed for a long period of time with little market activity. The price has been reduced at least two times recently. The property has approximately 528.06' of frontage on U.S. 71 and also fronts the? -Arkansas -Missouri Railroad right-of-way. In comparison to subject, this property would require an upward adjustment for size and a substantial downward adjustment for 71 frontage per acre. Subject is a corner site. Assuming the property sells •for list price, the overall downward adjustment is 40%; Indicated per acre value for subject is $18,700 ($31,166 x .60). Conclusions The land comparables utilized indicate a per acre value for subject ranging from $14,006 to $18,700. Sales one and two indicate $14,006/acre and $18,349/acre, respectively, while the listing indicates the upper end. It would appear logical to give more weight to the sales: Indicated Per Acre Value For Subject = $18,000 1.96+/- Acres at $18,000 = $35,280 Say = $35,500 o 1: a I•: RW f •..I :1/,#i r1_ J J N At00Vrp 1 I s tr 11 r Y Comparable Land Sales l... _.sal r t' t �Kt. .s IM ,- I !mf•01 1 moon .l 4 _w - r-- 4_..r. .. i -. — r _ V' ' 'I \ 3 r1r `1 rr INI I t1� ■� I Yr 5. m r \� i a i1 �.u1u SI•.V . . If DIN 1} .'run IJ. y.. ;.. IIMt1\ rat a r 'in. 1.. CS' ST IIsr \�• �w ~-a% •• _ �t SAOwEu ` r •pa• 1 IN f q IM Ff w .. /1W r♦.. ♦ ♦ — .__ . Y un m�u rip.�A•e `Jf r M a. 1__.__.._J r�J. RII /'! SI r1r •vw mlNJlw oua _] i : t4 .•Ylj?Y t rl f ♦/tr ° [Isar ca.oa D { 3,^f(,' ,-. < ✓ . �..,.._u. .a • , f�.�Mrl s\r1r .. .�.L . .rnq..1 T♦'xrY •1., •4�1,'4Sr+11 ;. 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C1 lures I��r 1 ) ♦•J r" / • • fS <ifv=♦1♦yI".�ii1,E'+It t^y+1 aJT lra f Nw E• 11 -•/Z'` { . �I I( YV T�) I ♦ 1 /~'!1 I♦ t /Di `..� nl �• ��I • If 1`IySI ?'i�-.�tY'J ♦1^'!.,t))•�4.I'�i `I tJY .Of14 /I 11 •- • i r • f C ,yr ♦T' '. i ' l f + 4 n ^ T+i • I �I i'i 144]1 b � r 1 1 • _ •r _ r i5JS�1rY1 J([! it • i - M. 1 t • .). '1 a r - !Ji•,y z.t,1,r 1 ♦'Y i .. FIf 1(.♦,.I r 11 1 •- .1 Y:�. a/1� i 1 r /J• ♦ i fli •Y�� ww } :v,'c.. is : .. ' • / j � 4 Y G lY ♦ . f : I u C rr)Y r 4 y., - Y r♦. -1 _1 'r♦ V .. 1 T. •4'i il• ./(4... !-�° "t 1J 1• I '1 rJ. t ♦ �...•♦+ ] ),- l .Y•r r"1 rclrJ OR f1 Y1 `L.. •.:-.-s♦l 1 }1 I 1 i ..}--------------------_•_. i r r] L`''\J •'I ?? .1 [M` \./1�♦I NF -II /I il.✓�� 1 V• Cost Approach, Cont'd. Marshall Valuation Service is utilized to estimate the reproduction cost new of the subject mobile home park: Mobile Home Park (Section 63,) The following costs are based on average quality with some deviation where subject is lacking: Per Space Engineering $ 430 Grading 345 Street Paving (Gravel) 75 Patios & Walks (Minimal) 115 Sewer 515 Water 425 Gas 215 Electrical 575 Miscellaneous (Landscaping, etc.) 120 Indicated Cost Per Square $ 2,815 Multipliers Number of Spaces 1.21 (Interpolated) Gross Area Per Space 1.16 (Interpolated) Cost .99 Area .84 1.17 Adjusted Cost Per Square = $ 3,294 x 12 Spaces = $39,528 Plus: 8% Entrepreneurial Profit = 3,162 Reproduction Cost New = $42,690 Less: 20% Accrued Depreciation (5 Yr. Eff. Age /. 25 Yr. Ec. Life) _ (8,538) Depreciated Reproduction Cost New = $34,152 SAY $35,000 52 Cost Approach, Cont'd. Garage Reproduction Cost new for this structure was derived from Page A-5 of Marshall & Swift Residential Cost Handbook: Indicated Price Per Square Foot (Interpolated) _ "'$ 9.84 x 722+/- SF = $ 7,104 Less: 50% Accrued Depreciation (20 Yr. Eff. Age '/. 40 Yr. Ec. Life) _ (3,552) Depreciated Reproduction Cost New = $ 3,552 SAY 1$ 3,500 Cost Approach Summary Mobile Home Park = $35,000 Garage = 3,500 Land = 35,500 Total (excluding mobile homes) _ $74,000 In our investigation, we contacted a local mobile home dealer for information on the book value of the mobile homes. The following information was obtained: Unit 1 = $14,475 Unit 2 = 6,800 Unit 3 = 5,525 Unit 4 = 6,600 Unit 5 = 7,225 Unit 6 = 4,500 r Unit 7 = 6,300 Unit 8 = 6,500 Unit 9 = 6,300 Unit 10 = 6,500 Unit 11 = 7,225 TOTAL _ $77,950 This is based upon the units being in average condition and the dealer being responsible for all moving costs. Also, this represents book value. Obviously, the units are more valuable on -site and available for rental. t 53 Cost Approach, Cont'd. Marshall & Swift Residential Cost Handbook indicates the following reproduction cost new for manufactured homes (See Pages A-109 & A-111): fr/:;:.. 14' x 64' Unit (Avg) _ :$26.85 14' x 64' Unit (Good) _ $25.38 14' x 68' Unit = $20.56 14' x 76' Unit = $20.05 16' x 76' Unit = $22.70 Floor Cover = $ 1.36 Heat/Air = $ 1.36 Multipliers = $ .84 Area These costs can be applied to subject units as follows: Units 6, 8 & 9 = Units 2 & 4 = Units 3&7 & 7 = f Inif q tj G 11 - 11nit 1 = nnlr in - llrapidua h Jduuzzl Decks (Page A-5) Extra Plumbing Fixtures = 2716+/- SF @ $19.80 = 1960+/- SF @ $19.56 = 1918+/- SF @ $18.41 = 2240+/- SF 0 $19.13 = 1?R0+/- SF @ ¶21.15 = Dinar Fr 0 ¢7van — 1030+/— SF @ $ 6.48 $ 53,777 38,338 35,310 42,851 27f12R 71,479 1,220 6,674 11 @ $ 302 = 3,322 Subtotal = $230,302 Plus: 8% Entrepreneurial Profit = 18,424 Reproduction Cost New = $248,726 Less: 40% Accrued Depreciation = (99,490) (8 yr. Avg. EA V. 20 yr Ec. Life) Depreciation Reproduction Cost New = $149,236 SAY $150,000 Considering the mobile homes, the following value is indicated by the Cost Approach: Total Excluding Mobile Homes Mobile Homes _ $ 74,000 150,000 Indicated Value By Cost Approach = $224,000 54 SALES COMPARISON APPROACH In the sales comparison approach, the subject property is compared to similar properties that have been sold recently or for which listing prices or offering figures are known. Data for generally comparable sale properties.'are used, and comparisons are made to demonstrate a probable price at which the subject property would sell if -offered on the market. "To apply the sales comparison approach, an appraiser follows a systematic procedure: 1. Research the market to obtain information on sales transactions, listings, and offerings to purchase properties similar to the subject property. 2. Verify the information by confirming that the data obtained are factually accurate and that the transactions reflect arms -length market considerations. 3. Select relevant units of comparison (e.g., dollars per acre, per square foot, or per income multipliers) and develop a comparative analysis for each unit. 4. Compare the subject property and comparable sales properties using the elements of comparison and adjust the sale price of each comparable appropriately or eliminate the property as a comparable. Reconcile the various value indications produced from the analysis of comparables into a single value indication or range of values. An imprecise market may indicate a range of values."B The sales utilized in estimating the market value of the subject property are as follows: eAmerican Institute of Real Estate of Real Estate (Chicago: American Appraisers, Ninth Edition, 1987), Appraisers, The Appraisal Institute of Real Estate P. 315. 1rzr, rat 74 flltf Sales Comparison Approach, Cont'd. Sale No. 1 Grantor: Edwin H. & June Riis, Grantee: Bobby D. & Beverly d. Anderson, and Harold McKissack & Bobby D. Anderson,-` Trustees for the McKissack Family Trust Date of Sale: June 13, 1986 Recorded: Book 1182, Page 267, Washington County Courthouse Legal Description: Part of the Frl. S 1/2 of the Frl. NW 1/4 of Section 6, township 17 North, Range 29 West, described as follows, to -wit: Beginning at the SE corner of said Frl. 80 acre tract, thence N 660.00', thence W 1329.65' to the center line of the Old Missouri Road, thence along said center line S 09 degrees 46' W 535.76', thence departing said center line E 397.65', thence S 132.00', thence E 1023.00' to the point of beginning, and containing 19.768 acres, more or less. Consideration: Financing: Adjustment to Cash: Verified: Land Size: Mobile Home Spaces: Price/Space: Gross Income, 1985: Operating Expenses, 1985: Net Operating Income, 1985: Capitalization Rate: $477,000 Conventional Loan None Buyers 19.768 acres 79 (17 are RV spaces) $6,038 $85,800 $24,050, 28% $61,750 12.9% ($61,750 /. $477,000) 56 Sale Comparison Approach, Cont'd. Description: This sale is located on the east side of State Highway 265, east of the airport, in Springdale, Arkansas. The property fronts State Highway 265 which is a heavily traveled, asphalt paved, four lane road. _.. At the time of sale, the property consisted of Whisler Mobile Home Park situated on 19.77+/- acres. The park consisted of 62 mobile home spaces, and 17 recreational vehicle spaces. The park was 16 years in age and was considered to be in good condition. Improvements included: Asphalt roadways and streets; storage buildings; a fenced area for resident's boats, recreational vehicles, etc.; And, a manager's living quarters. This mobile home is a Budger double wide, 20' x 56'. It was approximately 18 years in age and in good condition. The mobile home had central heat and air, and an attached carport. The room count was 5-2-2. Water, sewer, natural gas, and electricity to mobile home spaces. Sewer, water (hydrant at each 2 spaces), and electricity to RV spaces. 57 Sales Comparison Approach, Cont'd. Sale No. 2 Grantor: Paul E. and Phyllis D. Cornett Grantee: Kenneth M. and JoArint k. Bergley Date of Sale: January 12, 1988 Recorded: Book 682, Page 578, Benton County Legal Description: Part of the NE 1/4 of the NW 1/4 of 12-19-30 Consideration: $398,000 Description: This is the Idle Wheel Mobile Park on West Olive Street in Rogers. There were 30 spaces and 24 park owned mobile homes. In addition, a residence, garage, and outbuilding were included in the sale. The mobile homes had a contributory value of $4000-$5000 per unit. This leaves a value for the spaces, residence, garage, etc. of $278,000. The acreage size was approximately 2 acres and a part of the site does lie within the 100 year flood zone. In April, 1989, this park had 27 park owned mobile homes, each rented by the week ($75-$85). The three remaining spaces were rented for $82/month with the water paid by the park. Gas is also paid by the park on the weekly rentals. Electricity is the only utility individually metered. This park previously sold in 1987 to Cornett with the space allocation being $120,000 for 28 spaces. The sale appears to be unusual considering the second transaction. Price/Space: Financing: $9267 Conventional Loan 58 ' I. meal JOaoacialea, Inc. Sales Comparison Approach Cont'd. C el S L 1 ' 1 ✓. _ —tea "^���•T11 •I/ ♦)I�� rte M N �}J j���1!y,� �� �\ �}1 �( { p L {5 1 v)" i y { M11 •Sr� 1 i i lI. �I�'T r. 1 • 4 v. • t:: M1 59 deed d ,1�ooaciales, ,Inc. Sales Comparison Approach, Cont'd. Sale No. 3 Grantor: Nancy E. Powell Grantee: Earl J. Hanaway Date of Sale: June 19, 1986 Recorded: Book 1182, Page 539; Escrow Contract Legal Description: Part of the N 1/2 of the NE 1/4 of 34-18-30 and Part of the S 1/2 of the SE 1/4 of 27-17- 30. Consideration: $630,000 Description: Springbrook Mobile Hdme Park on 6.37 acres located at Appleby and Gregg in Fayetteville. This park supposedly had 45 spaces, however, an earlier listing indicated 37 spaces. Seven mobile homes were included. This sale also involved Countrylane Mobile Home Park on 5.94 acres located on Appleby Road in Fayetteville. This park supposedly had 65 spaces, however, an earlier listing indicated 42. Eleven mobile homes were included. The total contributory value of the mobile homes was estimated to be $45,000, leaving $585,000 for the spaces. Price Per Space: $5318 Financing: Not known 60 L3Ped I O160oci z/ea, $w. Sales Comparison Approach, Cont'd. 61 Sales Comparison Approach, Cont'd. Sale No. 4 Grantor: Grantee: Date of Sale: Verified: Legal Description: 23-19-30 Consideration: Dae Joon Park BCR Properties, Inc..__ December 31, 1986 Luther Black of BCR Properties Part of the NW 1/4 of the NE 1/4 of $470,000 Description: New Hope Mobile Home`Park located on New Hope Road in Rogers. This park consisted of 92 spaces on 9+/- acres. Some 32 mobile homes were included in the sale. They had an estimated contributory value of $96,000. This left $374,000 to the spaces. The 1987 net operating income was $57,928.05, indicating an overall cap rate of 12.33%. The 1987 operating expense ratio was 52.8%. The 1988 operating expense ratio was 49.6%. In 1983 this park sold for $520,000. Price/Space: $4065 Financing: $70,000 downpayment and assumption of $400,000 loan. .....,....W 1e.• .,. ., ......._._4._:_- . "�. r:dJ V. 62 • ^r1 1 r .b! • • I I •L f •ter ' i•. 4. ' ;y__ Improved Sales Map Fj _.' r ., r {1 q r I ♦r, , fI 1Y r L fF 1� ,l •aJ. n t. L.', lT, -�1��.11r.. �:•�} i r. (}1��- I -ten ._n.� 1I "I r' \ I, '':z�tr -• WS t - 1W�' L11r•\`I )4:&J;9 ''t V I I 1} I ,'. 1 �• rf5I„L i� ` \1' •t�•.. ; i & 'y j �-^ • 1 _ : 1I.P r„.•.,.. ••• / F . • \ \l, • ' .♦L � 1 1 U l „ , "r -,\, r �S1L- r� L I J} I I ,f` i wwL • `f-I�M1 r �.. -.--. . rl , 1 • •11' r !ra _`` .PY^n _ - • ',' III ' I'I / _ � 1 r I 1 • I � r � IC\\\--++±'.]___JJJjjj/It l'Il Pr l-r--rtL 1 \ (' _ •_t 1 • r `%t4 - j Ir T , _ _ ' 1 I I,e Ii., y `r` -n••1yy1y�1 11' � 1 f nl .♦. 1/ 'I(1/\ ` ) ,•'� ft, 'I , _.1. '[Y�rf/•''' • •.1• _f , �., 1 !''•t1 .L •r ' \r y l{1 : C/ )I 1 / I 1/ ,� I. ` rr •, 1 S• 4 .�� 4rc1!4? • �� J r , f' r t` � `•_V•LI Ir' -A • r� n' -r _ / 1 `♦ S' r .• r r 1 � �) ` •r a I' u•rn 1 u •' ' '\. • ���•r. �. I 1 '!... • 1 r• •1 (4'c_': • EL LL n 1. 1", •.- ./ ' Lµ(.L_ L• L. .,.:.+,L , 1\ 1 • M,iN1Yl : � I � Yr 1 I. 'I L 9 ( ♦I _ _r• IONCSi 1-1'I/ 1 tJ„, �N:-•i+ ��� I '1 ✓', ^f.. .. ��... i .r! F/. �' r 1 5 � • IE.4Lt:..y.LLI( I ,+ (rI _ ,yn_S _ __S-RI' 1 A , y Y, • • 4 1 \ 1? aY i• •I. �j :J• r' • I / I I •-.-.:; •�. I 1X ,• tea• �� r � I li •' � r rl�!! ', 7—; UiL •'�1 r 1� i ) . r � I I �ICt i�� 1 Y": _-'i is • ( i • .. V. 1. _ I \ r I �\:[.r�,.l•• (•�7 . ,f �• 1 � L` ,rj .�r r 111 i ^./'' , l• r' 11// i I I•l`` li fa�.�-YL 3I , a. �,4 � r • • f:1.,I: Lta1.• [ n.n ' 'CI �9 1+ I I !r • .� .--4 I FYi r �11.c• ♦\ ,• •r-. , ..i /� '• I•n , i tl •, (• Ltd I r•.,` 1.1. ; ' ` I S.' . w d 11' a.. ,f • •4• II. � •L' ___ ..t h••_i. I LA'::.'• 1 .I f— .: • .: f .I ,•, 1 Ir L .I I Sales Comparison Approach, Cont'd. IMPROVED SALES SUMMARY Mobile Home Parks Sale Date/ Space Spaces Price/ No. Sale Consid. Space Location 1 06-13-86 $477,000 79 $6038 Whisler-Springdale 2 01-12-88 $278,000 30 $9267 Idle Wheel -Rogers 3 06-19-86 $585,000 110 $5318 Springbrook&Country Lane - Fayetteville 4 12-31-86 $374,000 92 $4065• New Hope - Rogers Analysis of Sales The unit of comparison is price per space. The elements of comparison are property rights, conditions of sale, market conditions, location, and physical characteristics. Mobile Home Park Property Rights: No adjustments are necessary. The sales involved the transfer of the leased fee estates, however, the rental rates appear to have been at market. Conditions of Sale: Each of the sales appear to have been arms -length transactions and financing did not appear to have substantially affected sales prices. Sales one and two involved conventional financing, financing on sale three was not available, and sale four involved an assumption of an existing mortgage. The details on this assumption could not be obtained. Sale two appears above market, however, the buyer is of the opinion he paid market value. The property had been listed at $495,000. Sale four appears below market considering the earlier sale, however, this was not a forced sale. Due to a lack of market support, no adjustments are made for conditions of sale. 64 Sales Comparison Approach, Cont'd. Market Conditions: The sales are older, however, my investigation indicates they are the best available in the area. Small, recentmobile home park sales were found, however, generally th4y were very low quality set-ups in rural areas. It would seem logical that mobile home parks have increased in value since the 1986-1988 period, however, I have no market support for this. Therefore, no adjustments are made for market conditions. Location: Sale one is located on Highway 265 in Springdale, sale two on West Olive in Rogers, sale three on Appleby Road in Fayetteville, and sale four on New Hope Road in Rogers. Sales two, three, and four are primarily situated in residential neighborhoods while sale one is located in an industrial neighborhood near the Springdale Municipal Airport. Subject is located in a mixed -use neighborhood. Sale one has good visibility to traffic flow, as does subject, however, this is not necessarily more important to a mobile home park. Also, sale one does not face the traffic flow that subject does. Sale one is situated near central shopping and employment areas. Subject neighborhood is in the stability to declining stage of its life cycle. In my opinion, each of the sales have superior locations. A downward adjustment of 20% is indicated. Physical Characteristics: The primary adjustments here are for land value, park size (spaces), and quality, except for sale two which also included a residence, garage, etc. Typically, the tendency in the market is for small parks to bring a higher per space price than similar larger parks. Although, this is not exemplified by sale four. The adjustment for size is estimated by matching sales two and three, after adjusting for land contribution and, also the residence, etc. on sale two. The indicated adjustment is $40/space. As the number of spaces increases, the price per space decreases. 65 Sales Comparison Approach Cont'd e4€a If t3i46ccat4o, 'Inc. Each of the sales is considered to have inferior land value per space to subject. An attempt was made to abstract the land contribution from each sale in order that this adjustment could be made accurately. In each case, the adjustment is large due tosubject's small number of spaces. The following adjustments are indicated for land: Sale 1 +15%, sale 2 + 20%, sale 3 +30%, and sale 4 +45%, Subject's land value contribution per space is estimated to be $2958. ($35,500 '/. 12 spaces). Each of the comparables is of superior quality to subject and each has superior amenities. A downward adjustment of 25% is indicated to each sale. The estimated downward adjustment for the improvements on sale two is $2000. No other adjustments are indicated. Each of the sales included some outbuildings, however, subject has a frame garage. These factors are basically considered offsetting. Conclusions: Based on the preceding analysis, the following adjustment grid is indicated: Sale 1 2 3 4 Price/Space $6038 $9267 $5318 $4065 Property Rts. 0 0 0 0 Cond. of Sale 0 0 0 0 Market Cond. 0 0 0 0 Location -1208 -1853 -1064 - 813 Physical Characteristics Size +2680 + 720 +3920 +3200 Land + 906 +1853 +1595 +1829 Quality -1510 -2317 -1330 -1016 Other 0 -2000 0 0 Indicated Value Per Space $6906 $5670 $84.39 $7265 7 131 ed d daaoclzfed, inc. Sales Comparison Approach, Cont'd. A wide value range is indicated. The mean is $7070/space and the median_.:.;is $7086/space. Sales one and two are considered the best comparables and are given equal weight. In my opinion, based on the preceding analysis, the indicated per space value for subject is: $6300 12+/- spaces @ $6300 = $ 75,600 Say $ 76,000 As for the contributory value of subject mobile homes, little conclusive sales evidence could be found to form an accurate opinion. Sale two included 24 mobile homes with a contributory value of $4000 to $5000/unit. However, these mobile homes were much inferior to subject units, as evidenced by their weekly rental rates of $75-$85 compared to subjects $135-$140. My investigation indicated sale three also included mobile homes. Some eleven units were involved in the sale. Their contributory value was estimated to be $45,000, or $4091/unit. Again, these units were much inferior to subject mobile homes. In addition, sale four included 32 mobile homes with an estimated contributory value of $96,000, or $3000/unit. These, too, were much inferior to subject units. Finally, one additional sale was considered: Sale No. 5 Grantor: Dallas & Charlotte O'Neal Grantee: Timothy & Vicki White Date of Sale: January 12, 1990 Location: West of Elm Springs on Brush Creek Road Consideration: $90,000 67 Reed id4acxizlea, Inc. Sales Comparison Approach Cont'd Financing: $20,000 down with owner carrying $70,000 at 10% for 15 years ;,.. Verified: Through Collins_.... -Real Estate in Springdale, the selling agent Remarks: 12 single -wide mobile homes on 3.34+/- acres. Age of the units ranged from 1966 to 1976 and condition from fair to average. Gross income for 9 months of 1988 was $22,780. Land value, etc. estimated at $13,500, leaving $76,500 for mobile homes or $6375/unit. 3 The mobile homes included in this sale have an inferior location to subject and were in inferior condition, however, are more similar to subject units than the mobile homes on sales two, three, and four. ME weed d' J+ ooi,ciale0 , ,Y'nC. Sales Comparison Approach, Cont'd. Conclusions Considering the preceding mobile home analysis, it was felt the best method to utilize in the Sales Comparison Approach to value the total subject property -(from which the contributory value of the mobile homes could be abstracted) was the effective gross income multiplier. Sales four and five were the only comparables, which included mobile homes, included in this report from which effective gross income multipliers could be abstracted. Sale four, based on 1987 data, indicates an effective gross income multiplier (EGIM) of 3.83 ($47,000 V. $122,729). Effective gross annual income for sale five was not available, however, income for nine months was. If it is assumed that monthly income remains constant for the last three months of 1988 for this sale, and EGIM of 2.96 ($90,000 /. $30,373) is indicated. This is a 1990 sale, however, income is for 1988. Based on these two sales, a range in effective gross income multipliers of 2.96 to 3.83 is indicated. In my opinion, more weight should be given to sale five as it is a smaller park, has more similar mobile homes to subject, and is a more recent sale. An EGIM of 3 is considered appropriate for subject: $71,766* @ 3 = $215,298 Say $215,000 *Projected effective gross income for subject - see Income Capitalization Approach. The contributory value of subject mobile homes is estimated as follows: Indicated Value by Sales Comparison Less: Estimated Value of Property Excluding Mobile Home Contributory Value of Mobile Homes This computes to $12,636/unit. Approach = $215,000 = 76,000 _ $139,000 7. Reed d cd000ciolea, .onc. INCOME CAPITALIZATION APPROACH In the Income Capitalization Approach, the current rental income is shown with deductions for vacancy and credit losss and operating expenses. A conclusion about the prospective net operating income of the property is developed. In support of this net operating income estimate, operating statements for the previous years may be reviewed, together with available operating -cost estimates. An applicable capitalization method and appropriate capitalization rate are developed for use in computations that lead to an indication of value by the income capitalization approach. The following definitions are necessary before applying the income capitalization approach to the subject property: "Potential Gross Income (PGI) is the total potential income attributable to the real property at full occupancy before operating expenses are deducted. Potential gross income may refer to the level of rental income prevailing on the date of the appraisal or expected during the first full month or year of operating, or to the periodic income anticipated during a holding period."9 "Effective Gross Income (EGI) is the anticipated income from all operations of the real property adjusted for vacancy and collection losses. This adjustment includes losses incurred due to nonoccupancy, turnover, and nonpayment of rent by tenants •1I10 "Net Operating Income (NOI) is the actual or anticipated net income remaining after all operating expenses are deducted from effective gross income, but before mortgage debt service and book depreciation are deducted." "Overall capitalization Rate (RO) is an income rate total property that reflects the relationship bet' single year's net operating income expectancy or an average of several years' income expectancies and price or value; it is used to convert net operating into an indication of overall property value.02 for a green a annual total income 9American Institute of Real Estate Appraisers, The Appraisal of Real Estate (Chicago: American Institute of Real Estate Appraisers, Ninth Edition, 1987), P. 411. 'o Ibid, P. 411. "Ibid, P. 412. '2lbid, P. 412. 70 .d 64P d4daci7� 6.nc. Income Capitalization Approach, Cont'd .ul "Direct Capitalization is a method used to convert an estimate of a single year's income expectancy, or an annual average of several years' income;:.,expectancies, into an indication of value in one direct step --either by dividing the income estimate by an appropriate income rate or by multiplying the income estimate by an appropriate factor."" r "American Institute of Real Estate Appraisers, The Appraisal of Real Estate (Chicago: American. Institute of Real Estate Appraisers, Ninth Edition, 1987), P. 417 71 ell d JY"0CI.?•IPA. .J'Y/f. Income Capitalization Approach, Cont'd. 1 MOBILE HOME PARK RENT COMPARABLES Comparable #1 - City View Park Estates, 2201 South Powell, Springdale, AR - Spaces Available - 143 - Monthly Rent Per Space - $150 - Utilities Available - All City - up to $30 for gas, up to $30 for electric, and up to $15 for water included in monthly rent. - Vacancies - 19 (5 spaces & 14 mobile homes) - Park Owns 112+/- mobile homes which are rented weekly in the $60 - $110 range (includes space). The average rental rate for the park mobile homes is $85 - $90 per week. There is also a*small frame house on one of the spaces that is rented for $70 per week. There is an on -site managers office. Rent survey date was 7-24-91. Comparable #2 - Razorback Mobile Home Park, 55 E. 15th, Fayetteville - Spaces Available - 24 - Monthly Rent Per Space - $95 - Utilities Available - All City - None included in monthly rent. - Vacancies - 1 - park does not own any units - only rent the spaces; $50 deposit - Rent survey date was 3-92 Comparable #3 - Southgate Village, 2331 S. School, Fayetteville - Spaces Available - 21, 9 trailers, 6 cottages, & 1 apartment - Monthly Rent Per Space - $75, $150-$175/month for trailer - Utilities Available - All City- Water included in monthly rent - Vacancies - 1 Trailer - $100 deposit on trailers - Rent survey date was 3-92 4. 72 Income Capitalization Approach, Cont'd wed d'Wbaaunlea, .9nc. Comparable #4 Western Hills Mobile Home Estates, 2757 W. 6th, Fayetteville Spaces Available - 110; There are;40 park owned mobile homes Monthly rent for trailers - $200 to $325 - Utilities Available - All City - None included in monthly rent $135 deposit on trailers - Rent survey date was 3-92 4. Comparable #5 y. Trailwood Mobile Home Park, Mt. Comfort Road, Fayetteville - Spaces Available for rent - 70 - Monthly rent per space - $75 - Utilities Available - All City - None included in monthly rent - Vacancies - 3 - Rent survey date was 3-92 I Summary �. .r... The comparables indicate a range in space rentals from $75 to $150. The high end is City View in Springdale. City View pays a good part of the tenant's utilities. It appears the typical range, where utilities are not included in the monthly rent, is $75-$95. Comparables one, three, and four also include trailer rentals. Comparables three and four indicate a monthly rental range of $150-$325. Water is included in the rent on comparable three. Comparable one indicates weekly rental rates for mobile homes. The typical rate computes to $340 to $360 per month and includes utilities up to $30 for gas, up to $30 for electric, and up to $15 for water. This comparable is the most similar to the subject operation, however, the mobile homes on comparable one are inferior to subject units. A recap of subject rental rates indicates that each of the units rents for $135 per week except Units 5, 10, 11, and 1. Unit 5 rents for $425/month, unit 10 $140/week, unit 11 $155/week, and unit one is occupied by the property owner. Unit one is the largest of the mobile homes and is in good condition. I would estimate a weekly rental rate at the upper end of the subject unit range, say $155 including utilities. All rents include utilities except number 5 which is all electric. The tenant pays the electric bill on number 5. 73 v .- 1 ,� 'I 1 / , .rl r.�r !_ _ J .f ; I ,� \ '••..•,` 1 rl l J ' �. r . '. � I: � _. 1. !p t - � •Jr 1 - tl1 � r1i ''�` I' :_ L . / •rw rp ♦. Jf � V 1 "l 1 �, ,f...I 11; _ t L .1 -j �F I �,1 •' T yti �t MTIOM ' Y •� r r i. • B• I. • 1-. Y / ` •I\ f' $F J7 v 1. 1YjLcL Y • rw I , • .: :J. 11, I- I 11J' i. , '... rw•rrlwu � - ._1� f� y1\.I I•" ♦ •n _11 rYr�• V.' -'•rI l'..• ' I S •r.;/(�.�,J ..•.• r._ fI 1... )'_ fl I •a /1 i. 1 .r `\ h 1 ♦: I `r•, r ' ' :. /..'. ;, r' 1.1 `J 11( ♦. �! {{ lIl ` , 1 I { 1 \• /kt1± T\L r wyl1-• •a r irL`I�I I` I TJJ3;.1 l in �•(' 1 _ � �'�.i 'I � �II� yy 1_. F 1 i ''!.. �•—r\/ J�11\1 1 • LI LJI'•• 1 ., 1 J . . !•` ' I. • Ir. / /-r. •.li �� t 1 I,1 '1 •"t J J:YTg �'' _,I; 4,1 .•- 1/ I I ..• r • • • %Lr. s-, .j '' ^;I I I I I , .ar...1.. • }; 1{4I 1. 1 f ) ,{ . I It'k r .. � t 1. .., I. I ., . I - • . ! it i' Income Capitalization Approach, Cont'd. `4no°ccalpo, 'Yn� Subject rental rates are considered market rates with utilities included. Potential annual gross income is estimated. as follow: 7 Units @ $135/week x 52 weeks = $49,140 1 Unit @ $140/week x 52 weeks = 7,280 1 Unit @ $155/week x 52 weeks = 8,060 1 Unit @ $425/month x 12 months = 5,100 1 Unit @ $155/week x 52 weeks = 8,060 Vacant Space @ $ 75/month x 12 months = 900 Rent for Encroachments = 1,200 Potential Gross Income = $79,740 Vacancy/Credit Loss Mr. Hatch indicated that his vacancy in 1991 amounted to 22 days. This computes to less than 1% vacancy considering ten mobile home units. If rents were at the same level in 1991 that they currently are, then the dollar vacancy/credit loss would have been 11.3% ($61,738 Int./$69,580 potential not including owner's unit, vacant space & encroachment = 88.7% occupancy). However, rents probably were lower in 1991. The comparables indicate a vacancy range of 4% to 13.3%. Comparable one is the most similar to subject and indicated 13.3%, however, again this park has inferior mobile homes and has a heavier tenant turnover. I would expect that a vacancy/credit loss rate of 10% is realistic for subject on an annual basis. Tenants in the subject park typically sign 6 month leases. If rent is not paid, the owner turns the utilities off. Mr. Hatch indicated this happened only twice in 1991. The one vacant space without a mobile home apparently is not being promoted for rental. Also, the history has not been good for receiving rent for the encroachment. Annual vacancy/credit loss is estimated as follows: $79,740 @ .10 = $7974 Annual Vacancy/Credit Loss Effective gross income is indicated to be: $79,740 - $7974 = $71,766 75 Reed ef cd Income Capitalization Approach, Cont'd. aoocia,Ceo, gxc. This represents a 16.2% increase over 1991, however, includes the owners unit which was not included in 1991 income. The owner's unit could obviously be utilized for rental purposes. Operating Expenses Operating expenses in 1989 were 52.1%, in 1990 were 41%, and in 1991 were 38.5%. The expense ratios included a replacement reserve for short-lived items, particularly furniture, however, did not include an allowance for management. City View Park Estates in Springdale indicated a 54.8% operating expense ratio in 1990, including a replacement reserve and salaries for management. This park is in inferior condition to subject, however, is substantially larger. City View involves weekly rentals as does subject. Overall, I would suspect the operating ratios to be similar on City View and the subject property. In my opinion, an annual operating expense ratio of 55% is appropriate, including reserves for replacement and management. The management expense could take the form of furnishing the owners unit to an on -site manager at no charge plus payment of a small salary. Management makes up slightly over 16% of the total projected operating expense ratio. Further support for the projected operating expense ratio comes from New Hope Mobile Home Park in Rogers that experienced a 49.6% operating expense ratio in 1988. New Hope consisted of 92 spaces and included mobile home rentals. Annual operating expenses are estimated as follows: $71,766 @ .55 = $39,471 Net Operating Income Net operating income is computed as follows: Effective Gross Income = $71,766 Less: Operating Expense = (39,471) Net Operating Income = $32,295 76 Re PHOTOGRAPHS ed I `d000cealea, Snc. . COMPARABLE RENTAL #1 - CITY VIEW PARK ESTATES COMPARABLE RENTAL #2 - RAZORBACK MOBILE HOME PARK 77 cgs.. .,y .� • �' 1p;. tlNttTr4! V --•,,.R. ,. a `P1 ,a •*fi -. F •� I ♦.t�. P ...n A ✓ • ✓ \ �J is 1 \ L•� n .. Y 7#'•. � v .Ii :q 1.• �•• •• a P. ®1si"A �;�INJ '1 i::� •: '^����ay! '•', fI s!'�.lflr17s.7� iMhi :° ••• ._:._tee I++T �• om• 11 • U.iYY ' M .t ' Iq yi•' £1cP W1 P Sin •• . �f �V r+• Income Capitalization Approach, Cont'd. Capitalization Rate Rp Because most properties are purchased with debt and equity capital, the return on investment component of the overall capitalization rate must satisfy the market return requirements of each investment position. Lenders must anticipate receiving a competitive interest rate commensurate with the perceived risk or they will not make funds available. Similarly, equity investors must anticipate receiving a competitive equity yield commensurate with the perceived risk or they will divert their investment funds elsewhere. The capitalization rate for debt is called the mortgage constant (RM). It is the ratio of the annual debt service to the principle amount of the mortgage loan. The equity investor also seeks a return on and a return of the equity investment. The rate used to capitalize equity income is called the equity dividend rate (RE). The equity dividend rate is the ratio of equity dividend to the amount of equity. For appraisal purposes, the equity capitalization rate for the subject property is the anticipated return to the investor, usually for the first year of the holding period. The following terms are currently indicated in the local market for commercial loans of the subject market. 8.5% Interest Rate (not fixed for full term) 75% Loan to Value Ratio 10 Year Amortization .1487828 Annual Constant The equity dividend rate for the subject property is estimated to be 11% (See 2-1-92 issue of the "Appraiser News" for fourth quarter 1991 equity dividend rates on retail investments). The upper end of the range indicated by the "Appraiser News" was selected due to the risk involved with used mobile home rental. However, subject units do have substantial remaining economic life. 11 :w R,P,d dr �a%aaeia/pd, �nc. Income Capitalization Approach, Cont'd. The band of investment or weighted average formula for deriving an overall rate when the mortgage constant and equity dividend rates are known is: RO = M x RM + (1-M) x. Rg Therefore: RO = (.75 x .1487828) + (.25 x .11) RO = .112 + .028 RO = 14% The following market abstracted rates were obtained: Whisler Mobile Home Park 1986 NOI of $61,750 /. $477,000 Sales Price = 12.9% New Hope Mobile Home Park - 1986 NOI of $57,928.05 V. $470,000 Sales Price = 12.33% These sales are older and only give fair support to the overall rate indicated by Band of Investment. The overall rate indicated by Band of Investment will be utilized in the value computations. Value Computations Value = Net Operating Income / Cap Rate Value = $32,295 V. .14 Value = $230,679 Say $230,000 The contributory value of subject mobile homes can be estimated by subtracting the indicated value of the land and spaces derived in the Sales Comparison Approach: Overall Value = $230,000 Less: Land/Spaces/etc. From Sales Comparison Approach = ( 76,000) Contributory Value of Mobile Homes in Place & Ready for Rental = $154,000 "e ii J' ,Pd d .doaacia4o, Inc. RECONCILIATION Reconciliation is the part of the valuation process in which the appraiser attempts to resolve differences among the value indications derived from the application of the approaches. The conclusion drawn in thereconciliation is based on the appropriateness, the accuracy, and the quantity of the evidence in the entire appraisal. Cost Approach = $224,000 Sales Comparison Approach = $215,000 Income Capitalization Approach = $230,000 The Cost Approach is based, substitution. This princip and holds that no prudent existing property than the construct improvements of without undue delay. Other to the cost approach are: externalities; and, highest in part, upon the principle of Le is basic to the Cost Approach investor would pay more for an cost to acquire the site and equal desirability and utility appraisal principles that relate Supply and demand; balance; and best use. The strength of the Cost Approach is the availability of good supporting cost data through Marshall Valuation Service. The weaknesses are that subject improvements are not new and do suffer from accrued depreciation and, also, there is a lack of good recent land sales in the neighborhood. Certain principles are also basic to the Sales Comparison Approach: Substitution; supply and demand; balance; and, externalities. Again, the principle of substitution is very important. This principle states that the value of a specific property generally is set by the price necessary to acquire a substitute property of equivalent utility. The strength of the Sales Comparison Approach is in the valuation of the subject property, excluding the mobile homes. Four mobile home park sales were examined and have been included in this report. The sales are older, however, were considered the best sales available. The sales were compared to subject and adjustments made for differences. Numerous adjustments were required, however, are believed to be market supported. There was limited data to utilize in applying the Sales Comparison Approach to value the total subject property. However, an additional sale was examined and, along with sale four, was utilized to develop an appropriate EGIM for subject. This multiplier was applied to subject's projected effective gross income to arrive at a total value of subject by the Sales Comparison Approch. The estimated property value excluding the mobile homes, was then subtracted to arrive at an estimated contributory value of the mobile homes. m Reconciliation, Cont'd The application of the Income Capitalization Approach is based on the operation of value influences and appraisal principles. The appraisal principles:. considered are: Anticipation and change; supply and demand;' substitution; balance; and, externalities. Anticipation and change are very important. The principle of anticipation states that value is created by the expectation of benefits to be derived in the future. Income Capitalization methods attempt to forecast future benefits and estimate their present value. The Income Capitalization Approach also focuses on how change affects the value of income -producing properties. The strength of the Income Capitalization Approach is the availability of good income/expense history on the subject property and the availability of reasonably good comparable rentals. The projected net operating income is believed to be realistic for the subject property. Band of Investment was relied on in arriving at an appropriate overall cap rate for subject. The Income Capitalization Approach, in my opinion, produced a supportable value conclusion for the total subject property. Final Value In the final value analysis, each of the valuation methods was given consideration with most weight placed on the Sales Comparison and Income Capitalization Approaches: Real Property = $ 76,000 Contributory Value of Mobile Homes = 154,000 In Place & Ready for Rental Total = $230,000 83 PART IV - ADDENDA i o S ✓a..e_✓ fILEU Ii .iUSSA1dD ND CCONVEYiNG AS ON IN COMMONS BY TTENTIRETY, JOINTLY FUR REDOIIR�D i 1 MNOW ALL MIEW Y THESE P*ESINT$I •1 p1, g That .e Jeege J, Schnder and Alice L. Schnder, '8'1^ISON1�CDuhT RA ew,eb..d wad .No, $w&n.h.e ailed Ore, er ..d M wn.w«• %S%" µEYE ibn .4 the in of One 0x11.. (11.001 end eilwr good and vei.✓_.1e W A Fl•Ia" �OZ G1.EK wr.40_ lean Win l n hand paid by Allen C. Batch, it single RCUI • parson,• .e'S17x d 4..ta. I r S. 01317200355540 • .r may,, N.el,u ley Galled Orrrlw, do hereby urn. brg.a and sail pale rho sold Grantw and thiW"•o barn and sold^., w blbNne d crlwd I AAA, Vashington county. elero M Arlu,...., Io-n: A part of the Southweat Quarter of the Southwest Quitter of S.etion 33. `a Township 16 North. Range JO West, Wing Bore particulr.rl)w described as �;3 follows, to -wit: Beginning at a point ou the vest 1St. of U.B. Highway { 71, which point is 811.9 feet North of the South 11,.1 of said 40 acre "� • tract, for a beginning point to the lands herein hying conveyed; thence �O 7 7 wet approximately 200 feet: thence South 150 fee:;. thence West •' '� t approximately 100 feet; thence South approxinat'Ly 255.9 feat{ thence en )p East 150 feat{ thce Worth 100 feeti thence E.it 23 feetl thence North a 83 feeti thence in a Northeasterly direction F! feet to a point which I is 66 feet West of the West line of said Htgh+ay; thence rant 66 feet to the West line of said Highway; theacu North 185.9 feet to the pluce of beginning. yt a I CERTIFT UNDER PF21ALTT OF FALSE SWEARING 'MAT AT LEAST THE LOCALLY CORRECT MO'•t t AUNT OF DOCUMEKTART STAMPS HAYS BEEN PL..CED ON THIS INSTRU)elNT, '+ j Signed: I.C�Lr1�J i� UYO / Grantees i c r 1 I..' {• Address 4 hTO HAVE AND TO HOLD Ibe said lends sad appulwanon therwntn babnglnO unle IM sold Orontes and Grant..'. I•, Min and MMyne. brew[. And n, the sold (ksnldrs. hereby tnrer.anl that n are lawfully .N..4 of sold land and porniew• that it,. Came Y .,nincumb.rw, and loss w. will trays .rrnl sea defend the into to me said lands agalnn all 1 legal tame WN.ewee. .1 And n, w fInneetM Orentoeo, heresy release end reiMdulalt unto the MidOraMe. our rnpectiw dowerlcunwy oral .� homestead M ana to Mid land.. i i /lam\ ,,� ' I!. VetrWESS dM Mad. '4 ...N on this 3 day of 'r�"— , io f? re r THIS INSTRUMENT PREPA BED BY: r !a C? OREER ABSTRACT COMPANY ,}ESSE SCFU fit ISw11 i . 31 East Center _' cCcA (Seal) d • Fey.ltevllle, Arkansas 72701 i Al ICA-L. ecuinyR Seal) i I.; ACKNDWLEDGM114T ;. I;STATE OP AM(ANSAO • .. I-.' oeraw, QJa It s- kI . . '•P�r this day of 1 b.4 n L. a notary Wale, p.noa.Ily appeared • leaae.Il. Sthader and Alice L. Schader, husband end wife, • known to . 4q MMa pr?`.n1 re be 'hi ere pone whasa am nes art eubealb.d toM rWongoing NMan rwhl and �e ! acknowlec " tIly d e.aculw I...mama M teawereiM ppo... thn Tribe .1 In wllhal•a.Mweel I.Mrwnte m my hand and officio. seal. ' /� My Oernmleabn - •. I Ii BAILEY DRIVE U I i 1 71 i oca# ap TXIJTTT. DIXON FAYErlfV/(Lf. OwaA'f 1 :6' (2(0 •- I • MOUNTAIN :....-. I. DR. ¢ F W SMITH o Z W J J RUSH n A 4 p � 1 DIANE floss \ •1 ui a 1 1 WILSON $ I WILSON '- • t t I .H p,�LL t TJ( AVE. j `; I 1• CIRCLE DR. W i E PIER DR. I O. 1____— E 2 0 N � A w (NURCNDR. 1 ¢O 2 R• ZONE X 4 Flood Plain Map LIMIT OF DETAILED Si City of Greenland 050217 UP "RM68 UIU [ii EflCOYs. 245 ZONE X I NEI ZONE X I- 1239 [Ill ZONE X • onl ap CG1/57RUE� /AVW�/GTS Xlal• ----... .. __ -1: 34."/ R ii.- te•••• ,,,., TRANS/ /ONZi�A�6 �_ .- ,,. 7./ SLOPE L.; ^ I.,... '4/ `• . •.L.. silks , _.: . •.., list. _; 5 4 6r O I •. .. IL O l {� I, 0 1 ,Yl • 11 • III. S i. M1 t • l. {J °mss ' 4p/ ». nti. �»,., • n... n..., J 53 ' •O,C R'OpRT 47 •I „L: �.� . I»l. • .,.1, Il. .YR.• / °pERry ,,,... / . .- II-.. �,.,. ».. ' r , ''' J6 •YIL, rll S'00FECi '•••• u.,s ,' J ".Ls ( -ELEV. /250 p 4 1.,.. 5O • FR '»,.• RUNWAY'T£CT/ •••,.• .ZONE (34 . 1,,...^�' Y.L. /-' ' • l' -�. m..• un.) + 6 n •� ».• V 11,1., ran n n, -n..• zn/.^. r , 34 / RPZ i; • GB ' TRANSYT/GW Z 7.•/ SLOPE -. 7 6 I- --I J s� Tracf Nu.nbcr ) -... 1 "I: is 4.. r XHIBIT "AI" PROPERTY MAP .. 1 -LAND.8 tASEMENTACQU1STIC • CTFY'OF FAYETTEVILLE lr �q ,vo�es� FAYETTEVILLE,ARKANSAS , s AJO I. All plan Eerlrrr• are !•.m Aari.I Ma/gra 1, taken Oct. '017". .•"�y_4 Rai/r.Id E !pl Cbuhw+s given oa.s Ow.*r. MI ..6Tf /r.' M6v ✓ 1Ooa DRAKE FIELD _ Mt err,ere• ,.erd. FAYETTEVILLE MUNICIPAL AIRPOR o r..ed,/rrel✓a-:•+ OBSTRUCTION MAP C=— .4] $rare/ street ..."_._ Drainage Ma•nd YaR[LURD C01I4LTOq EMCRRERL M. c11 evil dh,q _.�.� .e♦ee B . _ .r. 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F 0 S . ^ C L N T N u F< <{ I g T J Y F Z O< N I i W F T s j 6 Q Z " �3 G W 6 LL YJ 6 W 6 Y Q •• Y " J W U w Y Q4 •. a W N U J I N Z z N ° V 2 „ 0 W< N J J Q : li l li < C> W 1`°] 31 W 53j Z O OW O w O< Q Q O 6° I r J z Z 4 W 6 G<< t CIO N 104 O Z 6 r Q< a3 M1 n bbL F¢ /(Z•{ V L..W° U < W YTI N 01>1<1 2 0 uO4T< T 6 l< 2 g a ~ N C g W ;W" O Y] g i 8 < i>11101O < O; N° V 6 W C W s T W L CJ b o U C U I {� N J4 W Q O y J m 2 O° U i i W T Q Z U 0 T Z O •' 6 Q a W a J N 1• J` J O< Q 3 g r r N pO O ; O a¢< Q 3 W L" W< W N 6 0 I J J N i Y Z FY Z 2 W ✓I Z}=Z O N; Z N Z"° j W Ill O J Q V W 6 u Z O V y N Q U C W •. 2 O Q>° f N W W 2 Q 0 O U O J i_ Q 0 Z O° f W W J Z 6 OO O J G Q W Z W W> O N W W U O 6 93 MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection: /.2-3-_91 2. Name of Family: /-// j�7jd/C/1 �1 3. Address: .-.t I Ih�dx /da 4. Telephone: Z i'/y6S -----------26/10 -------16X1a _l_j2b; le _//ocs---------------------- CIRCLE ONE 5. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 5q. ft. for �Y N the first occupant and 70 sq. ft. for each additional occupant.) 6. Adequate kitchen or food preparation area? 7. Adequate Water supply? B. Adequate Heating System 9. Adequate Electrical System? 10. Adequate Bathroom facilities? 11. Is the Mobile Home structurally sound? 12. Can the Mobile Home be moved? 13. List repairs, if necessary, to meet local code requirements: 1t .r'c y )t rc nce(kCI — flnvne I .,. \ ( 1 -1 a I -3.. , 14. In the opinion of thn inspector this Mobile Home meets or complies with Local (FAYETTEVILLE) Codes Requirements and is safe, decent and sanitary. QY N Signed: �_(` Title: DON'S 800W. 11th Date: t- -3q 11 Fayetteville, Ark. 72701 t6 b � 1 l I I J 1I Ir�� , �vnG h2S ar� z\rernA'C NeT /I2 r cluck sgsk¢ r+ .LAndQJ 1f ole 1 h,S 5u$iCn�tyV1� ti ut. !ff t rC•n,outd 1Y\ ecclGc- move. '- /7O0CrOX1»7d1e. Cott4/5b B= 11 94 MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection: /) - 3 - 2. Name of Family: .'ayeq /y ]d ccA d/I 3. Address: __ft.,. gsnX l4U 42 4. Telephone: --------IKX.70-n )obl Ae ---- ----------------------------------------------------- CIRCLE ONE 5. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 Sq. ft. for N the first occupant and 70 sq. ft. for each. additional occupant.) •6. Adequate kitchen or food preparation area? QY N 7. Adequate Water supply? l V N 8. Adequate Heating System Y N 9. Adequate Electrical System? Y N 10. Adequate Bathroom facilities? Y N 11. Is the Mobile Home structurally sound? Y N 12. Can the Mobile Home be moved? Y N 13. List repairs, if necessary, to meet local code requirements: I1ln L'. . ,1 ,.a�C3 4Th" r� I 0 t N -N cep v,l ct_ ak.lcs L'nd hj ck 14 In the opinion of the inspector this Mobile Home meets or complies with Local (FAYETTEVILLE:) Codes Requirements and is safe, decent and sanitary. OY N ----- ` boi _ abpeecs-- 1.O _ C_ -ire- gaoc _ Cre_ � or Signed: bv. Title: 71 [ u_MF_SF•RVICE 800W. 11th Date: 1 -) —c Foyettevil►e, Ark. 72701 95 3. MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection: /.2 - 311 2. Name of Family: �% %Jj /SQ/1 3. Address: 1Rf $ . 8ox /po €3 4. Telephone: JJ �y //�� I / �/ --- l--__�J ors_ _ }'n t i� i t^ l (1 ��10 71 C'r - / T/1 7Q Jy%6,(liL/O_ ------------ ----- ----------- CIRCLE ONE 5. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 sq. ft. for �Y N the first occupant and 70 sq. ft. for each additional occupant.) 6. Adequate kitchen or food preparation area? Q N 7. Adequate Water supply? N 8. Adequate Heating System Q N 9. Adequate Electrical System? N 10. Adequate Bathroom facilities? N 11. Is the Mobile Home structurally sound? N 12. Can the Mobile Home be moved? �y N 13. List repairs, if necessary, to meet local code requirements: (-t+ 6'P2.c4 mIIE PI Y'ne r6T' CrkluP./rey Gvz SI,C*i fl0 tl- fhr kr ►► ay) 1=Aisel o° 14. In the opinion of the inspector this Mobile Home meets or complies with Local (FAYETTEVILLE ) Codes Requirements and is safe, decent and sanitary . N --_- 0O5 d a S �6 �'_/1_ AQ _ COY_\d Signed: Qvl_ Title: Date: 17-3-91 DON'S MOBILE HOME SERVICE Fayetteville, Ark. 72701 MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection: /. - 3 - y I 2. Name of Family: Ze%rj b p' eyo re. 3. Address: 6j}. S 9c JoO 4. Telephone: /Y770 nIzhYsS'me CIRCLE ONE 5. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 sq. ft. for N the first occupant and 70 sq. ft. for each additional occupant.) 6. Adequate kitchen or food preparation areal O N 7. Adequate Water supply? (� N B. Adequate Heating System ( N 9. Adequate Electrical System? N 10. Adequate Bathroom facilities? (j N 11. is the Mobile Home structurally sound? — See -4-13 Y 12. Can the Mobile Home be moved? // N 13. List repairs, if necessary, to meet local _/ code requirements: ' 4en to 7 e 1.nsaf e -.- n eds to bC £C'dX 2cC�C1 1Ww T* es hmd PC Cof J 14. In the opinion of the inspector this Mobile Home meets or complies with Local (FAYETTEVILLE ) Codes Requirements and is safe, decent and sanitary. Y N ------ ---- ------------------------- Signed: __ Title: MOBILE HOMES SERVICE 800W. urn Foyettevllle, Ark. 72701 Date: t) -3-9t 97 MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection: 2. Name of Family: 1�)CS?S S )annen 3. Address: �ouf2 2< £G)C /6U ' 4. Telephone: hl� (arir�_1 z7&..c cti c a w e_�t- �_ �-- Q,.TU. __L4ez - "`� ____e ,'Yxdl/6 mb-lP o,r7'2 CIRCLE ONE S. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 Sq. ft. for Y a the first occupant and 70 sq. ft. for each additional occupant.) 6. Adequate kitchen or food preparation area? N 7. Adequate Water supply? N 8. Adequate Heating System a 9. Adequate Electrical System? N 10. Adequate Bathroom facilities? O N 11. Is the Mobile Home structurally sound? N 12. Can the Mobile Home be moved? Y N 11. List repairs, if necessary, to meet Tlocal code requirements: *;n oh . ._T nnn\. .. . a . wn ,.w\ ano\ IA ��. CC''SCekd- Iin e.t� 2�.n f (� ' JQ .1 ,re/euef 'f6SO 14. In the opinion of the inspector this Mobile Home meets or complies with Local (FAYETTEVILLE) Codes Requirements and is safe, decent and sanitary./ Y) N --------------------------------------------------------------------------------------- DON'S Title: MOBILE HOME SERVICE Signed: v"_� --000 'IL 11th C7 Fovetteville, Ark. 72701 Date: 3>? — I MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection; �1 I 2. Name of Family: / flo- 7e?.s fJascn nib3. Address: ��ufe d ROB/Qd *a 4. Telephone: CIRCLE ONE 5. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 eq. ft. for N the first occupant and 70 sq. ft. for each additional occupant.) •6. Adequate kitchen or food preparation area? 7®f N 7, Adequate Water supply? v N ® N 8. Adequate Heating System Y N 9. Adequate Electrical System? — •i Y N 10. Adequate Bathroom facilities? — Y N 11. Is the Mobile Home structurally sound? — Y N 12. Can the Mobile Home be moved? Pec }.r is 11. List repairs, if necessary, to meet local code requirements: Oe � i�i_N!C_ -C ^OPr\C +n he ce-seieJ - i73 In the opinion of the inspector this Mobile Home meets or complies with Local (FAYETTEVILLE) Codes Requirements and is safe, decent and sanitary. N ------------------------------------------------ ------ DON'S MOBILE HOME SERVICE 11th Signed: CJY� Title: ve, / / [� Fpyette1� Date: 1� - I a MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection: 1 2. Name of Family: '\\ 1 c 3. Address: (oV 2 D Op W0X ,11 1 -F 66 7 4. Telephone: yX ¢ _ ---h_ le r,-, CIRCLE ONE 5. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 sq. ft. for () N the first occupant and 70 sq. ft. for each additional occupant.) 6. Adequate kitchen or food preparation areal N 7. Adequate Water supply? N 8. Adequate Heating System N 9. Adequate Electrical System? Y N 10. Adequate Bathroom facilities? Y N 11. Is the Mobile Home structurally sound? N 12. Can the Mobile Home be moved? Y N 13. List repairs, if necessary, to meet local code requirements: on e p Q ecQim cr.ukc� need- liome u'\i cr('q,i.rt ek les,ttrec d-h,h1, taryde_ LR ins�?IIQ 14. In the opinion of the inspector this Mobile Home meets or complies with Local (FAYETTEVILLE) Codes Requirements and is safe, decent and sanitary/ N DON'S Signed: Title:¶)BILE HOME SERVICE 000 W. 11th Fayetteville, Ark. 7270? • Date: _ -y-9 0 MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. 2. 3. 4. Date of Inspection: \\ Nam`l Maine of Family: eh(5e W003 Address: 6uUtQ S dQX )00 4t- Telephone: --------------�`�-XGo_1n��Z�%e--�om�-------------------------------------------- CIRCLE ONE S. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 5q. ft. for / Y/ N the first occupant and 70 sq. ft. for each additional occupant.) 6. Adequate kitchen or food preparation area? H 7. Adequate Water supply? Y N 8. Adequate Heating System Y N 9. Adequate Electrical system? Y N 10. Adequate Bathroom facilities? Y N 11. Is the Mobile Home structurally sound? N 12. Can the Mobile Home be moved? � Y N 13. List repairs, if necessary, to meet local code requirements: �)n spa Cent ee9e fl `` fI 1111 }1 11 11 i-r•1--'�- /loorlo(I— HAw.P 1..;U CPnu ro dxkkk� . I ;cec e -J ;TCA QfV 1(J hQ 1 ni�a1IQd - 1 zJ ; I ` n- &1 k ( I aX�fs, I CC'S—i�ocKiuC� nu wit' nth mI\ecoJd�- 1 14. In the opinion of the inspector this Mobile Home meets or complies with Local (FAYETTEVILLE ) Codes Requirements and is safe, decent and sanitary N ------�eo� _ ------------._ it _ -Qom----------------------- DON'S .OBILE HOME SERVICE Signed: ��, y Title: 800 W. 11th -oye eve e, Ark. Date: 101 I MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection: I) --C/'9 2. Name of Family: F egr K MAAro J. Address: Pr. K 16O 4-`1 4. Telephone: [4X6 S _Z&hly - _ o�C-------------• CIRCLE ONE 5. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 5q. ft. for N the first occupant and 70 sq. ft. for each additional occupant.) 6. Adequate kitchen or food preparation area? Y N N 7. Adequate Water supply? — — Y N 8. Adequate Heating System 9. Adequate Electrical System? — a 10. Adequate Bathroom facilities? Y a 11. Is the Mobile Home structurally sound? Y N 12. Can the Mobile Home be moved? Y N 13. List repairs, if necessary, to meet local code requirements: 170 e ppsrenF r ce/cs eKJe + A;jrsL o /e 11 r* V- e — D J l/ r 1 f0 1' P2 O U11 n,@ nuQ(nrlIaI/ c'k/es �i' s —/aroue ) mnue Wl c In �`)l i�Ps-eeb/oce� )eve —`�- 14. In the opinion of the inspector this Mobile Home meets or complies with Local IFAYETTEVILLE ) codes • Requirements and is safe, decent and sanitary. 0 N ----"00 7 _ L�l7PAi _ _m _(.Z___CP12Y-C-'------------------------------ DON'S Signed: Title: `'(1RT1 F Hf1MF SFRVTfF 800 W. 11th Fayetteville, Ark. 72701 Date: - 102 do Signed: MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection: 2. Name of Family: %a/ y nny, 3. Address: //�O4 K50 C ftD /6 4. Telephone: a CIRCLE ONE S. Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 eq. ft. for N the first occupant and 70 sq. ft. for each additional occupant.) 6. Adequate kitchen or food preparation area? N 7. Adequate Water supply? Y N 8. Adequate Heating System N 9. Adequate Electrical System? N 10. Adequate Bathroom facilities? [3 N 11. Is the Mobile Home structurally sound? N 12. Can the Mobile Home be moved? N 13. List repairs, sif necessary, to meet local code requirements: flu deferent e npe/eo - /'ION7(3 c//et/es. et/es, F reS -A. /rJI-fe ncwo /ln 14. In the opinion of the inspector this Mobile Home meets or complies with Local (FAYETTEVILLE ) Codes Requirements and is safe, decent and sanitary./xl N DON'S MOBILE HOME SERVICE Title: SCOW 11tH Fayetteville, Ark. 7270' Date: /_7- rs 103 MOBILE HOME INSPECTION REPORT FAYETTEVILLE LAND ACQUISITION PROJECT 1. Date of Inspection: I) -5 '/ / 2. Name of Family: �/')an r nIfs -J i-7 1 YI q 3. Address: h�oAfe Y /pox /DO // 4. Telephone: CIRCLE ONE 5 6. 7. 8. 12 13 Is there sufficient space (sq. ft.) for the number of family members to meet the codes requirements? (Federal Requirements - 150 5q. ft. for the first occupant and 70 sq. ft. for each additional occupant.) Adequate kitchen or food preparation areal Adequate Water supply? Adequate Heating System Adequate Electrical System? Adequate Bathroom facilities? Is the Mobile Home structurally sound? Y N Y N N Y N N N —I— crluy-c.l 14. In the opinion of the inspector this Mobile Home meets or complies with Local (FAYETTEVILLE ) Codes Requirements and is safe, decent and sanitary.() N tsr, -------�a-. --z - �S '--- -- -- t o LI__ CZ? C� o .----------------- DON'S (� Title: `'OBILE HOME SERVICE Signed: Cam_ "�-� Rnn W 11th Fayetteville, Ark. 7270'. Date: I) -5-`j\ 102 $CntOU4.E a (Form 1140) ogrinavt 04 ar Trrvir Uyawnr Revenue Srvu Nrrv(U shown on ream AT.T.VN C & NA? - nCQTW and Loss g� �p4 t pe 's (Ww rwa. RtMIIC& .�c-! V,o,,. ,.,.,, rorol" n.,,r.1989 ► AOear r ratr� 1040 M rem 1041. 13 ► 9ee Ineuvcllee'0t Schedule ((Form 1040 • Your social security number 377 36 0474 3 Srw the kind and location of rental property: A MOBILE HOME RENTALS------------- r_vFFNT.AND. AR a------------------•---------------•----. C............. and Royalty Income: 4 4 Rants received ........ 5 n,...elene raewivad........... . O altleS Caution: your rental loss may be limited. 2 For each rental property listed on line 1, did you or your family use It for personal purposes for more than the greater of 14 days or 10'/. of the total days rentod al fair rental value during the tax year? 3 For each rental real estate property listed on line 1, did you actively participate In its operation during the 113 I? 0 Totals No G Gf.- Illrrla 11 ' Irrrli l'il IIII.. 1,,1111 6 Advertising . . . . . . . . . . . . . . �O ;li;I,tl Y1IrI1 IIli, jIii �I;n� 7 Auto and travel ..... ... .. .. II, I� 1 III' ,II n Illr n,p ' ,IIII I'1:1 1 g 245. IIllil l,'��;4li I; )IIIIh1 :I5i' 9 Cleaning and maintenance .... ,I'i I' 1,1 'i111�I't,�1 y l'rll r!!'rlr!III"Ir 9 Commissions ............. 1 959 111111; I': tiiIIP' INII'�; Ii III II�i I. II 10 hill' I� I.:ill.t!��rilll:Iti;ll lrl lllii r;I :I 10 Insurance . .. 9 3 3 . inlairli .,:;U1111.i ILi11rVllrrh; 611; 1;Ih161!,lell..:::.i i1 Legal and other prolossion at lees ......11 12 Mortgage Interest paid to banks, 26,291. 12 26,291. etc. (see Instructions) . . . . . . . . . 12'rj41 13 "II'I'' ';III 'I 11 l'i IIII 13 Other interest . . . . . . . . . . . . . In 1. r r II '�i1 �'I' i LI 1 4 273. 4li1i�ii iI�Illiurilliil,'�I'I!!1' IIILIIII:'! 14 Repairs . . . . . . . . . . . . . . . . . 14 77. ru!1"1 ytlI �, Ill4l ilrr I' 1rJ '1 '1111 r IIr11Ij I!.II r'Ir 1 IAI IIII 1IIIi II 11 i�tl t5 supplies 930. r rlillr 111,11 '1 16 1,11 yI Ili ' � t,_;i 16 Taxes . . . . . . . . . . . . . . . . . Irl,r j1I ,'tl 'rUli II II,,Ir:I Il 111 i 13 004. rr. r r ire. 17 Ir 'I ' r IIII; 1, IIIIil I1: 1111'1 " 17 Utilltle9 (See IesWCUOn5) i11 I' 111 , 19 Wages and salaries. . . . . . 19 ;1 ,: Ip, 19 O 111111,;1111 1 ;111:';11 Ills '4111111 III' i:llli j��'lllll ll lilll� Other ► -------------------- 425. ! 1 TRASH --------- !:l' i1i li'Illrl l'ii X111"°11 4 4 . .... 1,1 r '11y11111r1 II'I li t'r r' ra PEST CONTROL ......• t9 858 l,l r'n it- lll;,rlr;Ill;ll,r! ;i LAWN CARE j; l: !:I r;rrra I;:ur�, JII:�i�i thrill ?!1 REPLACEMENT FURNITURE 2 627• 52 328. 20 52 328. 20 Add lines B through 19 20 21 Depreciation expense or depletion 21 12 407 . 21 124O7. (see instructions) . . . . . . . . . . . I' 1 I I r I,II II III'IIIII Il'r 64 735. ;'rl' ;, 11111 III „rlllllt'Irr ri 22 Total expenses. Add lines 20 and 21 . 22 11 'i 'I 111, lr!I ill 1'i 111111 ll 111 Illrr 23 income or (loss) from rental or • r.r , 11,1 111111 11114 1 :1 :. royally pmpemi ts. Subtract line 22 ,III !'III IIII 1 1i I!llll I I 11 11 f 11'11 from tine 4 `rents) or line 5 IIII,i l li IIII I ;Ilil I �I'I Ililllllll'llll "'l ill. (loyalties). II the result is a (loss). ,i ii � I ri' 1, 111, 111 it ' see t lut i bons to find out it you —14 7 59 . 11 'tjjillillllli I'II III11,1:1I'll,r'r IIII must file Form 6199. . . . . . . . . . 23 Ip';jl'„" I' r Lno"nill Il llniiallillilil'it ill.'lll 24 Deductible rental (loss). Caution: Your I I rental loss on line 23 may be limited. See Instructions to find out It you 7 59 must file Form 9582 ........24 14 . 25 Income. Add rental and royalty income from line 23. Enter the local income 29 Losses. Add royalty losses from line 23 and rental losses Irom line 24. Enter the total (losses) hero.. .. . 27 Combine amounts on lines 25 end 26. Enter the net income or (loss) here .. . . 29 Net term rental Income or (loss) from Form 4835. (Also complete line 43 on page 2.)'. . 29 Total rental and royalty income or (loss). Combine amounts on lines 27 and 28. Enter the result hors. II Pails II, III, and IV on page 2 do not apply to you, enter the amount from line 29 on Form 1040, line 18. Otherwise, Include the amount from line 29 in the total ,.. Inpructiona, Copydah r form ton wr01y Unbar Pi.0 Sollwan For Paperwork R.ducoon Pct Houca, 1 — I a . I J7.r 27 I -14,759. 29 -14,759. schedule E(Form 1040) 1959 sota a Saappr m. ncal Antoine and Loss _ ouwjn.. .�.s/o�►.. pMN► ttes, 10l� 9vws,. ass, WSREMIC", sta1U ) o'�J�7V O4eiaMe Cl P Ardr b lrorlava n Pea 1041. eeerrel Aeveve Servr�e ► Sae Yrfucawu for Solwdue C low 13 Narrow /sown on reurn Your sxlal aecurlly number ALLEN C & NANCY J HATCH 377 36 0474 art Income or Loss From Rentals and Royalties Note: R farm rental Income or toss from Form 4635 on e e 2. line s. I Show Illkirdandlocationofeachrentalproperty: Form 8582 not required, $25000 allowance A MOBILE HOME RENTALS GREENLAND,_AR B C Yes No 2 For each rental property listed on One 1, did you or your family use h for personal purposes for more than the greater A X of 14 days or 10% of the total days rented at fair rental value during the lax year? (See Instructions.) a C Rental end Royalty Income: R ^tea D Totals A B C (Add columns A, B, and C) s Rentsreceived .............. 3 59,192. 3 59,192. 4 Royalties received . ...... 4 . ..... 4 . Rental and Royalty Expenses: a Advertising ............. a 4O7• , : „l a Auto and travel ............. a 399. tlf� 7 Cleaning and naintenance ...... 7 1 057. a Commissions . .... 9 Insurance .......... ..... 9 1 959. 1"'f '' "Irl " : ' ::. . 'll„4 I' $ 10 Legal and other professional lees.... 10 590. l� 11 Mortgage Interest paid to banks, " etc. (see Instructions)........... 1t 21,608. 11 21,608. t2 Other interest .......... .... 12 386. 13 Repairs ................. 13 2,323. !, I'!' 14 Su ties PP ........... 14 62 :ii ,n (, 'll ',j. I ... • II; j'1 � I. ll'l.1;, ', IS Traces .................. 15 760. ;Inl41,1 , i4 ni l,lllllll 16 unities . . . . . . . . . . . . . . . . to 12 518 I I: . . 17 Wages and salaries . ... 17 :I 16 Other (list) ► l :!ll r I it I 'll I� ..................... TRASH 490. . ,: .. ! I'. ;: ,: :,, ,, ,:i 1, ' PEST CON TROL 1s 96. ', °"'ll'lll'i"I'. -•-••-......... LAWN CARE ! .:,: : REPLACEMENT FURNITUR 331. 2 881. .:- 19 Addtines3Woughla....... 19 45,867. 45,867. 20 Depreciation expense or depletion (see Instructions) ............. 20 12,394. 20 12,394. 21 Total expenses. Add lines 19 and 20 21 58,261. .. 22 Income or (loss) from rental or :': ;i 1' Illil ; royalty properties. Subtract Yr o 21 „ "' I from One 3 (rents) or line 4 ,f j.6i ! '4 (royalties)the rosull Is a (loss), In � n, 1fi ,l' it ' ::'I' tructions b find out It you III III'j I'll .II, • ^' jn"Il, iI ll'; "ill (II trust fib Form 6198.. ......... 22 931. � i �l'l I I. 'l,il01i11 ill, filj'il�l lliih,�llfl it 23 Deductible rental (loss). Caution: Your Ilnil,li 1, li i„ „I lil I'le l l''I llll rental loss onO rte 22 may be 0mited. 'I:l,:I '; f'I( U1::,,,: Sue InatrUCtrO to rs find out 6 you I„I must file Form 6582 . . . . 23 � 24 . . . Income. Add rental and royally Inoome . from line 22. Enter the total income here II 11 i ,Ilii'll I�` ililiili Ii !lil' ................. 24 931. 25 Lasses. Add royalty bases from One 22 and rental losses from One 23. Enter the told bases here ......... 25 26 Total rental and royalty Income or (loss). Combine amounts on Ones 24 and 25. Enter the result here. If Parts 11, Ill, N, and One 39 on page 2 do not apply b you, enter the amount from One 26 on Form 1040, One 1a. Otherwise, Include the amount from One 26In the told on One 40 on 2 ............... .. 26 931. ..gp.ym ro..n .en WO. Vn,r L.,.r rte" 5O.1VV1 ace.d.b E (roan 1040) 1990 I r . October 29, 1991 Mr. Allen C. Hatch Route 8, Box 100 CERTIFIED - RETURN Fayetteville, AR 72701 RECEIPT REQUESTED RE: Fayetteville Municipal Airport Land Acquisition Program Parcel No. 775-17980-000 Dear Mr. Hatch: The City of Fayetteville and the Fayetteville Municipal Airport will be acquiring your property in accordance with Federal Aviation Administration regulations pursuant to an approved program under FAR Part 77 "Objects Affecting Navigable Air Space." This program as approved is necessary for the runway protection zones and other transitional zones off the end of each runway. Preliminary title work indicates that the Parcel referenced above is owned by you and as such, has been included in our Land Acquisition Program. The City of Fayetteville has contracted with the W. D. Schock Company, Inc. as the Consultant to perform the acquisition and relocation portions of this program. The Consultant's representatives are Mr. William D. Schock, Officer in Charge, Mr. Ralph White, Program Director, and Mr. John T. Baugh, Project Manager. The purpose of this letter is to give you advance notification of the Fayetteville Municipal Airport's interest in acquiring your property. In giving this notice, we wish to acquaint you with the various steps that will be taken. The property will be appraised by an independent appraiser appointed by W. D. Schock Company. The appraiser's name, address and telephone number is given for reference at the end of this letter. Please contact the appraiser or the appraiser will contact you for the opportunity to accompany the appraiser as he completes his work with respect to the appraisal on your property. Land Acquisition • Relocation • Part 150 Implementation 1400 Oonelson Pike • &..nlding III Suite B-2 Nashville. Tenrrore • 37217 615/399.0585 • FAX 515/366-1184 Mr. Allen C. Hatch October 29, 1991 Page Two 2. Following completion of the appraisal, you will receive a separate letter offer from W. D. Schock Company advising you of the established fair market value by the appraiser and the review appraiser. Further, you will subsequently be contacted by a representative of W. D. Schock Company, who will be in a position to discuss the offer and negotiate the purchase price of your property with you. 3. If the negotiated purchase of your property is not possible, and you are not willing to sell your property at the fair market value established by the appraiser, W. D. Schock Company, in conjunction with the City of Fayetteville, would take into consideration the right of acquiring your property under eminent domain. 4. At the time an offer is made, if you have a business on the property, or a tenant who may have a business on the property, will be contacted by the W. D. Schock Company's Relocation Advisor to explain relocation eligibility and benefits available for businesses. Any business that is impacted by the acquisition program does not have to move immediately and will have ninety (90) days from the date of purchase to relocate to other areas or facilities. Relocation is a separate issue and will be handled by the Relocation Advisor with the business itself and will be conducted under the rules and regulations that apply under the "Uniform Relocation Assistance Act of 1970," 49 CFR Part 24. 5. Please note that prior to a site visit from the appraiser, we will need to complete preliminary title work and field surveys. McClelland Engineering will be contacting you shortly to prepare site survey on your property. The City of Fayetteville is committed to accommodating the acquisition of your property as quickly and fairly as possible. Listed below is the appraiser assigned to prepare the appraisal on your property. Please contact him directly to schedule an appointment as soon as Mr. Allen C. Hatch October 29, 1991 Page Three possible. We encourage you to accompany the appraiser on the inspection of the property. Following receipt of this letter, if you have any questions regarding the land acquisition and relocation program for acquiring your property, please contact the W. D. Schock Company at (501) 521-6852. We will get back with you as soon as possible. Very truly yours, W. D. Schock President, W. D. Schock Company, Inc. cc: Ralph White, Program Director John Baugh, Project Manager Tom Reed, Appraiser Carl Grimes, TRW Title Company Wayne Jones, McClelland Engineering (surveys) appraiser: Mr. Tom Reed Reed & Associates, Inc. 210 S. Thompson, Suite 1 Springdale, AR 72765-1102 (501) 756-6313 109 Parcel Map Parcel No. 73 1.96 Acres More or Less FY912710 DRAKE FIELD SCALE: I" = 60' PARCEL NO. 73 OWNER OF RECORD DEED LINES - - - - LAND LINES Allen C. Hatch GRAPHIC SCALE 1 Y e y Book 1208 — Page 484 (arorl I I me.a M I BAILEY DRIVE (76' ASPHALT) N 88'09'26" W — / — — - 242.00 CHAIN LINK FENCE 0 Record Poi1-7�1 0 I -� II 3-1 I 1 74 II ONE STORY I� II I /� FRAME GARAGE 1 MIRE FENCE O MOBILE HOME +3 N 88'09'26�� (TIPICAL ) Z0 I 94.03' / 1 / I I Y� rE S8_9_ E I �� \12 71.21' "E77 \ t4 6�A69 0 cn I I z _X< /J / I o 0 75 I I 0o a N �\ MIRE FENCE (`I W �" I . 1 S 88'09'26" E E1I6 N23.00' I I C1 LA 74 I w _�� I o oLi MOBILE HOME i�I o i I ( TYPICAL ) - op O W 76 n Z :t i S88'09'26" E _ J o F 5 00 0' o77 Iz 77' I� I 76 IIMcClelland u nod o Consulting Engineers Incorporated '_ __ ( RECORD SOUTH LINE OF 4O ACRE TRACT ) / F Fayetteville Little Rock 1810 N. College 900 W. Markham AIlTaASID AND % COotVErNsa AS TENAMTg w f1E ppRO YIl;FMTINETY,., jOINTIr on IN coxvAots cot RE •r 1 Nfaw Ai4 tar rr f _• •F 9 � t ; r�`?11W aa�Y,leaaa"J�gchadar and Allta L Sehader. r� ...'• - xii •''` -! kbtee•1te •aa•� I•'X { IiJ %'n. n• V \ R �+ U•,V io• tbw N Eb �. Mwb/br'M tad QMWAee., fir WA b ..dw• ,. '�� a •r.N 01b Dallar*Ntm Redness, end and ws•aWo p NNX 0.K k•' '".' `. :--iy r '1;.,� ) �y�'wYlrnba a r r ran sMa Allon C Batch, a a=ngle `�- CV�t CAE Yi ' Y., •''` .,>~. r(il paratlG• y ru7Y L/! p?. •i : 1 '1 v r' !•,I\♦ -n !. • rfla��u Y i ",fiy�/y1� ti!• t{ NI Ilkir ,. S�Y- � Q!!Y/{• r\/j •♦ 1 , . �y y�1�,�{ ., • ,., ir` ♦��. n+i`C ; ♦ } ti/ I•I i I�'s:- • ,.n�+. �) ♦ •• •-i n' . Y % y(' Y.YRM YOfltilOfY Y ('i• F.a '�4� _A' ..F ' .-y. Y}'t Jr � a in. �FI r e�w qp[��.p ,T, �.; J� Vv 1, .` r 1.1 M1, ♦Y'. 'h: f♦p�l 1 •}f �YX. l<+ Y, S'r,`d- Y-1t•�J�11✓tf 2 ,. ' n a , IY•i )-,. , s ., `� (^�1 (f�I y�.f k.r Yl�r till. •�'� t ,- � A I•�#'itl " ♦1�:. • 0131120 35554 g~ ,41 iI a?v.. •,j �'N �Y�•`• )al. ♦ •'mot' r ♦ i s • „jesMNla1. rlda.r1ta•�'`'fbfa1t «•M, asaele elte see t•ye ab .a 4i.?;, �,` i♦' - • p)h �' -. , 2Pl.:plddYM1Ye •ad Q•MMh aeb eM aMl-Me IM kilo 111s d.MAEU t'- r:.. y,;; .xa>Fste.'slara a ,... ,.t:,r t ie., }• �Yrr uk[. - w• ... e, r:r /li,ol: ..., ' .fin .. .. (:.• s ) Y ' " WaehLtetan -+ Ost•yt, eWs a AAM)re, Istilt: : • .. ♦n�fC 1 • a Y y•l��flp4 fi11LV•a 11�.; { ,. V+ 1 4II. ' p•�tj t•�ly.Iil)r:�,-� a J, a � 1 A-prt?et the Southwest Quarter of the Southwest Quarter of Section 33. "'-J'Townahip 16 North, Range 30 Vest, Ming more particulr.rly described as V j follors,-.to-,its Beginning at a point on the west l-ne_of O.S. Highway 'it 71, which point is 811.9 feet North of the South 1f -a of said 40 acre ,It tract•' for a beginning point to the lands borein piing conveyed; thence & Is west approxiaately 200 feet: thence South 130 fee;; thence West - approxiaately 100 feet; thence South approxfsbte/y 255.9 feet; thence . ,- ? - East 130 feet; thence North 100 feet; thence Rapt 23 feet; thence North - 83 tut{'.then in a Northeasterly direction f2 feet to a point which - -. is'66 feet West of the Vat line of said Higl'eay; thence Let 66 feet �. f•, to,the.West line of said Highway; thence North 185.9 feet to the place of beginning: t.., I CERTIFY UNDER PENALTY OP FALSE SWRARINO 'tHAX AT LEAST THE LEGALLY CORRECT . AMUNT OP DOCUIUMARY STAMPS RAVE BERN PLACED ONINSTRUMENT. THIS ......... Signed: Lf[�..J...�i Grantees rasa . .. .':' :. TO HAVE AND TO HOLD the ale bode sal appuneerwae the nb bNengMe nab the said On and �g hen and salyte, forever. And we. the eeW hmtete, Plenty realty that we are lawfully e5Uee of said land sad -.. ,., .....Sr, that the wr• b -s lnoamaaW, and ma we will tef•eer wtinettt end defend the N1b to the meld lade •pahet al;. .: 4.... lone eblttln uh& st.;, -�� ; •:., And es, the tteprt o Girton. mint alias aid tsetgWal aye the sold G iws, our nep•Nlw Cow tloet5iy rid,: • ' V""ESS o f »tee ire rM. er tab 3 0 day el • . •' . t , . THIe INSTRUMENT P lEPARED BY: • : Y....... - ... GREER ABSTRACT COMPANY SSS2 , S (well 1 31 East Cemar - - ' Paystts Ifla AlRamas 72701 fseMl A9CE-L.-ECHdDER• AOKNOWLEOGMEM • STATE OF ARKANgAA{, •'c 1 V I t 1 • - 4 .r:Y • nl T: l 1 i • sat a , betethe^ • ttetary puslb, paaertlgl •pp•ree - ..: ti .l heder• eW Alice L. Schadet, husband and wife,-' fstese Ins rtbftsbrlfy I b be ins Of�ll, a1 perre floss wn s as sYESNless b the brow a inorwr•el and " 14 -eathewbsgreiT Ilad •aneM•e Ire aanb b1 eln pleprr a1•reln M fret. lee h'•f b �.hefe r" so at heed bed -lone 11n•1 . ; - Y ^ p /:: my OerlteleMs• fA4aa f ,. ' • 1 f ' l U /, w—. iy - / �Y✓ . • ` ♦i� 0 . v.., ,�`�•'�CpI ,ev(e/t �Y11Cf .Fa 1.I. . l- i' • ,. ! i.`.'!•+... } ' •.• .4.r 1N .�fl": ���"'i lL .✓i'.alY �.\'�, n d!C �r.. REDEMPTION DEED NO. 91999i0.t d -• Vie' y i r^ ;� CHARLIE DANIELS P'r' COMMISSIONER OF STATE LANDSCRFILLED l� rt3 STATE OF ARKANSAS Issued under the provisions of Act 151 of 1891, Act 626 of 1983 and Act 814 of 1987 3(0 THE STATE OF ARKANSAS: To All Whom these Presents Shall Come — GREETINGS: KNOW YE THAT, WHEREAS: The following described lands situated in WASHINGTON in the State of Arkansas, to wit: Section : 33 Township: 16N Range 30W Acres : 000002.120 Addition: (OUTLOTS) City : GREENLAND 775-17965 Parcel Number 1. PT SW SW 2. DIST # 951 3. 4. 5. 6. the County of = > cn n o z ;.- c . -o rn _< r rn c) •.. o r-` 0 N 1-1L 1988 cn o Year Forfeited cn were certified to the Commissioner of State Lands, by the County Collector for the non-payment of taxes for the years hereinbelow set forth; and that the taxes, penalties, interest and cost outlined below have been paid to the Commissioner of State Lands; ANDWHEREAS CITY OF FAYETTEVILLE A MUNICIPAL CORPORATION 113 WEST MOUNTAIN, FAYETTEVILLE, AR 72701 claiming to be the owner(s) of said real property, filed a petition to redeem duly verified according to the law, showing such ownership. NOW THEREFORE, I, CHARLIE DANIELS, Commissioner of State Lands within and for the State of Arkansas, for and in consideration of $ 2784.99 so paid and by virtue of the authority in me vested by law, do hereby release and quitclaim unto the said CITY OF FAYETTEVILLE A MUNICIPAL CORPORATION and .'- heirs and assigns forever all right, title and interest the State of Arkansas acquired under any forfeiture, sale or condemnation for taxes. WITNESS MY HAND AND OFFICIAL SEAL 29 -Sep- 1993 Taxes 1988 - 1991 2075.39 Interest 463.81� Q ) C Penalty 207.54 Commissioner of State Lands County Cost 2.25 Recording Fee 6.00 Deputy Commissioner of Deed Fee 5.00 Addie M. Grigsby Commissioner Fee 25.00 Total Paid: $2,784.99 Receipt #'s 36028 0 0 0 Deed Mailed to: CITY ATTORNEYS OFFICE ATTN: LAGAYLE 113 W. MOUNTAIN, FAYETTEVILLE, AR 72701 VI 93 56550 • . tiv- if - 1 •yea=� � wc� 0. ,��o¶1.0 'd`�� C�d(ac 34\w may.°� c-�. pr Je 4*1 �• Qo P Charlie finer of RECEIPT Commissioner of State Lands Date `9 O— 1993 1 936 03C No. 36028 State Capitol Building Little Rock. Arkansas 72201 CITY OF FAYETTEVILLE Received From Address CITY ATTNY'S OFFICE 113 W. MOUNTAIN FAYETTEVILLE AR 72701 784,99 PR CK # 506035 For 775-17963 WASHINGTON Sharon Hinzman By