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Agenda 01/09/2018 Item #16A1201/09/2018 EXECUTIVE SUMMARY Recommendation to approve an easement agreement for the purchase of a road right-of-way, drainage, and utility easement (Parcel 471RDUE) which will be required for the expansion of Golden Gate Boulevard between Everglades Boulevard and DeSoto Boulevard (Project 60145). Estimated Fiscal Impact: $14,700. OBJECTIVE: To continue acquiring right-of-way in accordance with the adopted budget for the future expansion of Golden Gate Boulevard between Everglades Boulevard and DeSoto Boulevard. CONSIDERATIONS: Collier County is seeking to purchase a 3,675 square foot, more or less, perpetual, non-exclusive Road Right-of-Way, Drainage and Utility Easement (“Parcel 471RDUE”) that is part of a 1.17 acre parent tract owned by Kenneth G. Minzey, Kathryn M. Minzey, Thomas A. Minzey and Robert J. Minzey as joint tenants with rights of survivorship (“Property Owners”). The property is located on the south side of Golden Gate Boulevard between Everglades Boulevard and Desoto Boulevard. The accompanying appraisal dated January 2017 prepared by R. Alan Wilcox, MAI, SRA, of Wilcox Appraisal Services, Inc. estimates the current market value of Parcel 471RDUE to be $7,100. This estimate is based on a land value of $1,600, rounded ($20,295 per acre) together with the contributory value of the affected site improvements located within the proposed right-of-way ($5,500). Contact with the Property Owners regarding the sale of the right -of-way to the County was first made on or about June 15, 2010. On October 3, 2017, staff was advised by the Property Owners’ attorney that the appraisal amount of $7,100 is accepted for Parcel 471RDUE. The attached easement agreement reflects a negotiated all-inclusive settlement amount of $14,600 ($7,100 for the easement plus an additional $7,500 as full and final satisfaction of any and all attorney fees and expert witness costs that could be asserted against Collier County pursuant to Sections 73.091 and 73.092, Florida Statutes, with respect to the County’s attempt to acquire Parcel 471RDUE.) Accordingly, staff is recommending that the Board of County Commissioners (the “Board”) approve the accompanying agreement for the purchase of Parcel 471RDUE. FISCAL IMPACT: Funds in the amount of $14,700, being the aggregate settlement price of $14,600 and approximately $100 in recording fees, will be required. The primary funding source for the acquisition of right-of-way is impact fees. Should impact fees not be sufficient within a particular project, the secondary funding source will be gas taxes. Incremental maintenance costs for Golden Gate Boulevard from east of Everglades Boulevard to east of the Faka Union Canal are estimated at $2,500 per year for mowing and garbage removal. The cost to maintain stormwater management infrastructure will be approximately $4,000 on a three to five year basis. New roadway construction has a maintenance curve of approximately five to seven years before any incremental costs are required for repairs. LEGAL CONSIDERATIONS: This item has been approved as to form and legality, and requires a majority vote for Board approval. - ERP GROWTH MANAGEMENT IMPACT: This recommendation is consistent with the Long Range Transportation Plan and the Collier County Growth Management Plan. 16.A.12 Packet Pg. 312 01/09/2018 RECOMMENDATION: . Approve the attached easement agreement and authorize the Chairman to execute same on behalf of the Board; . Accept the conveyance of Parcel 471RDUE and authorize the County Manager, or his designee, to record the conveyance instrument in the public records of Collier County, Florida; . Authorize the payment of all costs and expenses that Collier County is required to pay under the terms of the easement agreement to close the transaction; . Authorize the County Manager or his designee to take the necessary measures to ensure the County’s performance in accordance with the terms and conditions of the easement agreement; and . Authorize any, and all, budget amendments that may be required to carry out the collective will of the Board. Prepared by: Deborah Farris, Senior Property Acquisition Specialist, ROW, Transportation Engineering Division, Growth Management Department. ATTACHMENT(S) 1. 471RDUE Agreement (PDF) 2. LOCATION MAP (DOCX) 3. [Linked] Appraisal Report (PDF) 16.A.12 Packet Pg. 313 01/09/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.A.12 Doc ID: 4231 Item Summary: Recommendation to approve an easement agreement for the purchase of a road right-of-way, drainage, and utility easement (Parcel 471RDUE) which will be required for the expansion of Golden Gate Boulevard between Everglades Boulevard and DeSoto Boulevard (Project 60145). Estimated Fiscal Impact: $14,700. Meeting Date: 01/09/2018 Prepared by: Title: Property Acquisition Specialist, Senior – Transportation Engineering Name: Deborah Farris 11/17/2017 2:49 PM Submitted by: Title: Division Director - Transportation Eng – Transportation Engineering Name: Jay Ahmad 11/17/2017 2:49 PM Approved By: Review: Transportation Engineering Mario Puente Additional Reviewer Completed 11/20/2017 10:29 AM Growth Management Department Lisa Taylor Additional Reviewer Completed 11/21/2017 9:12 AM Growth Management Department Diane Lynch Level 1 Reviewer Completed 11/21/2017 9:55 AM Growth Management Department Marlene Messam Additional Reviewer Completed 11/21/2017 10:18 AM Growth Management Department Gene Shue Additional Reviewer Completed 11/21/2017 11:32 AM Transportation Engineering Jay Ahmad Additional Reviewer Completed 11/27/2017 7:19 AM Transportation Engineering Kevin Hendricks Additional Reviewer Completed 11/27/2017 1:33 PM Growth Management Operations Support Allison Kearns Additional Reviewer Completed 12/01/2017 9:50 AM Road Maintenance Travis Gossard Additional Reviewer Completed 12/06/2017 4:06 PM Growth Management Department Thaddeus Cohen Department Head Review Completed 12/11/2017 9:42 AM County Attorney's Office Emily Pepin Level 2 Attorney Review Completed 12/11/2017 4:04 PM Growth Management Department James French Deputy Department Head Review Completed 12/14/2017 9:29 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 12/18/2017 8:34 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 12/19/2017 8:11 AM Budget and Management Office Mark Isackson Additional Reviewer Completed 01/02/2018 2:13 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 01/02/2018 2:53 PM 16.A.12 Packet Pg. 314 01/09/2018 Board of County Commissioners MaryJo Brock Meeting Pending 01/09/2018 9:00 AM 16.A.12 Packet Pg. 315 16.A.12.a Packet Pg. 316 Attachment: 471RDUE Agreement (4231 : 60145-471RDUE) 16.A.12.a Packet Pg. 317 Attachment: 471RDUE Agreement (4231 : 60145-471RDUE) 16.A.12.a Packet Pg. 318 Attachment: 471RDUE Agreement (4231 : 60145-471RDUE) 16.A.12.a Packet Pg. 319 Attachment: 471RDUE Agreement (4231 : 60145-471RDUE) 16.A.12.a Packet Pg. 320 Attachment: 471RDUE Agreement (4231 : 60145-471RDUE) 16.A.12.a Packet Pg. 321 Attachment: 471RDUE Agreement (4231 : 60145-471RDUE) 16.A.12.a Packet Pg. 322 Attachment: 471RDUE Agreement (4231 : 60145-471RDUE) LOCATION MAP Golden Gate Boulevard Project #60145/Parcel 471RDUE 16.A.12.b Packet Pg. 323 Attachment: LOCATION MAP (4231 : 60145-471RDUE) Prepared for and property of Collier County Board of Commissioners Reliance upon the appraisal for other uses is not warranted. Appraisal Report Number 16-12-01 (Parcel No. 471 RDUE) Project: Widening of Golden Gate Boulevard County Project No. 60040.1 Parcel No. 471 RDUE Parent Tract: 1.17 Acre Vacant Tract. Improvements: One Single-Family Home and Associated Site Improvements. Location: The parent tract is located on the south side of Golden Gate Boulevard E. between Everglades Boulevard and Desoto Boulevard in Collier County, Naples, Florida. The parent tract has a street address of 4030 Golden Gate Boulevard E., Naples, Florida 34120. Owners: Kenneth G. Minzey, Kathryn M. Minzey, Thomas A. Minzey and Robert J. Minzey. Folio No.: 40870440009. Date of Valuation: January 11, 2017. (Date of the Most Recent Inspection) For Harry Henderson, SRA, Review Appraiser Transportation Right-Of-Way Group 2885 South Horseshoe Drive Naples, Florida 34104 January 2017 Prepared By: Wilcox Appraisal Services, Inc. 1633 SE 41st Street Cape Coral, Florida 33904-7470 239-542-2311 Email: awilcoxmaisra@comcast.net Wilcox Appraisal Services, Inc. is committed to the highest degree of professionalism with all of our appraisers being designated members of the Appraisal Institute. 1633 S.E. 41st Street • Cape Coral • Florida 33904-7470 239-542-2311 • Email awilcoxmaisra@comcast.net Prepared for and property of Collier County Board of Commissioners. Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. January 19, 2017 Harry Henderson, SRA, Review Appraiser Transportation Right-of-Way Group 2885 South Horseshoe Drive Naples, Florida 34104 Re: Appraisal Report Number: 16-12-01 (Parcel No. 471 RDUE). Project: Widening of Golden Gate Boulevard. Parcel No.: 471 RDUE. Parent Tract: 1.17 Acre Vacant Tract. Improvements: One Single-Family Home and Associated Site Improvements. Location: The parent tract is located on the south side of Golden Gate Boulevard E. between Everglades Boulevard and Desoto Boulevard in Collier County, Naples, Florida. The parent tract has a street address of 4030 Golden Gate Boulevard E., Naples, Florida 34120. Owners: Kenneth G. Minzey, Kathryn M. Minzey, Thomas A. Minzey and Robert J. Minzey. Folio No.: 40870440009. Date of Value: January 11, 2017 (Date of Most Recent Inspection). Dear Mr. Henderson: Pursuant to your request, an inspection and valuation analysis has been completed of the above referenced property for the purpose of estimating the market value of the property rights and improvements (if any) which are proposed to be acquired, together with all diminution in value to the remainder land and improvements (if any) which can be attributed to the proposed use of, or activity upon, the proposed perpetual, non-exclusive, road right-of-way, drainage, utilities easement (Parcel No. 471 RDUE). The Appraisal Standards Board of the Appraisal Foundation adopted the “2016-2017 Uniform Standards of Professional Appraisal Practice” (USPAP) on February 6, 2015. The 2016-2017 standards became effective January 1, 2016 through December 31, 2017. In compliance with Standards Rule 2-2(a), the appraiser is communicating to the client an “Appraisal Report”, one of the two reporting options allowed under Standards Rule 2-2. To estimate the compensation due the property owner, the appraiser has estimated the “as is” market value of the undivided fee simple interest in the parent tract before and after the proposed acquisition. Accordingly, as of the date of value, January 11, 2017, the appraiser has utilized the hypothetical condition assuming the proposed acquisition and the proposed roadway improvements have been completed. A hypothetical condition is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the parent tract; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. Wilcox Appraisal Services, Inc. is committed to the highest degree of professionalism with all of our appraisers being designated members of the Appraisal Institute. Page No. 2 PR January 19, 2017 Harry Henderson, SRA, Review Appraiser Wilcox Appraisal Services, Inc. Prepared for and property of Collier County Board of Commissioners. Reliance upon the appraisal for other uses is not warranted. The parent tract is improved with a single-family home and associated site improvements. The parent tract single-family home is setback approximately 150 feet from the existing right-of-way of Golden Gate Boulevard E. before the taking. After the taking, the remainder property single- family home is setback approximately 101 feet from the new right-of-way of Golden Gate Boulevard E. The setback of the remainder property’s single-family home exceeds the minimum zoning requirement and is within typical market setback standards. The only significant improvements located within the proposed acquisition area consist of site improvements. Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. This letter of transmittal precedes the full narrative appraisal report, further describing the property and containing the reasoning and most pertinent data leading to the final value estimates. Your attention is directed to the "General Assumptions", "General Limiting Conditions", and "Certificate of Appraisal", which are considered usual for this type of assignment and have been included in the addendum of this report. By reason of my investigation and analysis, data contained in this report, and my experience in the real estate appraisal business, it is my opinion that the amount due the property owner, as a result of the loss of real estate resulting from the property rights and improvements (if any) which are proposed to be acquired, including all diminution in value to the remainder land and improvements (if any) which can be attributed to the use of or activity upon the proposed perpetual, non-exclusive, road right-of-way, drainage, utilities easement (Parcel No. 471 RDUE), as of January 11, 2017, is: Value of the Property Rights Taken: $1,600 Value of the Improvements Taken: $5,500 Severance Damages: 0 Net Cost to Cure: 0 TOTAL AMOUNT DUE OWNER: $7,100 Respectfully submitted, WILCOX APPRAISAL SERVICES, INC. R. Alan Wilcox, MAI, SRA State-Certified General Real Estate Appraiser RZ 306 Prepared for and property of Collier County Board of Commissioners. Page 1 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Table of Contents PAGE TABLE CONTENTS ........................................................................................................ 1 CERTIFICATION............................................................................................................. 3 SUMMARY OF SALIENT FACTS AND CONCLUSIONS .............................................. 5 INTRODUCTION AND DEFINITION OF THE APPRAISAL PROBLEM ...................... 12 Identification of the Intended User ....................................................................................... 13 Identification of the Real Estate ........................................................................................... 13 Prior Services ...................................................................................................................... 13 Identification of the Property Rights to be Valued ................................................................ 13 Intended Use or Function of the Appraisal ........................................................................... 14 Definition of the Value Estimate(s) ...................................................................................... 14 Date of Value Estimate(s) ................................................................................................... 15 Description of the Scope of the Appraisal ............................................................................ 15 Hypothetical Conditions ....................................................................................................... 15 Other Limiting Conditions .................................................................................................... 16 PHOTOGRAPHS OF THE PARENT TRACT ............................................................... 17 VALUATION ANALYSIS OF THE PARENT TRACT ................................................... 22 Owner of Record ................................................................................................................. 23 Legal Description of the Parent Tract .................................................................................. 23 Real Estate Assessments and Ad Valorem Taxes ............................................................... 23 Sales and Marketing History of the Parent Tract ................................................................. 23 Florida Area and Collier County Map ................................................................................... 24 Parent Tract Local Area Map ............................................................................................... 25 Market Area Data ............................................................................................................... 26 Parent Tract Aerial Map ...................................................................................................... 29 Parent Tract Plat Map ......................................................................................................... 30 Parent Tract Land Use Map ................................................................................................ 31 Parent Tract Zoning Map ..................................................................................................... 32 Site Data ............................................................................................................................ 33 Collier County Future Land Use Designation ....................................................................... 35 Zoning Classification ........................................................................................................... 36 Improvement Data ............................................................................................................... 38 Highest and Best Use .......................................................................................................... 39 The Appraisal Process ........................................................................................................ 40 The Sales Comparison Approach to Value .......................................................................... 42 Land Sales Map .................................................................................................................. 44 Reconciliation of the Value Indications ................................................................................ 52 Estimation of Reasonable Exposure Time ........................................................................... 54 Prepared for and property of Collier County Board of Commissioners. Page 2 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Table of Contents – continued PAGE DESCRIPTIONS AND VALUATION ANALYSES OF THE PROPOSED PARTIAL ACQUISITION AREA AND THE REMAINDER PROPERTY ....................................... 55 Parcel No. 471 RDUE Acquisition Area Map ....................................................................... 56 Project Description and Identification of the Proposed Partial Acquisition Area ................... 57 Valuation Analysis of the Proposed Partial Acquisition Area ................................................ 57 Valuation Analysis of the Remainder Property “As Severed” ............................................... 59 Severance Damages to the Remainder Property ................................................................ 60 Cost to Cure Analysis .......................................................................................................... 60 Special Benefits .................................................................................................................. 60 Summary and Conclusion and the Total Compensation Estimate ....................................... 61 ADDENDUM ................................................................................................................. 62 Assumptions and Limiting Conditions .................................................................................. 63 Qualifications of the Appraiser ............................................................................................. 65 Copy of Parent Tract’s Quit Claim Deed .............................................................................. 67 Quarterly Market Detail – 3rd Quarter 2016 for Single Family Homes in Collier County .......................................................................... 59 Land Sales Map .................................................................................................................. 71 Land Sales Data Sheets ...................................................................................................... 72 Prepared for and property of Collier County Board of Commissioners. Page 3 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Certification I certify that, to the best of my knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, 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 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 and 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 developing or 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 this appraisal. • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report, R. Alan Wilcox, MAI, SRA, has completed the requirements under the continuing education program of the Appraisal Institute. • As of the date of this report, R. Alan Wilcox, MAI, SRA, State-Certified General Real Estate Appraiser, License No. RZ 306, has completed the requirements under the continuing education program of the State of Florida for state-certified appraisals. • I, R. Alan Wilcox, MAI, SRA, have made a personal inspection of the subject property and sales comparables that are contained in this report. • No one provided significant professional assistance other than the person signing this report, unless otherwise indicated within the report. • I, R. Alan Wilcox, MAI, SRA, have performed no 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. • This report was prepared for and is the property of the Collier County Board of Commissioners and the reliance upon this appraisal for other uses is not warranted. • Acceptance and utilization of this appraisal report, or any portion thereof, constitutes acknowledgement and acceptance of all General Assumptions and Special Conditions contained herein. Prepared for and property of Collier County Board of Commissioners. Page 4 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. To estimate the compensation due the property owner, the appraiser has estimated the “as is” market value of the undivided fee simple interest in the parent tract before and after the proposed acquisition. Accordingly, as of the date of value, January 11, 2017, the appraiser has utilized the hypothetical condition assuming the proposed acquisition and the proposed roadway improvements have been completed. A hypothetical condition is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the parent tract; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. The parent tract is improved with a single-family home and associated site improvements. The parent tract single-family home is setback approximately 150 feet from the existing right-of-way of Golden Gate Boulevard E. before the taking. After the taking, the remainder property single- family home is setback approximately 101 feet from the new right-of-way of Golden Gate Boulevard E. The setback of the remainder property’s single-family home exceeds the minimum zoning requirement and is within typical market setback standards. The only significant improvements located within the proposed acquisition area consist of site improvements. Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. By reason of my investigation and analysis, data contained in this report, and my experience in the real estate appraisal business, it is my opinion that the amount due the property owner, as a result of the loss of real estate resulting from the property rights and improvements (if any) which are proposed to be acquired, including all diminution in value to the remainder land and improvements (if any) which can be attributed to the use of or activity upon the proposed perpetual, non-exclusive, road right-of-way, drainage, utilities easement (Parcel No. 471 RDUE), as of January 11, 2017, is: Value of the Property Rights Taken: $1,600 Value of the Improvements Taken: $5,500 Severance Damages: 0 Net Cost to Cure: 0 TOTAL AMOUNT DUE OWNER: $7,100 Respectfully submitted, WILCOX APPRAISAL SERVICES, INC. R. Alan Wilcox, MAI, SRA State-Certified General Real Estate Appraiser RZ 306 Prepared for and property of Collier County Board of Commissioners. Page 5 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Summary of Salient Facts and Conclusions A. Appraisal Problem: 1. Types of Value (s): Market Value. 2. Property Rights: Undivided Fee Simple Interest. 3. Intended Use of Appraisal Report: The intended use of the appraisal is understood to be for use as a basis of value for determining full compensation to the property owner for the loss of the real estate resulting from the property rights and improvements (if any) which are proposed to be acquired, including all diminution in value to the remainder land and improvements (if any) which can be attributed to the use of, or activity upon, the proposed perpetual, non-exclusive, road right-of-way, drainage, utilities easement (Parcel No. 471 RDUE). 4. Date of Value: January 11, 2017 (Date of Most Recent Inspection). 5. Scope of Analysis: Appraisal Report. 6. Owners of Record: Kenneth G. Minzey, Kathryn M. Minzey, Thomas A. Minzey and Robert J. Minzey . B. Site Data, Before the Taking: 1. Location: The parent tract is located on the south side of Golden Gate Boulevard E. between Everglades Boulevard and Desoto Boulevard in Collier County, Naples, Florida. The parent tract has a street address of 4030 Golden Gate Boulevard E., Naples, Florida 34120. 2. Size & Shape: The parent tract contains 1.17 acres of gross land area and is rectangular in shape. Tracts that are smaller than 2.25 acres are considered to be legally non-conforming tracts. Accordingly, the parent tract is considered to be a legally non-conforming tract. Specifically, the parent tract has a northern property line along Golden Gate Boulevard E. that measures 75 feet; with a depth there from along the eastern and western property lines that measure 680 Prepared for and property of Collier County Board of Commissioners. Page 6 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. feet; and a rear, southern property line that measures 75 feet. 3. Roadway Frontage: The parent tract benefits from 75 feet of frontage along the southerly right-of-way of Golden Gate Boulevard E. Golden Gate Boulevard E. is an arterial, undivided, two lane, paved roadway. 4. Utilities: The available utilities to the parent tract include telephone, electrical service and emergency services. Drinking water would be typically provided by a private well. Wastewater would be typically disposed of by a private septic tank and drain field combination. 5. Topography: The parent tract is a level tract covered with vegetation that is partially cleared. The parent tract is situated within an area designated Flood Zone AH in the Federal Emergency Management Flood Rate Maps, Map Number 12021C0435H, and dated May 16, 2012. Flood Zone AH includes areas subject to inundation by 1-percent-annual-chance shallow flooding (usually areas of ponding) where average depths are between one and three feet. Base Flood Elevations (BFEs) derived from detailed hydraulic analyses are shown in this zone. Mandatory flood insurance purchase requirements and floodplain management standards apply. 6. Predominant Soils: Based on the appraiser's review of the United States Department of Agriculture’s Soil Survey of Collier County, Florida, the parent tract is located in an area with predominant soil types that includes No. 4, Chobee, Limestone substratum, and Dania mucks, depressional; and No. 21, Boca fine sand. It is important to bring to the reader’s attention that the information reported above related to the predominant soil group(s) on or near the parent tract, are general in nature, and may or may not apply specifically to the soil group(s) located on the parent tract. 7. Exotic Vegetation and Wildlife: Current county, state, and federal regulations have considered certain areas jurisdictional based upon vegetation classifications and/or wildlife species. The appraiser is not an expert Prepared for and property of Collier County Board of Commissioners. Page 7 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. at vegetation groups or wildlife identification and has not been provided a report prepared by such an expert. The parent tract is presumed to be unencumbered by current county, state, and federal regulations related to certain areas being considered to be jurisdictional based upon vegetation classifications and/or wildlife species. Furthermore, the appraiser has assumed a reasonable quantity of non- jurisdictional uplands exist on the parent tract suitable for the development of the property in accordance to the estimated highest and best use. 8. Environmental Liabilities: The parent tract is assumed to be unaffected by environmental liabilities. However, the reader is advised that no environmental studies of the parent tract have been provided to the appraiser. 9. Easements & Restrictive Covenants: The parent tract is encumbered by a 50-foot wide road right-of-way easement along the northern property line along the property’s existing frontage to Golden Gate Boulevard E. The appraiser is not aware of any other easements or restrictive covenants which might adversely affect the market value and development of the parent tract before the taking. However, the reader is advised that the appraiser has not been provided any title information. 10. Land Use and Zoning: The parent tract is designated Estates Designation on the Collier County Future Land Use Map, within the Residential Estates Sub- district, and is further regulated by the Golden Gate Area Master Plan. Furthermore, the parent tract is zoned E, Estates District, according to the Collier County Land Development Code. C. Improvement Data, Before the Taking: The parent tract is improved with a single-family home and associated site improvements. The parent tract single-family home is setback approximately 150 feet from the existing right- of-way of Golden Gate Boulevard E. before the taking. After the taking, the remainder property single-family home is setback approximately 101 feet from the new right-of-way of Golden Prepared for and property of Collier County Board of Commissioners. Page 8 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Gate Boulevard E. The setback of the remainder property’s single-family home exceeds the minimum zoning requirement and is within typical market setback standards. The only significant improvements located within the proposed acquisition area consist of site improvements. Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. D. Highest and Best Use, Before the Taking: 1. As Though Vacant: The highest and best use “as though vacant” is estimated to be potential single-family residential development. 2. As Improved: The highest and best use of the parent tract “as improved” is estimated to be the continued use of the existing improvements as a single-family home and associated site improvements. E. Market Value Estimate, Before the Taking: 1. Land Value: .......................................................................................................... $24,000 2. Improvements: ...................................................................................................... $ 5,500 Total Market Value of the Parent Tract: .................................................................... $29,500* * Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. F. Reasonable Exposure Time: Six to twelve months. G. Intended Use of the Proposed Acquisition Area and A Description of the Proposed Land and Improvements Taken: 1. Intended Use of the Proposed Acquisition: The proposed perpetual, non-exclusive, road right-of-way, drainage, utilities easement will be utilized for the widening of Golden Gate Boulevard E. from Wilson Boulevard to DeSoto Boulevard. Plans included the widening of Golden Gate Boulevard E. from two lanes to four lanes and will include capacity improvements such as adding turn lanes to the Wilson Prepared for and property of Collier County Board of Commissioners. Page 9 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Boulevard and Everglades Boulevard intersections. Other improvements include traffic signal upgrades at three major intersections (Wilson, Everglades and DeSoto Boulevards), on-road bike lanes and sidewalks on both sides of the roadway. This project will also include the replacement of bridges over three canals, the Golden Gate, Miller and Faka Union canals. 2. Proposed Land and Property Rights Taken: Parcel No. 471 RDUE is a perpetual, non- exclusive, road right-of-way, drainage, and utilities easement that consists of a 49 foot wide strip taking along the southerly right-of-way of Golden Gate Boulevard E. Parcel No. 471 RDUE contains 0.08 acres (3,675 square feet) of gross land area and is rectangular in shape. Specifically, the Parcel No. 471 RDUE has a northern property line along Golden Gate Boulevard E. that measures 75 feet; with a depth there from along the eastern and western property lines that measure 49 feet; and a rear, southern property line that measures 75 feet. 3. Proposed Improvements Taken: The only significant improvements that will be taken consist of site improvements including a portion of the gravel drive, sod, landscaping, site clearing, fill and grading. Pertinent improvements to establish the driveway connection(s) to Golden Gate Boulevard E. will be re-established by Collier County. H. Market Value of the Proposed Property Rights and Improvements Taken: Property Rights Taken: ................................................................................................ $ 1,600 Improvements Taken: .................................................................................................. $5,500 Total: ............................................................................................................................ $7,100 I. Market Value of the Remainder Property, As Part of the Whole: 1. Market Value of the Parent Tract, Before the Taking: ........................................... $29,500 2. Less Market Value of the Proposed Part Taken: ................................................... $ 7,100 Total Market Value of the Remainder Property, As Part of the Whole: ....................... $22,400 Prepared for and property of Collier County Board of Commissioners. Page 10 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. J. Description of the Remainder Property, After the Taking: 1. Site Data, Remainder Property: The remainder property shall contain 1.17 acres of gross land area and is still rectangular in shape and the same size and shape as before the taking, since the proposed property rights to be acquired involve a perpetual easement for road right-of-way, drainage, utilities and maintenance of these uses. However, the remainder property will be encumbered by an additional perpetual easement located along the southerly existing right-of-way of Golden Gate Boulevard E. containing 0.08 acres of gross land area. The remainder property’s overall access, availability to utilities, topography, land use designation, and zoning are unchanged. 2. Improvement Data, Remainder Property: The remainder property’s improvements are the same as before the taking, except for the taking of minor site improvements. 3. Highest and Best Use, Remainder Property: a. As Though Vacant: The highest and best use of the remainder property “as vacant” is estimated to remain the same as before the taking, potential single- family residential development. b. As Improved: The highest and best use of the remainder property “as improved” is estimated to remain the same as before the taking, the continued use of the existing improvements as a single- family home and associated site improvements. K. Market Value of the Remainder Property, After the Taking: 1. Land Value: .......................................................................................................... $22,400 2. Improvement Value: ............................................................................................. $ 0 Total Market Value of the Remainder Property: ........................................................ $22,400* * Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. Prepared for and property of Collier County Board of Commissioners. Page 11 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. L. Severance Damages: The remainder property is not considered to be damaged due to the proposed perpetual, non- exclusive, road right-of-way, drainage, utilities easement. M. Cost to Cure: None. N. Special Benefits: None. 0. Summary of the Just Compensation Estimate: Value of the Property Rights Taken: $1,600 Value of the Improvements Taken: $5,500 Severance Damages: 0 Net Cost to Cure: 0 TOTAL AMOUNT DUE OWNER: $7,100 P. Extraordinary Assumptions: None. Q. Hypothetical Conditions: To estimate the compensation due the property owner, the appraiser has estimated the “as is” market value of the undivided fee simple interest in the parent tract before and after the proposed acquisition. Accordingly, as of the date of value, January 11, 2017, the appraiser has utilized the hypothetical condition assuming the proposed acquisition and the proposed roadway improvements have been completed. A hypothetical condition is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the parent tract; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. R. Prior Services: The appraiser signing this report has performed no 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. S. Appraiser: R. Alan Wilcox, MAI, SRA; State-Certified General Real Estate Appraiser, RZ 306. Prepared for and property of Collier County Board of Commissioners. Page 12 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Introduction and Definition of the Appraisal Problem The first step of the valuation process is the development of a clear statement of the appraisal problem. This sets the limits of the appraisal and eliminates any ambiguity about the nature of the assignment. The statement of the appraisal problem includes: • Identification of the Intended User(s); • Identification of the Real Estate; • Prior Services; • Identification of the Property Rights to be Valued; • Intended Use or Function of the Appraisal; • Definition of Value; • Date of the Value Estimate; • Description of the Scope of the Appraisal; • Hypothetical Conditions; and • Other Limiting Conditions. Prepared for and property of Collier County Board of Commissioners. Page 13 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. IDENTIFICATION OF THE INTENDED USER(S) This appraisal is made for the exclusive use of Harry Henderson, SRA, Review Appraiser, Transportation Right-of-Way Group, 2885 South Horseshoe Drive, Naples, Florida 34104; and its use by others is strictly prohibited. This narrative report is made subject to the Assumptions and Limiting Conditions as listed in the Addendum to this report. IDENTIFICATION OF THE REAL ESTATE The parent tract of this appraisal assignment is an unimproved tract of land located on the north side of Golden Gate Boulevard E. between Everglades Boulevard and Desoto Boulevard in Collier County, Naples, Florida. The parent tract owners of record are listed on the 2016 Collier County Tax Roll as Kenneth G. Minzey, Kathryn M. Minzey, Thomas A. Minzey and Robert J. Minzey . The property is identified as Folio No. 40870440009 and S.T.R.A.P. No. 350500 118 34D08 in the Collier County Property Appraiser’s Office. PRIOR SERVICES USPAP requires if known prior to accepting an assignment, and/or if discovered at any time during the assignment, an appraiser must disclose to the client, and in the subsequent certification: • any current or prospective interest in the subject property or parties involved; and • any services regarding the subject property performed by the appraiser within the three year period immediately preceding acceptance of the assignment, as an appraiser or in any other capacity. The appraiser signing this report has performed no 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. IDENTIFICATION OF THE PROPERTY RIGHTS TO BE VALUED The valuation of real property includes both the physical real estate and the rights that one or more individuals or legal entities may hold or contemplate holding in the ownership or use of the land and improvements. An appraiser may estimate the value of a fee simple estate or a partial interest created by the severance or division of ownership rights. Special attention must be given to any limitations on ownership rights such as easements, encroachments, liens, or leases. Financing must also be considered because fee simple estates, leasehold estates, and leased fee estates can all be mortgaged. The specific rights to be valued in the probable or actual financing involved must be ascertained at the start of the assignment because the complexity of these rights and terms will determine the procedures, skills, and time required to complete the assignment. In this particular appraisal assignment, the appraiser has been requested by the client to estimate the “as is” market value of the undivided fee simple interest in the parent tract before and after the proposed acquisition. Fee simple ownership is an absolute ownership unencumbered by any other interest or estate; subject only to the limitations of eminent domain, escheat, police power and taxation. Eminent domain is the right of the sovereign government to take private property for public use upon the payment of just compensation. Escheat is the right to have titular ownership of a property returned to the state if the owner dies and leaves no will and no known or ascertainable heirs. Police power is the right to regulate property so that the public safety, health, morals, and general welfare are protected. Examples of this power are Prepared for and property of Collier County Board of Commissioners. Page 14 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. zoning ordinances, building codes, air and land traffic regulations, and sanitary regulations. Taxation is the right to take money from owners of valuable goods, products, and rights. In addition to government restrictions on property, legal private agreements may also impose limitations. One type is a restriction inserted in a deed. Other private restrictions include certain easements, rights of way, and party wall agreements. The proposed property rights to be acquired involve a proposed perpetual, non-exclusive, road right-of-way, drainage, utilities easement. INTENDED USE OR FUNCTION OF THE APPRAISAL The intended use of an appraisal (formerly known as the Function of the Appraisal), is the manner in which a client employs the information contained in an appraisal report. Because an appraisal provides the basis for a decision regarding real property, the nature of the decision affects the character of the assignment in the appraisal report. For example, a value estimate may be needed to determine the price at which to buy or sell a property, the amount of a loan, a basis for taxation, terms of a lease, value of real property assets and financial statements, or a basis for just compensation and eminent domain proceedings. The intended use of the appraisal is understood to be for use as a basis of value for determining full compensation to the property owner for the loss of the real estate resulting from the property rights and improvements (if any) which are proposed to be acquired, including all diminution in value to the remainder land and improvements (if any) which can be attributed to the use of, or activity upon, the proposed perpetual, non-exclusive, road right-of-way, drainage, utilities easement (Parcel No. 471 RDUE). DEFINITION OF THE VALUE ESTIMATE(S) The purpose of any valuation process is to estimate the value of a real property interest. Therefore, the specified type of value and the interests involved must be clearly defined. Types of appraised value include market value, fair value, use value, going concern value, investment value, assessed value, and insurable value. As previously noted in the letter of transmittal, the type of value to be estimated in this particular appraisal assignment has been identified as the market value of the undivided fee simple interest in the parent tract before and after the taking. Market value is defined as “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: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and Prepared for and property of Collier County Board of Commissioners. Page 15 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.” Source: (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994) DATE OF THE VALUE ESTIMATE(S) The date of a value estimate must be specified because the forces that influence real property value are constantly changing. Although conditions observed at the time of the appraisal may persist for a considerable time after that date, an estimate of value is considered valid only for the exact date specified. Market value is generally seen as a reflection of market participant’s perceptions of future economic conditions and the perceptions are based on market evidence at a specific point in time. Value influences reflect economic conditions at a particular time and sudden changes in business and real estate markets can dramatically influence value. As previously identified, the appraiser is estimating the market value of the undivided fee simple interest in the parent tract before and after the taking. The effective date of the appraisal is January 11, 2017 (Date of the Most Recent Inspection). R. Alan Wilcox, MAI, SRA, inspected the parent tract. DESCRIPTION OF THE SCOPE OF THE APPRAISAL The scope of the appraisal refers to the extent of the process in which data are collected, confirmed, and reported. The scope is described to protect third parties whose reliance on an appraisal report may be affected by this information. An appraiser determines the extent of the work and of the report based on the significance of the appraisal problem. The appraiser is responsible for describing the scope of the appraisal in the report. Standards Rule 2-2(a)(vii), USPAP-2016-2017, requires the appraiser to “summarize the scope of work used to develop the appraisal”. In this regard, pertinent to the extent to which the parent tract and the remainder property have been identified and inspected, the type of market data researched, and the type and extent of the analysis applied, the reader is advised to refer to the appropriate portion of this report. • Data Collection: The data utilized in this assignment was collected through a thorough search of the public records of Collier County, Florida, interviews of local real estate brokers and property owners, and information obtained from this firm’s appraisal office. Furthermore, Patricia A. Wilcox, SRA, assisted in the collection of market data. • Data Confirmation: The appraiser signing this report has independently confirmed the market data that has been utilized in the development of the value estimates reported herein. Furthermore, the appraiser signing this report has also physically inspected this data. • Data Reporting: The data utilized in this report has been presented in a data sheet format for the reader’s review. Additional information has been retained in the permanent files of the appraiser and is available upon request by the client. HYPOTHETICAL CONDITIONS To estimate the compensation due the property owner, the appraiser has estimated the “as is” market value of the undivided fee simple interest in the parent tract before and after the proposed acquisition. Accordingly, as of the date of value, January 11, 2017, the appraiser has utilized the hypothetical condition assuming the proposed acquisition and the Prepared for and property of Collier County Board of Commissioners. Page 16 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. proposed roadway improvements have been completed. A hypothetical condition is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the parent tract; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment only if: • Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; • Use of the hypothetical condition results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions. OTHER LIMITING CONDITIONS Statements of limiting conditions are included in a report for the appraiser’s protection, and to inform and protect the client and other users of the report. For a complete copy of the typical Assumptions and Limiting Conditions, which govern the appraisal process, please refer to the Addendum section of this report. Prepared for and property of Collier County Board of Commissioners. Page 17 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Photographs of the Parent Tract Prepared for and property of Collier County Board of Commissioners. Page 18 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parcel No. 471 RDUE Photos Taken by: R. Alan Wilcox, MAI, SRA View looking southwesterly across Golden Gate Boulevard E. showing the parent tract located on the south side of Golden Gate Boulevard E. between Everglades Boulevard and Desoto Boulevard in Collier County, Naples, Florida. View looking southeasterly across Golden Gate Boulevard E. showing the parent tract located on the south side of Golden Gate Boulevard E. between Everglades Boulevard and Desoto Boulevard. Prepared for and property of Collier County Board of Commissioners. Page 19 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parcel No. 471 RDUE Photos Taken by: R. Alan Wilcox, MAI, SRA View looking westerly along Golden Gate Boulevard E. showing the parent tract located on the south side of Golden Gate Boulevard E. between Everglades Boulevard and Desoto Boulevard. View looking easterly along Golden Gate Boulevard E. showing the parent tract located on the south side of Golden Gate Boulevard E. between Everglades Boulevard and Desoto Boulevard. Prepared for and property of Collier County Board of Commissioners. Page 20 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parcel No. 471 RDUE Photos Taken by: R. Alan Wilcox, MAI, SRA View looking southerly across Golden Gate Boulevard E. showing the parent tract’s entrance drive located on the south side of Golden Gate Boulevard E. View looking southerly showing the parent tract’s single family home located on the south side of Golden Gate Boulevard E. Prepared for and property of Collier County Board of Commissioners. Page 21 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parcel No. 471 RDUE Photos Taken by: R. Alan Wilcox, MAI, SRA View looking southwesterly from just east of the boundary of the parent tract showing the acquisition area located along the southerly right-of-way of Golden Gate Boulevard E. View looking southeasterly from just west of the boundary of the parent tract showing the acquisition area located along the southerly right-of-way of Golden Gate Boulevard E. Prepared for and property of Collier County Board of Commissioners. Page 22 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Valuation Analysis of the Parent Tract Prepared for and property of Collier County Board of Commissioners. Page 23 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. OWNER OF RECORD The parent tract owners of record are listed on the 2016 Collier County Tax Roll as Kenneth G. Minzey, Kathryn M. Minzey, Thomas A. Minzey and Robert J. Minzey whose mailing address is 2906 Macalpin Drive S., Palm Harbor, Florida 34684. LEGAL DESCRIPTION OF THE PARENT TRACT The following legal description is provided: The West 75 feet of the East 180 feet of Tract 118, Golden Gate Estates, Unit No. 80, according to the Plat thereof recorded in Plat Book 5, Page 18, of the Public Records of Collier County, Florida. REAL ESTATE ASSESSMENTS AND AD VALOREM TAXES The parent tract is assessed on the 2016 Collier County Tax Roll as an improved property with a total market value of $107,011, allocated $8,834 to the value of the land and $98,177 to the value of the improvements. The property has a total of exemptions of $10,858, resulting in a taxable value of $96,153. The 2016 taxes for the parent tract totaled $1,353.32, exclusive of any early payment discounts or late payment penalties. The property is identified as Folio No. 40870440009 and S.T.R.A.P. No. 350500 118 34D08 in the Collier County Property Appraiser’s Office. SALES AND MARKETING HISTORY OF THE PARENT TRACT There has been no arm’s length transactions involving the parent tract within three years of the date of value (January 11, 2017). Furthermore, the appraiser is not aware of any current listings or valid pending offers involving the parent tract. Prepared for and property of Collier County Board of Commissioners. Page 24 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Florida State and Collier County Map Prepared for and property of Collier County Board of Commissioners. Page 25 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parent Tract Local Area Map Prepared for and property of Collier County Board of Commissioners. Page 26 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. MARKET AREA DATA Definitions: The following definitions were obtained from The Dictionary of Real Estate Appraisal, Sixth Edition as published by the Appraisal Institute: 1. Market area is defined as “the geographic region from which a majority of demand comes and in which the majority of competition is located. Depending on the market, a market area may be further subdivided into components such as primary, secondary, and tertiary market areas, or the competitive market area may be distinguished from the general market area. 2. Neighborhood is defined as “a group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises. 3. Market area delineation is defined as the process of identifying the geographic area where a majority of competition is located and from which a majority of demand is drawn. 4. Neighborhood boundaries is defined as the physical limits of a neighborhood; may be delineated by natural, man-made, or geopolitical features. 5. Market analysis is defined as a process for examining the study of the supply and demand in a specific area for a specific type of property. 6. Neighborhood life cycle is defined as the typical, but not necessarily universal, four- stage cycle that describes the life pattern of neighborhoods and districts. 7. Real estate cycle is defined as the successive periods of expansion, peak, contraction, and trough that characterize activity in a real estate market. Business and real estate cycles do not generally move in tandem. Since real estate development and sales activity are especially responsive to a downward movement in interest rates, increased activity in real estate markets often heralds an economic recovery. Market Area Analysis: Social, economic, governmental, and environmental forces influence property values in the vicinity of the subject property. As a result, they affect the value of that property. Therefore, to conduct a thorough analysis, the appraiser must delineate the boundaries of the area of influence. Although physical boundaries may be drawn, the most important boundaries are those that influence property values. The area of influence, commonly called a neighborhood or market area, can be defined as a group of complementary land uses. To identify a market area’s boundaries, an appraiser examines the subject property’s surroundings. The investigation begins with the subject property and proceeds outward, identifying all relevant influences on the property’s value that can be attributed to the property’s location. Analyzing the market area helps to provide a framework, or context, in which the opinion of property value is developed. The appraiser identifies the area of influence and establishes potential limits within which the appraiser searches for data that can be used to apply the approaches to value. Market Area Delineation: A market area’s boundaries may be the physical area that exerts relevant influences on a subject property's value. The boundaries may coincide with changes in prevailing land use, occupant characteristics, or physical characteristics, such as structures, street patterns, terrain, vegetation, and lot sizes. Because changes in natural or physical Prepared for and property of Collier County Board of Commissioners. Page 27 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. features often coincide with the change from one market area to another, features such as transportation arteries (highways, major streets, railroads), bodies of water (rivers, lakes, streams), and changes in elevation (hills, mountains, cliffs, valleys) often constitute market area boundaries. The primary market area is defined geographically as the area in which a competitive property would have a similar market area identification and general location appeal. The primary market area, for purposes of this appraisal assignment, consists of those residential properties zoned (E), Estates District, according to the Collier County Land Development Code located along and near Golden Gate Boulevard east of Wilson Boulevard and west of Desoto Boulevard in Collier County, Florida. The secondary market area is defined economically to include those areas where a similarly zoned property would be considered by the same basic profile of prospective purchasers as generally competitive with the parent tract. The secondary market area, for purposes of this appraisal assignment, is defined as those residential properties zoned (E), Estates District, located in peripheral locations to the primary market area described above. Stages of a Market Area’s Life Cycle: A market area’s life cycle usually consists of the following stages: 1. Growth - a period during which the market area gains public favor and acceptance. 2. Stability - a period of equilibrium without marked gains or losses. 3. Decline - a period of diminishing demand. 4. Revitalization - a period of renewal, modernization, and increasing demand. Although the stages describe a market area’s evolution in a general way, they should not be overemphasized as providing guidelines to market area trends. Many market areas are stable for very long periods of time, and decline is not necessarily imminent in all older market areas. Unless caused by the advent of some specific external influence, for example, a new highway that changes traffic patterns, decline may be at a barely perceptible rate and is subject to interruption by changing use or revival of demand. Therefore, there is no definite life expectancy for a market area. Moreover, the stages are not always sequential. At any time in the cycle, major changes can occur which interrupt the order to the cycle's stages. For example, a market area that is in a stage of growth may decline precipitously rather than stabilize. The primary market area is considered to be in the growth stage of its life cycle, as evidenced by appreciating values, the planned improvements to the area’s infrastructure and the continued development of residential properties within the market area. The entire southwest Florida market area has suffered through the previous recession, with the collapse of the residential and commercial construction industries, the lack of market financing, and a high unemployment rate. Prior to the recession, the 2004 and 2005 Collier County real estate market experienced tremendous appreciation. This appreciation was facilitated by rapid growth and an over active speculative market. However, the residential bubble collapsed in 2006 and the commercial market collapsed in 2007. Dramatically lower values, higher vacancies, and lower rents all contributed to the collapse of the residential and commercial construction industry with limited demand for vacant sites. Accordingly, the number of bank foreclosures and bank influenced sales significantly affected pricing. Prepared for and property of Collier County Board of Commissioners. Page 28 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. In 2010 and 2011 prices began to stabilize and recently prices have begun to appreciate. Positive national economic growth and positive regional economic factors including climate, beaches, tourism, demographics, the regional airport, and the continued growth of Florida Gulf Coast University, steady job growth, and low mortgage rates have all contributed to this market recovery. General Primary Market Description: The Golden Gate Estates area began development in the early 1960’s. Based on the Collier County tax rolls, there are approximately 31,000 platted tracts of land located within the Golden Gate Estates area typically ranging in size from 1.14 acres to over 5 acres. Tracts smaller than 2.25 acres are considered to be legally non- conforming tracts. The Golden Gate Estates area is composed of two separate sub-markets, the Urban Estates area, which lies west of Collier Boulevard (CR 951), and the Rural Estates area, which lies east of Collier Boulevard (CR 951). The primary roadways that provide the main access to the immediately described primary market area include: • Golden Gate Boulevard; • Collier Boulevard (CR 951); • Wilson Boulevard; • Everglades Boulevard; and • Desoto Boulevard. Available utilities within the primary market area include telephone, electrical service and emergency services. Water must be typically provided by private well and wastewater must be typically disposed of by a private septic tank and drain field combination. Finally, the appraiser has included in the addendum of this report the “Quarterly Market Detail for the 3rd Quarter 2016 for Single Family Homes in Collier County” produced by Florida Realtors with data provided by Florida’s multiple listings services. Trends and Conclusions: In conclusion, recognizing the above favorable locational factors and the current growth stage of the primary market area as evidenced by appreciating values, the planned improvements to the area’s infrastructure and the continued development of residential properties within the market area, it is the appraiser’s opinion, that the primary market area should expect continued economic development into the foreseeable future. Prepared for and property of Collier County Board of Commissioners. Page 29 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parent Tract Aerial Map Prepared for and property of Collier County Board of Commissioners. Page 30 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parent Tract Plat Map Prepared for and property of Collier County Board of Commissioners. Page 31 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parent Tract Land Use Map Prepared for and property of Collier County Board of Commissioners. Page 32 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parent Tract Zoning Map Prepared for and property of Collier County Board of Commissioners. Page 33 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. SITE DATA Location: The parent tract is located on the south side of Golden Gate Boulevard E. between Everglades Boulevard and Desoto Boulevard in Collier County, Naples, Florida. The parent tract has a street address of 4030 Golden Gate Boulevard E., Naples, Florida 34120. Size and Shape: The parent tract contains 1.17 acres of gross land area and is rectangular in shape. Tracts that are smaller than 2.25 acres are considered to be legally non-conforming tracts. Accordingly, the parent tract is considered to be a legally non-conforming tract. Specifically, the parent tract has a northern property line along Golden Gate Boulevard E. that measures 75 feet; with a depth there from along the eastern and western property lines that measure 680 feet; and a rear, southern property line that measures 75 feet. Roadway Frontage: The parent tract benefits from 75 feet of frontage along the southerly right-of-way of Golden Gate Boulevard E. Golden Gate Boulevard E. is an arterial, undivided, two lane, paved roadway. Available Utilities: The available utilities to the parent tract include telephone, electrical service and emergency services. Drinking water would be typically provided by a private well. Wastewater would be typically disposed of by a private septic tank and drain field combination. Exotic Vegetation and Wildlife: Current county, state, and federal regulations have considered certain areas jurisdictional based upon vegetation classifications and/or wildlife species. The appraiser is not an expert at vegetation groups or wildlife identification and has not been provided a report prepared by such an expert. The parent tract is presumed to be unencumbered by current county, state, and federal regulations related to certain areas being considered to be jurisdictional based upon vegetation classifications and/or wildlife species. Environmental Liabilities: Unless otherwise stated above or elsewhere in this report, the existence of hazardous substances, including, without limitation, asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraiser become aware of such during the property inspection. The appraiser is not qualified to test such substance or conditions. If the presence of such substances, such as asbestos, urea, formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required to discover them. The parent tract is assumed to be unaffected by environmental liabilities. However, the reader is advised that no environmental studies of the parent tract have been provided to the appraiser. Elevation and Topography: The parent tract is a level tract covered with vegetation that is partially cleared. The parent tract is situated within an area designated Flood Zone AH in the Federal Emergency Management Flood Rate Maps, Map Number 12021C0435H, and dated May 16, 2012. Flood Zone AH includes areas subject to inundation by 1-percent-annual-chance shallow flooding (usually areas of ponding) where average depths are between one and three feet. Base Flood Elevations (BFEs) derived from detailed hydraulic analyses are shown in this zone. Mandatory flood insurance purchase requirements and floodplain management standards apply. Predominant Soil Classification(s): Based on the appraiser's review of the United States Department of Agriculture’s Soil Survey of Collier County, Florida, the parent tract is located in an area with predominant soil types that includes No. 4, Chobee, Limestone substratum, and Prepared for and property of Collier County Board of Commissioners. Page 34 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Dania mucks, depressional; and No. 21, Boca fine sand. It is important to bring to the reader’s attention that the information reported above related to the predominant soil group(s) on or near the parent tract, are general in nature, and may or may not apply specifically to the soil group(s) located on the parent tract. Easements and Restrictive Covenants: The parent tract is encumbered by a 50-foot wide road right-of-way easement along the northern property line along the property’s existing frontage to Golden Gate Boulevard E. The appraiser is not aware of any other easements or restrictive covenants which might adversely affect the market value and development of the parent tract before the taking. However, the reader is advised that the appraiser has not been provided any title information. Prepared for and property of Collier County Board of Commissioners. Page 35 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. COLLIER COUNTY FUTURE LAND USE DESIGNATION The parent tract is designated Estates Designation on the Collier County Future Land Use Map, within the Residential Estates Sub-district, and is further regulated by the Golden Gate Area Master Plan. The geographic framework for growth in Collier County is established by the Future Land Use Element. As such, the Element is central to planning for: protection and management of natural resources; public facilities; coastal and rural development; and, housing and community character and design. The Element is also important to the County’s system of land development regulations and to private property rights. The purpose of the Future Land Use Element is to guide decision-making by Collier County on regulatory, financial and programmatic matters pertaining to land use. Most directly, this Element controls the location, type, intensity and timing of new or revised uses of land. The land use strategy in this Element is closely coordinated with a strategy for provision of public facilities as found in the Capital Improvements and Public Facility Elements of the Comprehensive Plan, and with the strategies to protect and conserve natural resources as found in the Conservation and Coastal Management Element. The Golden Gate Area was previously subject to the regulations outlined in the County’s Growth Management Plan. However, in 1991, the unique characteristics of the area resulted in adoption of a separate Master Plan for Golden Gate. This Master Plan became a separate Element of the County’s Growth Management Plan and supersedes Objective 1, Policy 1.1, and Policy 1.3 of the County-Wide Future Land Use Element. All other Goals, Objectives, and Policies contained in the Future Land Use Element and all other Elements are applicable. In addition, the Golden Gate Area Future Land Use Map will be used instead of the County-Wide Future Land Use Map. The Estates Designation is characterized by low-density semi-rural residential lots with limited opportunities for other land uses. Typical lots are 2.25 acres in size. However, there are some legal non-conforming lots as small as 1.14 acres. As previously stated, the parent tract contains 1.17 acres of gross land area and is considered to be a legally non-conforming tract. Intensifying residential density shall not be permitted. The Estates Designation also accommodates future non-residential uses including: • Conditional uses and essential services as defined in the Land Development Code; • Parks, open space and recreational uses; • Group Housing shall be permitted subject to the definitions and regulations as outlined in the Collier County Land Development Code (Ordinance 91-102, adopted October 30, 1991 and consistent with locational requirements in Florida Statutes (Chapter 419.01 F.S.). • Schools and school facilities in the Estates Designation north of I-75, and where feasible and mutually acceptable, co-locate schools with other public facilities, such as parks, libraries and community centers to the extent possible. • Group Housing includes the following type facilities: o Family Care Facility, if occupied by not more than six (6) persons shall be permitted in residential areas; o Group Care Facility; o Care Units; o Adult Congregate Living Facilities; and o Nursing Homes. Prepared for and property of Collier County Board of Commissioners. Page 36 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. ZONING CLASSIFICATION The parent tract is zoned (E), Estates District, according to the Collier County Land Development Code. The purpose and intent of the Estates District is to provide lands for low- density residential development in a semi-rural to rural environment, with limited agricultural activities. In addition to low-density residential development with limited agricultural activities, the Estates District is also designed to accommodate as conditional uses, development that provides services for and is compatible with the low-density residential, semi-rural and rural character of the Estates District. The Estates District corresponds to and implements the estates land use designation on the future land use map of the Collier County growth management plan, although in limited instances, it may occur outside of the estates land use designation. The maximum density permissible in the Estates District shall be consistent with and not exceed the density permissible or permitted under the Estates District of the future land use element of the growth management plan or as provided under the Golden Gate Master Plan. Permitted uses under this zoning classification are as follows: • Single-family dwelling; and • Family care facilities, subject to section 2.6.26. • Essential services, as set forth in section 2.6.9.1. Uses accessory to permitted uses are as follows: • Uses and structures that are accessory and incidental to uses permitted as of right in the Estates District; • Field crops raised for the consumption by persons residing on the premises; • Keeping of fowl or poultry, not to exceed 25 in total number subject to specific conditions; • Keeping of horses and livestock (except for hogs), not to exceed two such animals for each acre and subject to specific conditions; • One guesthouse, subject to section 2.6.14; • Recreational facilities that serve as an integral part of a residential development and have been designated, reviewed and approved on a site development plan or preliminary subdivision plat. These facilities may include but are not limited to golf course, clubhouse, community center building and tennis facilities, parks, playgrounds and playfields; and • Excavation and related processing and production that are subject to specific conditions. Conditional uses in the Estates District that are subject to the standards and procedures established in division 2.74 are as follows: • Churches and other places of worship; • Social and fraternal organizations; • Child care centers and adult day care centers; • Schools, public and private; and • Group care facilities (category I); care units, nursing homes, assisted living facilities, and continuing care retirement communities; all subject to section 2.6.26. • Category II group care facilities and care units, subject to section 2.6.26 only when tenancy of the person or persons under care would not: o Constitute a direct threat to the health or safety of other individuals; o Result in substantial physical damage to the property of others; or Prepared for and property of Collier County Board of Commissioners. Page 37 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. o Result in the housing of individuals who are engaged in the current, illegal use of or addiction to a controlled substance. • Extraction or earthmining, and related processing and production not incidental to the development of the property subject to the following criteria: o The site area shall not exceed 20 acres. • Essential services, as set forth in section 1.6.9.2. The following dimensional standards apply to all permitted, accessory, and conditional uses in the Estates District: Minimum Lot Size: Two and one-fourth (2 1/4) Acres Minimum Yard Requirements: Front yard, feet: 75 Side yard, feet: 30 Rear yard, feet: 75 Minimum Yard Requirements for nonconforming lots of record: Front yard, feet: One full depth setback for corner lots along the shorter lot line along the street. Setback along longer lot line may be reduced by up to 50 percent. See definition of yard, front for lots that do not conform to a minimum lot width or area requirements. Side yards, feet: 10% of lot width with max. of 30 Rear yard, feet: 75 Minimum Lot Width, feet: 150 Minimum Floor Area: 1,000 SF Maximum Height: 30 Maximum density: One dwelling unit per 2 ¼ acres Minimum off-street parking: As required in division 2.3 Landscaping: As required in division 2.4 Signs: As required in division 2.5 As previously stated, the parent tract contains 1.17 acres of gross land area and is considered to be a legally non-conforming tract. Prepared for and property of Collier County Board of Commissioners. Page 38 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. IMPROVEMENT DATA The parent tract is improved with a single-family home and associated site improvements. The parent tract single-family home is setback approximately 150 feet from the existing right-of-way of Golden Gate Boulevard E. before the taking. After the taking, the remainder property single- family home is setback approximately 101 feet from the new right-of-way of Golden Gate Boulevard E. The setback of the remainder property’s single-family home exceeds the minimum zoning requirement and is within typical market setback standards. The only significant improvements located within the proposed acquisition area consist of site improvements. Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. Prepared for and property of Collier County Board of Commissioners. Page 39 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. HIGHEST AND BEST USE Highest and best use is defined in The Dictionary of Real Estate Appraisal, Sixth Edition, as published by the Appraisal Institute as “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.” Implied is that the determination of highest and best use results from the appraiser's judgment and analytical skill, i.e., that the use determined from analysis represents an opinion, not a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of most probable selling price (market value) another appropriate term to reflect highest and best use would be most probable. Highest and Best Use Analysis "As Vacant": This part of the highest and best use analysis assumes that a parcel of land is vacant or that it can be made vacant through the demolition of any improvements. The question to be answered in this part of the highest and best use analysis is: if the land is (or was) vacant, what use should be made of it? That is, what type of building or other improvement (if any) should be constructed on the land? The purpose of estimating the highest and best use for land or a site is to identify the use that causes the land to have value. This identification also helps to identify comparable properties. For highest and best use of land as vacant, a use must meet four criteria. The four criteria are (1) legally permissible, (2) physically possible (3) financially feasible, and (4) maximally productive. In summary, the parent tract is legally, physically and financially capable of supporting potential single-family residential development. Accordingly, it is the appraisers’ opinion that the highest and best use of the parent tract “as though vacant” is estimated to be potential single-family residential development. Highest and Best Use Analysis "As Improved": The parent tract is improved with a single- family home and associated site improvements. The highest and best use of the parent tract “as improved” is estimated to be the continued use of the existing improvements as a single- family home and associated site improvements. The only significant improvements located within the proposed acquisition area consist of site improvements. Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. Prepared for and property of Collier County Board of Commissioners. Page 40 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. The Appraisal Process There are three standard approaches to property valuation: 1. Cost Approach 2. Sales Comparison Approach 3. Income Capitalization Approach The Cost Approach requires the estimation of the reproduction cost new of the subject improvements on current market price levels for labor and materials. The second component is the estimate of accrued depreciation, or diminished utility, which is computed and subtracted from the reproduction cost new to obtain an estimate of the depreciated reproduction costs of the subject improvements. Finally, the land value, as obtained from a market comparison approach, is added to obtain a value of the property as a whole. The underlying premise in the Cost Approach is the theory of substitution, which states that an informed purchaser would pay no more for a property than would be required to substitute of equal utility. This approach is most applicable when the improvements are new and represent the highest and best use of the subject, as though vacant. Conversely, when the improvements are old and adequate land sales are not available, the Cost Approach tends to lose credence. The Sales Comparison Approach, or Direct Comparison Approach, utilizes the past actions of buyers and sellers for a similar class of property in a simulation model to project the most probable selling price. This approach is also based upon the theory of substitution as well as the concept of anticipation and contribution. This approach is most applicable when there has been a sufficient amount of market transactions of similar properties to ascertain patterns of behavior of the market participants. This valuation can only be as accurate as the quality of information permits. If the comparative properties are quite dissimilar to the parent tract and large adjustments are required, then this approach loses credibility. The Income Approach is the valuation process which measures value as a function of the present worth of the property's net income capacity. This approach is based upon the concept of anticipation, contribution, and increasing and decreasing returns. This approach requires market oriented income and expense data as well as current mortgage and equity rates (income and yield). This approach is generally considered most reliable in the valuation of commercial properties, as it best represents investor’s and lender’s expectations and actions in the market. Each of the above three approaches will usually indicate different values. After all of the factors of the three approaches have been carefully weighted, the indications of value are correlated to arrive at a final estimate of value. Prepared for and property of Collier County Board of Commissioners. Page 41 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Identification of the Applicable Valuation Procedure(s): As previously stated, the only significant improvements located within the proposed acquisition area consist of site improvements. Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. Therefore, it is the appraiser’s opinion that the Market Approach to Value (Sales Comparison Approach to Value) is the only applicable approach for this valuation assignment. The Sales Comparison Approach to Value is considered applicable since an adequate number of similar unimproved sales have recently occurred within the market area that may be utilized by the appraiser in predicting typical buyer and seller behavior. The market data within the Sales Comparison Approach to Value is considered sufficient and adequate to provide a reliable value conclusion. The Cost Approach to Value and the Income Capitalization Approach to Val ue are not considered applicable for this appraisal assignment due to the fact that the parent tract is being valued as if vacant land. Prepared for and property of Collier County Board of Commissioners. Page 42 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. The Sales Comparison Approach to Value INTRODUCTION In the Sales Comparison Approach, market value is estimated by comparing the parent tract to similar properties that have been sold recently or for which offers to purchase have been made. A major premise of the Sales Comparison Approach is that the market value of a property is directly related to the prices of comparable, competitive properties. A comparative analysis in the Sales Comparison Approach focuses on differences in legal, physical, locational, and economic characteristics of similar properties and the parent tract. Differences in the real property rights conveyed, the dates of sale, the motivations of buyers and sellers, and the financing arrangements for each sales transaction can also account for variations in prices. The Sales Comparison Approach is applicable to all types of real property interest when there are sufficient, recent, and reliable transactions to indicate value patterns in the market. For property types that are bought and sold regularly, the Sales Comparison Approach often provides a reliable indication of market value. When data is available, this is the most direct and systematic approach to value. When the number of market transactions is insufficient, the applicability of the Sales Comparison Approach may be limited. For example, the Sales Comparison Approach is rarely applied to a special purpose property because few similar properties may be sold in a given market. To value such properties, the Cost or Income Capitalization Approach may be more appropriate and reliable. Nevertheless, data on sales and offers for similar properties may establish broad limits for the value of the property being appraised. When economic conditions are changing rapidly, the usefulness of the Sales Comparison Approach may be limited. For example, changes in income tax laws and zoning regulations, the availability in cost of financing, or the supply of similar properties may cause the sale prices of comparable properties with similar uses to be unreliable indicators of the value of the parent tract. If economic changes occur abruptly, an appraiser may have difficulty finding a reliable market basis on which to make adjustments for these changes. Rapid inflation or deflation can also jeopardize the reliability of an appraiser’s adjustments and limit the usefulness of the Sales Comparison Approach. To apply the Sales Comparison Approach, an appraiser follows a systematic procedure: A. Research the market to obtain information on sales transactions, listings, and offerings to purchase properties similar to the parent tract. B. Verify the information by confirming that the data obtained are factually accurate and that the transactions reflect arm's length market considerations. C. Select relevant units of comparison (e.g., dollars per acre, per square foot, or per income multiplier) and develop a comparative analysis for each unit. D. Compare the parent tract and comparable sale properties using the elements of comparison and adjust the sale price of each comparable appropriately or eliminate the property as a comparable. E. Reconcile the various value indications produced from the analysis of comparables into a single value indication or a range of values. An imprecise market may indicate a range of values. Prepared for and property of Collier County Board of Commissioners. Page 43 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. PRINCIPLES OF THE SALES COMPARISON APPROACH TO VALUE The application of the Sales Comparison Approach is based on, and consistent with, the operation of value influences and appraisal principles. The following appraisal principles are generally considered most relevant to the Sales Comparison Approach: A. Supply and Demand: Property prices are determined by the market and they result from negotiations between buyers and sellers. Buyers constitute market demand and the properties offered for sale constitute the supply. If the demand for a particular type of property is high, prices tend to increase; if demand is low, prices tend to decline. Shifts in the supply of improved properties frequently lag behind shifts in demand because supply is created by time-consuming construction, while demand can change rapidly. B. Substitution: As applied in the Sales Comparison Approach, the principle of substitution holds that the value of a property tends to be set by the price that would be paid to acquire a substitute property of similar utility and desirability. This principle implies that the reliability of the Sales Comparison Approach is diminished if substitute properties are not available in the market. C. Balance: The forces of supply and demand tend toward equilibrium, or balance, in the market, but absolute equilibrium is almost never attained. The balance between supply and demand continually changes. Due to shifts in population, purchasing power, and consumer tastes and preferences, demand varies greatly over time. The construction of new buildings and the demolition of old ones cause supply to vary as well. Another aspect of this principle is that the relationship between land and improvements and the relationship between a property and its environment must both be in balance for a property to reflect its actual market value. If, for example, a property has too much land in relation to its improvements or too many expensive amenities for its location, an imbalance is created. Appraisers must watch for imbalances in the market and within properties because they can cause the market to impute different prices to otherwise comparable properties. D. Externalities: Positive and negative external forces affect all types of property. A period of economic development or economic depression can often influence property values. An appraiser analyzes the market area of a parent tract to identity all significant external influences. To a great extent, these external forces are reflected in the adjustments made for property location. Two properties with identical physical characteristics may have quite different market values if one of the properties has less attractive surroundings. Factors such as the condition and lighting of streets, the convenience of transportation facilities, the adequacy of police protection, and the proximity to shopping and restaurant facilities vary with location. They must be considered by the appraiser to determine if they have a positive or negative effect on the value of the property being appraised. PRESENTATION OF THE MARKET DATA: The appraiser has reviewed economic data related to a number of sales and listings of comparable unimproved properties located within the primary and secondary market areas. Based on this research, the appraiser has assembled four competitive unimproved sales zoned E, Estates District, transacted between August 2016 and December 2016 as being most comparable to the parent tract. The data sheets for each of the sales used to estimate the value of the parent tract are presented in the addendum of this report. Prepared for and property of Collier County Board of Commissioners. Page 44 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Land Sales Map Prepared for and property of Collier County Board of Commissioners. Page 45 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. APPLICATION OF THE MARKET DATA As previously stated, the appraiser has selected four competitive unimproved sales zoned E, Estates District, transacted between August 2016 and December 2016 as being most comparable to the parent tract. All sales have been compared to the parent tract and adjusted for significant differences. Buyers, sellers, and active real estate agents have reported that competitive unimproved properties within the market area are typically purchased based on a price per acre of gross land area unit of value. Furthermore, the appraiser has applied the proper sequence of adjustments including the following order: property rights conveyed; financing; conditions of sale (motivation); market conditions (time); and other significant locational and physical characteristics. The sales comparison grid is presented on the following page: Prepared for and property of Collier County Board of Commissioners. Page 46 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parent Sale Sale Sale Sale Element of Comparison Tract No. 1 No. 2 No. 3 No. 4 Date of Value/Sale Jan-2017 Dec-2016 Nov-2016 Oct-2016 Aug-2016 Location South side of North side of West side of North side of West side of Golden Gate Blvd. E.12th Ave. NE 20th St. SE 10th Ave. NE Everglades Blvd. N. Size (Acres)1.17 1.59 2.73 1.14 1.64 Roadway Frontage Golden Gate Blvd. E.12th Ave. NE 20th St. SE 10th Ave. NE Everglades Blvd. N. Land Use Designation Estates Estates Estates Estates Estates Zoning Estates Estates Estates Estates Estates Utilities Limited Limited Limited Limited Limited Sales Price NA $35,000 $57,500 $29,000 $30,000 Sales Price (Per Acre)NA $22,013 $21,062 $25,439 $18,293 Transaction Adjustments Property Rights Conveyed $0 $0 $0 $0 Financing $0 $0 $0 $0 Conditions of Sale (Motivation)$0 $0 $0 $0 Market Conditions (Time)$400 $1,200 $900 $1,500 Adjusted Price $35,400 $58,700 $29,900 $31,500 Adjusted Price (Per Acre)$22,264 $21,502 $26,228 $19,207 Additional Adjustments Location 0.00%0.00%0.00%0.00% Roadway Frontage -10.00%-10.00%-10.00%0.00% Size 0.00%0.00%0.00%0.00% Land Use/Zoning 0.00%0.00%0.00%0.00% Utilities 0.00%0.00%0.00%0.00% Net Percentage Adjustment -10.00%-10.00%-10.00%0.00% Adjusted Price (Per Acre)$20,038 $19,352 $23,605 $19,207 Sales Comparison Grid - Land Sales: Prepared for and property of Collier County Board of Commissioners. Page 47 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Explanation of Adjustments: The following explanations of adjustments are presented: • Adjustments for Property Rights Conveyed, Financing and Conditions of Sale (Motivation): All sales utilized in direct comparison to the parent tract conveyed property rights involving a fee simple estate and involved market financing or were all cash to seller transactions. Also, all sales were verified to be typically motivated arm’s length transactions. Accordingly, no adjustments were made for these three elements of comparison. • Adjustments for Marketing Conditions (Time): The date of sale identifies the market conditions under which the comparable sale occurred. Changes in market conditions can be caused by inflation, deflation, changes in supply and demand, and other factors. Although the adjustment for market conditions is sometimes referred to as a "time adjustment", the passing of time is not the cause of the adjustment, but rather, the market conditions that may or may not have changed over the time period analyzed. Changes in market conditions are usually measured as a percentage of a previous price. An analysis of a resale of the sale property, or two (2) paired sales considered very similar, can provide an indication of the rate of price change. The appraiser has interviewed numerous buyers and sellers and real estate brokers, who indicated market appreciation of property values since the date of the oldest sale (August 2016). As previously reported in the market area analysis, the primary market area is considered to be in the growth stage of its life cycle, as evidenced by appreciating values, the planned improvements to the area’s infrastructure and the continued development of residential properties within the market area. The appraiser has utilized, as most appropriate, a 12.0% annual adjustment or a positive 1.0% per month adjustment to the previously adjusted sales prices for market conditions (time) for the time frame between the oldest sale (August 2016) and the date of appraisal (January 11, 2017). It should be understood that this market conditions adjustment (time) is made to the “adjusted” sales prices (after adjustments for property rights conveyed, financing and conditions of sale (motivation), if any. The following market conditions (time) adjustment grid is provided on the next page: Prepared for and property of Collier County Board of Commissioners. Page 48 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Sale Sale Sale Sale No. 1 No. 2 No. 3 No. 4 Date of Value Jan-2017 Jan-2017 Jan-2017 Jan-2017 Date of Sale Dec-2016 Nov-2016 Oct-2016 Aug-2016 No. of Months Diff.1 2 3 5 (X) Time Adj. Per Mo.1.00%1.00%1.00%1.00% Time Adj. Factor 0.010 0.020 0.030 0.050 Sales Price $35,000 $57,500 $29,000 $30,000 Adjustments:$0 $0 $0 $0 Adjusted Sales Price $35,000 $57,500 $29,000 $30,000 (X) Time Adj. Factor 0.010 0.020 0.030 0.050 Indicated Time Adj.$350 $1,150 $870 $1,500 Rounded $400 $1,200 $900 $1,500 Market Conditions (Time) Adjustment Grid: • Adjustments for Location: All sales are competitive vacant residential sites located in the primary Golden Gate Estates market area. Accordingly, all sales were considered to have a similar overall location. However, the appraiser is aware that land sales located furthest west toward Wilson Boulevard sell for greater prices per gross acre as compared to land sales located furthest east. No specific location adjustment was made to any sales. However, the specific locational characteristics of each sale are considered in the appraiser’s final reconciliation of value. • Adjustments for Road Frontage: The parent tract has road frontage along the south side of Golden Gate Boulevard E. Golden Gate Boulevard E. is an arterial, undivided, two lane, paved roadway. Sale No. 4 has similar road frontage along a busy roadway. Therefore, no adjustment was made for this sale for this element of comparison. Finally, Sale Nos. 1, 2 and 3 benefit from favorable road frontages along nearby less travelled interior streets connecting to Golden Gate Boulevard E. Accordingly, these three sales were given a negative 10% adjustment for superior road frontage. • Adjustments for Size: All sales range in size from 1.14 to 2.73 acres, as compared to the parent tract’s size of 1.17 acres. For many sale properties, sales of significant larger size will typically sell for a lower unit value, as compared to sales of smaller size. However, based on the analysis of the four land sales utilized, no size adjustment was considered necessary. • Adjustments for Land Use/Zoning and Utilities: All sales have similar land use designations, zoning classifications and available utilities. Accordingly, no adjustments were made for these elements of comparisons. DISCUSSION OF SALES: • Unimproved Land Sale No. 1 contains 1.59 acres of gross land area and is a December 2016 transaction. Unimproved Land Sale No. 1 is located on the north side of 12th Avenue NE approximately 0.60 miles east of Everglades Boulevard N., Collier County, Naples, Florida. Unimproved Land Sale No. 1 benefits from frontage along the Prepared for and property of Collier County Board of Commissioners. Page 49 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. northerly right-of-way of 12th Avenue NE. Available utilities to the sale property include telephone, electrical service and emergency services. Drinking water is typically provided by private well. Wastewater is typically disposed of by a private septic tank and drain field combination. Sale No. 1 has a future land use designation of Estates and is zoned Estates by Collier County. Unimproved Sale No. 1 is encumbered by a 30-foot wide road right-of-way easement along the southern property line and along the property’s existing frontage to 12th Avenue NE. Verification of this sale indicated that at the time of sale, the property did not include any significant contributory improvements. Unimproved Land Sale No. 1 was adjusted for differences in market conditions (time) and superior road frontage. Land Sale No. 1 provided an indicated adjusted value of $20,038 per acre. • Unimproved Land Sale No. 2 contains 2.73 acres of gross land area and is a November 2016 transaction. Unimproved Land Sale No. 2 is located on the west side of 20th Street SE approximately 0.15 miles south of Golden Gate Boulevard E. Collier County, Naples, Florida. Unimproved Land Sale No. 2 benefits from frontage along the westerly right-of-way of 20th Street SE. Available utilities to the sale property include telephone, electrical service and emergency services. Drinking water is typically provided by private well. Wastewater is typically disposed of by a private septic tank and drain field combination. Sale No. 2 has a future land use designation of Estates and is zoned Estates by Collier County. Unimproved Sale No. 2 is encumbered by a 30-foot wide road right-of-way easement along the eastern property line and along the property’s existing frontage to 20th Street SE. Verification of this sale indicated that at the time of sale, the property did not include any significant contributory improvements. Unimproved Land Sale No. 2 was adjusted for differences in market conditions (time) and superior road frontage. Land Sale No. 2 provided an indicated adjusted value of $19,352 per acre. • Unimproved Land Sale No. 3 contains 1.14 acres of gross land area and is an October 2016 transaction. Unimproved Land Sale No. 3 is located on the north side of 10th Avenue NE approximately 0.90 miles east of Everglades Boulevard N., Collier County, Naples, Florida. Unimproved Land Sale No. 3 benefits from frontage along the northerly right-of-way of 10th Avenue NE. Available utilities to the sale property include telephone, electrical service and emergency services. Drinking water is typically provided by private well. Wastewater is typically disposed of by a private septic tank and drain field combination. Sale No. 3 has a future land use designation of Estates and is zoned Estates by Collier County. Unimproved Sale No. 3 is encumbered by a 30-foot wide road right-of-way easement along the southern property line and along the property’s existing frontage to 10th Avenue NE. Verification of this sale indicated that at the time of sale, the property did not include any significant contributory improvements. Unimproved Land Sale No. 3 was adjusted for differences in market conditions (time) and superior road frontage. Land Sale No. 3 provided an indicated adjusted value of $23,605 per acre. • Unimproved Land Sale No. 4 contains 1.64 acres of gross land area and is an August 2016 transaction. Unimproved Land Sale No. 4 is located on the west side of Everglades Boulevard N. between 14th Avenue NE and 16th Avenue NE, Collier County, Naples, Florida. Unimproved Land Sale No. 4 benefits from frontage along the westerly right-of-way of Everglades Boulevard N. Available utilities to the sale property include telephone, electrical service and emergency services. Drinking water is typically provided by private well. Wastewater is typically disposed of by a private septic tank and drain field combination. Sale No. 4 has a future land use designation of Estates and is Prepared for and property of Collier County Board of Commissioners. Page 50 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. zoned Estates by Collier County. Unimproved Sale No. 4 is encumbered by a 50-foot wide road right-of-way easement along the eastern property line and along the property’s existing frontage to Everglades Boulevard N. Verification of this sale indicated that at the time of sale, the property did not include any significant contributory improvements. Unimproved Land Sale No. 4 was adjusted for differences in market conditions (time) and superior road frontage. Land Sale No. 4 provided an indicated adjusted value of $19,207 per acre. RECONCILIATION OF THE MARKET VALUE ESTIMATE: In summary, the appraiser has selected four competitive unimproved sales zoned E, Estates District, transacted between August 2016 and December 2016 for direct comparison to the parent tract and which will provide the database for the application of the Sales Comparison Approach. The indicated adjusted sales prices associated with these four sales range from a low of $19,207 per gross acre for Sale No. 4 to a high of $23,605 per gross acre for Sale No. 3. The arithmetical mean from this database was $20,551 per gross area. In conclusion, the final estimate of value, after reviewing each of the four comparable sales utilized in direct comparison to the parent tract is $20,500 per gross acre, which results in the following estimate of value: Market Value of the Parent Tract Land: (1.17 Gross Acres) x ($20,500 Per Gross Acre) = $23,985 Rounded to, Say = $24,000* * Contributory Value of the Site Improvements Taken: The parent tract is improved with a single-family home and associated site improvements. The only significant improvements that will be taken consist of site improvements including a portion of the gravel drive, sod, landscaping, site clearing, fill and grading. Pertinent improvements to establish the driveway connection(s) to Golden Gate Boulevard E. will be re-established by Collier County. The appraiser has reviewed cost estimates from the Marshall Swift Manual and has consulted with local contractors pertinent to the cost estimates for the significant site improvements taken. Based on this research and the appraiser’s experience, the appraiser has estimated the contributory market value of the site improvements taken to be $5,500. The following table is provided to help the reader review the appraiser’s estimate of the contributory value for the site improvements taken: Estimated Value 1. Site Clearing/Fill/Grade:$3,000 2. Gravel Drive:$800 3. Landscaping/Sod:$1,700 Total:$5,500 Contributory Value of the Site Improvements Taken for Parcel No. 471 RDUE: Prepared for and property of Collier County Board of Commissioners. Page 51 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Summary of the Market Value of the Parent Tract: Based on the aforementioned market data and analysis, the following summarizes the estimated market value of the parent tract and the improvements taken: Market Value of the Parent Tract: Market Value of the Parent Tract Land = $24,000 Contributory Value of the Proposed Site Improvements Taken = $ 5,500 Total = $29,500* * Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. Prepared for and property of Collier County Board of Commissioners. Page 52 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Reconciliation of the Value Indications In summary, the appraiser has obtained the following value indications from the valuation approaches presented earlier in the appraisal report as follows: The Cost Approach to Value: NA The Sales Comparison Approach to Value: $29,500 The Income Capitalization Approach to Value: N/A Reconciliation is the analysis of alternative conclusions to arrive at a value estimate. Reconciliation is required because different value indications result from the use of more than one valuation approach and within the application of a single approach. Furthermore, the final value estimate should not be derived simply by applying technical and quantitative procedures; rather, it should involve the exercise of judgment. The value conclusion reached should be consistent with market thinking and the quantity of data used should correspond to the amount of data the market considers relevant to the problem. An appraiser shall produce a meaningful, defensible value estimate by considering three criteria: appropriateness, accuracy, and quantity of evidence. Appropriateness relates to the use of certain approaches and specific assignments. All data, calculations, estimates, and adjustments are examined for accuracy. The quantity of evidence is analyzed to determine if the conclusion reached is sufficiently supported in the market. Market data reflects past phenomena, but an appraiser must rely on data to estimate future benefits and the present value of these benefits. Nevertheless, the data available should not dictate the range of future possibilities under consideration. As previously stated, the only significant improvements located within the proposed acquisition area consist of site improvements. Building and site improvements located outside the proposed acquisition area are considered to be unaffected. Accordingly, the appraiser has not estimated the contributory value of the building and site improvements not taken. Therefore, it was the appraiser’s opinion that the Market Approach to Value (Sales Comparison Approach to Value) is the only applicable approach for this valuation assignment. The Sales Comparison Approach to Value was considered applicable since an adequate number of similar unimproved sales have recently occurred within the market area that may be utilized by the appraiser in predicting typical buyer and seller behavior. The market data within the Sales Comparison Approach to Value was considered sufficient and adequate to provide a reliable value conclusion. In summary, the appraiser has selected four competitive unimproved sales zoned E, Estates District, transacted between August 2016 and December 2016 as being most comparable to the parent tract. The market data within the Sales Comparison Approach to Value was considered sufficient and adequate to provide a reliable value conclusion. Based on this market analysis, the market value of the parent tract was estimated to have a unit value of $20,500 per gross acre, resulting in a total indicated market value of $24,000, rounded (1.17 acres x $20,500 per gross acre). The Cost Approach to Value and the Income Capitalization Approach to Value were not considered applicable for this appraisal assignment due to the fact that the parent tract is being valued as if vacant land. Prepared for and property of Collier County Board of Commissioners. Page 53 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Next, the appraiser has reviewed cost estimates from the Marshall Swift Manual and has consulted with local contractors pertinent to the cost estimates for the significant site improvements taken. Based on this research and the appraiser’s experience, the appraiser has estimated the contributory market value of the site improvements taken to be $5,500. In conclusion, it is the appraiser’s opinion, that the market value of the parent tract, as of January 11, 2017, is $29,500, allocated $24,000 to the land value and $5,500 to the improvements. Prepared for and property of Collier County Board of Commissioners. Page 54 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Estimation of Reasonable Exposure Time: In this portion of the analysis, the appraiser will provide the reader with a narrative overview relating to the estimate of the reasonable exposure time or normal marketing period for the parent tract. Exposure time is defined in The Dictionary of Real Estate Appraisal, Sixth Edition as “the estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Furthermore, exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market. The appraiser has estimated a reasonable exposure time for the parent tract to be six to twelve months, based on the appraiser’s research of market activity and available listings and interviews with numerous market participants. Prepared for and property of Collier County Board of Commissioners. Page 55 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Descriptions and Valuation Analyses of the Proposed Partial Acquisition Area and the Remainder Property Prepared for and property of Collier County Board of Commissioners. Page 56 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Parcel No. 471 RDUE Acquisition Area Map Prepared for and property of Collier County Board of Commissioners. Page 57 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. PROJECT DESCRIPTION AND IDENTIFICATION OF THE PROPOSED PARTIAL ACQUISITION AREA Project Description: The proposed perpetual, non-exclusive, road right-of-way, drainage, utilities easement will be utilized for the widening of Golden Gate Boulevard E. from Wilson Boulevard to DeSoto Boulevard. Plans included the widening of Golden Gate Boulevard E. from two lanes to four lanes and will include capacity improvements such as adding turn lanes to the Wilson Boulevard and Everglades Boulevard intersections. Other improvements include traffic signal upgrades at three major intersections (Wilson, Everglades and DeSoto Boulevards), on-road bike lanes and sidewalks on both sides of the roadway. This project will also include the replacement of bridges over three canals, the Golden Gate, Miller and Faka Union canals. Description of the Proposed Acquisition Area: Parcel No. 471 RDUE is a perpetual, non- exclusive, road right-of-way, drainage, and utilities easement that consist of a 49 foot wide strip taking along the southerly right-of-way of Golden Gate Boulevard E. Parcel No. 471 RDUE contains 0.08 acres (3,675 square feet) of gross land area and is rectangular in shape. Specifically, the Parcel No. 471 RDUE has a northern property line along Golden Gate Boulevard E. that measures 75 feet; with a depth there from along the eastern and western property lines that measure 49 feet; and a rear, southern property line that measures 75 feet. Legal Description of the Partial Acquisition Area: The legal description of the proposed perpetual, non-exclusive, road right-of-way, drainage, and utilities easement acquisition area is as follows: Source: RWA Consulting, Inc., Naples, Florida. VALUATION ANALYSIS OF THE PROPOSED PARTIAL ACQUISITION AREA Value of the Property Rights Taken: The appraiser has previously estimated the market value of the fee simple interest of the parent tract to have a unit value of $20,500 per gross acre. This value estimate was obtained through the application of the Sales Comparison Approach to Value. Since the part taken is to be valued as part of the whole, this value will serve as a basis of value for the valuation of the property rights taken. As previously stated, Parcel No. 471 RDUE is a perpetual easement for road right-of-way, drainage, utilities and maintenance of these uses. Accordingly, the proposed easement will essentially take the entire bundle of rights, with the owner only allowed to utilize the proposed easement area for density calculations. Prepared for and property of Collier County Board of Commissioners. Page 58 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Since the proposed taking is an easement versus a fee simple taking, the bundle of rights taken is something less than 100%. However, since the proposed easement precludes almost all practical uses by the owner, the appraiser has estimated Parcel No. 471 RDUE will include 99% of the fee simple value resulting in an estimated overall unit value of $20,295 per acre (0.99 x $20,500). Therefore, the value of the property rights taken is estimated as follows: Market Value of the of the Property Rights Taken: (0.08 Gross Acres) x ($20,295 Per Acre) = $1,624 Rounded to, Say = $1,600 Value of the Improvements Taken: The only significant improvements that will be taken consist of site improvements including a portion of the gravel drive, sod, landscaping, site clearing, fill and grading. Pertinent improvements to establish the driveway connection(s) to Golden Gate Boulevard E. will be re-established by Collier County. The appraiser has reviewed cost estimates from the Marshall Swift Manual and has consulted with local contractors pertinent to the cost estimates for the significant site improvements taken. Based on this research and the appraiser’s experience, the appraiser has estimated the contributory market value of the site improvements taken to be $5,500. The following table is provided to help the reader review the appraiser’s estimate of the contributory value for the site improvements taken: Estimated Value 1. Site Clearing/Fill/Grade:$3,000 2. Gravel Drive:$800 3. Landscaping/Sod:$1,700 Total:$5,500 Contributory Value of the Site Improvements Taken for Parcel No. 471 RDUE: Summary of the Property Rights and Improvements Taken: The following is the appraiser’s summary of the value of the property rights and improvements taken from the parent tract: 1. Property Rights Taken: ........................................................................................... $1,600 2. Improvements Taken: ............................................................................................. $5,500 Market Value of the Part Taken: ............................................................................. $7,100 Valuation of the Remainder Property, as Part of the Whole: The following sets forth the arithmetic analysis of the valuation of the remainder property, as part of the whole (before value less value of part taken): 1. Market Value of the Parent Tract, Before the Taking: ........................................... $29,500 2. Less Market Value of the Part Taken: ................................................................... $ 7,100 Total Market Value of the Remainder Property, As Part of the Whole: .................. $22,400 Prepared for and property of Collier County Board of Commissioners. Page 59 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. VALUATION ANALYSIS OF THE REMAINDER PROPERTY "AS SEVERED" The remainder property shall contain 1.17 acres of gross land area and is still rectangular in shape and the same size and shape as before the taking, since the proposed property rights to be acquired involve a perpetual easement for road right-of-way, drainage, utilities and maintenance of these uses. However, the remainder property will be encumbered by an additional perpetual easement located along the southerly existing right-of-way of Golden Gate Boulevard E. containing 0.08 acres of gross land area. The remainder property’s overall access, availability to utilities, topography, land use designation, and zoning are unchanged. The highest and best use of the remainder property “as vacant” is estimated to remain the same as before the taking, potential single-family residential development. Furthermore, the remainder property’s improvements are the same as before the taking, except for the taking of some site improvements. The highest and best use of the remainder property “as improved” is estimated to remain the same as before the taking, the continued use of the existing improvements as a single-family home and associated site improvements. Finally, the remainder property is not considered to be damaged due to the taking of the proposed acquisition area. Most competitive Golden Gate Estates properties are encumbered by 30 to 50 foot wide road right-of-way easements along the property’s adjacent roadway frontages. Prior to the taking, the parent tract was encumbered by a 50-foot wide road right-of-way easement along the southern property line and along the property’s existing frontage to Golden Gate Boulevard E. As stated above, after the taking, the remainder property will be encumbered by an additional perpetual easement containing 0.08 acres of gross land area located along the southerly existing right-of-way of Golden Gate Boulevard E. Although the appraiser has recognized that most buyers, sellers, and active real estate agents have reported that competitive unimproved Golden Gate Estate properties within the market area are typically purchased based on a price per acre of gross land area unit of value, the appraiser has also recognized the proposed additional easement area precludes almost all practical uses by the owner. Therefore, the appraiser has estimated Parcel No. 471 RDUE will take 99% of the fee simple value. Accordingly, the appraiser has estimated the residual value to proposed additional easement area to be 1% of the fee simple value resulting in an estimated unit value of $205 per acre (0.01 x $20,500) for this portion of the property. The appraiser has previously estimated the market value of the undivided fee simple interest in the parent tract to have unit value of $20,500 per gross acre. The remainder land area exclusive of the additional encumbered area taking, containing 1.09 acres (1.17 – 0.08), is estimated to have the same unit value, as before the taking. Prepared for and property of Collier County Board of Commissioners. Page 60 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Based on the aforementioned data and analysis, the following sets forth the appraiser’s estimate of the remainder property as follows: Market Value of the of the Remainder Property: Land Area Exclusive of the Additional Encumbered Area Taken: (1.09 Gross Acres) x ($20,500 Per Acre) = $22,345 Rounded up to, Say = $22,400 Additional Encumbered Area Taken: (0.08 Gross Acres) x ($205 Per Acre) = $ 16 Rounded to, Say = $ 0 Total = $22,400 SEVERANCE DAMAGES TO THE REMAINDER PROPERTY Technically, severance damages are calculated as the negative difference between the value of the remainder property, as part of the whole, and the value of the remainder property, as severed. When the value of the remainder property, as severed, is less than the value of the remainder property, as part of the whole, the difference is the actual measurement of the damages to the remainder property. When the value of the remainder property, as severed, is greater than the value of the remainder property, as part of the whole, the difference is not damage but is considered a benefit. The appraiser has estimated the remainder property, as part of the whole, to be $22,400, which represents the value of the whole ($29,500), less the value of the part taken ($7,100). The appraiser has also estimated the market value of the remainder property as severed to be $22,400. Therefore, these value estimates indicate no severance damages. COST TO CURE ANALYSIS Based on the analysis of the remainder property, it is the appraiser’s opinion, that there is no net cost to cure. SPECIAL BENEFITS Based on the analysis of the remainder property, it is the appraiser’s opinion, that there are no special benefits. Prepared for and property of Collier County Board of Commissioners. Page 61 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. SUMMARY AND CONCLUSION AND THE TOTAL COMPENSATION ESTIMATE Accordingly, based on all the aforementioned data and analysis, the following summarizes the appraiser estimates of the total just compensation estimate: Fee Indicated Indicated Indicated Value % of Value Quantity Value Value 1. Before Property:(Per Ac.)Fee (Per Ac.)(Acres)Indicated Rounded Total A. Land:$20,500 100.00%$20,500 1.17 $23,985 $24,000 B. Improvements:$5,500 C. Total:$29,500 2. Proposed Part to be Acquired: A. Additional Encumbered Land Taken:$20,500 99.00%$20,295 0.08 $1,624 $1,600 B. Improvements Taken:$5,500 C. Total:$7,100 3. Remainder as Part of the Whole:$22,400 4. Remainder Property: A. Land: 1. Land Area (Exclusive of Additional Encumbered Land Taken):$20,500 100.00%$20,500 1.09 $22,345 $22,400 * 2. Additional Encumbered Land Taken:$20,500 1.00%$205 0.08 $16 $0 Totals:1.17 $22,361 $22,400 B. Improvements:$0 C. Total:$22,400 5. Damages (Total):$0 6. Special Benefits:$0 7. Damages (Net):$0 Summary of Total Compensation: 1. Proposed Part to be Acquired: A. Additional Encumbered Land Taken:$20,500 99.00%$20,295 0.08 $1,624 $1,600 B. Improvements Taken:$5,500 C. Total:$7,100 2. Damages (Net):$0 3. Cost to Cure, Net:$0 TOTAL COMPENSATION:$7,100 *Rounded Up Summary of Values Parcel No. 471 RDUE: Prepared for and property of Collier County Board of Commissioners. Page 62 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Addendum Prepared for and property of Collier County Board of Commissioners. Page 63 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. ASSUMPTIONS AND LIMITING CONDITIONS The Market Value estimate of the property or properties appraised herein is subject to certain assumptions and limiting conditions. Specifically they are: 1. Any legal descriptions furnished are assumed to be correct. 2. No responsibility is assumed for matters legal in character, nor is any opinion rendered herein as to title, which is assumed to be good and merchantable. It is assumed that the property is under responsible ownership and management on the appraisal date. 3. It is assumed that surveys and/or plats furnished to, or acquired by, the appraiser and used in the making of this report are correct. The appraiser has not made a land survey or caused one to be made, and therefore, assumes no responsibility for their accuracy. 4. Certain data used in compiling this report was furnished the appraiser from sources which they consider reliable, however, they do not guarantee the correctness of such data, although as far as is reasonably possible, the data has been checked and is believed to be correct. 5. The soil of the area under appraisement appears to be firm and solid, unless otherwise stated. Subsidence in the area is unknown or uncommon but the appraiser does not warrant against this condition of occurrence. 6. Subsurface rights (minerals and oil) were not considered in making this report unless otherwise stated. 7. The tracts that according to survey, map or plat, indicate riparian rights and/or littoral rights are assumed to go with the property unless easements or deeds of record were found by the appraiser to the contrary. 8. Possession of this report, or copy thereof, does not carry with it the right of publication or reproduction, nor may it be used by any but the applicant without prior written consent of the applicant and the appraiser, and in any event only in its entirety. 9. The appraiser by reason of this report is not required to give testimony in court with reference to the property herein appraised, nor is the appraiser obligated to appear before any governmental body, board or agent unless arrangements have been previously made therefore. 10. A careful inspection was made of any and all buildings involved in this appraisal report and damage, if any, by structural failure, termites, dry rot, wet rot or other infestations was reported as a matter of information by the appraiser, but no guarantee as to the amount or degree of damages, if any, is given herein. 11. The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 12. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales or other media without the written consent and approval of the author, particularly as to valuation conclusions, the identity of the appraiser, or firms with which they are connected, or any reference to the Appraisal Institute, or to the MAI designation. 13. Unless specifically stated in the report, the appraiser did not determine the flood plain status of the property appraised. If such data is available, it is recommended it be obtained prior to any development that might be contemplated. Prepared for and property of Collier County Board of Commissioners. Page 64 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. ASSUMPTIONS AND LIMITING CONDITIONS - Continued 14. Inspection of the parent tract revealed no obvious environmental hazards. The existence of potentially hazardous materials used in the construction or maintenance of the building, such as the presence of urea formaldehyde foam insulation, and/or existence of toxic waste, which may or may not be present on the property, has not been considered. The appraiser is not qualified to detect such substances and reserves the right to amend or alter this report and the value conclusions tendered herein should an Environmental Risk Audit (or other similar study) be conducted on the parent tract at a later date. 15. This appraisal was prepared by the appraiser who signed this report for the exclusive use of the client. The information and opinions contained in this appraisal set forth the appraiser’s best judgment in light of the information available at the time of the preparation of this report. Any use of this appraisal by any other person or entity, or any reliance or decisions based on this appraisal are the sole responsibility and at the sole risk of the third party. The appraiser accepts no responsibility for damages suffered by any third party as a result of reliance on or decisions made or actions taken based on this report. Prepared for and property of Collier County Board of Commissioners. Page 65 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Qualifications of the Appraiser, R. Alan Wilcox, MAI, SRA OVERVIEW R. Alan Wilcox has over 32 years of appraisal experience in the state of Florida specializing in eminent domain and litigation assignments. Mr. Wilcox has worked for both the condemnor and the property owner with experience in a variety of appraisal problems concerning commercial, industrial, residential, and special use properties. Mr. Wilcox has expertise in providing the client with strong market research for a reliable factual foundation to support the valuation opinion combined with effective communications including report writing, trial exhibits and expert testimony. PROFESSIONAL MEMBERSHIPS • MAI and SRA Designations, Appraisal Institute, Certificate No. 9613 • Member, Appraisal Institute, Regional Ethics and Counseling Panel, 1993-Present • Member, Real Estate Investment Society, Present • Trustee, Real Estate Appraiser Group Insurance Trust, 2014 • President and Board of Director, Appraisers Liability Insurance Program, 2012 • Vice President and Board of Director, Appraisers Liability Insurance Program, 2011 • Board of Director, Appraisers Liability Insurance Program, 2010 • Member, Appraisal Institute, Leadership Development & Nominating Committee, 2005- 2008 • Member, National Board of Directors, Appraisal Institute, Region X, Chair, 2004 • Member, National Board of Directors, Appraisal Institute, 2001-2003 • Director, Association of Eminent Domain Professionals, 2000-2001 • President, West Cost Florida Chapter of the Appraisal Institute, 2001 • Regional Representative, West Coast Florida Chapter of Appraisal Institute, 1994-2001 • Vice President, West Cost Florida Chapter of the Appraisal Institute, 2000 • Secretary, West Cost Florida Chapter of the Appraisal Institute, 1999 • Treasurer, West Cost Florida Chapter of the Appraisal Institute, 1998 • Member, Region X, Appraisal Institute, National General Appraisal Board Guidance Subcommittee, 1996-1998 • Director, West Coast Florida Chapter of Appraisal Institute, 1993-1996 • Chairperson, MAI Admissions Committee, West Coast Florida Chapter of the Appraisal Institute, 1997 • Chairperson, MAI, Candidate Guidance, West Coast Florida Chapter of the Appraisal Institute, 1993-1996 AWARDS • Appraisal Institute’s “Volunteer of Distinction Award”, Region X, 2011 • Outstanding and Dedicated Service Award, West Coast Florida Chapter of Appraisal Institute, 1996 Prepared for and property of Collier County Board of Commissioners. Page 66 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Qualifications of the Appraiser, R. Alan Wilcox, MAI, SRA - Continued STATE CERTIFICATION/LICENSES • State-certified general real estate appraiser, RZ306 (Florida) • Real Estate Broker’s License, BK 326544 (Florida) EDUCATIONAL BACKGROUND • Bachelor of Science Degree, West Virginia University, Morgantown, West Virginia, 1971 o Graduated with High Honors (No. One in Graduating Class) o Gamma Sigma Delta National Honor Society of Agriculture o Xi Sigma Pi National Honor Society of Forestry o Senior Recognition Certificate (No. One in Graduating Class) o College Bowl Participant o Senior Scholarship Award of Merit • Master of Science Degree, University of Washington, Seattle, Washington, 1976 • Post Graduate, 20 quarter hours, University of South Florida, Fort Myers, Florida, 1980- 1983 • Post Graduate, 9 semester hours, Nova University, Fort Lauderdale, Florida, 1982 REAL ESTATE APPRAISAL COURSES AND SEMINARS COMPLETED R. Alan Wilcox, MAI, SRA, has completed the specialized appraisal educational requirements for obtaining the MAI, SRA, designation and the continuing education program of the Appraisal Institute, as well as the continuing education requirements for State Certification. Furthermore, R. Alan Wilcox, MAI, SRA has made special efforts to exceed the required minimum educational requirements and to attend the highest quality of appraisal educational offerings, including courses and seminars sponsored by the Appraisal Institute, American Law Institute & American Bar Association (ALI-ABA), Continuing Legal Education (CLE) Institute, and the Association of Eminent Domain Professionals. EXPERIENCE • President/Owner, Wilcox Appraisal Services, Inc., Cape Coral, FL, August 1993 to Present • Associate Appraiser, Hanson Real Estate Advisors, Inc., Fort Myers, FL, February 1990 to September 1998 • Expert Witness for the Florida Real Estate Appraisal Board, July 1998 • Associate Appraiser, Horizon Appraisal Services, Inc., Fort Myers, FL, June 1986 to February 1990 • Associate Appraiser, First Appraisal Services, Fort Myers, FL, March 1986 to June 1986 • Associate Appraiser, Richard L. Futral & Associates, Cape Coral, FL, July 1985 to March 1986 • Associate Appraiser, Calhoun & Associates, Fort Myers, FL, June 1984 to July 1985 Prepared for and property of Collier County Board of Commissioners. Page 67 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Copy of Parent Tract’s Quit Claim Deed Prepared for and property of Collier County Board of Commissioners. Page 68 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Copy of Parent Tract’s Quit Claim Deed - Continued Prepared for and property of Collier County Board of Commissioners. Page 69 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Quarterly Market Detail – 3rd Quarter 2016 For Single Family Homes in Collier County Produced by Florida Realtors with data provided by Florida’s multiple listings services. Prepared for and property of Collier County Board of Commissioners. Page 70 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Quarterly Market Detail – 3rd Quarter 2016 For Single Family Homes in Collier County Produced by Florida Realtors with data provided by Florida’s multiple listings services. Continued Prepared for and property of Collier County Board of Commissioners. Page 71 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Land Sales Map Prepared for and property of Collier County Board of Commissioners. Page 72 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Land Sale No. 1 SALES DATA Recording Data Warranty Deed, Collier County, OR Book 5347, Page 1553. Grantor Audi Homes & Land, Inc. Grantee Frank Diaz, Sr. Sales Date ~ Price December 16, 2016 ~ $35,000. Conditions of Sale Typical market. Sales History The sale property previously sold on March 30, 2016 for $21,900. Legal Description The East 105 feet of the East 180 feet of Tract 76, Golden Gate Estates Unit No. 74, according to the map or plat thereof as recorded in Plat Book 5, Page 10, Public Records of Collier County, Florida. PROPERTY DATA Property Type ~ Current Use Residential ~ Vacant land. Highest and Best Use Residential development. Location The sale property is located on the north side of 12th Avenue NE approximately 0.60 miles east of Everglades Boulevard N., Collier County, Naples, Florida. Roadway Frontage 12th Avenue NE. Folio No. 40525760005. STRAP No. 348700 76 13D32. Zoning E, Estates, District (Collier County). Land Use E, Estates, Designation (Collier County). Easement(s) The sale property is encumbered by a 30-foot wide road right-of-way easement along the southern property line and along the property’s existing frontage to 12th Avenue NE. Size (Gross) 1.59 Gross Acres. Utilities Telephone, Electrical Service and Emergency Services. UNIT OF COMPARISON $22,013 Per Gross Acre. VERIFICATION DATA R. Alan Wilcox, MAI, verified this sale on January 9, 2017 with Angel Madera, Jr., listing and selling agent, 239-253-2815. COMMENTS Verification of this sale indicated that at the time of sale, the property did not include any significant contributory improvements. Prepared for and property of Collier County Board of Commissioners. Page 73 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Land Sale No. 2 SALES DATA Recording Data Warranty Deed, Collier County, OR Book 5336, Page 95. Grantor Joan W. Hickey and Jane L. Heupel. Grantee Nelva Rosio Sejas Garcia. Sales Date ~ Price November 18, 2016 ~ $57,500. Conditions of Sale Typical market. Sales History There are no other arm’s length sales of the sale property in the past three years. Legal Description The North 180 feet of Tract 63, Golden Gate Estates Unit No. 51, according to the map or plat thereof as recorded in Plat Book 5, Pages 84 and 85, Public Records of Collier County, Florida. PROPERTY DATA Property Type ~ Current Use Residential ~ Vacant land. Highest and Best Use Residential development. Location The sale property is located on the west side of 20th Street SE approximately 0.15 miles south of Golden Gate Boulevard E. Collier County, Naples, Florida. Roadway Frontage 20th Street SE Folio No. 39386920008. STRAP No. 342700 63 04C12. Zoning E, Estates, District (Collier County). Land Use E, Estates, Designation (Collier County). Easement(s) The sale property is encumbered by a 30-foot wide road right-of-way easement along the eastern property line and along the property’s existing frontage to 20th Street SE Size (Gross) 2.73 Gross Acres. Utilities Telephone, Electrical Service and Emergency Services. UNIT OF COMPARISON $21,062 Per Gross Acre. VERIFICATION DATA R. Alan Wilcox, MAI, verified this sale on January 9, 2017 with Claire Gogan, listing agent, 239-784-0973. COMMENTS Verification of this sale indicated that at the time of sale, the property did not include any significant contributory improvements. Prepared for and property of Collier County Board of Commissioners. Page 74 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Land Sale No. 3 SALES DATA Recording Data Warranty Deed, Collier County, OR Book 5325, Page 3820. Grantor A & M Investments LLC. Grantee ARM S.A. LLC. Sales Date ~ Price October 14, 2016 ~ $29,000. Conditions of Sale Typical market. Sales History The sale property previously sold on March 29, 2016 for $14,000. Legal Description The East 75 feet of the East 150 feet of Tract 119, Golden Gate Estates Unit No. 74, according to the map or plat thereof as recorded in Plat Book 5, Page 10, Public Records of Collier County, Florida. PROPERTY DATA Property Type ~ Current Use Residential ~ Vacant land. Highest and Best Use Residential development. Location The sale property is located on the north side of 10th Avenue NE approximately 0.90 miles east of Everglades Boulevard N., Collier County, Naples, Florida. Roadway Frontage 10th Avenue NE. Folio No. 40529480006. STRAP No. 348700 119 03D32. Zoning E, Estates, District (Collier County). Land Use E, Estates, Designation (Collier County). Easement(s) The sale property is encumbered by a 30-foot wide road right-of-way easement along the southern property line and along the property’s existing frontage to 10th Avenue NE. Size (Gross) 1.14 Gross Acres. Utilities Telephone, Electrical Service and Emergency Services. UNIT OF COMPARISON $25,439 Per Gross Acre. VERIFICATION DATA R. Alan Wilcox, MAI, verified this sale on November 7, 2016 with Nicolas Villamizar, listing agent, 239-404-7754. COMMENTS Verification of this sale indicated that at the time of sale, the property did not include any significant contributory improvements. Prepared for and property of Collier County Board of Commissioners. Page 75 Reliance upon the appraisal for other uses is not warranted. Wilcox Appraisal Services, Inc. Land Sale No. 4 SALES DATA Recording Data General Warranty Deed, Collier County, OR Book 5302, Page 1115. Grantor Peter A. Blanco and Marina M. Blanco. Grantee Antonio Martinez and Maria Licette Martinez. Sales Date ~ Price August 4, 2016 ~ $30,000. Conditions of Sale Typical market. Sales History There are no other arm’s length sales of the sale property in the past three years. Legal Description The South 105 feet of the South 180 feet of Tract 125, Golden Gate Estates Unit No. 75, according to the map or plat thereof as recorded in Plat Book 5, Pages 11 and 12, Public Records of Collier County, Florida. PROPERTY DATA Property Type ~ Current Use Residential ~ Vacant land. Highest and Best Use Residential development. Location The sale property is located on the west side of Everglades Boulevard N. between 14th Avenue NE and 16th Avenue NE, Collier County, Naples, Florida. Roadway Frontage Everglades Boulevard N. Folio No. 40579720004. STRAP No. 349000 125 23D31. Zoning E, Estates, District (Collier County). Land Use E, Estates, Designation (Collier County). Easement(s) The sale property is encumbered by a 50-foot wide road right-of-way easement along the eastern property line and along the property’s existing frontage to Everglades Boulevard N. Size (Gross) 1.64 Gross Acres. Utilities Telephone, Electrical Service and Emergency Services. UNIT OF COMPARISON $18,293 Per Gross Acre. VERIFICATION DATA R. Alan Wilcox, MAI, verified this sale on November 7, 2016 with Tony Arias, listing agent, 239-348-8289. COMMENTS Verification of this sale indicated that at the time of sale, the property did not include any significant contributory improvements.