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163-98 RESOLUTION
E; ' . r �y 1 es t. d RESOLUTION NO. 163- 9 8 A RESOLUTION APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE OPTIONS TO PURCHASE LAND AND AN OFFER AND ACCEPTANCE TO PURCHASE LAND LOCATED BETWEEN WASHINGTON COUNTY ROADS #648 AND #649, SOUTH OF HIGHWAY 16 WEST AND NORTH OF HIGHWAY 62 BELONGING TO JAMES. E MCCLELLAND, JR., ET AL; H.M. AND NORMA LEE SHIPP; BROYLES FARM CORP.; AND CALVIN AND WANDA SUE HAMMOND; AUTHORIZING THE CLOSING COSTS FOR LAND ACQUISITION; AND APPROVING A BUDGET ADJUSTMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves and authorizes the Mayor and City Clerk to execute Options to Purchase and an Offer and Acceptance to purchase land located between Washington County Roads #648 and #649, South of Highway 16 West and North of Highway 62 belonging to James E. McClelland, Jr., et al; H.M. and Norma Lee Shipp; Broyles Farm Corp., and Calvin and Wanda Sue Hammond; and authorizing the closing costs for land acquisitions. Copies of the Options to Purchase and the Offer and Acceptance are attached hereto and made a part hereof. Section 7. The City Council also approves a budget in the amount of $285,000 increasing Sewer Improvements, Acct. No. 5400 5700 5815 00, Project Number 98105 30 by decreasing Use of Fund Balance, Acct. No. 5400 0940 4999 99. A copy of the budget adjustment is attached hereto and made a part hereof. PASSED AND APPROVED this /S day ofpF1Fina142, 1998. It- .. •- - - APPROVED: BY: ! red Hanna, Mayor 1, ATTEST: • By:ZZQiD Heather Woodruff, City Clerk City of Fayetteville, Arkansas ' Budget Adjustment Form ,2 1 Budget Yeer Department: Public Works Date Requested Adjustment # 1998 Division: Water & Sewer 12/15/98 Program: Sewer Mains Capital Project or Item Requested: Funding is requested for land purchase/ option cost for wastewater treatment plant expansion project. Project or Item Deleted: none. Use of fund balance is p oposed for this adjustment. Justification of this Increase: The land purchase options are before City Council for approval. Justification of this Decrease: Sufficient cash & investments exist to fund this request. Account Name Sewer Improvements Increase Expen e (Decrease Revenue) Amount Account Number Project Number 285,000 5400 5700 5815 00 98105 30 Decrease Expense (Increase Revenue) Account Name Amount Account Number Project Number Use of Fund Balance 285,000 5400 0940 4999 99 Re. ested By Approval Signatures Bu.get ordinator Department Director Admin. Seryices Director Ma(vor Date Date Date Budget Office Use Only Type: A B C ! u/ E Date of Approval ���//J Posted to General Ledger Posted to Project Accounting Entered in Category Log Blue Copy: Budget & Research / Yellow Copy: Requester C:WPP198BUD\BAAD.AWWTP_EXP.WK4 STAFF REVIEW FORM AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of November 17. 1998 FROM: • n 1 i ngtneenng Public Works Name Division Department ACTION REQUIRED: Approval of resolution authorizing the acquisition of 320.0 acres of land located between Washington County Roads #648 & #649, South of Highway 16 West and North of Highway 62, being the E 1/2 of Section 14, Township 16 North, Range 31 West, for the possible location of a second waste water treatment facility. Properties to be acquired from James E. McClelland Jr., et al, H. M. and Norma Lee Shipp, Broyles Farm Corp. and Calvin and Wanda Sue Hammond. Approval should include closing cost associated with the purchase of these lands. Budget adjustment approval required. COST TO CITY: $3.127.0110 Cost of this Request 5400-5100-5805.00 Account Number lg105-30 Project Number $ -0- Category/Project Budget $ -0- Funds Used To Date $ -0- Remaining Balance Waste Water Treatment Plant Exp. Category/Project Name Program Name Water/Sewer Fund Fund UD E g Coor or Budgeted Item X Budget Adjustment Attached Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: 4 • una._ sr. qty Atto.y Purchasing Officer //-9-9d Date io a9te 11-10 98 bate 1 Date 11-70—we / —/O — ?! ADA Coordinator Date STAFF RECOMMENDATION: Staff recommends acquisition of the total 320 acres so as to be able to annex the southern most portion of these properties for the possible use for as a second waste water treatment facility. It is possible that the northern 200 acres + could be used for a future golf course which could utilize effluent from the treatment plant and generate income from the land use. Time is of�lssea'celfor these sellers due to various factors and outside pressures. (A_ sJaz A' / xiet u ate 0 , .r.„ 7/ lo -s& nt Three or bate i Administrative Services Director Date Mayor Date Cross Reference New Item: Yes X No Prev Ord/Res #: Orig Contract Date: • STAFF REVIEW FORM T • Page 2 Description Itlunop anproyip the purchase of 320 acres on the West side of Fayetteville for a waste water treatment facility. Meeting Date November 17. 1998 , Comments: Budget Coordinator Accounting Manager City Attorney Purchasing Officer ADA Coordinator Internal Auditor Reference Comments: FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE DATE: 11-10-98 TO: Fayetteville City Council THRU: Fred Hanna, Mayor Charles Venable, Public Works Director FROM: Ed Connell, Land Agent/if/6 RE: West Side Land Purchase On Thursday, October 29, 1998, the Water/Sewer Committee approved the City staff to enter into negotiations with willing property owners on the West side of Fayetteville for the possible location of a second waste water treatment facility. Offer and Acceptance contracts have been negotiated with four property owners, subject to approval by the Fayetteville City Council. Executed documents should be received from all parties during the week of November 9th, 1998. Copies of these contracts are included for reference purposes. With your approval, please submit this request to the Fayetteville City Council for acquisition approval of these properties in accordance with the contracts. Attached, please find a diagram which depicts location of the properties under contract. In total, 316.5 acres of unimproved land and a 3.5 acre parcel with a residence will be acquired. The contract(s) price for these acquisitions amount to $3,127,000. Some slight additional cost (> $15,000) will be involved to close all of these transactions. Appraised market value for these properties was $2,736,000. The contract(s) price represents about a 14% increase over appraised value. The City has the opportunity to acquire these properties from willing sellers at this time and it is important to the owners that these transactions take place in a minimum amount of time. Some of the owners have been the object of a group of people who oppose this project and these owners would like to get the sale of their property over with as quickly as possible. The following summarizes the appraised and negotiated values on these properties: TRACT # 3 4 5 6 OWNERSHIP McClelland Shipp Broyles Hammond TOTAL ACREAGE 100.0 100.0 116.5 3.5 320.0 APPRAISAL ($) 900,000 800,000 932,000 104,000 2,736,000 + 14.3 % SETTLEMENT ISI 1,040,000 1,000,000 967,000 120.000 3,127,000 Funding is programmed into the 1999 budget for this land acquisition. Approximately 2/3 of the acquisition cost could be required before the end of 1998 as some owners are anxious to close as soon as possible. Attached, please find a required budget adjustment for these funds. A 178 CITY OF FAYETTEVILLE, ARKANSAS 1999 - 2003 CAPITAL IMPROVEMENTS PROGRAM PROJECT DETAIL PROJECT TITLE: Wastewater Treatment Plant Expansion PROJECT COST REQUESTING DIVISION: Water/Sewer& Engineering1 1999 $ 2,900,000 2000 FUNDING SOURCE: Water & Sewer Fund 2001 PROJECT CATEGORY: Water & Sewer Improvements 2002 2003 INITIAL YEAR PRIORITY: 4 PROJECT TYPE: REPLACEMENT TOTAL PROJECT COST $ 2,900,000 EXPANSION Y PROJECT DESCRIPTION & JUSTIFICATION : The purpose of this project Is to address the needs for future Wastewater Treatment Improvements which were outlined in a Wastewater Facility Plan completed in 1998. This Wastewater Facility Plan focuses on the impacts of growth on the City of Fayetteville wastewater system. Utilizing the 85,090 population projected in the City's General Plan 2020, it establishes a vision of future wastewater facilities to accommodate increasing wastewater flows. This project has funding budgeted in the Water & Sewer Fund and a tentative bond Issue fund. The different methods of funding will be analyzed and will be determined in the future. There is additional $66.800,000 requested In the Bond Fund. PROJECT STATUS (IF IN PROGRESS) : Currently, $2,000,000 is budgeted In 1998 to fund engineering for wastewater treatment plant Improvements and expansion. EFFECT OF THE PROJECT ON ANNUAL OPERATIONS : Additional operating expenses associated with the operation of an additional plant. 1 i i •�. Omar Crust ' �l, �. I i/ W BM Finn \,e �) i i �d \N. �..� j :mfi{ DC" I i 1S d% yo.o nm. . a •.I / I� I�m� % F�nbpmn �' ^n` ` `. enN 1 !1� \ if •`i QI.( sq� .�� \ E.MoM { ptU,.. OS 178 I"n• • 015 04 Document Reference RES I 4 -Date 12/15/1998 City of Fayetteville Maintenance/Inquiry Item Action Ref. Taken Brief Description 163 1/10/2002 9:18:42 L OPTIONS/LAND PURCHASE/SEWER PLANT Keywords File Reference # Security Class Expiration Date Date for Cont/Referred: Name Referred to • • • RES. 163-98 OPTIONS TO PURCHASE LAND OFFER AND ACCEPTANCE MCCLELLAND, JAMES SHIPP, H.M. AND NORMA BROYLES FARM HAMMOND, CALVIN AND WANDA SEWER PLANT PROPOSED SITE SOUTH OF HWY 16 & n. of hwy 62 TITLE INSURANCE ATTACHED holding Cmdl-Return Cmd2-Check Out Cmd'S-Abstract Yes No Retention Type: **** Active **** Press Cmd 6 to Update CmdB-Retention Cmd3-End Press 'ENTER' to Continue (c) 1986-1992 Munimetrix Systems Corp. Wit. 'w^ 1. • 1, Prep Date. 11-02-98 OFFER AND ACCEPTANCE CONTRACT 1 The City of Fayetteville, Arkansas, a municipal corporation, hereinafter referred to as the Buyer, offers to buy, subject to the terms and conditions set forth herein, the following described property: SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION 2. Purchase Price: Subject to the following conditions, the Buyer shall pay for the property at closing, the total and cash payment of One Hundred Twenty Thousand Dollars (5120,000.00). 3. Contingent Earnest Money Deposit: The Buyer shall, within two weeks of receipt of this fully executed Contract, tender a check for $5,000 to Calvin R. Hammond and Wanda Sue Hammond, husband and wife, hereinafter referred to as the Seller, as earnest money, which shall apply on the purchase price. This offer of purchase is contingent upon approval of the City Council of the City of Fayetteville, Arkansas, and, if they do not so approve, the earnest money deposit will be returned to the Buyer by the Seller. If title requirements are not fulfilled or the Seller fails to fulfill any obligations under this contract, the earnest money shall be promptly refunded to the Buyer. If the Buyer fails to fulfill his obligations under this contract or after all conditions have been met, the Buyer fails to close this transaction, the earnest money may, at the option of the Seller, become liquidated damages to the Seller. Alternatively, the Seller may assert legal or equitable rights which it may have because of breach of this contract. 4. Conveyance will be made to the Buyer by general Warranty Deed, except it shall be subject to recorded instruments and easements, if any, which do not materially affect the value of the property. Such conveyance shall include mineral rights owned by the Seller. 5. The Seller shall furnish a policy of title insurance in the amount of the purchase price from a title insurance company as selected by the Buyer. Buyer and Seller shall equally share in the cost of such title insurance policy. 6. Seller agrees to allow Buyer, if Buyer so desires, at Buyer's expense, to survey the property Seller agrees to cure any title problems which may result from any differences between the recorded legal descriptions of the property and the survey description. Said title problems, if any, must be solved prior to closing to the satisfaction of the Buyer and title insurance provider. 7. Taxes and special assessments due on or before closing shall be paid by the Seller. Insurance, general taxes, ad valorem taxes, special assessments and rental payments shall be prorated as of closing. •r t . OFFER AND ACCEPTANCE CONTRACT Page 2 of 4 Prep Date:11-04-98 8. The closing date is designated to be sixty (60) days after approval of this offer by the Fayetteville City Council. If such date of closing falls on a weekend or holiday, it will be held the following working day. 9. Possession of the property shall be delivered to the Buyer on the date of closing. 10. Buyer agrees to lease the property to Seller under the terms of a "Lease Agreement" between the parties on a monthly basis for a period not to exceed one year, beginning on the date of closing. Seller may terminate said Lease Agreement at any time with 30 days written notice to the Buyer. The lease payment under said agreement shall be $ 100.00 per month. 11. Seller hereby grants permission for the Buyer or its employees or designates to enter the above described property and improvements for the purpose of inspec- tion and/or surveying 12. All fixtures, improvements and attached equipment are included in the purchase price. 13. Risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is assumed by the Seller. 14. Seller shall disclose to Buyer any and all environmental hazards of which Seller has actual knowledge. 15. This agreement shall be governed by the laws of the State of Arkansas. 16. This agreement, when executed by both the Buyer and the Seller shall contain the entire understanding and agreement of the parties with respect to the matters referred to herein and shall supersede all price or contemporaneous agreements, representations and understanding with respect to such matters, and no oral representations or statements shall be considered a part hereof. 17. This contract expires, if not accepted on or before the 15th day of November, 1998. 3 , R OFFER AND ACCEPTANCE CONTRACT Page 3 of 4 Prep Date: 11-02-98 18. NOTICE: BUYER ASSERTS AND "SELLER HEREBY ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE APPROVAL OF THIS OFFER OF PURCHASE BY THE CITY COUNCIL OF FAYETTEVILLE AND THAT THE FAILURE OF THE COUNCIL TO SO APPROVE WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT NOT LIMITED TO, THE RETURN TO BUYER OF THE $5,000 EARNEST MONEY DEPOSIT. SELLER: (4 45 Calvin R. Hammond Wanda Sue Hammond AGENT OR WITNESS: igt 46-11 BUYER: City of Fayetteville, Arkansas, a municipal corporation Fred Hanna, Mayor /e0# (Heather Woodruff, City CYerk Date: / /- /0 Date: 11- 1U -q8 Date: 11 /10/4 S? Date: 'Mir Date: i/A//ri • J j_ , OFFER AND ACCEPTANCE CONTRACT Page 4 of 4 EXHIBIT "A" PROPERTY, DESCRIPTION A part of the Southeast Quarter (SEA) of the Southeast Quarter (SEA) of Section Fourteen (14) in Township Sixteen (16) North of Range Thirty-one (31) West of the Fifth Principal Meridian, more particularly described as follows: Beginning at a point 579 feet West of the Southeast corner of the Southeast Quarter of said 40 acres tract and running thence West 741 feet, more or less, to the Southwest corner of said 40 acre tract; thence North 209 feet; thence East 741 feet, more or less, to a point 209 feet North of the point of beginning; thence South 209 feet to the Point of Beginning, containing 3.5 acres, more or less, Washington County, Arkansas SIGNED FOR IDENTIFICATION: SELLER:H C... 4t.. . ? ifaM Calvin R. Hammond Wanda Sue Hammond BUYER: The City of Fayetteville, Arkansas, a municipal corporation BY: Fred Hanna, Mayor eat er Woodruff, City (Seal) OPTION TO PURCHASE REAL ESTATE For and in consideration of the sum of Thirty One Thousand Two Hundred Dollars ($31,200)) paid to the undersigned James E McClelland, Jr. and Patricia F. McClelland, husband and wife, Linda M. Rogers and Joseph S. Rogers, wife and husband, and Raymond K. McClelland, a single person, hereinafter called Seller, the receipt of which is hereby acknowledged, the Seller hereby gives to the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called Buyer, its successors and assigns, the exclusive initial option to purchase for the total sum of One million Forty Thousand Dollars ($1,040,000), herein called the purchase price, being exclusive of the consideration set forth hereinabove, on or before the expiration of six (6) months from the date of this option, the following described real estate, to - wit: SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION Buyer shall further have the option to extend the initial exclusive option to purchase for an additional six (6) month period, beginning on the date immediately following the expiration of the initial option period and with the payment to Seller of Twenty Thousand Eight Hundred Dollars ($20,800), said payment for the extended option period being due and payable within two weeks of said extension. The consideration first mentioned hereinabove shall be paid to the Seller by the Buyer within thirty (30) days of the date hereof or within thirty (30) days of the date of approval by the Fayetteville City Council, whichever occurs latest. If Buyer decides to exercise this option to purchase, written notice shall be given to Seller of Buyer's election to exercise this option on or before the expiration date(s) provided by this Option to Purchase. Buyer and Seller have previously entered into an Offer and Acceptance Contract, hereinafter referred to as the "0 & A Contract", dated November 8. 1998, a copy of which is attached herewith and made a part hereof. The terms and conditions of said 0 & A Contract shall govern the conveyance of said real estate described except (1) the Contingent Earnest Money Deposit provided for in said 0 & A Contract shall be paid by the Buyer to the Seller within two weeks of the written notice by the Buyer to exercise the option as provided for with this Option to Purchase agreement, (2) the closing date for the conveyance of said real estate described herein shall occur within ninety (90) days of the written notice by the Buyer to exercise the option provided for herein and (3) Seller and Buyer shall prorate any and all assessed taxes on the above described real estate as of the date of closing for the tax year of such closing. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands on this 22nd day of December , 1998 . SELLERS. c James E McClelland, Jr. r Lind -S 'overs and K. McClelland BUYE$: City of Fayetteville, Arkansas Fred Hanna, Mayor Patricia F. McClelland S. Roger eather Woodruff, City Cle Z • OPTION TO PURCHASE Page 2 EXHIBIT MA° PROPERTY DESCRIPTION • The North Half (N1) of the Northeast Quarter (NE1); the North Half (N/) of the North Half (N1) of Southwest Quarter (SW14) of the Northeast Quarter (NE1/4), the North Half (NY) of the North Half (W) of the Southeast Quarter (SEA) of the Northeast Quarter (NE3/4), all in Section Fourteen (14), Township Sixteen (16) North of Range Thirty-one (31) West of the Fifth Principal Meridian, containing one - hundred (100) acres, more or less, Washington County, Arkansas S OFFER AND ACCEPTANCE CONTRACT Preparation Date: 11-3-98 1 The City of Fayetteville, Arkansas, a municipal corporation, hereinafter referred to as the Buyer, offers to buy, subject to the terms and conditions set forth herein, the following described property; SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION 2. Purchase Price: Subject to the following conditions, the Buyer shall pay for the property at closing, the total and cash payment of One Million Forty Thousand Dollars ($1,040,000.00). 3. Contingent Earnest Money Deposit: The Buyer shall, within two weeks of receipt of this fully executed Contract, tender a check for $10,000.00 to James E. McClelland Jr. and Patricia F. McClelland, husband and wife, Linda M. Rogers and Joseph S. Rogers, wife and husband, and Raymond K. McClelland, a single person , hereinafter referred to as the Seller, as earnest money, which shall apply on the purchase price. This offer of purchase is contingent upon approval of the City Council of the City of Fayetteville, Arkansas, and, if they do not so approve, the earnest money deposit will be returned to the Buyer by the Seller If title requirements are not fulfilled or the Seller fails to fulfill any obligations under this contract, the earnest money shall be promptly refunded to the Buyer. If the Buyer fails to fulfill his obligations under this contract or after all conditions have been met, the Buyer fails to close this transaction, the earnest money may, at the option of the Seller, become liquidated damages to the Seller. Alternatively, the Seller may assert legal or equitable rights which it may have because of breach of this contract. Seller, at Seller's option, may instruct Buyer to retain such Earnest Money Deposit until closing or have said Earnest Money Deposit delivered to a Section 1031 Intermediary for exchange purposes. 4. Conveyance will be made to the Buyer by general Warranty Deed, except it shall be subject to recorded instruments and easements, if any, which do not materially affect the value of the property. Such conveyance shall include mineral rights owned by the Seller. 5. The Seller shall furnish a policy of title insurance in the amount of the purchase price from a title insurance company as selected by the Buyer. Buyer and Seller shall equally share in the cost of such title insurance policy. 6. Seller will provide a boundary survey of said property by McClelland Consulting Engineers, Inc. at Sellers cost. Seller agrees to cure any title problems which may result from any differences between the recorded legal descriptions of the property and the survey description. Said title problems, if any, must be solved prior to closing to the satisfaction of the Buyer and title insurance provider. • OFFER AND ACCEPTANCE CONTRACT Page 2 of 5 Prep. Date: 11-3-98 7. Taxes and special assessments due on or before closing shall be paid by the Seller. Insurance, general taxes, ad valorem taxes, special assessments and rental payments shall be prorated as of closing. 8. The closing date shall be determined by mutual consent, but not longer than seventy five (75) days after approval of this offer by the Fayetteville City Council. If such date of closing falls on a weekend or holiday, it will be held the following working day. 9. Possession of the property shall be delivered to the Buyer on the date of closing. 10. Seller hereby grants permission for the Buyer or its employees or designates to enter the above described property and improvements for the purpose of inspec- tion and/or surveying. Buyer shall indemnify and hold Seller harmless of any damages caused by foregoing inspections and this covenant shall survive any termination of this Offer and Acceptance Contract. 11. All fixtures, improvements and attached equipment are included in the purchase price. 12. Risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is assumed by the Seller. 13. Seller shall disclose to Buyer any and all environmental hazards of which Seller has actual knowledge. 14. This agreement shall be governed by the laws of the State of Arkansas. 15. This agreement, when executed by both the Buyer and the Seller shall contain the entire understanding and agreement of the parties with respect to the matters referred to herein and shall supersede all price or contemporaneous agreements, representations and understanding with respect to such matters, and no oral representations or statements shall be considered a part hereof. 16. This contract expires, if not accepted on or before the 15th day of November , 1998. • OFFER AND ACCEPTANCE CONTRACT Page 3 of 5 4 Prep. Date: 11-3-98 17. In the event the subject orooertv is developed into a golf course. the name of the course will include the family name "McClelland". An example and suggested name is "McClelland highlands Golf Course' The name to be approved by the McClelland Family. 18. MUTUAL COOPERATION RELATING TO LIKE -KIND EXCHANGE: Seller will pay cost relating to a 1031 exchange. Each party agrees to take any and all reasonable actions requested by the other party to assist in effectuating a like - kind exchange involving the Property pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the Code), including, without limitation, Buyer's consenting to the assignment of this Offer and Acceptance contract by Seller to a "qualified intermediary". as defined in Section 1031 of the code and regulations promulgated thereunder; provided, however, in no event will either party be required to take title to any other property or to incur any additional expenses in order to effectuate the like -kind exchange. Each party shall hold the other harmless from and indemnify and defend the other party against all liability, costs and expenses, including reasonable attorney's fees, that may be assessed against or incurred by the other party arising out of the actions taken by it at the request of the other to assist in effectuating a like -kind exchange involving the Property. Each Party hereby releases the other party from any and all claims, losses, damages, suits, costs and expenses, including attorney's fees, arising out of or relating to the disqualification of this sale -purchase transaction as a like -kind exchange under the Code. This release and hold -harmless indemnification agreement will survive the closing of this transaction. Buyer understands that "Seller" is three different individuals that each own an undivided tenants-in- common interest in the Property and each may separately determine the propriety of entering into a like -kind exchange with respect to his or her respective interest in the Property. 19. NOTICE: BUYER ASSERTS AND SELLER HEREBY ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE APPROVAL OF THIS OFFER OF PURCHASE BY THE CITY COUNCIL OF FAYETTEVILLE AND THAT THE FAILURE OF THE COUNCIL TO SO APPROVE WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT NOT LIMITED TO, THE RETURN TO BUYER OF THE $10,000.00 EARNEST MONEY DEPOSIT. e 1 i • OFFER AND ACCEPTANCE CONTRACT Prep. Date: 11-03-98 Page 5 of 5 EXHIBIT "A" PROPERTY DESCRIPTION The North Half (N'/:) of the Northeast Quarter (NE'/4); the North Half (N'%) of the North Half IN%) of Southwest Quarter (SWY4) of the Northeast Quarter (NEM; the North Half (N1/2) of the North Half (NY/) of the Southeast Quarter (SEY) of the Northeast Quarter (NEY4), all in Section Fourteen (14), Township Sixteen (16) North of Range Thirty-one (31) West of the Fifth Principal Meridian, containing one -hundred (100) acres, more or less, Washington County, Arkansas SIGNED FOR IDENTIFICATION: SELLER: 4.(4.,461)4 es E. McClelland Jr. Linda M Rogers Raond . McClelland BUYER: The City of Fayetteville, Arkansas, a municipal corporation BY: Fred anna, Mayor rtA> /�- �� Heather Woodruff, Cit lerk t 4 • • OPTION TO PURCHASE REAL ESTATE For and in consideration of the sum of Thirty Thousand Dollars ($30,000) paid to the undersigned H. M Shipp and Norma Lee Shipp, husband and wife, hereinafter called Seller, the receipt of which is hereby acknowledged, the Seller hereby gives to the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called Buyer, its successors and assigns, the exclusive option to purchase for the total sum of One Million Dollars ($1,000,000), herein called the purchase price, being exclusive of the consideration set forth hereinabove, on or before the expiration of six (6) months from the date of this option, the following described real estate, to - wit: SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION Buyer shall further have the option to extend the initial exclusive option to purchase for an additional six (6) month period, beginning on the date immediately following the expiration of the initial option period and with the payment to Seller of Twenty Thousand Dollars ($20,000), said payment for the extended option period being due and payable within two weeks of said extension. The consideration first mentioned hereinabove shall be paid to the Seller by the Buyer within thirty (30) days of the date hereof or within thirty (30) days of the date of approval by the Fayetteville City Council, whichever occurs latest. If Buyer decides to exercise this option, written notice shall be given to Seller of Buyer's election to exercise this option on or before the expiration date(s) provided by this Option to Purchase. Buyer and Seller have previously entered into an Offer and Acceptance Contract, hereinafter referred to as the "0 & A Contract", dated November 10, 1998, a copy of which is attached herewith and made a part hereof. The terms and conditions of said 0 & A Contract shall govern the conveyance of said real estate described except (1) the Contingent Earnest Money Deposit provided for in said 0 & A Contract shall be paid by the Buyer to the Seller within two weeks of the written notice by the Buyer to exercise the option as provided for with this Option to Purchase agreement, (2) the closing date for the conveyance of said real estate described herein shall occur within ninety (90) days of the written notice by the Buyer to exercise the option provided for herein and (3) Seller and Buyer shall prorate any and all accessed taxes on the above described real estate as of the date of closing for the tax year of such closing. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands on this 22nd day of December , 1998 . SELLERS: e2a H M. Ship % Norma Lee Shipp BUYER. City of Fayetteville, Arkansas Fred Hanna, Mayor eather Woodruff, City Clew OPTION TO PURCHASE i Page 2 • EXHIBIT "A" PROPERTY DESCRIPTION The North -half (N1) of the Northwest Quarter (NW%) of the Southeast Quarter (SEA); the North -half (N1) of the Northeast Quarter (NES) of the Southeast Quarter (3E1/4); the South -half (S'/) of the Southwest Quarter (SW%a) of the Northeast Quarter (NE'/4); the South -half (S'/z) of the North -half (N'/z) of the Southwest Quarter (SW') of the Northeast Quarter (NE14); the South -half (S'/z) of the Southeast Quarter (SE'/4) of the Northeast Quarter (NE1); and the South -half (S') of the North -half (N1) of the Southeast Quarter (SEA) of the Northeast Quarter (NE14), all in Section Fourteen (14), Township Sixteen (16) North, Range Thirty-one (31) West, containing 100 acres, more or less. • OFFER AND ACCEPTANCE CONTRACT 1. The City of Fayetteville, Arkansas, a municipal corporation, hereinafter referred to as the Buyer, offers to buy, subject to the terms and conditions set forth herein, the following described property: SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION 2. Purchase Price: Subject to the following conditions, the Buyer shall pay for the property at closing, the total and cash payment of One Million Dollars $ 1,000,000.00. 3. Contingent Earnest Money Deposit: The Buyer shall, within two weeks of receipt of this fully executed Contract, tender a check for $10,000 to H. M. Shipp and Norma Lee Shipp, husband and wife, hereinafter referred to as the Seller, as earnest money, which shall apply on the purchase price. This offer of purchase is contingent upon approval of the City Council of the City of Fayetteville, Arkansas, and, if they do not so approve, the earnest money deposit will be returned to the Buyer by the Seller. If title requirements are not fulfilled or the Seller fails to fulfill any obligations under this contract, the earnest money shall be promptly refunded to the Buyer. If the Buyer fails to fulfill his obligations under this contract or after all conditions have been met, the Buyer fails to close this transaction, the earnest money may, at the option of the Seller, become liquidated damages to the Seller. Alternatively, the Seller may assert legal or equitable rights which it may have because of breach of this contract. Seller, at Seller's option, may instruct buyer to retain such Earnest Money Deposit until closing or have said Earnest Money Deposit delivered to a Section 1031 Intermediary for like -kind exchange purposes. 4. Conveyance will be made to the Buyer by general Warranty Deed, except it shall be subject to recorded instruments and easements, if any, which do not materially affect the value of the property. Such conveyance shall include mineral rights owned by the Seller. 5. The Seller shall furnish, at Buyer's cost, a policy of title insurance in the amount of the purchase price from a title insurance company as selected by the Buyer. 6. Seller agrees to allow Buyer, if Buyer so desires, at Buyer's expense, to survey the property. Seller agrees to cure any title problems which may result from any differences between the recorded legal descriptions of the property and the survey description. Said title problems, if any, must be solved prior to closing to the satisfaction of the Buyer and title insurance provider. 7. Taxes and special assessments due on or before closing shall be paid by the Seller. Insurance, general taxes, ad valorem taxes, special assessments and rental payments shall be prorated as of closing. i r OFFER AND ACCEPTANCE CONTRACT Page 2 of 4 8. Like -Kind Exchange: If either party seeks to characterize this sale or purchase of the Property as a like -kind exchange under Section 1031 of the Internal Revenue code of 1986, 26 U.S.C. § 1031 ,the other party shall fully cooperate in taking all actions necessary or advisable to implement the transaction required to qualify for such characterization. 9. The closing date is designated to be sixty (&4 days after approval by the Fayetteville City Council of this offer. If such date of closing falls on a weekend or holiday, it will be held the following working day. 10. Possession of the property shall be delivered to the Buyer on the date of closing. 11. Seller hereby grants permission for the Buyer or its employees or designates to enter the above described property and improvements for the purpose of inspec- tion and/or surveying. 12. All fixtures, improvements and attached equipment are included in the purchase price. 13. Risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is assumed by the Seller. 14. Seller shall disclose to Buyer any and all environmental hazards of which Seller has actual knowledge. 15. This agreement shall be governed by the laws of the State of Arkansas. 16. This agreement, when executed by both the Buyer and the Seller shall contain the entire understanding and agreement of the parties with respect to the matters referred to herein and shall supersede all price or contemporaneous agreements, representations and understanding with respect to such matters, and no oral representations or statements shall be considered a part hereof. 17. This contract expires, if not accepted on or before the 15th day of November, 1998. 18. NOTICE: BUYER ASSERTS AND SELLER HEREBY ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE APPROVAL OF THIS OFFER OF PURCHASE BY THE CITY COUNCIL OF FAYETTEVILLE AND THAT THE FAILURE OF THE COUNCIL TO SO APPROVE WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT NOT LIMITED TO, THE RETURN TO BUYER OF THE $10,000 EARNEST MONEY DEPOSIT. . OFFER AND ACCEPTANCE CONTRACT Page 3 of 4 SELLER: Date: J% -- 10-/p H. W. Ship Date: /1-/C- 9f AGENT OR WITNESS: Date: BUYER: City of Fayetteville, Arkansas, a municipal corporation Date: Fred Hanna, Mayor Date: (SEAL) s OFFER AND ACCEPTANCE CONTRACT Page 4 of 4 EXHIBIT "A" PROPERTY DESCRIPTION The North -half (N%) of the Northwest Quarter (NWY4) of the Southeast Quarter (SE'/4); the North -half (N'/) of the Northeast Quarter (NE'/4) of the Southeast Quarter (SEY4); the South -half (S'/2) of the Southwest Quarter (SWY4) of the Northeast Quarter (NE'/4); the South -half (S'/2) of the North - half (N'/%) of the Southwest Quarter (SWY4) of the Northeast Quarter (NE'/4); the South -half (S%) of the Southeast Quarter (SEY4) of the Northeast Quarter (NEY4); and the South -half (S%) of the North -half (N%) of the Southeast Quarter (SE%) of the Northeast Quarter (NEY4), all in Section Fourteen (14), Township Sixteen (16) North, Range Thirty-one (31) West, containing 100 acres, more or less. SIGNED FOR IDENTIFICATION: SELLER: H. M. Shipp BUYER: The City of Fayetteville, Arkansas, a municipal corporation BY: Fr d Hanna, Mayor �/ F'feather Woodruff, City erk (Seal) OPTION TO PURCHASE REAL ESTATE. For and in consideration of the sum of Twenty Nine Thousand and Ten Dollars ($29,010) paid to the undersigned Broyles Farm Corporation, hereinafter called Seller, the receipt of which is hereby acknowledged, the Seller hereby gives to the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called Buyer, its successors and assigns, the exclusive option to purchase for the total sum of Nine Hundred Sixty Seven Thousand Dollars, ($ 967,000), herein called the purchase price, being exclusive of the consideration set forth hereinabove, on or before the expiration of six months from the date of this option, the following described real estate, to -wit: SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION Buyer shall further have the option to extend the initial option to purchase for an additional six (6) month period, beginning on the date immediately following the expiration of the initial option period and with the payment to Seller of Nineteen Thousand Three Hundred Forty Dollars ($19,340), said payment for the extended option period being due and payable within two weeks of said extension. The consideration first mentioned hereinabove shall be paid to the Seller by the Buyer within thirty (30) days of the date hereof or within thirty (30) days of the date of approval by the Fayetteville City Council, whichever occurs latest. If Buyer decides to exercise this option, written notice shall be given to Seller of Buyer's election to exercise this option on or before the expiration date(s) provided by this Option to Purchase. • Buyer and Seller have previously entered into an Offer and Acceptance Contract, hereinafter referred to as the "O & A Contract", dated November 10, 1998, a copy of which is attached herewith and made a part hereof. The terms and conditions of said O & A Contract shall govern the conveyance of said real estate described except (1) the Contingent Earnest Money Deposit provided for in said O & A Contract shall be paid by the Buyer to the Seller within two weeks of the written notice by the Buyer to exercise the option as provided for with this Option to Purchase agreement, (2) the closing date for the conveyance of said real estate described herein shall occur within ninety (90) days of the written notice by the Buyer to exercise the option provided for herein and (3) Seller and Buyer shall prorate any and all accessed taxes on the above described real estate as of the date of closing for the tax year of such closing.. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands on this 22nd day of December, 199$. SELLERS:Broyles Farm Corporation 122t4 )LAj Marie McChristian, �resident A Na I. • Wilma Cole BUYER: City of Fayetteville, Arkansas Fred anna, Mayor Doris Ann Yates, Secret ry telda Pennington OPTION TO PURCHASE Page 2 EXHIBIT 'A' PROPERTY DESCRIPTION The South Half (S½) of the Northeast Quarter (NEB/o) of the Southeast Quarter (SEA/a), and the Southeast Quarter (SEA/a) of the Southeast Quarter (SEA/a), and the South Half (S'h) of the Northwest Quarter (NWT/a) of the Southeast Quarter (SEY), and the Southwest Quarter (SW¼) of the Southeast Quarter (SE'/a), all in Section Fourteen (14) of Township Sixteen (16) North, Range Thirty-one (31) West of the Fifth Principal Meridian, containing in all one -hundred twenty (120) acres, more or less, LESS AND EXCEPT the following described tract: Beginning at a point 579 feet West of the Southeast corner of the Southeast Quarter of Section 14, Township 16 North, Range 31 west,; thence running West to the Southwest corner of said 40 acre tract; North 209 feet; thence East to a point 209 feet North of the point of beginning; thence South 209 feet to the Point of Beginning, containing 3.50 acres, more or less, Washington County, Arkansas. ♦ �,. 4-.&t'-Yi tti i ri• S�3 'l♦ �.. �° j•��j'. �. 1 OFFER AND ACCEPTANCE CONTRACT 1. The City of Fayetteville, Arkansas, a municipal corporation, hereinafter referred to as the Buyer, offers to buy, subject to the terms and conditions set forth herein, the following described property: SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION 2. Purchase Price: Subject to the following conditions, the Buyer shall pay for the property at closing, the total and cash payment of Nine Hundred Sixty Seven Thousand Dollars ($967,000.00). 3. Contingent Earnest Money Deposit: The Buyer shall, within two weeks of receipt of this fully executed Contract, tender a check for 510,000 to Broyles Farm Corporation, hereinafter referred to as the Seller, as earnest money, which shall apply on the purchase price. This offer of purchase is contingent upon approval of the City Council of the City of Fayetteville, Arkansas, and, if they do not so approve, the earnest money deposit will be returned to the Buyer by the Seller. If title requirements are not fulfilled or the Seller fails to fulfill any obligations under this contract, the earnest money shall be promptly refunded to the Buyer. If the Buyer fails to fulfill his obligations under this contract or after all conditions have been met, the Buyer fails to close this transaction, the earnest money may, at the option of the Seller, become liquidated damages to the Seller. Alternatively, the Seller may assert legal or equitable rights which it may have because of breach of this contract. 4. Conveyance will be made to the Buyer by general Warranty Deed, except it shall be subject to recorded instruments and easements, if any, which do not materially affect the value of the property. Such conveyance shall include mineral rights owned by the Seller. 5. The Seller shall furnish a policy of title insurance in the amount of the purchase price from a title insurance company as selected by the Buyer. Buyer and Seller shall equally share in the cost of such title insurance policy. 6. Seller agrees to allow Buyer, if Buyer so desires, at Buyer's expense, to survey the property. Seller agrees to cure any title problems which may result from any differences between the recorded legal descriptions of the property and the survey description. Said title problems, if any, must be solved prior to closing to the satisfaction of the Buyer and title insurance provider. 7. Taxes and special assessments due on or before closing shall be paid by the Seller. Insurance, general taxes, ad valorem taxes, special assessments and rental payments shall be prorated as of closing. I a OFFER AND ACCEPTANCE CONTRACT Page 2 of 4 8. The closing date is designated to be thirty (30) days after approval of this offer by the Fayetteville City Council. If such date of closing falls on a weekend or holiday, it will be held the following working day. 9. Possession of the property shall be delivered to the Buyer on the date of closing. 10. Seller hereby grants permission for the Buyer or its employees or designates to enter the above described property and improvements for the purpose of inspec- tion and/or surveying. 11. All fixtures, improvements and attached equipment are included in the purchase price. 12. Risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is assumed by the Seller. 13. Seller shall disclose to Buyer any and all environmental hazards of which Seller has actual knowledge. 14. This agreement shall be governed by the laws of the State of Arkansas. 15. This agreement, when executed by both the Buyer and the Seller shall contain the entire understanding and agreement of the parties with respect to the matters referred to herein and shall supersede all price or contemporaneous agreements, representations and understanding with respect to such matters, and no oral representations or statements shall be considered a part hereof. 16. This contract expires, if not accepted on or before the JII& day of November. 1998. 17. NOTICE: BUYER ASSERTS AND SELLER HEREBY ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE APPROVAL OF THIS OFFER OF PURCHASE BY THE CITY COUNCIL OF FAYETTEVILLE AND THAT THE FAILURE OF THE COUNCIL TO SO APPROVE WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT NOT LIMITED TO, THE RETURN TO BUYER OF THE $10,000 EARNEST MONEY DEPOSIT. S a i OFFER AND ACCEPTANCE CONTRACT Page 3 of 4 SELLER: • BROYLES FARM CORPORATION: l%"2Date: // - /6 Marie McChristian, President Date: //- /0- 9� Doris Ann Yates, Secre ar � �� Date: (I-1O-gg Wanda Sue Hammond c`� Date: //-/t�- 9SI T elda Pennington L i22 CiO Date: // /o- L Wilma Cole BUYER: City of Fayetteville, Arkansas, a municipal corporation Date: Fre Hanna, Mayor G Date: ____� Bather Woodruff, City Cle • - OFFER AND ACCEPTANCE CONTRACT Page 4 of 4 EXHIBIT "A" PROPERTY DESCRIPTION Y I The South Half (S%) of the Northeast Quarter (NE'') of the Southeast Quarter (SEY4), and the Southeast Quarter (SEY4) of the Southeast Quarter (SEA), and the South Half (S%) of the Northwest Quarter (NW'/4) of the Southeast Quarter (SE'/<), and the Southwest Quarter (SWY4) of the Southeast Quarter (SE'/4), all in Section Fourteen (14) of Township Sixteen (16) North, Range Thirty-one (31) West of the Fifth Principal Meridian, containing in all one -hundred twenty (120) acres, more or less, LESS AND EXCEPT the following described tract: Beginning at a point 579 feet West of the Southeast corner of the Southeast Quarter of Section 14, Township 16 North, Range 31 west,; thence running West to the Southwest corner of said 40 acre tract; North 209 feet; thence East to a point 209 feet North of the point of beginning; thence South 209 feet to the Point of Beginning, containing 3.50 acres, more or less, Washington County, Arkansas. SIGNED FOR IDENTIFICATION: SELLER: Broyles Farm Corporation: )2..✓ :� Marie McChristian, President BUYER: The City of Fayetteville, Arkansas, a municipal corporation BY: Fred Hanna, Mayor ATTEST: .. I 4"it '7 II I A. SETTLEMENT STATEMENT B. TYPE OF LOAN 1. 0 FHA 2. 0 FMHA 3. ❑ CONV.UNINS. 4. ❑ VA 5. ❑ CONV.INS. 6. File Number 7. Loan Number 8. Mortgage Insurance Case Number C. NOTE: This form Is Mnished to give you Statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked'(p.o.c.)' were paid outside the closing; they are shown here for Informational purposes and are not Included in the totals. D. NAME AND ADDRESS OF BUYER City of Fayetteville, Arkansas 113W. Mountain Street Fayetteville, AR 72701 E. NAME AND ADDRESS OF SEVER Wanda Sue Hammond,(surviving spouse of Calvin R. Hammond) 696 S. Broyles Ave. Fayetteville, AR 72701 F. NAME AND ADDRESS OF LENDER NONE G. PROPERTY LOCATION 696 S. Broyles Ave., Fayetteville, AR 72701 3.5 Acres; Pt SE -SE -14-16-31: 001-11820-000 & 001- 1 1821-000 H. SETTLEMENT AGENT City of Fayetteville Land Agent PLACE OF SETTLEMENT McGoodwin, Williams & Yates, Inc., 909 Rolling Hills Drive Fayetteville, AR 72703 1. SETTLEMENT DATE 02-1-99 DISBURSEMENT DATE 02-1-99 J. SUMMARY OF BUYER'S TRANSACTION K. SUMMARY OF SELLER'S TRANSACTION 100, GROSS AMOUNT DUE FROM BUYER 400. GROSS AMOUNT DUE TO SELLER 101. Contract sales price 120.000,00 401. Contract sales price $ 120,000.00 102. Personal Property 402. Personal Property 103. Settlement charges to buyer (line 1400) 238.50 403. 104. 404. 105. 405. ADJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE ADJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE 108. City/Town taxes to 406. Clty/Town taxes to 107. County taxes to 407. County taxes to 108. Assessments to 408. Assessments to 109. 409. 110. 410. 111. 411. 112. 412. 120. GROSS AMOUNT DUE FROM BUYER $ 120,238.50 420. GROSS AMOUNT DUE TO SELLER $ 120,000.00 200. AMOUNTS PAID BY OR IN BEHALF OF BUYER 500. REDUCTIONS IN AMOUNT DUE TO SELLER 201. Deposit dreames: money $ 5,000.00 501. Excess Deposit (see Instructions) 202. Principal amount of now loan(s) 502. Settlement charges to seller (line 1400) $ 784.51 203. Existing loan(s) taken subject to 503. Existing loan(S) taken subject to 204. Appiicntlon deposit 504. Payoff of first mortgage loan 205. Second lion mortgage 505. Payoff of second mortgage loan Title n . Prem.: Bronsontr t $ 465.00 508. Earnest Money Deposit $ 5,000.00 207 Recording Fee $ 6.00 507. 208. 508. 209. 509. ADJUSTMENTS FOR ITEMS UNPAID BY SELLER ADJUSTMENTS FOR ITEMS UNPAID BY SELLER 210. City/Town taxes to 510. City/Town taxes to 211.ntvtaxes 1-1-99 2-1-99 $ 46.88 511.counlvtoxes 1-1-99 to 2-1-99 $ 46.88 212. Assessments to 512. Assessments to 213. 513. 214. County T1-1-98 12-31-98 $ 552.01 514. 215. 515. 218. 516. 217. 517. 218. 518. 219. 519. PAID BY FOR BUYER 6,069.89 520. TOTAL REDUCTION AMOUNT DUE SELLER 5,831.39 ETTLEMENT FROM OR TO BUYER _ 600. CASH AT SETTLEMENT TO OR FROM SELLER L220.TOTAL ue'7rom tiuyar(Iliie't20) S 120,238.50 801. Gross amount due to seller (line 420) $ 120,000.00 aid by/for buyer (line 220) L W2. Less reduction amount due seller (line 52O) FROM BUYER $ 114,168.61 303. CASH O TO SELLER $ 114,168.61 I have carefully reviewed the above Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the above Settlement Statement. City of Fayetteville, Arkansas Wanda Sue Hammond (surviving spouse of Calvin R. Hammond) 4�.r111 vPT1�ss� uyers e To the best of my knowledge, the above Settlement Statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as a part of this transaction_ Settlement Agent ate A TtPage 2 L. &-i U FMENT CHARGES PAID FROM BUYER'S FUNDS AT SETTLEMENT PAID FROM SELLER'S FUNDS AT SETTLEMENT 700. TOTAL SALES/BROKER'S COMMISSION (based on price) Division of commission (line 700) as follows: $ © % = 701.5 to ......_ _. _ .:.. . 702. $ ro 703. Commission id at settlement 704. 800. ITEMS PAYABLE IN CONNECTION WITH LOAN 801. Loan Origination Fee % 802. Loan Discount % 803. Appraisal Fee to 804. Credit Report 10 805. Lender's Inspection Fee 808. VA Funding Fee to Assumption Fee . ITEMS REQUIRED BY LENDER ID IN ADVANCE nterest from to0 S /day Mortago o Insurance Premium for NOOO.iLENDER azard Insurance Premium for vytto 0. RESERVES DEPOSITED WITH FOR Hazard Insurance /M. Mortago Insurance Inc. 1003. CIty Property Texas mos. @$ Inc. 1004. County PTtqertylaxes mos.©$ $ /me. 1005. Annual Assessn ants mos. $ mo. 1008. mos.@$ $ Inc. 1007. mos.@$ mo. 1008. mot @$ $ /mo. 1100. TITLE CHARGES 1101. Settlement or Closing Fee to 1102. Abstractor TM9 Search to 1103. Tide Fxaminadon to 1104. Tide Insurance Binder to 1105. Document Preparation to 1106. Notary Fees to 1107. Attorneys roes to Includes above Items No.: 1108. nee Insurance S465.0U to Bronson Abstract $ 232.50 $ 232.50 Includes above Itoms 1109. Lenders Coverage $ 1110. Owner's Covers $ 1111. 1112. 1113. 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 6.00 1274. 1205. 1300. ADDITIONAL SETTLEMENT CHARGES 1301. Slrvey to 1302. Pest ins ion to 1. 1998 County taxes: _ $ 58.98 1 ()1-11821.000 $ 493.03 1305. 238.50 •784.51 _.1400.TOTAL,SETTLEMENT, HARGESjenter_on.line 103 $ection.J.and line 502 Section K The Undersigned Acknowledges Receipt of This Settlen ant Statement and Agrees to the Correctness Thereof. City of Fayetteville, Arkansas Wanda Sue Hammond uy Seller uy 1 r bate NT ett• ,ti - ✓ ..v Ty o. ji, ',-i H.,' .'.. 1t: '.c •9X ,�,;»!. ,, ,, DrvlSionof Vital Records 'r.� 4 m '� '" ' w,e v,r 1s r, w 3: '? A. r- OF DEATH IENT� ,.,•" a. w" .CERTIFICATE . IONS `. 1'. DECEDENTS NAME (First Middle Last).' ryu ✓y i :s „ ;j f .: ,. ,; '. L' SEX p 3. DATE OF DEATH (MONK, Day. Year) •y BOOK 12 ,_' f•;ti ^� ' ., r '. # ,..aF CALVIN RICHARD f'«HAMMOND- ;: '�' Male":�'• - December 15 1998 'n)' t•,�\�E lj . ''-. a SOCIAL SECURRM NUMBER 5a.AGE—Last Birthday Sb. UNDER'I YEAR 5c. UNDER I DAY :'; 6. DATE OF. BIRTH ie, 7. BIRTHPLACE (CBy and Slate or 'I ` ,i .'. ,":'.. ..(Years) :' ••.m/ Months I -Days. Hours I Minutes :^'.- (Month, Day, Year)',Foreign Country) '15' 430-44-3510 68• ;, JanTiar 1930 Fayetteville, Arkan t • e. WAS DECEDENTEVER IN U.S. _ > T - ,: '( Y/ 9a. PLACE -OF DEATH (Check only one) • ARMED FORCES? ' } H PITAL: > - OTHER' . .. (Yes or No) 'Yes 'r Rllnpalienl fl ER%Outpalienl (i DOA _fl Nursing Home (l Residence flOther (Specify) ,j \ 9b. FACILITY NAME (II riot institution, give street and number) -' / ,. 9c CITY TOWN, OR LOCATION OF DEATH' - 9d. COUNTY OF DEATH ?�<t ` j� '• Washington ton Re ional"Medical Ceiter .'rp.''Fa etteville.- Washington 0 N),• 10. MARITAL STATUS —Married 11 SURVIVING SPOUSE a .* 12a DECEDENT'SUSUALOCCUPATION';- :.I 12b.KINO OF BUSINESS/INDUST ••:' ,o : Never Mauled. Widowed'. - (I1 wife, give maiden name '. � (Give kind of wink Cone during most of work ng fife. ?SS Divorced(Sperry) - - I Do riot use reused) - q - . \ :R Married Wanda Sue Broyles -^>Brick'La Layer , Construction 13ar RESIDENCE — STATE 13b., COUNTY " 1ft 13c CITY, TOWN OR LOCATION .' 13d. STREET AND NUMBER . . Arkansas'% shitt' �> on�t' ^." -^ Faetteville- "'` ` ' x'696 South Broyles Avenue /4 13e. INSIDE CITY 131, ZIP CODE 14. WAS DECEDENT OF HISPANIC ORIGIN?, 15. RACE American Indian ` 16. DECEDENT'S EDUCATION •„ LIMITS? (Specify No or Yes LIf yes. specify Cuban. if Bleak cantle etc. L. (Specify only highest grade completed) L : (Yes or No) seeKan; Puerto Rican. etc.) IXNo - ri Yes r (Specr'y) - L SPenN: "> ,.- • `' .k . :' ElementarytSecontlary (012) College 11� or 5 -' x No 72704 / a ,. white 1]. FATHERS NAME (First, Middle. Lasff ` ; > •' ` ', - 18. MOTHER'S NAME (First, Middle. Maiden Surname)' - , Clarence Alec Hariond ' " Lila Venus Barker Ayrly „'' ,.t-. La' 19a. INFORMANTS NAME (Type/Print) - y W „. n 19b MAILING ADDRESS (Sheet and Number or Rural Route Number, Ciry or Town. Stare. Zip Code) tls .. Wanda Sue Hamrrond '' 696 South.Bro les Avenue, Fayetteville, Arkansas 72704 ,,, , .` }, 1 v'rtI 20a. METHOD OF DISPOSITION r � ' dJ v ^ -• I y.«SD ./, IXI Burial fl Cremation fl Remove/ from State fl Donation. . fl Other (Specrly): yi)!, • • . 20b. DATE OF DISPOSITION (Month, Day. Year) R 20c. PLACE OF DISPOSITION (Name of cemetery. cremarory, or 20d. LOCATION— City or Town. State other/ace) i '1: '-' December 18, 1998 - Farmington Cemetery Farmington, Arkansas N \• F 21 a. SIGNATURE OF EMBALMER 21b: LICENSE NUMBER 22a. NAME AND ADDRESS OF FUNERAL HOME 220. LICENSE NUMBEF rs MQore's Chapel, P. 0. BoxY'' t2075/4'' t ("Fa etteville", Arkansas 72702 18 . 23. PART 1. Enter the diseases, injuries. or complications That caused the death. Do not enter the mode of dylrrg, such as cardiac or respiratory j Approximate• • I „ arrest, shock, or heart failure. List only one cause on each line 4 ., Interval Between 4,{ `'' 3 ". roc ✓nY .. - .. I Onset and Death t',1 V L ( C `r..v O (Final disease or condition —► a. Irji�Tr. resulting in death) - DUE TO (OR A CONSEQUENCE OF):. 1• �It'1 Al • . - 1 .1 Sequentially list eondNons, b. - it\u I it any. leading to immediate •DUE TO (OR AS A CONSEQUENCE OF): I • - cause. Enter UNDERLYING -• - j %IIA ii,)(•kv CAUSE (Disease of Injury Cr f� that initialed events DUE TO (OR AS A CONSEQUENCE OF): . • I resulting in deaN)LAST : , •: — ,.. PART It. Other significant conditions contributing to death but not resulting in the underlying cause given in Part I. 24, WAS AN AUTOPSY 25, WERE AUTOPSY FINDINGS ii " PERFORMED? AVAILABLE PRIOR TO 1t " • - `' •(Yes or No) . COMPLETION OF CAUSE %,Z- - ". OF DEATH? (Yes or No) ] I . " ..:. ., Y.. no ,t r 14 c c ' 26. MANNER OF DEATH '- . f r^ " ^' * 1 27. DATE OF INJURY 28, TIME Of 29. INJURY AT WORK? 'It� . / ,c," '' I: , (Month. Day. Year) INJURY , (Yes or Nol - � i alum fJ Accident f 1 Homicide • •, flSuicide I l QOWd not be, 1 fl Pending• M Determined Invesllgatron - r£. \.\A 30. DESCRIBE HOW INJURY OCCURRED ,:: ,. •. i •' 31. PLACE OF INJURY — At home. /arm, sheet taclory, Slice 32. LOCATION (Sheet and -Number Or Rural Rout Number, City or Town. State)• ll buildi n9. ¢I0. ($pBCity) ••� •• r A: ^ Y. . vi4 •IrG: II•. - 33. TIME OF DEATH ' 34. DATE PRONOUNCED DEAD (Month, Day, Year) - s ' 35. WAS CASE REFERRED TO MEDICAL EXAMINERnCORONER? .. tl' iI i•i�u(} a -'' ,e . _ (Yesar No) .' . 2:50 `-.December'-15, 1998 r.` no .AM •\I\Tf l W.4 te.1 36. MEDICAL EXAMINER On the basis Of examination and/or imesl'getion. in my a Van. death occurred at the time. 37. DATE SIGNED .�)1 r• f, or CORONER Only dale and place and due to the cause(sl and manner as staled.' _ (Month. Day. Year) •„!'I Signatweend Tito : "' '' 38. CERTIFYING PHYSICIAN/ ho best of my knowledge, death occured al the time. date. and place, and due to the • 39. DATE SIGNED • REGISTERED NURSE (Hospice y) " ca e(s) and'manner as slated. ;.`" s ` - - (Month. Qsy. Veer) y ' t h it .$l9na(ure and Title ►``. 7/[s 40, NAME AND ADDRESS OF PERSON HO COM TED CAUSE OF DEATH (Type/Print) .. . Dr. .Jose h T. Beck 22West Colt S uare Fa etteville, Arkansas 72703 41. REGISTRARS SIGNATURE i ' ' ', - 42 DATE FILED (Month,.Da)f,, Yea') r.,6958VR.2 O/1 vl' y t�__A'b+, "�.•t`e�t: Iv3{r �", ea>K.i::\.C'\q A' .; >rQ+ j ,pdY'n ",.Tsr ''^7' kf'L;'�T' '°'� U.. r :a+.i'..,.a" )', ..v:'.rit �3 `. t rte' rCs u ^ - W: r r.•. 1 •n SIJ { +'N " ' ':!•iCY i i/a i j °� . O v.f ii {y T ) N . h a , ,! . t • C Y dr' I) ♦,. Y ' ^ \�1f V•. RTMENj "THIS IS TO CERTIFY THAT;THE ABOVE IS A TRUE AND CORRECT COPY OF THE CERTIFICATE ON - P. 9`:i ��e� ••.., O.0 f+fA' FILE IN THE ARKANSAS DEPARTMENT OF, HEALTH ' ../ h J , h h,ri\t 611 ia 1 �' ,. _ �^' +., ti« '; a7 .s•' „>v' • yrl f� r i' ! c' m A>3�t ,\ ./. ')•'1n /1. / < , �' ,,; ,, A • . ' -,y��/ , >< ,SEA r, /:.. n DEC 18 1998 wuiam G. Adams' fl rHjr!5 (� tL6 tr i`' State Registrar y/ _ •".IS ) iA ,'Y" BY.. ♦ S,✓ 0498029 ,(I; ergo �(�C ., F . i.' lff,Y / .,qi 1�r y77LE'RDt1` '•' VOID AND INVALID, 00 NOT ACCEPT UNLESS 1 :' A REPRODUCTION OF THIS DOCUMENT RENDERS IT . /'� -WARNING. EMBOSSED SEAL'OF. THE ARKANSAS DEPARTMENT OF HEALTH IS PRESENT. IT IS ILLEGAL TO • rs♦ '[ '.' +t 'ALTER OR COUNTERFEIT TMI$OOCUM_NT. I� \ .: , ,.. � "_ Y!�., { ', �'��•' / +` !� ��y4, ~ I gV �C,�% �i,.Yf �4PP+>�^ Ii '✓ �l tz� / �"tr4F. . j![(• srs. yi :nnGrr...�,Iro- • Ar.. ..�,I..TG. '9 .'' 'Z? .". , :Q�:...I,YwN/ITy.. r/!`A1-.�`wV�/ K THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER. TAILS is WATERMARKED PAPER. DO NOT ACCEPT WITHOUT FIRST _ T I r I. I .f Project: West Waste Water Treatment Plant Parcel No. 001-11820-000 iParcel No. 001-11821-000 Tract No. 6 WARRANTY DEED BE IT KNOWN BY THESE PRESENTS: THAT I, Wanda Sue Hammond, surviving spouse of Calvin R. Hammond, hereinafter called GRANTOR, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: FILED F0R'PE`;0RD '99 FEB 1 P,F1 10 12 IIASHINGT0N CO AR K. HARNESS A part of the Southeast Quarter (SEY4) of the Southeast Quarter (SEY4) of Section Fourteen (14) in Township Sixteen (16) North of Range Thirty-one (31) West of the Fifth Principal Meridian, more particularly described as follows: Beginning at a point 579 feet West of the Southeast corner of the Southeast Quarter of said 40 acres tract and running thence West 741 feet, more or less, to the Southwest corner of said 40 acre tract; thence North 209 feet; thence East 741 feet, more or less, to a point 209 feet North of the point of beginning; thence South 209 feet to the Point of Beginning, containing 3.5 acres, more or less, Washington County, Arkansas TO HAVE AND TO HOLD the said lands and appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantor, hereby covenants that it is lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantor will forever warrant and defend the title to the said lands against all legal claims whatever. WITNESS the execution hereof on this 1st day of February, 1999. ACKNOWLEDGMENT STATE OF ARKANSAS ss. COUNTY OF WASHINGTON BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared Wanda Sue Hammond, surviving spouse of Calvin R. Hammond, to me well known as the person who executed the foregoing document, and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this / day d11II19%Lsu b.ci 1999. "OFFICIAL SEAL" Elizabeth M. Watson nary Publ ;.. Stale. of Arkansas till!-' Notary Public 990009159 -'-` xq �4Tk :'✓ J L # 5•f _„ypy r Division of Vital Records a s i .> ,- , y '/ !- OA ro/F /. !PI ,,''' �.+ vb O3 .; if• ti ♦ n Ybo • ': !• p' % i w > w. ,, '^ ;CERTIFICATE OF DEATH` :: 4•r +'J' NKl( ,. its ION$ 1. DECEDENT'$ NAME (First Middle. Lea .,V v ir, ; J �A ,2 4;, .< ' 2 SEX . 3.' DATE OF DEATH (Month, Day, Year) L7- BOON s ;� '^' ,V ' �" +' ,.ro`�' CALVIN, 'RICHARD - HAMMOND '�� '- _ ` x -:MMa1e -- ''December 15, 1998 :.,C� a��. ^a+4 �,p4 Ji• 4 SOCIAL SECURITY -NUMBER 5a AGE -Last Birthday "' 5b, UNDER•1 YEAR Sc. UNDER t.DAV ,orr, 6 DATE.OF. BIRTH ^ r,^ ' Day. Year) _Z BIRTHPLACE (city and State ar -- Foreign ' ) •+, •d+x < a ears 4 - V ' Months I'' -Dos . Hours Minutes r (Month, Count ) 430-44-3510 �'Y 68" ;•1 =: Janiiar '15 1930 Fa etteville Arkan e r ' y 8. WAS DECEDENT EVER IN U.S *+ ' r ti :' 9a. PLACE OF DEATH (Check ony one) .' '. - .• £% . ARMED FORCES? •,— .• HOSPITAL: q .. ♦e TH -_ ' .. .. • (Yes or No) --Yes • /:: L] Inpati¢nl , n EPoQutpalient f 180A .. • : Fl Nursing Home (l R¢sidence Fl Other (Specify) 7 `• 90. FACILITY NAME (If not institution, give street antl nu .: 9c CITY TONN, LOCATION OF DEATH 9d. COUNTY OF DEATH \ = Washington '' 1gRe ional`Medical"Center ' . :='.Fa etteville'-" Washington �, r70. MARITAL STATUS -Hants =' 11 SURVIVING SPOUSE a, , + 1'a DECEDENT'S USUAL OCCUPATION 1120.KIND OF BUSINESS9NDU5T pfi `{ i:th?' ,' 1 i : Never Mams. Widowed ` - (II wife give maiden name) ', " (Give kind of work done during most of working life •� p.•. toff I Divorced (Speciry) •,.. ? ". Do not use retired.) ;- " .. ; .. ' Q> I I. '• i Ili•:% , Y '. Married Wanda Sue'Bro lesFBrick La er.' Construction 13ai RESIDENCE _ STATE 13b. COUNTY " -s' 13c,LITY, TOWN, OR LOCATION . „;yam-,� 13d. STREET AND NUMBER ' !{ .ILq ..�• ( ,, . vArkansas'v Washin`ton r rµ_: Ha t r .•, Fa etteville 696"South Bro les"Avenue 13o. INSIDE CITY. 131. ZIP CODE - l4„WAS DECEDENT OF HISPANIC ORIGIN? ii. RACE L American Indian,' tfi. DECEDENT'S EDUCATION LIMITS+ ° ' '(Specify No or Yes If yes. speury Cuban, < Black White etc :' (Specify orey highest grade completed) I (Yes a N0) - r Mexican. Puerto Rican etc.), (XNo'.> II Yes :' spec :b, '. (Specy) '. Elementary/Sewndary(O-121 Cdlegeil4or5 ` f a y' ^` . �: - J:_ No 72704 a white '•••' 10 3 w"' ..•, kt A FATHERS NAME (First. Middle. Last), . , y ; ;'.' ." i -'-T -c ,Y - 18 MOTHER'S NAME (Frrsr. Middle. Maiden Surname) ' ar^e • W. Y l •i' ' nn, •'S fi•..♦ 'kd �: Clarence Alec Ham_ on3 t Lila• T 'Y1 a a Ierus. Ba. c_r 198. INFORMANTS NAME pyperPnn J -, , 191 MAILING ADDRESS (Street and Number or Rural Route Number. Gry or Town. State. Zip Code) . • -- QglTy d , ' 'Wanda SueHammonr 696 South Broyles Avenue, Fayetteville, Arkansas 72704 „ 4 rt ,i 2Da. METHOD OF DISPOSITION s % r I:r ;• `Leib '.,, ' K. - ail Burial fl cremation fl Removal from State a Td Donation:. L FI Other (Specify)' - "4)� • 20b. DATE OF DISPOSITION (Month, Day, Year) - l . 20c. PLACE OF DISPOSITION (Name of cemetery. crematory, or ' 20d. LOCATION — CM or Town, State �//-fie• ' -` other face)- o/. .„ .. .•, December 18;=1998 i1998't. armington Cemetery. Farmington, Arkansas \< 's .21a. SIGNATURE OF EMBALMER 'Js >-21b.,LICENSE NUMBER 22a NAME AND ADDRESS OF FUNERAL HOME - 22b. LICENSE NUMBEF Chapel, P. 0. Box Y .d' ,'.Moores . .v. a'' 2075 g ,. 'Fa etteville,'Arkansas 72702 18 y. 23, PART I. Enter the diseases, injuries. or complications That caused the death. Do not enter the mode of dying. such as cardiac or. respiratory I Approximate arrest, shock, or heart failure. List only one cause on each tine: •° * I Interval Between 6 i' ♦ ♦ i `} >%fl ' t/.a • .. I Onset and Death IMMEDIATE CAUSE l / �/'• /t e t j"111" ♦.d (//-1 / ''4 —� (Final dis¢ase or wndilion _0. a ''- l/ -, resulting in death) d.q -;ir ✓,. • q DUE TO (ORCONSEQUENCE OFL :': 'iii ,%8'A Sequentially list conditions. '. b. - , .. . - ^• ( vurY II any, leading to immediate DUE TO (OR AS A CONSEQUENCE OF): I �CRIk cause. Enter UNDERLYING - - .. -,. CAUSE (Disease or injury c "' I ' Thal Initiated events .. DUE TO (OR AS A CONSEQUENCE OF): Sri• resulting in death) LAST i • a PART 11. Other significant conditions conlributmg to death but not resulting in he underlying cause given in Pad I. 24. WAS AN AUTOPSY 25. WERE AUTOPSY FINDINGS - PERFORMED? AVAILABLE PRIOR TO ' (Yes or No) COMPLETION OF CAUSE J$fi z ' •• - OF DEATH?(Yes or No) / • no 26. MANNER OF DEATH „*-� : -:bgi ', { I s„ < ^• ` - ,• # 2L DATE OF INJURY 28. TIME OF 29 INJURY AT WORK? f' :o'•?I` r i .., '1' • va ' ``j'3 , . -^ (Month, DaY. Veer) INJURY ; , (Yes o, No) " 'H' - 1 - lk, atwal ❑ Acdden1 f l Hamicid0 n Sw,r]de I l Could not be Fl Per ng M '; ,-i ' ♦ i s - fDetermir,ed - Investigation , ' '^T`I 30. DESCRIBE HON INJURY OCCURRED - A' - •< -;t L y. 31. PLACE OF INJURY — Al home. )arm, :beet ladory odk:e ' 32 LOCATION (Street and Number or Rural Route Number, Cny or Town. Slate) .- • .` building. etc. (Specify) i pp 33. TIME OF DEATH " 34. DATE PRONOUNCED DEAD (Month, Day. Year) , ', '. •. 35. WAS CASE REFERRED TO MEDICAL EXAMINER/CORONER??'` No) - 2:50 AM .... yy I 'Y December 15, 1998 :'- (Yes or no ..•.., m•,ry' '' � 3G MEDICAL EXAMINER � � On the basrs oI examination e,gPor mvesligatk,p, in my opinion, death occurred at the time, - Y. DATE SIGNED H•(.r+�' ,A�i11 or CORONER Only y date and place and due to the cause(s) and manner as stated. - .. - - (Month, Day. Year) $ignaWre site Trflo ► ! .• .":.. � � - 38. CERTIFYING PHYSICIAN/ •he best of my knowledge, death occurs at the time, dale, and place, and due 10 the - 39. DATE SIGNED REGISTERED NURSE (Hospice y) -I pa e(s) and- manner as slated. - .. ' .- '' •fi., (Monti, y, Year) +• �, .?y , q .:,�•• �l ...:� _.. Sr'gnafure one Trt►ri>, r L%r_ -I: , _ 40. NAME AND ADDRESS OF PERSON HO COM EO CAUSE OF DEATH (TypelPnnq. . / - - .' . .g� Dr. Jose h T. Beck' 22 `West Colt Square,': Faetteville, Arkansas 72703 41. REGISTRARS SIGNATURE • 'ry - . 42. DATE FILED (Monty. Day, YYear) WB1[1 111 ( ql ilk-a`•r} I`(♦�'{�"Y+rrAtl]ingRy�1r \� .��SV .',IYMi yyiw{f, ny1 {.r'lt /�, fJ>`�n(�-i' •'rr '.,ttN '. r f1: M y y�ihF ,C. rl , r, .. r1 { `$. > Y'/ ifi .,•r• '••'[\ it >... ;v �. � �v an� , 1,.Y R ,'V,/ M w (St^ ;,, fi /, a. ,M .•u�•♦ M',!• , •i^{, ry�`i+` � •�gyrJ4� r�:t ' .i� ; *i 4 ,"Y. > rt' -,v, ["i i"' iyY G'� M.� CL,}i •! „ • �l'�i. It f �yd 4 A ♦ •• . Y�: ti li-•••• ,- OJf AY y V •- .• , r• ,? �/� T 5 S Aasn'tt : 97,'f ✓.1 I y„ HIS IS TO CERTIFY THAT THE ABOVE IS A TRUE AND CORRECT COPY OF THE CERTIFICATE ON ✓ "- D�Ir t� .'FILE IN THE ARKANSAS DEPARTMENT OFHEALTH ':, .' •.r , s 1. y _ — y ~r `1/„!• Y"-� � �R . . /��ap�,G')%1rJ.'y t' /nNly �y `. y/yi//. �/ ��J �t//- D}\.l '� 4 �J�/l./ 2 dam / z . ri:-/' t ,• (�S q 8 .j (�(�Qe M' Y>,SEAL i.�e, 4"� p f - <. ' - �YS' y4/// < . 'Mlliam G. Adams' O lr '1 IJJIJ 4°e ., /I '.\ '.ia ;.:.. - State Registrar - - .-' (hart/Y „,;a,'< tc• �4980 i ^:.ril x` (I �ti, �PQ't,b2 .•:_.«.,t.,, k -. - ,iLE.ROt ' ; v ,`,: + " A REPRODUCTION OF THIS DOCUMENT RENDERS IT VOID AND INVALID, DO NOT ACCEPT UNLESS• I (y�' ARKANSAS DEPARTMENT OF HEALTH IS PRESENT. IT Is ILLEGAL TO WARNING 1 i t { '1 " y,.y ALTER OR COUNTERFEIT THIS DOCUMENT., ,'%. - VR-113 °ryrl .'h ��.�.�-�� � ,.'kTti 'io'". ����.���1iy���;f•'' p� �y.•a� � ^ `Od'Yi '_'?, `� ,C..�..�-+�, ��� �� ���s'-��.a•'rs„ ��ry'2t,S� Y•�R 'yAY R. �~. �... •_1T.� � vA••Aa' y�:'.1Ty .�Y :Ar. Y�••'•ZL. wi••TL.. �. -. '.tZ nh,.i,i. • ... r- ..... • ..IF. I iJIil kili SELLER'S AFFIDAVIT -. • I 1 State of ARKANSAS County of WASHINGTON The undersigned, referred to as Seller, whether one or more, being first duly sworn on oath the Seller is the owner of the following described lands, situated in WASHINGTON County, ARKANSAS, To -wit: DESCRIPTION BEING THE SAME AS SHOWN ON EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF. Seller further states the following facts are true: 1. There is no adverse occupant of the property described above. 2. Seller and those under whom Seller claims title, have been in peaceful possession of said lands for the past seven (7) years, and to Seller's knowledge, there does not exist any claim of adverse possession on the above described lands or parts thereof. 3. There are no unrecorded options to purchase, sales contracts or lease agreements outstanding, which affects the property described above. 4. There have been no improvements made to the property described above during the past 130 days for which a mechanics' and materials' lien may be filed. 5. No appliances have been installed in the property described above on deferred payments which are unpaid for. 6. The property described above is not traversed by any roadways or easements except those shown on record. 7. There are no delinquent assessments due on the resident's association on the property describe above, if applicable. 8. That no money whatsoever is owed on the subject property to any person, firm, or corporation other than the following NONE 9. There are no outstanding judgements against Seller as a result of legal action to include, but not limited to, tax liens, divorce, bankruptcy or foreclosure. 10. That the Seller, being the surviving spouse of Calvin R. Hammond, is severalty vested in the title to and ownership of said property by virtue of the tenancy of the entirety, under which said property was acquired. Witness the hand and seal of the undersigned on this .JsL. day of February , 1999 Subscribed and sworn to before me, a Notary Public on this l day c1999. LNotary AL SEAL" M. Watson State of Arkans� f Washington on Expo My commission Expires: /2/3�Zoo7 ',-.�... .� . — •— -�- nowt.-.. _ . INT `fp, r. i w ly: µk'.3 ... .. w• .}Y ` Division of Vital Records . L« Tv; n♦ ' ^ ^- , t c • • tt� ,' aft • ,- ,,sf y, s a cup 'k''e - ra• -_ — .. .., Y.b,^ -�`9 u' -• - EN74 v }._ i J w s a f INK fa} i' ,'. �- ' x': �. M;• ,CERTIFICATEOF DEATH , ;,° ; .4 •,. ' , ld,l os ONSX DECEDENTS NAME (First, Middle, Lear) 3 "w, ; ' .pe .^' 21SE% • 3 DATE OF DEATH (Month, Day, Year) .21q BOOK ,2r - r rwv .'M. e ., �' •'� '- }' r T }v.•. --�°'CALVIN •R ICHARD�r•:HAMMOND -' `':a^Male'' December ' 1998 ;y ` a y4 a SOCIAL SECURITY NUMBER SaAGE - Last Birthday Sb UNDER' 'YEAR 5c UNDER t DAY :.6 ,DATE OF BIRTH ,.- 7. BIRTHPLACE (City and Stare or ^ ', - ^ '„v.•" • ¢'' • • } (Years) Months I °, Days Hosts t ` Minutes Y,";, (Month. Day, Veary.:„>`, .A Foreign Country) `:;` ' x 430=44-3510 ] 68 ; " r1- '. Januar '15 1930 Fayetteville, Arkan • ..o :. 6. WAS DECEDENT. EVER IN U.S. 7' ke @. '' y =* ' 9a. PLACE OF DEATH (Check only one) 'II '-L . ARMED FORCES? .+ HOSPITAL . OTHER: z' (Yes or No) , Yes .. ,'-' `X1 Inpatient fl ERiOutpattent fl DOA g; " ^_ D Nursing Home 1) Residence fl Other (Specify) ` } • :�>• • ' Be.FACILITY NAME (if no: inshlution, give street and number) '9c CITY, TOWN, OR LOCATION OF DEATH 9d. COUNTY OF DEATH A'2+ ,, Washington Re ional'Medical'Center " " :e lio r etteville. ,Washington r; ,y, ,,,t 10 MARITAL STATUS— Married ? II. SURVIVING SPOUSE 4( ` ` • �,Ty x 12a DECEDENTS USUAL OCCUPATION 12b.KIND OF BUSMESS'INDUST l�11 �•� * f- ; Never Married, Widowed,• r ((I wife, give maiden name) - `' ; (Give kind of work done during most al working file Drvwcetl (SPeciN) '. {w 4; q -. y. -. Do not use retired } >' -^ Y -'a• : ': Married Wanda Sue Bro les . °rye ..:Brick 'Layer Construction 4 13a.' RESIDENCE STATE 13b. COUNTY " 13c CITY. TOWN OR LOCATION -•13tl STREET AND NUMBER i. +� ZA.- t'-6' rr N Y '`I�Arkansas ._N-. Y' Washin ton' i n, `+`': *'Fa -` cur'. -� . :'696 South Bro les Avenue etteville Tj 13e. CITY- 131. ZIP CODE ' `14 WAS DECEDENT OF HISPANIC ORIGIN?, 15. RACE I -American Indian.. : 16. DECEDENTS EDUCATION S •INSIDE (Specify No or Yes — lfyesf specify Cuban; :Black While etc :y (Specify only highest grade completed) M "(Yes or No) ` Mexican, Puerto R'nan etc.) c' No "„ Ii Vee '" f$peci'y) --. 4 - • . Elementary/Secondary(O12) College t-4 a 5 - v t.•E No -'^' 72704 i 'white ; ``: 10 • 17 FATHERS NAME First. Middle, Last n - \ ,I 1` „ I t kI k 18 MOTHER'S NAME (First. Middle. Maiden Surname)' _ r. `i :( _ _ e 4$ K:3 Clarence Alec Hammond Lila Venus Barker 19a. INFORMANT'S NAME (7ype/Pnnt) F 19b. MAILING ADDRESS(Street and Number or Aural Route Number. City or town, State. Zip Code) � , e a •`Wandaa Sue'°Hammo_ nd ' w , r /, > 696 Sou'th.Brorles Avenue,- Fayetteville,' Arkansas 72704 1.1t p via __ , .r 20a. METHOD OF DISPOSITION ♦+j-': u,_ ., r ' .'i�.. � , Burfaf . fi cremarien n Removal from State.- Fl Donation } PI Other (SPacdy) T" ' .' ytitj • 20b. DATE OF DISPOSITION (Month, Day. Year); . ' ,q, 20c. PLACE OF DISPOSITION (Name or cemetery. crematory, or 20d. LOCATION — City or Town, State .. .. e' other lace! r{. zs: a. , December 18, 1998 :: Farmington Cemetery : Farmington, Arkansas :' . .Z 1 1`� 21a. SIGNATURE OF EMBALMER . • - ',, 21b. LICENSE NUMBER 22a -:-NAME AND ADDRESS OF FUNERAL HOME -- 22b. LICENSE NUMBE ;13S y; Moore's Chapel, P.O. Box Y 2075 t `� Fa etteille,' Arkansas 72702 18 23. PART 1. Enter the diseases, injuries, or complications that caused the death. Do not enter the mode of dying, such as cardiac or respiratory Approximate ' y arrest, shock, or head Iaiure. List only ore cause on each line. I -` q2 'w Interval Between '. .'. A ' r t / aid'" •• ' J ''I '� . . Onset and Death IMMEDIATE CAUSE ' ___ tV , 1tlf�'I ^ V C G e —► /— 1Final disease contlnion —> a4 resulting In death)'' •, :T .q y Y �_ DUE TO (OR A CONSEQUENCE OF) r•� , t Yjj• - Sequentially Lsl conditions. b. e' 14 ..uv if any. leading to immediate - -- DUE TO (OR AS A CONSEQUENCE OF): +. t cause. Enter UNDERLYING -' ° .: - 5 CAUSE ITsease or injury c - r P` that initialed events DUE TO (OR AS A CONSEQUENCE OF): I resulting n death) fast ' - PART It. Other sgnilicant conditions contributing to death but not resulting in the underlying cause given in Pad I. 24. WAS AN AUTOPSY 25. WERE AUTOPSY FINDINGS .4 { PERFORMED? AVAILABLE PRIOR TO (Yes or No) COMPLETION OF CAUSE OF OEATH7 (Yes or No) _ YV• ' !`:r1i4F 26' MANNER OF DEATH.'. z• '/4 , e -, '.i1 „ . i 27. DATE OF INJURY 28. TIME OF 29. INJURY AT WORK' ,S4 _,. Z'ty` ' / 4 c .: y .' s. ^ ,.. a o (Month, Day. Yea,) INJURY . - (Yes or No) "' - } ::: i , I okra! ❑ Accidem (1 Homicitle , (l Suicide Il Coultl not be rl Pending M •� E1 - ', h 4 y -; Determined r Inveshgatron • ;�(y7 30. DESCRIBE HOW INJURY OCCURRED •` . f-4 , • o : 31. PLACE OF INJURY — Al home, larm, street. factory, oilke 32. LOCATION (Street and Number or Rural Route Number. City or Town. Slate) + \ -building, etc (Specify) 4. - - ,' _ . V1t�{ 33 TIME OF DEATH d 34. DATE PRONOUNCED DEAD (Month. Day, Year) : r 35, WAS CASE REFERRED TO MEDICAL EXAMINER/CORONER?1 one .' .A3:. „ w,• '.,, ,• :+. ,., I . (Yesallo) iI r zw'2:50 ••-t>t-' December 15, 1998 t': s no ._AM _ .. �'S \\„ V4 `. - 4;4 ion, tion, in my opinion, death occurred at the time. r - - y 36JME0ICAL EXINER, On the basis of exaMinaon arid/or investigat 37. DATE SIGNED •: or CORONER Only .x -date and place and due to the cause(s) and manner as stale,'` ' " (Month, Day. Year) i] ~ Signature and Title ►. "i 'v ,: .,•` ° ... - e _ 38. CERTIFYING PHYSICIAN/'; ' he best of my knowledge, death occured at the lime, dale, and place, and due to the — - 39. DATE SIGNED �• . REGISTERED.NURSE (Hospice y) ca e(s) arid manner as stated. • :- Lam' y. - (Monk, y, Year) ; �t. ':.M... • / % 5gnarura end Tine►' . { ... .'. , 40. NAME AND ADDRESS OF PERSON HO COM TED CAUSE OF DEATH (TypelPrinp, ". ;- ., '}'• Dr. Jose h T, Beck 22 "West 'Colt S uare,Fa etteville,' Arkansas 72703 41. REGISTRAR'S SIGNATURE . 3 v S 42- DATE FILED (Month,. Day, Year) ^ e rk ► ) ijlk1 , / .\j1 •p A • yt IY u r '3t{+fI ♦< fT z+}tr '♦ 'I ii• '1 Loa + ,eI' /y/,n Iy i. _ r Z�- REV 695 VR .[�+'S\ri✓. F>- r y^( 1Y `tN,s1l. • u1�)` W'.4," •) �J 4) Y# \ iy%y ? 'L .T I, v1�&\/y 4y'1' z. Cam` $�Y ••qk" rR irl� i t !r ! t ,N �� n Y • f/-yy 11 •} , 11 `({TjY ♦'. < ' (r lrr y . S'TL Y♦ i AY { F�Ti` In\ • A l;a, t'r Y'n( „iIF '"laid V K✓ '♦ 1+ ` 1 /Ie is ♦ v`r' l •' ��AAAAA ir. tz •. TRUE AND OORRECT CAP. OF THE CERTIFICATE ON': . Yw TO CERTIFY THAT THEa e• ABOVE 15 A - � '%% FILE IN THE ARKANSAS DEPARTMENT OF HEALTH ,-'r -x,; - , 4 i. ' ,J ,yy9 % '� f' _ •`.. .. DEC 18 199B ,, . . . William Ge Adams, lfr4r. � a 5, iy • 1Ax ..4I )` i t J w.• ..)A {nxitI 1 B/.S':� 0498029 i ��� •ffh,•„� ,, .., �p`J,'d1,4= . Y .,'. . s ,'AI.'' .'. Iv,.`, fl '. "dz T v" INVALID. DO NOT ACCEPT UNLESS �1ER0� A REPRODUCTION OF THIS DOCUMENT RENDERS IT VOID AND . . �' '-'-". WARNING • EMBOSSED SEAL:OFTHE ARKANSAS DEPARTMENT OF HEALTH IS PRESENT. IT IS ILLEGAL TO • - a «y Ik p+ [ . 1r.Z ALTER OR COUNTERFEITTHISDOCUMENT; '• n�+. t, 4 ':•VR113 J`1 ��`\ ,t• r :b,;s. .Z;5'. .��_ .(xjJ. �,i',. Y i'r"'"' =' i�ypy{p�u`4`. .i,""�C,''♦ �uFJliyrp`i•'{s 7/. L�Yty:J1f��� / .-♦ T• "CY• ' .ir. .A/•i -iif Ate•. 'iT.'� �•YG. vq.� A4.'��/Y.�.?Y.'•Y �.•SG.. �'� APPRAISAL REPORT Broyles Farm Corporation • 116.5 Acres M.O.L. S. Broyles Rd., Cty. Rds. #648 & #649 Fayetteville, AR By The Real Estate Consultants 118 N. East Ave By Fayetteville, A.R. 72701 (c) Copyright 1998 by The Real Estate Consultants THE REAL ESTATE „6 N. East Ave. P.O. Box 726 CONSULANTS Fayetteville, AR 72702 REALTORS • APPRAISERS • CONSULTANTS October 5, 1998 Mr. Ed Connell City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 RE: Appraisal Services Dear Mr. Connell: r g Broyles Farm Corporation Pt. of the SE1/4 of Sec. 14, T16N, R31W Appx. 116.5 Acs. S. Broyles, Fayetteville, AR Phone (501) 442-0762 In compliance with your request, and for the purpose of estimating the Market Value of the above captioned property, I hereby certify that I have personally inspected the property and made a survey of matters pertinent to the estimation of its value. The intended use of this appraisal is for purchase evaluation purposes of the City of Fayetteville. . I further certify that I have no interest, present or contemplated, in the property under appraisement, and that the fee was not contingent upon the value estimate reported, nor based upon a percentage of the appraised value. The following narrative appraisal report contains the data gathered in the investigation, and shows the method of appraisal in detail. The report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Foundation. This is considered a Complete Summary appraisal. Based upon the inspection of the subject property and the investigation and analysis carried out in this report, it is the considered opinion of the appraiser that the Market Value of the property as of October 3, 1998 and subject to the assumptions and limiting conditions set forth within the body of this report, is as follows: NINE HUNDRED THIRTY TWO THOUSAND DOLLARS ($ 932,000) Mark E/Risk, GAA `P .': State edified General Appraiser #CG0202 = "' =.i : c.TIUFE0 \g N J0. G L2J2 i °"i q. E. F'...o`' r T SUMMARY OF SALIENT FACTS & CONCLUSIONS LOCATION MAP PICTURES • • PROPERTY IDENTIFICATION HISTORY & LEGAL DESCRIPTION DEFINITION OF MARKET VALUE ASSUMPTIONS AND LIMITING CONDITIONS THE APPRAISAL PROCESS SCOPE OF THE APPRAISAL AREA ANALYSIS NEIGHBORHOOD DATA SITE DATA TOPOGRAPHIC MAP IMPROVEMENT DATA TAX & ASSESSMENT DATA ENVIRONMENTAL ANALYSIS HIGHEST AND BEST USE ANALYSIS MARKET TRENDS DETERMINATION OF MARKET VALUE THE MARKET DATA APPROACH COMPARABLE LAND SALES MAP • COMPARABLE LAND SALES SUMMARY & ANALYSIS OF COMPARABLE LAND SALES & ESTIMATION OF VALUE CORRELATION, ANALYSIS & CONCLUSION CERTIFICATE OF APPRAISER ADDENDUM WATER LINE MAP SEWER LINE MAP ZONING MAP FLOOD PLAIN MAP WARRANTY DEED QUALIFICATIONS MINIMUM STANDARDS CHECKLIST 1 2 3-9 10 11 12 13-17 18 19 20-21 22 23-24 25 26 27 28 29 30 31 I. 3243 33 34-40 41-43 44-45 46-47 48-58 49 50 51 52 53 54-57 58 Property Type: Large acreage Presently utilized as a Hay Farm and Residential Rental Location: 1.5 Miles North of Hwy. 62, along S. Broyles Rd. & Cty. Rds. #648 & #649, Fayetteville, AR Effective Date of the Appraisal: The effective date of the appraisal is the date of inspection, which was October 3,1998. The opinions set forth in this report are stated as of October 5, 1998. Zoning: None - Outside City Limits Site: Appx. 116.5 acres (Subject to Survey) Improvements: Old Single Family Dwelling, Hay Barn, Out Buildings, Farm Fencing Utilities: All municipal utilities available except Sewer Highest and Best Use: Single Family Residential Development Flood Data: Zones X and A, FEMA Map #05143C0095 C (See Flood Plain Map) Value Indications: Market Data Approach $ 932,000 Cost Approach NA Income Approach NA Final Estimate of Market Value $ 932,000 Note: This appraisal report has been prepared for the exclusive benefit of The City of Fayetteville. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparer's written permission, does so at their own risk. This report is considered a complete summary appraisal. 1 tLM .14 r `. SFHING6[z:. .t iI /y "� . �Nfi'`.F •. ,.•1 fir+r % .. d a Location Map. ': l }i • •' C¢; .��?' W.:. +F..-:[ .A� r 6 Elmtl('dl6['•,S,+.x .ch.v:. i T.. us / 1', .1 .�tv�: f5" Ce �• ,,,.,a >n 1,Tm 4Y-�[1, . \ '5 .rs.s ,r•o- yt-., L y ON71i0WN - * „11 7'`" 1 �l 'PIL ] }, . ,.,iij om: mom•~ > ,. f 41j'±W ti* 951 > �E['•J 1�>A41 l C'�,r'S'e i!'J.. 86 _p ; l+Y �a: v . J•p¢p ppp��-r��v Cl FF'.. Iljp Yt1tiC e �n �Tn`YYy.11. ] { i ' •IIIJ d � hvSj L iS rs3 — .dasi;: 5 J B ' ., , vi • `.\ ] C3� •'Ha_mon. •a. •.: / � Il :rI+� ••• F 52 . n .1 ]a _— 1_ !... �.. 'ti 1=]as,y4•TI' 11 1.. )I q6 I n ., s61• . tA,, t a .,r l.� file 11ti . B4 • E : 861. ; Wheeler II16 1 �i i ]0] 044\,a. . d • 02] 959 \ n g9 ga. �... {- , ' '• lol 31 .,[f5. 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[ Y r i. t r n•: t} pp {f ;:. 1 r •' S 1•[ • .11A�� ••w l : } y• I' • - I `l� J'1.'i.♦•' Ln ie,e r i.•a b .l .•'� { ll ('• ..�(. 911 1`Ip y., .a '.S ':._�.',i - :i'y"'f V ''">.i•L J.:i♦<C�.I.a. �\t :. .. .. 4rX_ i ♦•Y Ir�1 : is ....�1�' 4 /I eiy 1 Yr , r ^ { . 1 fy 1 A`'illtl 1•�♦j}�'q/I.1 `r `. Il' �l!1 { > 1 11 I ��� / i 1 I - \ 1 -' I ♦ I / !(tS ..Y.Y / 11J( / 4•.�y • I..�G�. ,n (i . .�S:�.1'-j %,/• ij_ � 1 '.' $.. tf ll ./` Y {. •A. /I vy li♦ si.'Ir,--�.{. • r♦• 1r 1. �t l�- . L / '4�: n1 .: ./. 1 • • �r .. (I♦♦.�yl �• fit/ �'♦� .. 'fit N -n .. , .�t-'Y'� P 4.. � 'e I�ii•1,, �:, � +E �.e. n. ; •��1f(�/ ,-.yyR ��:N ten':_.. I ,- r i' i.A^'���: V "-` � ,r'r.� i';if{)riLi"/, l:iY1 .'.�V .'S.�. ��� n" �.ha' •� • V ;y�•.• '.��p:.{• .': A'. Piv fFif n.Vfyj -�..\ •. ,9 .cal • !�J.ya .: �'.1 M., xo w. I{1Y�•1 {.:F,'•_ "i 5: `♦i u,.� 1 i .1 ' �i� atI : 1 iii filxl 1.< �a!I+ '' II�J•1'Vx` .al a"•aN' , i e \,, q�. �/M1 {'Na _ —y Or '1'G iii _r•• • �{ ' . •r t 2,. •. ice- - t' { 1 Y •:. r�i-.•: Vii;to [[ 6L'u• �kI w`� � L • • 't .L ryl pl �`: .. -I I -'A^NIA �. "\.i. •,n ryI .r •I • - .. .lam( .. -. ✓I - •L iI.YLLi�ay♦i+tYy{�f.�r��1'}. ?Y.I qV �� 1 ' • G e l'1A' a -��.�� ,' i .' t J�. Vt \r•iI ♦,,- • ♦ V """l i'4i�9 " I I lal1'." ��1�.a` .'dot• _ .\ �� 11 ,. 1 -• V. . ,. 1 S •ll S� �•I YIJM,a.Y. 'qtr ..Ia{Y�. •- III ��a ♦t i y y•l' 11 , i1f' ., .:•' a` ,♦�Ii • i. [ ••♦i^vY IA [I i, HII l " •1 ,' 1 I.J. �. .\ ♦ a4:r 1! LI�'I![\'1 •.1'..ai l : it fli [[ .I :1 Ir' .. ,.S, I-- '-- The property under appraisement is an approximately 116.5 acre tract 1.5 miles north of Hwy. 62 along S. Broyles Rd. and County Rds. #649 & #648. The subject is currently underutilized as a hay farm and residential rental. It is located just north of the city limits of Farmington, Washington County, Arkansas. As of the effective date of the appraisal, the owner of record of the subject property is: Broyles Farm Corporation This appraisal is made for the purpose of estimating the Fair Market Value of the subject property as of the date contained herein, and under the contingent and limiting conditions set forth in this report. The intended use of the appraisal is for purchase evaluation purposes of the City of Fayetteville. The effective date of this appraisal is the date of inspection, October 3, 1998. 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 that may exist, such as easements and restrictions of record. 10 4! r, The subject property has been held by the present owners since December 31, 1980. The Broyles Farm Corporation obtained title from Lester and Zella Broyles. This conveyance was between related parties and no consideration was reported. The property has been in the Broyles for many years. There have been no transactions affecting the subject property within the past three years. fib 1 .`Z _' _ 1 Per Deed Book 1117, Page 384: * See attached Deed in Addendum of this Report. 11 The Federal National Mortgage Association (Fannie Mae) 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: 1. 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. S. 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." It should be noted that market value and market price (what price a property actually sells for) are often not the same. The appraiser's estimate of market value is his prediction of the most likely selling price under the stated conditions of the report. Actual market prices are often influenced by unknown or hidden factors; thus, an appraisal does not guarantee that a sale will occur at market value. JulV SXI.tWII . flhJiSAiE ACCEPTANCE OF AND/OR USE OF THIS APPRAISAL REPORT BY THE CLIENT OR ANY THIRD PARTY CONSTITUTES ACCEPTANCE OF THE FOLLOWING ASSUMPTIONS AND LIMITING CONDITIONS: Limit of liability: The liability of TREC, Inc., dba The Real Estate Consultants, Mark E. Risk GA A, and associates and employees is limited to the client only and to the fee actually received. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignments. The appraiser is in no way to be responsible for any costs incurred to discover or correct any deficiencies of any type present in the property - physically, financially, and/or legally. In the case of limited partnerships, client agrees that if any lawsuit brought by a lender, partner, part owner, tenant, or other party, results in any award or settlements of any type in such suit regardless of outcome, that the client, who is the intended sole recipient of this report, will hold the appraiser completely harmless in any such action. Copies, publication, distribution, and use of the report: Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for any purpose other than its intended use. The signer of this report is a candidate for membership in the National Association of Independent Fee Appraisers, and a member of the National Association of Realtors and its Appraisal Section. The Bylaws and Regulations of these organizations require their members to control the use and distribution of each report signed by such member. Therefore, except as hereinafter provided, only the party for whom this report was prepared may distribute copies of this report, and only in its entirety, to such third parties as may be selected, but not without prior written consent and approval of the signatory of this report. The physical report remains the property of the appraiser for the use of the client. 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 he is connected, or any reference to the National Association of Independent Fee Appraisers, the National Association of Realtors or any designations shall be disseminated to the public through the advertising media, public relations media, news media or any public means of communication without prior written consent and approval of the signer of this report. The authentic copies of this report are sealed with my Seal. Any copy that is not so sealed is unauthorized and may have been altered. 13 Confidentiality and trade secrets: This appraisal consists of trade secrets and commercial or financial information which is privileged and confidential and exempted from disclosure under 5 U.S.C. 552 (b) (4). The appraiser may not divulge the material contents of this report, the analytical findings and conclusions, or give a copy of this report to anyone other than the client or his designee as specified in writing - except as may be required by the National Association of Independent Fee Appraisers, the National Association of Realtors, or other organizations as they may request in confidence for ethics enforcement, or by a court of law of body with the power of subpoena. This appraisal is to be used only in its entirety and no part is to used without the whole report. No change of any item in the report shall be made by anyone other than the appraiser, and the appraiser shall have no responsibility if any such unauthorized change is made. The client shall notify the appraiser signing the report of any request to reproduce this appraisal in whole or part. Testimony, consultation, and completion of appraisal services: The contract for appraisal, consultation, or analytical services is fulfilled and the total fee payable upon completion of this report. The appraiser or those assisting in preparation of this report will not be asked or required to give testimony or be subpoenaed in court of any public or private hearing because of having made this appraisal, in full or in part, nor engage in post appraisal consultation with the client or third parties except under separate and special arrangement and at additional fee. A MINIMUM TWENTY DAYS NOTICE MUST BE GIVEN BEFORE COURT APPEARANCE FOR PURPOSES OF REVIEW AND STUDY. If testimony or deposition is required because of any subpoena, the client shall be responsible for any additional time, fees, and charges regardless of the issuing party. Information used: No responsibility is assumed for the accuracy of information as to description (legal, physical, etc.) of the premises, restrictions, improvements, and income features of the property furnished by others, the client, his designee, or public records. All information furnished by others is assumed to be true, correct, and reliable and a reasonable effort has been made to verify such information. An impractical amount of time and money would be necessary to furnish unimpeachable verification in all instances. It is suggested that the client consider independent verification if so desired before making a significant commitment regarding the subject property. No responsibility for the accuracy of data and information obtained or the work of possible subcontractors is assumed by the appraiser. 14 �. Purchasing power, value change, and market influences: The estimated market value and the costs used relate only to the effective date of the appraisal. All dollar amounts are based on the purchasing power and price of the dollar as of the date of the value estimate. Market value is highly related to exposure, time, promotional effort, terms, motivation, and conditions surrounding the offering and subject to economic changes in the marketplace over time. In appraisals involving the capitalization of future income benefits, the estimate of market value reflects the appraiser's interpretation of income, yields, and other factors derived from general and specific market information. Such estimates are as of the date of appraisal and subject to dynamic changes in the financial markets that may occur. Legality of use and related studies: This report is based on the premise that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless non-compliance is stated, defined, and considered in the report. It is assumed that all applicable zoning, building codes, and use regulations and restrictions of all types have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. It is assumed that all required licenses, consents, permits, or other legislative or administrative authority from any local, state, • or federal government and/or private entity or organization have been or can be obtained or renewed for any use on which the value estimate in this report is based. • No environmental or impact studies, special market study of analysis, highest and best use analysis study, or feasibility study has been requested or made unless otherwise specified in an agreement for services or in the report. The appraiser reserves the unlimited right to alter, • amend, revise, or rescind any of the statements, findings, opinions, values, estimates, or conclusions based upon any subsequent study or analysis, or any previous study or analysis pertinent to the assignment that becomes known to him after the report is finished. Legal and financial assumptions: No responsibility is assumed for matters of a legal nature affecting title to the property nor is an opinion of title rendered. The title is assumed to be good and merchantable. The property is appraised in gross as free and clear of all mortgages, liens, encumbrances, leases, and servitudes unless so specified within the report. If this appraisal is used for mortgage loan purposes, it should be noted that specific loan ratios, term amortization, and equity requirements have not been suggested. This appraisal report and value estimate are subject to change if the physical or legal entity or financing is different than that envisioned in this report. 15 Architectural, structural, mechanical, and engineering assumptions: No responsibility is assumed for matters of survey, architectural, structural, mechanical, or engineering nature. The legal description used in this report is assumed to be correct as furnished by the client, his designee, or as derived by the appraiser. 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 to trespass unless noted within this report. The .appraiser. has inspected, as far as possible, by observation the land and the improvements thereon. However, it was not possible to personally observe conditions beneath the soil, hidden structural components, or any mechanical components within the improvements and no representations are made as to these matters unless specifically stated and considered in this report. This appraisal is based on there being no hidden, unapparent or apparent conditions of the property site, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for any such conditions or for any expertise or engineering needed to discover such factors. The appraiser does not warrant against the occurrence of problems arising from the soil conditions. All mechanical components are assumed to be in operable condition and states standard for properties of the subject's type. Conditions of heating, cooling, ventilating, electrical, and plumbing equipment is considered to be commensurate with the conditions of the balance of the improvements unless otherwise stated. No judgment is made as to the adequacy of insulation or energy efficiency of the improvements or equipment. The lender, owner, or buyer should inspect the property before purchase or any disbursement of funds. Any of those parties may wish to require mechanical or structural inspection by a qualified and licensed contractor, civil or structural engineer, architect, or other expert. The appraiser has not been requested to make an investigation of the possible existence of any potentially hazardous insulation or material used in the construction or maintenance of the building, or the possible existence of toxic waste which may or may not have been stored on the property or the possible existence of radon gas on the property. The appraiser represents that he is not qualified to test for the presence or absence of such items and has not considered, and assumes no responsibility for, such products, which might render the property more or less valuable. The client is advised to retain an expert in this field if this information is presumed appropriate and necessary. This appraisal has not considered conditions relating to surface or subsurface waters; including, but not limited to water table, flood plain, flood hazard, or rights, if any, claimed nor or in the future in riparian lands and drainage - unless otherwise noted in this report. The appraiser assumes no responsibility for any costs or consequences arising from the need for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 16 Management of Property: It is assumed that the property being appraised will be operated under prudent, responsible, and competent ownership and management - being neither inefficient nor super efficient. Exhibits: The sketches and maps in this report are included only to assist the reader in visualizing the property and are not necessarily to scale. Various photos, if any, are included for the same purpose and are not intended to represent the property in other than actual status as of the date of the photos. Site plans are not surveys unless shown from a separate surveyor. Component values: The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. Neither the analysis and conclusions herein, nor the allocations of value for land and improvements may be used in conjunction with any other appraisal and are invalid if so used. Personal property: Furnishings, fixtures, or equipment of the business operation except as specifically indicated and typically considered as a part of the real estate have been disregarded unless otherwise stated. For some property types, business and real estate interests and values are combined. Federal after tax analysis: Any after tax income and investment analysis or measures of return on investment are intended only to reflect possible and general market considerations at an assumed value of price paid. The appraiser does not claim expertise in tax matters and advises the client and any other person using this appraisal to seek competent tax advice. The appraiser is in no way to be considered a tax or investment advisor. 17 A professional appraisal begins with a thorough inspection of the property being appraised. This includes a physical inspection of the site and all improvements that 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 employment and commercial centers, industry, residential neighborhoods, schools, etc.. After a thorough analysis of the subject, its neighborhood and general area, the appraiser then attempts to ascertain a fair market value. Three time -tested appraisal approaches are utilized in the profession in order to develop a value indication. These approaches are the Market Data Approach, the Cost Approach, and the Income Approach. Each approach is described as follows: The Market Data Approach - A comparison is made between the subject property and similar properties which have sold recently in the market place. The Cost Approach - A replacement cost new of the improvements is determined and the applicable amount of depreciation is deducted in order to obtain a value estimate. The Income Approach - Bases a value estimate upon the amount of net income the property can reasonably produce over its expected lifetime. 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 upmost - 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 fmal correlation or conclusion of value. With respect to the subject property, only the Market Data Approach is considered applicable. 18 The scope of the appraisal encompasses the necessary research and analysis to prepare a report in accordance with its intended use, the Standards of Professional Practice of The National Association of Independent Fee Appraisers, and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. This appraisal is based upon the information gathered by the appraiser from the public records, other identified sources, and an inspection of the subject property and neighborhood. Data believed to be unreliable was not included in this report nor used as a basis for the value conclusion. The subject property was physically inspected by the appraiser on October 3. 1998. The appraiser contacted Mr. Carl Yates (a representative of the Broyles Farm Corporation) who chose not to accompany the appraiser on the inspection. The subject photos were taken on the above stated date. Mr. Yates did express that they had previously received an offer from a developer for $7,500 per acre. The developer had planned to build a golf course and residential develop the site. Area, city, county, and neighborhood data were based on information in the Real Estate Consultants library and files. The neighborhood section was based upon a physical inspection of the area as well as data from the Cities of Farmington and Fayetteville, and Washington County. The subject property data was based upon the physical inspection of the property and information obtained from municipal authorities. In evaluating the highest and best use for the subject property, an analysis was made of data compiled in the steps noted above. In addition, a study of the farm and residential acreage market in the subject area has been made to help determine the highest and best use of the subject property. In developing the appraisal approaches to value, market data used were collected from the Real Estate Consultantsoffice files; other appraisers, Realtors, courthouse records, or persons knowledgeable of the subject property marketplace; and the municipal offices in the Northwest Arkansas area. I After assembling and analyzing the data defined in this scope of the appraisal, a final estimate of market value was made. 19 AREA ANALYSIS Fayetteville, Arkansas is the county seat of Washington County, the home of the University of Arkansas, and the largest city in the two -county area comprising Washington and Benton Counties. This area is located in the Ozark Mountains in the extreme Northwest portion of the state. The geographic and political boundaries consist of the Missouri line to the north, Oklahoma to the west, Crawford County to the south, and Madison and Carroll Counties to the east. Fayetteville, Arkansas is served by U.S. Highways 71, 471, 62, and State Highways 16, 45, 112, and 265, plus numerous farm to market roads. Transportation facilities consist of adequate bus service from the Jefferson Bus Line. The city has modern air terminal services, and has recently expanded its facilities. A handful of large and small airlines provide around the clock connections to all parts of the world. Total enplanements for 1997 numbered approximately 250,000. There are numerous truck lines and one railroad providing adequate freight service to all points. There are approximately 75 Houses of Worship of most denominations in the City of Fayetteville. Education needs are supplied by ten elementary schools, two junior high schools, one high school, one polytechnical school, one business college, and the University of Arkansas. The Fayetteville Public Library serves the city, and is affiliated with the Ozark Regional Library System. The population of Fayetteville now stands at more than 50,000. A special census conducted in 1997 placed the city's population at appx. 53,000. This is a ten percent increase from the 1990 general census. The population growth in Northwest Arkansas is ahead of the state and national averages. Growth rate during the 1990's has averaged 2% or more per year. The Washington - Benton Counties M.S.A. had a total nonfarm work force of 139,900 as of June 1998. The employment security division reported an unemployment rate of 3.3 percent, below state and national averages. Most of the economic strength of Washington County can be attributed to three sources. 1. The University of Arkansas at Fayetteville 2. The poultry industry centered in Springdale 3. A wide variety of small industries and retail trade business Enrollment for the Fall semester of 1998 at the Fayetteville campus has been estimated to be 14,800. Since nearly half of Fayetteville's population is made up of students and university employees, the school's influence on the area is quite strong. Approximately 40 industries consisting of poultry/food processing plants, automobile equipment & tool manufacturers, clothing manufacturers, business forms, pipe fitting, etc., reside in the area. These firms produce a wide variety of items but there is no heavy industry of the type that tends to cause pollution. Washington County leads the nation in broiler production, is second in egg production and third in turkey production. 20 Area Analysis (Cont'd,) The Northwest Arkansas Plaza, a regional shopping mall located on U.S. Highway 471 between Fayetteville and Springdale, is the major retail trade center. Downtown Fayetteville has undergone a renovation and now constitutes the financial center of the area. Completed projects within the past ten years include several' banks; a continuing education facility, a Hilton Hotel, and the Walton Arts Center, all of which will focus more attention on the downtown area. Total retail sales estimates in Northwest Arkansas have been increasing at an approximate 6% annual pace. Area bank assets and sales tax revenues also continue to increase annually, further reemphasizing the area's economic health. The area's economy is strengthened by the availability of an adequate supply of public utilities. Natural gas is provided by the Arkansas Western Gas Company at charges comparable with the low side in the industry. A coal-fired, steam -generating electrical plant is located in Gentry, Benton County, Arkansas. This plant will supplement the existing supply of electricity and afford the area with an ample supply for the next 20 years. An important natural resource in Washington and Benton Counties is an abundance of water. Beaver Dam and Reservoir was formed and completed in 1966. This lake, situated off of the White River in the eastern parts of Washington and Benton Counties provides a source of electrical power, good clean water for the major cities of the area, and recreational facilities. At the present time, ample amounts of mortgage funds are available through local lending institutions. Interest rates have declined from the historically high levels of the late 1980's, and are considered relatively stable at the present time. Real estate activity is currently healthy, although all market segments show signs of increased competition and static price pressures, mainly due to overbuilding and slightly decreased demand. In spite of this, the market is still strong overall, reflecting demand for both real estate and money in the Fayetteville area. In conclusion, the amicable climate, atmosphere, and people of the area, along with a favorable economic forecast, indicate a bright future for Washington and Benton Counties. 21 Location: % Developed: Growth Rate: Property Values: Present Land Use: N of Farmington & S of Wedington Dr. (Hwy. 16W) 60% Steady Increasing 50% Residential/Agricultural 10% Commercial 40% Agricultural/Undeveloped Change in Present Land Use: Likely, from Vacant/Agricultural to Residential Predominant Occupancy: Owner Adequacy of Utilities: Average Property Compatibility: Average Police & Fire Protection: Average General Appearance of Properties: Average Accessibility: Average Age of Structures: New -30+ Yrs. Appeal to the Market: Average to Good Comments: The area of Wedington Drive west of the Hwy. 71 Bypass intersection and north of Farmington has been steadily developing since the late 1980's. For the most part, focus has been placed mainly on residential subdivisions, with commercial portions just now beginning to emerge. The Wedington Drive neighborhood has become one of the more appealing residential areas for middle income families in West Fayetteville. This growth has resulted in increased traffic congestion, one of the few negative aspects of the increasing appeal. The area south of the subject has been developing in recent years into affordable type single family residential housing. 22 SITE DATA Land Dimensions: T Subject to a Legal Survey Total Size: Approximately 116.5 acres Street Frontage: Appx. 1,320' along County Rd. #648 Appx. 3,300' along County Rd. #649 Appx. 1,980' along the West Side of S. Broyles Rd. Appx. 1,771' along the East Side of S. Broyles Rd. Zoning Classification: None Electricity: Ozark Electric Cooperative Natural Gas: Arkansas Western Gas (Available along Cty. Rd. #649) Water: City of Fayetteville (Available along S. Broyles Rd.- 8" Line and Cty. Rd. #649 - 8" Line) Sanitary Sewer: Not on subject property (Available .75 Mi. north at Cty. Rd. #648 and Persimmon St. along Creek - 8" Line and .25 Mi. south on Broyles Rd. and Lark Lane) Street Access: From Cty. Rd. #649 and Cty. Rd. #648, off of Hwy. 16W, or from Broyles Rd. off of Wilson and Hwy. 62. Gravel road, clay base. Topography: Appx. 40% cleared, gently rolling pasture. Pasture planted in fescue and Bermuda grasses. The remaining property is overgrown in scrub timber. All the land is level to gently rolling. Shape: View: Drainage: Rectangular Average Adequate Upon Inspection 23 SITE DATA (Cont'd.) Comments: The subject property is a prime tract of land in very close proximity to newly developing residential areas of West Fayetteville and North Farmington. The property has been utilized as a farm for years. When considering neighborhood trends, it is obvious this is not the highest and best use of the subject property. The subject is located outside the city limits of Fayetteville and Farmington, but is within the City of Farmington's planning area. Although still not zoned, the development potential of the land far exceeds the value of the subject as currently utilized. The subject property is currently encumbered with an 80' natural gas transmission line easement and electrical transmission line easement. All utilities are available to the site except sewer. There is a small pond on the site. It has been reported to the appraiser that there is an old cemetery on the subject site. 24 I V r i-/ \ .\ Topographical Map 94 � � �i t(/. V / +I216 �\\[ v/254�_A__�'•�L \I l/ 1 11 n • .II• • e I ( I IV, _ I � � I II 1--II \/ Il Trailer f ii ° I I. \IL • n u ul Park (, II ° \ 10 n n Cl _6 • v 1 11 1242 In . 1251 12 �< li / I F o ° •/26, •° 1261 •O N 1200 (�° ,O r` ^I. \ Owl o I, A 6j (Und • 1I/ 1 \ CI \y 0 I 1 '0 ,• I b '1 � $jJTLA(J I �P I i \1 I (: +1229 %J I/ \,� h n _______— i /243 J • AI n 1� C„ aiee=�rrc \ . I I �nl\ � N 14 13�. rI o c J/f�JJ/g 8 v 1200 _ \ • (` i C ( 11 �• c �I /230 ;'_4__..� I `I _:%11 ' \ / ___ �} tioo o 2d�� • \ li Glad Tic ing9\TaberT>rdcle / ^�-' , 1269 "± � -__. n --iy..., I 1..i �+�• ( - u- `/ °01 1 41 / n fjpf J' >� / lJ, I `-. J.�� /ii\�^•i •/''_�i� 0n _`_.. .ln1V. /'1 .A°0�^ i 1 Old Single Family Dwelling - This home is over 100 years old and in poor condition. It is currently rented for $300/month. Metal Pole Type Hay Barn - Average Condition Hay Barn/Loafing Shed Out Buildings Farm Fencing - Fenced on all sides and cross -fenced with 4 -strand barbwire on wood and metal posts, fair condition. The subject improvements are considered to have no contributory value. 2£ nca IA The Assessor's Office of Washington County has valued the subject real property as follows: Land Improvements Total $ 30,550 $ 25.050 $ 55,600 Millage Rate = 37.9 mills Estimated 1997 Taxes = $ 421.45 $11,120 The assessed valuation in Washington County is based on 20% of the total estimated value. These valuations should be used as a guide only, since they rarely reflect Market Value. The subject was last assessed in 1997. 27 The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the subject property negatively. The value estimated in this report is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions. However, the appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. It is unlikely but possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental environmental conditions on or around the property that would negatively affect its value. 28 The Appraisal Institute defines highest and best use as follows: "The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability." The following tests must be met in estimating the highest and best use of the subject: 1. It must be physically possible based on the subject site characteristics. 2. It must be a legal use under current or likely zoning regulations. 3. It must be probable and not based upon conjecture or speculation. 4. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject property by the appraiser. It is the appraiser's opinion that the highest & best use of the subject, as if vacant and as presently improved, would be for the development of a single-family residential subdivision. In order for this use to be feasible, the subject would need to be annexed into the city of Fayetteville or Farmington, and zoning would need to be changed to R-1 (Single Family Residential). Considering current neighborhood trends, this change would likely be approved by city planners. 29 MARKET TRENDS Northwest Arkansas has just undergone a significant growth period, with strong demand for real estate in general. Currently, the market remains solid, with some softening observed in all residential sectors due to oversupply and slightly decreased demand. The Northwest Arkansas area continues to prosper, with advances in per capita income, and extremely low unemployment rates. The 1990's have seen upward pressure on real estate values in the local market place. Regarding development and vacant land such as the subject, Multiple Listing Service data from the Metro Area Board of Realtors indicates an average marketing time for 1996 to be 227 days and 181 days in 1997. The appraiser has estimated a normal marketing period for the subject property of six to twelve months. The appraiser is not aware of any current listings, offers, or recent sales regarding the subject property. The subject's owner reported being approached at different times by interested parties wishing to purchase the subject property. Carl Yates reported that the owners were under contract to sell the property to a developer approximately three years ago for $7,500 per acre. This was verified with the owners real estate agent, Mary Bassett of Dykes, Bassett, and Mix. This deal apparently fell through because the developer was unable to obtain approval of his development plans from the planning authorities of Farmington. No other offers were reported to the appraiser. 30 An appraisal of real property is an attempt by the appraiser to so called "Mirror the Market"; that is, to reflect the attitudes of the typical buyer and seller in the marketplace. 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 - A comparison is made between the subject property and similar properties which have sold recently in the market place. The Cost Approach - A replacement cost new of the improvements is determined and the applicable amount of depreciation is deducted in order to obtain a value estimate. The Income Approach - Bases a value estimate upon the amount of net income the property can reasonably produce over its expected lifetime. Each approach utilizes the various principles of value which exist in the marketplace. These value principles include supply & demand, balance, contribution, conformity, external items, opportunity cost, and upmost - 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. With regards to the subject property, only the Market Data or Sales Comparison Approach is deemed applicable. 3' t1Sfl�J The Market Data Approach or Sales Comparison Approach is an attempt to measure the reactions of typical buyers and sellers in the market. In this approach a direct comparison is made between the property being appraised and 'comparable properties which have either sold recently, have received bonafide offers by prospective buyers, or are currently offered for sale. The value of the property being appraised is inferred from the selling prices, offers, and asking prices of the comparable properties. To be "comparable" a property need not be identical to the subject. The word "comparable" is used in its ordinary sense meaning something which is capable of being compared with or worthy of comparison. The appraiser assumes that a typical buyer in the market will not pay more for the subject property than it would cost to buy a comparable substitute property. The price a typical buyer is willing to pay.is generally the result of an extensive searching process in which he is constantly comparing alternative properties. In the meantime, the typical seller is usually trying to obtain the highest possible price for his property based upon his knowledge of the market place. In applying the Market Data Approach, the appraiser takes the following steps: 1. Researches the market for available comparable properties for which actual sales, listings, or offerings have occurred. 2. Confirms the prices and bonafide nature of the data and qualifies the terms and motivating forces. 3. Compares the property being appraised with each of the comparable properties, under the general division of location, time, physical characteristics, and other economic factors. 4. Formulates an opinion of the market value of the property being appraised based upon the price of each comparable property. Pursuant to the appraisal of the subject property, the appraiser has researched the courthouse records, reviewed his files, and interviewed area Realtors and lenders in order to locate recent market activity involving properties comparable or similar to the subject. The following sales were selected for comparison with the subject property. 32 LC SPFINGSf ,.. .t .�?:17 <:. r;j::;f,'. a-; - :. �• r:�i':r„f;;.:.:. �,::I'�'L—A .J Comparable .Land Scales 31 I irl. :(1 a3.'J r,Iv` q.fi 9 r QIZ VXf'aG (1 - li r 1 v♦ I>K ^ ' ]•-•! 941i}j�i'' -}L Y. YM1 aZ.•. „y; :. �1'.l1' ONTITOWN F• Sri. '>"ee Y,S"i •NJ r �j.'Iwt •� �j�•��L_�%"�f,^ 1' ./r• „�Ye )r.•ik'Jti 'r .(•!— 'aoT. .•uT: �NF.r .^x? O �i,f' In, r1[•jr ir, "�r3`P, 4» • r r ✓:•]j� •• ,I Y "q ii?le 3`y♦: H b�'} 20 &y '7i" 1 r�.t.v i R nr ♦f Y. jy v.`.;. 1♦ 1 j::: V; i,(�l" yTy L '>t'•• ...^'Sr { ? i`l�y.C� d//.:.r`J,>J- ��'•T!l:.I 23 ^i�l •. F' �'�• r • •4 $� ]E"'li'`r �� .5 yl.' 1�� rvv�.b }rl+ 1'C b r t d if '..1' Ls ' lti.' 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Wheeler 1116 1 vi"..(r ' r1��D0�1`� !u'G>Il: ♦i )!•r v. >I i 1 yy ut n i "!1 u % �• 1• .. 29 • • \ <� ]0] 044 � 99 119 ' ?� �Z;, $'ii w" � r !�'�'q;✓r. �114f �i+� 9! 112] 5 __ ___ v F _ _ .G'< 4 ` ]06 I' I• .''\i..Gy zfr!s�.'# L'.' y� kr :1;i%.♦::3i I :,_�r♦1 ;1. Y.ry�!/'r' IIKGr 'i ' • i. II? �l 11 1 - FYI AI Y i4 4 r 12 1 • ! < e _ ♦ '!' O r'� el y a rr�' _ Y y. �2 �{ r .Xi • FP �' V• ♦•r. •,' B) 1 r • . L. - •[ r:ln /, E' Ni:J..l ,Gjll y -.r ,ttl;f t'ilfy1'i Ir,nq r 991 Ian. .. .r UINGTON W00DS .c ,.1 f °'°... k( '4t%` .(�• IRT,k.`+%_:`I(. f 11 +r. /'Jrr�p; Y I •I }'l6 1,�� ' /J+I ' ^�"}'•'a'i.G a. y x a / ➢ '..,J...`• 99 1 9]] % 9n <iYIt-'11.1'y:'• IJ 014. 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'� a., wi+Lx.�.. ,<': ,• I'• i G�60• 2i r r r..,+ r Ali ' 11 • �-.rG :-: 11-- wl�r0 r P ): ' I ,v f • ♦) Syr, i {i!�'nJ^ • a 6161 il v )RMI O 6 (-'• t - - :-- nll . 616 : ]•..r:-:,- 3611 '.1 • .'1° 66 . :]J. n 62 1l?w 320 251'I" 32 -tlF • ._.c or • •II4 no 62 , pillSiar Inl _x ))63r ]L24 ,5 3 -0n01eby 65 ) I .: jf _ "'-�[i53 )r, •W - . I Id r�4I 170 "5c-., .a c � 1 ~.aclolP6" ' ..'2i) I :l .i-. I WOnyl I . ° / se 213. ,� TYA ' PJfi.n 'I 212 _ _ 20 rQl ..'eti .UI • 6'Tpt a♦AYJ ��(}•q� 1� 1111 � 1F'i YJ^lilY� 42P4 �\ �2yB yA�il LAND SALE #1 Grantor: William T. & Sylvia J. Neu Grantee: Ralph O. Walker Construction Date of Sale: 10/24/97 Legal Description: Pt. SW/4 of SE/4, •Section 8 & Pt. N/2, NE/4, & Pt. NE/4, NW/4 Section 17, T16N, R31W Size: 124.50 Acres Location: - Off West side of Harmon Rd. appx. .25 miles south of Wedington Rd., Approximately 3 miles west of subject. Sales Price: $310,000 Indicated Price: $2,490/Acre Remarks: Mostly cleared, rolling acreage lying appx. 1000' off Hwy. 16W. This area west of the subject is much less developed. This property does not have sewer or gas. Similar size tract. Purchased by developer. Residential subdivision now under construction. Grantor: George & Peggy Diffin Grantee: James & Rae Dunn Date of Sale: 5/10/96 Legal Description: Pt. of the SW1/4, NW1/4 of Sec.25, T16N, R31W Size: 17.84 acres Location: Cty. Rd. #267 south of Hwy. 16, Southeast of Farmington Sales Price: $170,000 Indicated Price: $9,529/acre Remarks: This property is located approximately one mile southeast of the subject. It has frontage along the Cty. Rd. #267. It is outside the City Limits of Fayetteville and Farmington. Cleared level pastureland. Small creek. Water available, no sewer. 34 LAND SALE #3 Grantor: Ruth Kendall, et.al. Grantee: Springdale Warehouse, Inc. Date of Sale: 2/9/93 Legal Description: Pt. of the SW/4, NW/4 &1Pt. of the W/2, SW/4 of Section.7, T16N, R30W Size: 76.35 acres Location: South side of Hwy. 16W at the Salem Rd. intersection Sales Price: $358,000 Indicated Price: $4,689/acre Remarks: This land is northeast of the subject. It has frontage on Hwy. 16. It is now the site of the Sports Park. This land was all wooded, and is considered inferior to the subject land. ptuDLtmariEi Grantor: Hayden & Mary Joe Mcllroy Grantee: Mcllroy Land Investments, Inc. and Robertson Oil Company Date of Sale: 7/21/94 Legal Description: Pt. of the S/2 of Section 12, T16N, R31W Size: Approx. 140 acres Location: South side of Hwy. 16W at the Rupple Rd. intersection Sales Price: $845,000 Indicated Price: $6,035/acre Remarks: This land is northeast of the subject with Hwy. 16 frontage. A portion of this property has been subdivided into the Meadowlands Subdivision. The sale involved a related party, but is considered to be arm's length. Grantor: Grantee: Date of Sale: Legal Description: Size: Location: Sales Price: Indicated Price: Remarks: J. D. Hall C & B Land & Cattle Co., Inc. 05/15/95 Pt. E/2 of NW/4, Section 11-16-31 46.18 Acres North side of Wedington Drive, appx. 1 mile northwest of subject. $347,000 $7,514/Acre Somewhat cleared rolling pastureland with frontage along Hwy. 16W. Current site of Heritage Village S/D. Re -zoned by buyer to R-1.5. jS Grantor: William & Carolyn Coleman Grantee: Alan Walker Construction, Inc. Date of Sale: 2/24/95 Legal Description: Pt. of the SE/4 of4NE/4, t& Pt. of NE/4 of SE/4 of Section 24, T16N, R31W Size: 36.58 acres Location: Hwy. 62 and Dinsmore Trail, Approx. 1 mile east of the subject. Sales Price: $250,000 Indicated Price: $6,834/acre Remarks: Level to gently rolling acreage with a small amount of frontage on Hwy. 62. Has access to all utilities. Now the site of the new Magnolia Crossing Subdivision. Grantor: Grantee: Date of Sale: Legal Description: Size: Location: Sales Price: Indicated Price: Remarks: Grantor: Grantee: Date of Sale: Legal Description: Size: Location: Sales Price: Indicated Price: Remarks: Alan R. Clack, et. al. Creekwood Hills Development, Inc. 5/9/94 SW/4 of the SW/4; SE/4 of the SW/4; Pt. of the W/2 of the NE/4 of the SW/4, all in Section 1, T16N, R31W 85.12 acres Off of Mount Comfort Rd. West of Rupple Rd. $520,000 $6,019/acre Large tract sale of pastureland. Similar in appeal to the subject. Sewer available. Now the site of the Bridgeport Subdivision. Lloyd & Frances Pond Castle Development Company 02/16/94 W/2 of NW/4 of NW/4, etc. Section 12-16-31 37.5 Acres Off north side of Wedington Drive, north of subject. $135,000 $3,600/Acre Cleared, rolling acreage purchased for additional phase of Fieldstone S/D. Older sale of tract with characteristics similar to subject. Currently zoned R-1 & R-1.5. Zoned A-1 at time of sale. 30 Grantor: James & Suzanne Pond Grantee: Castle Development Company Date of Sale: 02/18/93 Legal Description: E/2 of NW/4 of NW/4, etc., Section 12-16-31 • Size: 32.5 Acres Location: North side of Wedington Drive, north of subject. Sales Price: $125,000 Indicated Price: $3,846/Acre Remarks: Mostly cleared rolling acreage with frontage along Hwy. 16W. First • purchase of vacant land for eventual Fieldstone S/D. Comparison with more recent development sales gives good indication of market appreciation in the past few years. Older sale of tract in close proximity to subject. Currently zoned R-1 & R-1.5. Rezoned by buyers, A-1 at time of sale. Grantor: Bobby & Ina Hatfield Grantee: Pennington Developments, Inc. Date of Sale: 01/28/94 • Legal Description: Pt. NE/4 of SE/4, Section 10-16-31 Size: 10.2 Acres Location: Off south side of Wedington Drive along Double Springs Road, appx. 1 • mile northwest of subject. Sales Price: $82,000 Indicated Price: $8,039/Acre Remarks: Mostly cleared, rolling pasture with small portion lying in identified flood plain along Owl Creek. Current site of Owl Creek S/D. Older sale of smaller sized acreage with inferior land characteristics. Currently zoned R-1. Farmington school district. 37 LAND SALE #11 Grantor: Randall & Ruby Garrison Grantee: Ralph Walker & Carl Walker Date of Sale: 4/15/93 Legal Description: Pt. of the NE/4 of the NW,14; Pt. of the NW/4 of the NE/4, & SW/4 of the NE/4, all in Section 12, T16N, R31W Size: 45.7 acres Location: Wedington Rd. (Hwy. 16W), West of Rupple Rd. Sales Price: $175,000 Indicated Price: $3,829/acre Remarks: Older sale of acreage within close proximity of the subject. Site of Willow Springs Subdivision. Grantor: Crystal Springs Limited Partnership, Inc. Grantee: - Dana & Donna Samples, Roy & Glenda Thompson Date of Sale: 2/25/97 Legal Description: The SW/4 of the NW/4 of Section 32, T17N, R30W Size: 40 acres Location: Salem Rd. north of Mt. Comfort Rd. Sales Price: $360,000 Indicated Price: $9,000/acre Remarks: Mostly cleared, level and lower lying pastureland. Across street from the new Holcomb Elementary School and the Crystal Springs S/D with all utilities available. 1 LAND SALE #13 Grantor: Dewitt Goff Grantee: Meadows Enterprises, Inc. Date of Sale: 10/21/96 Legal Description: Pt. of Section 24, T16N, R30W Size: 303 acres Location: Stonebridge Rd. south of Hwy. 16 E Sales Price: $1,654,000 Indicated Price: $5,459/acre Remarks: Mostly cleared, level and lower lying pastureland. This is the Dash Goff Farm. It included some improvements that did not have contributory value to the buyer. This is now the site of the Stonebridge Golf Course. This is the first phase of additional purchases; next purchase is scheduled for October, and is reported to be $6,000/acre and $7,000/acre thereafter. Grantor: Nona B. Askew, Trustee Grantee: Walker Properties, Limited Partnership Date of Sale: 1/17/95 Legal Description: Pt. of the SE/4 of Section 29, Pt. of the E/2 of Section 32, Pt. of the SE/4 of Section 32, Pt. of the SW/4, NW/4 and Pt. of the NW/4, SW/4 of Section 33 all in T16N, R30W and the Frl. NE/4 of the Frl. NW/4 of Section 5, T15N, R30W. Size: 365.67 acres Location: Sunrise Mountain Rd., west of U.S. Highway 71 Sales Price: $1,000,000 Indicated Price: $2,735/acre Remarks: This is the sale of the Askew Farm along Sunrise Mountain Rd. in South Fayetteville, northwest of Drake Field. It included (2) dwellings, an old race track, and misc. farm buildings. Most improvements were past their economic lives, and were given little contributory value. Purchased by the Walker Family who has holdings on Sunrise Mountain. 39 Grantor: Glenn W. Will, Trustee Grantee: John M. & Deborah Walker Date of Sale: 4/9/93 Legal Description: Pt. of N/2, SW/4,.& Pt. of SE/4, NW/4 of Sec. 32, T16N, R30W Size: 70.17 acres Location: Northern area of McCollum Mountain off of Sunrise Mt. Rd. in South -Fayetteville, west of Drake Field. Sales Price: $196,000 Indicated Price: $2,794/Acre Remarks: Mostly wooded, somewhat steep hilltop & hillside acreage. Purchased by adjoining property owners. Mountain top land with nice views. Grantor: Grantee: Date of Sale: Legal Description Size: Location: Sales Price: Indicated Price Remarks: Robert L. Dowell Revocable Trust Northern Properties, Inc. 4/24/97 Pt. of the S/2, N/2 of Section 30 and Pt. of the SW/4, NW/4 of Section 29 all in T16N, R30W 162.31 acres NW of the intersection of U.S. Hwy. 71 Bypass and Cato Springs Rd. in SW Fayetteville. $330,000 $2,033/acre South side of Washington Mt... Mostly hillside land with some gently rolling pasture. No sewer available. Fair access. Grantor: Dr. J. B. Blakenship Grantee: Dr. Bruce Brown Date of Sale: 12/10/97 Legal Description: Pt. of the SE/4, SE/4 and the NE/4 of the SW/4 of Section 20, T17N, R30W Size: Appx. 56.37 acres Location: Hwy. 112 and Clear Creek, north of Fayetteville Sales Price: $355,000 Indicated Price: $6,298/acre Remarks: This is a bottom land and upland cattle farm on Clear Creek, northwest of Fayetteville. It is outside the city limits of any municipality. It did not have sewer or public water. It was purchased for a gentleman's ranch. 40 Analysis of the Comparable Sales and Conclusion of Value The appraiser has researched the market area and found a significant amount of land sales in proximity to the subject. The appraiser has included 17 sales considered to be similar, and believes there is more than an adequate amount of data available to obtain a reliable value estimate of the subject land as if vacant and available for its Highest and Best use. Due to the subject's potential for a single-family residential development, a wide array of sales were researched and analyzed. The appraiser has included an above average amount of sales, but wanted to make sure no sales were overlooked in the area of the subject. The following table summarizes the comparable sales used. Sale # Date Size Sales Price S/Acre Comparability 1 05/96 17.84 AC $ 170,000 $ 9,529/AC Similar 2 10/97 124.50 AC $ 310,000 $ 2,490/AC Inferior 3 02/93 76.35 AC $ 358,000 $ 4,689/AC Superior 4 07/94 140.00 AC $ 845,000 $ 6,035/AC Superior 5 05/95 46.18 AC $ 347,000 $ 7,514/AC Similar 6 02/95 36.58 AC $ 250,000 $ 6,834/AC Superior 7 05/94 85.12 AC $ 520,000 $ 6,019/AC Similar 8 02/94 37.50 AC $ 135,000 $ 3,600/AC Similar 9 02/93 32.50 AC $ 125,000 $ 3,846/AC Similar 10 01/94 10.20 AC $ 82,000 $ 8,039/AC Similar 11 04/93 45.70 AC $ 175,000 $ 3,829/AC Similar 12 02/97 40.00 AC $ 360,000 $ 9,000/AC Similar 13 10/96 303.00 AC $ 1,654,000 $ 5,459/AC Similar 14 01/95 365.67 AC $ 1,000,000 $ 2,735/AC Inferior 15 04/93 70.17 AC $ 196,000 $ 2,794/AC Inferior 16 04/97 162.31 AC $ 330,000 $ 2,033/AC Inferior 17 12/97 56.37 AC $ 355,000 $ 6,298/AC Inferior All sales are in the general vicinity of the subject, or are similar in other characteristics. Sale #1 is located just east of Farmington and south of Hwy. 62. It is of similar type land and is in the Farmington School District, as is the subject. Sale #2 is located west of the subject. It is very similar land, but is a slightly larger parcel. It did have paved road frontage on Harmon Rd., and is being utilized for residential subdivision purposes. Sale #3 is an older sale of property that is northeast of the subject. It is the site of the Sports Park on Hwy. 16 (Wedington Rd.). It was a large tract sale of wooded acreage. Its location is considered superior due to highway frontage, and its land type is considered similar. It would require a large adjustment for time. Sale #4 is also an older sale of land northeast of the subject. It also is a large sale, but of land similar to the subject in terrain and appeal. A portion of this property has been developed into a residential subdivision. It also would require a large adjustment for appreciation over the past four years in the area. 41 • i I , : 1 1 CtII ILMAU.1Ji)_Nil1 Sales #5-#12 are land in the West Fayetteville area, and in the general vicinity of the subject, which have been purchased in recent years and developed into residential subdivisions. Consequently, all are considered similar in potential use. Sale #5 is the site of the Heritage Village Subdivision. Its land type is similar. It is located north of the subject, and is in the Farmington School District. Sale #6 is the site of the new Magnolia Crossing Subdivision, which is accessed off of Hwy. 62 to the east of the subject. It is considered superior in location and similar in land type. Sale #7 is the site of the Bridgeport Subdivision, a couple of miles north of the subject. It was of similar land type, and its location is considered similar. It is an older sale, and would require an upward adjustment for time. Sales #8 & #9 are the site of the Fieldstone Subdivision, north of the subject, off of Hwy. 16. These tracts are of similar land type, and are located in a similarly appealing area. They also are older sales, and would require an upward adjustment for time. Sale #10 is the site of the Owl Creek Subdivision located off of Double Springs Road, northwest of the subject. It is of inferior land type, and is located in the Farmington School District. It is also an older sale requiring a time adjustment. Sale #11 is the site of the Willow Springs Subdivision, northeast of the subject. It is of similar land type. It would require a large time adjustment for appreciation in the marketplace. Sale #12 is a relatively recent sale of similar type land north of the subject, off of Salem Rd.. This land is to be developed into a residential subdivision. Sales #13-#17 are of larger tracts of land which have sold over the past several years within the general vicinity of Fayetteville. Sale #13 is the site of the new Stonebridge Golf Course, also known as the Dash Goff Farm. This sale represents only a portion of the farm, and of the total sale, which is ongoing over the next few years. Future sales prices will total $8,000/acre for large tracts, with a total of 1000 acres to eventually convey. The transaction was reportedly set up this way to limit income tax exposure. It is considered to be similarly appealing land. Sale #14 is the Askew Farm, west of Drake Field in South Fayetteville. It also is a very large tract of land. It is considered inferior to the subject in appeal and location. Sale #15 is also a larger tract of land purchased by the Walker Family on McCollum Mountain. It is considered much inferior to the subject property. Sale #16 also is a large tract of land in the South Fayetteville area. It is located west of the bypass and north of Cato Springs Rd.. It is considered much inferior to the subject due to terrain, location, and overall appeal. Sale #17 is a relatively recent sale of a large tract of land north of Fayetteville on Clear Creek, off of Hwy. 112. It was purchased by a local Doctor for an estate. It has similar land type and appeal, but its location is considered inferior to the subject. e _ I. :1 .)1 O1 i 1 As mentioned earlier, the appraiser has included a more than adequate amount of sales data, because he wanted to show the readers of this report the broad area of values in the subject market area. These sales indicate a broad value range between $2,000 and $9,500 per acre. The low end of this range are sales inferior in location, terrain, and overall appeal. The high end of this range are sales within the closest proximity to the subject, most of smaller tract sizes. Generally, smaller tracts of land with other similar characteristics will sell for a higher per acre value than will larger tracts of land. This would likely be the case with the subject property. However, due to the amount of road frontage that the subject has, it is likely it could easily be split into smaller tracts. It is the appraiser's opinion that the subject's value would fall within the upper section of the above stated value range. In the appraiser's opinion, the improvements on the subject property have no contributory value. Therefore, based upon data collected, analyzed, and discussed in this report, and after adjusting for factors such as time, location, size, appeal, and other economic factors, it is the considered opinion of the appraiser that the subject's Fair Market Value as of October 3, 1998 is as follows: 116.5 Acres @ $ 8,000/Ac. _ $ 932,000 Say $ 932,000 iii L EEIJ11t43g WgJIIJjff4IS\ •J The Market Data Approach was used to estimate the value of the subject property. It was the only applicable appraisal approach. The Cost & Income Approaches were not used to estimate the value of the subject property due to the lack of improvements offering any substantial contributory value. The Market Data Approach resulted in the following indicated value: The Market Data Approach $ 932,000 The Cost Approach NA The Income Approach NA It is the appraiser's opinion that an adequate amount of Market Data was available to obtain a reliable value estimate for the subject property. A sufficient amount of land sales activity has occurred in the general vicinity of the subject property. These sales are considered the best available for comparison. Arriving at a final value estimate for the subject property is difficult due to the unique site characteristics, the softness of the current residential market in the subject neighborhood, and city regulations pertaining to development of the site. The site's relatively close -in location, large amount of developable land, scenic vistas, and availability of all municipal utilities, aside from sewer, makes it an appealing piece of property, and ideal for development. On the other hand, the market in west Fayetteville is saturated with lots and homes for sale at this time. Several developers and builders are holding large inventories, with sales at a moderate pace, at best. Hence, timing to develop the subject is not ideal. Furthermore, the subject would have to be annexed into either the City of Farmington or Fayetteville in order to obtain sewer service, and sewer would have to be brought to the site. City regulations to develop property are rather cumbersome, increasing costs and time spent. It would be likely that the city would require the paving of both Cty. Rds. #648 & #649, as they would become city streets. In addition, the subject is in the Farmington School District, whose area has yet to have seen the higher per acre prices that development land has obtained in the Fayetteville School District. In addition, a 60 acre tract just northeast of the subject at Persimmon and 46'" St. is now on the market for $945,000. The property had been under contract with a developer for a reported $795,000 ($13,250/acre) subject to rezoning to allow for an affordable type of housing development. This property is within the city limits of Fayetteville, had all utilities available, and paved road on two sides. The city turned down the rezoning request, and the deal fell through. The developer indicated that the only way he could justify the land cost was to develop the property into a higher density housing project. He also indicated that this is the type of housing that is in demand and is selling in the West Fayetteville market area, not higher price homes which would be necessary on larger lots. The parties interviewed by the appraiser agree that the property is not worth near the asking price or the contract price under its current zoning (A-1) and the city's attitude toward rezoning and allowable land use. /1L .RIflIE wiNLi: SXS i Furthermore, an 8 acre parcel in currently on the market to the south of the subject on Broyles Rd.. It is listed for $118,000 or $14,750/acre. The agent reports that the parcel has access to all utilities and is right off of pavement. It has been on the market for close to a year. A major assumption of this appraisal and the final value estimate reported is that the subject can be annexed into either the city of Fayetteville or Farmington and rezoned to a higher zoning designation, with at least R-1. An R-1 zoning designation in Fayetteville only allows for three lots per acre while the other designations allow a more densely developed subdivision. The subject is large enough to accommodate the number of lots and finished units to justify the investment in streets and utilities. In other words, there are economies of scale in a large acreage development. The trend in the immediate subject area is for small affordable type housing which would be more likely to be obtained through the city of Farmington . The subject would likely be developed in phases to reduce the overall risk. As earlier stated in this report, the owners of the subject were previously under contract to sell the property to a developer for $7,500 per acre several years ago. This developer's plan included a golf course and affordable type housing. Therefore, based upon the data collected and analyzed within this report and the preceding discussion, it is the considered opinion of this appraiser that the Fair Market Value of the subject property as of October 3, 1998 is as follows: $ 932,000 I 1 tai i1 DI I hereby certify, that to the best of my knowledge and belief, that the statements of fact contained in this report are true and correct; that the reported analysis, opinions, and conclusions are my personal, unbiased professional analyses, opinions, and conclusions; that I have no present or prospective interest in the pvoperty that is the subject of this report, and I have no interest or bias with respect of the parties involved; that my compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusion in, or the use of, this seport. I hereby certify, that my 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 Practice of the National Association of Realtors - Appraisal Section and the National Association of Independent Fee Appraisers; that the use of this report is subject to the requirements of these organizations relating to review by their duly authorized representatives; that I have made a personal inspection of the property that is the subject of the report; that no one provided significant professional assistance to the persons signing this report. The appraiser further certifies that the analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice ("USPAP"), except that the Departure Provision of the USPAP does not apply. And, the appraiser's 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. And, this appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. The appraiser understands that such appraisal may be used in connection with the permanent acquisition of the property by the City of Fayetteville with regards to a sewer treatment plant project. The City of Fayetteville has initiated this project. This appraisal has been made in conformity with the appropriate City laws, regulations, and policies and procedures applicable to the appraisal of permanent acquisitions, and 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. The appraiser has not revealed the findings and results of such appraisal to anyone other than the proper officials of the City of Fayetteville, and will not do so until so authorized by said City officials, or until required to do so by the due process of the law, or until released from this obligation by having publicly testified as to such findings. 46 U Certificate of Appraiser (Cont'd ) In the previous sections of this report, the appraiser has analyzed the relevant facts and applied the appropriate appraisal processes to the subject property. It is the considered opinion of this appraiser that the Market Value of the subject property as of October 3, 1998 is: NINE HUNDRED THIRTY TWO THOUSAND DOLLARS ($ 932,000) Respectfully Submitted, Mar E. Risk, GAA Statet Certified General Appraiser # 47 } I� 41 E' r ,. '• • 't •JRCH .1, 6" 31'16 TOH I:;:; 638 <• i'Mi. o • 2 638 I c " IN fE � 1:. . w • J : 7 • I',:. I g r.: 1 z o -. z= 27 ot. U��Il1�3! 1 . ..Y X7171'•:J .:J'":. \'4; ./a •27: .l. :a�r.r... I. i'rY •••. -It,. • 1,1\ • rso-!1T E________ N.., s K,I C[M[TERT • > RIILAS MIL IcC ::• WILLOW. AVE. 6 FF r•Ly + , •i �,�T,41,4�/�1.I.� -? . m •I. ;•ti .�•`;' DRIVE a• • aI T 'A' -STATE HIGHWAY NO.16 WEST V. r PITTS LN I lb,V • PITTMI CEDAR OLD DEPOT 2W" RD, ::;;�2T 2Y" I j 6i1 49Y I. I I I `1,l14µ.' � r ffl J. Ja iI • [, 1'• N2 � /J.. 1.Ln1 I. ,r 1 �.� /'�� /�r - ' Iavlr ��• J,.• 1 ' • 649 \• v SST A -STATE HIGHWAY 'NO 16.WES' p qq ..aa. ter.. 1J: :D 4/!1. II : `,'. '�� -L' .;'•'. �. 1: c';,, .- %' 1 .: ►►1_77 .r LN itFti..r+. Q..' ... �+\� ••1 m .: 'r: - is _ r p: , 1:1. v 1 0• N r n 8 �I•a.:: .>. i[Y �'. Yid/�'. i %••'=: .,.:''"` L08! NO LN-. A �` REED W. .r : <a: 'i;.�T,.i,: 'It'tI lij HITE I C 6• r • .:" •}.. 'e .t' .. PAIN A \$T YY:x�1(f99i: ,p- :"1:(ii•:_`. 6 t .; ... '. �• ..:. S m y • OLD •'{' ►OT AD, o 4. W .• '1.L�•,' .� �� !.'!•: —• V _. LL'• — — - — NUL I 6 1 , 17 •: INSET '8'=. FARMINGTON DINGS LEGEND 0 0T, ION ATION BUILDING • :�:.,::yl;�.;.;;�•:t;.� SEWER in CORPORATE LIMITS SECTION LINE —^�— SE .SCHOOL TOWNSHIP OR RANGE LINE FC \� • HIGHWAYS --0 CI ICHOOL STREETS/PUBLIC RD. ® L I DL1C SCH0OL•------ UNOPENED/PROPOSED STRE'.=T CH .:';7; 1: I I RAILROAD TRACKS HIGH SCHOOL lzsol COUNTY ROAD NUMBER ION 9 CHAMBER OF COMMERCE tiq JfI 357 1356 l _ �396 397 %% -- - .Zoniing..Map - 400 Ii I II g - 513 514 515 I' 'I --- 516 -.- = 552 553 554 I S F RRMINGTON "� ,yr .win u 591 592 V „, 59 631n�DI-II �J of � c v 650 -)MIT U'F HLcn CT Flood Plain I -ZONE A II ZONE X O "e 0 _ _ CITY OF FAYETTEVILLE WASHINGTON COUNTY C ZONE X • • S. • cSabWect: • • • . • 1 1 .d 23 O O J W Z WASHINGTON COUNT) z I CITY OF FARMINGTON 0 n I City of Farmington 050215 52 ZONE X 24 WASHINGTON COUNTY �,• ,i. ` �r JP11 e,ll • li ( \ e'nitl I . ' r. \ 1 ail I� .t � •� � 'i. � �/'.1 .. lti WARRANTY DEED FIUSDAND AND WIFE CONVEYING AS TENANTS RY THE ENTIRETY, JOINTLY OR IN COMMON FILED KNOW ALA. MEN ay THESE PRESENTS: FOR RECORD +GF." That we, ycstcLJ1es add te4 Kp�__ zellh Broyles_ AUG 28 1 il:lj'i husband and wife, hpelnefler called Grantors. for and In �n to IIJ I � Ilon of the mum of One Dollar comluen� (Ii and olMr good and valuable consideration I0 Us In hand paid by Broyles Farm Corporation PJ]5 NINCTOIJ 4LSIA KO COUNTY AR 1LNEY rtp :' ' C1EBK �1�Y. •> %A; I herelnerler salad Or.nlae, do, toll ,.r unle,, tt l t(Atfr'Art.Va4e the and call canna Ied land 0',,,.. and a (1'.-.I.nd, canal in . 1 dm. m. rone.lny described Washing[on -----� Ceynll. Site Of ArA.nue, to -_u: The South Half of the Northeast Quarter of the Southeast Quarter " (S 1/2 NE 1/4 SE 1/4) and the Southeast Quarter of the Southeast �'• Quarter (SE 1/4 SE 1/4), and the South Half of the Northwest Quarter of the Southeast Quarter (S 1/2 NW 1/4 SF. 1/4), and the Southwest Quarter of the Southeast Quarter (SW 1/4 SE 1/4), all • • in Section 14, Township 16 North, Range 31 West of the 5th Principal Meridian, and containing in all 120 acres, more or less, LESS AIJD EXCEPT the following described tract: Beginning at a point 579 feet West of the southeast comer of the SE 1/4 of Section 14, Township 16 North, Range 31 West, thence mooing West to the southwest corner of said 40 acre tract, thence North 209 feet, thence East to a point 209 feet North of the point of beginning, thence South 209 feet to the point of beginning, containing 3.5 acres, more or less, This deed is executed solely for the purpose ofcorrecting the legal description contained in one certain warranty deed dated Dec. 31, 1980, wherein Lester Broyles and Zella Broyles, husband and wife, were grantors, and Broyles Farm Corporation was grantee, said deed being recorded in Deed Record Book 1031, at Page 08, in the office of the Circuit Clerk and Ex -Officio Recorder for Washington County Arkansas r TO HAVE AND TO HOLD the heir, mod assigns, lore,.,, And "a,el the d. said and Grant0,, Ihereocovenant brnnpinp ynl0 Ina Paid Grant. .n proton, el, that the um p a, hereby w.,rannl That ,.. er. neon II d Grantee's e Is vnlncvmpered, and that we wig larotver •runnl and Deland INC POP to Iner�ld OlbnOf pgmtaaa I[qJ eblml w,arrver, nom And e. and r,oe(rKllw. Granlpl, haebY r .lyma and ralnpuleh unto Ine told Grantee Our gotDaUMe DpwKl[urlesY and WITNESS nu, hands and seals an this 21st day of AUCU4t IRIS iI1StiUME11t PREPAnEn DV: IgB4 IIcAI lister 6 {Jade, P. A. _ 1l�,_! "f_ !1 �a__i„ ,;• ..� J Attorneys at Law - y- —Isean 'Fayetteville, Arkansas (:=lm1 .—'_I.�—`7__se.n STATE OF ARKANSAS I as ACKNOWLEDGMENT f County pl, Washingtojl '"' on ml. InQ1 day or ...Augur C. to 84 r .. rL , me, a s_ Wbt. penonallY appeared 1.C$yeN.EroylSs —_ and.. Zelin Broyles_ Lrinrr{V'ad• ea Ibt .apslaclur lly p,avenl to he groom wham mmlt are sahlnmee to the loreppinp msNumenl and Sn0M1eU0pd iht pnnY had arKUteD Ill, lam. let IM outpost, martin it: IMIn. 't1.It CgrYiq ,hir Kll I heuvnt0 cal my hand anti ellklml utl, IAy C0minHtmn_E•plrnot � _e. . 53 TT J/ !! J:i FreH.yPublic .... frt <Jv'<___ -tit 1117, as 384 QUALIFICATIONS Mark E. Risk, GAA Real Property Appraiser PRESIDENT TREC, INC. dba THE REAL ESTATE CONSULTANTS 118 N. EAST AVE. / P.O. BOX 726 FAYETTEVILLE, AR 72702 (501) 442-0762 STATE STATE OF ARKANSAS - #CG -0202 CERTIFIED GENERAL APPRAISER LICENSED REAL STATE OF ARKANSAS - Principal Broker #00005933 ESTATE BROKER EDUCATION UNIVERSITY OF ARKANSAS, MBA 1979 UNIVERSITY OF ARKANSAS, BSBA 1977 MAJOR: REAL ESTATE AND FINANCE AMERICAN INSTITUTE OF APPRAISERS COURSE 1AI REAL ESTATE APPRAISAL PRINCIPLES • COURSE 1A2 BASIC VALUATION PROCEDURES COURSE 2-3 STANDARDS OF PROFESSIONAL PRACTICE CAPITALIZATION THEORY AND TECHNIQUES (U of A) • MARSHALL & SWIFT BUILDING COST SEMINAR EASEMENT VALUATION -- INTERNATIONAL RIGHT OF WAY ASSOC. GRI COURSE 306 -- ARKANSAS REALTORS ASSOCIATION NAIFA COURSES -- STANDARDS OF PROFESSIONAL PRACTICE REVIEWING THE URAR FORM THE NEW URAR REPORT -- NAIFA, SPRINGDALE, AR SALES COMPARISON APPROACH -- ARKANSAS REALTORS ASSOC. ENVIRONMENTAL SITE ASSESSMENT -- LINCOLN GRADUATE CENTER HUD/FHA APPRAISER TRAINING SEMINAR -- LITTLE ROCK HUD OFFICE ASB INFORMATION MEETING (Revisions to the USPAP) -- DALLAS, TX NATIONAL ASSOCIATION OF REALTORS USPAP UPDATE COURSE INSTRUCTORSTRAINING INSTITUTE (ITI) -- SAN ANTONIO, TX PROFESSIONAL NATIONAL ASSOCIATION OF REALTORS (NAR) -- APPRAISAL SECTION MEMBERSHIPS ARKANSAS REALTOR'S ASSOCIATION METRO AREA BOARD OF REALTORS ROGERS BOARD OF REALTORS PROFESSIONAL GENERAL ACCREDITED APPRAISER (GAA) - NATIONAL ASSOCIATION DESIGNATIONS OF REALTORS STATE BOARDS Appointed to the APPRAISER'S LICENSING AND CERTIFICATION BOARD by GOVERNOR BILL CLINTON in January 1992. Reappointed by Governor Jim Guy Tucker in 1994. Term Expired in January of 1997. 54 Mark E. Risk. Appraiser aiser NATIONAL NATIONAL ASSOCIATION OF REALTORS COMMITTEES Appraisal Section Subcommittee 1995-1998 - Chair - 1998 Appraisal Forum 1995 Appraisal Committee 1997,'98 ACTIVELY APPRAISING REAL ESTATE IN NORTHWEST ARKANSAS SINCE 1979 ASSOCIATED WITH JIM SULLIVAN (SULLIVAN AGENCY), 1979 TO 1989 ASSOCIATED WITH TOM REED (REED & ASSOCIATES), 1981 TO 1985 EMPLOYED BY KEITH L. SCHULTZ (ASSOCIATED APPRAISERS) 1980-81 TEACIUNG REAL ESTATE INSTRUCTOR AT THE UNIVERSITY OF ARKANSAS (1981 TO DATE) COURSES TAUGHT INCLUDE REAL ESTATE PRINCIPLES, APPRAISAL, AND FINANCE CONTINUING EDUCATION SEMINARS: BASIC STEPS TO RESIDENTIAL APPRAISAL, ENVIRONMENTAL CONCERNS PUBLICATIONS "RECREATIONAL LAND VALUES AND TRENDS IN NORTHWEST ARKANSAS", ARKANSAS BUSINESS AND ECONOMIC REVIEW, VOL. 16, NO. 1, 1983; PICKED UP FOR REPRINT BY THE INTERNATIONAL ASSOCIATION OF ASSESSORS CLIENTS SERVED *LENDING 66 FEDERAL CREDIT UNION INSTITUTIONS AMERICAN AIRLINES CREDIT UNION ARKANSAS NATIONAL BANK BANK OF ARKANSAS BANK OF BENTONVILLE BANK OF ELKINS BANK OF EUREKA SPRINGS BANK OF FAYETTEVILLE BANK OF LINCOLN BANK OF OKLAHOMA COMMERCE BANK OF BARRY COUNTY, MISSOURI COMMUNITY BANK COMMUNITY FIRST BANK FARMERS & MERCHANTS BANK OF PRAIRIE GROVE FIRST EUREKA SPRINGS BANK FIRST FEDERAL BANK FIRST FINANCIAL BANK FIRST NATIONAL BANK OF BERRYVILLE FIRST NATIONAL BANK OF SPRINGDALE FIRST NATIONAL BANK OF ST. LOUIS MCILROY BANK AND TRUST NATIONS BANK NEW SOUTH FEDERAL SAVINGS BANK 55 \�ai1 *LENDING SPRINGDALE BANK & TRUST INSTITUTIONS SUPERIOR FEDERAL BANK (Cont'd.) UARK FEDERAL CREDIT UNION UNITED FEDERAL SAVINGS BANK *MORTGAGE AMERIQUEST MORTGAGE COMPANIES ARVEST MORTGAGE COMPANY BROYLES MORTGAGE COMPANY FEDERAL NATIONAL MORTGAGE ASSOCIATION (FANNIE MAE) JAMES RIVER MORTGAGE COMPANY LOMAS & NETTLETON NORWEST MORTGAGE PHH HOME MORTGAGE PULASKI MORTGAGE COMPANY SOUTHERN MORTGAGE U.S. MORTGAGE AIMH DEVELOPMENT CORPORATION BRITTNEY DEVELOPMENT CORPORATION LARRY CARTER DEVELOPMENT CORPORATION CASTLE DEVELOPMENT EAST AVENUE DEVELOPMENT, LLC. DR. J. B. HAYS GORDON WILKINS RELOCATION ASSOCIATES RELOCATION COMPANIES BOATMEN'S GENREL COLDWELL BANKER RELOCATION COMMONWEALTH RELOCATION SERVICES EQUITABLE RELOCATION MGMT. CORPORATION EXECUTIVE RELOCATION FORWARD MOBILITY HOME EQUITY CORPORATION PRUDENTIAL RELOCATION MANAGEMENT RE/MAX RELOCATION RELOCATION FUNDING CORPORATION RELOCATION RESOURCES WEICHERT RELOCATION MISCELLANEOUS ANHEUSER BUSCH BALL CORPORATION BELL INTERNATIONAL BUSCH SKIL COMPANY CARGILL CORPORATION CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS CITY OF EUREKA SPRINGS CITY OF FAYETTEVILLE CITY OF SPRINGDALE 56 MISCELLANEOUS COLGATE PALMOLIVE (Copt'.) CTS CORPORATION DEERE CREDIT SERVICES FEDERAL DEPOSIT INSURANCE CORP. (FDIC) FULBRIGHT ENTERPRISES GATES RUBBER COMPANY GENERAL MOTORS KRAFT, INC. LOVE BOX COMPANY MGIC MICHELIN TIRE COMPANY PHIZER, INC. PROCTER & GAMBLE RECORD DATA, INC. RESOLUTION TRUST CORPORATION ROADWAY EXPRESS SALVATION ARMY SIOUX TRANSPORTATION SOUTHWESTERN ELECTRIC POWER COMPANY (SWEPCO) STATE FARM INSURANCE COMPANY TRW TYSON FOODS,JNC. MANY OTHER ATTORNEYS, DOCTORS, AND INDIVIDUALS COURT BENTON COUNTY CIRCUIT COURT TESTIMONY CARROLL COUNTY CIRCUIT COURT U.S. FEDERAL BANKRUPTCY COURT WASHINGTON COUNTY CIRCUIT COURT GEOGRAPHIC NORTHWEST ARKANSAS AREA SERVED WASHINGTON, BENTON, CARROLL & MADISON COUNTIES 57 Regulatory Compliance - Minimum Standards Checklist Federal regulations for lending institutions regarding appraisals were amended as of June 7, 1994. These regulations require 5 Minirribm Standards for appraisals performed for federally related transactions. The following checklist states each of these minimum standards and the appraisers compliance there of: 1. Conform to generally accepted appraisal standards as evidence by the USPAP unless principles of safe and sound banking require compliance with stricter standards; The appraisers certify that this appraisal meets the minimum appraisal standards currently required by the USPAP. 2. Be written and contain sufficient information and analysis to support the institution's decision to engage in the transaction; This requirement has been met through the use of the following narrative appraisal report. See Body of Report. • 3. Analyze and report appropriate deductions and discounts for proposed construction or renovation, partially leased buildings, non -market lease terms, and tract developments with unsold units; The subject property is not a proposed construction, partially leased, or a tract development. Hence, this requirement is not applicable. _ See Income Approach Method. See Correlation, Analysis, and Conclusion. The subject property is to be owner occupied upon the completion of remodeling, consequently, no deduction or discount is necessary. 4. Be based upon the definition of market value as set forth in the regulation; The appraiser has based the appraisal upon the definition of Market Value, as developed by FNMA, and FHLMC. See Definition of Market Value. Page 11. 5. Be performed by State licensed or Certified appraiser. Mark E. Risk is a State licensed Certified General Appraiser (#CG0202) and is in good standing with the state's regwlatory board. 53 APPRAISAL REPORT H. M. & Norma Lee Shipp 100 acres M.O.L. Cty. Rds. #648 & #649 Fayetteville, AR By The Real Estate Consultants 118 N. East Ave By Fayetteville, AR 72701 (c) Copyright 1998 by The Real Estate Consultants THE REAL ESTATE 118 N. East Ave. P.O. Box 726 CONSULANTS Fayetteville, AR 72702 Phone (501) 442-0762 September 25, 1998 Mr. Ed Connell City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 Appraisal Services - H.M. & Norma Lee Shipp Pt. of the NE1/4 & Pt. of the SE1/4 Sec. 14, T16N, R31W Appx. 100 AC S of Persimmon & E of C.R. 649, Fay., AR In compliance with your request, and for the purpose of estimating the Market Value of the above captioned property, I hereby certify that I have personally inspected the property and made a survey of matters pertinent to the estimation of its value. The intended use of this appraisal is for purchase evaluation purposes of the City of Fayetteville. I further certify that I have no interest, present or contemplated, in the property under appraisement, and that the fee was not contingent upon the value estimate reported, nor based upon a percentage of the appraised value. The following narrative appraisal report contains the data gathered in the investigation, and shows the method of appraisal in detail. The report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Foundation. This is considered a Complete Summary appraisal. Based upon the inspection of the subject property and the investigation and analysis carried out in this report, it is the considered opinion of the appraiser that the Market Value of the property as of September 16, 1998 and subject to the assumptions and limiting conditions set forth within the body of this report, is as follows: EIGHT HUNDRED THOUSAND DOLLARS ($ 800,000) �,c�iplly Submitt E. Ris , GAA Certified General Appraiser #CGO202 . SUMMARY OF SALIENT FACTS & CONCLUSIONS 1 LOCATION MAP 2 PICTURES 3.7 PROPERTY IDENTIFICATION 8 HISTORY & LEGAL DESCRIPTION 9 DEFINITION OF MARKET VALUE 10 ASSUMPTIONS AND LIMITING CONDITIONS 11-15 THE APPRAISAL PROCESS 16 SCOPE OF THE APPRAISAL 17 AREA ANALYSIS 18-19 NEIGHBORHOOD DATA 20 SITE DATA 21 TOPOGRAPHIC MAP 22 IMPROVEMENT DATA 23 TAX & ASSESSMENT DATA 24 ENVIRONMENTAL ANALYSIS 25 HIGHEST AND BEST USE ANALYSIS 26 MARKET TRENDS 27 DETERMINATION OF MARKET VALUE 28 THE MARKET DATA APPROACH 29-40 COMPARABLE LAND SALES MAP 30 COMPARABLE LAND SALES 31-37 SUMMARY & ANALYSIS OF COMPARABLE LAND SALES & ESTIMATION OF VALUE 38-40 CORRELATION, ANALYSIS & CONCLUSION 41-42 CERTIFICATE OF APPRAISER 43-44 ADDENDUM 45-55 WATER LINE MAP 46 SEWER LINE MAP 47 ZONING MAP 48 FLOOD PLAIN MAP 49 WARRANTY DEED 50 QUALIFICATIONS 51-54 MINIMUM STANDARDS CHECKLIST 55 f .-I Property Type: Large acreage Presently utilized as a Cattle Farm Location: 1 Mile Sottth of Wedington Drive (Hwy. 16W), between Cty. Rds. #648 & #649, Fayetteville, AR Effective Date of the Appraisal: The effective date of the appraisal is the date of inspection, which was September 16, 1998. The opinions set forth in this report are stated as of September 25, 1998. Zoning: None - Outside City Limits e - Site: Appx. 100 acres (Subject to Survey) Improvements: Old Barn, Farm Fencing Utilities: All municipal utilities available Highest and Best Use: Single Family Residential Development Flood Data: Zones X, FEMA Map #05143C0095 C (See Flood Plain Map) Value Indications: Market Data Approach $ 800,000 Cost Approach NA Income Approach NA Final Estimate of Market Value $ 800,000 Note: This appraisal report has been prepared for the exclusive benefit of The City of Fayetteville. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparer's written permission, does so at their own risk. This report is considered a complete summary appraisal. 11 r. Location Map • J ryl L� � ��� � 1''�� J• ' • �• • IBp I09 . •0 III :112 \ BT :: "Mormon; • •• men _ ].._lIf l —.J ��rrn' rl% gfi 0 • j ?t. - •'T Wheeler I11 129 `, ]0J - ♦) err __ '• : .. 012 3i ( 58 y�•' _ r'9 r _. a ING10N WOy eel:. el 'r""•� • f •I}: re 9JJ 89.- V .1 '1 981_ 'ry' •;:.. ._ fb ngn 61 • of r- - Jg 9] ti4.�,_•11 " 1. 9 369 •1 f•.': l •,.I.i• cfin n+1 I':J�� 9s YE77 VIL t 66 L.°I .,max ' } I- L Pe4• 063 s4 i II it a •>•`� ^• � y'•'3 i•:� f/ lr � rr �� l:o ' • M yY4 ` ` • � f 6161 �(5� ?' 1 FMI '., c e . -i: isThli.: •`..t1 nll uJ • n •. - .. J i2 0 ) Q 25l': .nxL .•: :. 9RL0•ree -11 nu.• • 62 1 32 1 . 911 I J�'6 53�E 3 - 's v65 9 19 -• t6 : • 55 i-.j 53 36 2 I rf_ - •69 • 63 - • i J -•----•-- - • [?.• �p' ' 170 • 13iNav �•'' I. W0� 9 r 311 1 t lR• np 44 F 21 .. 28 l rr / I \'ary'SL aD20� C02 •' � � ii1 . L 0')r L 1. ( i r-.. '. 0{ o. Sla ' -:JM�T •i' L' �i ..n IPI.; !} i.:�'.L.`;'n. mow• n1 )r .1.. • Ir q• I j1. r \ •• y }r _ r I4 r lrJ. F • w �2 44 •-J a .\O.Y i..wr �' 1. '. .^I. rk _ n..'.f!�L. `.\ • rtai a.V r'. (..:� Mr_. .iai qi ,V i! a ,• i lI11 la .. . a � ��i� ���•w'�i iii r. r YY a I.Al1..Sl n\i'4'�IJr /r'J�ir):,."Gnf , - tl^. X14 i22 1 � '41..i 'arti �y'1}.f V}�Y 'f 1. •,6l'n ` Irma^.l S`r^ .J *- �� T i2 aw `� r.lv • r lY.�� ��lr�IilrY{♦ l• �-�i•_.')•�•yM.r4�, 'T fi 5rah r _ _ �'1.rJ1• a4 iat{LrirT�,C'"Me• K •r ,i ._: ♦ ,.::-.,� -•-_;_!; 1' r\'= 4 "'t faR°rJ> {f.. n � Kn'. '. � \ r `� /.. 4i" c. G. , !. � r r.4: • n} 'd;V, � r 'p• r.+r u • 3Y n/r : n{1. rn. V 1 -• - . iA. /a/, }:tP ^ t.•- n i • Tp ♦. vi 'Ya. ^"I 2 l a M ♦S�\11� c a. arF.Y 1F 2 I. f�l'P €•,Y�:lt \` t . 4 �♦A� r �a�Frr GPs M • vY k1.. I�rY .Yy^ '� Vi• ..!2f.. . - } v - • \a'4"11 M. ,*. ''S.♦- Y +i n \'Illy !� a J\ ♦'1l. Yyl�I'4 �''F r{�,�\r�t�r .y"�n 2y+ 'N� 44��}11L�p �� a `� _-;••_-- a'\J t JA> D 1 ' w p!rfu v.a :i♦tea i♦ N7ryf `lti:�'; .~ 1 jI��j�"J✓'i�: "`N-��.� t sfr� ...�...ffff::::j�2' i i•-j'+lt'Tv'?`y vii vv ^Y ^ Krr ,.Y \ v\* `L Y �r�ti♦, Yv'Y y `�Y 5 y rte.. ♦pIr6�U� � r a 11\n I. ) Y.. .Y r��i_'.J: MI.�:I�Yf r. }IKKIf I•{I�Y�LI%IE r.T�•) �i /�.4iaaII�.I,{��, ': YI 1. Ij' r-.• /, •)•.X/ -n{ ..ra-..-si e:3r' _ ��� riF y •L .� . L ., iY LI ili•-•.r�� �J((� '. (4.'i•LL �l •\v r F' • Ji •la ^�,1`A��,} ,,S {.r Y9 q �hJ r Y rtl F .n r1 .' JIS��tJ RY.l��9u�.�AitlhV n IIIWWW- Y�'Jw 1dc t 'w i} rl' ♦; /�r'r3jj��� riT♦"-';\_♦r .�(T..T4 'I•L 'l�y.fa.'?ry ny._ �y (.. Ji'\ J C! � � fiL ♦4�jy'lAlY 1.36♦�C"L•.e ♦ �S' ��yY .�n�filiir�' i y Ste•� � r FY' A h� J/4ully�l.r fC� r�C rjrJ .Ya•rA k'k[ 4L 4[{ I.•. ,. 3 e ^. Mflr4 ♦, 'T � wTi•'•\r [ >/ •'_ /�'IrT•^* .lr' j�Y x K "♦ Y,r ft r .4'v. .r �i. l yry� .r8 •. Y mow¢ .t-+�Nr > , ♦ ,..4 r, -. �.• •.. Y!''i"3` 'i f 5�I •f .4,•�Y l :i C Y� .r�: s � w Ytl�ji+.y -"'>.' .r ( J'Iy.r lr ".; Sx`�fiL' ti4 s§. �. r2 a' r J• r+' ` T+'rl ice= •N yr i!s �!r"d ��'e A.i-.1�qJ F. YY<'�I� �l tl ��f lni �.y purl .e ♦ �, a.. r r r r i r r r r r - ,- l r — it ' 31- yTCLf •}{ 5 xT YD A �V a�y�.•.e Y Yf'". a i tf YY �1 Sr.rai � .h �. Y The property under appraisement is an approximately 100 acre tract 1 mile south of Wedington Rd. between County Rds. #649 & #648 and south of Persimmon St.. The subject is currently utilized as a cattle farm. It is located just south and west of the city limits, near the west -central portion of Fayetteville, Washington County, Afkansas. As of the effective date of the appraisal, the owner of record of the subject property is: H.M. & Norma Lee Shipp This appraisal is made for the purpose of estimating the Fair Market Value of the subject property as of the date contained herein, and under the contingent and limiting conditions set forth in this report. The intended use of the appraisal is for purchase evaluation purposes of the City of Fayetteville. PI:PILl I atOa 4 . t .! The effective date of this appraisal is the date of inspection, September 16, 1998. .. J1 1 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 that may exist, such as easements and restrictions of record. The subject property has been held by the present owners since March 26, 1987. The Shipp's obtained title from the heirs of Warren Seagraves; i.e., Rhea Seagraves Andrews and her husband, Patrick Warren Seagraves and his wife, and Janie L. Seagraves, a single person. Reported consideration at the time was $130,000. There have been no transactions affecting the subject property within the past three years. pp iJ*1*11I4NnIj Per Deed Book 1218, Page 309: * See attached Deed in Addendum of this Report. 7 pjj The Federal National Mortgage Association (Fannie Mae) 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: 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." It should be noted that market value and market price (what price a property actually sells for) are often not the same. The appraiser's estimate of market value is his prediction of the most likely selling price under the stated conditions of the report. Actual market prices are often influenced by unknown or hidden factors; thus, an appraisal does not guarantee that a sale will occur at market value. 10 ACCEPTANCE OF AND/OR USE OF THIS APPRAISAL REPORT BY THE CLIENT OR ANY THIRD PARTY CONSTITUTES ACCEPTANCE OF THE FOLLOWING ASSUMPTIONS AND LIMITING CONDITIONS: Limit of liability: The liability of , Inc., dba The Real Estate Consultants, Mark E. Risk GAA, and associates and employees is limited to the client only and to the fee actually received. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignments. The appraiser is in no way to be responsible for any costs incurred to discover or correct any deficiencies of any type present in the property - physically, financially, and/or legally. In the case of limited partnerships, client agrees that if any lawsuit brought by a lender, partner, part owner, tenant, or other party, results in any award or settlements of any type in such suit regardless of outcome, that the client, who is the intended sole recipient of this report, will hold the appraiser completely harmless in any such action. Copies, publication, distribution, and use of the report: Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for any purpose other than its intended use. The signer of this report is a candidate for membership in the National Association of Independent Fee Appraisers, and a member of the National Association of Realtors and its Appraisal Section. The Bylaws and Regulations of these organizations require their members to control the use and distribution of each report signed by such member. Therefore, except as hereinafter provided, only the party for whom this report was prepared may distribute copies of this report, and only in its entirety, to such third parties as may be selected, but not without prior written consent and approval of the signatory of this report. The physical report remains the property of the appraiser for the use of the client. 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 he is connected, or any reference to the National Association of Independent Fee Appraisers, the National Association of Realtors or any designations shall be disseminated to the public through the advertising media, public relations media, news media or any public means of communication without prior written consent and approval of the signer of this report. The authentic copies of this report are sealed with my Seal. Any copy that is not so sealed is unauthorized and may have been altered. Confidentiality and trade secrets: This appraisal consists of trade secrets and commercial or financial information which is privileged and confidential and exempted from disclosure under 5 U.S.C. 552 (b) (4). The appraiser may not divulge the material contents of this report, the analytical findings and conclusions, or give a copy of this report to °anyone other than the client or his designee as specified in writing - except as may be required by the National Association of Independent Fee Appraisers, the National Association of Realtors, or other organizations as they may request in confidence for ethics enforcement, or by a court of law of body with the power of subpoena. This appraisal is to be used only in its entirety and no part is to used without the whole report. No change of any item in the report shall be made by anyone other than the appraiser, and the appraiser shall have no responsibility if any such unauthorized change is made. The client shall notify the appraiser signing the report of any request to reproduce this appraisal in whole or part. Testimony, consultation, and completion of appraisal services: The contract for appraisal, consultation, or analytical services is fulfilled and the total fee payable upon completion of this report. The appraiser or those assisting in preparation of this report will not be asked or required to give testimony or be subpoenaed in court of any public or private hearing because of having made this appraisal, in full or in part, nor engage in post appraisal consultation with the client or third parties except under separate and special arrangement and at additional fee. A MINIMUM TWENTY DAYS NOTICE MUST BE GIVEN BEFORE COURT APPEARANCE FOR PURPOSES OF REVIEW AND STUDY If testimony or deposition is required because of any subpoena, the client shall be responsible for any additional time, fees, and charges regardless of the issuing party. Information used: No responsibility is assumed for the accuracy of information as to description (legal, physical, etc.) of the premises, restrictions, improvements, and income features of the property furnished by others, the client, his designee, or public records. All information furnished by others is assumed to be true, correct, and reliable and a reasonable effort has been made to verify such information. An impractical amount of time and money would be necessary to furnish unimpeachable verification in all instances. It is suggested that the client consider independent verification if so desired before making a significant commitment regarding the subject property. No responsibility for the accuracy of data and information obtained or the work of possible subcontractors is assumed by the appraiser. Lt Purchasing power, value change, and market influences: The estimated market value and the costs used relate only to the effective date of the appraisal. All dollar amounts are based on the purchasing power and price of the dollar as of the date of the value estimate. Market value is highly related to exposure, time, promotional effort, terms, motivation, and conditions surrounding the offering and subject to economic changes in the marketplace over time. In appraisals involving the capitalization of future income benefits, the estimate of market value reflects the appraiser's interpretation of income, yields, and other factors derived from general and specific market information. Such estimates are as of the date of appraisal and subject to dynamic changes in the financial markets that may occur. Legality of use and related studies: This report is based on the premise that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless non-compliance is stated, defined, and considered in the report. It is assumed that all applicable zoning, building codes, and use regulations and restrictions of all types have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. It is assumed that all required licenses, consents, permits, or other legislative or administrative authority from any local, state, or federal government and/or private entity or organization have been or can be obtained or renewed for any use on which the value estimate in this report is based. No environmental or impact studies, special market study of analysis, highest and best use analysis study, or feasibility study has been requested or made unless otherwise specified in an agreement for services or in the report. The appraiser reserves the unlimited right to alter, amend, revise, or rescind any of the statements, findings, opinions, values, estimates, or conclusions based upon any subsequent study or analysis, or any previous study or analysis pertinent to the assignment that becomes known to him after the report is finished. Legal and financial assumptions: No responsibility is assumed for matters of a legal nature affecting title to the property nor is an opinion of title rendered. The title is assumed to be good and merchantable. The property is appraised in gross as free and clear of all mortgages, liens, encumbrances, leases, and servitudes unless so specified within the report. If this appraisal is used for mortgage loan purposes, it should be noted that specific loan ratios, term amortization, and equity requirements have not been suggested. This appraisal report and value estimate are subject to change if the physical or legal entity or financing is different than that envisioned in this report. 13 Architectural, structural, mechanical, and engineering assumptions: No responsibility is assumed for matters of survey, architectural, structural, mechanical, or engineering nature. The legal description used in this report is assumed to be correct as furnished by the client, his designee, or as derived by the appraiser. 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 to trespass unless noted within this report. The appraiser has inspected, as far as possible, by observation the land and the improvements thereon. However, it was not possible to personally observe conditions beneath the soil, hidden structural components, or any mechanical components within the improvements and no representations are made as to these matters unless specifically stated and considered in this report. This appraisal is based on there being no hidden, unapparent or apparent conditions of the property site, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for any such conditions or for any expertise or engineering needed to discover such factors. The appraiser does not warrant against the occurrence of problems arising from the soil conditions. All mechanical components are assumed to be in operable condition and states standard for properties of the subject's type. Conditions of heating, cooling, ventilating, electrical, and plumbing equipment is considered to be commensurate with the conditions of the balance of the improvements unless otherwise stated. No judgment is made as to the adequacy of insulation or energy efficiency of the improvements or equipment. The lender, owner, or buyer should inspect the property before purchase or any disbursement of funds. Any of those parties may wish to require mechanical or structural inspection by a qualified and licensed contractor, civil or structural engineer, architect, or other expert. The appraiser has not been requested to make an investigation of the possible existence of any potentially hazardous insulation or material used in the construction or maintenance of the building, or the possible existence of toxic waste which may or may not have been stored on the property or the possible existence of radon gas on the property. The appraiser represents that he is not qualified to test for the presence or absence of such items and has not considered, and assumes no responsibility for, such products, which might render the property more or less valuable. The client is advised to retain an expert in this field if this information is presumed appropriate and necessary. This appraisal has not considered conditions relating to surface or subsurface waters; including, but not limited to water table, flood plain, flood hazard, or rights, if any, claimed nor or in the future in riparian lands and drainage - unless otherwise noted in this report. The appraiser assumes no responsibility for any costs or consequences arising from the need for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 14 Management of Property: It is assumed that the property being appraised will be operated under prudent, responsible, and competent ownership and management - being neither inefficient nor super efficient. Exhibits: The sketches and maps in this report are included only to assist the reader in visualizing the property and are not necessarily to scale. Various photos, if any, are included for the same purpose and are not intended to represent the property in other than actual status as of the date of the photos. Site plans are not surveys unless shown from a separate surveyor. Component values: N The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. Neither the analysis and conclusions herein, nor the allocations of value for land and improvements may be used in conjunction with any other appraisal and are invalid if so used. Personal property: Furnishings, fixtures, or equipment of the business operation except as specifically indicated and typically considered as a part of the real estate have been disregarded unless otherwise stated. For some property types, business and real estate interests and values are combined. Federal after tax analysis: Any after tax income and investment analysis or measures of return on investment are intended only to reflect possible and general market considerations at an assumed value of price paid. The appraiser does not claim expertise in tax matters and advises the client and any other person using this appraisal to seek competent tax advice. The appraiser is in no way to be considered a tax or investment advisor. 15 A professional appraisal begins with a thorough inspectioh of the property being appraised. This includes a physical inspection of the site and all improvements that 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 1roperty. 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 employment and commercial centers, industry, residential neighborhoods, schools, etc.. After a thorough analysis of the subject, its neighborhood and general area, the appraiser then attempts to ascertain a fair market value. Three time -tested appraisal approaches are utilized in the profession in order to develop a value indication. These approaches are the Market Data Approach, the Cost Approach, and the Income Approach. Each approach is described as follows: The Market Data Approach - A comparison is made between the subject property and similar properties which have sold recently in the market place. The Cost Approach - A replacement cost new of the improvements is determined and the applicable amount of depreciation is deducted in order to obtain a value estimate. The Income Approach - Bases a value estimate upon the amount of net income the property can reasonably produce over its expected lifetime. 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 upmost - 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. With respect to the subject property, only the Market Data Approach is considered applicable. 16 The scope of the appraisal encompasses the necessary research and analysis to prepare a report in accordance with its intended use, the Standards of Professional Practice of The National Association of Independent Fee Appraisers, and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. This appraisal is based upon the information gathered by the appraiser from the public records, other identified sources, and an inspection of the subject property and neighborhood. Data believed to be unreliable was not included in this report nor used as a basis for the value conclusion. The subject property was physically inspected by the appraiser on September 16. 1998. The appraiser contacted Mr. Shipp who accompanied the appraiser on the inspection. Mr. Shipp did express that he had intended to build a home on a portion of the subject and likely develop or subdivide the rest of the property at some point in the future. The subject photographs were taken on the above date. Area, city, county, and neighborhood data were based on information in the Real Estate Consultants library and files. The neighborhood section was based upon a physical inspection of the area as well as data from the City of Fayetteville and Washington County. The subject property data was based upon the physical inspection of the property and information obtained from municipal authorities. In evaluating the highest and best use for the subject property, an analysis was made of data compiled in the steps noted above. In addition, a study of the farm and residential acreage market in the subject area has been made to help determine the highest and best use of the subject property. In developing the appraisal approaches to value, market data used were collected from the Real Estate Consultants' office files; other appraisers, Realtors, courthouse records, or persons knowledgeable of the subject property marketplace; and the municipal offices in the Northwest Arkansas area. After assembling and analyzing the data defined in this scope of the appraisal, a final estimate of market value was made. 17 . • . Fayetteville, Arkansas is the county seat of Washington County, the home of the University of Arkansas, and the largest city in the two -county area comprising Washington and Benton Counties. This area is located in the Ozark Mountains in the extreme Northwestern portion of the state. The geographic and political boundaries consist of the Missouri line to the north, Oklahoma to the west, Crawford County to the south, and Madison and Carroll Counties to the east. Fayetteville, Arkansas is served by U.S. Highways 71, 471, 62, and State Highways 16, 45, 112, and 265, plus numerous farm to market roads. Transportation facilities consist of adequate bus service from the Jefferson Bus Line. The city has modem air terminal services, and has recently expanded its facilities. A handful of large and small airlines provide around the clock connections to all parts of the world. Total enplanements for 1997 numbered approximately 250,000. There are numerous truck lines and one railroad providing adequate freight service to all points. There are approximately 75 Houses of Worship of most denominations in the City of Fayetteville. Education needs are supplied by ten elementary schools, two junior high schools, one high school, one polytechnical school, one business college, and the University of Arkansas. The Fayetteville Public Library serves the city, and is affiliated with the Ozark Regional Library System. The population of Fayetteville now stands at more than 50,000. A special census conducted in 1997 placed the city's population at appx. 53,000. This is a ten percent increase from the 1990 general census. The population growth in Northwest Arkansas is ahead of the state and national averages. Growth rate during the 1990's has averaged 2% or more per year. The Washington - Benton Counties M.S.A. had a total nonfarm work force of 139,900 as of June 1998. The employment security division reported an unemployment rate of 3.3 percent, below state and national averages. Most of the economic strength of Washington County can be attributed to three sources. 1. The University of Arkansas at Fayetteville 2. The poultry industry centered in Springdale 3. A wide variety of small industries and retail trade business Enrollment for the Fall semester of 1998 at the Fayetteville campus has been estimated to be 14,800. Since nearly half of Fayetteville's population is made up of students and university employees, the school's influence on the area is quite strong. Approximately 40 industries consisting of poultry/food processing plants, automobile equipment & tool manufacturers, clothing manufacturers, business forms, pipe fitting, etc., reside in the area. These firms produce a wide variety of items but there is no heavy industry of the type that tends to cause pollution. Washington County leads the nation in broiler production, is second in egg production and third in turkey production. e � 1 1 The Northwest Arkansas Plaza, a regional shopping mall located on U.S. Highway 471 between Fayetteville and Springdale, is the major retail trade center. Downtown Fayetteville has undergone a renovation and now constitutes the financial center of the area. Completed projects within the past ten years include several banks, a continuing education facility, a Hilton Hotel, and the Walton Arts Center, all of which will focus more attention on the downtown area. Total retail sales estimates in Northwest Arkansas have been increasing at an approximate 6% annual pace. Area bank assets and sales tax revenues also continue to increase annually, further reemphasizing the area's economic health. The area's economy is strengthened by the availability of an adequate supply of public utilities. Natural gas is provided by the Arkansas Western Gas Company at charges comparable with the low side in the industry. A coal-fired, steam -generating electrical plant is located in Gentry, Benton County, Arkansas. This plant will supplement the existing supply of electricity and afford the area with an ample supply for the next 20 years. An important natural resource in Washington and Benton Counties is an abundance of water. Beaver Dam and Reservoir was formed and completed in 1966. This lake, situated off of the White River in the eastern parts of Washington and Benton Counties provides a source of electrical power, good clean water for the major cities of the area, and recreational facilities. At the present time, ample amounts of mortgage funds are available through local lending institutions. Interest rates have declined from the historically high levels of the late 1980's, and are considered relatively stable at the present time. Real estate activity is currently healthy, although all market segments show signs of increased competition and static price pressures, mainly due to overbuilding and slightly decreased demand. In spite of this, the market is still strong overall, reflecting demand for both real estate and money in the Fayetteville area. In conclusion, the amicable climate, atmosphere, and people of the area, along with a favorable economic forecast, indicate a bright future for Washington and Benton Counties. Frig Location: Wedington Drive (Hwy. 16W) % Developed: 6Q% Growth Rate: Steady Property Values: Increasing Present Land Use: 50% Residential/Agricultural 10% Commercial 40% Agricultural/Undeveloped Change in Present Land Use: Likely, from Vacant/Agricultural to Residential Predominant Occupancy: Owner Adequacy of Utilities: Average Property Compatibility: Average Police & Fire Protection: Average General Appearance of Properties: Average Accessibility: Average Age of Structures: New -30+ Yrs. Appeal to the Market: Average to Good Comments: The area of Wedington Drive west of the Hwy. 71 Bypass intersection has been steadily developing since the late 1980's. For the most part, focus has been placed mainly on residential subdivisions, with commercial portions just now beginning to emerge. The Wedington Drive neighborhood has become one of the more appealing residential areas for middle income families in West Fayetteville. This growth has resulted in increased traffic congestion, one of the few negative aspects of the increasing appeal. 20 Land Dimensions: Subject to a Legal Survey Total Size: Approximately 100 acres Street Frontage: Appx. 2,970' along County Rd. #648 Appx. 1,650' along County Rd. #649 Zoning Classification: None Electricity: Ozark Electric Cooperative Natural Gas: Arkansas Western Gas (Available along Cty. Rd. #649) Water: City of Fayetteville (Available along Cty. Rd. #649 - 8" Line) Sanitary Sewer: Not on subject property (Available .25 Mi. north at Cty. Rd. #648 and Persimmon St. along Creek - 8" Line) Street Access: From Cty. Rd. #649 and Cty. Rd. #648, off of Hwy. 16W. Topography: 100% cleared, gently rolling pasture. Pasture planted in fescue and Bermuda grasses. Shape: Rectangular View: Above Average Drainage: Adequate Upon Inspection Comments: The subject property is a prime tract of land in very close proximity to newly developing residential areas of West Fayetteville. The property has been utilized as a large -acreage cattle farm for years. When considering neighborhood trends, it is obvious this is not the highest and best use of the subject property. The subject is located outside the city limits of Fayetteville, but is within its planning area. Although still not zoned, the development potential of the land far exceeds the value of the subject as currently utilized. The subject property is currently encumbered with a large natural gas transmission line easement and electrical transmission line easement. All utilities are available to the site except sewer. There is a small pond on the site. 21 pIi tftJ t y Topographical Map = j,\ � ` 111 ,IS ��. II PP I u eIrapier n I \0 1 P r, n ii nl It q1 ark 1\ I• c._♦ E• I ^ F. o ^ 1 • rC,'II10 6 ii" ii 111 " ii. ^ I 9 11 - _ ' _ 1242 1' _ /25/ 2 ' 1\ °N ' 1200 l^ 1O c 126 2 Owl n 1 \ 6N-� B (Under 2 O - " ♦r _ _ -- I 1A P' Q '� - c„ ^ /200 I \\M 10 II ° I r I ^ /240 I O p ;O m 1 Sprrsrg A'P ' 1 Av 'i /2z9 \ 0• 232 - ,l 0 , ♦ O♦ 1v\\ 1 92 e C , E N T 14 123 13 4 . I / 1c • rc 8 J / 2 W hW t . 1 C ]0 1201 0 ; I. _ 1 J• 91 ,230 F -ter.. _ L 1 =' i li • .ti° Qa ...........• \ 0 Glad Ti4ings,Tabert>kcle t � 1269 / \ 24 "yy ay�o.l 141 a I, 'reel I/ l�✓ ( • . �HIU V 11� •�, . „ II^ 1J. �.♦ f \ I r •f+ 1 � z• 21301' 62 " II Fi me 1 II 0 11 wn ii Fo ii yW II n I p II I: II II •11 no 1)O L I i 7sfi aI1Ajj*agjIe The Assessor's Office of Washington County has valued the subject real property as follows: PFL II_i !J ! Land $ 15,350 $ 3,070 Improvements $ 1.000 $ 200 Total $ 16,350 $ 3,270 Millage Rate = 37.9 mills Estimated 1997 Taxes = $ 123.93 The assessed valuation in Washington County is based on 20% of the total estimated value. These valuations should be used as a guide only, since they rarely reflect Market Value. The subject was last assessed in 1997. 10 1 _\ Al_(IXk1III t2I aiJJ1 The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the subject property negatively. The value estimated in this report is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions. However, the appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. It is unlikely but possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental environmental conditions on or around the property that would negatively affect its value. 25 The Appraisal Institute defines highest and best use as follows: "The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability.' The following tests must be met in estimating the highest and best use of the subject: 1. It must be physically possible based on the subject site characteristics. 2. It must be a legal use under current or likely zoning regulations. 3. It must be probable and not based upon conjecture or speculation. 4. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject property by the appraiser. It is the appraiser's opinion that the highest & best use of the subject, as if vacant, would be for the development of a single-family residential subdivision. In order for this use to be feasible, the subject would need to be annexed into the city of Fayetteville, and zoning would need to be changed to R-1 (Single Family Residential). Considering current neighborhood trends, this change would likely be approved by city planners. 26 IU ' "-- - i I Northwest Arkansas has just undergone a significant growth period, with strong demand for real estate in general. Currently, the market remains solid, with some softening observed in all residential sectors due to oversupply and slightly decreased demand. The Northwest Arkansas area continues to prosper, with advances in per capita income, and extremely low unemployment rates. The 1990's have seen upward pressure on real estate values in the local market place. Regarding development and vacant land such as the subject, Multiple Listing Service data from the Metro Area Board of Realtors indicates an average marketing time for 1996 to be 227 days and 181 days in 1997. The appraiser has estimated a normal marketing period for the subject property of six to twelve months. The appraiser is not aware of any current listings, offers, or recent sales regarding the subject property. The subject's owner reported being approached at different times by interested parties wishing to purchase the subject property. He reported that he was offered $7,500 per acre for the property last year. No offers were reduced to writing. 27 An appraisal of real property is an attempt by the appraiser to so called "Mirror the Market"; that is, to reflect the attitudes of the typical buyer and seller in the marketplace. 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 - A comparison is made between the subject property and similar properties which have sold recently in the market place. The Cost Approach - A replacement cost new of the improvements is determined and the applicable amount of depreciation is deducted in order to obtain a value estimate. The Income Approach - Bases a value estimate upon the amount of net income the property can reasonably produce over its expected lifetime. Each approach utilizes the various principles of value which exist in the marketplace. These value principles include supply & demand, balance, contribution, conformity, external items, opportunity cost, and upmost - 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. With regards to the subject property, only the Market Data or Sales Comparison Approach is deemed applicable. The Market Data Approach or Sales Comparison Approach is an attempt to measure the reactions of typical buyers and sellers in the market. In this approach a direct comparison is made between the property being appraised and comparable properties which have either sold recently, have received bonafide offers by prospective buyers, or are currently offered for sale. The value of the property being appraised is inferred from the selling prices, offers, and asking prices of the comparable properties. To be "comparable" a property need not be identical to the subject. The word "comparable" is used in its ordinary sense meaning something which is capable of being compared with or worthy of comparison. The appraiser assumes that a typical buyer in the market will not pay more for the subject property than it would cost to buy a comparable substitute property. The price a typical buyer is willing to pay is generally the result of an extensive searching process in which he is constantly comparing alternative properties. In the meantime, the typical seller is usually trying to obtain the highest possible price for his property based upon his knowledge of the market place. In applying the Market Data Approach, the appraiser takes the following steps: 1. Researches the market for available comparable properties for which actual sales, listings, or offerings have occurred. 2. Confirms the prices and bonafide nature of the data and qualifies the terms and motivating forces. 3. Compares the property being appraised with each of the comparable properties, under the general division of location, time, physical characteristics, and other economic factors. 4. Formulates an opinion of the market value of the property being appraised based upon the price of each comparable property. Pursuant to the appraisal of the subject property, the appraiser has researched the courthouse records, reviewed his files, and interviewed area Realtors and lenders in order to locate recent market activity involving properties comparable or similar to the subject. The following sales were selected for comparison with the subject property. 29 I •:.•. LL9 q " t' I L. SPRG� INSIfG' .a.l.. "k""\ Yr :41`��. :' JI �, •1 /:M Yi• [;, •-• ♦•f��� t r ro' ..0 I -J ..!$iltycr3P''_•1�. }.tt. :ewr i>!,��V '� '.` {} •VJJ. Ir Comparable, Land .re o � �w r�,,:(r�,npep•.�rr ,�, � � , 1 .. �a j 4 - y�, ,. .I .. �• ; J` v � •n I 1 1�4�1' I tQ 0 l r� QI L�_'%.rr, � � k 95i ..r i `•���'y]W 1 11 91 ?1 (��tt '3#a� " + y4 I r....'.! ♦}'y1"'.. !, ( ' i•. 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T II2 YiK" u33 r 4G"$j `Y ,'1tt j+�i h M3 ht r R' iF ti✓1 k ♦� ���i:' :3 • 66 661 .1 _ r-)- ♦.''LYn l. ♦ �'. -'l dyl' ♦ T,r'. _; 4, :+• n �- i �-f it A<OJ1 IC. 9695 . o'e `d 99 FAYETT MLLE>« L:a7 .�, '�"T l'.`X li F� cee v � :.1i �'�.' ����������aaajjjj iN I••.. • �' 06] OBJECT'; s •' ms-� 5J1 .L h �'ya 4 Fes' ' I " ,iK�• 2b , y'�'1�. 5° oe � •� , {x 7i .• f �,rT n. I Lf3L, . Y� +,w g./'• -rv• ii' 11 iv. 66 I• I • i§ l5 •k W ^�v C 1!t �'$p ri}..+i• r'' gg r �i •1 t• v ' t 62 c l::rr iiv"r r f -• M4✓ •r1IE J, _. ir• a .y 60h2960 2) �., �•� rj4 •,y ,� .." 'W'r9•- t4 r ttr £` 4 Pf' ri � yti . • •19 L 'L'rF\�Pq7 • }. A.ti/0�`V ' r1 S..r c 16 'l� ♦<(. IO ,tL ix.I i'f yC • 1 key * �♦r,,,re�/ ' aµ a ,j¢ L. ' lit • C )' ..r•• • £ 1 '°Yiprs Q ♦ e .'� 4 t x 9 Mi � ]�,.: \�/// •{ 1 .,. : J� '.ff r' i rfOM �p. M• Rion" •.16 '.iS1 6I I •• 6161 � � J - ' ,E Mw T , Mety .y5 �.y-r ��� arse. gY'* F g 6 ••616 9 RMI Di• hi : t `�.: ''� 911 @y r +•!t ' i.•a'r ,3fiy 4'ya�P�j I70 L ., L •e •• 1122 • r1 r LEl . 4 li tl ' ry .tyL n u„ r•. •I ••• 251 �6 F e ' t - ;' ' '< z 1690 �. colt '..: eL.arm .114 • 62 ,• r 1 32 �., �y `"'.'•IS , ..i:. S- 7J t�._ qt !' " � 62 $10r45 • .• r` - _ I �ti • t'. • l ,l• Ia . y da �� �, n 4. I Y - ,,t�� • 65 • - 36l �: J1 WebyV 5 115 f �w4"I} rviY ♦L✓cI • 5) ' 9 i9 Z6 - X 14`,23 36 2 J 265 1.. :777 .?> '1 .,.1 "h^• 0 " _ • - - 59 :}. oz Il, •' •5 5n „r p� Bi31 ' i v2 69 {� • G 36 GRE ENIAND � W ESL 919 �• •• •.< I WO ue Jd0 r 6 L• iG .lix ]• 3t• i3 e_ I. Kvyr Y 1• f. J / rti i r.: �(yf : rs t- �I2m2 'w� �7 e2 ♦'•• Yl. t • ,-vti: Y .` J•. %69 15S •P.l� fg T t 56 I_'- ^ e..e•airy�"�.•i4 , 1 r }!pp�(�,� .. ) . 33 +ir"m '.'_ yzf•. -.r S 21 92a '• r' I 63 p 169 O > • • 05 • e 21 _ 2 eJF 2 I , '•vle, \ yI' •9 _• ,1 :♦'fib 1 /.�•rs It .11]. I,t •. nv 1 J'v6/ • 119 69 :160 1 B'` •: p' 9 /• -viLfz ^ 22 ,:'"Jltl'"m % �2_ a - 26 1r�J L I •• 20/ .•32 ••I w.lit; •I !� ..r•. rr r �'1'4' FBI 1 f""41 IJ �.ri♦STn 1 • Grantor: William T. & Sylvia J. Neu Grantee: Ralph O. Walker Construction Date of Sale: 10/24/97 Legal Description: Pt. SW/4 of SE/4; Section 8 & Pt. N/2, NE/4, & Pt. NE/4, NW/4 Section 17, T16N, R31W Size: 124.50 Acres Location: Off West side of Harmon Rd. appx. .25 miles south of Wedington Rd., Approximately 3 miles west of subject. Sales Price: $310,000 Indicated Price: $2,490/Acre Remarks: Mostly cleared, rolling acreage lying appx. 1000' off Hwy. 16W. This area west of the subject is much less developed. This property does not have sewer or gas. Larger tract. Purchased by developer. Residential subdivision now under construction. Grantor: George & Peggy Diffin Grantee: James & Rae Dunn Date of Sale: 5/10/96 Legal Description: Pt. of the SW1/4, NW1/4 of Sec.25, T16N, R31W Size: 17.84 acres Location: Cty. Rd. #267 south of Hwy. 16, Southeast of Farmington Sales Price: $170,000 Indicated Price: $9,529/acre Remarks: This property is located approximately two miles south of the subject. It has frontage along the Cty. Rd. #267. It is outside the City Limits of Fayetteville and Farmington. Cleared level pastureland. Small creek. Water available, no sewer. 31 ►: ; Grantor: Ruth Kendall, et.al. Grantee: Springdale Warehouse, Inc. Date of Sale: 2/9/93 Legal Description: Pt. of the SW/4, N'W/4 & Pt. of the W/2, SW/4 of Section 7, T16N, R30W Size: 76.35 acres Location: South side of Hwy. 16W at the Salem Rd. intersection Sales Price: $358,000 Indicated Price: $4,689/acre Remarks: This land is northeast of the subject. It has frontage on Hwy. 16. It is now the site of the Sports Park. This land was all wooded, and is considered inferior to the subject land. Grantor: Hayden & Mary Joe Mcllroy Grantee: Mcllroy Land Investments, Inc. and Robertson Oil Company Date of Sale: 7/21/94 Legal Description: Pt. of the S/2 of Section 12, T16N, R31W Size: Approx. 140 acres Location: South side of Hwy. 16W at the Rupple Rd. intersection Sales Price: $845,000 Indicated Price: $6,035/acre Remarks: This land is northeast of the subject with Hwy. 16 frontage. A portion of this property has been subdivided into the Meadowlands Subdivision. The sale involved a related party, but is considered to be arm's length. Grantor: Grantee: Date of Sale: Legal Description: Size: Location: Sales Price: Indicated Price: Remarks: J. D. Hall C & B Land & Cattle Co., Inc. 05/15/95 Pt. E/2 of NW/4, Section 11-16-31 46.18 Acres North side of Wedington Drive, appx. .75 mile west of subject. $347,000 $7,514/Acre Somewhat cleared rolling pastureland with frontage along Hwy. 16W. Current site of Heritage Village S/D. Re -zoned by buyer to R-1.5. 32 Grantor: William & Carolyn Coleman Grantee: Alan Walker Construction, Inc. Date of Sale: 2/24/95 Legal Description: Pt. of the SE/4 of NE/4; & Pt. of NE/4 of SE/4 of Section 24, T16N, R31W Size: 36.58 acres Location: Hwy. 62 and Dinsmore Trail, Approx. 1 mile southeast of the subject. Sales Price: $250,000 Indicated Price: $6,834/acre Remarks: Level to gently rolling acreage with a small amount of frontage on Hwy. 62. Has access to all utilities. Now the site of the new Magnolia Crossing Subdivision. Grantor: Alan R. Clack, et. al. Grantee: Creekwood Hills Development, Inc. Date of Sale: 5/9/94 Legal Description: SW/4 of the SW/4; SE/4 of the SW/4; Pt. of the W/2 of the NE/4 of the SW/4, all in Section 1, T16N, R31W Size: 85.12 acres Location: Off of Mount Comfort Rd. West of Rupple Rd. Sales Price: $520,000 Indicated Price: $6,019/acre Remarks: Large tract sale of pastureland. Similar in appeal to the subject. Sewer available. Now the site of the Bridgeport Subdivision. Grantor: Grantee: Date of Sale: Legal Description: Size: Location: Sales Price: Indicated Price: Remarks: Lloyd & Frances Pond Castle Development Company 02/16/94 W/2 of NW/4 of NW/4, etc. Section 12-16-31 37.5 Acres Off north side of Wedington Drive, north of subject. $135,000 $3,600/Acre Cleared, rolling acreage purchased for additional phase of Fieldstone S/D. Older sale of tract with characteristics similar to subject. Currently zoned R-1 & R-1.5. Zoned A-1 at time of sale. 33 Grantor: James & Suzanne Pond Grantee: Castle Development Company Date of Sale: 02/18/93 • Legal Description: E/2 of NW/4 of NW/4, etc., Section 12-16-31 Size: 32.5 Acres Location: North side of Wedington Drive, north of subject. Sales Price: $125,000 Indicated Price: $3,846/Acre Remarks: Mostly cleared rolling acreage with frontage along Hwy. 16W. First purchase of vacant land for eventual Fieldstone S/D. Comparison with more recent development sales gives good indication of market appreciation in the past few years. Older sale of tract in close proximity to subject. Currently zoned R-1 & R-1.5. Rezoned by buyers, A-1 at time of sale. Grantor: Bobby & Ina Hatfield Grantee: Pennington Developments, Inc. Date of Sale: 01/28/94 Legal Description: Pt. NE/4 of SE/4, Section 10-16-31 Size: 10.2 Acres Location: Off south side of Wedington Drive along Double Springs Road, appx. 1 mile northwest of subject. Sales Price: $82,000 Indicated Price: $8,039/Acre Remarks: Mostly cleared, rolling pasture with small portion lying in identified flood plain along Owl Creek. Current site of Owl Creek S/D. Older sale of smaller sized acreage with inferior land characteristics. Currently zoned R-1. Farmington school district. W. Grantor: Randall & Ruby Garrison Grantee: Ralph Walker & Carl Walker Date of Sale: 4/15/93 Legal Description: Pt. of the NE/4 of the NW/4; Pt. of the NW/4 of the NE/4, & SW/4 of the NE/4, all in Section 12, T16N, R31W Size: 45.7 acres Location: Wedington Rd. (Hwy. 16W), West of Rupple Rd. Sales Price: $175,000 Indicated Price: $3,829/acre Remarks: Older sale of acreage within close proximity of the subject. Site of Willow Springs Subdivision. Grantor: Crystal Springs Limited Partnership, Inc. Grantee: Dana & Donna Samples, Roy & Glenda Thompson Date of Sale: 2/25/97 Legal Description: The SW/4 of the NW/4 of Section 32, T17N, R30W Size: 40 acres Location: Salem Rd. north of Mt. Comfort Rd. Sales Price: $360,000 Indicated Price: $9,000/acre Remarks: Mostly cleared, level and lower lying pastureland. Purchased for future street from the new Holcomb Elementary School and the Crystal Springs S/D with all utilities available. 35 Grantor: Dewitt Goff Grantee: Meadows Enterprises, Inc. Date of Sale: 10/21/96 Legal Description: Pt. of Section 24, '16N,'R30W Size: 303 acres Location: Stonebridge Rd. south of Hwy. 16 E Sales Price: $1,654,000 Indicated Price: $5,459/acre Remarks: Mostly cleared, level and lower lying pastureland. This is the Dash Goff Farm. It included some improvements that did not have contributory value to the buyer. This is now the site of the Stonebridge Golf Course. This is the first phase of additional purchases; next purchase is scheduled for October, and is reported to be $6,000/acre and $7,000/acre thereafter. Grantor: Nona B. Askew, Trustee Grantee: Walker Properties, Limited Partnership Date of Sale: 1/17/95 Legal Description: Pt. of the SE/4 of Section 29, Pt. of the E/2 of Section 32, Pt. of the SE/4 of Section 32, Pt. of the SW/4, NW/4 and Pt. of the NW/4, SW/4 of Section 33 all in T16N, R30W and the FrI. NE/4 of the Fri. NW/4 of Section 5, T15N, R30W. Size: 365.67 acres Location: Sunrise Mountain Rd., west of U.S. Highway 71 Sales Price: $1,000,000 Indicated Price: $2,735/acre Remarks: This is the sale of the Askew Farm along Sunrise Mountain Rd. in South Fayetteville, northwest of Drake Field. It included (2) dwellings, an old race track, and misc. farm buildings. Most improvements were past their economic lives, and were given little contributory value. Purchased by the Walker Family who has holdings on Sunrise Mountain. 36 Grantor: Glenn W. Will, Trustee Grantee: John M. & Deborah Walker Date of Sale: 4/9/93 Legal Description: Pt. of N/2, SW/4,'& Pt. bf SE/4, NW/4 of Sec. 32, T16N, R30W Size: 70.17 acres Location: Northern area of McCollum Mountain off of Sunrise Mt. Rd. in South Fayetteville, west of Drake Field. Sales Price: $196,000 Indicated Price: $2,794/Acre Remarks: Mostly wooded, somewhat steep hilltop & hillside acreage. Purchased by adjoining property owners. Mountain top land with nice views. l Grantor: Robert L. Dowell Revocable Trust Grantee: Northern Properties, Inc. Date of Sale: 4/24/97 Legal Description: Pt. of the S/2, N/2 of Section 30 and Pt. of the SW/4, NW/4 of Section 29 all in T16N, R30W Size: 162.31 acres Location: NW of the intersection of U.S. Hwy. 71 Bypass and Cato Springs Rd. in SW Fayetteville. Sales Price: $330,000 Indicated Price: $2,033/acre Remarks: South side of Washington Mt.. Mostly hillside land with some gently rolling pasture. No sewer available. Fair access. i Grantor: Dr. J. B. Blakenship Grantee: Dr. Bruce Brown Date of Sale: 12/10/97 Legal Description: Pt. of the SE/4, SE/4 and the NE/4 of the SW/4 of Section 20, T17N, R30W Size: Appx. 56.37 acres Location: Hwy. 112 and Clear Creek, north of Fayetteville Sales Price: $355,000 Indicated Price: $6,298/acre Remarks: This is a bottom land and upland cattle farm on Clear Creek, northwest of Fayetteville. It is outside the city limits of any municipality. It did not have sewer or public water. It was purchased for a gentleman's ranch. 37 Analysis of the Comparable Sales and Conclusion of Value The appraiser has researched the market area and found a significant amount of land sales in proximity to the subject. The appraiser has included 17 sales considered to be similar, and believes there is more than an adequate amount of data available to obtain a reliable value estimate of the subject land as if vacant and available for its Highest and Best use. Due to the subject's potential for a single-family residential development, a wide array of sales were researched and analyzed. The appraiser has included an above average amount of sales, but wanted to make sure no sales were overlooked in the area of the subject. The following table summarizes the comparable sales used. Sale # Date Size Sales Price $/Acre Comparability 1 05/96 17.84 AC $ 170,000 $ 9,529/AC Similar 2 10/97 124.50 AC $ 310,000 $ 2,490/AC Inferior 3 02/93 76.35 AC $ 358,000 $ 4,689/AC Superior 4 07/94 140.00 AC $ 845,000 $ 6,035/AC Superior 5 '05/95 46.18 AC $ 347,000 $ 7,514/AC Similar 6 02/95 36.58 AC $ 250,000 $ 6,834/AC Superior 7 05/94 85.12 AC $ 520,000 $ 6,019/AC Similar 8 02/94 37.50 AC $ 135,000 $ 3,600/AC Similar 9 02/93 32.50 AC $ 125,000 $ 3,846/AC Similar 10 01/94 10.20 AC $ 82,000 $ 8,039/AC Similar 11 04/93 45.70 AC $ 175,000 $ 3,829/AC Similar 12 02/97 40.00 AC $ 360,000 $ 9,000/AC Similar 13 10/96 303.00 AC $ 1,654,000 $ 5,459/AC Similar 14 01/95 365.67 AC $ 1,000,000 $ 2,735/AC Inferior 15 04/93 70.17 AC $ 196,000 $ 2,794/AC Inferior 16 04/97 162.31 AC $ 330,000 $ 2,033/AC Inferior 17 12/97 56.37 AC $ 355,000 $ 6,298/AC Inferior All sales are in the general vicinity of the subject, or are similar in other characteristics. Sale #1 is located just east of Farmington and south of Hwy. 62. It is similar type land and in the Farmington School District as is the subject. Sale #2 is located west of the subject. It is very similar type land, but is a larger parcel. It did have paved road frontage on Harmon Rd. and is being utilized for residential subdivision purposes. Sale #3 is an older sale of property which is northeast of the subject. It is the site of the Sports Park on Hwy. 16 (Wedington Rd.). It was a large tract sale of wooded acreage. Its location is considered superior due to highway frontage, but its land type is considered inferior. It would require a large adjustment for time. Sale #4 is also an older sale of land northeast of the subject. It also is a large sale, but of land very similar to the subject in terrain and appeal. A portion of this property has been developed into a residential subdivision. It also would require a large adjustment for appreciation over the past four years in the area. 38 1 1iIIflhJtII (1J13k0 ' r• t 1 ILILUMISI 1 Sales #5412 are land in the West Fayetteville area, and in the general vicinity of the subject, which have been purchased in recent years and developed into residential subdivisions. Consequently, all are considered similar in potential use. Sale #5 is the site of the Heritage Village Subdivision. Its land type is similar. It is located just north of the subject, and is in the Farmington School District. Sale #6 is the site of the new Magnolia Crossing Subdivision, which is accessed off of Hwy. 62 to the southeast of the subject. It is considered superior in location and similar in land type. Sale #7 is the site of the Bridgeport Subdivision, a couple of miles north of the subject. It was of similar land type, and its location is considered similar. It is an older sale, and would require an upward adjustment for time. Sales #8 & #9 are the site of the Fieldstone Subdivision, north of the subject, off of Hwy. 16. These tracts are of similar land type, and are located in a similarly appealing area. They also are older sales, and would require an upward adjustment for time. Sale #10 is the site of the Owl Creek Subdivision located off of Double Springs Road, northwest of the subject. It is of inferior land type, and is located in the Farmington School District. It is also an older sale requiring a time adjustment. Sale #11 is the site of the Willow Springs Subdivision, northeast of the subject. It is of similar land type. It would require a large time adjustment for appreciation in the marketplace. Sale #12 is a relatively recent sale of similar type land north of the subject, off of Salem Rd.. This land is to be developed into a residential subdivision. Sales #13-#17 are of larger tracts of land which have sold over the past several years within the general vicinity of Fayetteville. Sale #13 is the site of the new Stonebridge Golf Course, also known as the Dash Goff Farm. This sale represents only a portion of the farm, and of the total sale, which is ongoing over the next few years. Future sales prices will total $8,000/acre for large tracts, with a total of 1000 acres to eventually convey. The transaction was reportedly set up this way to limit income tax exposure. It is considered to be similarly appealing land, but is actually in an inferior location. Sale #14 is the Askew Farm, west of Drake Field in South Fayetteville. It also is a very large tract of land. It is considered inferior to the subject in appeal and location. Sale #15 is also a larger tract of land purchased by the Walker Family on McCollum Mountain. It is considered much inferior to the subject property. Sale #16 also is a large tract of land in the South Fayetteville area. It is located west of the bypass and north of Cato Springs Rd.. It is considered much inferior to the subject due to terrain, location, and overall appeal. Sale #17 is a relatively recent sale of a large tract of land north of Fayetteville on Clear Creek, off of Hwy. 112. It was purchased by a local Doctor for an estate. It has similar land type and appeal, but its location is considered inferior to the subject. 39 aJFwanto (Iflatoifl�i i.fl I 11 _ 1 1) &'IlIILJ(tjjnifli As mentioned earlier, the appraiser has included a more than adequate amount of sales data, because he wanted to show the readers of this report the broad area of values in the subject market area. These sales indicate a broad value range between $2,000 and $9,500 per acre. The low end of this range is sales infer£br in location, terrain, and overall appeal. The high end of this range is sales within the closest proximity to the subject, most of smaller tract sizes. Generally, smaller tracts of land with other similar characteristics will sell for a higher per acre value than will larger tracts of land. This would likely be the case with the subject property. However, due to the amount of road frontage that the subject has, it is likely it could easily be split into smaller tracts. It is the appraiser's opinion that the subject's value would fall within the upper section of the above stated value range. Therefore, based upon data collected, analyzed, and discussed in this report, and after adjusting for factors such as time, location, size, appeal, and other economic factors, it is the considered opinion of the appraiser that the subject's Fair Market Value as of September 16, 1998 is as follows: 100 Acres @ $ 8,000/Ac. = $ 800,000 Say $ 800,000 40 The Market Data Approach was used to estimate the value of the subject property. It was the only applicable appraisal approach. The Cost & Income Approaches were not used to estimate the value of the subject property due to the lack of improvements offering any substantial contributory value. The Market Data Approach resulted in the following indicated value: The Market Data Approach $ 800,000 The Cost Approach NA The Income Approach NA It is the appraiser's opinion that an adequate amount of Market Data was available to obtain a reliable value estimate for the subject property. A sufficient amount of land sales activity has occurred in the general vicinity of the subject property. These sales are considered the best available for comparison. Arriving at a final value estimate for the subject property is difficult due to the unique site characteristics, the softness of the current residential market in the subject neighborhood, and city regulations pertaining to development of the site. The site's relatively close -in location, large amount of developable land, scenic vistas, and availability of all municipal utilities, aside from sewer, makes it an appealing piece of property, and ideal for development. On the other hand, the market in west Fayetteville is saturated with lots and homes for sale at this time. Several developers and builders are holding large inventories, with sales at a moderate pace, at best. Hence, timing to develop the subject is not ideal. Furthermore, the subject would have to be annexed into the City of Fayetteville in order to obtain sewer service, and sewer would have to be brought to the site. City regulations to develop property are rather cumbersome, increasing costs and time spent. It would be likely that the city would require the paving of both Cty. Rds. #648 & #649, as they would become city streets. In addition, the subject is actually in the Farmington School District, whose area has yet to have seen the higher per acre prices that development land has obtained in the Fayetteville School District. In addition, a 60 acre tract just northeast of the subject at Persimmon and 46`" St. is now on the market for $945,000. The property had been under contract with a developer for a reported $795,000 ($13,250/acre) subject to rezoning to allow for an affordable type of housing development. This property is within the city limits of Fayetteville, had all utilities available, and paved road on two sides. The city turned down the rezoning request, and the deal fell through. The developer indicated that the only way he could justify the land cost was to develop the property into a higher density housing project. He also indicated that this is the type of housing that is in demand and is selling in the West Fayetteville market area, not higher price homes which would be necessary on larger lots. The parties interviewed by the appraiser agree that the property is not worth near the asking price or the contract price under its current zoning (A-1) and the city's attitude toward rezoning and allowable land use. 41 EESMIti*wInu: •.\ [tt 111ithlffi, A major assumption of this appraisal and the final value estimate reported is that the subject can be annexed into the city and rezoned to a higher zoning designation, with at least R-1. An R-1 zoning designation only allows for;three lots per acre while the other designations allow a more densely developed subdivision. The subject is large enough to accommodate the number of lots and finished units to justify the investment in streets and utilities. In other words, there are economies of scale in a large acreage development. The subject would likely be developed in phases to reduce the overall risk. The appraiser has spoken with the City of Fayetteville Planning Dept. officials concerning the annexing and rezoning of the subject. A rezoning to Single Family Residential (R-1) is considered likely. However, a rezoning to R1.5 or R-2 was not ruled out, but is considered unlikely. Therefore, based upon the data collected and analyzed within this report and the preceding discussion, it is the considered opinion of this appraiser that the Fair Market Value of the subject property as of September 16, 1998 is as follows: 42 I hereby certify, that to the best of my knowledge and belief, that the statements of fact contained in this report are true and correct; that the reported analysis, opinions, and conclusions are my personal, unbiased professional analyses, opinions, and conclusions; that I have no present or prospective interest in the property that is the subject of this report, and I have no interest or bias with respect of the parties involved; that my compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusion in, or the use of, this report. I hereby certify, that my 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 Practice of the National Association of Realtors - Appraisal Section and the National Association of Independent Fee Appraisers; that the use of this report is subject to the requirements of these organizations relating to review by their duly authorized representatives; that I have made a personal inspection of the property that is the subject of the report; that no one provided significant professional assistance to the persons signing this report. The appraiser further certifies that the analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice ("USPAP"), except that the Departure Provision of the USPAP does not apply. And, the appraiser's 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. And, this appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. The appraiser understands that such appraisal may be used in connection with the permanent acquisition of the property by the City of Fayetteville with regards to a sewer treatment plant project. The City of Fayetteville has initiated this project. This appraisal has been made in conformity with the appropriate City laws, regulations, and policies and procedures applicable to the appraisal of permanent acquisitions, and 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. The appraiser has not revealed the findings and results of such appraisal to anyone other than the proper officials of the City of Fayetteville, and will not do so until so authorized by said City officials, or until required to do so by the due process of the law, or until released from this obligation by having publicly testified as to such findings. 43 In the previous sections of this report, the appraiser has analyzed the relevant facts and applied the appropriate appraisal processes to the subject property. It is the considered opinion of this appraiser that the Market Value of the subject property as of September 16, 1998 is: EIGHT HUNDRED THOUSAND DOLLARS ($ 800, 000) Respectfully Submitted, Ma E. Risk, GAA State Certified c \ ` .c General Appraiser #CG0202 =; Y • pblect <<:. • v' k�1 '7�i7 .. k r Lif , y^, � TTn .� ,ta r,.f, ',1, M p N . ,YY�1yr���SLit�e' Sewer Line 1 � • • �•- 919 976 ' :({,\ .. Y:�1l.Vf•,'.'TP+': :r!T.":": +. ��T•T �1 S!T'iT�• ..a .T��:'IrTi ��T:�fT f-t?.T ii`L :�Y}( j';. ..y�•.}f: il• :'i.. j{'i'ay.: ili.:: �':: �I'� !�'.a�:.3::: •:':'iC .. . `HJJI\. /{l )'. 1 • 1•:1..1 . n i.n..p• _. i ' .iL�: .i;-/( •• .I'� !. �.IN {NGTON b 660 c. '{OA F. /1 n n '1 `a -1 `$"� arji!+��4•ur"'� II ';• f. , +$\..2• rw\1 1v f 3j• :.. aZNl IO FMr YfY' 867 \�!'�.' .. ,�•. j 1 .. ...._... 4SLYII 11 i. " U l a.l •1 v:• f 1Y`.' -,r -u:. e..�.:.: n�{i p.:�rr�..:..t. ::i� :. �,�:•.Sf: :i1':. t••.�/f.yti,..•�,. p.; !.J�•�• C. '\ /0..71: ..�,2'i':�.1 •.�•)..._i.:1. )J C+ '• ' '•f't::'yy.•f i.«'illlaJr lurv�J�ii/5J'•iti 1:.L LLa1:..11a'' i ''1 ♦1LAi � •N.!,} ,y4 '. ,'. a. '�-•• • _r l•.iS .' • liilaal. \...fLl:.:. pt Y!' • .. Ili .'! yV 949 il. • .. 1�)\. �kl r .jvA STi4TE HIGHWWESr . 1\ i al\i�? T•I.�M. ? fCi t)):TiaYa t 'r' \... 1.:�Y.y ..��: L1i �. r, I .. 1jy�yrJj'�I/ ♦ 1 liv t1 ' 'r arl(i!?e�•r`If 'i�Jrl ♦ ♦:. I. � llrll i� ) 11. laf � 'v • `l u 3 q I' w 'r. . \.lfa'^yi �)•if Il I ♦ s ' ,'Cal t1 i 1 •I( ..t•1 r s5 , 3 r 1 - 11.. - ON 7 01jI O N O O Zoning Map r i ._ I II 2711 318 380 »� 319 357 1358 396 397 • 552 55.9 ml 1AL. 281,. 282 283,j284 , - ,321 .� . 320 322 323' R_ .aNnL 359 ,360 •361 32 398 s 400 :j,r 399 ii %l' ::.. I. • • p. a, ��... ll.� /?�•!..:'dfa'l]�fI';j�rrrF... •'"n.":rA: :. �it ��Rq,/ ✓� Jai 650 1491 d o Qjj ZONE X 0 fide EA 49 L� 0 I CITY OF FAYETTEVILLE 12 _ CITY OF FAYETTEVILLE _ WASHINGTON COUNTY 0 ZONE X 13 Washington County Unincorporated Areas 050212 C lE : I O m O O 23 ZONE X I WARRANTY DEED With Relinquishment of Dower and Curiesy 74i1mnRcn5 KNOW ALL MEN ay n¢SE PRESENTS' r Rhea Scgreves Andrews, formerly Rhea Segrat That An i'atrlcY. Warren Segravr.s Anti Sue lion SegravoaJ A ainglo- parson - .------._ ._ - _. . n...a.nin., rifled GRANTOR L - . for and n fonwjarllron c4 tM surn d .. One and - - - - - _ - _ - No/100 DOLLARS and other good. and valuable consideration . shard paid by U. M. Shipp and Norms Lao Shipp, husband and wife aV Cocas" of st , w rr,eby se ro.•Iarlpwf. or he' Oy pars, be Qa n• s.+ a•sf vsw.r IAt 8.-X_ Shipp and Nora.& Lao Ghlpp, hu.LAnI and wife, _as to manta. by. onbray----- • pn-,.ner ca'Vd GRANTEE a--. and no their- - Net ind issyns revs• ma Ir*w'"V Isrtit "n WASHINGTON - - ro,My. Animas. to r't 's, and Myron C. Andrew■ her hug his wife, and Janie L. egraves, I een,ty uvle, penalty of Llw (wean �.l lisal at loin lie Ia2.Qy .. .1 .... .IA 91 c?oL e••..y tbtgt The. North Plait of the Northwest Quarter of the Southeast Quarter: the North Half of the Northeast Quarter of the Southeast Quarter; the Snuth Half of the Southwest Quarter of the Northeast Quarter the South Half of the North Half of the Southwest Quarter of the Northeast Quarter; the South Half of the Southeast Quarter of the Northeast Quarter: and the South Half of the North Half of the Southeast Quarter of ttie Northeast Quarter, all in Section -11, Township 16 North, Range 7 L West, consisting of 100 acres, nor.- or loss. 7F Lb r Subject to casements and restrictive covenants of record. If an1G; ry:'?„ a -, C '• ': (.' rrc 9 P r ^ c O 7trn r p I e,14y .rr2e: o:-i;y cl L1 to tveenel iMf it Irap i. Ie7.I'l arr.rt arnow.a d J.:ar»nlsty aer^ot i . have MM raced M i,rrnnrw�r,.,-J �J IS v�—Sim, nlc.�_ ,,ear«LIT I _ hake .,d ath" tn,e. To iWa and b tW h aarrte Inlo N sad GRANTEE s . and tsrto their r --- - .aril. as app./tanarta'a Msrna+o babprq G AM -. v�eaat_w traey ore- a sod oMNTEE _ a ti --s!Q ___ of ba.a' v.arrve ano esL 4 M fb b Ir said WEs g Mgt" 0 My on le." Andrews. husband ant Rhea Sograve■ Andrews,wife. and w Y -r• AM we./PetricR.Narrs:n_Sogravoa _.... __-. Anand � Su.11 en Delr. 3 ` wtla. to rd M can id*ts bn ei V. wPrl d rrwney. do Mrwr rwne aM rilrpvtta vnb ma sitar onANYEE_-=_ as tv nprtg of curserr. dower and 1lornstaad M and b 0u aa" lards. w. • •wg gam my hand ard�"gi r wrG' _-- grantor. .--e+a._ ./''�6 _..._ ar! of -. /r� ./ tI.__DT s .C._`>;r�1.1,/'G✓i-__ _____M1S.1 LA T c dit G41'l6?, c lij MY N ErG C V ATrTnICA NARK Efa BIIELLF.N SEGRAVE. _.. _(LS) 50_--________�t /tO as l JAWIT. L. IW.CRAVER t Mark E. Risk, GAA Real Property Appraiser PRESIDENT TREC, INC. dba THE REAL ESTATE CONSULTANTS 118 N. EAST AVE. / P. O. BOX 726 FAYETTEVILLE, AR 72702 (501) 442-0762 STATE STATE OF ARKANSAS - #CG -0202 CERTIFIED GENERAL APPRAISER LICENSED REAL STATE OF ARKANSAS - Principal Broker #00005933 ESTATE BROKER EDUCATION UNIVERSITY OF ARKANSAS, MBA 1979 UNIVERSITY OF ARKANSAS, BSBA 1977 MAJOR: REAL ESTATE AND FINANCE AMERICAN INSTITUTE OF APPRAISERS COURSE IA1 REAL ESTATE APPRAISAL PRINCIPLES COURSE IA2 BASIC VALUATION PROCEDURES COURSE 2-3 STANDARDS OF PROFESSIONAL PRACTICE CAPITALIZATION THEORY AND TECHNIQUES (U of A) MARSHALL & SWIFT BUILDING COST SEMINAR EASEMENT VALUATION -- INTERNATIONAL RIGHT OF WAY ASSOC. GRI COURSE 306 -- ARKANSAS REALTORS ASSOCIATION NAIFA COURSES -- STANDARDS OF PROFESSIONAL PRACTICE REVIEWING THE URAR FORM THE NEW URAR REPORT -- NAIFA, SPRINGDALE, AR SALES COMPARISON APPROACH -- ARKANSAS REALTORS ASSOC. ENVIRONMENTAL SITE ASSESSMENT -- LINCOLN GRADUATE CENTER HUD/FHA APPRAISER TRAINING SEMINAR -- LITTLE ROCK HUD OFFICE ASS INFORMATION MEETING (Revisions to the USPAP) -- DALLAS, TX NATIONAL ASSOCIATION OF REALTORS USPAP UPDATE COURSE INSTRUCTORS' TRAINING INSTITUTE (ITI) -- SAN ANTONIO, TX PROFESSIONAL NATIONAL ASSOCIATION OF REALTORS (NAR) -- APPRAISAL SECTION MEMBERSHIPS ARKANSAS REALTOR'S ASSOCIATION METRO AREA BOARD OF REALTORS ROGERS BOARD OF REALTORS PROFESSIONAL GENERAL ACCREDITED APPRAISER (GAA) - NATIONAL ASSOCIATION DESIGNATIONS OF REALTORS STATE BOARDS Appointed to the APPRAISER'S LICENSING AND CERTIFICATION BOARD by GOVERNOR BILL CLINTON in January 1992. Reappointed by Governor Jim Guy Tucker in 1994. Term Expired in January of 1997. 51 NATIONAL NATIONAL ASSOCIATION OF REALTORS Appraisal Section COMIVIITTEES Subcommittee 1995-1998 - Chair - 1998 • Appraisal Forum 1995 Appraisal Committee 1997,'98 ACTIVELY APPRAISING REAL ESTATE IN NORTHWEST ARKANSAS SINCE 1979 ASSOCIATED WITH JIM SULLIVAN (SULLIVAN AGENCY), 1979 TO 1989 ASSOCIATED WITH TOM REED (REED & ASSOCIATES), 1981 TO 1985 EMPLOYED BY KEITH L. SCHULTZ (ASSOCIATED APPRAISERS) 1980-81 TEACHING REAL ESTATE INSTRUCTOR AT THE UNIVERSITY OF ARKANSAS (1981 TO DATE) COURSES TAUGHT INCLUDE REAL ESTATE PRINCIPLES, APPRAISAL, AND FINANCE CONTINUING EDUCATION SEMINARS: BASIC STEPS TO RESIDENTIAL APPRAISAL, ENVIRONMENTAL CONCERNS PUBLICATIONS "RECREATIONAL LAND VALUES AND TRENDS IN NORTHWEST ARKANSAS", ARKANSAS BUSINESS AND ECONOMIC REVIEW, VOL. 16, NO. 1, 1983; PICKED UP FOR REPRINT BY THE INTERNATIONAL ASSOCIATION OF ASSESSORS CLIENTS SERVED *LENDING 66 FEDERAL CREDIT UNION INSTITUTIONS AMERICAN AIRLINES CREDIT UNION ARKANSAS NATIONAL BANK BANK OF ARKANSAS BANK OF BENTONVILLE BANK OF ELKINS BANK OF EUREKA SPRINGS BANK OF FAYETTEVILLE BANK OF LINCOLN BANK OF OKLAHOMA COMMERCE BANK OF BARRY COUNTY, MISSOURI COMMUNITY BANK COMMUNITY FIRST BANK FARMERS & MERCHANTS BANK OF PRAIRIE GROVE FIRST EUREKA SPRINGS BANK FIRST FEDERAL BANK FIRST FINANCIAL BANK FIRST NATIONAL BANK OF BERRYVILLE FIRST NATIONAL BANK OF SPRINGDALE FIRST NATIONAL BANK OF ST. LOUIS MCILROY BANK AND TRUST NATIONS BANK NEW SOUTH FEDERAL SAVINGS BANK 52 pflfltIflsa .j r CLIENTS SERVED (Cont'd.) *LENDING SPRINGDALE BANK & TRUST INSTITUTIONS SUPERIOR FEDERAL BAN)C (Cont'd.) UARK FEDERAL CREDIT UNION UNITED FEDERAL SAVINGS BANK *MORTGAGE AMERIQUEST MORTGAGE COMPANIES ARVEST MORTGAGE COMPANY BROYLES MORTGAGE COMPANY FEDERAL NATIONAL MORTGAGE ASSOCIATION (FANNIE MAE) JAMES RIVER MORTGAGE COMPANY LOMAS & NETTLETON NORWEST MORTGAGE PHH HOME MORTGAGE PULASKI MORTGAGE COMPANY SOUTHERN MORTGAGE U.S. MORTGAGE DEVELOPERS AIMH DEVELOPMENT CORPORATION BRITTNEY DEVELOPMENT CORPORATION LARRY CARTER DEVELOPMENT CORPORATION CASTLE DEVELOPMENT EAST AVENUE DEVELOPMENT, LLC. DR. J. B. HAYS GORDON WILKINS RELOCATION ASSOCIATES RELOCATION COMPANIES BOATMEN'S GENREL COLD WELL BANKER RELOCATION COMMONWEALTH RELOCATION SERVICES EQUITABLE RELOCATION MGMT. CORPORATION EXECUTIVE RELOCATION FORWARD MOBILITY HOME EQUITY CORPORATION PRUDENTIAL RELOCATION MANAGEMENT RE/MAX RELOCATION RELOCATION FUNDING CORPORATION RELOCATION RESOURCES WEICHERT RELOCATION MISCELLANEOUS ANHEUSER BUSCH BALL CORPORATION BELL INTERNATIONAL BUSCH SKIL COMPANY CARGILL CORPORATION CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS CITY OF EUREKA SPRINGS CITY OF FAYETTEVILLE CITY OF SPRINGDALE 53 Mark E Risk ADrp aiser CLIENTS SERVED (Cont'd ) MISCELLANEOUS COLGATE PALMOLIVE (Cpnt'd.)CTS CORPORATION DEERE CREDIT SEPVICEA FEDERAL DEPOSIT INSURANCE CORP. (FDIC) FULBRIGHT ENTERPRISES GATES RUBBER COMPANY GENERAL MOTORS KRAFT, INC. LOVE BOX COMPANY MGIC MICHELIN TIRE COMPANY PHIZER, INC. PROCTER & GAMBLE RECORD DATA, INC. RESOLUTION TRUST CORPORATION ROADWAY EXPRESS SALVATION ARMY SIOUX TRANSPORTATION SOUTHWESTERN ELECTRIC POWER COMPANY (SWEPCO) STATE FARM INSURANCE COMPANY TRW TYSON FOODS, INC. MANY OTHER ATTORNEYS, DOCTORS, AND INDIVIDUALS COURT BENTON COUNTY CIRCUIT COURT TESTIMONY CARROLL COUNTY CIRCUIT COURT U.S. FEDERAL BANKRUPTCY COURT WASHINGTON COUNTY CIRCUIT COURT GEOGRAPHIC NORTHWEST ARKANSAS AREA SERVED WASHINGTON, BENTON, CARROLL & MADISON COUNTIES 54 • Regulatory Compliance - Minimum Standards Checklist Federal regulations for lending institutions regarding appraisals were amended as of June 7, 1994. These regulations require 5 Minimum Standards for appraisals performed for federally related transactions. The following checklist states each of these minimum standards and the appraisers compliance there of: Conform to generally accepted appraisal standards as evidence by the USPAP unless principles of safe and sound banking require compliance with stricter standards; The appraisers certify that this appraisal meets the minimum appraisal standards currently required by the USPAP. 2. Be written and contain sufficient information and analysis to support the institution's decision to engage in the transaction; This requirement has been met through the use of the following narrative appraisal report. See Body of Report. 3. Analyze and report appropriate deductions and discounts for proposed construction or renovation, partially leased buildings, non -market lease terms, and tract developments with unsold units; X The subject property is not a proposed construction, partially leased, or a tract development. Hence, this requirement is not applicable. See Income Approach Method. See Correlation, Analysis, and Conclusion. The subject property is to be owner occupied upon the completion of remodeling, consequently, no deduction or discount is necessary. 4. Be based upon the definition of market value as set forth in the regulation; The appraiser has based the appraisal upon the definition of Market Value, as developed by FNMA, and FHLMC. See Definition of Market Value. Page 11. 5. Be performed by State licensed or Certified appraiser. Mark E. Risk is a State licensed Certified General Appraiser (#CG0202) and is in good standing with the state's regulatory board. 55 V. APPRAISAL REPORT James McClelland Jr., et.al. 100 acres M.O.L. Persimmon St. Fayetteville, AR By The Real Estate Consultants 118 N. East Ave By Fayetteville, AR 72701 (c) Copyright 1998 by The Real Estate Consultants THE REAL ESTATE 118 N. East Ave. P0. Box 728 CONSULANTS Fayetteville, R 72702 REALTORS • APPRAISERS • CONSULTANTS • September 25, 1998 Mr. Ed Connell City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 RE: Appraisal Services Dear Mr. Connell: Phone (501) 442-0762 James E. McClelland, Jr. et.al. Pt. of the NEI/4 of Sec. 14, T16N, R31W Appx. 100 AC S of Persimmon & E of 54", Fay., AR In compliance with your request, and for the purpose of estimating the Market Value of the above captioned property, I hereby certify that I have personally inspected the property and made a survey of matters pertinent to the estimation of its value. The intended use of this appraisal is for purchase evaluation purposes of the City of Fayetteville. I further certify that I have no interest, present or contemplated, in the property under appraisement, and that the fee was not contingent upon the value estimate reported, nor based upon a percentage of the appraised value. The following narrative appraisal report contains the data gathered in the investigation, and shows the method of appraisal in detail. The report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Foundation. This is considered a Complete Summary appraisal. Based upon the inspection of the subject property and the investigation and analysis carried out in this report, it is the considered opinion of the appraiser that the Market Value of the property as of September 16, 1998 and subject to the assumptions and limiting conditions set forth within the body of this report, is as follows: NINE HUNDRED THOUSAND DOLLARS ($900,000) Res t Submitt< Mar . Risk, GAA Stat Certified General Appraiser #CG0202 ..... • SUMMARY OF SALIENT FACTS & CONCLUSIONS LOCATION MAP PICTURES PROPERTY IDENTIFICATION H. HISTORY & LEGAL DESCRIPTION DEFINITION OF MARKET VALUE ASSUMPTIONS AND LIMITING CONDITIONS THE APPRAISAL PROCESS SCOPE OF THE APPRAISAL AREA ANALYSIS NEIGHBORHOOD DATA SITE DATA TOPOGRAPHIC MAP IMPROVEMENT DATA TAX & ASSESSMENT DATA ENVIRONMENTAL ANALYSIS HIGHEST AND BEST USE ANALYSIS MARKET TRENDS DETERMINATION OF MARKET VALUE THE MARKET DATA APPROACH COMPARABLE LAND SALES MAP COMPARABLE LAND SALES SUMMARY & ANALYSIS OF COMPARABLE LAND SALES & ESTIMATION OF VALUE CORRELATION, ANALYSIS & CONCLUSION CERTIFICATE OF APPRAISER ADDENDUM WATER LINE MAP SEWER LINE MAP ZONING MAP FLOOD PLAIN MAP WARRANTY DEED QUALIFICATIONS MINIMUM STANDARDS CHECKLIST 1 2 3-7 8 9 10 11-15 16 17 18-19 20 21 22 23 24 25 26 27 28 29-40 30 31-37 38-40 41-42 43-44 45-55 46 47 48 49 50 51-54 55 Property Type: Large acreage Presently utilized as a Cattle Farm Location: .5 Mile South of Wedington Drive (Hwy. 16W), at Persimmon & Cty. Rds. #648 & #649, Fayetteville, AR Effective Date of the Appraisal: The effective date of the appraisal is the date of inspection, which was September 16, 1998. The opinions set forth in this report are stated as of September 25, 1998. Zoning: None - Outside City Limits Site: Appx. 100 acres (Subject to Survey) Improvements:. Old Barn, Farm Fencing Utilities: All municipal utilities Available Highest and Best Use: Single Family Residential Development Flood Data: Zones A & X, FEMA Map #05143C0095 C (See Flood Plain Map) Value Indications: Market Data Approach $ 900,000 Cost Approach NA Income Approach NA Final Estimate of Market Value $ 900,000 Note: This appraisal report has been prepared for the exclusive benefit of The City of Fayetteville. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparer's written permission, does so at their own risk. This report is considered a complete summary appraisal. 1 ELM F', i:)" �•.. :.Sr�JIt ♦ rVl- v...,♦�a`) tl r" {:�L,�' • YI • 4}T .r L. . SP RING 5�'li. St II : .... L. v.irr� Zf\Yt,$C ' 1}y r ;,r <ifjw i' 1 .xI Lr I F1 '��el i•.fy: r! �• CP(t R .•. t+>•F ) I}e %tr` - � 1 � .;�,• r. ' '144. 0'r-'llt\'. 9J�tis "^r • JO 1 e I:' _ �'I a i�tl4v T•1 / '• rhr +,�LR^MJ, 1{['' r' I\ i;i • •/•, r�l!: Y 3 .It (' i • 10 .'l)]w � r0 0 f, }SI r•F''11ijjM1 �FFn 3�M�r4• l�„'1 �yj�v. ? p�.F'.'•C- ' _ � � 1 � C I ]I 91 :i.i ' 4'� _.� r�J��I1VU04�L�� ^W�J3I • \ IY�}'`-'a ��-�I � a_] -•--.T. _ rl � - <i fir .jv�• 'y�LI r1� � pY .{^ > Y 1• a � _'„ � •( r y .r, n . %�' r. �♦ LOk2 � • i, w' i I!:2 '1•%jy yi� hf ZAn1i�{�S•�aiN "ah''r`yl- "T i. n 4,,f5 u ,1. ZI / Y i Ca.. 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IJ' n!h✓`�l.lh'J�':il+`!r r l' 1 .i. w i 1. •i -- ... ::1 I • �-J` f •,:_;:¼. y 'i �YY!iRr,.r� ri1 J :-r S. LM1 ax... .. .� k A •r r � • t /T I':.. •..ta • (..I`.. JLi •I II •..'.• p( /' I ..•. M1\: `'.(r ,.;:/. • J I IY.a.jiLLI•p:Ij .. .ir. •Ti - :5•. l .i ... r•f•. '.Y `:1': • •.A ,yy -•!, .. li • - - Y••�l wi A / '. •_t J. 1' •/ y r.•/.'. \ •.' .- . .• t . , • • • '.:Y. _' i - g • / III r 1. ) ill H: I I4_ I4J .....__&:,1_ if / Y K 7 it 1 1 ,CYy , •>-25-�-'yam-• ��<tfit. F1.I':, •, n `T f:+u I Jlf 1 S Gv , •ire ♦ • • •' aTl.--.'4,..�./'i-- . f..iC:w. flr et'g t • • • .r i YS:.a •C: %]`L.•)•1J;2...c1Y�\e..?Yp �:::' I .II !. .y. . ���.-. %' ., La\.. _ •.. ^ iM—+T Vi:tA' �11i.G.ft L i 1 `/'}rRi,1♦ i�'F♦`y, t ..F 't ,: tc n� -�� Y •. : tl ( '`h M tvS O J9 1��}y�_ •r//��yy 9ja$'�' r �w . r, i 1 , v ♦ .'t"'.I `iyT1F�'J' .1 I/Ir'vZy✓i I r cT ' i't r i' l' 11 .! r_, l •.3 "� V \ ? I r'• rJh♦' y'. `- (•l r �1it fyr >C u1li'ii. ��lcY JYrI�~.T �' rr. •f .r li�. • ♦. .il Y:!. � 3 / � -Ia5� 2 r ♦ r �n i'' awv { •I •� r rr�t' n'.iec. . I. ,•. \•P -• fl I. - - MVP.(.'♦ :. 1• h a' - The property under appraisement is an approximately 100 acre tract .5 mile south of Wedington Rd. between County Rds. #649 & #648 and south of Persimmon St.. The subject is currently utilized as a cattle farm. It is located just south and west of the city limits, near the west -central portion of Fayetteville, Washington County, Arkansas. As of effective date of the appraisal, the owner of record of the subject property is: James Edward McClelland, Jr., Raymond Kirk McClelland, and Linda McClelland Rogers as Tenants in Common This appraisal is made for the purpose of estimating the Fair Market Value of the subject property as of the date contained herein, and under the contingent and limiting conditions set forth in this report. The intended use of the appraisal is for purchase evaluation purposes of the City of Fayetteville. The effective date of this appraisal is the date of inspection, September 16, 1998. 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. 21 The subject property has been held by the present owners since January 18'", 1990. The current owners are the children of Maurice A. & James E. McClelland from whom they received title in 1990. The subject property has been in Maurice McClelland's Family for many years. There have been no transactions affecting the subject property within the past three years. Per Deed Book 1352, Page 500: * See attached Deed in Addendum of this Report. 9 The Federal National Mortgage Association (Fannie Mae) 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: 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. S. 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." It should be noted that market value and market price (what price a property actually sells for) are often not the same. The appraiser's estimate of market value is his prediction of the most likely selling price under the stated conditions of the report. Actual market prices are often influenced by unknown or hidden factors; thus, an appraisal does not guarantee that a sale will occur at market value. 10 ACCEPTANCE OF AND/OR USE OF THIS APPRAISAL REPORT BY THE CLIENT OR ANY THIRD PARTY CONSTITUTES ACCEPTANCE OF THE FOLLOWING ASSUMPTIONS AND LIMITING CONDITIONS: Limit of liability: The liability of TREC, Inc., dba The Real Estate Consultants, Mark E. Risk GAA, and associates and employees is limited to the client only and to the fee actually received. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignments. The appraiser is in no way to be responsible for any costs incurred to discover or correct any deficiencies of any type present in the property - physically, financially, and/or legally. In the case of limited partnerships, client agrees that if any lawsuit brought by a lender, partner, part owner, tenant, or other party, results in any award or settlements of any type in such suit regardless of outcome, that the client, who is the intended sole recipient of this report, will hold the appraiser completely harmless in any such action. Copies, publication, distribution, and use of the report: Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for any purpose other than its intended use. The signer of this report is a candidate for membership in the National Association of Independent Fee Appraisers, and a member of the National Association of Realtors and its Appraisal Section. The Bylaws and Regulations of these organizations require their members to control the use and distribution of each report signed by such member. Therefore, except as hereinafter provided, only the party for whom this report was prepared may distribute copies of this report, and only in its entirety, to such third parties as may be selected, but not without prior written consent and approval of the signatory of this report. The physical report remains the property of the appraiser for the use of the client. 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 he is connected, or any reference to the National Association of Independent Fee Appraisers, the National Association of Realtors or any designations shall be disseminated to the public through the advertising media, public relations media, news media or any public means of communication without prior written consent and approval of the signer of this report. The authentic copies of this report are sealed with my Seal. Any copy that is not so sealed is unauthorized and may have been altered. 11 Confidentiality and trade secrets: This appraisal consists of trade secrets and commercial or financial information which is privileged and confidential and exempted from disclosure under 5 U.S.C. 552 (b) (4). The appraiser may not divulge the material•, contents of this report, the analytical findings and conclusions, or give a copy of this report to anyone other than the client or his designee as specified in writing - except as may be required by the National Association of Independent Fee Appraisers,- the National Association of Realtors, or other organizations as they may request in confidence for ethics enforcement, or by a court of law of body with the power of subpoena. This appraisal is to be used only in its entirety and no part is to used without the whole report. No change of any item in the report shall be made by anyone other than the appraiser, and the appraiser shall have no responsibility if any such unauthorized change is made. The client shall notify the appraiser signing the report of any request to reproduce this appraisal in whole or part. Testimony, consultation, and completion of appraisal services: The contract for appraisal, consultation, or analytical services is fulfilled and the total fee payable upon completion of this report. The appraiser or those assisting in preparation of this report will not be asked or required to give testimony or be subpoenaed in court of any public or private hearing because of having made this appraisal, in full or in part, nor engage in post appraisal consultation with the client or third parties except under separate and special arrangement and at additional fee. A MINIMUM TWENTY DAYS NOTICE MUST BE GIVEN BEFORE O 1RT APPEARANCE FOR PURPOSES OF REVIEW AND STUDYk If testimony or deposition is required because of any subpoena, the client shall be responsible for any additional time, fees, and charges regardless of the issuing party. Information used: No responsibility is assumed for the accuracy of information as to description (legal, physical, etc.) of the premises, restrictions, improvements, and income features of the property furnished by others, the client, his designee, or public records. All information furnished by others is assumed to be true, correct, and reliable and a reasonable effort has been made to verify such information. An impractical amount of time and money would be necessary to furnish unimpeachable verification in all instances. It is suggested that the client consider independent verification if so desired before making a significant commitment regarding the subject property. No responsibility for the accuracy of data and information obtained or the work of possible subcontractors is assumed by the appraiser. 12 Purchasing power, value change, and market influences: The estimated market value and the costs used relate only to the effective date of the appraisal. All dollar amounts are based on the purchasing power and price of the dollar as of the date of the value estimate. Market value is highly related to exposure, time, promotional effort, terms, motivation, and conditions surrounding the offering and subject to economic changes in the marketplace over time. In appraisals involving the capitalization of future income benefits, the estimate of market value reflects the appraiser's interpretation of income, yields, and other factors derived from general and specific market information. Such estimates are as of the date of appraisal and subject to dynamic changes in the financial markets that may occur. Legality of use and related studies: This report is based on the premise that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless non-compliance is stated, defined, and considered in the report. It is assumed that all applicable zoning, building codes, and use regulations and restrictions of all types have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. It is assumed that all required licenses, consents, permits, or other legislative or administrative authority from any local, state, or federal government and/or private entity or organization have been or can be obtained or renewed for any use on which the value estimate in this report is based. No environmental or impact studies, special market study of analysis, highest and best use analysis study, or feasibility study has been requested or made unless otherwise specified in an agreement for services or in the report. The appraiser reserves the unlimited right to alter, amend, revise, or rescind any of the statements, findings, opinions, values, estimates, or conclusions based upon any subsequent study or analysis, or any previous study or analysis pertinent to the assignment that becomes known to him after the report is finished. Legal and financial assumptions: No responsibility is assumed for matters of a legal nature affecting title to the property nor is an opinion of title rendered. The title is assumed to be good and merchantable. The property is appraised in gross as free and clear of all mortgages, liens, encumbrances, leases, and servitudes unless so specified within the report. If this appraisal is used for mortgage loan purposes, it should be noted that specific loan ratios, term amortization, and equity requirements have not been suggested. This appraisal report and value estimate are subject to change if the physical or legal entity or financing is different than that envisioned in this report. 13 Architectural, structural, mechanical, and engineering assumptions: No responsibility is assumed for matters of survey, architectural, structural, mechanical, or engineering nature. The legal description used in this report is assumed to be correct as furnished by the client, his designee, or as derived by the appraiser. 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 to trespass unless noted within this report. The appraiser has inspected, as far as possible, by observation the land and the improvements thereon. However, it was not possible to personally observe conditions beneath the soil, hidden structural components, or any mechanical components within the improvements and no representations are made as to these matters unless specifically stated and considered in this report. This appraisal is based on there being no hidden, unapparent or apparent conditions of the property site, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for any such conditions or for any expertise or engineering needed to discover such factors. The appraiser does not warrant against the occurrence of problems arising from the soil conditions. All mechanical components are assumed to be in operable condition and states standard for properties of the subject's type. Conditions of heating, cooling, ventilating, electrical, and plumbing equipment is considered to be commensurate with the conditions of the balance of the improvements unless otherwise stated. No judgment is made as to the adequacy of insulation or energy efficiency of the improvements or equipment. The lender, owner, or buyer should inspect the property before purchase or any disbursement of funds. Any of those parties may wish to require mechanical or structural inspection by a qualified and licensed contractor, civil or structural engineer, architect, or other expert. The appraiser has not been requested to make an investigation of the possible existence of any potentially hazardous insulation or material used in the construction or maintenance of the building, or the possible existence of toxic waste which may or may not have been stored on the property or the possible existence of radon gas on the property. The appraiser represents that he is not qualified to test for the presence or absence of such items and has not considered, and assumes no responsibility for, such products which might render the property more or less valuable. The client is advised to retain an expert in this field if this information is presumed appropriate and necessary. This appraisal has not considered conditions relating to surface or subsurface waters; including, but not limited to water table, flood plain, flood hazard, or rights, if any, claimed nor or in the future in riparian lands and drainage - unless otherwise noted in this report. The appraiser assumes no responsibility for any costs or consequences arising from the need for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. E Management of Property: It is assumed that the property being appraised will be operated under prudent, responsible, and competent ownership and management - being neither inefficient nor super efficient. Si Exhibits: The sketches and maps in this report are included only to assist the reader in visualizing the property and are not necessarily to scale. Various photos, if any, are included for the same purpose and are not intended to represent the property in other than actual status as of the date of the photos. Site plans are not surveys unless shown from a separate surveyor. Component values: The distribution of the total valuation in this report between land and improvements applies only under the reported highest and best use of the property. Neither the analysis and conclusions herein, nor the allocations of value for land and improvements may be used in conjunction with any other appraisal and are invalid if so used. Personal property: Furnishings, fixtures, or equipment of the business operation except as specifically indicated and typically considered as a part of the real estate have been disregarded unless otherwise stated. For some property types, business and real estate interests and values are combined. Federal after tax analysis: Any after tax income and investment analysis or measures of return on investment are intended only to reflect possible and general market considerations at an assumed value of price paid. The appraiser does not claim expertise in tax matters and advises the client and any other person using this appraisal to seek competent tax advice. The appraiser is in no way to be considered a tax or investment advisor. 15 1.I 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 employment and commercial centers, industry, residential neighborhoods, schools, etc.. After a thorough analysis of the subject, its neighborhood and general area, the appraiser then attempts to ascertain a fair market value. Three time -tested appraisal approaches are utilized in the profession in order to develop a value indication. These approaches are the Market Data Approach, the Cost Approach, and the Income Approach. Each approach is described as follows: The Market Data Approach - A comparison is made between the subject property and similar properties which have sold recently in the market place. The Cost Approach - A replacement cost new of the improvements is determined and the applicable amount of depreciation is deducted in order to obtain a value estimate. The Income Approach - Bases a value estimate upon the amount of net income the property can reasonably produce over its expected lifetime. 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 upmost - 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. With respect to the subject property, only the Market Data Approach is considered applicable. 16 The scope of the appraisal encompasses the necessary research and analysis to prepare a report in accordance with its intended use/ the Standards of Professional Practice of The National Association of Independent Fee Appraisers, and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. This appraisal is based upon the information gathered by the appraiser from the public records, other identified sources, and an inspection of the subject property and neighborhood. Data believed to be unreliable was not included in this report nor used as a basis for the value conclusion. The subject property was physically inspected by the appraiser on September 16. 1998. The appraiser inspected the property alone. Mr. Ep McClelland was contacted and declined to accompany the appraiser on the inspection. Mr. McClelland did express that his family intended to develop or subdivide the property at some point in the future. He further indicated that a plat for a subdivision had been prepared in the past. The subject photographs were taken on the above date. Area, city, county, and neighborhood data were based on information in the Real Estate Consultants library and files. The neighborhood section was based upon a physical inspection of the area as well as data from the City of Fayetteville and Washington County. The subject property data was based upon the physical inspection of the property and information obtained from municipal authorities. In evaluating the highest and best use for the subject property, an analysis was made of data compiled in the steps noted above. In addition, a study of the farm and residential acreage market in the subject area has been made to help determine the highest and best use of the subject property. In developing the appraisal approaches to value, market data used were collected from the Real Estate Consultants' office files; other appraisers, Realtors, courthouse records, or persons knowledgeable of the subject property marketplace; and the municipal offices in the Northwest Arkansas area. After assembling and analyzing the data defined in this scope of the appraisal, a final estimate of market value was made. 17 Fayetteville, Arkansas is the county seat of Washington County, the home of the University of Arkansas, and the largest city in the two -county area comprising Washington and Benton Counties. This area is located in the Ozark Mountains in the extreme Northwestern portion of the state. The geographic and political boundaries consist of the Missouri line to the north, Oklahoma to the west, Crawford County to the south, and Madison and Carroll Counties to the east. - Fayetteville, Arkansas is served by U.S. Highways 71, 471, 62, and State Highways 16, 45, 112, and 265, plus numerous farm to market roads. Transportation facilities consist of adequate bus service from the Jefferson Bus Line. The city has modern air terminal services, and has recently expanded its facilities. A handful of large and small airlines provide around the clock connections to all parts of the world. Total enplanements for 1997 numbered approximately 250,000. There are numerous truck lines and one railroad providing adequate freight service to all points. There are approximately 75 Houses of Worship of most denominations in the City of Fayetteville. Education needs are supplied by ten elementary schools, two junior high schools, one high school, one polytechnical school, one business college, and the University of Arkansas. The Fayetteville Public Library serves the city and is affiliated with the Ozark Regional Library System. The population of Fayetteville now stands at more than 50,000. A special census conducted in 1997 placed the city's population at appx. 53,000. This is a ten percent increase from the 1990 general census. The population growth in Northwest Arkansas is ahead of the state and national averages. Growth rate during the 1990's has averaged 2% or more per year. The Washington - Benton Counties M.S.A. had a total nonfarm work force of 139,900 as of June 1998. The employment security division reported an unemployment rate of 3.3 percent, below state and national averages. Most of the economic strength of Washington County can be attributed to three sources. 1. The University of Arkansas at Fayetteville 2. The poultry industry centered in Springdale 3. A wide variety of small industries and retail trade business Enrollment for the Fall semester of 1998 at the Fayetteville campus has been estimated to be 14,800. Since nearly half of Fayetteville's population is made up of students and university employees, the school's influence on the area is quite strong. Approximately 40 industries consisting of poultry/food processing plants, automobile equipment & tool manufacturers, clothing manufacturers, business forms, pipe fitting, etc., reside in the area. Area Analysis (Cont'd.) These firms produce a wide variety of items but there is no heavy industry of the type that tends to cause pollution. Washington County leads the nation in broiler production, is second in egg production and third in turkey production. The Northwest Arkansas Plaza, a regional shopping mall located on U.S. Highway 471 between Fayetteville and Springdale, is the major retail trade center. Downtown Fayetteville has undergone a renovation and now constitutes the financial center of the area. Completed projects within the past ten years include several banks, a continuing education facility, a Hilton Hotel, and the Walton Arts Center, all of which will focus more attention on the downtown area. Total retail sales estimates in Northwest Arkansas have been increasing at an approximate 6% annual pace. Area bank assets and sales tax revenues also continue to increase annually further reemphasizing the area's economic health. The area's economy is strengthened by the availability of an adequate supply of public utilities. Natural gas is provided by the Arkansas Western Gas Company at charges comparable with the low side in the industry. A coal-fired, steam -generating electrical plant is located in Gentry, Benton County, Arkansas. This plant will supplement the existing supply of electricity and afford the area with an ample supply for the next 20 years. An important natural resource in Washington and Benton Counties is an abundance of water. Beaver Dam and Reservoir was formed and completed in 1966. This lake situated of the White River in the eastern parts of Washington and Benton Counties provides a source of electrical power, good clean water for the major cities of the area, and recreational facilities. At the present time ample amounts of mortgage funds are available through local lending institutions. Interest rates have declined from the historically high levels of the late 1980's and are considered relatively stable at the present time. Real estate activity is currently healthy, although all market segments show signs of increased competition and static price pressures, mainly due to overbuilding and slightly decreased demand. In spite of this, the market is still strong overall, reflecting demand for both real estate and money in the Fayetteville area. In conclusion, the amicable climate, atmosphere, and people of the area along with a favorable economic forecast, indicate a bright future for Washington and Benton Counties. r 19 r inn etiS 1 ti: ox,j 'J,yae Location: Wedington Drive (Hwy. 16W) % Developed: . 60%• Growth Rate: Steady Property Values: Increasing Present Land Use: 50% Residential/Agricultural 10% Commercial 40% Agricultural/Undeveloped Change in Present Land Use: Likely, from Vacant/Agricultural to Residential Predominant Occupancy: Owner Adequacy of Utilities: Average Property Compatibility: Average Police & Fire Protection: Average General Appearance of Properties: Average Accessibility: Average Age of Structures: New -30+ Yrs. Appeal to the Market: Average to Good Comments: The area of Wedington Drive west of the Hwy. 71 Bypass intersection has been steadily developing since the late 1980's. For the most part, focus has been placed mainly on residential subdivisions, with commercial portions just now beginning to emerge. The Wedington Drive neighborhood has become one of the more appealing residential areas for middle income families in West Fayetteville. This growth has resulted in increased traffic congestion, one of the few negative aspects of the increasing appeal. 20 SITE DATA Land Dimensions: Subject to a Legal Survey Total Size: • Approximately 100 acres Street Frontage: Approx. 2,640' along Persimmon St., Approx. 1,650' along both County Rds. #648 & #649 Zoning Classification: None Electricity: Ozark Electric Cooperative Natural Gas: Arkansas Western Gas (Available along Persimmon and Cty. Rd. #649) Water: City of Fayetteville (Available along Cty. Rd. 649 - 8" Line and Persimmon St. - 2" Line) Sanitary Sewer: City of Fayetteville (Available at northeast corner of subject Property along Creek - 8" Line) t * Prore,1 men or be Cec F be-I.e.. ca. ` -e- used Street Access: From Persimmon St., Cty. Rd. #649 and Cty. Rd. #648, off of Hwy. 16W. Topography: 100% cleared, gently rolling pasture. Pasture planted in fescue and Bermuda grasses. Shape: Rectangular M.O.L. View: Above Average Drainage: Adequate Upon Inspection Comments: The subject property is a prime tract of land in very close proximity to newly developing residential areas of West Fayetteville. The property has been utilized as a large -acreage cattle farm for years. When considering neighborhood trends, it is obvious this is not the highest and best use of the subject property. The subject is located outside the city limits of Fayetteville, but is within its planning area. Although still not zoned, the development potential of the land far exceeds the value of the subject as currently utilized. The subject property is currently encumbered with a sewer and a large natural gas transmission line easement. All utilities are available to the site. There is a small pond on the site and a small wetland area. 21 "� �, Topographical Map 3994 O Xtj _`P I ♦ Pa ( c, •2L •e� a �� n ♦ II i \ ii i " u nTra filer I n I% J n e 1I 10 ft_*pl • ` /242 11 /25/ Z 2 C. • ii (/. 1 .. 1. > \AO ` Q/ // `11 ,\ ' % /2401 O \O ti m0 Spriat9 P� 1 \ � �_ � .-- ✓ 1\\ Q /229 a n 1 l2/9, " ( 1243 N 11 N 11 O \ 1 1 • 1 / T / r��LeL.,r6LCLL<F �+♦/ r f p\ 1 o o/ I e /232 o �b 0 ( '° /365"` °.// �a � L i ' _LTnO L'• 3.91 l 2 O Ofa S. ° TAX AND ASSESSMENT DATA The Assessor's Office of Washington County has valued the subject real property as follows: Parcel 001-11771-000 Assessor's Appraisal Assessment Land $ 14,900 $ 2,980 Improvements $ 0 $ 0 Total $ 14,900 $ 2,980 Millage Rate = 37.9 mills Estimated 1997 Taxes = $ 112.94 The assessed valuation in Washington County is based on 20% of the total estimated value. These valuations should be used as a guide only, since they rarely reflect Market Value. The subject was last assessed in 1997. 24 •The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the subject property negatively. The value estimated in this report is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions. However, the appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. It is unlikely but possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental environmental conditions on or around the property that would negatively affect its value. The appraiser did note a small wetland area near the southwest corner of the subject property. 25 The Appraisal Institute defines highest and best use as follows: "The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability. The following tests must be met in estimating the highest and best use of the subject: 1. It must be physically possible based on the subject site characteristics. 2. It must be a legal use under current or likely zoning regulations. 3. It must be probable and not based upon conjecture or speculation. 4. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject property by the appraiser. It is the appraiser's opinion that the highest & best use of the subject as if vacant would be for the development of a single family residential subdivision. In order for this use to be feasible, the subject would need to be annexed into the city of Fayetteville and the zoning would need to be changed to R -I (Single Family Residential). Considering current neighborhood trends, this change would likely be approved by city planners. 26 Northwest Arkansas has just undergone a significant growth period, with strong demand for real estate in general. Currently, the market remains solid, with some softening observed in all residential sectors due to oversupply and slightly decreased demand. The Northwest Arkansas area continues to prosper, with advances in per capita income, and extremely low unemployment rates. The 1990's have seen upward pressure on real estate values in the local market place. Regarding development and vacant land such as the subject, Multiple Listing Service data from the Metro Area Board of Realtors indicates an average marketing time for 1996 to be 227 days and 181 days in 1997. The appraiser has estimated a normal marketing period for the subject property of six to twelve months. The appraiser is not aware of any listings, offers, or recent sales regarding the subject property. The subject's current owner reported being approached at different times by interested parties wishing to purchase the subject property. No offers were reduced to writing. 27 An appraisal of real property is an attempt by the appraiser to so called "Mirror the Market"; that is, to reflect the attitudes of the typical buyer and seller in the marketplace. 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 MarketData Approach - A comparison is made between the subject property and similar properties which have sold recently in the market place. The Cost Approach - A replacement cost new of the improvements is determined and the applicable amount of depreciation is deducted in order to obtain a value estimate. The Income Approach - Bases a value estimate upon the amount of net income the property can reasonably produce over its expected lifetime. Each approach utilizes the various principles of value which exist in the marketplace. These value principles include supply & demand, balance, contribution, conformity, external items, opportunity cost, and upmost - 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. With regards to the subject property, only the Market Data or Sales Comparison Approach is deemed applicable. 28 The Market Data Approach or Sales Comparison Approach is an attempt to measure the reactions of typical buyers and sellgrs in tpe market. In this approach a direct comparison is made between the property being appraised and comparable properties which have either sold recently, have received bonafide offers by prospective buyers, or are currently offered for sale. The value of the property being appraised is inferred from the selling prices, offers, and asking prices of the comparable properties. To be "comparable" a property need not be identical to the subject. The word "comparable" is used in its ordinary sense meaning something which is capable of being compared with or worthy of comparison. The appraiser assumes that a typical buyer in the market will not pay more for the subject property than it would cost to buy a comparable substitute property. The price a typical buyer is willing to pay is generally the result of an extensive searching process in which he is constantly comparing alternative properties. In the meantime, the typical seller is usually trying to obtain the highest possible price for his property based upon his knowledge of the market place. In applying the Market Data Approach, the appraiser takes the following steps: 1. Researches the market for available comparable properties for which actual sales, listings, or offerings have occurred. 2. Confirms the prices and bonafide nature of the data and qualifies the terms and motivating forces. 3. Compares the property being appraised with each of the comparable properties, under the general division of location, time, physical characteristics, and other economic factors. 4. Formulates an opinion of the market value of the property being appraised based upon the price of each comparable property. Pursuant to the appraisal of the subject property, the appraiser has researched the courthouse records, reviewed his files, and interviewed area Realtors and lenders in order to locate recent market activity involving properties comparable or similar to the subject. The following sales were selected for comparison with the subject property. 29 m :� ]$k;N: PRINGS•tv !::,f i.: ,4--'\... 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[ 1 K_[-�,II4 •o♦ 62 l41 t r .K - _+II ;s ;;rl.: *,a ' "2'( Ion i ..r. , f' i"� • y •.: 3 2 ZY5 •A u.ws'C_ t. 59::.•...Sr I Sim:'''l °': 156 P- r 1 I 13 .. :.. '1iLk, ,•'.. . . .'� .p Dole OY 5 . 04� p::T •r �. ., • 66 36f ^ 3 263 1177 v:rl:F�ad'_ n^.^' . .. -' .2. . - 1 .+id53 15 `�''I :i]o-r•�'ni - .'•{''^i. 1 >'.-', fL f a • ♦ l� 36 Sr 6 I rGRE ENLaNO >; J I 5! ] s19 � .I�.• I mow; -: -Y✓J NC L ��?�.,. L1_. 11' wa nyl 1 5 , \ •51. 'J iy/ I, . LLi .i{ , . • 69 1 l G fA - rb a .. 1 � JBUU n n r. nmJ r..e t I ] / •2,. 3! /Td yn .vi ' J v Vr_ .r fi eft+ •re '1l / , 'J4 •'a 32 ",a `)t f{,� :'•.(.Ii .>9 jl /- n24 I. ..,\L ?.Y=`j•3.l r.✓ 061 ... �C)Y 1 1164 •I,• y \R'%>I �4` 4'>41' II11 .t' K.4 C21 2B'• -)r ♦. }i _ . J IIIIIl ... V>l� 2 M16 12 lI I • roil M1P �, .• 5[. �ISZSTCr-C r(e♦. 9�%v �tll F re' Grantor: William T. & Sylvia J. Neu Grantee: Ralph O. Walker Construction Date of Sale: 10/24/97 Legal Description: Pt. SW/4 of SE/4, Section 8 & Pt. N/2, NE/4, & Pt. NE/4, NW/4 Section 17, T16N, R31W Size: 124.50 Acres Location: Off West side of Harmon Rd. appx. .25 miles south of Wedington Rd., Approximately 3 miles west of subject. Sales Price: $310,000 Indicated Price: $2,490/Acre Remarks: Mostly cleared, rolling acreage lying appx. 1000' off Hwy. 16W. This area west of the subject is much less developed. This property does not have sewer or gas. Larger tract. Purchased by developer. Residential subdivision now under construction. Grantor: George & Peggy Diffin Grantee: James & Rae Dunn Date of Sale: 5/10/96 Legal Description: Pt. of the SW1/4, NW1/4 of Sec.25, T16N, R31W Size: 17.84 acres Location: Cty. Rd. #267 south of Hwy. 16, Southeast of Farmington Sales Price: $170,000 Indicated Price: $9,529/acre Remarks: This property is located approximately two miles south of the subject. It has frontage along the Cty. Rd. #267. It is outside the City Limits of Fayetteville and Farmington. Cleared level pastureland. Small creek. Water available, no sewer. 31 II Al WI Grantor: Ruth Kendall, et. al. Grantee: Springdale Warehouse, Inc. Date of Sale: 2/9/93 , Legal Description: Pt. of the SW/4, NW/4 & Pt. of the W/2, SW/4 of Section 7, T16N, R30W Size: _ 76.35 acres Location: South side of Hwy. 16W at the Salem Rd. intersection Sales Price: $358,000 Indicated Price: $4,689/acre Remarks: This land is northeast of the subject. It has frontage on Hwy. 16. It is now the site of the Sports Park. This land was all wooded and considered inferior to the subject land. Grantor: Hayden & Mary Joe Mcllroy Grantee: Mcllroy Land Investments, Inc. and Robertson Oil Company Date of Sale: 7/21/94 Legal Description: Pt. of the S/2 of Section 12, T16N, R31W Size: Approx. 140 acres Location: South side of Hwy. 16W at the Rupple Rd. intersection Sales Price: $845,000 Indicated Price: $6,035/acre Remarks: This land is northeast of the subject with Hwy. 16 frontage. A portion of this property has been subdivided into the Meadowlands Subdivision. The sale involved a related party, but is considered to be arm's length. Grantor: Grantee: Date of Sale: Legal Description: Size: Location: Sales Price: Indicated Price: Remarks: J. D. Hall C & B Land & Cattle Co., Inc. 05/15/95 Pt. E/2 of NW/4, Section 11-16-31 46.18 Acres North side of Wedington Drive, appx. .75 mile west of subject. $347,000 $7,514/Acre Somewhat cleared rolling pastureland with frontage along Hwy. 16W. Current site of Heritage Village S/D. Re -zoned by buyer to R-1.5. 32 Grantor: William & Carolyn Coleman Grantee: Alan Walker Construction, Inc. Date of Sale: 2/24/95 Legal Description: Pt. of the SE/4 of N$/4, & Pt. of NE/4 of SE/4 of Section 24, T16N, R31W Size: 36.58 acres Location: Hwy. 62 and Dinsmore Trail, Approx. 1 mile southeast of the subject. Sales Price: $250,000 Indicated Price: $6,834/acre Remarks: Level to gently rolling acreage with a small amount of frontage on Hwy. 62. Has access to all utilities. Now the site of the new Magnolia Crossing Subdivision. Grantor: Alan R. Clack, et.al. Grantee: Creekwood Hills Development, Inc. Date of Sale: 5/9/94 Legal Description: SW/4 of the SW/4; SE/4 of the SW/4; Pt. of the W/2 of the NE/4 of the SW/4, all in Section 1, T16N, R31W Size: 85.12 acres Location: Off of Mount Comfort Rd. West of Rupple Rd. Sales Price: $520,000 Indicated Price: $6,019/acre Remarks: Large tract sale of pastureland. Similar in appeal to the subject. Sewer available. Now the site of the Bridgeport Subdivision. Grantor: Grantee: Date of Sale: Legal Description: Size: Location: Sales Price: Indicated Price: Remarks: Lloyd & Frances Pond Castle Development Company 02/16/94 W/2 of NW/4 of NW/4, etc. Section 12-16-31 37.5 Acres Off north side of Wedington Drive, north of the subject. $135,000 $3,600/Acre Cleared, rolling acreage purchased for additional phase of Fieldstone S/D. Older sale of tract with characteristics similar to subject. Currently zoned R-1 & R-1.5. Zoned A-1 at time of sale. 33 Grantor: James & Suzanne Pond Grantee: Castle Development Company Date of Sale: 02/18/93 Legal Description: E/2 of NW/4 of NW/4, etc., Section 12-16-31 Size: 32.5 Acres Location: North side of Wedington Drive, north of the subject. Sales Price: $125,000 Indicated Price: $3,846/Acre Remarks: Mostly cleared rolling acreage with frontage along Hwy. 16W. First purchase of vacant land for eventual Fieldstone S/D. Comparison with more recent development sales gives good indication of market appreciation in the past few years. Older sale of tract in close proximity to subject. Currently zoned R-1 & R-1.5. Rezoned by buyers, A-1 at time of sale. Grantor: Bobby & Ina Hatfield Grantee: Pennington Developments, Inc. Date of Sale: 01/28/94 Legal Description: Pt. NE/4 of SE/4, Section 10-16-31 Size: 10.2 Acres Location: Off south side of Wedington Drive along Double Springs Road, appx. 1 mile west of subject. Sales Price: $82,000 Indicated Price: $8,039/Acre Remarks: Mostly cleared, rolling pasture with small portion lying in identified flood plain along Owl Creek. Current site of Owl Creek S/D. Older sale of smaller sized acreage with inferior land characteristics. Currently zoned R-1. Farmington School District. KV ►PI Grantor: Randall & Ruby Garrison Grantee: Ralph Walker & Carl Walker Date of Sale: 4/15/93 Legal Description: Pt. of the NE/4 of the NW/4; Pt. of the NW/4 of the NE/4, & SW/4 of the NE/4, all in Section 12, T16N, R31W Size: 45.7 acres Location: Wellington Rd. (Hwy. 16W), West of Rupple Rd. Sales Price: $175,000 Indicated Price: $3,829/acre Remarks: Older sale of acreage within close proximity of the subject. Site of Willow Springs Subdivision. tw;m1nrnatw Grantor: Crystal Springs Limited Partnership, Inc. Grantee: Dana & Donna Samples, Roy & Glenda Thompson Date of Sale: 2/25/97 Legal Description: The SW/4 of the NW/4 of Section 32, T17N, R30W Size: 40 acres Location: Salem Rd. north of Mt. Comfort Rd. Sales Price: $360,000 Indicated Price: $9,000/acre Remarks: Mostly cleared, level and lower lying pasture land. Purchased for future development into a residential subdivision. Located across the street from the new Holcomb Elementary School and the Crystal Springs S/D with all utilities available. 35 Grantor: Dewitt Goff Grantee: Meadows Enterprises, Inc. Date of Sale: 10/21/96 , Legal Description: Pt. of Section 24, T16N, R30W Size: 303 acres Location: Stonebridge Rd. south of Hwy. 16 E Sales Price: $1,654,000 Indicated Price: $5,459/acre Remarks: Mostly cleared, level and lower lying pasture land. This is the Dash Goff Farm and included some improvements which did not have contributory value to the buyer. This is now the site of the Stonebridge Golf Course. This is the first phase of additional purchases, next purchase is scheduled for October, and is reported to be $6,000/acre and $7,000/acre thereafter. W Lt U DIlit] Grantor: Nona B. Askew, Trustee Grantee: Walker Properties, Limited Partnership Date of Sale: 1/17/95 Legal Description: Pt. of the SE/4 of Section 29, Pt. of the E/2 of Section 32, Pt. of the SE/4 of Section 32, Pt. of the SW/4, NW/4 and Pt. of the NW/4, SW/4 of Section 33 all in T16N, R30W and the Frl. NE/4 of the Frl. NW/4 of Section 5, T15N, R30W. Size: 365.67 acres Location: Sunrise Mountain Rd., west of U.S. Highway 71 Sales Price: $1,000,000 Indicated Price: $2,735/acre Remarks: This is the sale of the Askew Farm along Sunrise Mountain Rd. in South Fayetteville, northwest of Drake Field. It included (2) dwellings, an old race tract, and misc, farm buildings. Most improvements were past their economic lives and given little contributory value. Purchased by the Walker Family who has holdings on Sunrise Mountain. 36 Grantor: Glenn W. Will, Trustee Grantee: John M. & Deborah Walker Date of Sale: 4/9/93 Legal Description: Pt. of N/2, SW/4, & Pt. of SE/4, NW/4 of Sec. 32, T16N, R30W Size: 70.17 acres Location:. . Northern area of McCollum Mountain off of Sunrise Mt. Rd. in South Fayetteville, west of Drake Field. Sales Price: $196,000 Indicated Price: $2,794/Acre Remarks: Mostly wooded, somewhat steep hilltop & hillside acreage. Purchased by adjoining property owners. Mountain top land with nice views. Grantor: _ Robert L. Dowell Revocable Trust Grantee: Northern Properties, Inc. Date of Sale: 4/24/97 Legal Description: Pt. of the S/2, N/2 of Section 30 and Pt. of the SW/4, NW/4 of Section 29 all in T16N, R30W Size: 162.31 acres Location: NW of the intersection of U.S. Hwy. 71 Bypass and Cato Springs Rd. in SW Fayetteville. Sales Price: $330,000 Indicated Price: $2,033/acre Remarks: South side of Washington Mt.. Mostly hillside land with some gently rolling pasture. No sewer available. Fair access. Grantor: Dr. J. B. Blakenship Grantee: Dr. Bruce Brown Date of Sale: 12/10/97 Legal Description: Pt. of the SE/4, SE/4 and the NE/4 of the SW/4 of Section 20, T17N, R30W Size: Appx. 56.37 acres Location: Hwy. 112 and Clear Creek, north of Fayetteville Sales Price: $355,000 Indicated Price: $6,298/acre Remarks: This is a bottom land and upland cattle farm on Clear Creek, northwest of Fayetteville. It is outside the city limits of any municipality. It did not have sewer or public water. It was purchased for a gentleman's ranch. ON Analysis of the Comparable Sales and Conclusion of Value The appraiser has researched the market area and found a significant amount of land sales in proximity to the subject. The appraiser has included 17 sales considered to be similar, and believes there is more than an adequate amount of data available to obtain a reliable value estimate of the subject land as if•vacant'and available for its Highest and Best use. Due to the subject's potential for a single-family residential development, a wide array of sales were researched and analyzed. The appraiser has included an above average amount of sales, but wanted to make sure no sales were overlooked in the area of the subject. The following table summarizes the comparable sales used. Sale # Date Size Sales Price S/Acre Comparability 1 05/96 17.84 AC $ 170,000 $ 9,529/AC Similar 2 10/97 124.50 AC $ 310,000 $ 2,490/AC Inferior 3 02/93 76.35 AC $ 358,000 $ 4,689/AC Superior 4 07/94 140.00 AC $ 845,000 $ 6,035/AC Superior 5 05/95 46.18 AC $ 347,000 $ 7,514/AC Similar 6 02/95 36.58 AC $ 250,000 $ 6,834/AC Superior 7 05/94 85.12 AC $ 520,000 $ 6,019/AC Similar 8 02/94 37.50 AC $ 135,000 $ 3,600/AC Similar 9 02/93 32.50 AC $ 125,000 $ 3,846/AC Similar 10 01/94 10.20 AC $ 82,000 $ 8,039/AC Similar 11 04/93 45.70 AC $ 175,000 $ 3,829/AC Similar 12 02/97 40.00 AC $ 360,000 $ 9,000/AC Similar 13 10/96 303.00 AC $ 1,654,000 $ 5,459/AC Similar 14 01/95 365.67 AC $ 1,000,000 $ 2,735/AC Inferior 15 04/93 70.17 AC $ 196,000 $ 2,794/AC Inferior 16 04/97 162.31 AC $ 330,000 $ 2,033/AC Inferior 17 12/97 56.37 AC $ 355,000 $ 6,298/AC Inferior All sales are in the general vicinity of the subject, or are similar in other characteristics. Sale #1 is located just east of Farmington and south of Hwy. 62. It is similar type land and in the Farmington School District as is the subject. Sale #2 is located west of the subject. It is very similar type land, but is a larger parcel. It did have paved road frontage on Harmon Rd. and is being utilized for residential subdivision purposes. Sale #3 is an older sale of property which is northeast of the subject. It is the site of the Sports Park on Hwy. 16 (Wedington Rd.). It was a large tract sale of wooded acreage. Its location is considered superior due to highway frontage, but its land type is considered inferior. It would require a large adjustment for time. Sale #4 is also an older sale of land northeast of the subject. It also is a large sale, but of land very similar to the subject in terrain and appeal. A portion of this property has been developed into a residential subdivision. It also would require a large adjustment for appreciation over the past four years in the area. 38 Analysis of the Comparable Saes and Conclusion of Value (C nt'd 1 Sales #5-#12 are of land in the West Fayetteville area, and in the general vicinity of the subject, which have been purchased in recent years and developed into residential subdivisions. Consequently, all are considered similar in potential use. Sale #5 is the site of the Heritage Village Subdivision. Its land type is similar, it is located just north of the subject, and is in the Farmington School District. Sale #6 is the site of the new Magnolia Crossing Subdivision which is accessed off. of Hwy. 62, to the southeast of the subject. It is considered superior in location and similar in land type. Sale #7 is the site of the Bridgeport Subdivision a couple of miles north of the subject. It was of similar land type, and its location is considered similar. It is an older sale, and would require an upward adjustment for time. Sales #8 & #9 are the site of the Fieldstone Subdivision, north of the subject, off of Hwy. 16. These tracts are of similar land type, and are located in a similarly appealing area. They also are older sales, and would require an upward adjustment for time. Sale #10 is the site of the Owl Creek Subdivision located off of Double Springs Road, northwest of the subject. It is of inferior land type, and is located in the Farmington School District. It is also an older sale requiring a time adjustment. Sale #11 is the site of the Willow Springs Subdivision, northeast of the subject. It is of similar land type. It wbuld require a large time adjustment for appreciation in the marketplace. Sale #12 is a relatively recent sale of similar type land north of the subject, off Salem Rd.. This land is to be developed into a residential subdivision. Sales #13-#17 are of larger tracts of land which have sold over the past several years within the general vicinity of Fayetteville. Sale #13 is the site of the new Stonebridge Golf Course, also known as the Dash Goff Farm. This sale represents only a portion of the farm, and of the total sale, which is ongoing over the next few years. Future sales prices will total $8,000/acre for large tracts, with a total of 1000 acres to eventually convey. The transaction was reportedly set up this way to limit income tax exposure. It is considered to be similarly appealing land, but is actually in an inferior location. Sale #14 is the Askew Farm, west of Drake Field in South Fayetteville. It also is a very large tract of land. It is considered inferior to the subject in appeal and location. Sale #15 is also a larger tract of land purchased by the Walker Family on McCollum Mountain. It is considered much inferior to the subject property. Sale #16 is also a large tract of land in the South Fayetteville area. It is located west of the bypass and north of Cato Springs Rd.. It is considered much inferior to the subject due to terrain, location, and overall appeal. Sale #17 is a relatively recent sale of a large tract of land north of Fayetteville on Clear Creek, off of Hwy. 112. It was purchased by a local doctor for an estate. It has similar land type and appeal, but its location is considered inferior to the subject. 39 01.1i t S: .. f 1' S As mentioned earlier, the appraiser has included a more than adequate amount of sales data, because he wanted to show the readers of this report the broad area of values in the subject market area. These sales indicate a broad value range between $2,000 and $9,500 per acre. The low end of this range is sales inferior in location, terrain, and overall appeal. The high end of this range are sales within the closest proximity of the subject, most of smaller tract sizes. Generally, smaller tracts of land with other similar characteristics will sell for a higher per acre value than will larger tracts of land. This would likely be the case with the subject property. However, due to the amount of road frontage that the subject has it is likely it could easily be split into smaller tracts. It is the appraiser's opinion that the subject's value would fall within the upper section of the above stated value range. Therefore, based upon data collected, analyzed, and discussed in this report, and after adjusting for factors such as time, location, size, appeal, and other economic factors, it is the considered opinion of the appraiser that the subject's Fair Market Value as of September 16, 1998 is as follows: 100 Acres @ $ 9,000/Ac. _ Say $ 900,000 $ 900,000 CORRELATION, ANALYSIS & CONCLUSION The Market Data Approach was used to estimate the value of the subject property. It was the only applicable appraisal approach. The Cost & Income Approaches were not used to estimate the value of the subject property due to thg lack of improvements offering any substantial contributory value. The Market Data Approach resulted in the following indicated value: The Market Data Approach $ 900,000 The Cost Approach NA The Income Approach NA It is the appraiser's opinion that an adequate amount of Market Data was available to obtain a reliable value estimate for the subject property. A sufficient amount of land sales activity has occurred in the general vicinity of the subject property. These sales are considered the best available for comparison. Arriving at a final value estimate for the subject property is difficult due to the unique site characteristics, the softness of the current residential market in the subject neighborhood, and city regulations pertaining to development of the site. The site's relatively close -in location, large amount of developable land, scenic vistas, and availability of all municipal utilities makes it an appealing piece of property, and ideal for development. On the other hand, the market in west Fayetteville is saturated with lots and homes for sale at this time. Several developers and builders are holding large inventories, with sales at a moderate pace at best. Hence, timing to develop the subject is not ideal. Furthermore, the subject would have to be annexed into the City of Fayetteville in order to obtain sewer service. City regulations to develop property are rather cumbersome, increasing costs and time spent. It would be likely that the city would require the paving of both Cty. Rds. #648 & #649 as they would become city streets. In addition, the subject is actually in the Farmington School District, whose area has yet to have seen the higher per acre prices that development land has obtained in the Fayetteville School District. In addition, a 60 acre tract just northeast of the subject at Persimmon and 46°i St. is now on the market for $945,000. The property had been under contract with a developer for a reported $795,000 ($13,250/acre) subject to rezoning to allow for an affordable type housing development. This property is within the city limits of Fayetteville, had all utilities available, and paved road on two sides. The city turned down the rezoning request and the deal fell through. The developer indicated that the only way he could justify the land cost was to develop the property into a higher density housing project. He also indicated that this is the type of housing that is in demand and selling in the west Fayetteville market area, not higher price homes which would be necessary on larger lots. The parties interviewed by the appraiser agree that the property is not worth near the asking price or the contract price under its current zoning (A-1) and the city's attitude toward rezoning and allowable land use. 41 A major assumption of this appraisal and the final value estimate reported is that the subject can be annexed into the city and rezoned to a higher zoning designation, with at least R-1. An R-1 zoning designation only allows for three lots per acre while the other designations allow a more densely developed subdivision. The subject is large enough to accommodate the number of lots and finished units to justify the investment in streets and utilities. In other words, there are economies of scale in a large acreage development. The subject would likely be developed in phases to reduce the overall risk. The appraiser has spoken with the City of Fayetteville Planning Dept. officials concerning the annexing and rezoning of the subject. A rezoning to Single Family Residential (R-1) is considered likely. However, a rezoning to R1.5 or R-2 was not ruled out, but is considered unlikely. Therefore, based upon the data collected and analyzed within this report and the preceding discussion, it is the considered opinion of this appraiser that the Fair Market Value of the subject property as of September 16, 1998 is as follows: $ 900,000 42 I hereby certify, that to the best of my knowledge and belief, that the statements of fact contained in this report are true and correct; that the reported analysis, opinions, and conclusions are my personal, unbiased professional analyses, opinions, and conclusions; that I have no present or prospective interest in the property that is the subject of this report, and I have no interest or bias with respect of the parties involved; that my compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusion in, or the use of, this report. I hereby certify, that my 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 Practice of the National Association of Realtors - Appraisal Section and the National Association of Independent Fee Appraisers; that the use of this report is subject to the requirements of these organizations relating to review by their duly authorized representatives; that I have made a personal inspection of the property that is the subject of the report; that no one provided significant professional assistance to the persons signing this report. The appraiser further certifies that the analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice ("USPAP"), except that the Departure Provision of the USPAP does not apply. And, the appraiser's 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. And, this appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. The appraiser understands that such appraisal may be used in connection with the permanent • acquisition of the property by the City of Fayetteville with regards to a sewer treatment plant project. This project has been initiated by the City of Fayetteville. This appraisal has been made in conformity with the appropriate City laws, regulations, and policies and procedures applicable to the appraisal of permanent acquisitions, and 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. The appraiser has not revealed the findings and results of such appraisal to anyone other than the proper officials of the City of Fayetteville, and will not do so until so authorized by said City officials, or until required to do so by the due process of the law, or until released from this obligation by having publicly testified as to such findings. 43 In the previous sections of this report, the appraiser has analyzed the relevant facts and applied the appropriate appraisal processes to the subject property. It is the considered opinion of this appraiser that the Market Value of the subject property as of September 16, 1998 is: NINE HUNDRED THOUSAND DOLLARS ($ 900,000) Respectfully Submitted, Merk E. Risk, GAA State Certified General Appraiser #1 .2:.- - --I II TI2 711 JEANEA' 1\q•i It: JRI O TON MI. COLE OR. Water Liugs p a /' r 1 ':�'•�•yi'J1 'L"li•: �ri_1 II:.l..:i'..:i '✓'iC:W I. .:,;.:.:. ! = IS 14 �. ,,..�4 :. _��;;:(, W. PERSIM o > s: ->.�: . 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' I. i- •� J. ii 1 ' I.?....1.. o •: lii' q.. p ••i , • iL • _ R -S. ,s. • I.. •...1 .•• .. •r_ •� I •_I g. + • • Yi S. Si • " I. •4 . • • . • • :: • I . • .. . S Mark E. Risk, GAA Real Property Appraiser TREC, INC. dba'THE REAL ESTATE CONSULTANTS 118 N. EAST AVE. / P.O. BOX 726 FAYETTEVILLE, AR 72702 (501) 442-0762 STATE STATE OF ARKANSAS - #CG -0202 CERTIFIED GENERAL APPRAISER LICENSED REAL STATE OF ARKANSAS - Principal Broker #00005933 ESTATE BROKER UNIVERSITY OF ARKANSAS, MBA 1979 UNIVERSITY OF ARKANSAS, BSBA 1977 MAJOR: REAL ESTATE AND FINANCE AMERICAN INSTITUTE OF APPRAISERS COURSE IA1 REAL ESTATE APPRAISAL PRINCIPLES COURSE lA2 BASIC VALUATION PROCEDURES COURSE 2-3 STANDARDS OF PROFESSIONAL PRACTICE CAPITALIZATION THEORY AND TECHNIQUES (U of A) MARSHALL & SWIFT BUILDING COST SEMINAR EASEMENT VALUATION -- INTERNATIONAL RIGHT OF WAY ASSOC. GRI COURSE 306 -- ARKANSAS REALTORS ASSOCIATION NAIFA COURSES -- STANDARDS OF PROFESSIONAL PRACTICE REVIEWING THE URAR FORM THE NEW URAR REPORT -- NAIFA, SPRINGDALE, AR SALES COMPARISON APPROACH - ARKANSAS REALTORS ASSOC. ENVIRONMENTAL SITE ASSESSMENT -- LINCOLN GRADUATE CENTER HUD/FHA APPRAISER TRAINING SEMINAR -- LITTLE ROCK HUD OFFICE ASB INFORMATION MEETING (Revisions to the USPAP) - DALLAS, TX NATIONAL ASSOCIATION OF REALTORS USPAP UPDATE COURSE INSTRUCTORSTRAINING INSTITUTE (ITI) -- SAN ANTONIO, TX PROFESSIONAL NATIONAL ASSOCIATION OF REALTORS (NAP) -- APPRAISAL SECTION MEMBERSHIPS ARKANSAS REALTOR'S ASSOCIATION METRO AREA BOARD OF REALTORS ROGERS BOARD OF REALTORS PROFESSIONAL. GENERAL ACCREDITED APPRAISER (GAA) - NATIONAL ASSOCIATION DESIGNATIONS OF REALTORS STATE BOARDS Appointed to the APPRAISER'S LICENSING AND CERTIFICATION BOARD by GOVERNOR BILL CLINTON in January 1992. Reappointed by Governor Jim Guy Tucker in 1994. Term Expired in January of 1997. 51 NATIONAL NATIONAL ASSOCIATION OF REALTORS COMMITTEES Appraisal Section Subcommittee 1995-1998 - Chair - 1998 Appraisal Forum 1995 Appraisal Committee 1997,'98 ACTIVELY APPRAISING REAL ESTATE IN NORTHWEST ARKANSAS SINCE 1979 ASSOCIATED WITH JIM SULLIVAN (SULLIVAN AGENCY), 1979 TO 1989 ASSOCIATED WITH TOM REED (REED & ASSOCIATES), 1981 TO 1985 EMPLOYED BY KEITH L. SCHULTZ (ASSOCIATED APPRAISERS) 1980-81 TEACHING REAL ESTATE INSTRUCTOR AT THE UNIVERSITY OF ARKANSAS (1981 TO DATE) COURSES TAUGHT INCLUDE REAL ESTATE PRINCIPLES, APPRAISAL, AND FINANCE CONTINUING EDUCATION SEMINARS: BASIC STEPS TO RESIDENTIAL APPRAISAL, ENVIRONMENTAL CONCERNS PUBLICATIONS "RECREATIONAL LAND VALUES AND TRENDS IN NORTHWEST ARKANSAS", ARKANSAS BUSINESS AND ECONOMIC REVIEW, VOL. 16, NO. 1, 1983; PICKED UP FOR REPRINT BY THE INTERNATIONAL ASSOCIATION OF ASSESSORS *LENDING 66 FEDERAL CREDIT UNION INSTITUTIONS AMERICAN AIRLINES CREDIT UNION ARKANSAS NATIONAL BANK BANK OF ARKANSAS BANK OF BENTONVILLE BANK OF ELKINS BANK OF EUREKA SPRINGS BANK OF FAYETTEVILLE BANK OF LINCOLN BANK OF OKLAHOMA COMMERCE BANK OF BARRY COUNTY, MISSOURI COMMUNITY BANK COMMUNITY FIRST BANK FARMERS & MERCHANTS BANK OF PRAIRIE GROVE FIRST EUREKA SPRINGS BANK FIRST FEDERAL BANK FIRST FINANCIAL BANK FIRST NATIONAL BANK OF BERRYVILLE FIRST NATIONAL BANK OF SPRINGDALE FIRST NATIONAL BANK OF ST. LOUIS MCILROY BANK AND TRUST NATIONS BANK NEW SOUTH FEDERAL SAVINGS BANK 52 CLIENTS SERVED (Cont'd.) *LENDING SPRINGDALE BANK & TRUST INSTITUTIONS SUPERIOR FEDERAL BANK (Cont'd.) UARK FEDERAL CREDIT UNION UNITED FEDERAL SAVINGS BANK *MORTGAGE AMERIQUEST MORTGAGE COMPANIES ARVEST MORTGAGE COMPANY BROYLES MORTGAGE COMPANY FEDERAL NATIONAL MORTGAGE ASSOCIATION (FANNIE MAE) JAMES RIVER MORTGAGE COMPANY LOMAS & NETTLETON NOR WEST MORTGAGE PHH HOME MORTGAGE PULASKI MORTGAGE COMPANY SOUTHERN MORTGAGE U.S. MORTGAGE AIM?! DEVELOPMENT CORPORATION BRITTNEY DEVELOPMENT CORPORATION LARRY CARTER DEVELOPMENT CORPORATION CASTLE DEVELOPMENT EAST AVENUE DEVELOPMENT, LLC. DR. J. B. HAYS GORDON WILKINS RELOCATION ASSOCIATES RELOCATION COMPANIES BOATMEN'S GENREL COLD WELL BANKER RELOCATION COMMONWEALTH RELOCATION SERVICES EQUITABLE RELOCATION MGMT. CORPORATION EXECUTIVE RELOCATION FORWARD MOBILITY HOME EQUITY CORPORATION PRUDENTIAL RELOCATION MANAGEMENT RE/MAX RELOCATION RELOCATION FUNDING CORPORATION RELOCATION RESOURCES WEICHERT RELOCATION MISCELLANEOUS ANHEUSER BUSCH BALL CORPORATION BELL INTERNATIONAL BUSCH SKIL COMPANY CARGILL CORPORATION CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS CITY OF EUREKA SPRINGS CITY OF FAYETTEVILLE CITY OF SPRINGDALE 53 MISCELLANEOUS COLGATE PALMOLIVE (Cont,d.) CTS CORPORATION DEERE CREDIT SERVICES FEDERAL DEPOSIT INSURANCE CORP. (FDIC) FULBRIGHT ENTERPRISES GATES RUBBER COMPANY GENERAL MOTORS KRAFT, INC. LOVE BOX COMPANY MGIC MICHELIN TIRE COMPANY PHIZER, INC. PROCTER & GAMBLE RECORD DATA, INC. RESOLUTION TRUST CORPORATION ROADWAY EXPRESS SALVATION ARMY SIOUX TRANSPORTATION SOUTHWESTERN ELECTRIC POWER COMPANY (SWEPCO) STATE FARM INSURANCE COMPANY TRW TYSON FOODS, INC. MANY OTHER ATTORNEYS, DOCTORS, AND INDIVIDUALS COURT BENTON COUNTY CIRCUIT COURT' TESTIMONY CARROLL COUNTY CIRCUIT COURT U.S. FEDERAL BANKRUPTCY COURT WASHINGTON COUNTY CIRCUIT COURT GEOGRAPHIC NORTHWEST ARKANSAS AREA SERVED WASHINGTON, BENTON, CARROLL & MADISON COUNTIES F Regulatory Compliance - Minimum Standards Checklist Federal regulations for lending insti�utionsF regarding appraisals were amended as of June 7, 1994. These regulations require 5 Minimum Standards for appraisals performed for federally related transactions. The following checklist states each of these minimum standards and the appraisers compliance there of: Conform to generally accepted appraisal standards as evidence by the USPAP unless principles of safe and sound banking require compliance with stricter standards; The appraisers certify that this appraisal meets the minimum appraisal standards currently required by the USPAP. 2. Be written and contain sufficient information and analysis to support the institution's decision to engage in the transaction; This requirement has been met through"the use of the following narrative appraisal report. See Body of Report. Analyze and report appropriate deductions and discounts for proposed construction or renovation, partially leased buildings, non -market lease terms, and tract developments with unsold units; The subject property is not a proposed construction, partially leased, or a tract development. Hence, this requirement is not applicable. See Income Approach Method. See Correlation, Analysis, and Conclusion. The subject property is to be owner occupied upon the completion of remodeling, consequently, no deduction or discount is necessary. 4. Be based upon the definition of market value as set forth in the regulation; The appraiser has based the appraisal upon the definition of Market Value, as developed by FNMA, and FHLMC. See Definition of Market Value. Page 10. 5. Be performed by State licensed or Certified appraiser. Mark E. Risk is a State licensed Certified General Appraiser (#CG0202) and is in good standing with the state's regulatory board. 55 es,( 3-1% Form No. 1402.92 (10117/92) ALTA Owner's Policy POLICY OF TITLE INSURANCE ISSUED BY First American Title Insurance Company SUBJECT TO THE EkCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneysfees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. T A M E g BRONSON ABSTRACT COMPANY, INC. she 9 3810 Front Street, #5 Fayetteville, AR 72703 (501) 442-2700 Fax: (501) 442-6475 Agent for: First American Title Insurance Company e45' First American Title Insurance Company BY d2L X1t PRESIDENT 0 EiJlli , rr / ft�Jf w ,5 '•T, r � :!: F n 'yn n� T Y 9 Y v` •yy Ay`^ ^� J J4 rc 1 'J:� , ii a !. �v.� •I� �, U�,4 3. 4.J vY 4�!4,J f3 AGO VF r S �`� Policy No.J 745893 SCHEDULE A File No.FATIC 98-10117 Amount of insurance: $120,000.00 Premium: STANDARD Date of Policy: FEBRUARY 1, 1999 at 10:12 A. M. 1. Name of Insured: CITY OF FAYETTEVILLE, ARKANSAS, A MUNICIPAL CORPORATION 2. The estate or interest in the land described herein and which is covered by this policy is FEE SIMPLE and is at Date of Policy vested in: THE INSURED 3. The land referred to in this policy is described in the said instrument, is situated in the County of WASHINGTON, State of ARKANSAS, and is identified as follows: A part of the Southeast Quarter (SE 1/4) of the Southeast Quarter (SE 1/4) of Section Fourteen (14) in Township Sixteen (16) North of Range Thirty-one (31) West of the Fifth Principal Meridian, more particularly described as follows: Beginning at a point 579 feet West of the Southeast corner of the Southeast Quarter of said 40 acre tract, and running thence West 741 feet, more or less, to the Southwest corner of said 40 acre tract, and running thence West 741 feet, more or less, to the Southwest corner of said 40 acre tract; thence North 209 feet; thence East 741 feet, more or less, to a point 209 feet North of the point of beginning; thence South 209 feet to the point of beginning, containing 3.5 acres, more or less. COUNTERSIGNED BY: BRONSON ABSTRACT COMPANY, 'INC *************+*********+****•**** 218 EAST CENTER STREET FIRST AMERICAN TITLE FAYETTEVILLE, AR. 72701 INSURANCE COMPANY Policy No.J 745893 SCHEDULE B File No.FATIC 98-10117 This policy does not insure against loss or damage by reason of the following: 1 General taxes for the year 1998 and subsequent years not yet due and payable. 2 Rights or claims of parties in possession, boundary line disputes, overlaps, encroachments, and any other matters not shown by the public records which would be disclosed by an accurate survey and inspection of the land described in Schedule A. 3 Easements, or claims of easements, not shown by the public records. 4 Any lien, or right to a lien, for services, labor or material heretofore of hereafter furnished, imposed by law and not shown by the public records. 5 Taxes or assessments which are not shown as existing liens by either the public records or the records of any taxing authority that levies taxes or assessments on real property. 6 Loss arising from security interest evidenced by financing statements filed of record, as of the effective date hereof, under the Arkansas Uniform Commercial Code and Judgement Liens and other liens of record in any United States District Court or Bankruptcy Court in the State of Arkansas, as of the effective date. 7 Loss arising from Oil, Gas or other minerals, conveyed, retained, assigned or any other activity caused by the sub -surface rights or ownership, including but not limited to the right of ingress or egress for said sub -surface purposes. S This policy does not insure acreage, any mention thereof is for descriptive purposes only. 9 Loss arising from any judgment or lien, concerning Child Support or Alimony payments, rendered or construed under or pursuant to Act 983 of 1985 Statutes of the State of Arkansas. 10 Subject to a right recorded in record BRONSON ABSTRACT COMPAN 28 EAST CENTER STREET FAYETTEVILLE, AR. 72701 of way granted to Arkansas Louisiana Gas Company book 726 at page 65. , INC*++++++++++++++++++++++++++++++++ FIRST AMERICAN TITLE INSURANCE COMPANY Policy No.J 745893 SCHEDULE B File No.FATIC 98-10117 11 Subject to any portion of insured premises that may lie within the right of way of any public road. BRONSON ABSTRACT COMPANY, INC********************************* 218 EAST CENTER STREET FIRST AMERICAN TITLE FAYETTEVILLE, AR. 72701 INSURANCE COMPANY rile ec . l(3 —°T -.f F1,••. W J'^•. r'L x W W„� W _ -/0 --- M• 1 rU'...N t Uw U f ., r`f _�,wJ 3� � G Form No. 1402.92 (10/17/92) P. „if ALTA Owner's Policy POLICY OF TITLE Ilk SU ANCE t Anrr:,t,C �,� _ ; :} ;rte � •�'C�/y � `. ISSUED BY First American Title Insurance Company tai •. SUBJECTTO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage,.'' not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of:, 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. °�+�€ . N The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. f AMER, o BRONSON ABSTRACT COMPANY, INC. •�tl; + .1 3810 Front Street, #5 =- • ' Fayetteville, AR 72703 '' (501) 442-2700 °i4 LLB Fax: (501) 442-8475 Q Agent for: • First American Title Insurance Company First American Title Insurance Company BY PRESIDENT J 7458 9 3 ATTEST e/ V?it4. SECRETARY 7i �P,7 Y' Y Y R 1p !? ,�',�� Y Y T Yd��by m Y ~ • IF _ �.�+ `�' NI�MMOt1D P(ZOP r•� ,'. i� r s 11 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (I) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or"(v) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at -Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser forlub without knowledge. o 3. Defects, liens, encumbrances, adverse claims or other matters: (' (a) created, suffered, assumed or agreed to by the insured claimant; • (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. \\ 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, • state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the • failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. by this policy which constitutes the basis of loss or damage for any loss or damage caused thereby. and shall state, to the extent possible, the basis of calculating (b) In the event of any litigation, including litigation by The following terms when used in this policy mean: the amount of the loss or damage. If the Company is "insured": by the failure of the insured claimant to provide the the Company or with the Company's consent, the Company for damage there has been (a) the insured named in Schedule A, and, prejudiced shall have no liability loss or until t subject to any rights or defenses the Company would have required proof of loss or damage, the Company's obligations a final determination by a court of competent jurisdiction, had against the named Insured, those who succeed to the to the insured under the policy shall terminate, including any and disposition of all appeals therefrom, adverse to the title interest of the named insured by operation of law as liability or obligation to defend, prosecute, or continue any distinguished from purchase Including, but not limited to, litigation, with regard to the matter or matters requiring such as insured. (c) The Company shall not be liable for loss or heirs, distributees, devisees, survivors, personal representa- proof of loss or damage. tives, next of kin, or corporate or fiduciary successors. In addition, the insured claimant may reasonably be rp damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written (b) "insured claimant": an insured claiming loss or required to submit to examination under oath by any authorized representative of the Company and shall produce consent of the Company. damage. (c) "knowledge" or "known": actual knowledge, not for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized 10. REDUCTION OF INSURANCE; REDUCTION OR constructive knowledge or notice which may be imputed to representative of the Company, all records, books, ledgers, TERMINATION OF LIABILITY an insured by reason of the public records as defined in this checks, correspondence and memoranda, whether bearing a policy or any other records which impart constructive notice date before or after Date of Policy, which reasonably pertain All payments under this policy, except payments made of matters affecting the land. to the loss or damage. Further, if requested by any authorized for cost of thetornsura' fees and expenses, shall reduce the amount insurance pro fonts. (d) "land": the land described or referred to in representative of the Company, the insured claimant shall Schedule (A), and improvements affixed thereto which by law grant its permission, in writing, for any authorized rep- 11. LIABILITY NONCUMULATIVE, constitute real property. The term "land" does not include any resentative of the Company to examine, inspect and copy all property beyond the lines of the area described or referred records, books, ledgers, checks, correspondence and mem- It is expressly understood that the Amount of In- • ' *y to in Schedule (A), nor any right, title, interest, estate or oranda in the custody or control of a third party, which surance under this policy shall be reduced by any amount the easement In abutting sheets, roads, avenues, alleys, lanes, reasonably pertain to the loss or damage. All information Company may pay under any policy insuring a mortgage to ways or waterways, but nothing herein shall modify or limit designated as confidential by the insured claimant provided which exception is taken in Schedule B or to which the the extent to which a right of access to and from the land is to the Company pursuant to this Section shall not be insured has agreed, assumed, or taken subject, or which is Q insured by this policy, disclosed to others unless, in the reasonable judgment of the hereafter executed by an insured and which is a charge or (e) "mortgage": mortgage, deed of trust, trust deed. Company, it is necessary in the administration of the claim, or other security instrument. Failure of the insured claimant to submit for examination lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a (� "pubes records": records the under oath, produce other reasonably requested information seeo under state or grant permission to secure reasonably necessary informs- Payment under this policy to the insured owner. of purpose statutes at Date Policy for the of imparting lion from third parties as required in this paragraph, unless constructive notice of matters relating to real property to 12. PAYMENT OF LOSS. purchasers for value and without knowledge. With respect to prohibited by law or governmental regulation, shall terminate Section 1(a)(iv) of the Exclusions From Coverage, "public any liability of the Company underthis policy as to that claim. (a) Na payment shall be made without producing this records" shall also incude environmental protection liens filed 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; In the records of the clerk of the United States district court policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or O for the district in which the land is located. TERMINATION OF LIABILITY, destruction shall be furnished to the satisfaction of the •. j (g) "unmarketability of the title": an alleged or In case of a claim under this policy, the Company shall apparent matter affecting the title to the land, not excluded or have the following additional options: Company. (b) When liability and the extent of loss or damage has excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released (a) To Pay or Tender Payment of the Amount ofStipulations, been definitely fixed in accordance with these Conditions and the loss or damage shall be payable within 30 frInsurance. purchase virtue le a contractual orn the obligation delivery condition requiring the delivery of marketable title. To pay or tender payment of the amount of insurance days thereafter. under this policy together with any costs, attorneys' fees and 13. SUBROGATION UPON PAYMENT 2. CONTINUATION OF INSURANCE AFTER expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or OR SETTLEMENT. CONVEYANCE OF TITLE. tender of payment and which the Company is obligated to (a) The Company's Right of Subrogation. The coverage of this policy shall continue in force as paY the exercise by the of Date of Policy in favor of an Insured only so long as the UponCompany of this option, all Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in and liability obligations to the insured under this policy, other insured`retains an estate or Interest in the land, or holds anthe than to make the payment required, shall terminate, including Company unaffected by any act of the insured claimant indebtedness secured by a purchase money mortgage given any liability or obligation to defend, prosecute, or continue by a purchaser from the insured, or only sq long as the The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have made by the Insured in any transfer or conveyance of the estate or Interest. This policy shall not continue in force In favor of any purchaser from the insured of either (i) an estate or interest in the land, oT (ii) an indebtedness secured by a purchase rnonsy mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notify the Company promptly in writing (I) In case of any litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest, as insured, and which might cause loss or damage for which the Com an may be liable 9 P Y by virtue of this policy, or (iii) if title to the estate or interest, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained In Section 6 of these Conditions and Stipulations, the Company, at Its own cost and without unreasonable delay, shall provide for the defense of an Insured In litigation in which any third party asserts a claim adverse to the title or Interest as insured, but only as to those stated causes of action alleging a defect, lien or en- cumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, casts or expenses incurred by the Insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the insured forthis purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company maybe necessary or desirable to establish the title to the estate or Interest as insured. If the Company Is prejudiced by the failure of the Insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the Insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter Insured against w. Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is pay. obligated to aY . 9 Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (ii), the Com- pany's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, Including any liability or obligation to defend, prosecute or continue any litigation. 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following: (i) where no subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that the Amount of Insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or (ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. APPORTIONMENT. If the land described in Schedule (A)(C) consists of two or more parcels which are not used as a single site, and a loss Is established affecting one or more of the parcels but not all, the loss shall be computed and settled on a pro rata basis as if the Amount of Insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whola, exclusive of any improvements made sub- sequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. LIMITATION OF LIABILITY. (a) It the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, all as insured, in a reasonably diligent manner by any method, including litigation and the comple- tion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the Insured claimant in any transaction or litigation involving these rights or remedies. ita payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant, as state d above, that act shall not void this policy, but the Company, in that event, olic P shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the Insured claimant of the Company's right of subrogation. (b) The Company's Rights Against non -Insured Obligors. The Company's right of subrogation against non- insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. ARBITRATION. Unless prohibited by applicable law, either the Com- pany or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the sites of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpret- ing any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy P Y can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an As::'.stant Secretary, or validating officer or authorized signatory of the Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 17. NOTICES, WHERE SENT. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at 114 East Fifth Street, Santa Ana, California 92701, or to the office which issued this policy. _ r r A mmO Policy No.J 745893 SCHEDULE A File No.FATIC 98-10117 I. 'e> Amount of insurance: $120,000.00 Premium: STANDARD Date of Policy: FEBRUARY 1, 1999 at 10:12 A. M. 1. Name of Insured: • CITY OF FAYETTEVILLE, ARKANSAS, A MUNICIPAL CORPORATION 2. The estate or interest in the land described herein and which is covered by this policy is FEE SIMPLE and is at Date of Policy vested in: THE INSURED 3. The land referred to in this policy is described in the said instrument, • is situated in the County of WASHINGTON, State of ARKANSAS, and is identified as follows: A part of the Southeast Quarter (SE 1/4) of the Southeast Quarter (SE 1/4) of Section Fourteen (14) in Township Sixteen (16) North of Range Thirty-one (31) West of the Fifth Principal Meridian, more particularly described as follows: Beginning at a point 579 feet West of the Southeast corner of the Southeast Quarter of said 40 acre tract, and running thence West 741 feet, more or less, to the Southwest corner of said 40 acre tract, and running thence West 741 feet, more or less, to the Southwest corner of said 40 acre tract; thence North 209 feet; thence East 741 feet, more or less, to a point 209 feet North of the point of beginning; thence South 209 feet to the point of beginning, containing 3.5 acres, more or less. 0 0 ;1 COUNTERSIGNED BY: BRONSON ABSTRACT COMPANY, INC*****x*************************** 28 EAST CENTER STREET FIRST AMERICAN TITLE • FAYETTEVILLE, AR. 72701 INSURANCE COMPANY ae. Policy No.J 745893 SCHEDULE B File No.FATIC 98-10117 • This policy does not insure against loss or damage by reason of the following: 1 General taxes for the year 1998 and subsequent years not yet due and payable. 2 Rights or claims of parties in possession, boundary line disputes, overlaps, encroachments, and any other matters not shown by the public records which would be disclosed by an accurate survey and inspection of the land described in Schedule A. 3 Easements, or claims of easements, not shown by the public records. 4 Any lien, or right to a lien, for services, labor or material heretofore of hereafter furnished, imposed by law and not shown by the public records. 5 Taxes or assessments which are not shown as existing liens by either the public records or the records of any taxing authority that levies taxes or assessments on real property. 6 Loss arising from security interest evidenced by financing statements filed of record, as of the effective date hereof, under the Arkansas Uniform Commercial Code and Judgement Liens and other liens of record in any United States District Court or Bankruptcy Court in the State of Arkansas, as of the effective date. 7 Loss arising from Oil, Gas or other minerals, conveyed, retained, assigned or any other activity caused by the sub -surface rights or • ownership, including but not limited to the right of ingress or egress for said sub -surface purposes. 8 This policy does not insure acreage, any mention thereof is for descriptive purposes only. 9 Loss arising from any judgment or lien, concerning Child Support or 0 Alimony payments, rendered or construed under or pursuant to Act 983 of 1985 Statutes of the State of Arkansas. 10 Subject to a right of way granted to Arkansas Louisiana Gas Company recorded in record book 726 at page 65. 0 BRONSON ABSTRACT COMPANY, INC 28 EAST CENTER STREET FAYETTEVILLE, AR. 72701 FIRST AMERICAN TITLE INSURANCE COMPANY O O BRONSON ABSTRACT COMPANY, INC 28 EAST CENTER STREET FAYETTEVILLE, AR. 72701 FIRST AMERICAN TITLE INSURANCE COMPANY ********************************* • .r_ • %CAN • BRONS0N ABSTRACT CO. INC. o Abstracts Title Insurance Escrows 3810 Front Street Suite 5 Fayetteville, AR 72703 501 442-2700 Telecopier 501 442-8475 • -�jq/YJ IYJ O.�%G' Your File Numbe _ 1/Li �/� _4i Note: THIS LETTER CONTAINS IMPORTANT INFORMATION ABOUT THE REAL ESTATE TRANSACTION YOU HAVE JUST RECENTLY COMPLETED. READ THIS LETTER AND RETAIN IT WITH YOUR OTHER VALUABLE PAPERS PERTAINING TO THE • PROPERTY PURCHASED. The new home or other real estate you have purchased is protected with a policy of title insurance issued through BRONSON ABSTRACT CO., INC. We have assigned the above number to your records to assure prompt processing of future title orders involving the property. If you sell or obtain a loan on this piece of land within four (4) years, BRONSON; ABSTRACT CO., INC. WILL REDUCE THE USUAL POLICY RATE. I, To obtain the SAVINGS, it will be necessary for you to inform the real I „ estate agent and/or loan officer handling further transactions that such policies of title insurance as are required should be issued through BRONSON ABSTRACT CO., INC. and you must request the real estate agent and/or loan officer to forward this letter to us with the order for title insurance. • We appreciate the opportunity of serving you and will be glad to O assist you in any way, remembering that PROTECTION OF YOUR PROPERTY IS YOUR FIRST CONSIDERATION --AND OURS. BY: CRYS L. BILLIET 0 TITLE DEPARTMENT REPRESENTING: FIRST AMERICAN TITLE INSURANCE CO. STEWART TITLE GUARANTY CO. I � � C ,CAN I. BRONSON ABSTRACT CO., INC. ° I'" Abstracts Title Insurance Your File Numbe 11 LP Escrows 3810 Front Street Suite 5 Fayetteville, AR 72703 501 442-2700 Telecopier 501 442-8475 J4are '4 as Note: THIS LETTER CONTAINS IMPORTANT INFORMATION ABOUT THE REAL ESTATE TRANSACTION YOU HAVE JUST RECENTLY COMPLETED. READ THIS LETTER AND RETAIN IT WITH YOUR OTHER VALUABLE PAPERS PERTAINING TO THE PROPERTY PURCHASED. The new home or other real estate you have purchased is protected with a policy of title insurance issued through BRONSON ABSTRACT CO., INC. We have assigned the above number to your records to assure prompt processing of future title orders involving the property. If you sell or obtain a loan on this piece of land within four (4) years, BRONSON. ABSTRACT CO., INC. WILL REDUCE THE USUAL POLICY RATE. To obtain the SAVINGS, it will be necessary for you to inform the real estate agent and/or loan officer handling further transactions that such policies of title insurance as are required should be issued through BRONSON ABSTRACT CO., INC. and you must request the real estate agent and/or loan officer to forward this letter to us with the order for title insurance. We appreciate the opportunity of serving you and will be glad to assist you in any way, remembering that PROTECTION OF YOUR PROPERTY IS YOUR FIRST CONSIDERATION --AND OURS. I REPRESENTING: FIRST AMERICAN TITLE INSURANCE CO. STEWART TITLE GUARANTY CO.