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HomeMy WebLinkAbout174-17 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 174-17 File Number: 2017-0396 833 NORTH CROSSOVER ROAD PUBLIC SALE: A RESOLUTION TO AUTHORIZE THE MAYOR TO OFFER FOR PUBLIC SALE APPROXIMATELY 0.92 ACRES AND IMPROVEMENTS LOCATED AT 833 NORTH CROSSOVER ROAD FOR THE APPRAISED VALUE OF $162,000.00 WHEREAS, the Fire Department uses the property located at 833 North Crossover Road as an office for the Fire Prevention Bureau and has determined that it would be more cost effective to sell the property and move the Fire Marshals to other Fire Department property at Drake Field; and WHEREAS, the property recently appraised for $162,000.00 and is no longer needed for municipal purposes; and WHEREAS, the sale of this property would provide revenue for facility improvements at the Drake Field location including creating office and meeting space for the Fayetteville Fire Prevention Bureau. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to offer for public sale approximately 0.92 acres and improvements located at 833 North Crossover Road for the appraised value of $162,000.00. PASSED and APPROVED on 8/15/2017 Page 1 Printed on 8116117 Resolution: 174-17 a&6LwAoL 2017-0226 Attest: WAL Sondra E. Smith, City Clerk Trei,i� Oji Gr�E4Z K Page 2 Printed on 8116117 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2017-0396 Agenda Date: 8/15/2017 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: D. 9 833 NORTH CROSSOVER ROAD PUBLIC SALE: A RESOLUTION TO AUTHORIZE THE MAYOR TO OFFER FOR PUBLIC SALE APPROXIMATELY 0.92 ACRES AND IMPROVEMENTS LOCATED AT 833 NORTH CROSSOVER ROAD FOR THE APPRAISED VALUE OF $162,000.00 WHEREAS, the Fire Department uses the property located at 833 North Crossover Road as an office for the Fire Prevention Bureau and has determined that it would be more cost effective to sell the property and move the Fire Marshals to other Fire Department property at Drake Field; and WHEREAS, the property recently appraised for $162,000.00 and is no longer needed for municipal purposes; and WHEREAS, the sale of this property would provide revenue for facility improvements at the Drake Field location including creating office and meeting space for the Fayetteville Fire Prevention Bureau. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to offer for public sale approximately 0.92 acres and improvements located at 833 North Crossover Road for the appraised value of $162,000.00. City of Fayetteville, Arkansas Page 1 Printed on 8/16/2017 I City of Fayetteville Staff Review Form 2017-0396 Legistar File ID 8/15/2017 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item David Dayringer 7/28/2017 FIRE (300) Submitted By Submitted Date Division / Department Action Recommendation: Approval of a resolution allowing the sale of City of Fayetteville, Arkansas Property, .92 Acre and Improvements located at 833 North Crossover Road (Fire Prevention Bureau). Budget Impact: Account Number Fund Project Number Project Title Budgeted Item? NA Current Budget $ Funds Obligated $ Current Balance Does item have a cost? NA Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget $ - Previous Ordinance or Resolution # v201ao710 Original Contract Number: Approval Date: Comments: CITY OF FAYETTEVILLE ' ARKANSAS MEETING OF AUGUST 15, 2017 TO: Mayor and City Council FROM: David Dayringer, Fire Chief DATE: July 28, 2017 CITY COUNCIL MEMO SUBJECT: Approval of a resolution allowing the sale of City of Fayetteville, Arkansas Property, .92 Acre and Improvements located at 833 North Crossover Road (Fire Prevention Bureau). RECOMMENDATION: Approval of a resolution allowing the sale of City of Fayetteville, Arkansas Property, .92 Acre and Improvements located at 833 North Crossover Road (Fire Prevention Bureau). BACKGROUND: The Fire Department reviewed, the property with the City's Facilities Management Division. It was determined that it would be more cost effective to sell this property and move the Fire Marshals to existing Fire Department property at the Airport on South School. The subject real property -at 833 North Crossover is no longer needed for municipal purposes. The property was appraised recently at a value of $162,000. DISCUSSION: The Sale of this City -Owned Property would provide revenue for facility improvements at the current unstaffed/vacant Fire Station Facility located at 4140 South School. The improvements at this location would be guided by input from the City Facilities Management Division. These renovations at 4140 South School would create offices and meeting space for the Fire Prevention Bureau. City Code §34.27 establishes requirements regarding public notice and procedure for the sale of real property owned by the City of Fayetteville. City staff has performed all necessary public notification procedures in compliance with this city ordinance (documentation attached). Additionally, the City Council must establish that this land is no longer needed for municipal purposes. BUDGET/STAFF IMPACT: The projected revenue of $162,000 from the sale of the City -Owned Property at 833 North Crossover would provide funding in the Capital Project: Fire Facility Maintenance for the renovations at 4140 South School. The funds remaining after this renovation could be utilized in Capital Project: Fire Apparatus Purchases for future apparatus purchases. Attachments: Appraisal Report, Proof of Public Notice (sign, letter, and newspaper notice), Location Map Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Certificate of Sign Posting I, Harley Hunt, attest that the above sign was posted on July 25, 2017 at 833 N. Crossover Road. (signature of person completing the sign posting) Certificate of Maiiin I hereby certify that a true and correct copy of the attached written notice was placed in the U.S. mail, first-class, postage prepaid this 24th day of July, 2017 and addressed as follows: Name: David S. Randle Revocable Trust Street: 1767 E. Overland Dr. City, State, Zip Fayetteville, AR 72703 Name: Southwestern Electric Power Company Street: P.O. Box 16428 City, State Zip: Columbus, OH 43215 Name: Philip Hadfield Street: 42 W. Louise St. City, State, Zip Fayetteville, AR 72701 Name: Howard, Linda Rose and Lyndel Gary Street: 729 N. Rockcliff Rd. City, State, Zip Fayetteville, AR 72701 Granville Wyn (name of person completing the mailing) J (signature of perso completing the mailing) Ii CITY OF FAYETTEVILLE ARKANSAS July 24, 2017 David S. Randle Revocable Trust 1767 E Overland DR Fayetteville, AR 72703 To Whom It May Concern, NOTICE OF PUBLIC HEARING A meeting of the City of Fayetteville City Council will be held on August 15, 2017 at 5:30 p.m., in room 219, Fayetteville Administration Building at 113 W. Mountain Street, Fayetteville, Arkansas, 72701. The following item is required to be published in the local newspaper pursuant to the Code of Ordinances of the City of Fayetteville and will be heard at the August 15, 2017 Fayetteville City Council meeting. SALE OF MUNICIPALLY OWNED REAL PROPERTY: Submitted by CITY STAFF for property located 833 N. CROSSOVER ROAD. The Fayetteville City Council is considering the sale of about .92 acres and improvements. The property was -appraised by Reed and Associates as of June 23, 2017 at a value of $162,000. This possible sale will be considered by the City Council during its August 15, 2017 meeting at 113 W. Mountain Street, Room 219. Sincerely, David Dayringer Fire Chief Fayetteville Fire Department Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 VM CITY OF FAYETTEVILLE ARKANSAS July 24, 2017 Southwestern Electric Power Company P.O. Box 16428 Columbus, OH 43215 To Whom It May Concern, NOTICE OF PUBLIC HEARING A meeting of the City of Fayetteville City Council will be held on August 15,'2017 at 5:30 p.m., in room 219, Fayetteville Administration Building at 113 W. Mountain Street, Fayetteville, Arkansas, 72701. The following item is required to be published in the local newspaper pursuant to the Code of Ordinances of the City of Fayetteville and will be heard at the August 15, 2017 Fayetteville City Council meeting. SALE OF MUNICIPALLY OWNED REAL PROPERTY: Submitted by CITY STAFF for property located 833 N. CROSSOVER ROAD. The Fayetteville City Council is considering the sale of about .92 acres and improvements_ The property was appraised by Reed and Associates as of June 23, 2017 at a value of $162,000. This possible sale will be considered by the City Council during its August 15, 2017 meeting at 113 W. Mountain Street, Room 219. Sincerely, l - David Dayringer Fire Chief Fayetteville Fire Department Mailing Address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov Ii CITY OF FAYETTEVIILLE ARKANSAS July 24, 2017 Philip Hadfield 42 W. Louise St. Fayetteville, AR 72701 To Whom It May Concern, NOTICE OF PUBLIC HEARING A meeting of the City of Fayetteville City Council will be held on August 15, 2017 at 5:30 p.m., in room 219, Fayetteville Administration Building at 113 W. Mountain Street, Fayetteville, Arkansas, 72701. The following item is required to be published in the local newspaper pursuant to the Code of Ordinances of the City of Fayetteville and will be heard at the August 15, 2017 Fayetteville City Council meeting. SALE OF MUNICIPALLY OWNED REAL PROPERTY: Submitted by CITY STAFF for property located 833 N. CROSSOVER ROAD. The Fayetteville City Council is considering the sale of about .92 acres -and improvements. The property was appraised by Reed and Associates as of June 23, 2017 at a value of $162,000. This possible sale will be considered by the City Council during its August 15, 2017 meeting at 113 W. Mountain Street, Room 219. - Sincerely, David Dayringer Fire Chief Fayetteville Fire Department Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 CITY OF FAYETTEVILLE ARKANSAS July 24, 2017 Howard, Linda Rose and Lyndel Gary 729 N. Rockcliff Rd. Fayetteville, AR 72701 To Whom It May Concern, NOTICE OF PUBLIC HEARING A meeting of the City of Fayetteville City Council will be held on August 15, 2017 at 5:30 p.m., in room 219, Fayetteville Administration Building at 113 W. Mountain Street, Fayetteville, Arkansas, 72701. The following item is required to be published in the local newspaper pursuant to the Code of Ordinances of the City of Fayetteville and will be heard at the August 15, 2017 Fayetteville City Council meeting. SALE OF MUNICIPALLY OWNED REAL PROPERTY: Submitted by CITY STAFF for property located 833 N. CROSSOVER ROAD. The Fayetteville City Council is considering the sale of about .92 acres and improvements. The property was appraised by Reed and Associates as of June 23, 2017 at a value of $162,000. This -possible sale will be considered by the City Council during its August 15, 2017 meeting at 113 W. Mountain Street, Room 219. Sincerely, David Dayringer Fire Chief Fayetteville Fire Department Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Date Mon, Jul 24, 2017 Time 11:06:17 Arkansas Democrat Gazette Ad Name: 74217066A Col: 1 X Depth: 2.63 Ad Due in DB: 00/00/00 Name: CITY OF FAYETTEVILL Copyline: NOTICEOFPUBLICHEARlb Address: 125 W MOUNTAIN City: FAYETTEVILLE State: AR Zip: 72701 Colors: Acct: 6014528 Phone: 479-575-8267 Caller: andy Receipt 1 74217066 Fax: E -Mail: Category: - Reply Request: Split Billed: N Date Entered: July 24, 2017 Standby Type: Rate: NL4 Class: 1230 Lines: 37 Paytype: BL Rep: Karen Caler Tear Sheets: Client: Start: July 28, 2017 Stop: July 28, 2017 Issues: 1 Editions: NDG/ DATE DAY EDITION SECTION 07/28/17 FRI NDG 1230 Price: 48.10 Other Charges: 0.00 Discounts: 0.00 Total: 48.10 .- Instruchons: - A kams, id uThefc� q tfia la�l yurw9atlo IhaOalada mdtho�y d61 att0h9fhaheerNak �pyWwielr� Fayep�lRe Sl+i€UiAiW xuo"o RUL f PERTY: SubmIgad dfy pttSAFFfor brood M H. CROSSWAIi. Tho Fatestar vQ1y (handl ff omr a9 uln9 the plo of nNul 82 Wresadlmfxovarteola ilia Ad shown is not actual print size �� _ } _ ,7-� � �� -• .IA, r �� r I e� X11 f I1. APPRAISAL REPORT ON THE CITY OF FAYETTEVILLE, ARKANSAS PROPERTY .92f ACRE AND IMPROVEMENTS LOCATED AT 833 NORTH CROSSOVER ROAD, FAYETTEVILLE, ARKANSAS; WASHINGTON COUNTY FOR FAYETTEVILLE FIRE DEPARTMENT ATTN: ASSISTANT FIRE CHIEF HARLEY HUNT 833 NORTH CROSSOVER ROAD FAYETTEVILLE, ARKANSAS REED & ASSOCIATES, INC. 3739 N. STEELE BLVD., SUITE 322 FAYETTEVILLE, ARKANSAS Appraisal No. 5096-2 AS OF JUNE 23, 2017 M nP.-I � � W/ -,A Pa. a Real Estate Appraisers — Consultants 3739 N. Steele Blvd., Suite 220, Fayetteville, AR 72703 * 479-521-6313 * Fax: 479-521-6315 * www.reedappraisal.biz Tom Reed, MAI • Barbara Rhoads • Shannon Mueller • Brian Kenworthy • Katie Hampton July 7, 2017 Fayetteville Fire Department Attn: Assistant Fire Chief Harley Hunt 833 North Crossover Road Fayetteville, Arkansas 72701 RE: The City of Fayetteville, Arkansas Property; .92f Acre and Improvements Located at 833 North Crossover Road, Fayetteville, Arkansas; Washington County Dear Assistant Chief Hunt: 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 examined the subject property and have made a survey of matters pertinent to the estimation of its value. I further certify that I have no interest, present or contemplated, in the property appraised and that my fee was not contingent upon the value estimate reported. The following report contains data gathered in my investigation, information from my files and shows the method of appraisal. This report has been prepared under the Appraisal Report option. Based upon an analysis of relevant data and contingent upon the Assumptions and Limiting Conditions which follow and appear later in this report, in my opinion the market value of the fee simple interest in the subject property, as of June 23, 2017, was as follows: ONE HUNDRED AND SIXTY-TWO THOUSAND DOLLARS ($162,000) The preceding market value estimate reflects terms equivalent to cash to the owner and represents that for real property only. No personal property has been included in this report. The market value estimate is based upon the following Extraordinary Assumptions: 1. Subject and adjacent properties are in compliance with all applicable EPA regulations; 2. Subject electrical, plumbing and HVAC systems are adequate and in working order; 3. Subject will be utilized in compliance with current zoning regulations; the property is currently subject to a conditional use; however, the property is proposed to be marketed. If any, or all, of these Extraordinary Assumptions prove to be untrue, the preceding value estimate could be influenced. Additional Assumptions and Limiting Conditions appear in the Introduction Section of this report. The estimated exposure time for the subject property is one year, or less. This was determined from an analysis of market conditions and comparable sales. Sincerely, Barbara Rhoads, CG2202 REED & ASSOCIATES, INC. • 5"i.5.iiPipyi^"�. sykTE GF NERAAL OG2202 .,. o.. 3 PART I -INTRODUCTION TABLE OF CONTENTS Title Page - - - - - - - I Letter Of Transmittal - - - - - - - 2-3 PART I—INTRODUCTION Table Of Contents - - - - - - - 5 Subject Photographs - - - - - - 6-11 Certificate - - - - - 13 Assumptions And Limiting Conditions - - 14-15 Summary Of Important Conclusions - 16-17 Qualifications of Barbara Rhoads - - 18 PART II — FACTUAL DESCRIPTIONS Identification Of The Property - - - - - 20 Purpose Of The Appraisal - - - - 20 Definition of Market Value - - - - - - - - 20 Intended Use/User Of Report - - - - - 21 Property Rights Appraised- - - - - - 21 Scope Of The Work - - - - - 21-22 Ownership Of The Appraised Property - - - - _ 22 Date Of The Appraisal - - - - - - 22 Regional Map - - - - - 23 Area Data - - - - - - 24-40 Market Area Map- - - - - - - - 41 Market Area - - - - _ _ _ _ 42-43 Site Sketch - - - _ - - - - - - 44 Description Of Site - - - - - - - - - 45-46. Dwelling Sketch - - - - - - - - - 47 Description Of Improvements - - - - - -, - - 48 - Zoning - - - - - - - - - 49-50 Taxes and Assessments - - - - - - - . - 50 History - - - - - - - - - - - 50 PART III — ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER Highest And Best Use Analysis - - - - - - 52-54 Land Value - - - - - - - - - 55-62 Cost Approach - - - - - - - - 63 Sales Comparison Approach - - - - - - - 64-71 Income Capitalization Approach - - - - - - 72 Reconciliation - - - - - - - - 73-74 Exposure Time - - - - - - - 75 PART IV — ADDENDA Warranty Deed Assessment Records Flood Zone Map Subdivision Plat 5 I SUBJECT PHOTOGRAPHS 1 l`P AERIAL MAP Red lines represent the approximate boundaries of the subject property, NORTH CROSSOVER ROAD - LOOKING NORTHERLY NORTH CROSSOVER ROAD -LOOKING SOUTHERLY EAST SIDE SUBJECT BUILDING - LOOKING WESTERLY SOUTH AND EAST SIDES OF SUBJECT BUILDING -LOOKING NORTHWESTERLY WEST SIDE OF SUBJECT BUILDING AND STORAGE SHED - LOOKING NORTHEASTERLY WEST SIDE OF SUBJECT BUILDING - LOOKING SOUTHEASTERLY SOUTHEAST PART OF SUBJECT PROPERTY AND SOUTH DRIVE - LOOKING NORTHERLY f EAST PART OF SUBJECT PROPERTY - LOOKING NORTHERLY 10 PARKING AREA IN SOUTH PART OF SUBJECT PROPERTY - LOOKING WESTERLY WEST PART OF SUBJECT PROPERTY - LOOKING NORTHERLY INTERIOR VIEW - KITCHEN INTERIOR VIEW - OFFICE (LIVING ROOM) 12 4 CERTIFICATE I certify that, to the best of my knowledge and belief - 0 The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest with respect to the subject property and to the parties involved. • I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. • My compensation for completing this assignment is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or -the occurrence of a subsequent event, directly related to the intended use of the appraisal. • My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • I, Barbara Rhoads, have made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification. ■ I, Barbara Rhoads, have not performed services, as an appraiser, or in any other capacity, regarding the property that is the subject of this report within the three-year- period immediately preceding acceptance of this assignment. I have previously appraised the subject property. The effective date of the previous appraisal is May 7, 2013. Sincerely, Barbara Rhoads, CG2202 REED & ASSOCIATES, INC. CERTIFIED .c GENERAL CG2202 13 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title consideration. Title to the property is assumed to be good and merchantable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been -or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. "Unless otherwise stated in this report, the existence of hazardous materials which may or may not be present on the property was not observed by the appraiser. No responsibility is assumed for any such conditions or any expertise or engineering knowledge required to discover them. The client is urged to retain an expert if desired." 14 This appraisal report has been made with the following general limiting conditions: 1. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety. 3. The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations news, sales, or other media without the prior written consent and approval of the appraiser. 5. The Americans with Disabilities Act (ADA) became effective January 26, 1992. I (we) have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a_detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative effect upon the value of the property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider possible noncompliance with- the requirements of ADA in estimating the value of the property. 15 SUMMARY OF IMPORTANT CONCLUSIONS Client: The Fayetteville Fire Department, c/o Assistant Fire Chief Harley Hunt — Fayetteville, Arkansas Property Location: The subject property is located along the west side of North Crossover Road (AR. Hwy 265), Fayetteville, Arkansas; Washington County. The physical address is 822 North Crossover Road. The location is in the east part of Fayetteville. _ Purpose Of The Appraisal: Market value estimate Property Rights Appraised: Fee simple estate Ownership Of The Appraised Property: City of Fayetteville, Arkansas. Date Of Value Estimate: June 23, 2017 Description Of Site: The site contains approximately .92± -acre of land area. The site is irregular in shape. Improved access onto the site is westerly from North Crossover Road in the northeast part of the site and northerly from a drive extending westering from North Crossover Road in the southeast part of the site. The topography of the site is gently to -moderately sloping. Utilities available to the subject site include electricity, natural gas, telephone service, public sewer and water, and cable T.V. The site is zoned RSF-4, Residential Single Family 4 -units per acre. The majority of the site is cleared; however, shade trees and landscaping were noted. The site slopes moderately from east to west in the east part of the site and slopes gently from east to west in the west part of the site. The subject property is not located within a designated Flood Zone area. A Flood Zone Map appears in the Addenda. Please see the Description of Site section, later in this report, for further details pertaining to the site. Description Of Improvements: The subject site is improved with a Class "D" wood frame structure with frame and rock veneer exterior walls. There are also related site improvements. The structure is a one -level and contains a total of approximately 1,961± square feet (SF) of heated and cooled living area and a 786± square foot (SF) attached finished garage. Please see the Description of Improvements section, later in this report, for further details pertaining to the improvements. Highest And Best Use: In my opinion, the highest and best use of the subject property is for single-family residential utilization. 16 Final Value: $162,000 The preceding market value estimate reflects terms equivalent to cash to the owner and represents that for real property only. No personal property has been included in this report. The market value estimate is based upon the following Extraordinary Assumptions: 1. Subject and adjacent properties are in compliance with all applicable EPA regulations; 2. Subject electrical, plumbing and HVAC systems are adequate and in working order; 3. Subject will be utilized in compliance with current zoning regulations; the property is currently subject to a conditional use; however, the property is proposed to be marketed. If any, or all, of these Extraordinary Assumptions prove to be untrue, the preceding value estimate could be influenced. - Additional Assumptions and Limiting Conditions appear in the Introduction Section of this report. The estimated exposure time for the subject property is one year, or less. This was determined from an analysis of market conditions and comparable sales. 17 QUALIFICATIONS OF BARBARA RHOADS EDUCATION May 1983: Southern Methodist University Master of Science in Organizational Development May 1982 Southern Methodist University Bachelor of Science in Psychology State Certified General Appraiser– CG2202 APPRAISAL SEMINARS National Uniform Standards of Professional Appraisal Practice - Robinson Real Estate School – Houston, TX –August, 2002 National Uniform Standards of Professional Appraisal Practice – Appraisal Institute, North Texas Chapter, Dallas, TX – December, 2003 Business Practices and Ethics - Appraisal Institute, North Texas Chapter Dallas, TX – December, 2003 Scope of Work: Expanding Your Range of Services – Appraisal Institute, Ozark Mountain Chapter, Bella Vista, AR – April, 2004 Introduction to Income Capitalization – Appraisal Institute, Tulsa, OK – June, 2004 Evaluating Residential Construction – Appraisal Institute, Ozark Mountain Chapter, Bentonville, AR – May 2005 National USPAP Update–Lowman & Co., St. Louis, MO–November 2005 Real Estate Appraisal Methods - Lowman & Co„ Sadalia, MO – December 2005 Basic Income Capitalization –Appraisal Institute, Rogers, AR – January 2006 National USPAP Update – Appraisal Institute, Ozark Mountain Chapter, Joplin, MO. –November 2007 Market Analysis and Highest and Best Use–Appraisal Institute, Tulsa, OK – February 2008 National USPAP Update – Northwest Arkansas Appraisal Section – Fayetteville. AR – February 2010 Appraising Distressed Commercial Real Estate – Appraisal Institute; Rogers, AR – May 2010 - Forecasting Revenue – Appraisal Institute, Rogers. AR – May 2010 Analyzing Rural Residential Outbuildings - Northwest Arkansas Appraisal Section – Fayetteville, AR– May 2010 The Lending World in Crisis -What Clients Need Their Appraisers to Know Today – Appraisal Institute, Ozark Mountain Chapter, Rogers, AR. – April 30, 2012 How to Handle Foreclosures and Short Sales, Oakerest Appraisal Academy– Springdale. AR– May 2012 National USPAP Update – McKissock– Fayetteville, AR–May 2012 Introduction to Regression Analysis for Appraisers – McKissock – Fayetteville, AR– May 2012 REO and Short Sale Appraisal Guidelines– McKissock– Fayetteville, AR– May 2012 National USPAP Update – Appraisal Institute – Fayetteville, AR – March 2014 Residential Sales Comparison Approach (The Adjustment Process) – The Columbia Institute – Fayetteville – March 2014 Ten Deadly Mistakes Appraisers Make – NWA Appraisal Section – Bentonville – April 2014 Best Practices Best Appraisals – 2014 A Day with the Board – Little Rock, AR – May 2014 Evaluating Commercial Construction – Appraisal Institute– Bentonville, AR – April 2015 National USPAP Update – Appraisal Institute – Fayetteville, AR –January 2016 2016 "Day with Appraisers" – Little Rock, AR – May 2016 2017 "Day with Appraisers" – Little Rock, AR–May 2017 WORK EXPERIENCE August 2002 -Present– State Certified General Appraiser for REED & ASSOCIATES, INC.- Fayetteville, Arkansas 1983-1988-1-luman Resource Manager for Digital Equipment Corporation, Kansas City, Missouri 1981 -1983 -Training and Development Intern for Dresser Industries; Dallas, Texas COLLEGE COURSES Real Estate Principles; Principles of Real Estate Appraisal, Principles Real Estate Finance, Business Statistics; Management and Organizational Behavior. 18 PART II -FACTUAL DESCRIPTIONS 19 IDENTIFICATION OF THE PROPERTY The subject property is located along the west side of North Crossover Road, Fayetteville, Arkansas; Washington County. The physical address is 833 North Crossover Road. The location is in the east part of Fayetteville. The legal description appearing on the Warranty Deed pertaining to the subject property is as follows: Lot Ntmbored Seven (7) in'Aitack Numbered Three (3) of EaatwooA Subdivisi"I to the City of Fayetteville, Arkansas, as pet plot Of said Subdivision On file in the office of the Circuit Clerk and Ex -Officio Recorder of Wasbington County, Arl;,snsas. Subject includes a 2,7471 SF building structure and related site improvements situated on an approximately .92± acre site. Approximately 1,961± SF are heated and cooled area, approximately 786± SF are garage storage area. The subject property is utilized as offices for the Fayetteville Fire Prevention Bureau. The subject was previously utilized as a firehouse for the Fayetteville Fire Department. PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the fee simple estate of the subject property as of the effective date of this report. - DEFINITION OF MARKET VALUE Market Value is defined as follows: "The following definition of market value is used by agencies that regulate federally insured financial institutions in the United States: The most probable price that 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 and 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, • Both parties are well informed or well advised, and acting in what they consider their best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and; • 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.' Appraisal /nstihite, 71re 1]tetinrrten cfRecrt Estate r.ppraW —Sixth Edition, (Chicago: Appraisal /nstitate, 2015), P. /42. 20 INTENDED USE/USER OF REPORT The intended use of this appraisal is to determine a marketing price for the subject property. The intended user of this report is Assistant Fire Chief Harley Hunt of the Fayetteville Fire Department. PROPERTY RIGHTS APPRAISED In this appraisal, the fee simple estate of the subject property is addressed. Fee simple estate is defined as follows: "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. "Z I SCOPE OF THE WORK 1 The scope of this appraisal involves the application of the "Valuation Process" in estimating the market value of the subject property. The effective date of this report is June 23, 2017. Subject property was inspected in June 2017. Pertinent locational and physical data were obtained at the property inspection. Photographs of the property were taken by Barbara Rhoads- on June 23, 2017, which is the date of the most recent inspection. General data pertinent to the appraisal assignment was obtained from local sources. The land size is based on a Final Plat of Eastwood Subdivision. The building size is based on measurements taken by Barbara Rhoads during a previous (5/7/2013) property inspection. The legal description of the subject property was taken from a Warranty Deed pertaining to the subject property. Property tax data was researched through Washington County Assessment Records; however, it should be noted that subject is exempt from property tax. The history of the property was also researched through Washington County Assessment Records. The highest and best use of the property was projected based upon location, physical characteristics, past, present, and potential use, etc. The Sales Comparison Approach to Value has been utilized in this report. The Cost Approach was not utilized, as this is not typically the basis upon which buy/sell decisions are being made in this market on properties of the subject's nature. Application of the Cost Approach to Value was not considered necessary to produce a credible opinion of value for the subject property. The Income Capitalization Approach was not utilized as single-family dwelling rentals are not 2 Appraisal /nslihr[e, The ]ie[iauRsrle ��t[xisrl — Sixth Edition, (Chicago: Apprnisn/ tnslilnle, 2D/5), P90�•r 21 typically the basis on which properties of the subject's nature are being purchased/sold in the Market Area. Application of the Income Capitalization Approach to Value was not considered necessary to produce credible appraisal results for the subject property. The Approaches to Value appear later in the report. In the Land Value Section, comparable land sales were examined and analyzed for comparison purposes to the subject site to arrive at the estimated subject land value. The unit of comparison was price per SF of land area. The per SF value of the subject site was estimated from within the range of the adjusted comparables and was multiplied by the subject land size to arrive at the market value of the subject site as vacant. In the Sales Comparison Approach, comparable improved residential properties were presented and analyzed. The improved residential sales were compared to subject based on a whole property unit of comparison. The comparables were adjusted for differences with respect to subject. The market value of subject improved property was estimated from within the adjusted range of the comparables. The Sales Comparison Approach was -relied upon for the final value estimate for the subject improved property. OWNERSHIP OF THE APPRAISED PROPERTY As of the effective date -of this report, Assessment/Deed Records indicate the subject property to -be under the ownership of the City of Fayetteville, Arkansas. DATE OF THE APPRAISAL The effective date of this report is June 23, 2017. The date of this appraisal report is July 7, 2017. 22 REGIONAL, NIAP H W's, E T 23 R'eeas sixng m Z o^ wErie FwsYPte at M I S S 4 v R 1 � '� ............ •• Anderson : I;zfie= S70NE y@irAnton C- - Umrtice M C c7 N A L D10 3R - 1f4rrhari4rq' •fie - N-sw move Lanagan • RMastiSiun CRY ,TPimEY 17iii. Lake 7i � • B A ft R Y mLarrKle k:NprW4e�8 South EepRe Reek_ ltielctrim - : West � CNoel cCity + Mark Twain Rational Forex rBeta VWe Gravette1. �r2 Emaka ." Spavcrsw JAY • °etiotwdt'e' BE N N 9aavr{kake:.: prw DELAWARE B¢tt[Orraillr9g o BerrY�llr - MAYES!60 °mak 'Cer�(erS +23+ r A. 4 f2r r_. L { „'Gmn Forest W1pGrs ....., ... At— c�n'y}1'7E Salina Sotmd GertrVs - Cave Springs: z LocustColville EIm.Springsa. �. X27 ' Harrdsurr _ J oaks-- n o �6�ect PropdrtY xnSl .., ..... -.. _.:.............. 413. ._.: 5r+'vetr: ... marr* �d47' CMMnor° O K L A H O: M A +Platts •..n C+aslterr ... ... ..... ......`..... Hrnts,Aa Purdy, 6ep(ldcn° . - 244 Farrning}nn I - M A D I S tl N . 1t. 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The four counties are located in the extreme northwestern part of Arkansas and extreme southwestern part of Missouri, respectively, and make up the Fayetteville -Springdale -Rogers, AR Metropolitan Statistical Area (MSA). This area is bordered by the Oklahoma State line on the west, Newton County (Missouri) on the north, Carroll, Newton and Barry (Missouri) Counties on the east, and Crawford, Franklin and Johnson Counties on the south. The total land area of Benton County is indicated to be 847.367:L square miles, Washington- County 941.97± square miles, Madison County 834.26± square miles, and McDonald County 539.487L square miles. It should be noted that over 92.5%± of the population of the MSA is located in Washington and Benton Counties. As a result, this Area Data analysis primarily pertains to Washington and Benton Counties in Arkansas. The value of real property reflects and is influenced by the interaction of basic forces that motivate human activity. These forces are divided into four major categories: Social trends; Economic circumstances; Governmental controls and regulations; and, Environmental conditions. These forces exert pressure on human activities and are also affected by these activities. The interaction of all the forces influences the value of every parcel of real estate in the market. Social Forces: Social forces are exerted primarily through population characteristics. The demographic composition of the population reveals the potential, basic demand for real estate services. Based on data released by the U.S. Census Bureau, the 2000 Census indicated populations for Benton and Washington Counties of 153,406 and 157,715, respectively; the total for the two counties was 311,121.. The population of the two -county area as of 2010 was 424,404, with Benton County reflecting a total of 221,339 and Washington County a total of 203,065. The growth between 2000 and 2010 is indicated to be 36.4%±, or 3.64%± per year. The estimated 2016 populations of Benton and Washington Counties, based on State & County QuickFacts published by the U.S. Census Bureau, were 258,291± and 228,049±, respectively, or a total of 486,340±. The growth between 2010 and 2016 is estimated to be 14.6%±, or 2.43%± per year The U.S. Census Bureau data reflected the population of the MSA as of 2010 to be 463,204. The estimated 2016 population of the MSA, based on State & County QuickFacts, was 525,032±; this reflects an estimated growth of 13.3%±, or 2.23%1 per year, for the MSA between 2010 and 2016. The estimated 2015 population of the MSA was reported to be 513,449; this reflects a 2.3% growth in population between 2015 and 2016. According to the U.S. Census Bureau data, the Fayetteville -Springdale -Rogers MSA represents the 22nd fastest growing metropolitan area in the United States. The following is a summary of population data for Benton County, Washington County, and the Fayetteville -Springdale -Rogers MSA: 24 Location 2C2000 20102000-2010 % Inrr'ease .I [rll- 21116 F.16111ate 21110-2016 Increase Benton County 153,406 221,339 44.3% 258,291 16.7% Washington County 157,715 203,065 28.8% 228,049 12.3% F -S -R MSA 349,562 463,204 32.,5% 525,032 13.3% The following chart reflects the population trend in the Fayetteville -Springdale -Rogers MSA since 1990: Fayetteville--Springdale-RORers MIA Populatior7 525,000 475,000 425,000 - 375,000 325,000 275,000 2 25, 000 o M o w o n c o 0 G1 01 G O O O Source: U.S. Census Within Benton County, there are a total of 18+ incorporated towns and cities. Bentonville is the County Seat of Benton County. This city is located in the northern part of the county. Bentonville had a -population of 19,730 in 2000, a 75.3%+ increase since 1990. The 2010 Population was indicated to be 35,301, a 78.9%+ increase from 2000. The 2015+ population estimate was indicated to be 44,449+. The growth between 2010 and 2015 (estimate) was indicated to be 26.1%+, or 4.35%+ per year. Rogers is the largest city in Benton County, and is located to the south and east of Bentonville. Its 2000 population of 38,829 reflects a 57.2%+ increase since 1990. The 2010 population was indicated to be 55,964, a 44.1%+ increase from 2000. The 2015 population estimate was indicated to be 63,159+. The growth between 2010 and 2015 (estimate) was indicated to be 12.9%+, or 2.15%+ per year. Siloam Springs, located on the Oklahoma line in the southwestern part of the county, is the third major city in Benton County. It grew from a population of 10,843 in 2000 to 15,039 in 2010, a 38.7%+ increase. The 2015 population estimate was indicated to be 15,944+; this would reflect population growth of 6.0%+ since 2010. Some of the smaller cities and towns in Benton County include Gentry, Gravette, Pea Ridge, Lowell, Centerton, Decatur, Cave Springs, Bella Vista, etc. The City of Centerton is located west of Bentonville, and is considered a "bedroom" community. The 2000, 2010, and estimated 2015 populations of Centerton were reported to be 2,146, 9,515, and 11,193, respectively. This would indicate population growth of 343.4%+ between 2000 and 2010, and 17.6%+ between 2010 and 2015 (estimate). The City of Lowell is located in the southern part of Benton County, 25 just south of Rogers. The 2000, 2010, and estimated 2015 populations of Lowell were reported to be 5,013, 7,327, and 9,344, respectively. This would indicate population growth of 46.2%± between 2000 and 2010, and 27.5%± between 2010 and 2015 (estimate). There are a total of 13± incorporated cities and towns within Washington County. Fayetteville is the County Seat of Washington County. This city is located in the north -central part of the county. Fayetteville had a population of 58,047 in 2000. This represented a 37.9%± increase since 1990. The 2010 population was indicated to be 73,580, an increase of 26.8%1 from 2000. The 2015 population estimate was indicated to be 82,830±. The growth between 2010 and 2015 (estimate) was indicated to be 12.6%±, or 2.1%± per year. Fayetteville is also the largest city in Washington County. Springdale is the second largest city in Washington County, and is located north of Fayetteville. The northern part of Springdale actually extends into Benton County. Springdale had a population of 45,798 in 2000. This represented a 53.0%± increase since 1990. The 2010 population was indicated to be 69,797, an increase of 52.4%± from 2000. The 2015 population estimate was indicated to be 77,859±. The growth between 2010 and 2015 (estimate) was indicated to be 11.6%1, or 1.91/o± per year. Some of the smaller cities in Washington County include Prairie Grove, Lincoln, Farmington, West Fork, Johnson, Elm Springs, etc. A small part of Elm Springs is also located in Benton County. The following illustration displays the estimated 2016 population concentrations in the Fayetteville -Springdale -Rogers MSA: Source: Norlhivesi Arkansas Council The following table reflects population changes for the major cities in the Fayetteville - Springdale -Rogers MSA since 2000: 26 Aran CO.L' _ fjt - 3S"...� Ii..nC�ihnd !{.Nr4Mr i,�wti (• _ r_i�1 oro t L; 34 •a3an D 1€C • 214: }!n+ 7 n.ir::.,::, 24K 3:P; r-arr cen J? ?2V i7r Ksr...a, v.;•. ss•r. acr• • aev. �r fv;r rNnnn — Wlg�^.laud s HSI Source: Norlhivesi Arkansas Council The following table reflects population changes for the major cities in the Fayetteville - Springdale -Rogers MSA since 2000: 26 City _ 2000 J 2005 2000-2005 %Increase 2010 2005-2010 %o Increase .inky 2015 Estimate 2010.2015 %Increase Fayetteville 58,047 66,656 14.8% 73,580 10.4% 82,830 12.6% Springdale 45,798 62,459 36.4% 69,797 11.7% 77,859 11.6% Rogers 38,829 48,353 24.5% 55,954 15.7% 63,159 12.9% Bentonville 19,730 29,530 49.7% 35,301 19.5% 44,499 26.1% Lowell 5,013 7,042 40.5% 7,327 4.0% 8,549 16.7% Centerton 2,146 5,477 155.2% 9,515 73.7% 12,023 26.4% Siloam Springs 10,843 13,604 25.5% 15,039 10.5% 16,081 6.9% Source: U.S. Census As previously indicated, the Fayetteville -Springdale -Rogers MSA is reported to be the 22,d fastest growing MSA in the county. Population growth in the Benton -Washington County area is considered to be moderately to rapidly increasing. This trend is expected to continue for the foreseeable future. The major cities in Benton County have typically experienced higher population growth rates than the major cities in Washington County. It should be noted that the rate of growth has declined from what appears to have been the peak period in the early/mid 2000-2010± time period. The rate of population growth declined during the mid/late 2000- 2010± time period; however, still continued to increase at a moderate pace. The declining Population growth rate was likely the result of the recent "Great Recession". Oversupply issues in the real estate market that became highly visible in the mid part of the past decade, as well as deterioration in overall economic conditions, had an adverse impact on population growth. The country officially went into a recession in December 2007. The recession officially ended in June 2009; however, consumer sentiment did not necessarily support this. Economic conditions have improved since 2010±, and the real estate market has follows with significant improvement since 2012±. Social forces, particularly area population growth, are considered to have a positive effect on real property values in Benton and Washington Counties. Economic Forces: Economic forces are also significant to real property values. It -is necessary to analyze the fundamental relationships between current and anticipated supply and demand and the economic ability of the population to satisfy its wants, needs, and demands through its purchasing power. The following chart represents Non -Farm Employment Growth (not seasonally adjusted) for the Fayetteville -Springdale -Rogers MSA since 2000: 27 I Fayetteville -Springdale -Rogers MSA Non -Farm Payroll Jobs (Annual Average) 230,000 200,000 i 170,000 - - 140,000 i 110,000 - - 50,000 - Y' 50, 000 20,000 -10,00[1 oQo �Qti -,Q -5p �o� �� o°� �� �a atio anti ati� ��� oya q�� otic -�, ti ti�� ti ti ti n z �, - w No_ Employed w Annual Growth Source: United States Department of Labor- Bureau of Labor Statistics As previously indicated, the country was officially in a recession between December 2007 and June 2009. This recession, referred to as the "Great Recession", lasted 18 months. The previous longest recorded recessions since the Great Depression, the 1973-75 recession and the 1981-82 recession, each lasted 16 months. The Great Depression lasted 43 months. The recessions in 1991 and 2001 each lasted 8 months. The recession obviously impacted the rate of job growth 'in the Fayeiteville-Springdale-Rogers MSA. While the United States experienced negative year-on-year non-farm employment growth through all of 2008, the Fayetteville -Springdale -Rogers MSA remained positive through the first half of the year. However, non-farm employment numbers (year-on-year) turned negative in the MSA in mid -20081, and remained negative throughout 2009. The unemployment rate in the Fayetteville -Springdale -Rogers MSA peaked in 2010, with an annual average of 6.5%. In May 2010, non-farm employment numbers (year -on -year) -turned positive and have remained .positive through the latest recorded data researched, which was February 2017. Non-farm employment numbers in February 2017 are approximately 17-18%f greater than in February 2007 and 2008. The civilian labor force in Benton County averaged 120,331 for the year 2015. Washington County averaged 114,790 for the same time period. The civilian labor force for January 2017 was reported at 124,864 for Benton County and 117,981 for Washington County. In 2015, Benton County's unemployment rate averaged 3.9%, while Washington County's rate averaged 3.6%. The February 2017 unemployment rates for Benton and Washington Counties were indicated to be 3.2% and 2.8%, respectively. The February 2017 unemployment rates for the United States, State of Arkansas, and the Fayetteville -Springdale -Rogers MSA were 4.7%, 4.3%, and 3. l %, respectively. All of the preceding rates represent non -seasonally adjusted rates. The following illustration displays the estimated 2016 labor force concentrations in the Fayetteville -Springdale -Rogers MSA: 28 yn�'N�n-le lur LeLsr Farre mN, M! 6! Teti . 4i1Y8 'AAs) li}.vl'n iy (YIY -seem vrf �.�a 3,91J • Sll: Cipen.� ,in lh'--3611 1 ;a rrao� �:z sa; .. ir., . lr�" �} 36r;•i6R ��. id.zr — r VAIrr'.y:pr N1 20K ZN 2N-vK fa, i v piss n<•. crr. .a,e::a + alr i Source: Northwest Arkansas Council The Northwest Arkansas Area has been recognized by national publications, economists, and researchers for its economy, businesses, and quality of life. The following reflects several recent recognitions: • U.S. News and World Report ranked Northwest Arkansas 5th nationally on its 2017 ranking of the `Best Places to Live" list (ranked 3rd in -2016);- - • The Milken Institute, which _published a new report in December 2016, put the Fayetteville -Springdale -Rogers Metropolitan Statistical Area's economy at No. 30 among 200 large metropolitan areas; the region was especially strong in job and wage growth, while its weaknesses were mostly related to growth in high-tech components; • U.S. News and World Report ranked Northwest Arkansas 1st nationally in its May 2016 ranking of the "20 Best Affordable Places to Live"; • Forbes ranked Northwest Arkansas at No. 2 on its list of Best Midsize Cities for Jobs in May 2016; midsize cities were classified by having 150,000 to 450,000 nonfarm jobs in their metropolitan area; • Forbes and NewGeorgraphy.com ranked Northwest Arkansas at No. 3 among the nation's medium-sized cities for white-collar job growth in July 2016; the region ranked 16th among all U.S. metropolitan statistical areas; • In March 2016, Fast Company and Nerd Wallet ranked Northwest Arkansas 2nd nationally on its list of "Best Places for Minority -Owned Businesses"; • Lonely Planet, the world's largest publisher of travel -related books and guides, in February 2016 ranked Northwest Arkansas at No. 7 on its list of "Best in the U.S."; • Researchers at Chapman University's Center for Demographics and Policy in California determined in a report that Northwest Arkansas ranked No. 1 in the nation in family friendliness; the report, called `Building Cities for People" and made public in January 29 2016, measured metropolitan areas in categories such as commute times, housing costs, income, and migration; Forbes ranked Northwest Arkansas at No. 24 on its list of "Best Places for Business and Careers" in 2016; criteria included labor supply, quality of life, college attainment, crime statistics, local college quality, and cultural and recreational opportunities; the same report ranked Northwest Arkansas No. 11 in job growth;. Money Magazine included Northwest Arkansas on its 2015 list of the "25 Best Places to Retire"; this was primarily based on the wealth of year-round outdoor outlets Northwest Arkansas provides; New Geography placed Northwest Arkansas 10th on its list of "Best Cities for Job Growth" in 2014; this was for medium sized cities and the rankings were based on recent growth trends, mid-term growth and long-term growth, momentum, and current year growth. The Fayetteville -Springdale -Rogers MSA economy, according to a report delivered to the U.S. Conference of Mayors in 2014, grew 3.8% in 2013. It is projected to grow at 4.2% annually between 2013-20, making it one of the top MSA's in the nation. The regions gross metropolitan product ranked 3rd for the 2013-20 projection. Northwest Arkansas is No. 7 among 18 regions that will see the most economic growth in 2016, according to research by the U.S. -Conference of Mayors in June 2015. U.S. Census data reflect the following income figures for the Benton -Washington County area: Berton County The single-family residential sector of the Northwest Arkansas real estate market appears to have fully rebounded from the recent "Great Recession." Population growth and non-farm employment growth are strong in Washington and Benton Counties. This has resulted in increased overall demand for residential housing. As of the Second Quarter of 2016, Benton County totaled approximately 4,907 empty, single-family and duplex lots with Final Plat filed and/or receiving final approval. The total for Washington County was approximately 3,902. Based on lot sales to end users in the 2°6 Quarter 2016 in the two -county area, the total empty lot supply could constitute near a 3.5f year inventory. Housing starts and residential construction activity in both Benton and Washington Counties have increased significantly since 2011. Interest rates remain low, which is a positive for the housing market. Rates are expected to slowly move upward in the near future. However, rates are still projected to remain in an affordable range. This, along with continued improvement in non-farm employment, should sustain the downward movement in the number of empty residential lots in the two -county area. 30 2010 2015 Change Median Household Income $54.592 $56.239 3.0% Per Capita Income $24,912 Washington County $27,934 12.1% 2010 2015 Change V Median Household Income _ $45,544 $43.524 -4.4% Per Capita Income $21,840 $24,638 13.6% The single-family residential sector of the Northwest Arkansas real estate market appears to have fully rebounded from the recent "Great Recession." Population growth and non-farm employment growth are strong in Washington and Benton Counties. This has resulted in increased overall demand for residential housing. As of the Second Quarter of 2016, Benton County totaled approximately 4,907 empty, single-family and duplex lots with Final Plat filed and/or receiving final approval. The total for Washington County was approximately 3,902. Based on lot sales to end users in the 2°6 Quarter 2016 in the two -county area, the total empty lot supply could constitute near a 3.5f year inventory. Housing starts and residential construction activity in both Benton and Washington Counties have increased significantly since 2011. Interest rates remain low, which is a positive for the housing market. Rates are expected to slowly move upward in the near future. However, rates are still projected to remain in an affordable range. This, along with continued improvement in non-farm employment, should sustain the downward movement in the number of empty residential lots in the two -county area. 30 In Benton County, Multiple Listing Service (MLS) data reflects the median home price for the First Quarter of 2016 to be $164,000, as compared to $185,000 for the First Quarter of 2017. This indicates a 12.8% increase. In Washington County, the median home price for the First Quarter of 2016 was indicated by MLS data to be $160,000. This compares to $172,250 for the First Quarter of 2017. The increase calculates to 7.7%. New construction of single-family residential dwellings has occurred at a rapid pace in recent years. The number of residential building permits for Benton and Washington Counties is displayed in the following exhibit: Source: Streetsmart Residential Market Insight Report It should be noted that the data presented for 2016 in the preceding exhibit is only for the first half of 2016. The multi -family residential sector of the real estate market in Benton and Washington Counties was the first sector to rebound from the recent "Great Recession". In the multi -family sector, the two -county area indicated an overall vacancy rate of 1.45% in the Third Quarter of 2016. The Fayetteville multi -family market has a good history of strength, due to the University of Arkansas, and reflected a Third Quarter 2016 vacancy rate of 1.37%. The Rogers/Lowell, Bentonville, Siloam Springs, and Springdale multi -family markets also appear to be healthy with vacancy rates of 1.22%, 1.28%, 1.24%, and 2.00%, respectively. The multi -family residential sector has maintained low vacancy rates despite adding a significant number of new units in recent years. The majority of the new units constructed in recent years are located in Fayetteville. The Bentonville and Rogers/Lowell markets have also experienced substantial construction of new units, while Springdale has experienced very little new construction since the 2009-2010 time period. The number of multi -family building permits by units for Bentonville, Fayetteville, Rogers/Lowell, and Springdale is displayed in the following exhibit: 31 Residential BuildiIlg PerInits 1,866 1,660 1,406 2,260 2.060 BQ6 bca 400 1,01 206 1, 2009 2616 2011 2022 2613 2614 2615 2016 K Benton Counbi is Washington County Source: Streetsmart Residential Market Insight Report It should be noted that the data presented for 2016 in the preceding exhibit is only for the first half of 2016. The multi -family residential sector of the real estate market in Benton and Washington Counties was the first sector to rebound from the recent "Great Recession". In the multi -family sector, the two -county area indicated an overall vacancy rate of 1.45% in the Third Quarter of 2016. The Fayetteville multi -family market has a good history of strength, due to the University of Arkansas, and reflected a Third Quarter 2016 vacancy rate of 1.37%. The Rogers/Lowell, Bentonville, Siloam Springs, and Springdale multi -family markets also appear to be healthy with vacancy rates of 1.22%, 1.28%, 1.24%, and 2.00%, respectively. The multi -family residential sector has maintained low vacancy rates despite adding a significant number of new units in recent years. The majority of the new units constructed in recent years are located in Fayetteville. The Bentonville and Rogers/Lowell markets have also experienced substantial construction of new units, while Springdale has experienced very little new construction since the 2009-2010 time period. The number of multi -family building permits by units for Bentonville, Fayetteville, Rogers/Lowell, and Springdale is displayed in the following exhibit: 31 Multi-Family Permits (Units) 1,000 900 800 700 64a 500 40a 300 200 IGO 2043 2010 2011 2412 2013 201? 2015 2015 M Bentonville ■ Fayetteville rA Rogers/LmVell a Springdale Source: Streetsmart Multi -Family Market Insight Report It should be noted that the most recent Streetsmart report indicates that approximately 2,579± units in the Northwest Arkansas market are currently in the pipeline. This includes units very recently completed, under construction, or approved by planning commission with no building permits currently issued. With respect to the commercial sector of the real estate market in Benton and Washington Counties, the overall vacancy rate for Class "A" and "B" professional office space for the First/Second Quarter of 2016 was indicated to be 12.46%. The vacancy rate for Class "A" space alone was reported at 12.7%. These rates are for investment grade, non -owner occupied space. Obviously, job creation is critical to the absorption of office space. It should be noted that the overall professional office vacancy rate was thought to have peaked in mid/late -2010, with vacancy slowly decreasing since that time. -The overall vacancy rate for retail space has also slowly declined since 2010, and was indicated to be 8.38% (Class "A" and "B" combined) in the First/Second Quarter of 2016. This, too, is for investment grade, non -owner occupied space. It should be noted that the reported vacancy rate for Class "A" retail space in the First/Second Quarter of 2016 was 6.6%. Sales and leasing activity in the commercial sector began to significantly improve in mid -2013, and are currently considered to be at healthy levels. Commercial development land must also be considered. There remains a considerable amount of potential commercial development land in the two -county area; however, absorption is occurring as prime development land has been purchased in recent years for new development. A significant amount of construction activity has recently been completed, is on-going, and is planned in the Northwest Arkansas Area. New development projects include: Class "A" professional office buildings; strip, neighborhood, and community shopping centers; convenience stores; quick -service and full-service restaurants; hotels/motels, special-purpose properties; etc. The dollar values (in 1,000's) of commercial building permits in Northwest Arkansas are presented in the following exhibit: 32 NNVA Commercial Permit Values (in I MO's) 350-000 343,733 300.000 _j 0.000 231.664 21DO'GOO 1ss,oc4 1.4000 96,6&0 98,239 100.000 79,418 62,006 Pq l: 2010 2011 2012 iA _014 2015 2416 Source: The Skyline Report — 2nd Half 2016 Commercial Real Estate Market Summary With respect to hotels/motels/restaurants, the following increases/decreases in tax receipts collected between Quarter Two 2015 and Quarter Two 2016 were indicated: Bentonville +5.9%+ Fayetteville +8.6%+ Rogers -0.98%+ Springdale +3.6%+ Springdale and Rogers do not collect restaurant tax receipts. The economic base of the region consists of four basic areas: First, agricultural production with the primary commodities being beef cattle, dairy cattle, and poultry. The general offices of Tyson Foods, Inc., the largest poultry processor in the world, are located in Springdale in Washington County. Benton and Washington Counties have a considerable amount of rural acreage and, therefore, it would stand to reason that agriculture would be important to the area. There is also some cropland in the area, primarily green bean and orchard production (grapes). According to the USDA, Benton and Washington counties had total agricultural sales in 2012 of $529,128,000 and 443,025,000, respectively. Second, influence from the University of Arkansas located in Fayetteville. Total enrollment for Fall 2016 at the University was 27,065, an increase of 3.2% since Fall 2013. A second public academic institution, the Northwest Arkansas Community College, is located in Bentonville. Fall 2016 enrollment for the school was indicated to be 7,761, a slight increase from Fall 2015. In addition to the main campus, the NWACC also has branch campuses located in Springdale, Rogers, and Farmington. A Washington County Campus is proposed in the southwest part of Springdale. Construction of the facility should begin in the near future. Third, recreational usage primarily in the northeast part of Washington County, and the southeast, east, and northeast parts of Benton County. This recreational usage is primarily provided by Beaver Lake, a Corps of Engineers Reservoir on the White River. Beaver Lake affords typical fresh water sports such as boating, fishing, skiing, swimming, etc. Each of the major cities in the two -county area also has recreational amenities. It should be noted that Arvest Baseball Park opened in the Spring of 2008 in the southwest part of Springdale. This baseball park is the home of the Northwest Arkansas Naturals (Minor League AA Affiliate of the Kansas City Royals). The location is at the southwest corner of Watkins Avenue and 56th Street, 33 just west of I- 49. Fourth, the large number of manufacturing businesses and industries located within the two counties. The general offices of Wal-Mart, Inc., the world's largest retailer, are located in Bentonville. Wal-Mart has had a tremendous impact on the area, particularly Benton County. The general offices of J.B. Hunt, Inc., a major trucking company, are located in Lowell. As previously indicated, the general offices of Tyson Foods, Inc., the world's largest poultry processor, are located in Springdale. Wal-Mart, J.B. Hunt, and Tyson Foods are each Fortune 500 Companies. The presence of these companies drives demand for attorneys, accountants, architects, hotels, restaurants, retailers, etc. Most of the major industries are located in the larger cities in the counties. According to the 2012 Economic Census, total value of shipments by manufacturers in Arkansas was $67,213,000. According to State & County QuickFacts, total value of shipments by manufacturers in Washington County in 2012 was $3,487,047. Retail sales estimates for Benton and Washington Counties for 2012, based on State & County QuickFacts, were $2,905,967 and $2,925,758, respectively. The following table represents major employers in the MSA (as of 2016) Employer #,of E;m to secs± Sector/product Main Location Wal-Mart Stores (Home Office, DC's & Stores) 28,000+ Retail Bentonville Tyson Foods 12,000+ Protein Processing/Marketing Springdale University of Arkansas_ 4,000+ Education Fayetteville Simmons Foods, Inc. 3,900+ Poultry Processing Siloam Springs J.B. Hunt Transport Services 2,600+ Transportation Lowell Washington Regional 2,750+ Health Fayetteville 'George's Inc. 2,500+ Poultry Springdale Northwest Health Systems 1,900+ Health Bentonville/S rin dale Mercy Health Systems 1,500+ Health Multi le Arvest Bank 1,500+ Finance Bentonville Source: Employers; Local Chambers of Commerce, M.B.A. 7_oday In addition, Northwest Arkansas is the home of several satellite . offices of Fortune 500 companies supplying products to Wal-Mart Stores, Inc. These Fortune 500 companies with a presence in Northwest Arkansas include: IBM, Coca-Cola, Proctor & Gamble, Pfizer, Gillette, Mattel, Hershey, Sara Lee, Kimberly Clark, Heinz, Colgate, Clorox, Ball Corp., Disney, General Mills, Kellogg, Hormel, Newell Rubbermaid, Johnson & Johnson, Pepsico, Philip Morris, etc. Construction of the Crystal Bridges Museum of American Art in Bentonville has been a plus for the Northwest Arkansas economy, particularly the City of Bentonville. This museum opened in November 2011, and was a project of the Walton family. Crystal Bridges is located near the Central Business District of Bentonville, and, along with the "Downtown Bentonville' program, has been instrumental in the revitalization of the Central Business District. Near 3,000,000± people total have visited Crystal Bridges Museum since its opening. The "Scott Family Amazeum" opened in mid -2015±, just to the east of Crystal Bridges. The "Amazeum" is a hands-on, interactive museum for children and families with a foundation in the arts and sciences. 34 There are many financial institutions in Benton and Washington Counties. These institutions have typically provided an adequate supply of funds for residential, commercial, industrial, and agricultural growth. It should be noted that credit conditions tightened in 2008 as financial institutions dealt with problem real estate loans, and deteriorating economic conditions. The Federal Government infused funds into the financial market in an attempt to provide liquidity and ease credit. The major financial institutions in the area are located in Bentonville, Fayetteville, Rogers, Siloam Springs, and Springdale, with smaller banks and branches situated in many of the smaller communities. Currently, interest rates on long-term (15-30 years) residential first mortgages are typically in the 3.25% - 4.00% range. Interest rates on commercial mortgages are typically in the 4.00% to 6.00% range. The amortization period may be 15 to 25 years; however, the interest rate is likely to be fixed for only a 5 to 10 year period. Interest rates have begun to increase slightly due, in part, to Federal Reserve policy; however remain in an affordable range. Federal Deposit Insurance Corporation (FDIC) data indicate there are a total of 40 financial institutions in the Fayetteville -Springdale -Rogers MSA. Deposits as of Q4 2016 totaled $9,610,000± based on the FDIC data. Real estate development in the area has primarily been centered in the major cities, and in smaller communities such as Centerton, Farmington, Lowell, and Prairie Grove. However, rural development is also occurring with small acreage homesites visible throughout the two counties. Economic conditions are continuing to improve in the two -county area. The local economy has rebounded from the recent "Great Recession." A plus for the area has been continued year over year increases in non-farm employment numbers. Continued growth in non-farm employment is crucial to the health of the Northwest Arkansas real estate market. The long-term outlook is that economic forces will have a positive effect on real property values in Benton and Washington Counties. Governmental Forces: Governmental, political, and legal actions at all levels have a great impact on property values. The county seats of Benton and Washington Counties, as previously discussed, are Bentonville and Fayetteville, respectively. These two cities are some 20f minutes apart via I-49. County government in each county is under the direction of the County Judge and Quorum Court. Other elected county officials include the County Clerk, Circuit Clerk, Collector, Assessor, Treasurer, Sheriff, Coroner, etc. Property taxes in Arkansas are collected at the county level and distributed to the counties, cities, and school districts. In Arkansas, all real property, except agricultural land, is to be appraised at market value. Agricultural land is valued based upon soil class productivity. The appraised value is multiplied by a 20% assessment ratio to arrive at the assessed value. The assessed value is then multiplied by the appropriate millage rate to arrive at the annual property tax. However, in 2001, a tax relief act was passed in Arkansas, which limits the annual increase in property tax from the base year. A new term was created, called Taxable Value. Taxable Value is now multiplied by the applicable millage rate to arrive at the annual real estate tax. The annual property tax is due by October 15th in the year after it is levied. Individual property taxes in Benton and Washington Counties have generally increased over the last several years due to 35 continuing reappraisal; however, it should be noted that both Benton and Washington Counties made adjustments in real estate appraised values for property tax purposes due to the recent "Great Recession." Benton County does not have county zoning at the present time. Washington County, however, passed an ordinance introducing zoning regulations to unincorporated parts of the county. This zoning ordinance became effective in December of 2007. This zoning is enforced by the Washington County Planning Board. The major cities in the area also have zoning regulations. There are no adverse legislative restrictions on the use and development of real property in the area. However, it should be noted that some of the cities in Benton and Washington Counties have established Overlay Districts which place limitations on development of lands within the established districts. Benton and Washington Counties are considered to have adequate medical, school, lodging, and religious facilities to service the Trade Area. In August 2015, Arkansas Children's, Inc. announced plans to build a freestanding children's hospital in Springdale, Arkansas. Construction of the new facility is proposed to be complete by January 2018. The building is to include 233,613± square feet of inpatient beds, emergency care, diagnostic service, and clinical space. The building will also include a helipad. The hospital will employ over 250 employees. The following table reflects area schools' enrollments for the previous years: :Area School Enrollment _.._�._ Fall F2013 Fa 11 I 2014 Fa II _ 2015 1C:aI1 2016 Fayetteville Public Schools 9.421 9.503 9,652 9,863 S rin dale Public Schools 20,547- 21,120 21;260 21,554 Rogers Public Schools 14,757 15,027 15,077 15,419 Bentonville Public Schools 15,114 15,497 16,060 16,610 University of Arkansas - Fayetteville 24,537 26,237 26,754 27,194 Northwest Arkansas Community College Rogers/Bentonville 8,020 8,098 7,962 7,973 John Brown University — Siloam Springs 1 2,183 1 2,850 2,126 2,126 Source: Schools' Administration Unices There are also private church schools in operation in the two -county area, as well as charter schools. There are a total of five charter schools in Benton and Washington Counties, with additional schools planned. Fall 2016 enrollment at the area charter schools was reported at 2,161. Utilities available in the rural areas of Benton and Washington Counties include electricity and telephone service. Natural gas and rural water are also available in many areas. Public water and sewer are available in the major cities, as well as in most of the smaller communities. Overall, governmental forces in the area provide a positive effect on real property values in Benton and Washington Counties. Lack of public water and sewer in certain areas is a drawback. However, the Two Ton Water Project and Benton -Washington County Water Authorities have addressed much of the rural water needs in the two -county area. 36 I Environmental Forces: Both natural and man-made environmental forces influence real property values. Environmental forces include climatic conditions, topography and soil, natural barriers to future development, primary transportation systems, and the nature and desirability of the immediate area surrounding a property. The two -county area has relatively warm summers and mild winters. High temperatures in summer are often accompanied by high humidity. The average daily temperature is about 57 degrees. Each year there are about 58± days when temperatures go above 90 degrees and typically only a few days when temperatures drop to freezing or below; however, the past few years have seen cold extremes where the temperature has dropped below freezing on several days. The area has an average of 4 to 51 inches of snow annually, although there have been recent years where this has been exceeded. Rainfall averages around 45± inches annually. The following map illustrates the relationship between the cities and counties of the MSA (the four -county MSA is outlined in black): - � •. •. .•• , �.,. . Kgns e9 -AdlYlaagWrY Ku yj xqn ngsaq OklnRoma AXk ltl�3{ « ciq f11�0aFaaippi• Alap *a LDLLIi1,iQ#1% ... The area is part of the Ozark Highlands. In Benton County, topography ranges from broad plains and rolling hills in the western and central parts to rocky, rough, steeper hills in the east. Much of the eastern one-third of the county is covered by Beaver Reservoir. The elevation increases from west to east and ranges from 1,000± to 1,700± feet above sea level. The elevation of Washington County also varies from 1,000± to 1,700± feet. In general, the topography of Washington County is rough along the western, eastern, southern, and northwestern boundaries. Extending through the heart of the county, from the Oklahoma line to the City of Springdale, is a plateau -like area consisting of rolling, reasonably level land. The City of Fayetteville, located in the edge of the Boston Mountain Range, is quite hilly. Soil and subsoil conditions within the two counties range from fair to good for agricultural purposes. There are natural barriers to real property development in the area. These consist primarily of mountainous regions, rivers, etc. However, many of these barriers have a positive effect on agricultural usage. 37 The primary transportation routes in the two counties are I-49 and U.S. Highway 71B (north - south), and U.S. Highway 412 (east -west). From Fayetteville north to Bella Vista, I-49 provides divided highway access. South from Fayetteville, 1-49 provides divided highway access to Interstate 40 at Alma. U.S. Highway 71 south from Fayetteville was made a Scenic Byway in 1998. Divided highway access is now available from the region to Fort Smith to the south via I- 49/40, and to Little Rock to the southeast via 1-49/40. Also, U.S. Highway 412 provides divided highway access from Tontitown westerly to Siloam Springs near the Oklahoma State Line. Divided highway access is available westerly from the region to Tulsa, Oklahoma via U.S. 412 to the Cherokee Turnpike. U.S. Highway 71B, 1-49, and U.S. Highway 412 are each heavily traveled traffic arteries. U.S. Highway 71 B traverses_ Fayetteville, Springdale, Lowell, Rogers, Bentonville, and Bella Vista. U.S. Highway 412 traverses Springdale, Tontitown, and Siloam Springs. Construction on a divided highway phase of U.S. Highway 412 east of Springdale to near Hindsville was completed in 2001. Construction of an extension of the U.S. Highway 412 divided highway to near Huntsville was completed in 2014. U.S. Highway 62 and State Highway 16 in Washington County also provide east -west access, as do State Highways 12, 102, and 264 in Benton County. In addition, there are other state highways as well as county roads providing adequate access throughout the area. There is a significant number of secondary roadways traversing the Northwest Arkansas Area. New major highway construction in the two - county area includes the Bella Vista Bypass and the northern Springdale Bypass: With respect to the northern Springdale Bypass, the segment of the highway west of 1-49 (between 1-49 & U.S. 412) will be constructed prior to the segment east of I-49. Construction of the west segment of the Northern Bypass began in 2015. Part of the Bella Vista Bypass has recently been completed; however, additional phases remain. The timing of completion is uncertain at the present time. The State of Missouri has not announced the proposed construction timing/schedule for their part of the Bella Vista Bypass. It- should be noted that construction of additional lanes to 1-49 in Benton and Washington Counties is being completed in phases. Some sections of the widening project have already been completed, while some sections are currently being completed. Certain sections are also proposed to be widened in the near future. Finally, several of the cities in the region are in the process of improving/constructing new transportation routes within their municipalities. It should be noted that a new Interchange opened in 2014 along 1-49 in Springdale. The location is at 1-49/Don Tyson Parkway in the southwest part of Springdale, and has improved access from I-49, via Don Tyson parkway, to the Tyson Foods, Inc. General Offices. Another Interchange along 1-49 is proposed in Bentonville. The location is at 1-49/SE 8t" Street in the east part of Bentonville. This will allow good access from 1-49, via 8" Street, to the Wal-Mart Stores, Inc. General Offices. The Northwest Arkansas Regional Airport (XNA), which opened in November 1998, is located near the small community of Highfill in the northwest part of the region. Total construction cost was estimated near $109± million. Some 2,185± acres were involved. There are two runways, both 8,800± feet in length by 150± feet in width. There is also a 75' x 8,800'± taxiway. The terminal building was indicated initially near 69,000± square feet in size; however, has been expanded adding a new terminal. The new terminal reportedly cost $20-25 million, and allowed parking space for twelve additional planes. The addition reportedly added 51,000± square feet of building area. Direct flights are now available to many of the major MSA's across the country. In 2015, the airport served some 1,290,850± passengers, while in 2016, the airport served a reported 1,338,042± passengers. Construction of a four -level parking deck began in January of 2017. The new garage will provide for an additional 1,400± parking spaces, and is proposed to 38 be complete in August 2018. A 20 -Year Master Plan for the airport includes the addition of a second runway. A new transportation route to the airport is also proposed to be constructed in the near future. This new route is to run northwesterly from the west segment of the Northern Springdale Bypass. The new route will likely intersect the Northern Springdale Bypass a short distance west of State Highway 112 (north -south route). State Highway 264 currently provides access to the south entrance to the airport, while State Highway 12 provides access to the north entrance. Growth has occurred toward the airport, especially along State Highway 12 from Bentonville. The airport has exceeded initial projections on the number of people utilizing the facility. The two -county area is reasonably well located and is within relatively short driving times of major metropolitan areas. Driving time to Tulsa is less than 2± hours, to Little Rock is 2.5-3f hours, and to Kansas City is 3-4f hours. Environmental forces, for the most part, are considered favorable for real estate development in the area, and provide a positive effect on real property values in Benton and Washington Counties. CONCLUSIONS Each of the major forces affecting real property values- has been addressed in this section of the report. The conclusion is that each of the forces has a positive effect on value. Between July 2015 and July 2016, the estimated population growth in Benton and Washington Counties combined was 11, 19 ] f people. _ This calculates to near 31 :L persons per day (1 1'191 365 days). This represents -net growth, including births, deaths, out -migration, and in -migration. This is lower than at the peak time in the mid part of the past decade; however, is still significant. This population growth is occurring in part due to the job market in Northwest Arkansas. The continued strong growth in non-farm employment in the two -county area not only increases in - migration numbers, but also reduces out -migration numbers. The population growth results in demand for residential housing, both single and multi -family, which, in turn, creates demand for commercial real estate development to provide services for the area residents. Availability of favorable financing terms continues to be an enhancement for both residential and commercial development. Wal-Mart Stores, Inc., Tyson Foods, Inc., and the University of Arkansas are the major drivers of the Northwest Arkansas economy, and this is expected to continue into the foreseeable future. Wal-Mart Stores, Inc., has impacted development through -out the two -county area, particularly in Bentonville. The poultry industry continues to lead the Agricultural Sector of the local real estate market, with Tyson Foods, Inc., Simmons Foods, Inc., and George's, Inc., being the primary players. Tyson Foods, Inc., is also instrumental in the revitalization of the Springdale Central Business District by undertaking new development. The University of Arkansas remains the focal point of Fayetteville. Student growth is creating demand for new residential (multi- family in particular) development. The trucking industry, led by J.B. Hunt Transport Services, Inc., also represents a plus for the local economy and brings national recognition to the area. 39 The medical community in Benton and Washington Counties also creates demand for real estate development in the area. Washington Regional, Northwest Health systems, and Mercy Health Systems are the major employers. A new Arkansas Children's Hospital is currently under construction in the southwest part of Springdale. This should create demand for residential and commercial development in that area. In summary, the Benton -Washington County Area appears to have the foundation and composition for continued strong growth. This reflects positively on real estate development and real property values in the area. 40 MARKET AREA MAP 41 '4m Sl 14 l f l.4r b : 2 19 Z F ' 75 9 Asn $1 .; 46' z R l*,uez: iLvr'ry:C lr. f:d$E6f1 L7f }'serf Rept` � a n ao�s h; ... '� E hlparrderin,k 2116 z E=�ladfi 4l- � � _x43sa' Rue. � ,ubjrclwoc�lr a- M$riVr-Ilr. E Reukvmad-' .I. 91 'Y rx63' to Ir Dick.€m1i51. � _ �1y.D= Sa05 T, � 711rin SI .j = ..�"-cn+�s-Rim q ;atuoi FayRN>.wilt$ z � FtudyRrsrj., i I h E Rock a, o wYmara [d r tir g ael °� T a 'Yiie4crs .. ql F...Sih St. cv Ill SI E }{4r11:.5719"' F;d a �/u�wl71a rn m is 16 n, fi 41 MARKET AREA MJ The subject property is located along the west side of North Crossover Road (AR Highway 265), in the east part of Fayetteville, Arkansas; Washington County. The physical address is indicated to be 833 North Crossover Road. Fayetteville had an estimated 2015 population of 82,830±, according to the U.S. Census Bureau. The City of Springdale is located just to the north of Fayetteville and had an estimated 2015 population of 77,8591. The majority of Springdale lies within Washington County; the extreme northern portion of Springdale extends into Benton County. The estimated 2016 populations of Washington and Benton Counties were 228,049± and 258,291±, respectively. Washington, Benton, and Madison Counties, in Arkansas, and McDonald County, in Missouri, comprise the Fayetteville -Springdale -Rogers MSA (FSR MSA). The estimated 2016 population of the MSA was approximately 525,032±. The May 2017 unemployment rate for the FSR MSA was indicated to be 2.3±%. Market Area is defined as: "The geographic area in which a -property's most direct compelilors are iocaled; a snbsel of the markel area. "3 The subject Market Area includes properties lying south of East Mission Blvd., east of Happy Hollow Road, north of East Huntsville Road, and along and in close proximity to North Crossover Road. The Market Area is estimated to be approximately 65%± built-up. The Market Area consists of single-family residential, multifamily residential, special-purpose, and commercial uses. Single-family uses are scattered throughout the Market Area, primarily just off Crossover Road to the east and west. There were several newer single-family subdivisions noted in the Market Area; the majority of these address the upper end price range of homes. Mission Heights is a walkable mixed-use neighborhood currently under development in the Market Area. Mission Heights is located along the south side of East Mission Blvd., a short distance west of the intersection of East Mission Blvd. and North Crossover Road. Single-family dwellings in Mission Heights are currently listed "For Sale" in the $524,000 to $589,000 price range. It should be noted that Mission Heights was previously known as Ruskin Heights. Ruskin Heights was transferred to a local financial institution in December 2010 due to the economic downturn of the "Great Recession". This property was purchased to resume development and renamed Mission Heights in 2015. Additionally, a newer subdivision known as Stone Mountain is located across Crossover Road in the southeast part of the Market Area. This development includes 120 lots, of which 40 are still 3 Appraisal /nslihae, 771e Die igmtrypLftiv[JlEyale AI g a+sr±l — Six1h Edition, (Chicago: Appraisal Institute, 2015), P. 43- 42 f vacant. In 2017, homes in Stone Mountain have sold in the mid $400,000 to the mid $500,000 price range. Multifamily uses were noted in the south part of the Market Area. The most notable multifamily property in the area is The Cliffs apartment community, located along the west side of Crossover Road in the southwest part of the area; this development includes approximately 740+ units, clubhouse, swimming pools, walking trails, etc. Special-purpose uses in the Market Area include Vandergriff Elementary, McNair Middle School, and Happy Hollow Elementary School. The Fayetteville School District has somewhat recently constructed a new Happy Hollow Elementary School in the south part of the Market Area. Commercial uses were noted in several parts of the Market Area, including near the Crossover Road./Mission Blvd. intersection, and near the Crossover Road./East Huntsville Road intersection. The area near the Crossover Road/Mission Blvd. intersection includes a number of commercial properties including: a Wal-Mart Neighborhood Market, Walgreens's, Harp's Grocery Store, Arvest Bank branch, Taco Bell, and numerous other commercial properties including c -stores, restaurants, branch banks, etc. Property uses in close proximity to the subject property include: single-family residential uses to the east, across North Crossover Road; property owned by Southwestern Electric Power Company (SWEPCO) to the south: a SWEPCO electric substation to the west and vacant land to the north. The topography of the Market Area ranges from gently rolling to moderately/steeply sloping. Soil and subsoil conditions are not generally considered adverse to building construction. Overall, drainage is considered adequate. Utilities available in the Market Area include public water and sewer, electricity, natural gas, cable communications, and telephone service. The Market Area is considered to be in the growth stage of its life cycle. The Market Area is considered to be well located near major thoroughfares and in close proximity to major area employers, schools, churches, shopping, etc. Overall real estate market conditions in Northwest Arkansas have previously been discussed in this report. The near term outlook for the Northwest Arkansas real estate market is considered positive. 43 SITE SKETCH 44 DESCRIPTION OF SITE AREA/DIMENSIONS/SHAPE: The subject site consists of approximately .92± acre or 40,245± SF of land area. Dimensions of the site appear on the Site Sketch on the preceding page. The dimensions were taken from the Plat of Eastwood Subdivision. The north boundary dimension is approximately 291.1'±; the south is 212'±; the east/southeast is 178.5'± and the west is 160'±. The site is irregular in shape. ACCESS/FRONTAGE: The site is accessed westerly from North Crossover Road (AR. Hwy 265) in the northeast part of the site and northerly from a drive that extends westerly from North Crossover Road across the parcel to the south in the southeast part of the site. The site includes approximately 178.5'± of frontage along the west/southwest side of North Crossover Road. North Crossover Road is asphalt paved with concrete curbs and sidewalks. TOPOGRAPHY: The topography of the site is gently to moderately sloping. The site slopes moderately from east to west in the east part of the site and slopes gently from east to west in the west part of the site. The majority of the site is cleared; however, shade trees- and -landscaping were noted. Soil and subsoil conditions are not believed adverse to building construction; however, a soil test report on the subject site has not been examined. Building improvements are situated on the subject site, and nearby sites. The subject site is not indicated to be located within a designated Flood Zone area. A Flood Zone Map appears in the Addenda. STREET IMPROVEMENTS: Sidewalks Curbs Street Surface On -Site Parking Off -Site Parking Lei 01a001DW X Yes —No - X Yes No - X Asphalt X Asphalt Yes X No Utilities available to the subject site include electricity, natural gas, telephone service, public water and sewer, and cable T.V. (typical city). DISCUSSION OF ECONOMIC INADEQUACIES: No economic inadequacies were noted. 45 EASEMENTS OR ENCROACHMENTS ON SITE: The south egress/ingress drive appears to encroach on the property to the south that is under the ownership of SWEPCO. Cursory research of Washington County property records did not reveal an access easement to the subject property. Subject also includes an additional access drive in the northeast part of the site. A 20' utility easement runs along the south run along the North Crossover Road frontage the SWEPCO property to the south. CONCLUSIONS: boundary of the site. Overhead utility lines . Overhead transmission lines are located on Subject site relates reasonably well to its surroundings and is considered functionally adequate for certain types of residential development. 46 BUILDING SKETCH Subject Building Size 1961± SF Subject Garage Size 786± SF $50 24.4` OffiC,Q Bath pfkc Hath OttlGe Garage Bath Kitchen Office Office OHD 47 DESCRIPTION OF IMPROVEMENTS The subject building is a Class "D" wood frame structure with frame and rock veneer exterior walls. There are also related site improvements. The structure includes 1961± SF of heated and cooled living area and a 786± SF attached, finished garage. It should be noted that the structure was originally constructed for utilization as a firehouse and was constructed from single-family .residential dwelling plans and specifications. The foundation is reinforced concrete perimeter and the floor structure is concrete slab. The roof structure is wood joists and decking and the roof cover is asphalt shingles. The interior layout consists of 5 offices, 2 bathrooms, kitchen, and utility area. The original plans for the subject building were for utilization as a single-family dwelling which would have included a living room, dining room and three bedrooms. These rooms are each currently being utilized as offices. The doorway from the kitchen to the dining room has been removed so there is currently no direct access into the original dining area from the kitchen. Should the building be converted to utilization as a single family dwelling the doorway could be reconstructed. One full bathroom includes a water closet, combination shower/bathtub, and sink. An additional full bathroom includes a combination shower/bathtub, water closet, and two sinks. Washer/dryer hook-ups are located in the kitchen. Kitchen appliances include dishwasher, combination range/oven and garbage disposer. There is a fireplace in an office which would likely be utilized as a living room. Floor covering in the building consists primarily of wood and ceramic tile. Interior walls are primarily sheetrock. Ceilings are sheetrock, some with ceiling fans. The building includes central heat and air-conditioning. There is a 786± SF attached two -car, finished garage. A storage area is located within the garage and a storage building is located just west of the garage in the rear yard. The overhead door represents a super adequacy, as it is taller than would normally be utilized in conjunction with a typical single-family dwelling. An additional super adequacy is the ratio of a 789± SF garage to a 1961± SF dwelling. The structure includes gutters and downspouts. Site improvements include: landscaping; concrete and asphalt drives, fencing; concrete patios and walkways, etc. The building is considered to be of average quality construction and is in average (dated) condition as of the effective date of value. Some deterioration of the siding was noted. The structure is believed to have been constructed in the 1985± timeframe. The structure suffers from functional obsolescence in construction and layout compared to newer single-family dwellings and due to utilization as an office building. The effective age is estimated to be 32± years. The remaining economic life is projected to be 18± years. 48 ZONING Based on the City of Fayetteville Zoning Map, the subject property is zoned RSF-4, Residential Single-family — Four units per acre. RSV 4 E7 The following pertains to -the RSF-4 zoning district: 161.07 District RSF-4, Residential Single - Family — Four Units Per Acre (A) Pur'Pose. The RSF A Residential District is designed to permit and encourage the development of low derlsity detached dwellings in suitable envi(onments, as well as to protect existing development of these types. (ti) Uses. (1) Permitted uses. ffUnit4l lAcceazo t -wide uses b ri ht Single-family dwellin s dwellings 49 Subject site is zoned RSF-4, Residential Single -Family 4 units per acre. The property appears to have a Conditional Use permit for office utilization. A representative with the City of Fayetteville Planning office indicated that there was no guarantee a Conditional Use permit would be granted in the future. TAXES AND ASSESSMENTS The subject is a government entity and is except from property tax. Should the property be converted to single-family residential use it would be subject to taxation. The subject property is located within the Fayetteville School District. HISTORY As of the effective date of this report, the subject property was under the ownership of The City of Fayetteville, Arkansas. This is per Washington County Assessment and Deed Records. The Warranty Deed is recorded at Instrument 934/893 in the Washington County Circuit Clerk's office. A copy of the Warranty Deed appears in the Addenda of this report. To my knowledge, the subject property is not currently under contract or listed for sale. The client indicated they might market the property in the near future. As of the effective date of this report, the subject property was utilized as the offices of the Fayetteville Fire Prevention Bureau. 50 PART- III - ANALYSIS OF DATA AND O P INIONS OF THE APPRAISER 51 HIGHEST AND BEST USE AND IMPROVEMENTS ANALYSIS The definition of highest and best use is as follows: 1. "The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset 's existing use or,for some alternative use. This is determined by the use that a market participant would hcn,e in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and most profitable use for which the property is adaptableandneeded or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions). "a In estimating Highest and Best Use, the appraiser goes through essentially four stages of analysis: a. Possible Use - To what uses is it physically possible to put the site in question? b. Permissible Use (legal) - What uses are permitted by zoning and deed restrictions on the site in question? C. Feasible Use - Which possible and permissible uses will produce any net return to the owner of the site? d.- Highest And Best Use - Among the Feasible Uses, which Use will produce the highest net return or the highest present worth? "AS A VACANT SITE" Physically Possible The site contains approximately .92f acre of land area. The site is irregular in shape. Improved access onto the site is westerly from North Crossover Road and northerly from a drive that extends westerly from North Crossover Road located on the property to the south. The topography of the site is gently to moderately sloping. Utilities available to the subject site include electricity, natural gas, telephone service, public sewer and water, and cable T.V (typical city). The subject property is not located within a designated Flood Zone area. A Flood Zone Map appears in the Addenda. Physically possible uses of the subject site include those within size limitations. 4 Appraisal Institute, Vie Uiclionarr of tteol Estate Apt raisaf — Sixth Edition, (Chicago: Appraisal Institute, 2015), A 109 52 Legally Permissible The subject site is zoned RSF-4, Residential Single-family four units per acre based on information provided by the City of Fayetteville. Based on the City of Fayetteville Zoning Ordinances the following applies to the subject property: 161.07 District RSF-4, Residential Single - Family — Four Units Per Acre (A) purpose. The RS;" -n Residential District is designed to permit and encourage the development of low density detached dwellings in suitable environments, as well as to protect existing development of these types. (8) Uses. (1) Permitted uses. Unit 1�Citygidemus es b n ht Unit 8 -fail dwellins Unit 41 Accesso dwellin s The physically possible and legally permissible uses of the subject site are those within size limitations that comply with the RSF-4 zoning requirements. Financially Feasible The subject is located _along the west side of North Crossover Road in the east part of Fayetteville. The location is within Eastwood Subdivision. -- The Market Area is considered to be well located near major thoroughfares and in close proximity to major area employers, schools, shopping, etc. Overall real estate market conditions in Northwest Arkansas have previously been discussed in this report. The single-family residential sector is also considered strong at the present time with good activity levels and significant new construction. The outlook for the residential sector through the remainder of 2017 is considered good. The near term outlook for the Northwest Arkansas real estate market is considered positive. The physically possible, legally permissible, and financially feasible use of the subject site is considered to be single-family residential development, as demand dictates, within size limitations that complies with the RSF-4 zoning requirements. Maximally Productive In my opinion, the highest and best use of the subject property "as a vacant site" is for single- family residential development, as demand dictates, within size limitations that complies with the RSF-4 zoning requirements and in conformity to the Market Area. 53 "ASIMPROVED" The subject site is improved with a structure that is utilized as an office building; however, was constructed from single-family dwelling plans and specifications. The heated and cooled area contains approximately 1961± SF. There is also an attached 786± SF finished garage and related site improvements. The size and height of the garage represents a super adequacy for single- family residential utilization. The structure was originally constructed as a firehouse. The structure is believed to have been constructed in 1985. The effective age is estimated to be approximately 32± years. Site improvements primarily include primarily include landscaping; concrete and asphalt drives, fencing; concrete patios and walkways, etc. The improvements are considered to be in average (dated) condition, overall. The site improvements are also considered to be in average condition. No external obsolescence is indicated. The improvements do suffer from Accrued Depreciation, including physical deterioration and functional obsolescence; however, in my opinion, there is still significant remaining economic life. In my opinion, the highest and best use of the subject property "as improved" is for single-family residential utilization. The subject property could continue to be utilized for office use should a Conditional Use permit be granted by the City of Fayetteville. Conversations with a representative with the City of Fayetteville Planning Department revealed that there was no guarantee that an additional Conditional Use permit would be granted should the City of Fayetteville sell the property. 54 LAND VALUE In the valuation model, land value estimate is a separate step. Sales comparison is the most reliable way to estimate land value. When few sales are available, or when the value indication by sales comparison needs additional support, other procedures may be applied. The other procedures used to obtain land value indications are allocation, extraction, subdivision development, land residual, and ground rent capitalization. The techniques are defined as follows: "Reproduction Cost is the estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. "'i "Replacement Cost is the estimated cost to construct, at current prices as of the effective appraisal date, a building with utility equivalent to the building being appraised, using Inodern materials and current standards, design, and layout. Entrepreneurial Incentive is the amount an entrepreneur expects to receive for his or her contribution to a project. Entrepreneurial incentive may be distinguished froln entrepreneurial proftl (often called developer's profit) in that it is the expectation of fitlure profit as opposed to the profit actually earned on a development or improvement. The amount of entrepreneurial incentive I equh ed for a project represents the economic reward sufficienl to molivale an entrepreneur to accept the risk of the project and to invest the time and money necessary in seeing the project through to completion. "' "Accrued Depreciation is the difference behi een the cost of an improvement on the effective dale of the appraisal and the market value of the improvement on the same date. "8 "Effective Age is the age of property that is based on the amount of observed delerioralion and obsolescence it has sustained, which may be drfferen! from its chronological age. " "Economic Life is the period over which in7provenlenis to real estate contribute to property value ", t "Economic Age -Life Method is a method of estimating depreciation in which the ratio between the effeclive age of a building and its total economic life is applied to the current cost of the imp•ovemenls to obtain a lump-sion deduction. "t t The following comparable land sales are utilized in estimating the market value of the subject site "as vacant" by the Sales Comparison Approach: 5 Appraisal hrslihue, The Dictionary gf Real hs'la to /Udnr•ats[tl — Sixth Edition, (Chicago: Appraisal Instihue, 2015), P. 195. G AI ppraisa/ hrstitnle, The Pictionamyaf Real lsiale Appmynsal — Sixth Edition, (Chicago. Appraisal Institute, 2015), P. 197. 'Appraisal Institute, 77ie Drctionan, 2rReal I..'aate Apj afisat — Sixth Edition, (Chicago: Appraisal Institute, 2015), P. 76. 3 Appraisal Institute, The 1)urliejrrary pf Real Axiato Aprinauixat — Sath Edition, (Chicago: Appraisal Insttn ie, 2015), P_ 63. AppraisalInslinne, 77m 17rctuanarvafReal EstateAt) arrrisal-Sixth Edition, (Chicago: Appraisal Institute, 2015), I'. 74. to Appraisal hustituue, The❑icuanrny of Rcal l•: Ttate Aluny -Sixth Edition, (Chicago: Appraisal Institute, 2015), P, 72, 11 Appraisal Institute, The Vicrennau , p Realiislate:I jr; is stir— Sixth Edition, (Chicago: Appraisal Institute, 2015), P, 71. 55 LAND SALE 1 GENERAL INFORMATION General/Specific Type: Residential Record #: 1968 Location: East side of Crossover Road Book/Page: 2016/35243 City: Fayetteville County: Washington State: AR Pa rcel(s): 765-14274-000 S -T -R: 14-16-30 Lot/Block: N/A Subdivision: N/A LepL Pt; of the SE I .4 of the NE 1 /4 of 14-16730 SALE INFORMATION Sale Date: November 17, 2016 Financing: Cash to Sellers Sale Price: $35,000 Conditions of Sale: Arm's -Length Adjusted Sale Price: $35,000 Exposure Time: 35 Days Grantor: Samuel J. Johnson and Melanie A. - Rights Conveyed: Fee Simple Johnson Grantee: Bobby Steven Kegley and Tara Chantelle Verification: MLS: Washington County Circuit Clerk PROPERTY INFORMATION Gross Land Size: 0.630± Acres, or 27,443± SF Indicators Total Frontage: Crossover Road (AR. Hwy 265) Sale Price/Gross Acre: $55,556± Zoning: RSF-4, Res. Single-family - Four Units per Sale Price/Gross SF: $1.28± Acre Topography: Gently to Moderately Sloping Adjusted Sale Price/Gross Acre: $55,556± Utilities: Typical City Adjusted Sale Price/Gross SF: $1.28± Highest & Best Use: Residential Remarks: This property represents a .63± acre lot located along the east side of Crossover Road in the east part of Fayetteville. The location is across Crossover Road from The Cliffs Apartments. The property is zoned RSF-4. 56 P IV LAND SALE 2 GENERAL INFORMATION General/Specific Type: Residential Record #: 1896 Location: W. side of E. Oaks Manor Drive Book/Page: 2016/7634 City: Fayetteville County: Washington State: AR Parcel(s): 765-09021-000 S -T -R: 35-17-30 Lot/Block: 006/003 Subdivision: Oakland Hills Addition Leg_al: Lot 3. Block 6, Oakland Hills Addition, to the City of Fayetteville _..._. ..... .. ---- SALE INFORMATION Sale Date: March 21, 2016 Financing: Cash to Seller Sale Price: $42,894 Conditions of Sale: Arms Length Adjusted Sale Price: $42,894 Exposure Time: 52 Days Grantor: W -Y, Incorporated Rights Conveyed: Fee Simple Grantee: Rob A. Stanley and Pamela J. Stanley Verification: MLS: Washington County Circuit Clerk _...__..... --–--- _..... –.._._—... _._.._ PROPERTY INFORMATION Gross Land Size: 0.340+ Acres, or 14,8101 SF Indicators Total Frontage: E. Oaks Manor Drive Sale Price/Gross Acre: $126,1591 Zoning: RSF-4, Res. Single-family - Four Units per Sale Price/Gross SF: $2.901 Acre Topography: Gently Sloping Adjusted Sale Price/Gross Acre: $126,159+ Utilities: Typical City Adjusted Sale Price/Gross SF: $2.90+ Highest & Best Use: Residential ...._..........-------------•-----.–.. - _..................------- ............... .....I ........... .......... •................... Remarks: This property represents a .341 acre single-family lot located along the west side of E. Oaks Manor Drive in Oakland Hills Addition in Fayetteville. The physical address is 917 E. Oaks Manor Drive. 57 LAND SALE 3 GENERAL INFORMATION General/Specific Type: Residential Record #: 1897 Location: SEC of E. Township Street and N. Freshwater Ave. Book/Page: 2017/4156 City: Fayetteville County: Washington State: AR Pa rcel(s): 765-13391-000 S -T -R: 03-16-30 Lot/Block: N/A Subdivision: N/A Legal: A part of the Fractional N W 1/4 of 3-16-30 in Washington County. SALE INFORMATION Sale Date: February 07, 2017 Financing: Cash to Sellers Sale Price: $43,500 Conditions of Sale: Arm's Length Adjusted Sale Price: $43,500 Exposure Time: 99 Days Grantor: Marshall Aaron Mahan and Yolanda Rights Conveyed: Fee Simple Mahan Grantee: Dixie Landing LLC _ Verification: MLS: Washington County Circuit Clerk PROPERTY INFORMATION Gross Land Size: 0.5001 Acres, or 21,780± SF Indicators Total Frontage: E. Township St.; N. Freshwater Sale Price/Gross Acre: $87,000± Ave. Zoning: NC, Neighborhood Conservation Sale Price/Gross SF: $2.00± Topography: Moderately Sloping; Part Wooded Adjusted Sale Price/Gross Acre: $87,000± Utilities: Typical City Adjusted Sale Price/Gross SF: $2.00± Highest & Best Use: Residential Remarks: This property represents a .5f acre lot located at the southeast corner of E. Township St. and N. Freshwater Ave. in Fayetteville. The lot is located in the Hillside/Hilltop Overlay District. 58 f COMPARABLE LAND SALES MAP SeS � ..`: totlnslgk w E Jque B3 ,d oa "a ze l5• iW 355 � q � _ — •.' 4 Harold Si Old Wrre es Lang Pvk537 .. sm °} W liCfike. nt 1 596 +a' -' serc x x — i z ]4e. Ian—, S* 3 46+ a VSF. $�G�F?lnre St * '3rF_tiiUrY. Pt9r1' •I �gtt'I"• .m Ashnll • '3 ,SY hlau FrOpmty x aVV ' •�` 4), W floltll Si Nus a.. .. 71 :412 m i 'E.RsJekWelFd c� _ w tvlapfe l °. Ivisple gt z [end sf I x l W c+Itk5cm csi j . ;• �.:ir1: �X :1•sa a e rt : too ,*Ynh :F Wyrn8rn ' C,radrrr. P.ui �fir+txers 484. 45. = iiNi .tit C.. j' Grove liclnt,vrlle rt` Rd 4& .y rt„:rjw YfdkOt •- - W 1>iM1 ii Pu1k 2d5: f.N4 59 a.rJfn,i S% An,l ,IBeranra+ F Fl rlls+lilu pIf 4za ss %nrrmer Rd II Gir=l SUMMARY OF COMPARABLE LAND SALES ANALYSIS OF COMPARABLE SALES The unit of comparison is price per SF of land area. The elements of comparison are property rights, financing, conditions of sale, market conditions, location/appeal, and physical characteristics. Property Rights: Each of sales appears to have involved the transfer of the fee simple interest: No property rights adjustments can be supported. Financing: Each of the sales appears to be representative of market terms/cash to seller. No adjustments for financing are indicated. Conditions of Sale: Each of the sales appears to have been an arm's length transaction. No adjustments for conditions of sale are indicated. Market Conditions: The sales occurred between March 2016 and February 2017. Each of these sales is considered to have occurred within a time period when market conditions were reasonably similar to those as of the effective date of this appraisal. No adjustments for market conditions can be supported. Location/Appeal: The subject property is located along the west side of North Crossover Road, Fayetteville, Arkansas; Washington County. The physical address is 833 North Crossover Road. The location is in the east part of Fayetteville. Land Comparable One is located along the east side of North Crossover Road in Fayetteville. Land Comparable One is located in very close proximity to the subject along North Crossover Road. Land Comparable Two is located along the west side of East Oaks Manor Drive, south of East Rolling Hills Drive in Fayetteville. Land Comparable Three is located at the southeast corner of East Township Street and North Freshwater Avenue in Fayetteville. Paired Sales Analysis matching Land Sale One with Land Sales Two and Three reflects that in comparison to the subject, after adjusting for other differences, a downward adjustment of 40±% is applicable to Land Sale Two and a downward adjustment of 30f% is applicable to Land Sale Three for 60 03/21/2016 : 02/07/2017 Date of Sale 11/17/2016 Consideration $35,000 $42,894 $43,500 Land Size (Acre )± .63 .34 .5 Price/Acre $55,556 $126,159 $87,000 Price/SF $1.28 $2.90 $2.00 W. side of N. W. side of E. SEC of E. Crossover Road, Oaks Manor Dr., Township St. & Location Fayetteville Fayetteville N. Freshwater Ave., Fayetteville ANALYSIS OF COMPARABLE SALES The unit of comparison is price per SF of land area. The elements of comparison are property rights, financing, conditions of sale, market conditions, location/appeal, and physical characteristics. Property Rights: Each of sales appears to have involved the transfer of the fee simple interest: No property rights adjustments can be supported. Financing: Each of the sales appears to be representative of market terms/cash to seller. No adjustments for financing are indicated. Conditions of Sale: Each of the sales appears to have been an arm's length transaction. No adjustments for conditions of sale are indicated. Market Conditions: The sales occurred between March 2016 and February 2017. Each of these sales is considered to have occurred within a time period when market conditions were reasonably similar to those as of the effective date of this appraisal. No adjustments for market conditions can be supported. Location/Appeal: The subject property is located along the west side of North Crossover Road, Fayetteville, Arkansas; Washington County. The physical address is 833 North Crossover Road. The location is in the east part of Fayetteville. Land Comparable One is located along the east side of North Crossover Road in Fayetteville. Land Comparable One is located in very close proximity to the subject along North Crossover Road. Land Comparable Two is located along the west side of East Oaks Manor Drive, south of East Rolling Hills Drive in Fayetteville. Land Comparable Three is located at the southeast corner of East Township Street and North Freshwater Avenue in Fayetteville. Paired Sales Analysis matching Land Sale One with Land Sales Two and Three reflects that in comparison to the subject, after adjusting for other differences, a downward adjustment of 40±% is applicable to Land Sale Two and a downward adjustment of 30f% is applicable to Land Sale Three for 60 superior location/appeal in comparison to the subject. Land Sale One is considered similar to the subject in the location/appeal category and no adjustment is indicated. Physical Characteristics: With respect to physical characteristics, the necessary categories of adjustment are for land size and topography. The sales are each reasonably similar to subject with respect to utility availability, shape, Flood Zone, etc. Land Size: The subject (.92f acre) is larger than each of the Land Comparables. Land Comparable One is .63f acre in land size; Land Comparable Two is .34f acre; and, Land Comparable Three is .5f acre. The tendency in the market is that as a property's land size increases, its price per unit decreases, and vice versa; this is for otherwise similar properties. Sales Analysis supports that as a property's land area approximates doubling, its price/unit decreases about 10°/x. Based on this premise, the following downward adjustments are indicated: 5f% to Sale One, 14f% to Sale Two and 8f% to Sale Three. Topography: The topography of the subject site is gently to moderately sloping. The topography of Land Sale One is also gently to moderately sloping. Land Sale Two has gently sloping topography. Land Sale Three has moderately sloping topography and some wooded areas. Sale Two includes topography that is considered superior to that of the subject. Based on Sales Analysis, Sale Two is adjusted downward 5f% for superior topography. No adjustments can be supported to either of Land Sales One or Three. Conclusions: The following adjustment grid is indicated: Sale 1 2 3 Sales Price/SF $1.28 $2.90 $2.00 Property Rights $0.00 $0.00 $0.00 Financing $0.00 $0.00 $0.00 Conditions Of Sale $0.00 $0.00 $0.00 Market Conditions $0.00 $0.00 $0.00 Adjusted Priec/Acre $1.28 $2.90 52.00 Location/Appeal $0.00 ( 1. I fil Land Size 0)0,06) M. 11i Topography $0.00 " ? $0.00 Indicated Value/SF 51.22 51,18 S1,24 The range of the adjusted comparables is $1.18/SF to $1.24/SF. The mean of the adjusted comparables is $1.21, while the median is $1.22. Land Comparable One is similar to the subject in location/appeal. 61 Based on the preceding analysis, it is my opinion the indicated per SF value for subject site "as vacant" is $1.22/SF. Therefore: 40,245 SF @ $1.22 = $49,099 Rounded to $50,000 The preceding represents the indicated market value of the fee simple interest in the subject site "as vacant" by the Sales Comparison Approach. Please see the Extraordinary Assumptions previously presented in this report. 62 COST APPROACH In the Cost Approach, an estimated reproduction or replacement cost of the building and land improvements as of the date of the appraisal is developed, together with the losses in value that have taken place due to wear and tear, design and plan, or neighborhood influences. To the depreciated building cost estimate is added the estimated value of the land. The total represents the indicated value by the Cost Approach. The following terms utilized in the Cost Approach require defining: "Reproduction Cost is the estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. " " " "Replacement Cost is the estimated cost to construct, at current prices as of the effective appraisal date, a building with utility equivalent to the building being appraised, using modern materials and current standards, design, and layout. "t3 Entrepreneurial Incentive is the amount an entrepreneur expects to receive for• his or her contribution to a pr•ojecl. Entrepreneurial incentive may be distinguished front entrepreneurial profit (often called developer's profit) in that it is the expectation offuture profit as opposed to the pr•ofil actually earned on a development or improvement. The amount of entrepreneurial incenlive requiredfor a project represents the economic reward sufficient to motivate an enirepreneru to accept the risk of the project and to invest the time and money necessaty in seeing the project through to completion. " "Accrued Depreciation is the difference between the cost of an -improvement on the effective dale of the appraisal and the market value of the improvement on the same date. "15 "Effective Age is the age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be differ•eni from its chronological age. "i6 "Economic Life is the period over which improvements to real estate contribute to property value ".17 - "Economic Age -Life Method is a method of estimating depreciation in which the ralio between the effective age of a building and its total economic life is applied to the current cost of the improvements to obtain a lump -sum deduction. `8 The Cost Approach is not utilized in this report as this valuation method is not typically the basis upon which buy/sell decisions are being made in this market on properties of the subjects' nature. Application of the Cost Approach to Value is not considered necessary to produce credible appraisal results for the subject property. 12 Appraisal Institute, The Dictionan-(d Real1,yvierttrlrrrrrsul—Sirth Edition, (Chicago: Appraisallnstitrde, 2015), P. 198. 13 Appraisal Institute, 77re I)rctifonan,of Real Lstrne,41pprenstrl — Sixth Edition, (Chicago: Appraisal Institute, 2015), P. 197. "Appraisal Institute, 77re• Dichonary o(idea! Fstt+re Atrpr°airr+l —Sixth Edition, (Chicago: Appraisal Institute, 20/5), P. 76. 15 Appraisal lnstilule, 77re I)icuorKin, a Real I..slate A,pprensal — Sixth Edition, (Chicago: Appraisal Institute, 2015), P. 63, 1 Appraisal Institute, 77re bictionan,ol"Real E'srare flnn+aisal— Sixth Edition, (Chicago: Appraisal lnstinrte, 2015), P. 74. 17 Appraisal Institute, 77te Vicnonftqp njReal finarB dlrpratw — Sixth Edition, (Chicago: Appraisal Institute, 2015), P. 72. 18 Appraisal Institute, 7ht>_I]Jrtion�o l o(Real1srnle j) naisnl— Sixth Edition, (Chicago: Appraisal lnstihue, 1015), A 71. 63 SALES COMPARISON APPROACH In the Sales Comparison Approach, the subject property is compared to similar properties that have been sold recently or for which listing prices or offering figures are known. Data for generally comparable sale properties are used, and comparisons are made to demonstrate a probable price at which the subject property would sell if offered on the market. "To apply the Sales Comparison Approach, appraisers follows a systematic procedure: Research the competitive market for information on properties that are similar to the subject property and that have recently sold, are listed for sale, or are tinder contract. Information on agreements of sale, options, listings, and bona fide offers may also be collected. The characteristics of the properties such as property type, date of sale, size, physical condition, location, and land use constraints should be considered. The goal is to find a set of comparable sales or other evidence such as properly listings or contracts as similar as possible to the subject property to ensure they reflect the actions of similar buyers. Market analysis and highest and best use analysis set the stage for the selection of appropriate comparable sales. 2. Verb the information by confirming that the4 data obtained is factually accurate and that the transactions reflect arm's-length market considerations. Verification should elicit additional information about the properly such as buyer motivation, economic characteristics (if the properly is income-producing), value component allocations, and other significant factors as well as information about the market to ensure that comparisons are credible. 3. _Select the most relevant units of comparison used by participants in the market (e.g., price per -acre, price per square fool, price per front foot, price per dwelling unit) and develop a comparative analysis for each unit. The appraiser's goad is to define and identify a unit of comparison that explains market behavior. 4. Look for differences between the comparable sale properties and the subject property using all appropriate elements of comparison. Then adjust the price of each sale property, refecting how it differs, to equate it to the subject properly or eliminate that properly cis a comparable. This step typically involves using the_ntosl similar sale properties and then adjusting for any remaining differences. If a transaction does not reflect the actions of a buyer who would also be altracled to the subject property, the appraiser should be concerned about comparability. 5. Reconcile the various value indications produced front the analysis of comparables into a value conclusion. A value opinion can be expressed as a single point estimate, as a range of values, or in terms ofa relationship (e.g, more or less than a given amount). "" The Sales Comparison Approach utilizes the following comparable sales in estimating the market value of the subject property: 19 Appraisal Institute, PieAl&mtisal oflteal Estate — Fowneenih Edition, (Chicago: Appraisal Institute, 2013), P. 381-382. 64 Comparable Improved Sale One 65 Address: 3186 Katherine Avenue Location: Fayetteville, Arkansas Date of Sale: 08/16/2016 Sales Price: $152,500 Living Area (SF±): 1,812 per Assessment Records Sales Price/SF: $84.16 - 84.16_Bedrooms/Bathrooms: Bed rooms/Bath rooms: 3/2 full Building Quality/Design: One -level; average quality Age/Condition: Built 1984; average condition; brick veneer and cedar exterior Garage/Carport: 2 -car attached garage — 500+ SF Heat/Air: Central Land Size: 0.30+ Acre Grantor/Grantee: Jason Hudlow and Cindy K. Hudlow Verification: MLS; Warranty Deed 2016/23890; Holly Daniels (Realtor) Exposure Time: 63+ Days Legal Description: Lot 18, Block 9, Huntingdon S/D, Fayetteville, Washington County, Arkansas Remarks: Dwelling includes porch/patios areas, wood deck; laundry room, porch, kitchen appliances, fireplace, etc.; property includes landscaping; list price was $152,500. Huntington S/D includes a community swimming pool. 65 Comparable Improved Sale Two Address: 1535 East Harold Street Location: _Fayetteville, Arkansas Date of Sale: 02/24/2017 Sales Price: $186,000 Living Area (SF±): 1,704 per Assessment Records Sales Price/SF: $109.15 Bedrooms/Bathrooms: 3/2 full Building Quality/Design: One -level; average quality Age/Condition: Built 1979; average condition; brick veneer exterior Garage/Carport: 2 -car attached garage — 550f SF Heat/Air: Central Land Size: 0.5f Acre Grantor/Grantee: B: Imogene Sivage, a single surviving spouse of Robert E. Sivage/Steven Anthony Shelton and Alex P. Shelton Verification: MLS; Warranty Deed 2017/6035; Steven Brooks (Realtor) Exposure Time: 51f Days Legal Description: Lot Numbered Two (20 in Block Numbered Two (2) in the Final revised Plat of Lot Eleven (11) Block One (1), Lot One (1), Block Five (5), Lot Three (3), Block Seven (7) and part of Block Two (2), Stubblefield Addition to the City of Fayetteville Remarks: Dwelling includes a covered porch, porch, two living areas, kitchen appliances, fireplace, etc.; property includes landscaping; list price was $179,750. There were multiple offers on the property. 66 Comparable Improved Sale Three Address: 3253 North Makeig Ct. Location: Fayetteville, Arkansas Date of Sale: 08/01/2016 Sales Price: $186,000 Living Area (SF±): 1,907 per Assessment Records Sales Price/SF: $97.54 Bedrooms/Bathrooms: 3/2 full Building Quality/Design: One level; average quality; brick veneer exterior Age/Condition: Built 1985; average condition Garage/Carport: 2 -car attached garage — 506± SF Heat/Air: Central Land Size: 0.28± Acre Grantor/Grantee: Rose Haptonstall/Lloyd Du Preez and Sarah Du Preez Verification: MLS; Warranty Deed 2016/22346; Rhonda Balmer (Realtor) Exposure Time: 49± Days Legal Description: Lot 5 in Block 3 in Huntingdon Subdivision, Fayetteville, Washington County, Arkansas Remarks: Dwelling includes a screened -in porch, kitchen appliances, fireplace, etc.; property includes landscaping; list price was $186,000. Huntingdon S/D includes a community pool. Mo COMPARABLE IMPROVED SALES MAP W MaV#4FO � in y. - •t n ,�su+me:rn.J ` Uaerc- 21 MOegt CA e - 7•A w [am,ckcr s:j ' ' !t ffnck Qed lrro W 112 Vv OCR.an Sl _ 11A1S nnrl, - 14U. � 336 + 'faYQNw}1 o - Zimm.. Rd aas. 4641 wY1tK+IGhy 'S>.*rwr a g.. �F�sir nRlrc Pers �`�t'KeYab Cq. l.Hrd n. Part F f"1111141 lr Rs1 A 1!'�'/b . Rd 1'PS � i11{ y' Y!'e YY iiti'le: Feil i } EAq, 'ag7ufvA,2 to, DrAd- 68 ,{ .• �:,� ':reek. Ito _ me i•i"f ..v . ilii' ' r�tn "a+sea anrr L .. 3"r ioo :'ip Le11(Il fk""k+rmo p'." Rp 21 hl E :Iw+Hd x at Grrf To"y It �nnnr _ 52W. j WA IaFev1 aam. c 6a5 rrl vi 1p r5 �' E ,1{,yre C4+'u E 'xdaY'R4 6M • W rfpnwnr l }? ...: lmp-&-d 54e 2 x Impnxrrd5ele 3 x.. 7 Awl `� y y Y'2•F..r r �, ,, J _ �� �k'� Lfl SK ��WYrtYU �U > f I+rxo Feel. - ttK w. greke Si ,? Irnf✓o.M SnS^ i it 4fp Prod ,'-9561 ,2y 111- .143 q iPMiTlr(9 # d El.n rn A :a.ery Fx.e tib. W MaV#4FO � in y. - •t n ,�su+me:rn.J ` Uaerc- 21 MOegt CA e - 7•A w [am,ckcr s:j ' ' !t ffnck Qed lrro W 112 Vv OCR.an Sl _ 11A1S nnrl, - 14U. � 336 + 'faYQNw}1 o - Zimm.. Rd aas. 4641 wY1tK+IGhy 'S>.*rwr a g.. �F�sir nRlrc Pers �`�t'KeYab Cq. l.Hrd n. Part F f"1111141 lr Rs1 A 1!'�'/b . Rd 1'PS � i11{ y' Y!'e YY iiti'le: Feil i } EAq, 'ag7ufvA,2 to, DrAd- 68 SUMMARY OF COMPARABLES The comparables are summarized in the following table: Comparable No. 1 2 3 Address/Location 3186 Katherine Ave., Fayetteville 1535 E. Harold Street, Fayetteville 3253 N. Makeig Ct., Fayetteville Date of Sale 08/16/2016 02/24/2017 08/01/2016 Sale Price $152,500 $186,000 $186,000 Living Area SF± 1,812 1,704 1,907 Price/SF $84.16 $109.15 $97.54 Year Built 1984 1979 1985 Land Size± 0.30 Acre 50 Acre 0.28Acre ANALYSIS OF SALES The unit of comparison is whole property. The elements of comparison are property rights, financing, conditions of sale, market conditions, location, and physical characteristics. Property Rights: No adjustments are indicated. Each of the sales involved the transfer of the fee simple interest. Financing: Each of the sales involved conventional financing at market terms. No adjustments for financing are indicated. Conditions of Sale:- Each of the sales appears to have been an arm's-length transaction. No adjustments for conditions of sale can be supported. Market Conditions: The sales occurred within the August 2016 to February 2017 time period. Market conditions during this time period were considered reasonably similar to those as of the effective date of this report. No adjustments are indicated. Location: The subject property is located at 833 North Crossover Road in Fayetteville. Sale One is located at 3186 Katherine Avenue in Fayetteville. Sale Two is located at 1535 East Harold Street in Fayetteville. Sale Three is located at 3253 North Makeig Court in Fayetteville. Each of the Sales is located on the east side of Fayetteville in reasonably close proximity to the subject. Each of the sales is considered to be reasonably similar to subject in location. Location adjustments are believed to be adequately represented in the site value differences. Physical Characteristics: The categories of adjustment considered under physical characteristics are site, dwelling size, dwelling age/condition, dwelling quality/appeal, garage storage, and "other". 69 } First, site is considered. The value of the subject site (0.92± acre or 40,245± SF) has previously been estimated in the Land Value Section at $50,000. The estimated land values of the comparables are $51,000, $57,000, and $51,000, respectively. The indicated adjustments are downward $1,000 to Sale One; downward $7,000 to Sale Two and downward $1,000 to Sale Three. It should be noted that each of Sales One and Three is located in a neighborhood with a community swimming pool. Next, dwelling living area size is considered. Subject is slightly larger in living area than each of the comparables. Subject contains approximately 1961± SF of dwelling living area. Sales and Cost Analysis supports a size multiplier of $25.00 per SF. Therefore, in comparison to subject, Sale One requires an upward adjustment of $3,725 (149± SF @ $25), Sale Two an upward adjustment of $6,425 (257± SF @ $25) while Sale Three requires an upward adjustment of $1,350 (541 SF @ $25). Next, dwelling age/condition is considered. Subject dwelling was originally constructed in the 1985± timeframe. The condition is considered to be average; however, somewhat dated. Some deterioration of the exterior siding was noted. The effective age is estimated to be 32± years. Subject dwelling includes some updates. Sale Dwelling One was constructed in 1984±. The condition at the date of sale was average (dated). - The effective age of the dwelling was estimated to be 33± years. Sale Dwelling Two was constructed in 1979±. The condition at the date of sale was average (dated). The effective age of the dwelling was estimated to be 35± years. Sale Dwelling Three was constructed in 1985±. The condition at the date of sale was average (dated). Each of the sales is considered to be reasonably similar to the subject in age/condition and no adjustments are indicated. Next, dwelling quality/appeal is considered. Subject dwelling represents average quality construction. Subject dwelling is centrally heated and cooled, and includes three bedrooms and two full bathrooms. The exterior is a combination of rock veneer and frame siding. Subject also includes kitchen appliances and a fireplace. The Sale One dwelling is of somewhat similar construction quality/appeal compared to the subject. The exterior is a combination of brick veneer and cedar siding This dwelling has three bedrooms and two full bathrooms. The dwelling is centrally heated and cooled, and includes a fireplace and kitchen appliances. Sale Dwelling Two is considered somewhat superior to the subject in construction quality/appeal. The exterior is brick veneer. This dwelling has three bedrooms and two bathrooms. The dwelling includes two living areas. The dwelling is centrally heated and cooled, and includes a fireplace and kitchen appliances. Sale Dwelling Three is considered somewhat superior to the subject in construction quality/appeal. The exterior is brick veneer. This dwelling has three bedrooms and two bathrooms. The dwelling includes a sunroom. The dwelling is centrally heated and cooled, and includes a fireplace and kitchen appliances. Paired Sales Analysis reflects that Comparables Two and Three are each approximately 15±% superior to the subject in the dwelling quality/appeal category. Next, garage storage is considered. Subject includes a 786± SF finished attached oversized garage. Sale One includes a 500± SF, 2 -car, finished attached garage. Sale Two includes a 550± SF, 2 -car, finished attached garage. Sale Three includes a 506± SF, 2 -car, finished attached garage. Based on Cost and Sales Analysis, the following adjustments are indicated: +$5,720 to Sale One, +$4,720 to Sale Two and +$5,600 to Sale Three. 70 Lastly, the "other" category is considered. This primarily pertains site improvements. Each of Sales One, Two and Three is considered similar to the subject property in the "other" category and no adjustments are indicated. Conclusion: The following adjustment grid is indicated: Sale No. Sales Price 1 $152,500 2 186,000 31 $186,000 Property Rights 0 0 0 Financing 0 0 0 Conditions Of Sale 0 0 0 Market Conditions 0 0 0 After Market Conditions $152,500 $186,000 $186,000 Location 0 0 0 Physical Characteristics Site -1,000- -7,000 -1,000 Dwelling Size +3,725 +6,425 +1,350 Dwelling Age/Condition 0 0 0 Dwelling Quality/Appeal 0 -27,900 -27,900 Garage +5,720 +4,720 +5,600 "Other" 0 0 0 Indicated Value Of Subject $160,945 $162,245 $164,050 -- The range of the adjusted comparables is $160,945 to $164,050. The mean of the sales is $162,413±, while the median is $162,245. Each of the sales is given consideration. Sale Two is the most recent sale having occurred in 2017. In my opinion, the indicated market value of the subject property by the Sales Comparison Approach is: $162,000 The preceding represents the estimated market value of the fee simple estate of subject by the Sales Comparison Approach. 71 INCOME CAPITALIZATION APPROACH In the Income Capitalization Approach, the current rental income is shown with deductions for vacancy and credit loss and operating expenses. A conclusion about the prospective Net Operating Income of the property is developed. In support of this Net Operating Income estimate, operating statements for the previous years may be reviewed, together with available operating -cost estimates. An applicable capitalization method and appropriate Capitalization Rate are developed for use in computations that lead to an indication of value by the Income Capitalization Approach. The following definitions are necessary before applying the Income Capitalization Approach to the subject property: "Potential Gross Income (PGI) is the total income attributable to properly at full occupancy before vacancy and operating expenses are deducted. X20 "Effective Gross Income (EGI) is the anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income, "21 "Net Operating Income (NOI) is the actual or anticipated net income that remains after all operating expenses are deducled from effeclive gross income but before mortgage debt service and book depreciation are deducted Note: This definition mirrors the convention used in corporate finance and business valuation for EBITDA (earnings before interest, taxes, depreciation, and amorti-ation). ',22 "Overall Capitalization Rate (Ro) is the relationship between a single year's net operaling income expectancy and the total property price or value (Ro = InNo). X23 "Direct Capitalization is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, either by dividing the net income estimate by an appropriate capitali_ation rate or by multiplying the income estimate by an appropriate factor. Direct capitalcation employs capitali=alion rates and multipliers extracted or developed , from market data, Only one year's income is used Yield and value changes are implied, but not explicitly identified. 11 21 The Income Capitalization Approach is not utilized to estimate the market value of the subject property. Dwelling rentals are not typically the basis on which properties of the subject nature are purchased and sold in the Market Area. 20 Appraisal Institute, The t ]iclionmy oL Rval Estate Apdrr'trisaf — Sixth Edition, (Chicago: Appraisal Institute, 2015), P. 173, 21 Appraisal Institute, The DicuonarT ofltetrll:siate Anniyisol — Sixth Edition, (Chicago: Appraisal Institute, 2015), P. 74 22 Appraisal lnstilute, The Amman, , of Real Estate Apprntsa! — Sixth Edition, (Chicago: Appraisal Institute, 2015), P. 154 23. Appraisal Institute, The 1]rctiouaty of Real Estate Appraisal— Sixth Edition, (Chicago: Appraisal Institute, 2015), A 165 24 Appraisal /ns[itule, 77u: Ulctionarso.af Beat EsiateAraurrsiso[—Sixth Edition, (Chicago: Appraisal Institue, 2015), P. 65 72 RECONCILIATION Reconciliation is the part of the valuation process in which the appraiser attempts to resolve differences among the value indications derived from the application of the approaches. The conclusion drawn in the reconciliation is based on the appropriateness, the accuracy, and the quantity of the evidence in the entire appraisal. The following values for the subject property were indicated: Cost Approach = Not Utilized Sales Comparison Approach = $162,000 Income Capitalization Approach = Not Utilized Cost Approach The Cost Approach is based, in part, upon the principle of substitution. This principle is basic to the Cost Approach and holds that no prudent investor would pay more for an existing property than the cost to acquire the site and construct improvements of equal desirability and utility without undue delay. Other appraisal principles that relate to the Cost Approach are: Supply and demand; balance; externalities; and, highest and best use. The Cost Approach was not applied as a result of this valuation method not typically being the basis on which properties of the subject's nature are purchased/sold in the Market Area. Application of the Cost Approach to Value was not considered necessary to produce credible appraisal results for the subject property. Sales Comparison Approach Certain principles are also basic to the Sales Comparison Approach: Substitution; supply and demand; balance; and, externalities. Again, the principle of substitution is very important. This principle states that the value of a specific property generally is set by the price necessary to acquire a substitute property of equivalent utility. In the Sales Comparison Approach, comparable improved sales were presented and analyzed in comparison to the subject property. The unit of comparison was whole property. Adjustments were made to the sales for differences with respect to subject; the adjustments are believed market supported. The value of subject was estimated from within the adjusted range of the comparables. The strength of the Sales Comparison Approach is the availability of recent and reliable comparable improved sales. A weakness of the Sales Comparison Approach is that each of the comparable sales required adjustments in the comparison process with subject. Overall, the reliability of the Sales Comparison Approach is considered to be good in estimating the market 73 value of the improved subject property. The Sales Comparison Approach was also utilized in the valuation of the subject site "as vacant." Sufficient land sales data was available. Income Capitalization Approach The application of the Income Capitalization Approach is based on the operation of value influences and appraisal principles. The appraisal principles considered are: Anticipation and change; supply and demand; substitution; balance; and, externalities. Anticipation and change are very important. The principle of anticipation states that value is created by the expectation of benefits to be derived in the future. Income Capitalization methods attempt to forecast future benefits and estimate their present value. The Income Capitalization Approach also focuses on how change affects the value of income-producing properties. The Income Capitalization Approach was not applied in this valuation assignment. Dwelling rentals are not typically the basis for buy/sell decisions on properties of the subject nature in this Market Area. Application of the Income Capitalization Approach was not considered necessary to provide credible appraisal results for the subject property. Final Value In the final value analysis the Sales Comparison Approach was relied upon. In my opinion, the market value of the fee simple interest in the subject property, as of June 23, 2017, was as follows: ONE HUNDRED AND SIXTY-TWO THOUSAND DOLLARS ($162,000) The preceding value estimate reflects terms equivalent to cash to the owner and represents that for real property only. No personal property has been included in this report. The market value estimate is based upon the following Extraordinary Assumptions: 1. Subject and adjacent properties are in compliance with all applicable EPA regulations; 2. Subject electrical, plumbing and HVAC systems are -adequate and in working order; 3. Subject will be utilized in compliance with current zoning regulations; the property is currently subject to a conditional use; however, the property is proposed to be marketed. If any, or all, of these Extraordinary Assumptions prove to be untrue, the preceding value estimate could be influenced. Additional Assumptions and Limiting Conditions appear in the Introduction Section of this report. The estimated exposure time for the subject property is one year, or less. This was determined from an analysis of market conditions and comparable sales. 74 EXPOSURE TIME Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold at the market value concluded in this analysis as of the date of this valuation. The exposure times of Comparable Improved Sales One, Two, and Three utilized in the Sales Comparison Approach were indicated to be 63f days, 51f days, and 49f days, respectively. Based on MLS data, the average exposure time for single-family dwelling sales in Washington County for the twelve months preceding the effective date of this report was indicated to be 98f days, while the median was indicated to be 70f days; this is based on 3,470 transactions. As stated previously in this report, the Market Area is considered to be well located near major thoroughfares and in close proximity to major area employers, schools, churches, shopping, etc. Some redevelopment is occurring in the area. Overall real estate market conditions in Northwest Arkansas have previously been discussed in this report. The single-family residential sector is considered strong at the present time with good activity levels and significant new construction. The outlook for the residential sector through the remainder of 2017 is considered good. The near term outlook for the Northwest Arkansas real estate market is considered positive. In my opinion, a one-year or less exposure time is applicable for subject. 75 PART IV -ADDENDA 76 , � • UI:.GL KNOW ALL MEN BY THESE PRESENT: F", L E D '77 JUL--? PM 2. 31 That University Baptist Church, for and in considerate rof••the; su of One Dollar ($1.00) and other good and valuable consideratio�1'`•�,o• at.j� ' fi,ir,�..ti�, _1�K hnnd�pnid by city of lnyelloville, Arknnsas, a municipal corpor'aLion, does hereby grant, bargain and sell unto the said City of Fayetteville, Arkansas, and unto its successors and assigns, the following described lands, situate in Washington County, Arkansas, to -WA.", nir�K,t; • raocvrie�nav Lot Numbered Seven (7) in Block Numbered Three (3) of Eastwood Subdivision to tl:e City of Fayetteville, Arkansas, as perlat , Of said Subdivision on file in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas. TO HAVE AND TO HOLD The said Lands and appurtenances thereunto belong- ing unto the said City of Fayetteville, Arkansas, and unto its successors pr,_ and assigns forever. And the said University Baptist Church does hereby ! covenant that it is lawfully seized of said land and -premises; that same is unencumbered, and it will forever warrant and defend..title to said lands against all claims whatever.. j• Witness the hand and seal of the University Baptist Church this day of , 1977. UNIVERSITY BAPTIST CHURCH BY ATTEST: ary 2Re;;gar,eai n of Deacons '�s�­­DJames- Hunt,Ahairmanof ons ACKNOWLEDGMENT STATE Or ARKANSAS ) •) ss. COUNTY OF WASHINGTON) - BE IT REMEMBERED, That on this day came before the undersigned, a Notary Public, within and for the County aforesaid, duly commissioned and acting,.Gary Renegar, Chairman of Deacons and James Hunt, Assistant Chair- man of Deacons, of University Baptist Church, to me well known as the per- sons executing the foregoing Deed, and stated that they had executed same .for the consideration and purposes therein mentioned and s t Orth. Witness my hand and seal as such Notary Public -this -day of 1977. .•,.rwR f i ��•- Parcel: 765-05033-000 Washington County Report ID: 39432 Prev. Parcel: 138693-000-00 As of: 6128/2017 Property Owner Property Information Name: CITY OF FAYETTEVILLE Physical Address: 833 N CROSSOVER RD Fayetteville Mailing Address: 113 W MOUNTAIN ST Subdivision: EASTWOOD S/D FAYETTEVILLE, AR 72701-6083 Block / Lot: 003 1007 Type: (EG) Ex. Government S -T -R: 11-16-30 Tax Dist: (0 11) FAYETTEVILLE SCH, FAY Size (Acres): 0.000 Millage Rate: 57.45 Extended Legal: PT LOT 7 BLOCK 3 FIRE STATION Market and Assessed Values Taxes Estimated Full Assessed Taxable Estimated $0 Market Value (20% Mkt Value) Value Taxes: Land: Homestead $0 mote: Wm Wax aniounks are esLates only. Con!aacl [he. countyiparish tax ce9lecu for r-xae! a�oui'ts Building: 0 Credit: Total: Deed Transfers Date Book Page Deed Type Stamps Est. Sale 1/1/1985 934 893 N/A 0.00 $0 Reappraisal Value History Grantee Code Type CITY OF FAYETTEVILLE, N/A N/A ARKANSAS Tax Year Total Value Total Assessed 2015 2016 Not a Legal Qocurnent. Subject to terms and conditions. www. actU ata Sco ut. corn Page 1 Parcel: 765-05033-000 Washington County Repoli ID: 39432 Prev, Parcel', 138693-000-00 As of: 6128/2017 Map Not a Legal Document. Subject to terms and conditions. www, a ctD ata S co ut, co m Page 2 LU i a mopi. �LL � Qp tlD G a «g W W :Rf,j C.4 N N m m« u WLL 2E H g 7�E 7� E`uvB CD r Wcm V A a `Fz . r J Z O O r r W H rA O rte► LL ZZZJJJ o� r pdp E n-9 z N y jv L N Nis 9 W Q CO C% Q 10. A� -E� Q a ? Z U B Fr�yj G. 0J Q Z W 2 8 W �°o�y a LL z 3 '6:? E� �cn,, —T V_- 1=28 E r R a�E C7 r O Y 0103 { E ` lM1 10 y 3 `o A. [+i StSnl4,UJV N ¢ 7AIVO �NO� 9" j J113J01k33 N3AOSSoto N z aQOAAd3F1wv N ly - w a AFSl3 WWns N W + a WHALNOA N LL 0 � U J E SItADOW'RiDaE 9AWCJ r � �� � w d z n. q U vs o �r dM31A N- �� �%Cj C to �CIIN A4 l�Vifl O �NVZNVI N W Aiyr 4' 4i4Y Y,y 4 H N 01:15wRd N� c{s O dUIl93lddv LU Ci3NVl d 93 lONVI N p x j' tu3AIkI(] [JOOMLSV3 N — Q® Z 7 o Q w N w 3AiaO ISS W N �a W 3AIaU -qArua swvrlllnn, NOW z w 7AIaU 3NIlA7gS © z 3AWO ►awAQdin s 3AtttO N N z ut HONVN N rn F v LU W u� ui N w File Number: 1-00000265 Seq: I FILED RID y DRIVE .4 .--.•5 G, Iflo" MANOR DRI vE p to zv, o. Ala ,oW31 of PwPoRrr 1x c�m w <'"C� f 16no, 1"" LEGAL 1CjCffl07A7V 4'.10 zavhvia c"ssnanw -M bw paN6Y l Af,—oo AClrl�^ IN avANKUM, cFff(wrR AITNTCATES-: 4AV APPROVALS' VOG"frIv. WrM mlk t —?�*AZ IIIC A CER7VrA7E OF a DEOc~ &HT?w o-*' *" "" — 11 moftwfWls ol -CW "*A-A)rF M FINAL PLAT EAST*J" 5VbV1WS1OV rO THe cyrroF FAkrrrEWLLC,ANWANSA E CMIVAWr W A44RAV A AAX .5. 965 DON L HEMP SURVEYING COMPANY rAyrrrcmtE; AwAevsAs File Number: 1-00000265 Seq: I ' 164' Ido 7 SELLER/BORROWER'S AFFIDAVIT STATE OF ARKANSAS,COUNTY OF: WASHINGTON The undersigned, referred to as Seller/Borrower(whether one or more)being first duly sworn on oath that the Seller/Borrower is the owner of the following described lands,situated in Washington County,Arkansas,to-wit: Lot Numbered Seven(7) in Block Numbered Three(3)of Eastwood Subdivision to the City of Fayetteville,Arkansas, as per plat of said subdivision on file in the office of the Circuit Clerk and Ex-Officio Recorder of Washington County, Arkansas. Less and except that portion laying within the right of way of line of Arkansas State Highway 265. Seller/Borrower further states the following facts are true: 1. There is no adverse occupant of the property described above. 2. Seller/Borrower and those, under whom Seller/Borrower claims title,have been in peaceful possession of said lands for more than 7 years past. 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 on the property described above during the past 130 days for which a Mechanic's and Materialmens' Lien may be filed. 5. No appliances have been installed in the property described above on deferred payments,which are unpaid for. The property described above is not traversed by any roadways or easements,except those shown on record. 'Z. There are no delinquent assessments due on the resident's association on the property described above,if applicable. 8. That no money whatsoever is owed on subject property to any person, firm or corporation other than the following: \ NONE 9�_There are no outstanding judgments against Seller/Borrower as a result of legal action to include, but not limited to, Tax Liens,Divorce,Bankruptcy or Foreclosure. 10. There are no pending liti gations against Seller/Borrower which may result in a judgment. 11. That the marital status of Seller/Borrower has not changed since they acquired above described property. Witness the 'and and seal of the undersigned this 1`f day of ,2017 --, , 4.0 .... .," 0P,,, or _.,,,,,,„ ,,,..= ,._e_., .,;„..,...... ..0,,,i____ Was ington County Regional Ambulance 'thority Th, Ci•- of Fa eville Subscribed and sworn to before me,a Notary Public,on this / day o L ,2017 fiat-- ( )--1(i1)1"4:21/( My Commission Expires: �1 Not ry Public wIttltii-10-0100 .1_ 0 III, `b.1\Sg\ON#Iz •389f 0,4 Please return this to Bronson Abstract Company,Inc.,3810 Front Street,Suite#5,Fayetteville,AR 72708— �oTAR y o .N File Number: 23183-17 _*• O •.N1 may• ••z; CLOSING CERTIFICATION FILE No: 23183-17 Address: 833 N.Crossover Road,Fayetteville,AR 72701-3000 We the undersigned hereby state that we are the party(ies) with respect the property referenced above and theretofore make the following certifications where applicable: PROPERTY ADDRESS PRORATIONS Bronson Abstract Company, Inc. (hereinafter referred to .: `Closing Agent") has , • ated the current years estate taxes (if a purchase)from January first of the current year throw: e date of the closing a ave given the purchaser credit for sam on the settlement statement. The purchaser will therefore .- responsible for payme• of those taxes when they • come due and p able the next payment cycle. If an escrow is being established for pa . ent of taxes and/or ins ce then the Closing Agent •. made the necess entries on the settlement statement as instructed b e Lender. The reserve .nd monthly payments for th= escrow have been a ablished by using the current amounts provided by . e County Assessor for - current year without consider. ion of any existing c dits. It is the responsibility of -e undersigned Borrowers urchaser(s)to contact the Co. ty Assessor's office f r the purpose of applying for any credits for wy they may be entitled. I ill also be the responsibility .f the undersigned to ovide the Lender with any information whichXould be necessary for the rpose of changes to any of the •scrow payment amount . The Closin Agent hereby disclosed th he valuations as provided b, e County Assessor's of ce at the time of closing may be changed any time for the closing d forward and said Closing A:- t shall not be held respo able or liable to the undersigned for any dis repancies and/or adjustme which may occur subsequen o the date of the closing. / TITLE INSURANCE AFFIDAVIT The undersigned, where applicable, hereby affirm that they have received a copy of the title insurance commitment and are aware of any matters contained therein. SURVEY-WAIVER The undersigned affirm and acknowledge that they did not receive,unless previously agreed and/or required,a survey of the property, and further will have no coverage or protection on the title policy with respect to matters that would have been disclosed by an accurate survey of the property. It is the responsibility of the undersigned to request such coverage, including but not limited to survey matters, directly from the title insurance issuing agent prior to the closing and be responsible for additional coverage. In the even the survey coverage is requested and/or required, it is further the responsibility of the undersigned to provide the title insurance issuing agent a survey which would meet the criteria and requirements as determined by the title insurance company guidelines. ERRORS AND OMISSIONS The undersigned party(ies) affirm and acknowledge that they will cooperate and agree to re-executed any documents, initial any changes, or pay any additional amounts and/or fees which my result from clerical errors or other matters, including but not limited to misspellings, incorrect names, addresses, legal descriptions, costs, terms, conditions, computations, taxes collected or due and expenses which were all done in good faith by the Closing Agent and further agree to respond to any such request made by Closing Agent,Lender,or other parties involved, in a manner which is timely and consistent with such request. We further agree to indemnify and hold Closing Agent, Lender and Realtors harmless from loss or damage or liability resulting from matters herein. Dated this 8th day of December,2017. PURCHASER alb KL, ' Was ' : • County Regio al • bulance Autho ity - ity • Fayette rr.1 Gc� �Iv • c wen-Me,4 ,Pre • t Parcel No.765-05033-000 . WARRANTY DEED BE IT KNOWN BY THESE PRESENTS: THAT the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTOR, for and in consideration of the sum of One Hundred Seventy-Five Thousand Dollars ($175,000.00), the receipt of which is hereby acknowledged, and the public interest, does hereby grant, . bargain, sell and convey unto Washington County Regional Ambulance Authority, 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: Lot Number Seven (7) in Block Numbered Three (3) of Eastwood Subdivision to the City of Fayetteville, Arkansas, as per plat of said subdivision on file in the office of the Circuit Clerk and Ex-Officio Recorder of Washington County, Arkansas. Less and except that portion lying within the right of way Arkansas State Highway 265. Subject to all easements and rights-of-way of record. TO HAVE AND TO HOLD the said lands and appurtenances hereunto 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. Consideration for the conveyance of this property includes the public interest to help ensure that Grantee can adequately provide ambulance or other governmental-type emergency services to Fayetteville residents. If the Grantee attempts to convey the property for a non-governmental use at any time within twenty (20) years from the date of this conveyance, then the Grantor, City of Fayetteville, Arkansas shall have the right of first refusal to re-purchase the property for $175,000.00. If the City desires to exercise this right of first refusal, it shall deliver written notice to that effect to Grantee within sixty (60) days of receiving notice in writing of Grantee's intent to convey the property. WITNESS the execution hereof on this the # day of1)Q4,4Yk�f . , 2017. CITY OF ETTEVILLE, ARKANSAS A Munic'. • Cor4110,; / poration 1Li.,, eld Jor•>•, I ayo ATTEST: ,144)X. Sondra Smith, CiVierkfiggasurer 0m'�(S�ECAi]Y F *Vo6S REVENU' STAMP •FFIDAVIT -U. •�� The foregoing dee, has th- corre amount of Revenue a FAYE1 TVI l_I_t — Stamps affixed ••is exe •t from s'ch sta .s. i .Cl CO o�� 410 ';1e/S,:°.hANSP •J `�` Sig d: A ._illi � L /iv9a i ori\O`` C y of io aeore-:n 113 .Mo ain Fa -tt- ' e,AR 72701 • ACKNOWLEDGMENT STATE OF ARKANSAS 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 Lioneld Jordan and Sondra Smith, to me well known as the persons who executed the foregoing document, and who stated and acknowledged that they are the Mayor and City Clerk-Treasurer, respectively, of the City of Fayetteville, Arkansas, a Municipal Corporation, and are duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behalf of said City of Fayetteville, Arkansas, and further stated and acknowledged that they 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 J4 day of 4-e-U911 "" , 2017. No cry Public MyCommission E es: I — to -' •a;1/4___ �••\SSS\0N �{12�8•,9• 01 apTARy co•A- •• may: POW : f A DOCUMENT IS PRINTED ON CHEMICALLY REACTIVE PAPER-THE BACK OF THIS DOCUMENT INCLUDES A TAMPER EVIDENT CHEMICAL WASH WARNING BOX H \ 025505 w BRONSON ABSTRACT COMPANY, I14C. BANK OF FAYETTEVILLE Iv, ESCROW ACCOUNT FAYETTEVILLE, AR 72701 w .3810 FRONT ST.,SUITE 5 81-747/829 12/14/2017 --FAYETTEVILLE,AR 72703 File No.: 23183-17 z .- ' PAY TO THE $ 174,135.00 ORDER of The City of Fayetteville ONE HUNDRED SEVENTY FOUR THOUSAND ONE HUNDRED THIRTY FIVE AND NO/100 DOLLARS - . oouARs " The City of Fayetteville . o - 113• W. Mountain Stre•et .v''fE°��`A Fayetteville, AR 72701 ' - 0.4„_:,4 _- go�� ar ~ MEMO _ _ - _ - AUTHORIZED SIGNATURE - 1_0Es' _ 11■0 2550511' ':08 2907La ? ?I: 209877 2" $ OMB No.2502-0265 FINAL B. TYPE OF LOAN A. SETTLEMENT STATEMENT (HUD-1) 1. ❑ FHA 2. ❑ FHMA 3. ❑ CONV.UNINS. °' ( 4. 11] VA 5. ❑ CONY.INS. 6.FILE NUMBER: 7.LOAN NUMBER '�t 11111 � 23183-17 '''„:+.r 04. 8.MORTGAGE INS.CASE NO.: C.NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked"(p.o.e.)"were paid outside the closing;they are shown here for informational purposes and are not included in the totals. D. NAME&ADDRESS Washington County Regional Ambulance Authority OF BORROWER: E. NAME&ADDRESS The City of Fayetteville OF SELLER: F. NAME&ADDRESS Cash OF LENDER: G. PROPERTY LOCATION: 833 N.Crossover Road,Fayetteville,AR 72701-3000 H. SETTLEMENT AGENT: Bronson Abstract Company,Inc. PLACE OF SETTLEMENT: 3810 Front Street,Suite 5,Fayetteville,AR 72703(479)442-2700 I. SETTLEMENT DATE: 12/14/2017 DISBURSEMENT DATE: 12/14/2017 J. Summary of Borrower's Transaction K. • Summary of Seller's Transaction 100.Gross Amount Due From Borrower: 400.Gross Amount Due To Seller: 101. Contract sales price 175,000.00 401. Contract sales price 175,000.00 102. Personal property 402. Personal property 103. Settlement charges to borrower:(line 1400) 425.00 403. 104. 404. . 105. 405. Adjustments For Items Paid By Seller In Advance: Adjustments For Items Paid By Seller In Advance: 106.City/town taxes to 406.City/town taxes to 107.County taxes to 407.County taxes to • 108.Assessments to 408.Assessments to 109. 409. 110. 410. 1.11. 411. 112. 412.. 113. 413. 114. 414. 115. • 415. 116. 416. 120.Gross Amount Due From Borrower: 175,425.00 420.Gross Amount Due To Seller: 175,000.00 200.Amounts Paid By Or In Behalf Of Borrower 00 Reductinnc in Amount Due T eller 201. Deposit or earnest money 501. Excess deposit(see instructions) 202. Principal amount of new loan(s) 502. Settlement charges to seller(line 1400) 865.00 203. Existing loan(s)taken subject to 503. Existing loan(s)taken subject to 204. 504. Payoff 1st Mtg.Ln. 205. 505. Payoff 2nd Mtg.Ln. 206. 506. 207. 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.County taxes to 511.County taxes to 212.Assessments to 512.Assessments to 213. 513. 214. 514. 215. 515. 216. 516. 217. 517. 218. 518. 219. 519. 220.Total Paid By/For 520.Total Reductions Borrower: In Amount Due Seller: 865.00 300.Cash At Settlement From/To Borrower: 600.Cash At Settlement From/To Seller: 301. Gross amount due from borrower(line 120) 175,425.00 601. Gross amount due to seller(line 420) 175,000.00 302. Less amount paid by/for borrower(line 220) 602. Less reductions in amount due seller(line 520) 865.00 303.Cash(EFROM) t❑TO) Borrower: 175,425.00 603.Cash(DTO) (❑FROM) Seller: 174,135.00 Previous Edition Is Obsolete SB-4-3538-000-1 Form No. 1581 HUD-1(3-86) 3/86 RESPA,HB 4305.2 Page 1 of 3 L. SETTLEMENT CHARGES Escrow:23183-17 700.Total Sales/Broker's Commission: Paid From Paid From Based On Price $ 175.000.00 (a7 %= Borrower's Seller's Division of Commission(line 7001 As Follows: Funds Funds 701 $ to At At 702.$ to Settlement Settlement 703.Commission paid at settlement 704. R00. items Payable In Connection With I,nan: 801.Loan Origination fee % 802,Loan Discount 803.Appraisal fee to:Cash Appraisal Fee 804,Credit report to:Cash Credit Report Fee 805.Lender's inspection fee $06.Mortgage insurance application fee to 807.Assumption fee 808.Loan Fee To:Cash Loan Fee 809.Underwriting Fee To:Cash Underwriting Fee 810. 811, 812, 813. 814. 815, 816. 817. 818. 819. 820. 821. 900. Items Required By Lender Tn Be Paid In Advanre: 901.Interest from to Q$ /day (0 days) 902.Mortgage insurance premium for mo,to 903,Hazard insurance premium for yrs.to 904.Flood insurance premium for yrs.to 905, 906. 1000. Reserves Deposited With Lender: 1001. Hazard insurance 0 months @$ 0,00 per month 1002. Mortgage insurance 0 months @$ 0.00 per month 1003, City property taxes 0 months(iii$ 0.00 per month 1004. County property taxes 0 months(c i$ 0.00 per month County Taxes Reserves 1005, Annual assessments 0 months(a$ 0.00 per month 1006. Flood insurance 0 months Cii$ 0.00 per month 1007. 0 months Q.$ 0.00 per month 1008. Aggregate Adjustment 1009. 1100. Title Charges 1101. Settlement or closing fee to Bronson Abstract Company,Inc.Title-Settlement Agent Fee 275.00 275.00 1102. Abstract or title search to Bronson Abstract Company,Inc.Title-Title Search 125.00 125.00 1103. Title examination to 1104. Title insurance binder to 1105. Document preparation to Bronson Abstract Company,Inc.Title-Document Preparation Fee 1106. Notary fees to 1107. Attorney's fees to (includes above item Numbers: ) 1108. Title insurance to Bronson Abstract Company,Inc.Title-Lender/Mortgagee Premium (includes above item Numbers: ) 465.00 1109. Lender's coverage $0.00 Premium: $0.00 1110. Owner's coverage $ 175.000.00 Premium: $465.00 1111. 1112. 1113. 1114. 1200. Government Recording and Transfer Charges: 1201, Recording fees: Deed$ 25.00 ;Mortgage$ 0.00 :Releases$ 0.00 25.001 1202. City/county tax/stamps:Deed$ 0.00 ;Mortgage$ 0.00 1203, State tax/Stamps: Deed$ 0.00 :Mortgage$ 0.00 1204. 1205. 1300. Additional Settlement Charges: 1301. Survey to 1302. Pest inspection to 1303. 1304. 1305. 1306. 1307. 1308. 1400. Total Settlement Charge (Enter on line 103, Section J-and-line 502,Section K) 425.00 865.00 Form No. 1582 Page 2 of 3 SB-4-3538-000-1 SELLER'S.AND/OR BORROWER'S STATEMENT Escrow: 23183-17 I have carefully reviewed the HUD-1 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 HUD-1 Settlement Statement. Borrowers/Purchasers Sellers 1 Washington County Regiona - butane The :�" •f Fayett Authori B Y . ••: / •• President • The HUD-1 Settlement Statement which I have prepared is a true and accurate account of this transaction.I have caused or will cause the funds to be disbursed in accordant with this �m�eent. Settlement Agent: (11 ) Date: Lela R.Davis,Bronson Abstract Company,Inc. WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form.Penalties upon conviction can include a fine or imprisonment.For details see: Title 18 U.S.Code Section 1001 and Section 1010. • • Page 3 of 3