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HomeMy WebLinkAboutOrdinance 3747 LD 1 -n D C r n cn Z m ORDINANCE NO. 3747 m z 3 rn M �- c� :a C o D � AN ORDINANCE AUTHORIZING EMINENT DOMAIN ow v PROCEEDINGS FOR THE CITY TO OBTAIN TWO TRACTS, FROM KEARNY NATIONAL, FOR THE AIRPORT LAND ACQUISITION PROJECT IN CONJUNCTION WITH THE OBSTRUCTION LIGHTING AND REMOVAL PROJECT. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS : Section 1 . That the City Council authorizes and directs the city attorney of the City of Fayetteville, Arkansas to initiate legal action, in order to obtain the property known as Tracts 1152 and 53, owned by Kearney National, needed for the Airport Land Acquisition Project in conjunction with the Obstruction Lighting and Removal Project, on the property described below: See Exhibit "A" , attached hereto and made a part hereof. PASSED AND APPROVED this 21st day of December 1993 . APPROVED: By: �l/'✓>tic� red Hanna, Mayor ATTEST: By : Sherry L. Thomas, City Clerk c • � a 94001683 I v a CERTIFICATE OF RECORD State of Arkansas City of Fayetteville � SS I, Sherry 'Phomas, City Clerk and Ex. Officio rem,"der for the City of Fayetteville, ctc3 €:^reby certify that the annexed or f6reming is of record in zny Office and the Same appears in Ordinance & Resobatio=.x Lin!)ji page Vd'itrxes r,.y liana sea! t—fiIsaiaa day os 19_( 3 EXHIBIT "A " Tract 52: The South Half (S 'h) of the North Half (NI/2) of the Northeast Quarter (NE 'k) of the Southwest Quarter (SW 'k) of Section 33, Township 16 North, Range 30 West, less that portion thereof located within the U . S. Highway No. 71 right-of- way which bounds the property on the West, containing 9. 80 acres, more or less, Washington County, Arkansas and subject to the County Road right-of-way along the East side thereof. Tract 53 : The Southwest Quarter (SW 'A ) of the Northeast Quarter (NE 'A) of the Southwest Quarter (SW 'k ) of Section 33, Township 16 North, Range 30 West, less that portion thereof located within the U .S. Highway No. 71 right-of-way which bounds the property on the West, containing 9.62 acres, more or less, Washington County, Arkansas. 94001684 t I. C3rro CZaIYd „ �. VIP UJI .: .=-orrflcb F.. .c_ - - •'x' t1�.hlnolon A7�06 ,•, c.-rtiiy that 541a G+. t?rumartt v r. . - 'v r rod to r rf oNk' h'k�t : �n and 6:3 mma to reva r6lm-Azdc3m , !,1 _"Iccid SCS. a T:.-L:L i my hc, le crSrcd t{13 saai of r vrl an 'Qiafa J STATE OF ARKANSAS ss. ORDINANCE NO. 3747 - County of Washington AN ORDINANCE AUTHOR- IZING EMINENT DOMAIN r� j_(_ IN,,1 PROCEEDINGS, FOR THE [ ` • ` �w, ` herebycer- CITY TO OBTAIN TWO TRACTS. FROM KEARNY tify that I am the publisher of NE NORTHWEST ARKANSAS TIMES, a daily NATIONAL, FOR THE AIR- - newspaper having a second class mailing privilege, and being not less than four pages ofPORT ;LAND ACQUISITION PROJECT IN CONJUNC- five columns each, published at a fixed place of business and at a fixed (daily) intervals TION WITH THE AND RE- continuous) in the Cit of Fayetteville, Count of Washington, Arkansas for more than TION LIGHTING . AND RE- Y Y Y Y g MOVAL PROJECT. a period of twelve months, circulated and distributed from an established place of business CI ft ORDAINED F THE to subscribers and readers generally of all classes in the Ci and Count for a definite rice BE IT CRDAINEOUNCIL OF THE 8 Y lY Y P CITY' OF FAYETTE V ILLE. for each copy, or a fixed price per annum, which price was fixed at what is considered the ARKA�NSAS: value of the publication, based upon the news value and service value it contains, that at section 1 . That the City least fifty percent of the subscribers thereto have paid cash for their subscriptions to the Council authorizes and a: newspaper or its a agents or through recognized news dealers over a period of at least six Coon the city attorney of8 g g the City of Fayetteville. Ark- months; and that the said newspaper publishes an average of more than forty percent news ansas to initiate legal ac tion, in order to obtain the matter. property known as Tracts , #52 and 53, al, needed ed I further certify that the legal notice hereto attached in the matter of by forKearney National, needed Y g I tiont the Airport Land junction (^n p - �.1 withProject in conjunction V /1 l lfn m�l Cj +" 5_1 'A with the Obstruction Ligon r LLU i. / ` trig and Removal Project. on the property described was published in the regular daily issue of said newspaper for below: See Exhibit "A", attached consecutive insertions as follows: hereto and made a part 77 (, � � hereof. The first insertion on the ! l_a 1,4.ti 13 dayof 19�_ PASSED AND APPROVED this 21st day of December, the second insertion on the da of 19 1993. Y 'AIPPROVED : By': Fred M Hanna. MayorATTESe third on the da of 19 Hanna. a the i Sherry L. Tho- y mas, City Clerk EXHIBIT "A" and the fourth insertion on the day of 19 Tract 52: The South Half (2 of R E C E I VIE a,) itis North Halt .Of the , Northeast Quarter of INET of the Southwest Quarter (SWI/4 ) of Section33. Township North, Range 30 wast, less than rI n t t 1 n (1 pomon Publisher / General Manager thereof located within the U.S. Highway No. 71 right- RNIANCE DEPT. sof-way which bounds the property on the West, con- taining 9.90 acres, more or less. Washington County, Arkansas and subject to the County Road right-of-way along the Wast side thereof. Tract 53: The Southwest Quarter (SW1/4) of .the Northeast Quarter (NE1 /41 of the Southwest Quarter (SWI/4) of Section 33, Township 16 I � gf North. Range 30 West, less Sworn to and subscribed before me on this day of that portion thereof located within the U.S. Highway N . No. e property which 19 y boundsds the property on the West . containing acres, more or less. Washington County . Arkansas. _ _ - moi Notary Public My Commission Expires: 09 _ Cal -0? Fees for Printing $ SO Cost of Proof $ _� Total - - Federal Register. / Vn1. . 54. :No. 4l7 / .Thursday; March Z, 1588Rules a _ terminate occvpanry on'ehart notice for the reviewer's recommended or ' lowest acceptable bid or estimate, as (whether an not the renter also has that approved value depend on the provided for in ¢ 24.3M(c). right) supporta the establishment of a complexity of the appraisal problem. For Subpart I-Payment for Moving and lesser rental than might be found in a a low value property requiring an Related Expenses longer. fixed-term situation. uncomplicated valuation procese, the Seclian 141Q7 Cn'teric for Apptnisols reviews a approval endorsing the Section24.7W Fixed Payment far appraiser's report. may satisfy the Moving Expenses—Nonresidential Section 24.1o3(a) Standards of requirement for the reviewer's Moves appraisal In paragraph (a)(3) of this statement Section 24J05(d) Nonpmfit section. It is intended thatall relevant and reliable approaches to.value be Secdan 24.108 Expenses Incidental to incluorgade mems Gross revenues may utilized. However, where as Agency Transfer of.77de to the Agency include- membership tees, cines fees, determines thatthemarket approach ' Generan the Agenryfs able to a cash donations,oth na, tithes, fundreceifrom win be adequate by itself because of the: y P y thatsaleenc olcr the of fund collectionti such Incidental r:astn directly and, that enables the non-profit organvadon type of property being appraised and the = where feasible, is required to do so. In to operate. Administrative expenses are availability of sales data, it may limit 'order to Prevent the properly owner those for administrative support such as the appraisal asaigament to the market ' from making unnecessary out-of-pocket rent utilities, salaries,.advertising and approach. expenditures. and to avoid duplication of- other like items as well as fund raising Section 24.763(b) •Jnfl6ence of the expenses. the property owner should be . eases.. expenses for - project on fty t�camperrsatfom-Aaused In- .. . informed earl m the acquisition Process expenses. CPe' g two sectiom the term 'projecr is I * ' y ac9 P carrying out the purposes of the-non- ldng which of the Agency's intent to make such profit organization are. not included in intended to mean anaaderia �d fn kming arrangements.arrangements. In'�tion, it rs administrative expenses. The monetary is planned. designed. e�nhasized that such expenses must be receipts and expense amounts may be operate as a unit. :: ' '.: : :. to reasonable and necessary. . .. verified with certified financial. . Because of the public knowledge of. '. - - statemeataor tial documents the proposed project. property values- . .. . Subpart C�ueral Relocation . . . . - - uiredb tic agencies. .. may be ffwm+d -A Property owner ` - 'Requirement r .'_ .t . .. . _ . . reg . . y . . .. . . - . should not be Peaatnedbet:aase of a :- ' .. Section24. 0W Avai7a&Vtyof - � � � SectionicnPn � ents onaryUtility' ::. decease in value:ca�ed bythe ""- Cam arable cemeN Dove! - . on agmen . . Reloeati P is-- :. proposed projectnm.map a.wrcR -ed- at . . P A�7n public expense because.nf ln�ased Before Displacement- . . ..t- . : . ,' : Section 24:3W[c) 'dear9bes the issues value createdby the pmposedproject: Section 24204{af.':GenergL'Ihia -which must be agreed.to between the - ' Section 24_IL13[ej :.Conflict Ofirnerest..:_ pravfalon guires thainouae may be- . displacing agency and the utility facility The overall ob' ctiveis ia:inin�mi7e the .. ' - I - owner in determining the amount of the +u/ !e _ . .. regedtomove;fromadweIling " _ riskotfraudand -++ woe^'<atandio ;:. witbourt.one arable: lacement relocationpaymeatTofacilitateand. aid .. comparable replacement . . e promote public wnfill l * B n Federal. ..- .: egIDg imvfrtglreea merle avarTable. in ]n��g uchagre P P s ement. th andfedesalIy-amsfe� lan3.acquisthon: - - s _PracticesiatlieFederaTFnghwey , addrhpn4 ¢ 24"�4(a) require . . . prectices._Remgniizing.tfiat-lhe cosh :-. _ 'Whale possiliie, throe urmoie . . : Adm_fniatration iegulation."23 CFR 845, may outsveighthebenifitainsome Sob -sit tltilityRekocatioas :. • ._; ' comp=. bfe'replecemen( dwellingsshall. : P circ•,rmatances. 3 2d.103(e).provides that r '• - Adjustments and Reon uraem>m4 the same ereou may.both a and ',}; be made agailabrOw Thnathebasrc should be.followed •' s P P>u�°. standidTortheuumberzfr&f Orals 'negotiate an acquisitinn,'if the value is. . _ _ 8 requ4ed undei•1bis secfivaia t�ree. _ - Subpart lrReT*iment Housirrg 52588 or less. However. It ehould:be.:. .:. .; noted thaYall a s m tat he::: -- :.?- Only fn. situa6tms 'wbeie.tbiee':' Payments . PF 1, . , comparable replacement,diveAinP ora . :. reviewed in ac;:ordance withI U40V ".' Secdon 21.401 ._Replacement Housing. This includes apprafstds of real.pr•operty ` . sot avaifable (e g. whin ui itieloral housingmarkeidoesmtcontainthree P°ymrstf°rY80-Dayf3omeowner . . .. valued at $2.5= or lesai:ii j-- ;i-:... , comparable dwelliugsJmay the Agency Occupants Section 24.104 :Review of appraisals. - make fewer than three refeaals. .. Semon 24.401(a)(2). The Provision for ThisaectirnrewgrxadsthatAgemies..:, Sec;dar2 ..2tXi -RelocodbaAssistance extending eligibility far a replacement' differ in the authority delegated to the Ad Services housing rgoodpayment beyavd the one year an review appraiser. In eame mass the ' � v period for good mase means that e reviewer establishes the amount of the Sectiaa 24.205(cr(2)(ir•}(G� is intended extension may be grantad.if some event offer to the owner and in other cases the to emphasize that if the comparable beyond the control of the displaced reviewer makes a recommendation replacement dwellings are located is person such as name or life threatening which is acted on at a higher level. It is arses of minority concentration, illness. bad weather preventing the also Within Agency disctetion to decide minority persons should, if possible, also completion of construction of a whether a second review 1s needed if be given opportunities to relocate to replacement dwelling or other like the first review appraiser establishes a replacement dwellings not located in circumstances should cause delays in value different from that in the appraisal such areas. occupying a decent safe, and sanitary replacement dwelling, report or reports an a property. Section 2220! General Before acceptance of an appraisal theSection ion in Price )(4g ) to u review appraiaer must determine that Requirements--Calms; far Relocation The provision is ¢ 1A.4U1(c)[4}(iii) to use the appraiser's docnmentation. Including Ithe current fair market value for valuation data and the analyses of that Section 24207(x) allows an Agency to residential use does not mean the data, demonstrates the Qoundnesa of the make a payment for low cost or Agency most have the property appraiser's opinion of value- The uncomplicated moves without appraised. Any reasonable method for qualificationa of the review appraiser additional documentation. as brag as the arrivIng at the fair market volae may.t�c and the level of explanation of the basis _ payment b llmited to the amomst of the used • • ': -- APPRAISAL REPORT FOR CITY OF FAYMEVILL PROJECT Fayetteville Airport Land & Easement Aaluisition COUNTY Washington JOB 1L 3-05-0020- 11 . Phase 4 rant 15 TRACT . #52 & X53 LOCATION South School Avenue. North of the Drake Field Airport Washington County Arkansas FEE OWNER Kearney National . Inc. and Mill Products ADDRESS 3660 S. School Fayetteville AR 72701 ESTATE APPRAISED _ Fee Simple approximately approximately AREA OF WHOLE 19.42 Acs. PERCENTAGE OF TAKING 83 % (See Remarks) AREA OF AVIGATION ACQUISITION 16.21 Acs. (Legal Description attached) ESTIMATED FAIR MARKET VALUE OF THE PROPERTY: f. Before Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1111 . . . . . . . . . . . . . . . . $ 116.000 Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1 .620.000 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . . $ 1 .736.000 After Land [$ 116,000 Less Air Rights]. . . . . . . . . . . . .. . . . . $ 111 .200 Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1 .620.000 Total . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 $ 1 .731 .200 FAIR MARKET VALUE OF ACQUISITION . . . .$ 4. 800 As of 16th day of March , 193 DETERMINATION AND ALLOCATION OF F. M. V. OF ACQUISITION Air Rights: (See Factor Formula) 10. 37 ac. X $6,000 X 6. 82 % . . . . . . . . . . . . . . . $ 4.243 .40 5. 84 ac. X $6,000 X 1. 7190 . . . . . . . . . . . . . . . . $ 599. 18 Land: . . . . . . . . . . . . I . . . . . . . . . . . . . . . . $ 0 Improvements: . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . $ 0 Total Air Rights, Land, Improvements . . . . . . . . . . . . $ 4 .842.58 Damages or Benefits . . . . . . . I . . . . . . . . . . . I . . . I . . . . . . . . . . . $ 0 Total Compensation . . . . . . 1111 . . . . . . . . . . . . . . . . . . . . . . . . . $ 4. 842.58 Say $ 49800 ATTACHMENTS : a X Certificate of Appraiser X Plat pp X Photographs X Neighborhood Data X Zoning, H&B Use & Narrative Apprai er X Tax Assessment Card X General Information X Market Data Approach Da e CERTIFICATE OF APPRAISER I hereby certify: That I have personally inspected the property herein appraised, that I have made a personal field inspection of the comparable sales relied upon in making said appraisal and that I have afforded the property owner the opportunity to accompany me on an inspection of the property. The subject and the comparable sales relied upon in making said appraisal were as represented by the photographs and data contained in said appraisal. That to the best of my knowledge and belief the statements contained in the appraisal herein set forth are true, and the information upon which the opinions expressed therein are based is correct, subject to the limiting conditions therein set forth. That I understand that such appraisal may be used in connection with the acquisition of avigation easements for a project to be undertaken by the City of Fayetteville Municipal Airport. That such appraisal has been made in conformity with the appropriate City laws, regulations, and policies and procedures applicable to appraisal of avigation easements for such purposes; that report has been prepared in accordance with the Order For Acquisition and Relocation Assistance for Airport Development dated May 7, 1981 by the Federal Aviation Administration; that in appraising the value before acquisition , no consideration has been given to increases or decreases in Fair Market Value caused by the public improvement; and that to the best of my knowledge no portion of the value assigned to such property consists of items which are noncompensable under the established law of said City. That neither my employment nor my compensation for making this appraisal and report are in any way contingent upon the values reported herein. That I have no direct or indirect present or contemplated future personal interest in such property or in any benefit from the acquisition of such property appraised. That I have not revealed the findings and results of such appraisal to anyone other than the proper officials of the City of Fayetteville, and I will not do so until so authorized by said City officials, or until I am required to do so by due process of law, or until I am released from this obligation by having publicly testified as to such findings. That in my opinion the just compensation for the acquisition as of the 16th day of March , 192L, is $.4.800 based upon my independent appraisal and the exercise of my professional judgment. Date ignature Signature i JOB Project 113-05-0020- 11 TRACT 52 & 53 j. CONTACTED FOR APPRAISAL INSPECTION AND COMMENTS Date: March 10, 1993 Name: Kearney National, Inc. , and Mill Products, (Tom Boyd) Comments: The appraiser contacted the owner of the subject property prior to inspection by mail and by phone. The appraiser discussed the easement over the phone with Tom Boyd, plant manager. The property was physically inspected on March 16, 1993 and Jim Schrum, Maintenance Foreman accompanied the appraiser. TEN-YEAR SALES HISTORY: The current property owners have owned the -subject property in excess of ten years. A portion of the subject property was acquired by the Kearney National, Inc. , from the Fayetteville Chamber of Commerce, Inc. , on or about April 6, 1972, per deed 830-628. The portion of the subject property currently owned by Mill Properties, Inc. acquired the property from Fayekearn Corporation, (an Arkansas corporation) on or about November 21, 1977, per deed 943-968. No other transactions involving other parties have been recorded at the Washington County Courthouse. CHANGES IN PROPERTY SINCE DATE OF PURCHASE: Building of Industrial Plant and other additions METHOD OF APPRAISAL: See The Appraisal Process The appraiser has utilized the Market Data Approach in estimating the value of the subject site before the taking. The appraiser has reviewed the engineering plans provided to him and has noted that the subject site does not penetrate lite horizontal surface over the property. The Cost Approach has been performed to facilitate the appraisal. The Income Approach was not utilized due to the lack of adequate economic rental data on properties such as the subject. The value of avigation easement taking will be valued by utilizing the Factor Formula. Further explanation of the Factor Formula is described later in this report. I I V GENERAL REMARKS: Reference Exhibit A Discussion of the Proposed Easement: The subject property is located in the Runway Approach Zone on the north side of Drake Field . The subject property's proximity to the airport is north of the runway 800' from the Clear Zone Area at the subject's south property line and 1 ,750' at the subject's north property line. The proposed Approach Surface easement extends over the subject property at a slope of 34: 1 rising to the north . The East Transitional Surface easement area extends over an eastern portion of the site and has a slope rising both to the north and to the east at 34: 1 and 7: 1 respectively. There are two existing easements which currently encumber the site. A Clear Zone Easement and a Mals Lighting Easement both of which extend over the western portions of the subject site along the S .School and which are proximal to the Centerline of the Runway Extended, (these will be discussed further). The subject site is a large and irregular shaped tract lying entirely within the Runway Approach and Runway East Transitional Approach Surface areas. The site's location is relatively close to the end of the Runway Clear Zone and consequently results in the surface of the Approach Slope to be located relatively close to the surface of the ground of the subject. The manner in which the subject is situated to the Airport Runway is such that a wide assortment of elevations difference result between the Approach Surface and the subject's ground, as well as the East Transitional Approach Surface and the ground beneath. Seven elevation differences will be averaged in order to arrive at a figure to be used in the Factor Formula for the distance of the Easement above the ground: 1 -2) the two elevation differences at the corners of the west property line, 3-4) the two elevation differences on the north and south lines of the site where the Approach and Transitional Surface areas meet, 5-6) the elevation differences in the East Transitional Approach Surface at the east property line corners, and 7) the point where the elevation difference between the Approach Surface and the subject improvements is the smallest. Five distances will be averaged in order to arrive at a figure to be used in the. Factor Formula for the distance of the subject at a right angle from the Centerline of the Runway Extended: 1 -2) the distances of the west corners from the Centerline, 3-4) the distances of the east corners from the Centerline and , 5) the distance of the southeast corner of tract 53 from the Centerline. Two distances will be average in order to arrive at a figure to be used in the Factor Formula for the distance of the subject from the north boundary of the Clear Zone Area ht the end of the Runway: 1 ) the distance of the south property line where the Centerline of the Runway Extended crosses, 2) the distance of the northwest corner of tract 52 which is along S .School Avenue. L . Discussion of Existing Easements: There are two existing Avigation related easements encumbering the subject property. There is an existing Mals Clear Zone Easement area which extends over a small portion of the site and rises at a slope of 50: 1 , reference Exhibit A. The proximity of this Easement Surface to the ground below is closer than the location of the proposed easement. Therefore, the appraiser will not assess any additional value diminution to the area encumbered by the Mats Lighting Easement as the proposed easement will not cause any further limitations to this portion of the site. Based on calculations performed by the appraiser, the area of the existing Mals Lighting Easement is approximately 3 .21 acres or 16.5 % of the whole. There is also an existing Clear Zone Easement which extends over a portion of the subject site at a slope of 20: 1 . Reference Exhibit A. The proximity of the existing Easement Surface is above the proposed Easement Surface which has a slope of 34: 1 . The addition of the proposed easement will mathematically result in a greater amount of value diminution as it is located closer to the ground than the existing Easement. [For example, at the southwest and northwest property corners the elevation of the Existing Easement is 1 ,291 .25' and 1 ,337.5' respectively, the elevation at the proposed Easement at the same points are 1 ,274.26' and 1 ,301 .5' respectively. A difference of 17' and 36' respectively. The adjustment to the Factor Formula will take this into account.] See the Factor Formula for further explanation. Based on calculations by the appraiser, the area of the existing Clear Zone Easement and Less the area of the existing Mals Lighting Easement is approximately 5JU acres or 30% of the whole. The average distance of the ground below the approach line is approximately 45. 17 . The subject's average distance from the centerline of the runway extended is 715 '. The average distance of the subject from the end of the Clear Zone is approximately 515 '. GENERAL INFORMATION MARKET VALUE DEFINED The American Institute of Real Estate Appraisers defines market value as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: I . Buyer and seller are typically motivated. 2 . Both parties are well informed or well advised, and each acting in what he considers his own best interest. 3. A reasonable time is allowed for exposure in the open market. 4. Payment is made in terms of cash in U.S . dollars or in terms of financial arrangements comparable thereto. 5 . The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. PURPOSE OF THE APPRAI AL This appraisal is made for the purpose of estimating the Fair Market Value of the subject property acquired by the City of Fayetteville under its right of eminent domain in connection with the Avigation Easement for the Fayetteville Municipal Airport Project. Said acquisition is for the purpose of airspace rights to the airport for safety reasons. The appraisal will include all damages and/or benefits, if any, to the extent that benefits are allowed under state law, to the remaining property as just compensation for the property taken . PROPERTY RIGHTS APPRAISE The property is appraised as though owned in fee simple and unencumbered. A fee simple title is the fullest type of private ownership possible subject to all public limitations including zoning, taxation, and eminent domain; and also subject to private limitations which may exist such as easements and restrictions of record. CONTINGENT AND LEWTING CONDITIONS This property is appraised in fee simple subject to the following limiting conditions: 1 . It is assumed by the appraiser that the maps, construction plans, and/or tract descriptions furnished to him are correct. 2 . It is assumed by the appraiser that the attached deed furnished to him is correct and reflects the fee owner and .all holders of less than fee interests in the property. 3. It is the opinion of the appraiser that information gathered by . him from various sources, including dates, estimates and opinions, which are contained in this report were obtained from sources considered reliable; however, no liability for them can be assumed or guaranteed by this appraiser. 4 . No responsibility for matters legal in character is assumed by your appraiser. All existing liens and encumbrances have been disregarded, and the property is appraised as though free and clear. 5 . The various sketches and exhibits included in this appraisal are placed herein to assist the reader in visualizing the property under appraisal. Your appraiser made no surveys and accepts no responsibility for them. i 6. The appraiser has no present or contemplated future interest in the property appraised; and neither the employment to make the appraisal, nor the compensation for it, is contingent upon the appraised value of the property. THE APPRAISAL PROCESS A professional appraisal begins with a thorough inspection of the property being appraised. This includes a physical inspection of the site and all improvements which have contributory value. It also includes an inspection of the neighborhood and of site improvements which may positively or negatively affect the value of the subject property. And finally, it includes a review of the general area of the subject in order to ascertain any favorable or unfavorable environmental or economic conditions which may exist, such as proximity to markets, poultry operations, noisy highways, and schools, etc. . After a thorough analysis of the subject property, its neighborhood, and its general area, the appraiser then attempts to ascertain a fair market value. Three time tested appraisal approaches or techniques are utilized in the profession in order to develop a value indication. These three approaches are the Market Data Approach , the Cost Approach, and the Income Approach. Each approach is briefly described as follows: The Market Data Approach - Also known as the Sales Comparison Approach is a comparison is of similar, recently sold properties to the subject property. The Cost Approach - Involves estimating the replacement cost new of the improvements, deducting the estimated accrued depreciation, and then adding the market value of the land. The Income Approach - An appraisal method in which the estimated gross income from the subject property is used as a basis for estimating value along with gross rent multipliers derived from the marketplace. Each approach utilizes the various principles of value which exist in the marketplace. These value principles include supply and demand, balance, contribution, conformity, external items, opportunity costs, and utmost - substitution. The principal of substitution states simply that a knowledgeable, prudent purchaser has three alternatives. That is, 1 ) to buy a vacant site and construct a duplicate or similar property without delay (Cost Approach) , 2) to purchase another existing property with equal or similar desirability and utility (Market Data Approach) , or 3) to invest in or acquire a comparably yielding income stream of similar quality, quantity and longevity (Income Approach). All three approaches may not be used in all appraisal assignments depending upon the applicability of the approach to the property being appraised and the scope of the appraisal assignment. After the appraiser applies the applicable approaches to the subject property , he must reconcile the differences in value so indicated. Based upon the appraiser' s experience and judgment, this may involve selecting one of the three approaches which is deemed more reliable or it may involve employing a weighted <average of the three approaches in his final correlation or conclusion of value.