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Agenda 07/08/2014 Item # 11C7/8/2014 11.C. EXECUTIVE SUMMARY Recommendation to approve an Agreement for Sale and Purchase with Asset Recovery XVIII, LLC, for the purchase of property to accommodate the future Wilson /Benefield alignment and improved access to the Resource Recovery Business Park and approve a budget amendment. (Fiscal Impact $5,542,000) OBJECTIVE: That the Board of County Commissioners of Collier County, Florida and as the Governing Body of Collier County and as Ex- Officio the Governing Board of the Collier County Water -Sewer District (hereinafter collectively referred to as "Board "), approve the attached Purchase and Sale Agreement for the purchase of a 302 +/- acre parcel to facilitate future County public projects. CONSIDERATIONS: On January 28, 2014, Agenda Item l ID; the Board authorized staff to enter into negotiations with Asset Recovery XVIII, LLC, for the purchase of the property at an amount not to exceed the liquidation price of $5,525,000. A location snap is attached for reference. Two independent real estate appraisals were obtained from State - certified real estate appraisers (T.A. Tippett, Inc. and RKL Appraisal and Consulting). The "as is" values were $5,200,000 and $6,000,000, respectively. The average of the two appraisals is $5,600,000. Asset Recovery XVIII, LLC, has agreed to sell the property for the liquidation value of $5,525,000. Copies of the appraisals are attached for reference. The primary need for this land is associated with the Wilson Boulevard / Benefield Road corridor, which was approved by the Board on October 27, 2009, Agenda Item 10C. Furthermore, this is a long -teen investment for optimized landfill operations including bioreactors and water /sewer district operations for biosolids disposal /reuse. There are however, additional direct cost savings achieved with the purchase of these lands in providing improved and less costly access options for the County owned Resource Recovery Business Park which lies immediately to the North of the subject property. Additionally, potential exists for optimizing lands adjacent to the landfill that will serve a longer term purpose to provide for more efficient and cost effective delivery of services to Collier County residents through the master planning of this property in conjunction with other adjacent county owned lands. Collier County is also uniquely positioned due to its ownership of 300 acres immediately to the North to take advantage of combining these lands under a single environmental permit, reducing the potential fragmentation of native areas and providing both direct and indirect environmental benefits for flora and fauna that inhabit the area. Solid & Hazardous Waste Management Department staff reviewed Phase I & Phase Il environmental site assessment reports dated March 20, 2006 and February 15, 2012, and the March 2008 Wilson - Benefield Corridor Environmental Data Report. Staffs report concluded Packet Page -134- 7/8/2014 11.C. that there appeared to be no over - riding environmental issues that would preclude the purchase and use of the property. FISCAL IMPACT: The total cost of acquisition should not exceed $5,542,000. ($5,525,000 for the land purchase, $17,000 for title commitment, title policy, recording fees and associated closing costs). Funding is available as follows: Funding Source Amount Notes A budget amendment is needed to move money out Gas Tax Capital Fund of Reserves and into Proj 60129 - Wilson/Benfield (3 13) $1,200,000 Extension. Solid Waste Landfill A budget amendment is needed to move money out Closure Fund (47 1 ) $2,015,500 of Reserves for the purchase of land. Wastewater User Fee There is adequate budget in Proj 50110 - Biosolids Capital Fund (414) $2,326,500 1 Reuse Facility. These figures are preliminary and will be reconciled upon final configuration determined from the master plan. LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for Board approval. —SRT GROWTH MANAGEMENT IMPACT: This project meets current Growth Management Plan standards to ensure the adequacy and availability of viable public facilities. RECOMMENDATION: That the Board of County Commissioners and as ex- officio the Governing Board of the Collier County Water -Sewer District: 1. approve the attached Agreement for Sale and Purchase and accept the Special Warranty Deed once it is received and approved by the County Attorney's Office; 2. authorize the Chairman to execute the Agreement for Sale and Purchase and any and all other County Attorney's Office approved documents related to this purchase; 3. authorize staff to prepare related vouchers, Warrants for Payment; 4. direct the County Manager or his designee to proceed to acquire the Property, to follow all appropriate closing procedures, and to record the Deed, and any and all necessary documents to obtain clear title to the Property, in the Public records of Collier County, Florida; and 5. approve any necessary budget amendment which may be required to carry out the collective will of the Board. PREPARED BY: Toni A. Mott, Manager, Real Property Management, Facilities Management Department Attachments: 1. Agreement for Sale and Purchase (executed by Seller), 2. Appraisals, 3. Location Map Packet Page -135- COLLIER COUNTY Board of County Commissioners Item Number: 11.11.C. 7/8/2014 11.C. Item Summary: Recommendation to approve an Agreement for Sale and Purchase with Asset Recovery XVII1, LLC, for the purchase of property to accommodate the future Wilson /Benefield alignment and improved access to the Resource Recovery Business Park and approve a budget amendment. (Fiscal Impact $5,542,000) Meeting Date: 7/8/2014 Prepared By Name: MottToni Title: Manager - Property Acquisition & Const M, Facilities Management 6/24/2014 4:23:39 PM Submitted by Title: Manager - Property Acquisition & Const M, Facilities Management Name: MottToni 6/24/2014 4:23:39 PM Approved By Name: CampSkip Title: Director - Facilities Management, Facilities Management Date: 6/26/2014 4:49:01 PM Name: pochopinpat Title: Administrative Assistant, Administrative Services Division Date: 6/26/2014 4:57:12 PM Name: MarcellaJeanne Title: Executive Secretary, Transportation Planning Date: 6/27/2014 7:51:05 AM Name: Joseph Bellone Title: Director - Operations Support, Utilities Finance Operations Date: 6/27/2014 8:21:20 AM Packet Page -136- 7/8/2014 11.C. Name: HendricksKevin Title: Manager - Right of Way, Transportation Engineering & Construction Management Date: 6/27/2014 9:05:09 AM Name: ShueGene Title: Director - Operations Support, Transportation Administration Date: 6/27/2014 10:15:26 AM Name: YilmazGeorge Title: Administrator - Public Utilities, Public Utilities Division Date: 6/27/2014 3:21:37 PM Name: RodriguezDan Title: Director - Solid Waste, Solid & Hazardous Waste Management Date: 6/27/2014 4:28:07 PM Name: GreeneColleen Title: Assistant County Attorney, CAO General Services Date: 6/27/2014 5:05:58 PM Name: PriceLen Title: Administrator - Administrative Services, Administrative Services Division Date: 6/27/2014 5:11:16 PM Name: KlatzkowJeff Title: County Attorney, Date: 6/30/2014 10:24:13 AM Name: UsherSusan Title: ManagementBudget Analyst, Senior, Office of Management & Budget Date: 7/1/2014 9:58:11 AM Name: UsherSusan Title: Management/Budget Analyst, Senior, Office of Management & Budget Date: 7/1/2014 10:16:13 AM Name: Klatzko"Jeff Title: County Attorney, Date: 7/l/2014 1:32:12 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 7/1/2014 3:25:48 PM Packet Page -137- 7/8/2014 11.C. Packet Page -138- 7/8/2014 11.C. Project: Joint Land Purchase Folio: 00298480005 AGREEMENT FOR SALE AND PURCHASE THIS AGREEMENT is made and entered into by and between ASSET RECOVERY XVIII, LLC, a Florida Limited Liability Company, whose mailing address is One Wall Street — 16th Floor, New York, NY 10286, ATTN: Gordon Berger, Managing Director (hereinafter referred to as "Seller "), and COLLIER COUNTY, a political subdivision of the State of Florida and the BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF COLLIER COUNTY AND AS EX- OFFICIO THE GOVERNING BOARD OF COLLIER COUNTY WATER -SEWER DISTRICT, whose mailing address is c/o Real Property Management, 3335 Tamiami Trail East, Suite 101, Naples, FL 34112 (hereinafter collectively referred to as "Purchaser "). WITNESSETH WHEREAS, Seller is the owner of that certain parcel of real property located in Collier County, State of Florida, and being more particularly described in Exhibit "A" (hereinafter referred to as the "Property "), attached hereto and made a part hereof by reference. WHEREAS, Purchaser is desirous of purchasing the Property, subject to the conditions and other agreements hereinafter set forth, and Seller is agreeable to such sale and to such conditions and agreements. NOW, THEREFORE, and for and in consideration of the premises and the respective undertakings of the parties hereinafter set forth and the sum of Ten Dollars ($10.00), the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows: AGREEMENT 1.01 In consideration of the purchase price and upon the terms and conditions hereinafter set forth, Seller shall sell to Purchaser and Purchaser shall purchase from Seller the Property described in Exhibit "A ". II. PAYMENT OF PURCHASE PRICE 2.01 The purchase price (the "Purchase Price ") for the Property shall be Five Million Five Hundred Twenty -five Thousand Dollars ($5,525,000)(U.S. Currency) payable at time of closing. Packet Page -139- 7/8/2014 11. C. Ill. CLOSING 3.01 The Closing (THE "CLOSING DATE ", "DATE OF CLOSING ", OR "CLOSING ") of the transaction shall be held on or before thirty (30) days following execution of this Agreement, unless extended by mutual written agreement of the parties hereto. The Closing shall be held at the Collier County Attorney's Office, Administration Building, 3299 Tamiami Trail East, Suite 800, Naples, Florida. The procedure to be followed by the parties in connection with the Closing shall be as follows: 3.011 Seller shall convey a marketable title free of any liens, encumbrances, exceptions, or qualifications. Marketable title shall be determined according to applicable title standards adopted by the Florida Bar and in accordance with law. The Purchaser has reviewed title and accepts title as set forth in the final title commitment at the time of Closing. At the Closing, the Seller shall cause to be delivered to the Purchaser the items specified herein and the following documents and instruments duly executed and acknowledged, in recordable form: 3.0111 Special Warranty Deed in favor of Purchaser conveying title to the Property, free and clear of all liens and encumbrances other than: (a) The lien for current taxes and assessments. (b) Such other easements, restrictions or conditions of record. 3.0112 Combined Purchaser - Seller closing statement. 3.0113 A "Gap," Tax Proration, Owner's and Non - Foreign Affidavit," as required by Section 1445 of the Internal Revenue Code.and as required by the title insurance underwriter in order to insure the "gap" and issue the policy contemplated by the title insurance commitment. 3.0114 A W -9 Form, "Request for Taxpayer Identification and Certification" as required by the Internal Revenue Service. 3.012 At the Closing, the Purchaser, or its assignee, shall cause to be delivered to the Seller a wire transfer in an amount equal to the Purchase Price, subject to adjustment for prorations as set forth herein and as stated on the closing statement. 3.02 Each party shall be responsible for payment of its own attorney's fees. Seller, at its sole cost and expense, shall pay at Closing all documentary stamp taxes due relating to the recording of the Warranty Deed, in accordance with Chapter 201.01, Florida Statutes, and the cost of recording any instruments necessary to clear Seller's title to the Property. The cost of the Owner's Form B Title Policy shall be paid by Purchaser. The cost of the title commitment shall also be paid by Purchaser. Packet Page -140- 7/8/2014 11.C. 3.03 Purchaser shall pay for the cost of recording the Warranty Deed. Real Property taxes shall be prorated based on the current year's tax with due allowance made for maximum allowable discount, homestead and any other applicable exemptions and paid by Seller. If Closing occurs at a date which the current year's millage is not fixed, taxes will be prorated based upon such prior year's millage. IV. INSPECTION 4.01 Purchaser is purchasing the property "As -Is." Seller acknowledges that the Purchaser, or its authorized agents, shall have the right to inspect the Property at any time prior to the Closing. Purchaser shall, in performing such inspections, use due care and shall indemnify Seller on account of any loss or damages occasioned thereby and against any claim made against Seller as a result of Purchaser's entry. The foregoing indemnification shall not constitute a waiver of Purchaser's sovereign immunity beyond the limits set forth in Florida Statutes, Section 768.28, nor shall the same be construed to constitute agreement by the Purchaser to indemnify Seller for Seller's negligent acts or omissions. Seller shall be notified by Purchaser no less than twenty four (24) hours prior to said inspection of the Property. This paragraph shall survive closing. V. POSSESSION 5.01 Purchaser shall be entitled to full possession of the Property at Closing. VI. PRORATIONS 6.01 Ad valorem taxes next due and payable, after closing on the Property, shall be prorated at Closing based upon the gross amount of 2013 taxes, and shall be paid by Seller. VII. TERMINATION AND REMEDIES 7.01 If Seller shall have failed to perform any of the covenants and /or agreements contained herein which are to be performed by Seller, Purchaser shall provide Seller with a written notice of default. Seller may elect to cure the default or notify Purchaser it has elected not to cure the default within ten (10) days of written notification of such default ( "Cure Period "). Seller's failure to provide notice to Purchaser of the option it chooses during the Cure Period shall be deemed an election not to cure the default. If Seller does not cure the default, Purchaser may, at its option, terminate this Agreement by giving written notice of termination to Seller within five (5) days of the expiration of the Cure Period or proceed to Closing and accept the title to the property and the condition of the property "As- Is." Purchaser's failure to timely provide written notice of its election to terminate this Agreement shall be treated as an election to proceed to Closing within thirty (30) days of the expiration of the Cure period. If the Seller refuses to close, Purchaser shall have the right to seek and enforce all rights and remedies available at law or in equity to a contract vendee, including the right to seek specific performance of this Agreement. Packet Page -141- 7/8/2014 11.C. 7.02 If the Purchaser has not terminated this Agreement pursuant to any of the provisions authorizing such termination, and Purchaser fails to close the transaction contemplated hereby or otherwise fails to perform any of the terms, covenants and conditions of this Agreement as required on the part of Purchaser to be performed, provided Seller is not in default, then as Seller's sole remedy, Seller shall have the right to terminate and cancel this Agreement by giving written notice thereof to Purchaser, whereupon one percent (1 %) of the purchase price shall be paid to Seller as liquidated damages which shall be Seller's sole and exclusive remedy, and neither party shall have any further liability or obligation to the other except as set forth in paragraph 10.01 (Real Estate Brokers) hereof. The parties acknowledge and agree that Seller's actual damages in the event of Purchaser's default are uncertain in amount and difficult to ascertain, and that said amount of liquidated damages was reasonably determined by mutual agreement between the parties, and said sum was not intended to be a penalty in nature. 7.03 Should any litigation or other action be commenced between the parties concerning the Property or this Agreement, the party prevailing in such litigation or other action shall be entitled, in addition to such relief as may be granted, to a reasonable sum for its attorney's fees, paralegal charges and all fees and costs for appellate proceedings in such litigation or other action; which sum may be determined by the court or in a separate action brought for that purpose. 7.04 The parties acknowledge that the remedies described herein and in the other provisions of this Agreement provide mutually satisfactory and sufficient remedies to each of the parties, and take into account the peculiar risks and expenses of each of the parties. VIII. SELLER'S AND PURCHASER'S REPRESENTATIONS AND WARRANTIES 8.01 Seller and Purchaser represent and warrant the following: 8.011 Seller and Purchaser have full right and authority to enter into and to execute this Agreement and to undertake all actions and to perform all tasks required of each hereunder. Seller is not presently the subject of a pending, threatened or contemplated bankruptcy proceeding. 8.012 Seller has full right, power, and authority to own and operate the Property, and to execute, deliver, and perform its obligations under this Agreement and the instruments executed in connection herewith, and to consummate the transaction contemplated hereby. All necessary authorizations and approvals have been obtained authorizing Seller and Purchaser to execute and consummate the transaction contemplated hereby. At Closing, certified copies of such approvals shall be delivered to Purchaser and /or Seller, if necessary. 8.013 The warranties set forth in this Article shall be true on the date of this Agreement and as of the date of Closing. Purchaser's acceptance of a deed Packet Page -142- 7/8/2014 11.C. to the Property shall be deemed to be full performance and discharge of every agreement and obligation on the part of the Seller to be performed pursuant to the provisions of this Agreement. 8.014 Seller represents that it has no actual knowledge of any actions, suits, claims, proceedings, litigation or investigations pending or threatened against Seller, at law, equity or in arbitration before or by any federal, state, municipal or other governmental instrumentality that relate to this agreement or any other property that could, if continued, adversely affect Seller's ability to sell the Property to Purchaser according to the terms of this Agreement. 8.015 No party or person other than Purchaser has any right or option to acquire the Property or any portion thereof. 8.016 Until the date fixed for Closing, so long as this Agreement remains in force and effect, Seller shall not encumber or convey any portion of the Property or any rights therein, nor enter into any agreements granting any person or entity any rights with respect to the Property or any part thereof, without first obtaining the written consent of Purchaser to such conveyance, encumbrance, or agreement which consent may be withheld by Purchaser for any reason whatsoever. 8.017 Seller has no actual knowledge of unrecorded restrictions, easements or rights of way (other than existing zoning regulations) that restrict or affect the use of the Property, and there are no maintenance, construction, advertising, management, leasing, employment, service or other contracts affecting the Property. 8.018 Seller has no actual knowledge that there are any suits, actions or arbitration, bond issuances or proposals therefor, proposals for public improvement assessments, pay -back agreements, paving agreements, road expansion or improvement agreements, utility moratoriums, use moratoriums, improvement moratoriums, administrative or other proceedings or governmental investigations or requirements, formal or informal, existing or pending or threatened which affects the Property or which adversely affects Seller's ability to perform hereunder; nor does Seller have actual knowledge there are any other charge or expense upon or related to the Property which has not been disclosed to Purchaser in writing prior to the effective date of this Agreement. 8.019 Seller acknowledges and agrees that Purchaser is entering into this Agreement based upon Seller's limited representations stated above and on the understanding that Seller will not cause the zoning or physical condition of the Property to change from its existing state on the effective date of this Agreement up to and including the Date of Closing. Therefore, Seller agrees not to enter into any contracts or agreements which would change the zoning or physical condition of the Property or the governmental ordinances or laws governing same. Seller also agrees to notify Purchaser promptly of any change in the facts contained in the foregoing representations and of any Packet Page -143- 7/8/2014 11.C. notice or proposed change in the zoning, or any other action or notice, that may be proposed or promulgated by any third parties or any governmental authorities having jurisdiction of the development of the property which may restrict or change any other condition of the Property. 8.020 Any loss and /or damage to the Property between the date of this Agreement and the date of Closing shall be Seller's sole risk and expense. IX. NOTICES 9.01 Any notice, request, demand, instruction or other communication to be given to either party hereunder shall be in writing, sent by registered, or certified mail, return receipt requested, postage prepaid, addressed as follows: If to Purchaser: Real Property Management Facilities Management/Bldg. W Suite 101 3335 Tamiami Trail East Naples, Florida 34112 With a copy to: Jeffrey A. Klatzkow, Esq. Collier County Attorney Office of the County Attorney Administration Building 3299 Tamiami Trail East, Suite 800 Naples, Florida 34112 If to Seller: Asset Recovery XVII1, LLC One Wall Street — 16tH Floor New York, NY 10286 ATT: Gordon Berger, Managing Director With a copy to: BNY Mellon, N.A. 350 Las Olas Blvd., Suite 1400 Ft. Lauderdale, FL 33301 Ate: Alan M. David, Managing Director With a copy to: Richard Yovanovich, Esq. Coleman, Yovanovich & Koester, P.A. 4001 Tamiami Trail North, Suite 300 Naples, FL 34103 9.02 The addressees and addresses for the purpose of this Article may be changed by either party by giving written notice of such change to the other party in the manner provided herein. For the purpose of changing such addresses or 01W Packet Page -144- addressees only, unless addressee and respective effect for all purposes. 7/8/2014 11.C. and until such written notice is received, the last address stated herein shall be deemed to continue in X. REAL ESTATE BROKERS 10.01 Any and all brokerage commissions or fees shall be the sole responsibility of the Seller. Seller shall indemnify Purchaser and hold Purchaser harmless from and against any claim or liability for commission or fees to any broker or any other person or party claiming to have been engaged by Seller as a real estate broker, salesman or representative, in connection with this Agreement. Purchaser shall indemnify Seller and hold Seller harmless from and against any claim or liability for commission or fees to any broker or any other person or party claiming to have been engaged by Purchaser as a real estate broker, salesman or representative, in connection with this Agreement. Seller agrees to pay any and all commissions or fees at closing pursuant to the terms of a separate agreement, if any. XI. MISCELLANEOUS 11.01 This Agreement may be executed in any manner of counterparts which together shall constitute the agreement of the parties. 11.02 This Agreement and the terms and provisions hereof shall be effective as of the date this Agreement is executed by both parties and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, personal representatives, successors, successor trustee, and assignees whenever the context so requires or admits. 11.03 Any amendment to this Agreement shall not bind any of the parties hereof unless such amendment is in writing and executed and dated by Purchaser and Seller. Any amendment to this Agreement shall be binding upon Purchaser and Seller as soon as it has been executed by both parties. 91.04 Captions and section headings contained in this Agreement are for convenience and reference only; in no way do they define, describe, extend or limit the scope or intent of this Agreement or any provisions hereof. 11.05 All terms and words used in this Agreement, regardless of the number and gender in which used, shall be deemed to include any other gender or number as the context or the use thereof may require. 11.06 No waiver of any provision of this Agreement shall be effective unless it is in writing signed by the party against whom it is asserted, and any waiver of any provision of this Agreement shall be applicable only to the specific instance to which it is related and shall not be deemed to be a continuing or future waiver as to such provision or a waiver as to any other provision. co�"'� Packet Page -145- 7/8/2014 11.C. 11.07 If any date specified in this Agreement falls on a Saturday, Sunday or legal holiday, then the date to which such reference is made shall be extended to the next succeeding business day. 11.08 Seller is aware of and understands that the "offer' to purchase represented by this Agreement is subject to acceptance and approval by the Board of County Commissioners of Collier County, Florida. 11.09 If the Seller holds the Property in the form of a partnership, limited partnership, corporation, trust or any form of representative capacity whatsoever for others, Seller shall make a written public disclosure, according to Chapter 286, Florida Statutes, under oath, of the name and address of every person having a beneficial interest in the Property before Property held in such capacity is conveyed to Collier County. (If the corporation is registered with the Federal Securities Exchange Commission or registered pursuant to Chapter 517, Florida Statutes, whose stock is for sale to the general public, it is hereby exempt from the provisions of Chapter 286, Florida Statutes.) 11.10 This Agreement is governed and construed in accordance with the laws of the State of Florida. XII. ENTIRE AGREEMENT 12.01 This Agreement and the exhibits attached hereto contain the entire agreement between the parties, and no promise, representation, warranty or covenant not included in this Agreement or any such referenced agreements has been or is being relied upon by either party. No modification or amendment of this Agreement shall be of any force or effect unless made in writing and executed and dated by both Purchaser and Seller. Time is of the essence of this Agreement. (Remainder of page intentionally left blank) Packet Page -146- IN WITNESS WHEREOF, the parties hereto have signed below. Dated Project/Acquisition Approved by BCC: ATTEST: DWIGHT E. BROCK, Clerk , Deputy Clerk Approved as to corm and legality: Scott R. Teach Deputy County Attorney AS TO SELLER: DATED: WITNESSES: (Signature) (Printed Name) (Signature) (Printed Name) 0 7/8/2014 11. C. COLLIER COUNTY, A POLITICAL SUBDIVISION OF THE STATE OF FLORIDA, BY AND THROUGH ITS BOARD OF COUNTY COMMISSIONERS, AND AS THE EX- OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT Tom Henning, Chairman ASSET RECOVERY XVIII, LLC, a Florida limited liability company BY:_ Name: Title: Packet Page -147- S� G�' 10 7/8/2014 11.C. EXHIBIT "A" The West Y2 of Section 36, Township 49 South, Range 26 East, Less and Except the land South of the Northerly Right -of -Way of Access Road No. 1, According to Road Book 3, Page 8, of the Public Records of Collier County, Florida. Packet Page -148- CA r i 3 � 1 � •G 1 All, .y� -v "n � +Y- a 2s.i'• or+ � � { - t $ N F _ I `.. ". zz �,�t� �P.i zi 3•y,. ,� �.��"s 9 5 d.t Ef r `�'r5� �� r , _` �' E ��, af. P �` � .fr��.';_ x�F F i t /?ray ¢ e J � 3 p'l i � (+ilk 9 S w � k!N f- y7. - "•-'rl �� x a iY to `•+� ,� a t :. ', a c;{ r- rva ¢.. � + k x Y 4 ,�� s�T5 -� � f4 � -� � '�0'��' r'° r t � 7�C ., � c} � 7 ° w: �, a,'` . �C• '�'y "`r" z4w [� ur;ywE r sf � �h lE o � �. �� r+t' •�y `� r� "F h';�•< r f! "t -t `:n �, � ' � t -� � ®��, (,v � rep � �,.�''� � , 5 l 7/8/2014 11.C. *APPRAISAL AND CONSULTING REAL ESTATE APPRAISAL REPORT WHITE LAKE BOULEVARD ACREAGE Vacant Agricultural Land White Lake Boulevard Naples, Collier County, Florida, 34117 PREPARED FOR: Mr. Roosevelt Leonard Real Property Management Collier County 3301 Tamiami Trail East, Suite 101 Naples, FL 34112 Client File: Landfill Expansion; PO No. 4500150255 EFFECTIVE DATE OF THE APPRAISAL: April 15, 2014 DATE OF THE REPORT: May 12, 2014 REPORT FORMAT: Appraisal Report PREPARED BY: RKL APPRAISAL AND CONSULTING, PLC RKL File Number: 2014 -110 InCIIeL M. ZUCCHI. MAI 4500 Executive Drive, Suite 300 Naples, FL 34119 -8908 G. Lo>'RY, MAI. CPA Phone: 239 -596 -0800 OUIS C. BOBWT, MAI www.rk-lac.com Packet Page -150 7/8/2014 11.C. White Lake Boulevard Acreage White Lake Boulevard Naples, Florida Packet Page -151- 7/8/2014 11.C. APPIZAISAL AND CONSULTING May 12, 2014 Mr. Roosevelt Leonard Collier County 3301 Tamiami Trail East, Suite 101 Naples, FL 34112 Re: Real Estate Appraisal White Lake Boulevard Acreage White Lake Boulevard, Naples, Collier County, Florida, 34117 Client File: Landfill Expansion; PO No. 4500150255 RKL File Number: 2014 -110 Dear Mr. Leonard: At your request, RKL Appraisal and Consulting, PLC has prepared the accompanying appraisal for the above referenced property. The purpose of the appraisal is to estimate the market value of the fee simple interest in the subject property and the liquidation value with a six (6) month marketing period. The intended users for the assignment are Collier County, Real Property Management, and the intended use of the appraisal is for to assist the client in internal decision making purposes. We use the appraisal report option of Standards Rule 2 -2 of USPAP to report the assignment results. Please reference the appraisal scope section of this report for important information regarding the scope of research and analysis for this appraisal, including property identification, inspection, highest and best use analysis, and valuation methodology. The accompanying appraisal conforms with the Uniform Standards of Professional Appraisal Practice ( USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and the appraisal guidelines of Collier County. The appraisal also conforms with the appraisal regulations issued in connection with the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The subject is a vacant parcel of land containing a gross area of 305.60 acres, or 13,311,944 square feet. The parcel consists of approximately 204 acres of uplands and 101.60 acres of wetlands. It is currently zoned Rural Agricultural District (A). The Future Land Use element of the Growth Management Plan of Collier County designates the subject property as Agricultural / Rural Designation: Rural Industrial District. ACHEL M. ZUCCHI. MAI C. LOWRY. MAI. CPA OUTS C. BOHM. MAI Packet Page -152- 4500 Executive Drive, Suite 300 Naples, FL 34119 -8908 Phone: 239 -596 -0800 www.rklac.com 7/8/2014 11.C. Mr. Roosevelt Leonard Collier County May 12, 2014 Page 2 Based on the appraisal described in the accompanying report, subject to the Limiting Conditions and Assumptions, Extraordinary Assumptions and Hypothetical Conditions (if any), I have made the following value conclusion(s): VALUE CONCLUSIONS Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value, As Is Fee Simple April 15, 2014 $6,000,000 Liquidation Value Fee Simple April 15, 2014 $3,900,000 The value conclusion(s) are subject to the following hypothetical conditions and extraordinary conditions. These conditions may affect the assignment results. Hypot hetical Conditions: None. Extraordinary Assum tions: None. Respectfully submitted, RKL APPRAISAL AND CONSULTING, PLC (;.,v "v �a� Rachel M. Zucchi, MAI, CCIM Florida State- Certified General Real Estate Appraiser RZ #2984 rzucchi @rklac.com; Phone 239 -596 -0800 Ext. 203 ACHEL M. ZLJCCHL MAI C. LOWRY, MAI. CPA IS C. 1301313M, MAI Packet Page -153- 4500 Executive Drive, Suite 300 Naples, FL 34119 -8908 Phone: 239 - 596 -0800 www.rklac.com WHITE LAKE BOULEVARD ACREAGE TABLE OF CONTENTS 7/8/2014 11.C. TABLE OF CONTENTS Summary of Important Facts and Conclusions .................................... ............................... 1 Introduction Information ...................................................................... ............................... 2 SubjectIdentification ....................................................................... ............................... 2 Current Ownership and Property History ........................................ ............................... 2 AppraisalScope ............................... 3 ............................................................................... Client, Intended User, and Intended Use ......................................... ............................... 3 Definition of Market Value and Liquidation Value ......................... ............................... 3 Definition of Property Rights Appraised ......................................... ............................... 4 Purpose of Appraisal, Property Rights Appraised, and Dates ......... ............................... 4 Scopeof Work ................................................................................. ............................... 5 EconomicAnalysis .............................................................................. ............................... 6 National Economic Analysis ............................................................ ............................... 6 Florida Economic Anal ysis .............................................................. ............................... 8 Collier County Area Analysis .......................................................... ............................... 9 MarketArea Analysis .................................................................... ............................... 18 Property Description and Analysis .................................................... ............................... 22 SiteAnalysis .................................................................................. ............................... 22 Real Estate Taxes and Assessments ............................................... ............................... 33 Highestand Best Use ..................................................................... ............................... 34 ValuationMethodology ..................................................................... ............................... 37 AnalysesApplied ........................................................................... ............................... 38 Sales Comparison Approach .......................................................... ............................... 39 Reconciliation................................................................................ ............................... 47 FinalValue Conclusion .................................................................. ............................... 47 LiquidationValue .......................................................................... ............................... 48 Certification....................................................................................... ............................... 52 Assumptions and Limiting Conditions .............................................. ............................... 54 Addenda Appraiser Qualifications ................................. ............................... .......................Addendum A Financials and Property Information ..................................... ............................... Addendum B ComparableData ................................................................... ............................... Addendum C Letterof Authorization ................................... ............................... ....................... Addendum D *RKL Packet Page -154- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGESUMMARY OF IMPORTANT FACTS AND CONCLUSIONS SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Land Area: GENERAL Subject: White Lake Boulevard Acreage White Lake Boulevard, Naples, Flood Zone: Collier County, Florida, 34117 Owner: Asset Recovery XVII1 LLC Legal Description: The West 1/2 of Section 36, Township 49 South, Range 26 East, As if Vacant Less and Except the land South of the Northerly Right of Way of Exposure Time Access Road No. 1, according to Road Book 3, Page 8, of the Marketing Period Public Records of Collier County, Florida. Tax Identification: 00298480005 Intended Use: The intended use is for to assist the client in internal decision making purposes. Intended User(s): Collier County, Real Property Management PROPERTY Land Area: Gross: 305.60 acres; 13,311,944 square feet Extraordinary Assum tions: Uplands: 204.00 acres; 8,886,248 square feet Wetlands: 101.60 acres; 4,425,696 square feet Flood Zone: Zone AH Zoning: A - Rural Agricultural District Highest and Best Use As if Vacant Future industrial/business park development Exposure Time 12 months Marketing Period 12 months VALUE INDICATIONS Value Range of Comparables: $10,517 to $23,398 per acre Reconciled Value(s): As Is Liquidation Value Value Conclusion(s) $6,000,000 $3,900,000 Effective Date(s) April 15, 2014 April 15, 2014 Property Rights Fee Simple Fee Simple The value conclusion(s) are subject to the following hypothetical conditions and extraordinary conditions. These conditions may affect the assignment results. Hypot hetical Conditions: None. Extraordinary Assum tions: None. Page 1 Packet Page -155- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE INTRODUCTION INFORMATION INTRODUCTION INFORMATION SUBJECT IDENTIFICATION Subject: White Lake Boulevard Acreage White Lake Boulevard. Naples, Collier County, Florida. 34117 Legal Description: The West 1/2 of Section 36, Township 49 South, Range 26 East, Less and Except the land South of the Northerly Right of Way of Access Road No. 1, according to Road Book 3. Page 8. of the Public Records of Collier County, Florida. Tax Identification: 00298480005 The subject is a vacant parcel of land containing a gross area of 305.60 acres, or 13,311,944 square feet. The parcel consists of approximately 204 acres of uplands and 101.60 acres of wetlands. It is currently zoned Rural Agricultural District (A). The Future Land Use element of the Growth Management Plan of Collier County designates the subject property as Agricultural / Rural Desi�(natiom Rural Industrial District. CURRENT ONN'NERSHIP AND PROPERTY HISTORY Owner: Asset Recovery XVIII LLC Sale History: A Certificate of Title was filed on September 12, 2012 with the Collier County Clerk of Courts, OR 4839, PG 888. transferring title from VN'allace L. Lewis, Jr. individually, and Marian Holly Lewis Gerace a/k/a Marian H. Lewis. individually (Defendants) to MUNB Loan Holdirngs, LLC a fbreiun limited liability company, as successor in interest to Mellon United National Bank (Plaintiff) as part of foreclosure proceedings. Current The subject is not currently listed for sale, or under Listing /Contract(s): contract. To the best of our knowled ,e, no other sale or transfer of ownership has occurred within the past three rears. Collier County has reportedly negotiated a purchase price of S5.5-15.000, however. details of pending contract were not provided for the purpose of this appraisal. Page 2 Packet Page -156- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE INTRODUCTION INFORMATION APPRAISAL SCOPE According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser's responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider: • the client and any other intended users; • the intended use of the appraiser's opinions and conclusions; • the type and definition of value; • the effective date of the appraiser's opinions and conclusions; • subject of the assignment and its relevant characteristics • assignment conditions • the expectations of parties who are regularly intended users for similar assignments; and • what an appraiser's peer's actions would be in performing the same or a similar assignment. CLIENT, INTENDED USER, AND INTENDED USE The client and the intended user of the appraisal are Collier County, Real Property Management. The intended use is for to assist the client in internal decision making purposes. The appraisal is not intended for any other use or user. DEFINITION OF MARKET VALUE AND LIQUIDATION VALUE Market value is defined by The Dictionary of Real Estate Appraisal Srh Edition: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and • The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." (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) Page 3 Packet Page -157- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE INTRODUCTION INFORMATION Liquidation Value as defined by The Dictionary of Real Estate Appraisal 5`h Edition is the most probable price that a specified interest in real property should bring under the following conditions: • Consummation of a sale within a short time period. • The property is subjected to market conditions prevailing as of the date of valuation. • Both the buyer and seller are acting prudently and knowledgeably. • The seller is under extreme compulsion to sell. • The buyer is typically motivated. • Both parties are acting in what they consider to be their best interests. • A normal marketing effort is not possible due to the brief exposure time. • Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. • 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. DEFINITION OF PROPERTY RIGHTS APPRAISED Fee simple estate is defined as an: "Absolute ownership interest unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." (Source: The Dictionary of Real Estate Appraisal, Fifth Edition, 2010.) PURPOSE OF APPRAISAL, PROPERTY RIGHTS APPRAISED, AND DATES The purpose of the appraisal is to estimate the market value of the fee simple interest in the subject property and the liquidation value with a six (6) month marketing period. The effective date of the subject appraisal is April 15, 2014. The date of inspection was April 15, 2014. The date of the report is May 12, 2014. Page 4 Packet Page -158- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE INTRODUCTION INFORMATION SCOPE OF WORK The problem to be solved is to estimate the market value of the fee simple interest in the subject property and the liquidation value with a six (6) month marketing period. SCOPE OF WORK Report Type: This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2 -2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. Property Identification: The subject has been identified by the legal description and the assessors' parcel number. Inspection: A complete on site inspection was made and photographs were taken. Market Area and Analysis of A complete analysis of market conditions has been made. Market Conditions: The appraiser maintains and has access to comprehensive databases for this market area and has reviewed the market for sales and listings relevant to this analysis. Highest and Best Use Analysis: A complete as vacant highest and best use analysis for the subject has been made. Physically possible, legally permissible, and financially feasible uses were considered, and the maximally productive use was concluded. Valuation Analvses Cost Approach: A cost approach was not applied as there are no improvements that contribute value to the property. Sales Comparison Approach: A sales approach was applied as typically this is the most appropriate approach for the valuation of vacant land. This approach is applicable to the subject because there is an active market for similar properties and sufficient sales data is available for analysis. Income Approach: An income approach was not applied as the subject is not likely to generate rental income as vacant land. Hypothetical Conditions: None. Extraordinary Assumptions: None. Comments The individual sections of the report detail the additional research, confirmation, and analysis of relevant data. Page 5 Packet Page -159- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE NATIONAL ECONOMIC ANALYSIS ECONOMIC ANALYSIS NATIONAL ECONOMIC ANALYSIS The lingering effects of the financial crisis of 2008 and the Great Recession were felt throughout 2011 and 2012. While the recession officially ended in the middle of 2009, a sustained recovery is still not underway. The fourth quarter 2013 survey commissioned by the Philadelphia Federal Reserve Bank which included 42 professional economic forecasters predict real GDP will grow at an annual rate of 2.6% in 2014, 2.8% in 2015, and 2.7% in 2016. The professional economic forecasters project unemployment to average 7.5% in 2013, 7.0% in 2014, 6.4% in 2015 and 6.0% in 2016. The following table details economic forecasts by the professional economic forecasters. As of the fourth quarter 2013, the forecasters have slightly lower inflations projections over their third quarter 2013 estimates. Core CPI is projected at 1.9% in the first two quarters of 2014, increasing to 2.0% in the last two quarters. The Federal Reserve Open Market Committee (FOMC) recently released statements suggesting that economic activity has been expanding at a moderate pace. According to the December 18, 2013 Press Release, some indicators of labor market conditions have shown further improvement; the unemployment rate has declined but remains elevated. Household spending and business fixed investment advanced, and the housing sector has slowed somewhat in recent months. Fiscal policy is restraining economic growth, although the extent of restraint may be diminishing. Inflation has been running below the Committee's longer -run objective, but longer -term inflation expectations have remained stable. Taking into account the extent of federal fiscal retrenchment since the inception of its current asset purchase program, the Committee sees the improvement in economic activity and labor market conditions over that period as consistent with growing underlying strength in the broader economy. In light of the cumulative progress toward Page 6 Packet Page -160- Median Forecasts for Seleered Variables hi tae Current and Pns lour Stirrers Real GDP ! °o! Unctirplo*%1mvnrRare ( ?0 Palrolls fO00shnonth) Previous 4Tnr Pivi ous :vets, P'reriotis New 0rxarrerl- aarrr. 2013.Q4 23 1.5 7.3 72 175.6 187.3 2014.Q1 2_7 ?_5 7.2 7.1 171.2 187.0 2014.-Q2 29 2.9 7.1 7.Q 155.4 193.5 2014:Q3. 29 2.9 7.0 6.9 151.4 201.8 2014:Q4 N-A. 2.9 N_A. 6.9 N.A. 202.1 .innual data (projeeriairs are based on arrrsrral avvrage levels): 2013 1.5 1.7 7.5 7.5 183.5 181.9 2014 2.6 16 7.1 7.0 1801 189.9 2015 29 2.8 6.6 6.4 N A. N.A. 2016 2.5 2.7 61 6.0 X. A. NA- As of the fourth quarter 2013, the forecasters have slightly lower inflations projections over their third quarter 2013 estimates. Core CPI is projected at 1.9% in the first two quarters of 2014, increasing to 2.0% in the last two quarters. The Federal Reserve Open Market Committee (FOMC) recently released statements suggesting that economic activity has been expanding at a moderate pace. According to the December 18, 2013 Press Release, some indicators of labor market conditions have shown further improvement; the unemployment rate has declined but remains elevated. Household spending and business fixed investment advanced, and the housing sector has slowed somewhat in recent months. Fiscal policy is restraining economic growth, although the extent of restraint may be diminishing. Inflation has been running below the Committee's longer -run objective, but longer -term inflation expectations have remained stable. Taking into account the extent of federal fiscal retrenchment since the inception of its current asset purchase program, the Committee sees the improvement in economic activity and labor market conditions over that period as consistent with growing underlying strength in the broader economy. In light of the cumulative progress toward Page 6 Packet Page -160- 7/8/2014 11. C. WHITE LAKE BOULEVARD ACREAGE NATIONAL ECONOMIC ANALYSIS maximum employment and the improvement in the outlook for labor market conditions, the Committee decided to modestly reduce the pace of its asset purchases. Beginning in January, the Committee will add to its holdings of agency mortgage- backed securities at a pace of $35 billion per month rather than $40 billion per month, and will add to its holdings of longer -term Treasury securities at a pace of $40 billion per month rather than $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage- backed securities in agency mortgage- backed securities and of rolling over maturing Treasury securities at auction. The Committee's sizable and still- increasing holdings of longer -term securities should maintain downward pressure on longer -term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative, which in turn should promote a stronger economic recovery and help to ensure that inflation, over time, is at the rate most consistent with the Committee's dual mandate. To support continued progress toward maximum employment and price stability, the Committee reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. The Committee also reaffirmed its expectation that the current exceptionally low target range for the federal funds rate of 0 to 1/4 percent will be appropriate at least as long as the unemployment rate remains above 6 -1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer -run goal, and longer -term inflation expectations continue to be well anchored. In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. The Committee now anticipates, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6-1/2 percent, especially if projected inflation continues to run below the Committee's 2 percent longer -run goal. When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer -run goals of maximum employment and inflation of 2 percent. The following table shows Economic Projections of Federal Reserve Board Members and Bank Presidents as of December 2013. .i 12 t.., _..1 . Iu a.J 2. au k — i . ., h: .A i (, . . �I 2<: _i �. ., ., a S•t ....1 . s �.. r, .i..t 71 -, i.e ;rl a., '.l 7 x, t;� ,: w• .s 1 V, ii I ,,.t t , 6,2 .r;. ,. n::i.?" 6'7 rr. 7 '1 1x+.91,9 . ,.. .. h. I..tv.,,.0 I ,__::I _SI iu... 1i: t,. 2,11 l'ia., 2.0 _2 ..2 4e,. �A) J_,. t, 7' 1'1,.;11 I i .`91 I 1..91..;"0 I _.I 4:, .,., I S l,: p1 2.! z� a , t I 19.alj 7 t i 11'1'14 y 1 I! tom, Ir (f o l n , 7 v.,i a. r= hw u,. 0h 1 Page 7 Packet Page -161- 7/8/2014 11. C. WHITE LAKE BOULEVARD ACREAGE FLORIDA ECONOMIC ANALYSIS FLORIDA ECONOMIC ANALYSIS The outlook for Florida according to real estate and economic experts has improved dramatically since mid 2010. Florida's economy is expected to keep growing through 2014. A Federal Reserve index that tries to predict state -by -state economic growth for the short term shows an expanding economy in Florida. According to the January 2014 Leading Indexes statement of The Philadelphia branch of the Federal Reserve, Florida's economy should grow by 1.5% to 4.5% over the next six months, which is similar to the projected growth for the U.S. of 1.5 %. The Institute for Economic Competitiveness at the University of Central Florida prepares a Florida Forecast report for the state and select metro areas. According to their December 2013 report, they project that unemployment rates in Florida will continue to decline reaching 6.1 % by 2017. Table 1. Annual Summary of the University of Central Florida Forecast for Florida 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 As of November 2013, the preliminary unemployment rate of the State of Florida was 6.4% and the National rate in December 2013 was 6.7 %. The following chart, prepared by Fishkind & Associates Economic Consultants, shows the substantial employment decline in 2010, and the significant projected gains for 2014 through 2016 for the State of Florida. Increasing population growth is also shown through 2016. Page 8 Packet Page -162- Personal Income and GSP Personal Income (Bit. S) 7362 696.5 725A 7613 7913 816.4 861.9 905.6 956.8 1015A Florida.( %Ch Year ago) 0.6 -5.4 4.2 5.0 4.1 3.1 5.6 5.1 5.7 6.2 U.S.( %Ch Year ago) 3.6 -18 2.9 6.1 42 2.8 4.5 4.5 4.8 4.9 Personal income (Bit. 20055) 678.8 642.6 658.4 674.8 689.5 702.7 732.5 758.2 788.5 825.4 Florida.( %Ch Year ago) -2.4 -5.3 2.5 2.5 12 1.9 4.2 3.5 4.0 4.7 U.S.( %Ch Year ago) 0.6 -2.7 12 3.6 2.3 1.7 12 10 12 3.4 Qisp. income (Bit. 2005$) 614.7 593.2 606.1 615.9 627.9 634.5 660.3 683.6 711.8 745.8 Fonda.( %Ch Year ago) -0.9 -3.5 2.5 1.3 1.9 1.1 4.1 15 4.1 4.8 U.S.( %Ch Year ago) 2.4 -2.8 1.8 1.3 1.5 0.6 3.6 3.6 3.4 2.9 GSP (Bil. $) 748.1 721.2 728.0 746A 7772 805.5 839.8 882.3 927.8 9710 ( %^h Year aao) -1.7 -3.6 0.9 2.5 4.1 16 4.3 5.1 5.2 4.8 GSP (Gil. 2005$) 689.4 648.6 650.3 656.3 673.2 6894 7071 730.1 754.2 776.5 ( %Ch Year ago) -15 -5.9 03 0.9 2.6 2.4 2.6 3.3 3.3 3.0 Employment and Labor Force (Household Survey % Change Year Ago) Employment -2.3 -5,6 -0.1 2.2 2.9 2.0 2.7 1.8 1.5 1.3 Labor Force 0.1 -1.3 0.8 1.1 1.0 0.3 2.1 1.5 1.3 1.2 FL Unemployment Rate ( %) 6.3 10.4 11.3 10.3 8.6 7.1 6.6 6.3 6.1 6.0 U.S. Unemployment Rate ( %) 5.8 93 9.6 8.9 8.1 7.5 7.0 6.6 63 6.1 As of November 2013, the preliminary unemployment rate of the State of Florida was 6.4% and the National rate in December 2013 was 6.7 %. The following chart, prepared by Fishkind & Associates Economic Consultants, shows the substantial employment decline in 2010, and the significant projected gains for 2014 through 2016 for the State of Florida. Increasing population growth is also shown through 2016. Page 8 Packet Page -162- 7/8/2014 11. C. WHITE LAKE BOULEVARD ACREAGE COLLIER COUNTY AREA ANALYSIS • i • VON 00"_ FISHKI ND Fishkind & Associates Economic Consultants projects unemployment will be 6.1% by 2015 and 2016. COLLIER COUNTY AREA ANALYSIS Collier County has long been an attractive place to retire and it continues to be an area that experiences a great deal of seasonal population increases. According to the Collier County Comprehensive Planning Department, Collier County's population increases by an estimated one -third between November and April due to seasonal residents and short- term agricultural workers in the Immokalee area. The population increase creates a high degree of seasonality within the retail, service, and hospitality sectors of Collier County's economy. Page 9 Packet Page -163- 2010 2011 202 2013 2614 2015 2016 Population 18.845.828 19.082.088 19.317.241 19.814.451 89.951.138 20.301,827 211,645,071 Population Change 191945 236.575 237,025 299.155 338.720 352,784 345.139 Employment 5,952,076 7,032811'1 7,168,913 7,342782 7.527239 7,720,792 7,921,474 Employmem Change (8',342) 89.615 139,223 173.869 394.456 103,553 260,882 Per Gaon. income 3£.253 38,633 38,939 39.801 40.668 41,472 42.106 Unemploym Rate 11.3 10.2 8.8 7.1 8.8 8.1 5.1 7otal .-lousing Stars 32,844 316, 154 53.413 04,078 118.7 145,7C0 148,808 Single- Family 25.069 30.341 39.643 70. 394 87,148 404,593 114.127 Mufti- Family 5,875 7.813 13,770 24.484 31.574 37,168 34,481 Mew Single-Family Cimngs 21.459 24.272 27.337 38,679 63,175 76,433 98,683 New Single - Family Pn— 248.588 229.644 249,757 289-.°39 285.595 296,733 320,641 Existing Single- Family Closings 205,509 216,748 23`0, 951 257,884 278.418 278.431 242,684 Existing Single- Family Price 193,947 192.281 203.891 223.657 231,308 238,516 249,981 New Condominium Closmgs 6,683 5,194 3.875 5.677 9,786 11,589 11,8'15 New Condominium Pnoe 278,939 259.5% 281,482 254,419 258.488 261 "?4 270,778 Existing Cmd minium Closings 02,912 105.182 141,415 112402 11C,325 89,990 94,982 Existing Contlominium Face 155.926 185,741 162.632 2D3.987 210,140 216.478 223,880 Foreclosures 245,529 130.770 157,309 102,593 77.910 68,095 53,495 Commercial Canso bttn iSq. Ft..) 51.054,259 34,728,705 39,836,812 63.374,402 87,585.680 94.675.529 96.720,143 Local Retail 5. 727.558 5,398.001 7,895,305 10,330.959 13,719.787 14,711,451 15,028,381 Regiertal Retool 7.073,992 4,587.472 4,497,374 7.734,430 10,211.354 10.995,078 11.293,503 1111.e 9.859,1221 8,657,658 5.824,206 13,606205 14.575.245 15.031,120 18,362;805 Irdustual 1,202,989 1,970.249 1.025.430 1265.331 4,277,982 4,640,504 4,792,784 V4 house 3.874,520 4,828,768 4,067,164 10.845.915 17.022..668 19.053.073 19,62,522 Hctel 3.529,754 2437.956 2999,272 4.326.329 5,1:,13:594 8.394,425 8,194.031 Hosmal 1413,934 889.616 1,595.891 435.101 1.315.998 767.781 771,807 Fishkind & Associates Economic Consultants projects unemployment will be 6.1% by 2015 and 2016. COLLIER COUNTY AREA ANALYSIS Collier County has long been an attractive place to retire and it continues to be an area that experiences a great deal of seasonal population increases. According to the Collier County Comprehensive Planning Department, Collier County's population increases by an estimated one -third between November and April due to seasonal residents and short- term agricultural workers in the Immokalee area. The population increase creates a high degree of seasonality within the retail, service, and hospitality sectors of Collier County's economy. Page 9 Packet Page -163- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE COLLIER COUNTY AREA ANALYSIS Collier County is also less than 150 miles from Fort Myers, Fort Lauderdale, Miami, Sarasota, and West Palm Beach as shown in the following table. Distance to Other Major Markets Metro Area Miles Fort Myers 44 Jacksonville 378 Fort Lauderdale 107 Tallahassee 435 Miami 128 Atlanta 616 Sarasota 120 New York 1,311 West Palm Beach 150 Dallas 1,315 Tampa 169 Chicago 1,335 Orlando 238 Population The Collier County historical population trends are shown in the following graph. 400,000 350,000 3 00, 000 250,000 200,000 150,000 100,000 50,000 0 Collier County Population Trends 1960 1970 1980 1990 2000 2004 2005 2006 2007 2008 2010 Source: University of Florida, Bureau of Economic and Business Research Page 10 Packet Page -164- 7/8/2014 11. C. WHITE LAKE BOULEVARD ACREAGE COLLIER COUNTY AREA ANALYSIS Population projections for Charlotte, Collier, and Lee Counties are shown in the following table. As shown, total population is projected to increase in all three Southwest Florida counties with the greatest growth projected in Lee County. Southwest Florida Population Projections Source: SiteToDo Business The following table shows population projections by Fishkind & Associates, Inc. As shown, the average annual overall population growth projection is 2.2% through 2015. Collier Econocast 2013 2018 Percent County 2015 ESTIMATE Overall Average Population Projection Change Charlotte County 164,223 171,326 4.33% Collier County 331,765 352,335 6.20% Lee County 642,626 697,416 8.53% Total 1,138,614 1,221,077 7.249/o Source: SiteToDo Business The following table shows population projections by Fishkind & Associates, Inc. As shown, the average annual overall population growth projection is 2.2% through 2015. Collier Econocast The following table details the Collier County population by area. The Corkscrew and Urban Estates planning areas are projected to experience the largest population growth through 2015, followed by Immokalee and North Naples. COLLIER COUNTY 2010 2012 2013 2014 2015 ESTIMATE Overall Average PROJECTION 2009 2010 2011 2012 2013 2014 2015 Projection Population 318,485 322,666 327,519 332,427 338,671 345,950 353,795 20,508 Population Change 1,844 4,181 4,853 4,908 6,244 7279 7,845 7,562 Population % Change 0.6% 1.3% 1.5% 1.5% 1.9% 2.1% 2.3% 2.2% Source: Fishkind & Associates, Inc. June 20] 3 26.687 20.698 Marco Islam 5';.,383 59,673 60.337 61.014 The following table details the Collier County population by area. The Corkscrew and Urban Estates planning areas are projected to experience the largest population growth through 2015, followed by Immokalee and North Naples. COLLIER COUNTY 2010 2012 2013 2014 2015 ESTIMATE PROJECTION PROJECTION PROJECTION PROJECTION corf'scre)A' 2,736 5,069 6.270 7,.495 5,743 Big Cypress 205 211 214 218 221 Central Naples 213.433 20,508 20,670 20,733 20..797 Eas Naples 25,758 25,1388 25.950 25,013 26.077 Golden Gate 45.016 45,517 45,926 46,241 46,5+62 Im okalee 24.831 26.722 27.695 26.687 20.698 Marco Islam 5';.,383 59,673 60.337 61.014 61,7014 North Naptes 14 664 15,4'4 16.e47 17,334 18,034 Royal ;Fakapa n, H5,347 316,973 37.2F- 37,623 37,058 Rura? cStates 2-0,468 2D,608 20.670 20,733 20,797 South Naples 37,831 39,449 40233 41,132 41.998 > ftr anE stater 2,736 5'D69 6270 7,495 8,743 COLLIER COUNTY 2010 2012 2013 2014 2015 PROJECTION PROJECTION PROJECTION PROJECTION City of Naples 19.537 222,432 22.699 22,969 23,242 Cray of tal3T40 Island 16A13 1£,996 17,177 17,357 17,533 7 Evera;ades CttV, 430 671 6765 681 0686 C i'i - C:ou y i­,­- Ft­. G -_� mervt, -�.:r Vi tr -1,12 Page 11 Packet Page -165- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE COLLIER COUNTY AREA ANALYSIS Employment The local economy is largely dependent on the real estate market which is in recovery after a recessionary period. As with population growth, the national recession and depressed real estate market caused a decline in overall employment consisting mainly of construction related jobs. The following table shows Collier County employment by major industry division for the 2Q of 2013. Florida Employment and Wages Collier County unemployment peaked in September 2009 at 13.1%, and has been generally declining since. The preliminary reported unemployment rate in November 2013 was 5.8% which is the lowest November rate since November 2007 which was 5.0 %. The annual Collier County rate peaked in 2010 at 11.6% and declined in 2011 to 10.2% and in 2012 to 8.5 %. The rate in 2013 YTD has ranged from a low of 5.8% in November 2013 to a high of 7.6% in July 2013. Local Area Unemployment Statistics Series Id: LkII?n12140003 Nct Seascnallx -Adjusted krea: Ccllier Ccuaty, FL Area 'T=ype: Ccunties =rid equivalents State /Regicn/Di�„,isien- F1c_ida Measure: unemFlcyment rate 12. a, 1 C 0 7. m 2. U I)u3 ullU4 ul!UU u17UU U17ut u1fU0 uVU. u111u U1111 u1t1t u111J Month Page 12 Packet Page -166- Enlployrrlent Average Monthly Average Industry Title Apr -13 May -13 Jun -13 Total Wages Employment Ouanedy Wage Total, All Industries 126,033 123,584 115,059 $1,261,479,647 121,559 $10,378 SeNce- Prodding 107,050 105,110 97,917 $1,097,338,338 103,359 $10,617 Leisure and Hospitality 26,582 25,120 23,411 $173,474,005 25,038 $6,929 Trade, Transportation, and Utilities 23,558 23,354 23,114 $207,979,161 23,342 $8,910 Education and Health Services 24,839 24,740 19,585 $307,283,855 23,055 $13,328 Retail Trade 18,812 18,605 18,450 $140,415,865 18,622 $7,540 Goods- Producing 18,983 18,474 17,142 $164,141,309 18,200 $9,019 Accommodation and Food Services 18,306 17,388 16,495 $105,473,227 17,396 $6,063 Health Care and Social Assistance 16,853 16,861 16,416 $203,653,369 16,710 $12,188 Professional and Business SeMces 12,894 12,900 12,940 $159,782,589 12,911 $12,375 Construction 91631 9,914 10,118 $97,666,143 9,888 $9,878 Administrative and Waste Services 7,201 7,312 7,301 $59,364,439 7,271 $8,164 Arts, Entertainment, and Recreation 8,276 7,732 6,916 $68,000,778 7,641 $8,899 Financial Activities 6,764 6,786 6,781 $112,608,348 6,777 $16,616 Public Administration 5,258 5,271 5,357 $70,655,312 5,295 $13,343 Other Services, Except Public Administration 5,712 5,513 5,290 $43,555,307 5,505 $7,912 Professional and Technical SeMces 4,894 4,795 4,827 $75,709,523 4,839 $15,647 Natural Resources and Mining 6,383 5,519 3,945 $33,444,169 5,282 $6,331 Agriculture, Forestry, Fishing and Hunting 6,360 5,495 3,922 $33,086,636 5,259 $6,291 "Source: Florida Dapartnent of Economc Opportunity, 20 2013 Collier County unemployment peaked in September 2009 at 13.1%, and has been generally declining since. The preliminary reported unemployment rate in November 2013 was 5.8% which is the lowest November rate since November 2007 which was 5.0 %. The annual Collier County rate peaked in 2010 at 11.6% and declined in 2011 to 10.2% and in 2012 to 8.5 %. The rate in 2013 YTD has ranged from a low of 5.8% in November 2013 to a high of 7.6% in July 2013. Local Area Unemployment Statistics Series Id: LkII?n12140003 Nct Seascnallx -Adjusted krea: Ccllier Ccuaty, FL Area 'T=ype: Ccunties =rid equivalents State /Regicn/Di�„,isien- F1c_ida Measure: unemFlcyment rate 12. a, 1 C 0 7. m 2. U I)u3 ullU4 ul!UU u17UU U17ut u1fU0 uVU. u111u U1111 u1t1t u111J Month Page 12 Packet Page -166- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE COLLIER COUNTY AREA ANALYSIS As of November 2013, the preliminary unemployment rate for the State of Florida was 6.4 %, down from a peak of 11.7% in January and August 2010. On a national level, the unemployment rate in December 2013 was 6.7 %. Collier County currently has a lower rate than both the state and national levels. The local economy is largely dependent on the real estate market which is in recovery after a recessionary period. The following table from the U.S. Department of Labor shows Naples /Marco Island employment from 2005 through November 2013. As shown, there were significant declines in construction employment due mainly to the downturn in the real estate market. Goods producing employment also decreased significantly. Service producing employment has increased an average of 1.4% to 3.7% per year since 2010. Both goods producing and construction employment had increases in 2012 (4.3% and 4.4% respectively). However, both are still below the 2006 peak employment levels and construction employment is still significantly below pre 2009 levels. Leisure and hospitality employment has also increased over the past four years. Overall total non- farm employment has increased at a rate of 2.7% to 3.3% per year since 2010. The 2013 YTD employment is slightly below 2012 at -0.4 %. 'Through November 2013 Source: U.S. Depart ment of Labor The following projection by Fishkind & Associates, Inc. shows average annual projected growth projections of 2.3% in 2014 and 2.9% in 2015. Collier Econocast Naples - Marco Island Overall Average 2009 Service- % Goods % Mining, Logging, & % Leisure and % All Employees, % Year Providing Change Producing Change Const. Change Hospitality Change Total Nonfarm Change 2005 101,500 - 23,500 - 20,300 - 21,800 - 132,000 - 2006 104,600 3.1% 27,200 15.7% 23,900 17.7% 22,200 1.8% 135,600 2.7% 2007 105,900 1.2% 22,900 -15.8% 19,700 -17.6% 23,300 5.0% 129,400 -4.6% 2008 102,900 -2.8•� 17,400 -24.0% 14,400 -26.9% 22,800 -2.1% 118,700 -8.3% 2009 97,000 -5.7% 13,000 -25.3% 10,400 -27.8% 21,000 -7.9% 111,400 -6.1% 2010 98,400 1.4% 11,500 -11.5% 9,100 -12.5% 21,300 1.4% 115,100 3.3% 2011 102,000 3.7% 11,500 0.0% 9,000 -1.1% 22,600 6.1% 118,500 3.0% 2012 105,200 3.1% 12,000 4.3% 9,400 4.4% 23,600 4.4% 121,700 2.7% 2013" 108,800 3.4% 12,400 3.3% 9,800 4.3% 24,500 3.8% 121,200 -0.4% 'Through November 2013 Source: U.S. Depart ment of Labor The following projection by Fishkind & Associates, Inc. shows average annual projected growth projections of 2.3% in 2014 and 2.9% in 2015. Collier Econocast Source. Fishkind & .Associates, Inc. June 2013 Collier County's economy is substantially dependent on the construction and real estate sector. Therefore, Collier County has been and should be more susceptible to cyclical fluctuations that have occurred in other areas dominated by a single industry. The area's major employers are listed below. Page 13 Packet Page -167- Overall Average 2009 2010 2011 2012 2013 2014 2015 Projection Employment 112,951 111,636 115,477 1 17,363 119278 121,988 125,572 Employment Change - 11,396 -1,315 3,841 1,886 1,915 2,710 3,584 3,147 Employment % Change -9.2% -1.2% 3.4% 1.6% 1.6 °a 2.3% 2.9% 2.6% Unemployment Rate 11.0% 11.6% 10.2% 8.5% 6.5% 6.1% 5.6% Source. Fishkind & .Associates, Inc. June 2013 Collier County's economy is substantially dependent on the construction and real estate sector. Therefore, Collier County has been and should be more susceptible to cyclical fluctuations that have occurred in other areas dominated by a single industry. The area's major employers are listed below. Page 13 Packet Page -167- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE COLLIER COUNTY AREA ANALYSIS Collier County Top Employers in 2012 Top Einplovers Company Em fa ees Collier County Public Schools 5,365 NCH Healthcare System 3,007 Publix Supermarkets 2,214 Collier County Government (non - Sheriff) 1,046 Wal -AAart 1,574 Collier County Sheriff's Office 1,367 Winn -Dixie Stores, Inc. 760 Ritz Carlton, Naples 758 Marriott Corporation 743 Fifth Third Bank 733 Source: www.efloricla com According to the Economic Development Council of Collier County, the industries of Aviation Technology, Biomedical Technology, Corporate Headquarters, Information Technology and Manufacturing Technology are some of Collier County's leading growth industries today, and key targets for expansion and recruitment efforts. The area's top five highest paid occupations are physicians and surgeons, chief executives, general practitioners, engineering managers, and podiatrists. Development Resdential development is beginning to commence again after approximately four to five years of limited to no development. While nearly every market has been impacted, some have been worse than others. In its 2nd Quarter 2013 report, the Office of Federal Housing Enterprise Oversight (OFHEO) found that the Naples -Marco Island MSA had a 10.97% increase in home prices over the trailing 12 months, and a 4.05% increase over the past quarter. The declining inventory and stabilized pricing have not only spurred increasing pockets of new construction, but have also had a positive impact on values. Construction spending is important to the region's employment and economy. The following chart illustrates projected construction starts (pertaining to both residential and commercial real estate) through 2015 for Collier County. Page 14 Packet Page -168 Collier Econocast 2009 2010 2011 2012 2013 2014 2015 Total Housing Starts 617 1,113 1,161 1,457 2,445 3,367 4,256 Foreclosures 8,899 5,031 2,135 2,045 1,462 1,394 1,022 Commercial Construction (SF) 1,619,748 673,077 588,419 1,039,985 1,921,996 2,389,957 2,608,568 Source: Fishkind & Associates, Inc. June 2013 Page 14 Packet Page -168 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE COLLIER COUNTY AREA ANALYSIS Income Personal income is a significant factor in determining the real estate demand in a given market. The following table shows Collier County households by income from the CCIM Site to do Business. Overall, Collier County has an average household income of $82,769 and a per capita income of $98,285. Median Hoisehold Income $53,051 $63,958 Average Household Income $82,769 598,285 De' Capi:a Income $34,470 $40,969 The following projection by Fishkind & Associates, Inc. shows a projected 1.2% average annual growth through 2015. As shown, Fishkind & Associates, Inc. reports a significantly higher per capita income level. Collier Econocast Overall Average 2009 2010 2011 2012 2013 1 2014 2015 Projection Per Capita Income $55.623 $57,117 $58,027 $58,302 $58,394 $59,145 $59,807 °.a Change -14.4% 2.71io 1.6% 0.5% 0.2% 1 1.3% 1.1% 1.2% Sonrcc: Fishkind K Associates, Inc. June 201, Conclusion Since 2006, the Southwest Florida residential market had been in those stages of the real estate cycle best described by The Appraisal of Real Estate, 14`h Edition as decline and recession. Decline immediately follows an expansion period in the real estate cycle and is characterized by positive but falling demand, and increasing vacancy. The next market cycle is recession, a period characterized by falling demand and decreasing vacancy. Since early to mid 2011, the market has been in the recovery stage which is characterized by increasing demand and decreasing vacancy. The residential market had price appreciation in 2013; however, the commercial market has been relatively stable since mid 2011 and is expected to remain stable through mid to late 2014. The area was heavily dependent on the construction sector, which has seen dramatic decreases in employment since 2007. Collier County unemployment has decreased to 5.8% in November-20 I'), the first month below 6.0% since 2008. Residential construction has commenced again and some new commercial development has also begun. Improved commercial real estate prices have remained relatively stable since approximately mid 2011, and we expect them to remain relatively stable through mid to late 2014. Page 15 Packet Page -169- 2013 2018 Households by Income Number Percent Number Percent <515,000 15,248 11.1% 14,328 9.8% ,415,000 - 524,999 13,336 9.7% 9,491 6.5% 5 ^_5,000 - 534,999 15,857 11.5% 13,785 9.4% S.15,000- 549,999 19,965 14.5% 19,119 13.1% $50,000 - S74,999 25,194 18.3 1.0 25,453 17.4% 5'5,000 - S99,999 15,078 11.0% 20,706 14.1% $100,000 - $'149,999 16,426 11.9% 23,158 35.8% 5150,000 - $199,999 6,327 4.6% 8,472 5.8% $200,000+ 10,131 7.4% 11,844 8.1% Median Hoisehold Income $53,051 $63,958 Average Household Income $82,769 598,285 De' Capi:a Income $34,470 $40,969 The following projection by Fishkind & Associates, Inc. shows a projected 1.2% average annual growth through 2015. As shown, Fishkind & Associates, Inc. reports a significantly higher per capita income level. Collier Econocast Overall Average 2009 2010 2011 2012 2013 1 2014 2015 Projection Per Capita Income $55.623 $57,117 $58,027 $58,302 $58,394 $59,145 $59,807 °.a Change -14.4% 2.71io 1.6% 0.5% 0.2% 1 1.3% 1.1% 1.2% Sonrcc: Fishkind K Associates, Inc. June 201, Conclusion Since 2006, the Southwest Florida residential market had been in those stages of the real estate cycle best described by The Appraisal of Real Estate, 14`h Edition as decline and recession. Decline immediately follows an expansion period in the real estate cycle and is characterized by positive but falling demand, and increasing vacancy. The next market cycle is recession, a period characterized by falling demand and decreasing vacancy. Since early to mid 2011, the market has been in the recovery stage which is characterized by increasing demand and decreasing vacancy. The residential market had price appreciation in 2013; however, the commercial market has been relatively stable since mid 2011 and is expected to remain stable through mid to late 2014. The area was heavily dependent on the construction sector, which has seen dramatic decreases in employment since 2007. Collier County unemployment has decreased to 5.8% in November-20 I'), the first month below 6.0% since 2008. Residential construction has commenced again and some new commercial development has also begun. Improved commercial real estate prices have remained relatively stable since approximately mid 2011, and we expect them to remain relatively stable through mid to late 2014. Page 15 Packet Page -169- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE COLLIER COUNTY AREA ANALYSIS The following table from Fishkind & Associates, Inc. shows historical and projected demographic and real estate statistics for Collier County. As shown, population and employment are projected to continue to increase in 2014 and 2015. Foreclosures are projected to continue; however, at a significantly slower pace. New commercial construction is projected to increase more dramatically in 2014 and 2015. FISHKIND Collier ECONOCAST 3une 2023 1 The long term economic outlook for Collier County is positive. The area lures people from all over the country for tourism as well as retirement. The beaches and weather are considered major demand drivers for this area and will be the basis for bringing people to the county when the economy recovers. The projected growth in population and employment should provide an economic base that supports demand for real estate in the subject neighborhood and for the subject property. These conditions have resulted in increasing residential values and should stimulate increases in commercial property values within the foreseeable future. Page 16 Packet Page -170- 2009 2010 2011 2012 2013 20_14 -Mo apulatJn 318,485 322,006 3."x.519 332,427 338.671 345.950 353,795 P=Wat- Change 1.944 4.181 4,853 4.908 6.244 7, 2,9 7,845 mployment 112.951 11 t-039 115 477 11 7, 303 119.278 121,988 125.572 Employment Change (11,442) (1.315) 3.841 1.880 1,915 2,716 3,0+84 ,r Capita Income 65.623 57.117 58,027 56.332 5$394 59,145 5$ 867 nemploymenl Rau 11.0 11.0 10.2 8.5 9.5 4.1 5.0 ral Housing Starts 617 1,113 1,101 1,457 2445 3.307 4.256 Single Family 551 088 890 1,214 1.939 2.092 3.435 MWtf.mily 99 425 271 243 508 875 824 ew Single - Famiy Closings 550 496 019 801 1,093 1,745 2,423 aw Single-Family.— 4M509 421.890 441.825 490,903 505,253 547,377 585,807 K fisting Singl,Femily Closings 4.752 4.798 4.967 5,450 5,283 5,099 5.2 1 S listing Single-Family Price 350,797 391.487 420.679 440,2'x3 477.770 508.92." 544.278 ew Condominium Closings 327 211 283 243 507 580 405 sw Condomim— Pnce 377,588 370,704 305,281 380,801 424.449 440444 471,393 K fisting Condominium Closings 4,112 4,843 5,504 0,174 9.514 5.955 5 -835 Kist ing Condominium Price 2gum 296,402 291,239 297,401 329,445 347,879 357,432 — closums 81899 5,031 2,135 2,645 1,452 1,394 1-022 ommeroia! Con —tion fSq. Ft.) 1.6i 2.74B C73.077 588.418 i.C39.985 1.921.999 2,389,957 2.808,566 Local Retail 283,443 130.965 179.292 372,940 920.445 71,509 935,437 Regional Retail 184,955 154.215 23.305 71,421 116,820 147,749 =79.143 Offioe 2D3,749 115,097 47,118 76.065 130 -965 102.777 197.304 Industrial 239,753 G 0 24.535 43.819 5C.757 61.542 Warehouse 54,993 G 0 70,590 117.438 14C,032 77, 060 Hotel 349795 0 0 154,501 257,037 319.019 387.532 Hospital 0 22,674 0 0 191.818 238,521 6 Ins1 !faoY.. 299303 244,700 336,644 297.312 444.715 552.993 070,49'" 3une 2023 1 The long term economic outlook for Collier County is positive. The area lures people from all over the country for tourism as well as retirement. The beaches and weather are considered major demand drivers for this area and will be the basis for bringing people to the county when the economy recovers. The projected growth in population and employment should provide an economic base that supports demand for real estate in the subject neighborhood and for the subject property. These conditions have resulted in increasing residential values and should stimulate increases in commercial property values within the foreseeable future. Page 16 Packet Page -170- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE COLLIER COUNTY AREA ANALYSIS COLLIER COUNTY AREA MAP Subject Page 17 Packet Page -171- WHITE LAKE BOULEVARD ACREAGE MARKET AREA ANALYSIS Boundaries 7/8/2014 11.C. MARKET AREA ANALYSIS The subject is located in the west central part of Collier County in the southwest corner of the Collier County Rural Estates Planning Community, just east of the southeast corner of the Golden Gate Planning Community, north of the northwest corner of the Royal Fakapalm Planning Community and northeast of the South Naples Planning Community; the four planning communities meet at the I- 75/CR951 interchange located at mile 101 of I -75. This surrounding area is generally delineated as follows: North Immokalee Road South East / west line transecting the intersection of Collier Blvd and US -41 East A line extending south along Desoto Blvd S West North / south line extending south along Airport- Pulling Road A map identifying the location of the property follows this section. Access and Linkages Primary access to the area is provided by Interstate 75 (I -75), a major arterial that runs east to Fort Lauderdale and north through Tampa, Florida; I -75 terminates to the north at the US /Canadian Border in Sault Ste. Marie, Michigan. Access to the subject from the I- 75 Interchange 101 is provided by Collier Boulevard (aka Isle of Capri Road and County Road 951) to City Gate Drive to White Lake Boulevard (formerly Land Fill Rd); travel time from the major arterial to the subject is about 5 minutes. Overall, vehicular access is average since White Lake Boulevard is mostly just two lanes. Secondary access is provided by US -41, also known as Tamiami Trail, which connects Miami, Florida with Tampa and continues north to Copper Harbor, Michigan on Lake Superior. Collier Boulevard, City Gate Drive, and White Lake Boulevard again provide the final link with travel time being anywhere from 15 to 45 minutes, depending on traffic. An additional access route opened with the completion of the interchange at I -75 and Golden Gate Parkway. Golden Gate Parkway ends at Collier Boulevard approximately 1.3 miles north of City Gate Drive. Public transportation is provided by Collier Area Transit's (CAT) Blue Route 5, which connects the Lorenzo Walker Institute of Technology in Naples and the Health Center in Immokalee, and Yellow Route 6, which provides access along four of the major secondary roads in the Naples area. The nearest bus pickup point is at Collier Boulevard and City Gate Drive. Naples has neither a bus nor a train station; the nearest being in Immokalee in the northeast part of Collier County. The local market perceives public transportation as fair compared to other areas in the region. However, the primary mode of transportation in this area is the automobile. Page 18 Packet Page -172- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE MARKET AREA ANALYSIS The Southwest Florida International Airport (RSW) is located about 30 miles from the property; travel time is about 45 minutes to two hours, depending on traffic conditions. The Naples Municipal Airport (APF) is approximately 7 miles and 15 to 45 minutes west and the Marco Island Airport (MKY) is approximately 15 miles and 20 minutes to an hour south of the subject. The Naples C13D, the economic and cultural center of the region, is approximately 10 miles from the property. Demographics The chart below summarizes the demographics for the area in a 5 mile radius. Demographic and Income Profile White. Lake Blvd Prepared by Rachel Zucchi Ring: 5 mile radius - - Summary Census 2010 Population 67,477 Households 25,492 Families 10,038 Average Househ Jed Size 2.63 Owner Occupied Housing Units 17,240 Renter Occupied Housing Units 8,252 Medan Age 40.8 Trends: 2013 - 2018 Annual Rate Area Population 1.17% Households 1.20% Families 1.06% Owner HHS 1.64% Median Ho_isehoid Income 2.82% Households by Income. ,G15,000 515,000 - 524.899 $25.000 - $34,999 $35,000 - 549,999 $50,000 - `:7,1,999 $75,000 - 594,999 $100,000 - $1 -9,990 sis0,000 - 5.199,999 $ ^_00,000+ Median Household Income Average Household Income Per Capita Income Demand Generators v. Supply $47,617 $63,287 $ ^_4,093 2013 69,333 26,182 18,416 ^_.63 16,999 9,163 41.5 State 0.99% 0.98% 0.87% 1.3^_% 3.47% 2013 Number Percent 2,638 10.1% 3,320 12.7% 3,267 12.5% 4,393 16.8% 5,867 22.4% 2,895 11.1 °ru 3,336 8.9% 625 3.2% 642 2.S% $47,617 $63,287 $ ^_4,093 $54,730 $73,833 528,161 Demand in the area has historically come primarily from the building industry in the development of residential and commercial properties. From approximately 2008 until the end of 2011 the Collier County Residential Market had been in those stages of the real estate cycle best described as "downturn and contraction ". This phenomenon has directly affected the industrial, retail and office markets. A downturn follows a peak in the market and is best characterized as a period where absorption rates and construction and development activity begin to decline. Contraction is that period characterized by declining absorption rates, decreasing prices, and, ultimately, a falloff in the construction and development activity. Since the beginning of 2011 we have seen a leveling off of values of most all types of properties. Page 19 Packet Page -173- 2018 73,485 27,786 19,416 2.63 18,443 9,343 42.1 National, 0.71% 0.74% 0.63% 0.94% 3.03% 2018 Number Percent 2,532 9.1% 2,427 8.7% 2,859 10.3% 4,465 16.1% 6,025 21.7% 4,107 14.8% 3,430 12.3% 1,138 4.1% 804 2.4% $54,730 $73,833 528,161 Demand in the area has historically come primarily from the building industry in the development of residential and commercial properties. From approximately 2008 until the end of 2011 the Collier County Residential Market had been in those stages of the real estate cycle best described as "downturn and contraction ". This phenomenon has directly affected the industrial, retail and office markets. A downturn follows a peak in the market and is best characterized as a period where absorption rates and construction and development activity begin to decline. Contraction is that period characterized by declining absorption rates, decreasing prices, and, ultimately, a falloff in the construction and development activity. Since the beginning of 2011 we have seen a leveling off of values of most all types of properties. Page 19 Packet Page -173- 7/8/2014 11. C. WHITE LAKE BOULEVARD ACREAGE MARKET AREA ANALYSIS Submarket Analysis The property is located to the east of the industrial district known as White Lake Corporate Park, which is on the north side of I -75 just east of CR 951. This is one of just a few industrial areas in Naples. The other areas include Naples Production Industrial Park, which is defined as the Golden Gate Canal to the north, Livingston Road to the east, Radio Road to the south, and Airport- Pulling Road to the west. The J &C /Trade Center Industrial Park is generally located in the northwest quadrant of the intersection of Pine Ridge Road and Airport Road and North Collier Business Park, which is located on the east side of Old US 41 north of Tamiami Trail; and Tollgate Industrial Park, which is located just south of I -75 on the east side of Collier Boulevard. White Lake Corporate Park, a 144.40 -acre, 51 -lot, mixed commercial and industrial park has lot sizes ranging from 0.30 to 18.85 acres. The parks 46 industrial and 5 commercial lots were developed and placed on the market in August 1998. As of the effective date of this report, all of the industrial lots have been sold plus numerous re- sales. During this time period sales in other parks, now mostly sold out, continued. It must be noted, though, that because White Lake Corporate Park is in a Rural Industrial area, some of the retail -based commercial uses allowed in other industrial areas are not allowed; this applies to the subject as well. Land use immediately surrounding the subject are varied from Citygate Industrial PUD and White Lake Corporate Park to the west, Collier County undeveloped resource recovery land to the north, I -75 right of way and White Lake Boulevard to the south, Collier County land fill and agricultural uses to the east. Outlook and Conclusions The Naples area industrial market had ground to a virtual halt because home starts and population fuel industrial demand in the Naples area as the majority of industrial users are involved in the building industry. As mentioned in the Collier County analysis above, the local area, state, country and world experienced unprecedented economic problems which has translated to an oversupply of residential products and in turn has stalled growth in the commercial real estate markets especially those dependent on new residential growth. However, residential development has commenced again in Southwest Florida and the industrial market appears to have stabilized. The new residential development will begin to increase industrial demand. In the long term, the outlook is positive because there is a limited amount of land set available for industrial development and when the economy improves this fixed supply will inevitably put upward pressure on all phases of the industrial market. Page 20 Packet Page -174- WHITE LAKE BOULEVARD ACREAGE Market Area Map 7/8/2014 11.C. MARKET AREA ANALYSIS Page 21 Packet Page -175- t L^ Q 5. SIN- Marxiev Av,,..._ f? Page 21 Packet Page -175- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE SITE ANALYSIS PROPERTY DESCRIPTION AND ANALYSIS SITE ANALYSIS The following description is based on our property inspection and public records. Land Summary, Parcel ID Gross Land Area Gross Land Area Usable Land Area Usable Land Area Wetlands Land Wetlands Land (Acres) (Sq Ft) (Acres) (Sq Ft) Area (Acre) Area (Sq Ft) 00298480005 305.60 13,311,944 204.00 8,886,248 101.60 4,425,696 An Environmental Due Diligence letter dated September 2, 2008 prepared by DRMP Dyer, Riddle, Mills, & Precourt, Inc. was provided for the purpose of this appraisal. The letter references a field review conducted by SFWMD Senior Regulatory Scientist Laura Layman in which a CECI Land Use delineation indicated 101.6 acres of wetlands within the project boundary. Therefore, the parcel consists of approximately 204 acres of uplands and 101.60 acres of wetlands. In order for the property to be developed, environmental permitting from governmental regulatory agencies, such as South Florida Water Management (SFWMD), Florida Department of Environmental Protection (FDEP) and US Army Corp of Engineers (ACOE) will be required. Additionally a wetland mitigation plan including onsite and offsite mitigation would likely be required. Following is a summary of Collier County Communications with Regulatory Agencies since January 2009: SFWMD: The District had established information agreements with the property owner, however, no official jurisdictional wetland line or permit has been granted by that agency. In the event that the property is transferred prior to those applications and agreements being completed and formalized, a new property owner would have to start from scratch. FDEP and ACOE: FDEP advised SFWMD that they would be the agency to review an Environmental Resource Permit (ERP) in the event solid waste operation is considered for this parcel. (Although they would consider SFWMD's concerns relating to a flow way.) ACOE advised that a Corps permit would be required if this project would result in the discharge of fill material into a wetland or other water of the U.S. Evidenced by the above summaries, there remains confusion among the regulatory agencies on how and who will dictate the permitting relating to this parcel. Based on our experiences with Landfill Gas -to- energy and the Landfill in general, our best guess is that a joint ERP would be required from FDEP and ACOE that includes the clearing aspect, and that SFWMD will continue to be involved with regards to the surface water management. It is important to mention that agency jurisdiction as well as the applicable regulations are determined at the time of the application for permits. As such, any permitting information gathered today is not necessarily what will be effective should the Lewis Property be acquired and permits pursed in the future. Page 22 Packet Page -176- WHITE LAKE BOULEVARD ACREAGE 7/8/2014 11. C. SITE ANALYSIS SITE Location: The subject is located on the north side of White Lake Boulevard, east of Shearwater Street and west of the existing Collier County Landfill. Current Use of the Property: Vacant agricultural land. Shape: The site is roughly rectangular. Road Frontage /Access: The subject property has average access with frontage as follows: • White Lake Boulevard: Approximately 2,705 feet It is not a corner lot. Visibility: Average Topography: The subject has generally level topography with 101.60 acres of wetlands. The entire parcel is predominately wooded. The upland portion consists largely of pine flatwoods while the wetland portions are pine- cypress- cabbage palm. Exotic vegetation also exists including melaleuca, Brazilian pepper, and ear -leaf acacia. Soil Conditions: We are not experts in soils analysis; however, the soil conditions observed at the subject appear to be typical of the region and adequate to support development. Utilities: Electricity: FP &L Sewer: Collier County - not yet extended to site Water: Collier County - not yet extended to site Underground Utilities: The site is not serviced by underground utilities Adequacy: The subject's utilities are typical and adequate for the market area. Site Improvements: Street Lighting: There is no street lighting along White Lake Boulevard. • Sidewalks: There are no sidewalks along White Lake Boulevard. • Curbs and Gutters: There are no curbs and gutters along White Lake Boulevard. • Curb Cuts: The subject currently has one gated point of access from White Lake Boulevard. Flood Zone: The subject is located in an area mapped by the Federal Emergency Management Agency (FEMA). The subject is located in FEMA flood zone AH, which is classified as a flood hazard area. FEMA Map Number: 12021 C 0416H FEMA Map Date: May 16, 2012 The subject is in a flood zone. The appraiser is not an expert in this matter and is reporting data from FEMA maps. Environmental Issues: We were provided with an Environmental Due Diligence Letter Report dated September 2, 2008 prepared by DRMP Dyer, Riddle, Mills, & Precourt, Inc. According to the report the subject property has 101.6 acres of wetlands. Additionally, the report indicated several listed species occurrences, including Florida panther, wood storks, Florida black bear, Big Cypress fox squirrels, and the red cockaded woodpecker. Impacts to wetlands, as well as federally protected species, will require mitigation to offset these adverse impacts. Environmental issues are beyond our scope of expertise; Page 23 Packet Page -177- WHITE LAKE BOULEVARD ACREAGE 7/8/2014 11.C. SITE ANALYSIS therefore, we assume the property is not adversely affected by environmental hazards. Encumbrance / Easements: A current title report was not provided for the purpose of this appraisal. We are not aware of any easement, restrictions, or encumbrances that would adversely affect value. Therefore, our valuation assumes the subject has a clear and marketable title with no adverse easement, restrictions, or encumbrances. FUTURE LAND USE DESIGNATION Designation Agricultural / Rural Designation: Rural Industrial District Description The Rural - Industrial District, which encompasses approximately 900 acres of existing industrial areas outside of Urban designated areas, is intended, and shall be reserved, for industrial type uses, subject to the Interim Development Provisions. Besides basic Industrial uses, limited commercial uses are permitted. Retail commercial uses are prohibited, except as accessory to Industrial uses. Page 24 Packet Page -178- ZONING Zoning Code A Zoning Authority Collier County Zoning Description Rural Agricultural District Permitted Uses The purpose and intent of the rural agricultural district (A) is to provide lands for agricultural, pastoral, and rural land uses by accommodating traditional agricultural, agricultural related activities and facilities, support facilities related to agricultural needs, and conservation uses. Uses that are generally considered compatible to agricultural uses that would not endanger or damage the agricultural, environmental, potable water, or wildlife resources of the County, are permissible as conditional uses in the A district. Current Use Legally Conforming The subject is legal and conforming use. Zoning Change Likely A zoning change to a use consistent with the Rural Industrial District Future Land Use Designation is likely. Zoning Comments In 2006 the owner of the property applied to Collier County to rezone the subject to a Planned Unit Development (PUD) for light industrial/business park use. As proposed, it would consist of approximately 91 lots for development of up to 2.25 million square feet of light industrial type development. The rezoning /permitting application process was put on hold as Collier County considered the subject site for expansion of the existing landfill located to the east of the subject. Use of the site as a landfill would require approval from many government related entities including the DEP and South Florida Water Management. FUTURE LAND USE DESIGNATION Designation Agricultural / Rural Designation: Rural Industrial District Description The Rural - Industrial District, which encompasses approximately 900 acres of existing industrial areas outside of Urban designated areas, is intended, and shall be reserved, for industrial type uses, subject to the Interim Development Provisions. Besides basic Industrial uses, limited commercial uses are permitted. Retail commercial uses are prohibited, except as accessory to Industrial uses. Page 24 Packet Page -178- WHITE LAKE BOULEVARD ACREAGE 7/8/2014 11.C. SITE ANALYSIS Permitted Uses Manufacturing, processing, storage and warehousing, wholesaling, distribution, high technology, laboratories, assembly, computer and data processing, business services, other basic industrial uses as described in the Industrial Zoning District in the Land Development Code, business park uses as described in the Business Park Zoning District of the Land Development Code, and support commercial uses, such as child care centers and restaurants. Permitted Density According to the Conservation and Coastal Management element of the Growth Management Plan of Collier County, native vegetation shall be preserved through the application of minimum preservation and vegetation retention standards and criteria. Industrial Development located within the Rural - Industrial District only is required to preserve 50% of the native vegetation, not to exceed 25% of the project site. If wetland areas exceed the minimum vegetation preservation requirements, increased preservation shall be fostered through incentives such as clustered development, reduced open space requirements, setbacks, landscape buffers, etc. Conformity The subject property conforms to all requirements of the Future Land Use Element of the Comprehensive Plan. Concurrency As of the effective date of this appraisal, traffic, utilities, etc. are at concurrent levels with the future land use requirements. Moratorium As of the effective date of this appraisal, there are no building moratoriums affecting the subject property. Page 25 Packet Page -179- WHITE LAKE BOULEVARD ACREAGE Zoning Map 7/8/2014 11. C. SITE ANALYSIS Future Land Use Map Page 26 Packet Page -180- 26 Orin Subject Subject S� t RRAU{ WB1d O- SEiNDtNG�" �t 8 'Excp .:. IE / OVei11y RFMUCI NBM170 SENDING Ej Err1, PRI Z—,,ng PUD Zoning: A z Zoning—General: Aj 206 , C�9L�m9 32azzu Ell l -048141 ; A i i :L5 S6 ar:rucrE-x : roc -91 _ LcI,, WU t. ill,. FOP AttecY meets t Eacp L,r1z ❑, Pno Ezop 4_LiW1r! (,ENTER, S _ C:�fytY�t�Lt�fle of 06. 02 O !,t, Intl' PUG 2a111ny A, p crlaY RFMU0NRPA- 8EN1)ING �. GE—. CJGi FAG. Nn5 NRCAX, irec2sse, :Cti Y.alasYt C .,.d- a xdzi, and TM ME um,..Ammutt Future Land Use Map Page 26 Packet Page -180- WHITE LAKE BOULEVARD ACREAGE Survev e phK y ypyp rvx t�g�6x' P Pr ? ?! F t Yo An A ip�f Yk �!Q`y Fgg � S i� E EtpYi� rvrv.+�va r XP pgi! i Y`pp�stl rY ;;ppgi �� i ic�J�i E�j`< �`_—. 7 73�e lE ?Si�vl} qiPFXXyy 4 "4d$$Sg}�a 4 46ee 6:7u�7K ru '" 7/8/2014 11.C. SITE ANALYSIS N.R4' ✓.At'N aP14786 ���'r° ,�•��4,y —'� �� `PAC ETTG �w �.. _,_,�: 4.- roro� PAL £MET TO ,vmAeo-er,. PALEMETTD PALEMCTTfT T PALENETTI7 PALEM£TTL7 PALEMETTD c. PAL EMf. "TT(J PALEMETTD o i'ALEme I TCI ,,s � PALEME.TTD b � at ,.wrvvrtf .wacrt4A:- ..... -\ Ku. - •� 4 •. . PALEMETTE 1.. 311443.9474 _PAL EME7T0 � xPALCMETT(J o.�..P .�•s.,r. _3C5 5 ACRES - <` C Gv. :. « <•u. y. .. x a. a, r. .. ''• { ..0 ry "adm.� Kay.•efv'f PALEMETTO sRe•RO.u,".c 550.90, <P) PALEMETTD i.RV•Ra•ar•u. sso.y�• � t e a y a. °..:. §.. ,. '- ....rr, R ^ ^°; PALrnrrm p c' PALEMETTD c s � � � PALEMETTD ,� •• �`. ' ., ash ��a., n.._. fa :. P .. '° .. i • PA F14"7TG PALCM1f£TTG x, x m a_. •t.. '�c -;, _ S ^6. • � kt • t � (� .. ., Z Page 28 Packet Page -182- WHITE LAKE BOULEVARD ACREAGE FLUCCS Designations 7/8/2014 1 1.C. SITE ANALYSIS MrK ONWNM + + Jm 'I LLJ I + + + m + ++ to+ + + j + + + + + + + + + + + . . . . . . . . . . + + + + 4 4 ++ 4 + + + + + + + + + CO + + + + + + + t. + + + + + + + + + + + CD + + + + + + 1 4 4 + + 4 + + + + + er 1&'rZ:217A,, v �e2 TS Page 29 Packet Page -183- I k4l X�Vfi Ugg U-N qmz R" sl ONO WT)N'W BL'PPORT ftmLITY lyavl•F� 11,M1,1111. 7/8/2014 1 1.C. SITE ANALYSIS MrK ONWNM + + Jm 'I LLJ I + + + m + ++ to+ + + j + + + + + + + + + + + . . . . . . . . . . + + + + 4 4 ++ 4 + + + + + + + + + CO + + + + + + + t. + + + + + + + + + + + CD + + + + + + 1 4 4 + + 4 + + + + + er 1&'rZ:217A,, v �e2 TS Page 29 Packet Page -183- I k4l X�Vfi Ugg U-N qmz R" sl ONO WHITE LAKE BOULEVARD ACREAGE Site Photographs 7/8/2014 11.C. SITE ANALYSIS White Lake Boulevard - Westerly White Lake Boulevard - Easterly (Photo Taken on April 15, 2014) Page 30 Packet Page -184- ran lilt- Vq� ti a�be r "^` 3F'�n.� 1. �"`i�. %�• �{���"i�� ~: ' ,.�, i+ 4^ 4 : r ; �� "Y A'.. +. -tot w xti _ .r �� 7.' sties` 'irfan .++�� 2,... ?ire + •, 7 us �y •f5 i � y ° q 4P 7� 41 w �����:: g v 6 zc kA� _ > , �'d1�,,�ft ;'..,� rf^ arM1n� iii+• �. i 77 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE REAL ESTATE TAXES AND ASSESSMENTS REAL ESTATE TAXES AND ASSESSMENTS The real estate tax assessment of the subject is administered by Collier County. The property tax identification number and assessed value of the property for tax year 2013 are as follows: ASSESSED VALUES Tax Identification Number 00298480005 Land Assessed Value $7,538,750 Building Assessed Value $0 Total Assessed Value $7,538,750 Totals $24,669 Total Land Assessed Value $7,538,750 Total Building Assessed Value $0 Total Assessment $7,538,750 Total Assessment per Land SF $0.57 Total Assessment per Land Acre $24,669 Rates, Taxes, More Tax Rate 1.19% Ad Valorem Tax Amount $89,958 Special Assessment Amount $0 Special Assessment Comments None Total Tax Liability $89,958 Property Tax Comments The 2012 and 2013 taxes have been paid. The tax assessment for subject property is currently $24,669 per gross acre. Based on our valuation analysis, the subject's assessment appears high. Page 33 Packet Page -187- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE HIGHEST AND BEST USE HIGHEST AND BEST USE Highest and best use may be defined as: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 1 ■ Physically possible for the land to accommodate the size and shape of the ideal improvement. ■ Legally permissible under the zoning regulations, building codes, environmental regulations, and other restrictions that apply to the site. A property use that is either currently allowed or most probably allowable. • Financially feasible to generate sufficient income to support the use. • Maximally productive, or capable of producing the highest value from among the permissible, possible, and financially feasible uses. Highest and Best Use As If Vacant Physically Possible The subject site consists of 305.60 gross acres or 13,311,944 square feet with 2,705 feet of frontage along White Lake Boulevard. There are approximately 101.6 acres of wetlands (33 %) and 204 acres of uplands (67 %). The site is located at an Interstate 75 interchange which provides good access throughout the area and state. The subject's utilities are typical and adequate for the market area. The site is roughly rectangular. The site is located in a FEMA flood zone AH area per FEMA Floor Map Number: 12021 C 0416H, dated May 16, 2012, which is classified as a flood hazard area. Aside from the preservation and mitigation requirements of the wetlands, there are no known physical reasons that would unusually restrict development. The site is considered to have a functional utility suitable for a variety of uses. Legally Permissible The subject site is zoned A. The purpose and intent of the rural agricultural district (A) is to provide lands for agricultural, pastoral, and rural land uses by accommodating traditional agricultural, agricultural related activities and facilities, support facilities related to agricultural needs, and conservation uses. Uses that are generally considered compatible to agricultural uses that would not endanger or damage the agricultural, environmental, potable water, or wildlife resources of the County, are permissible as conditional uses in the A district. The Future Land Use element of the Growth I The Dictionary of Real Estate 5th Edition, Page 93, Appraisal Institute Page 34 Packet Page -188- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE HIGHEST AND BEST USE Management Plan of Collier County designates the subject property as Agricultural / Rural Designation: Rural Industrial District. The Rural - Industrial District, which encompasses approximately 900 acres of existing industrial areas outside of Urban designated areas, is intended, and shall be reserved, for industrial type uses, subject to the Interim Development Provisions. Besides basic Industrial uses, limited commercial uses are permitted. Retail commercial uses are prohibited, except as accessory to Industrial uses. Manufacturing, processing, storage and warehousing, wholesaling, distribution, high technology, laboratories, assembly, computer and data processing, business services, other basic industrial uses as described in the Industrial Zoning District in the Land Development Code, business park uses as described in the Business Park Zoning District of the Land Development Code, and support commercial uses, such as child care centers and restaurants. In 2006 the owner of the property applied to Collier County to rezone the subject to a Planned Unit Development (PUD) for light industrial/business park use. As proposed, it would consist of approximately 91 lots for development of up to 2.25 million square feet of light industrial type development. The rezoning /permitting application process was put on hold as Collier County considered the subject site for expansion of the existing landfill located to the east of the subject. Use of the site as a landfill would require approval from many government related entities including the DEP and South Florida Water Management. Recognizing the principle of conformity, we consider the prevailing land use patterns in the area consisting of industrial/business park uses. While the property is also adjacent to the Collier County Landfill, the use as a landfill significantly reduces the pool of buyers. Additionally, a lengthy approval process would be required by several governmental agencies. Therefore, only industrial/business park uses are given further consideration in determining the highest and best use of the site, as if vacant. Financially Feasible Financial feasibility is an analysis of the ability of a property to generate sufficient income to support the use, or a reasonable probability of producing a positive income stream net of operating expenses, financial costs, and capital amortization. Since 2006, the Southwest Florida residential market had been in those stages of the real estate cycle best described by The Appraisal of Real Estate, 14th Edition as decline and recession. Decline immediately follows an expansion period in the real estate cycle and is characterized by positive but falling demand, and increasing vacancy. The next market cycle is recession, a period characterized by falling demand and decreasing vacancy. Since early to mid 2011, the market has been in the recovery stage which is characterized by increasing demand and decreasing vacancy. The residential market had price appreciation in 2013; however, the commercial market has been relatively stable since mid 2011 and is expected to remain stable through 2014. Given current market conditions and the lingering credit crunch, it is reasonable to expect that new commercial development will be limited to build to suit properties with Page 35 Packet Page -189- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE HIGHEST AND BEST USE substantial equity contribution until we have an improved finance and demand market. On this basis, barring unforeseen changes in the market, if developed with a well - designed industrial /business park product, developed in phases, that is appropriately marketed and priced, should be received favorably by the market in 2015 or 2016. Considering the demand for industrial/business park uses in the subject market area as well as the recovering real estate and financial markets, the land should be held for future development. Maximally Productive The maximally productive land use yields the highest value of the possible uses. Future industrial/business park development is the only use that meets the tests of physically possible, legally permissible, and financially feasible. Therefore, future industrial/business park development is concluded to be the maximally productive and highest and best use of the site. Highest and Best Use as Improved No improvements are situated on the site. Therefore, a highest and best analysis as improved is not applicable. Most Probable Buyer Consider the size, class, and location of the property, the most probable buyer is a developer or investor. Page 36 Packet Page -190- 7/8/2014 11. C. WHITE LAKE BOULEVARD ACREAGE HIGHEST AND BEST USE VALUATION METHODOLOGY Three basic approaches may be used to arrive at an estimate of market value. They are: 1. The Cost Approach 2. The Sales Comparison Approach 3. The Income Approach Cost Approach The Cost Approach estimates the current cost to construct the existing structure including an entrepreneurial incentive, depreciation, and the estimated land value. This approach is particularly applicable when the improvements represent the highest and best use of the land and are relatively new. It is also applicable when the property has unique or specialized improvements for which there is little or no sales data from comparable properties. Sales Comparison Approach The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. By process of correlation and analysis, a final indicated value is derived. This approach is most reliable in an active market, and is lease reliable when valuing a property for which no direct comparable sales data is available. Income Approach The Income Approach converts the anticipated flow of future benefits (cash flows and reversion) to a present value estimate through a capitalization and or a discounting process. This approach generally reflects a typical investor's perception of the relationship between the potential income of a property and its market value. Final Reconciliation The appraisal process concludes with the Final Reconciliation of the values derived from the approaches applied for a single estimate of market value. The reconciliation of the approaches is based on an evaluation of the quantity and quality of the available data in each approach. Furthermore, different properties require different means of analysis and lend themselves to one approach over the others. Page 37 Packet Page -191- WHITE LAKE BOULEVARD ACREAGE ANALYSES APPLIED 7/8/2014 11.C. ANALYSES APPLIED A cost analysis was considered and was not developed because there are no improvements that contribute value to the property. A sales comparison analysis was considered and was developed because typically this is the most appropriate approach for the valuation of vacant land. This approach is applicable to the subject because there is an active market for similar properties and sufficient sales data is available for analysis. An income analysis Nvas considered and was not developed because the subject is not likely to generate rental incorne as vacant land. Page 38 Packet Page -192- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE SALES COMPARISON APPROACH SALES COMPARISON APPROACH The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution and externalities. The following steps describe the applied process of the Sales Comparison Approach. • The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed. • The most pertinent data is further analyzed and the quality of the transaction is determined. • The most meaningful unit of value for the subject property is determined. • Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject property. • The value indication of each comparable sale is analyzed and the data reconciled for a final indication of value via the Sales Comparison Approach. Comparables I have researched five comparables for this analysis. These are documented on the following pages followed by a location map and analysis grid. All sales have been researched through numerous sources and verified by a party to the transaction. For this analysis, we use the price per gross acre as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. Due to the limited number of recent comparable land transactions in Southwest Florida, a state wide search of commercial and industrial sites greater than 50 acres was conducted. The most comparable transactions are analyzed in the following grid. Page 39 Packet Page -193- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE SALES COMPARISON APPROACH Comp Address Date Price Land SF Cl ty Price per Acre Acres Subject wrote ,,,k,. Boulevard 4115/2014 i3- 311,947 N.ples 30560 1 _.. 7reeloc Avenue I /(12011 $4,153,840 _. 2, I'hl,(X)O Fort Myers 545.878 90.60 2 21121emarm'Irad �12/1fi72012 43,1 W,(XX) 3,3511.592 Part Charlotte 540,3(12 76.92 j NW 35th Avenue .. 7/22/201 .3' .._ $78K(100 G,534,436 Ocala $51,997 150.01 q 3373A6 meshy lJnse 711012013 S87W (I1) 12 V74.34G land 01akes $29109 29785 5 7880 (rtssom Pkwy 4/15/2013 51150AX) 5,436,288 Tausvilk 5100)6 124.80 Comparables Map Comments 7Lc subje"i cunsis�v ufupµosur'tek 101bU acres of we:knds (33 %}and 2114,1) ecrxs of uplands (�, ). Fbnk mined business park nwr Snulhwest Florkl. mtcmaaunel Aaport. OnBriaay IistW at SID,9W.IXX1 (52.76 psf gross and S5.;psf net ) The property consists of.ppmunnteN 50 develop.bk, e"res developed with 18 mlal lots and 10 mdustool lots. Fully developed lots with all utilities m place. Sale additionally vrcluded mbigotinn lands m Hendry County which were purchased along with the subject parcel on s separate deed for $1.84G1W. Pmpeny was 4 red al 53,9W,IXX1.1 mpeny has a fuwre land use .- -a o Gnmercial Center as- d Cbmrercol Corridor. Property a located just east ofthe Snmsota County hale. Per M, Stepan, Florida DOT is interested m 10 acres for a burrow pot for the c pansbn of US 41. Approlmmtely. 5(P/o of Coe veneining site will be used by the buyer" develop lore new KIA dwlersh�. The older acreage will be heN for future connemiel developrrenl. OcaW and MarionCo nn'agreed to provdc latent yes tolnlmg anestvmted 5347 mll'n to ent'e Fedfa'tn build in Oc.la. FWGis planning m spend appmsmnteb 575M to build a 383,161 SF building and employ 165 f.114 ' equivalent jobs. Total ".past mvestment "eluding rmchbery end equipment u $122M. The cormay has to complete construction by October 31, 2016. The car agreed to'Mend NW 35th Street Inc. US 441 and 27th Ave to the site and provide water, sewer and electric sm�ice. I he property is located wilhm a 489 acre Ocala/Manxm C—a1v Commerce Park. The reaming 339 acres are undeveloped. The park la tuned Lund Use Blending (Aerlav Planned Una Developn'nt (LU130 PUD} a new mnog designatmn and is approved far 32.82 acres of.-fl smites, 323.91 acres of tight odustniaL and 132.15 acres ofinedmm industrial Grading fthe sire ""ra'nte'd o Janumy 2014.11ne seller, Bill Kearns. reported he didn t negotiate we « b FedFaand thought he night have b n able to all Ore pmpenv for more under different caeurmtsoces. ,. __._.... ,.. _ .. _ ....... ii— 260acres was Purchased fmmAshley Glen land Trost f., S6 .than. It is entitled for l.8 ailh.. SF ofofHce space, 440.01) SP of retail. and 780 townhomes. 7Tne southern 37 acres was purchased from Wells Fargo Boni: for $2.6 unlh.n. The purchaser owns 1,000 acres to the north which 0- island la develop.. u residential subdivision. The buyer wanted to control the use oa the subject pmpmy, canp bible with the proposed residential developn'nt.Additionally,.$6rt Mia. entrance mad wi8 be deveop dad will service both properties at the buyers cost. Are. is howled approx -teh 25 nanules from downtown Temp. and is a gmwing aren. Future land use designations include Ref dYM c/Rcsidculial (ROR) approwrolety 256 acres, Conservator lands (1)N) appm>mateN 29 acres, and Residential (R6-3) appmsvrntely 10..—. Property ID Nos: 19- 20+18 4XXXFWXI1MXssr 3(126- 180YW{g2uJ4X)Cl, 30.26-19- 0YXHMJ2t114gBD', 30.2O+184XYJ(W020D- 0030,30.26184Md OO2W4)10,30- 26- 18axx)m2IXMDW0, :VJ2O- l81JW0.W2MWWI. Property was listed for 51.G2$,g10. W Blow Cheek la a planned rcsidrntoUcnmar"ol Development located on Gia— ,14,$) . Subject is c"nar'rcol portion with 2.91) feet of fmnmge along (lissomPAwy. Development has," infrastructure . Water and seweroat. Red, but not c ..pbtd ormspected. FLU Designation Comrercol High Intensity (113 acres) anJ consmetinn (11.6 acres). lanceted across from Space Coust Regional Airport FRP Perrot application indicates proposed construction ofl'h.se I mcludmg pmsm.lwn of .ppm a alelr 41.36 arms of wetlands and 179,350 SF warch"aaeJonice buikdmg along wah parking, utilities, mmmwater rmnngerrrnt system and otherreleacd appurtenances. Page 40 Packet Page -194- n�pf WHITE LAKE BOULEVARD ACREAGE Analysis Grid 7/8/2014 11.C. SALES COMPARISON APPROACH The above sales have been analyzed and compared with the subject property. I have considered adjustments in the areas of- Effective Sale Price This takes into consideration unusual conditions involved in the sale that could affect the sales price, such as excess land, non - realty components, commissions, or other similar factors. Usually the sale price is adjusted for this prior to comparison to the subject. Real Property Rights Property rights dissimilar to the subject which affect value. Financing Terms Favorable or unfavorable seller financing, or assumption of existing financing. Conditions of Sale Circumstances that atypically motivate the buyer or seller, such as 1031 exchange transaction, assemblage, or forced sale. Market Conditions Inflation or deflation since sale date due to economic influences Location Market or submarket area influences on sale price; surrounding land use influences. Physical Characteristics Attributes such as size, shape, utilities, frontage, zoning, etc. On the following page is a sales comparison grid displaying the subject property, the comparables and the adjustments applied. Page 41 Packet Page -195- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE SALES COMPARISON APPROACH Land Analysis Grlid Comp ; Comp 2 Comp 3 Comp 4 Comp 5 Name White "ke Boulevard Meridian Center - Fucillo Automotive Port FedExDistnbution NNP- Bexley LLC Willow Creek Acreage Airport Park Charlotte Site Centroplex Address White Lake Boulevard Treeline Avenue 202 Tamiami Trail NW 35th Avenue 3373 Abernethy 7880 Crissom Pkwy Drive City Naples Fort Myers Port Charlotte Ocala Land O Lakes Titusville Date 4/15/2014 1/6/2011 12/18/2012 7/22/2013 7/16/2013 4/1512013 Price $4.153.840 $3,100,000 $7,800,000 $8,700,000 $1,250,000 Acres 305.6 90.6 76.9 150.0 297.9 124.8 Acre Unit Price $45,918 $40,302 $51,997 $29,209 $10,016 Transaction Adjustments Property Rights Fee Simple Fee simple 0.0% Fee simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Private Private Financing Conventional Cash sale 0.00/6 Cash sale 0.00/6 Cash 0.01/. Equity 0.0% Equity 0.01/. Amt's Arms length, Antis Arm's Antis Conditions of Sale Cash Length 0.01/. RED sale 0.0% Length 0.0% Length 0.01/. Length 0.01/. Adjusted Acre Unit Price $45,848 540,302 $51,997 $29,209 $10,016 Market Trends Through 4/15/2014 0.00/0 0.01/ 0.01/. 0.0% 0.01/ 0.0°/ Adjusted Acre Unit Price $45,848 $40,302 $51,997 $29,209 $10,016 Location Average Superior Similar Superior Superior Inferior %Adjustment 1 -101/. 01% -20°/ -20% 25% $Adjustment 1 305.6 - $4,585 90.6 $0 76.9 - $10,399 150.0 - $5,842 297.9 $2,504 124.8 Acres %Adjustment -20% -20% -101/. 0°/ -15% $Adjustment None - $9,170 Installed - $8,060 None - $5,200 None $0 None - $1,502 Minimal Infrastructure %Adjustment -25% Ot/ 01% 00/0 00/1 S A4justmentl A 411,462 IPD $o Commercial Ceneral $0 PUD $o MPUD, C1 and C2 s0 CC and RC Zoning (CG) %Adjustment -5% -5% -5% -5% -5% $Adjustment 67% - $2,292 55% 42,015 1000/0 - $2.600 100% - $1,460 76% -$501 620/. %Usable %Adjustment 0% -20% -20% 00/1 01/. $ Adjustment $0 - $8,060 410.399 $0 $0 Adjusted Acre Unit Price $18,339 $22,166 $23,398 $21,907 $10,517 Net Adjustments -660.0% - 45.0°/ -55.0010 - 25.0°/ 5.0% Gross Adjustments 60.0% 45.0°/ 55.0% 25.00/. 45.0°/ Page 42 Packet Page -196- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE SALES COMPARISON APPROACH Comparable Sale Adjustments Price Adjustment The purchaser of comparable 1 also purchased mitigation lands in Hendry County simultaneously on a separate deed for $1,846,200. As the subject property will likely also require mitigation prior to development, no adjustment for the mitigation purchase is made. Property Rights All the comparable sales transferred in fee simple; therefore, no adjustment for property rights is required. Financing All the comparable sales had market orientated financing or were cash transactions; therefore, no adjustment for financing is required. Conditions of Sale All the comparable sales were arm's length transactions; therefore, no adjustment for conditions of sale is required. Economic Trends The following graph developed from CoStar shows commercial and industrial land sales in Southwest Florida from January 2011 through the current date. $80.000 S-10000 $60,000 $5©.000 $40,000 130.000 $20.000 $ 10.000 11 12 13 The trend indicates a relatively level corridor in sales prices ranging from $20,000 to $80,000 per acre starting from January 2011 through the current date. However, it is noted this is unadjusted raw data and does not relate directly to the subject. Page 43 Packet Page -197- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE SALES COMPARISON APPROACH The sales all occurred with this time period and it is our opinion that land prices have leveled out; therefore, a timing adjustment is not required. Location This adjustment reflects differences in market or submarket area influences on sale price; and surrounding land use influences. The following table details the demographic data for a 5 mile radius around the subject and each of the comparables. The comparables are analyzed for population growth potential, household income, home value, and traffic counts. Location Locational Adjustment - Site to Do Business (5 Mile Radius) Subject Comp 1 Comp 2 Comp 3 Naples Fort Myers Port Charlotte Ocala Comp 4 Land O Lakes Comp 5 Titusville 2013 Population 69,333 57,237 73,063 62,304 44,050 49,307 2018 Population 73,485 61,499 76,418 63,705 47,413 49,560 % Change 5.991/0 7.45% 4.59% 2.25% 7.63% 0.51% Median Household Income $47,617 $55,769 $42,688 $34,906 $69,159 $50,266 Median Home Value $168,752 $145,011 $115,368 $96,820 $211,670 $119,698 Traffic Count 45,265 23,800 26,000 25,500 37,500 10,300 Collier Blvd* Treeline Ave Tamiami Trail NW 10th St* SR 54 Grissom Pkwy Source: STDB Online The subject has the second highest surrounding population base within a five mile radius behind comparable 2 in Port Charlotte. Comparables 1 and 3 have a slightly lower population base and comparables 4 and 5 have significantly smaller population bases. Comparables 1 and 4 have superior median income levels, comparables 2 and 5 are relatively similar, and comparable 3 has inferior levels. Comparables 1, 2, 3, and 5 all have lower median home values while comparable 4 has significantly higher home values. The subject and comparable 3 do not have frontage on major arterials; however, they are both located at Interstate 75 interchanges. The traffic counts listed are for the closest arterial with a traffic count. Comparable 1 is located along Treeline Avenue just south of the Southwest Florida International Airport and is considered superior overall in terms of location. Comparable 2 is located along-Tamiami Trail in Port Charlotte. It has offsetting positive and negative attributes and no adjustments are required. Comparable 3 is located at an Interstate 75 interchange in Ocala. The central location, at an Interstate interchange, and within close proximity to the turnpike are all positive attributes for a distribution location. Comparable 3 is considered superior overall in terms of location. Page 44 Packet Page -198- 7/8/2014 11. C. WHITE LAKE BOULEVARD ACREAGE SALES COMPARISON APPROACH Comparable 4 is located at the northwest quadrant of State Road 54 and Suncoast Parkway in Land O Lakes. It is located approximately 25 minutes from downtown, Tampa and is in a growing area. Overall, comparable 4 is considered superior in terms of location. Comparable 5 is located along Grissom Parkway across from Space Coast Regional Airport. Overall it is considered inferior in terms of location. Size For this analysis, the comparables range in size from 76.9 to 297.9 gross acres. The subject site consists of 305.6 gross acres. Comparables 1, 2, 3, and 5 are all smaller in size and are adjusted downward as typically size and price per acre are inversely related. Infrastructure The subject property is heavily vegetated with no infrastructure similar to comparables 2, 3, and 4. Comparable 5 has minimal infrastructure installed; however, no adjustment could be quantified. At time of sale, the horizontal infrastructure including clearing, drainage and water retention system, fill and utilities, as well as a monument entrance sign had been installed for comparable 1. This sale is adjusted downward for the time and costs associated with this infrastructure, considering that in the current market buyers typically to not recognize the full replacement cost for installed infrastructure. Zoning The subject is currently zoned Agricultural (A) within the Rural Industrial Future Land Use Designation. As discussed, in the zoning and highest and best use analysis, the subject would likely be rezoned to a PUD consistent with the Rural Industrial District Future Land Use Designation. In 2006 the owner of the property applied to Collier County to rezone the subject to a Planned Unit Development (PUD) for light industrial /business park use. As proposed, it would consist of approximately 91 lots for development of up to 2.25 million square feet of light industrial type development. The rezoning /permitting application process was put on hold as Collier County considered the subject site for expansion of the existing landfill located to the east of the subject. All of the comparables were zoned at time of sale and are considered superior to the subject's current Agricultural (A) zoning. Wetlands / % Usable The subject property has 101.6 acres of wetlands (33 %) and 204 acres of uplands (67 %). Comparables 1, 4, and 5 have 55 %, 76 %, and 62% uplands respectively. They are all relatively similar to the subject and no adjustments could be quantified. Comparables 2 and 3 are both 100% uplands with no environmental permitting needed. However, all large developments have green space, buffer, and native vegetation requirements. This is considered in the adjustment for comparables 2 and 3. Page 45 Packet Page -199- WHITE LAKE BOULEVARD ACREAGE Sales Comparison Approach Conclusion 7/8/2014 11.C. SALES COMPARISON APPROACH The adjusted values of the comparable properties range from $10,517 to $23,398; the average is $19,266. Comparables 1 and 2 are located within the Southwest Florida market. Comparable 3 was purchased for immediate development of a FedEx Distribution Center. FedEx received incentives totaling approximately $3.47 million to build in Ocala. Comparable 4 was purchased by an adjacent land owner looking to control the use on the property adjacent to a proposed residential subdivision. Comparables 3 and 4 represent the highest adjusted indications of value. I place slightly less weight on comparables 3 and 4 and slightly more weight on comparables 1 and 2. Based on the preceding analysis I arrive at my final reconciled per acre value of $19,700. AS IS MARKET VALUE Indicated Value per Acre: $19,700 Subject Size: 305.6 Indicated Value: $6,020,324 Rounded: $6,000,000 Page 46 Packet Page -200- 7/8/2014 11. C. WHITE LAKE BOULEVARD ACREAGE RECONCILIATION RECONCILIATION The process of reconciliation involves the analysis of each approach to value. The quantity and quality of data applied the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. Finally, each is considered separately and comparatively with each other. As discussed previously, we use only the sales comparison approach in developing an opinion of value for the subject. The cost and income approaches are not applicable, and are not used. FINAL VALUE CONCLUSION Based on the data and analyses developed in this appraisal, I have reconciled to the following value conclusion(s), as of April 15, 2014, subject to the Limiting Conditions and Assumptions of this appraisal. VALUE CONCLUSIONS Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value, As Is Fee Simple April 15, 2014 $6,000,000 The value conclusion(s) are subject to the following hypothetical conditions and extraordinary conditions. These conditions may affect the assignment results. H othetical Conditions: None. Extraordinary Assum tions: None. Exposure and Marketing Times Exposure time is always presumed to precede the effective date of the appraisal and is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Marketing time is an estimate of the amount of time it might take to sell a property at the estimated market value immediately following the effective date of value. Based on our review of recent sales transactions for similar properties and our analysis of supply and demand in the local retail market it is our opinion that the probable marketing and exposure time for the property is 12 months. Page 47 Packet Page -201- WHITE LAKE BOULEVARD ACREAGE 7/8/2014 11.C. LIQUIDATION VALUE LIQUIDATION VALUE As requested, we also provide the liquidation value of the Fee Simple interest. Liquidation Value as defined by The Dictionary of Real Estate Appraisal S`" Edition is the most probable price that a specified interest in real property should bring under the following conditions: • Consummation of a sale within a short time period. • The property is subjected to market conditions prevailing as of the date of valuation. • Both the buyer and seller are acting prudently and knowledgeably. • The seller is under extreme compulsion to sell. • The buyer is typically motivated. • Both parties are acting in what they consider to be their best interests. • A normal marketing effort is not possible due to the brief exposure time. • Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. • 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. Page 48 Packet Page -202- 7/8/2014 11. C. WHITE LAKE BOULEVARD ACREAGE LIQUIDATION VALUE The following table summarizes recent liquidation comparables in the Southwest Florida market. As shown, the indicated discount from market value at time of the transaction ranges from 11 % to 84% with an average of 30 %. We have also conducted several interviews of brokers and auctioneers active in the Southwest Florida market. The following table details the estimated liquidation discount provided by each market participant. Page 49 Packet Page -203- Liquidation Comparables # Address Property Type Gty Sale Date Price Units S /Wit Rthanted Fsticanted Comments Market Value Discount Bank owned looking to liquidate 1 4433 Tindami Trail E Retail Naples 2/12/2013 $750.000 8,210 5)1.35 $120.00 24% relatively quickly. Bank owned looking to liquidate 2 112()(4l 1250 Sunnrdin Square land Fort Mvcts " 6/11/2013 $210.000 88.962 $236 $4.50 470 relatively quickly. Bank owned looking to liquidate.... 3 9201 -9301 Corkscrew Rd land Est- 4/25/2013 $2325.000 930.442. $2.50 $4.00 38 % relative) quickly. Y Bank owned looking to liquidate 4 Pine Island and Hibiscus Dr land Cape Coral 5 /15/2013 $1.210,000 579.073 $209 $150 16% _... relatively quickly. Bank owned looking to liquidate 5 90I5 Strada Stcll O OfficeCondo Naples Napks 9/1612013 5459.072 4.682 $98.05 $110.00 11% relative) cld Y 9w Y Bank owned looking to liquidate 6 6150 Diamond Centre Court Office Condo Naples 5/3012013 s449.000 4.120 $108.98 $130.00 16% relative) ick Bank owned looking to liquidate 7 21 %Illmmnkalcc Rd _. sec Condo Naples ,..... 10/29/2013 $335.000 _.. 2.840 ... $117.)6 ... $150.00 _. 21% .. relatively quickly. ..._. Bank owned looking to liquidate 8 15051 S Tamiami Trail off.. Fort Mvets " 5/22/2013 $2.705.000 21.429 $12613 $155,00 19% quickly. 9 4575 Via Royale Office Fan Myers 11/6/2012 $950,000 29.802 $31. 98 $6000 47% REO - Auction Sale. _.. .N ..... ..... _ _4 ,. . _... Short Sale; property was not ... 10 101101 Tamiami TratlN Office Naples 1/30/2012 $1.100.0(10 9. 880 $11134 o $15000 26% publicly marketed..... _. REO sale in 5/2011. Resold in 11 12820 F:enwood lent Oflioe Fort M7ets 5 /1') /2011 $25011(10 7.730 $32.34 44.24 27°/6 12/2011 at $342,000 or $44.24 ps£ 12 3908 -3935 Tollhouse Drive land Naples 12/22/2011 $79200 165.092 $0.48 303 84% Bank liquidation at auction. Bank owned looking to liquidate 13 474 Tamiami Trail Office Port Charlotte 4/18/2011 $275,000 4,240 $64.86 $76.65 15% quickly. Bank owned looking to liquidate 14 2103 -2119 Santa Barbara Blvd Office Cape Coral 2/18/2011 $750,000 15,932 $47.08 $7000 33% . quickly. Min 11/ Avg 30% Max 84% As shown, the indicated discount from market value at time of the transaction ranges from 11 % to 84% with an average of 30 %. We have also conducted several interviews of brokers and auctioneers active in the Southwest Florida market. The following table details the estimated liquidation discount provided by each market participant. Page 49 Packet Page -203- WHITE LAKE BOULEVARD ACREAGE Broker /Agent Dan Mahaney (Auctioneer) Shawn Stoneburner Chuck Smith. CCIM William Dill Michael Buko-,N ski Debra Johnson Shuey, CCIM. I'\PA. CLA Matt Stepan Craig Timmins, CCIM Liquidation Interviews Company The Forturc Co. Auctions Cushman & Wakefield Alliance Grubb & Ellis Realty Downing -Frye Realt} Inc. Re /Max Edge Coldwell Banker Commercial Premier Commercial Properties Investment Properties Corporation 7/8/2014 11.C. LIQUIDATION VALUE Es ti mated Discount Al least 50 °/b for auctioned properties 60% to 70% based on offers from investors 35% to 45% Bank owned property listed at approximatley 40% of market value 30°io to 40% 5M/6 to 60% for land, 25% to 50% for improved properties depending on the listing price. Approximately 25% if the property is priced appropriately. 50% for land Indicated Range 25% to 70% As shown the indicated range provided by the market participants is approximately 25% to 70% with the discounts of 60% to 70% generating offers and sales in less than a month. Based on the preceding analysis, and considering the most likely buyer for a "quick sale" is an investor; /speculator, we conclude to a liquidation discount of 35.0% from the concluded market value "as is" is required to induce a sale within six (6) months. The indicated liquidation valuation is as follows: Liquidation Valuation N/larket Value, As Is $6,000,000 Liquidation Discount $2,100,000 Liquidation Value $3,900,000 ERounded $3,900,000 Page 50 Packet Page -204- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE LIQUIDATION VALUE VALUE CONCLUSIONS Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value, As Is Fee Simple April 15, 2014 $6,000,000 Liquidation Value Fee Simple April 15, 2014 $3,900,000 The value conclusion(s) are subject to the following hypothetical conditions and extraordinary conditions. These conditions may affect the assignment results. Hv othetical Conditions: None. Extraordinary Assum tions: None. Exposure and Marketing Times Exposure time is always presumed to precede the effective date of the appraisal and is the 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. Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value level during the period immediately after the effective date of an appraisal. Based on our review of recent sales transactions for similar properties and our analysis of supply and demand in the local retail market it is our opinion that the probable marketing and exposure time for the property is 12 months. The liquidation valuation is based on a six (6) month marketing and exposure time. Page 51 Packet Page -205- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE CERTIFICATION LE R11kICFl 'fN I certify that, to the best of my knowledge and belief. 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. Our compensation for completing this assignment is not contingent upon the development 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. 7. 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 & Standards of Professional Appraisal Practice of the Appraisal Institute. 8. My reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. Rachel M. Zucchi, MAI, CCIM has made an inspection of the subject property. 11. No one provided significant real property appraisal assistance to the person signing this certification. 12. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. Page 52 Packet Page -206- WHITE LAKE BOULEVARD ACREAGE 7/8/2014 11.C. CERTIFICATION 13. This appraisal is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 14. We have not relied on unsupported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value. 15. Rachel M. Zucchi, MAI, CCIM has not appraised this property in the three years prior to accepting this assignment. 16. As of the date of this report, Rachel M. Zucchi, MAI, CCIM has completed the continuing education program of the Appraisal Institute. Rachel M. Zucchi, MAI, CCIM Florida State - Certified General Real Estate Appraiser RZ #2984 rzucchir,,rklac.com; Phone 239 -596 -0800 Ext. 203 Page 53 Packet Page -207- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ASSUMPTIONS AND LIMITING CONDITIONS ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is based on the following assumptions, except as otherwise noted in the report. 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal is subject to the following limiting conditions, except as otherwise noted in the report. 1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be Page 54 Packet Page -208- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ASSUMPTIONS AND LIMITING CONDITIONS scaled accurately for size. The appraisal covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and environmental matters. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the person signing the report. 11. Information, estimates and opinions contained in the report, obtained from third - party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 14. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 15. The current purchasing power of the dollar is the basis for the value stated in our appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The value found herein is subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. Page 55 Packet Page -209- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ASSUMPTIONS AND LIMITING CONDITIONS 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of any property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. In as much as compliance matches each owner's financial ability with the cost to cure the non - conforming physical characteristics of a property, we cannot comment on compliance to ADA. Given that compliance can change with each owner's financial ability to cure non - accessibility, the value of the subject does not consider possible non - compliance. A specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of the Client, its subsidiaries and /or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property and the person signing the report shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The person signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and /or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non - existent or minimal. 22. RKL Appraisal and Consulting, PLC is not a building or environmental inspector. RKL Appraisal and Consulting, PLC does not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. Page 56 Packet Page -210- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ASSUMPTIONS AND LIMITING CONDITIONS 23. The appraisal report and value conclusion for an appraisal assumes the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. The intended use of the appraisal is stated in the General Information section of the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 25. All prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. Page 57 Packet Page -211- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ADDENDA - APPRAISER QUALIFICATIONS ADDENDA *RKL Packet Page -212- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ADDENDUM A - APPRAISER QUALIFICATIONS ADDENDUM A APPRAISER QUALIFICATIONS :719! Packet Page -213- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ADDENDUM A - APPRAISER QUALIFICATIONS '-"--RKIL APPRAISALAND CONSULTING RKL Appraisal and Consulting, PLC COMPANY PROFILE: RKL Appraisal and Consulting, PLC was founded in 2009 by three designated Members of the Appraisal Institute. It is our mission to maximize our over 60 -years of combined appraisal experience to provide our clients with the highest quality of Real Estate Appraisal and Consulting Services. Rachel M. Zucchi, MAI, CCIM K.C. Lowry, MAI, CPA Louis C. Bobbitt, MAI Partner / Managing Director Partner Senior Partner rzucchi @rklac.com klowry @rklac.com lbobbitt @rklac.com BUSINESS FOCUS: Practice is focused on community /neighborhood shopping centers, retail and office buildings, industrial warehouse /distribution buildings, residential and commercial condominium and subdivision projects, hotels and motels, vacant land and special purpose properties. Specialized services include appraisal review, business valuations, market feasibility studies, acquisition/disposition counseling, and litigation support in connection with real estate transactions including bankruptcy, eminent domain, estate valuations, and matrimonial and equitable distribution. Clients served include banks and financial institutions, developers and investors, law firms, business /industry and government, life insurance companies and pension fund advisors, and mortgage bankers. 4500 Executive Drive, Suite 300 Naples, Florida 34119 Phone: 239 -596 -0800; Fax: 239 -596 -0801 www.rklac.com Packet Page -214- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ADDENDUM A - APPRAISER QUALIFICATIONS PROFESSIONAL QUALIFICATIONS OF Rachel M. Zucchi, MAI, CCIM EXPERIENCE: Partner / Managing Director of RKL Appraisal and Consulting, PLC Naples, FL (2009 — Present) President of D &R Realty Group, Inc. Naples, FL (2009 — Present) Senior Real Estate Analyst, Integra Realty Resources — Southwest Florida Naples, FL (2003 — 2009) Research Associate, Integra Realty Resources — Southwest Florida Naples, FL (2002 -2003) PROFESSIONAL Member: Appraisal Institute — MAI Certificate Number 451177 ACTIVITIES: Member: CCIM Institute - CCIM Designation Member: Naples Area Board of REALTORS Member: The American Real Estate Society (ARES) Licensed: Florida State Certified General Real Estate Appraiser License No. RZ 2984 Licensed: Real Estate Broker (Florida) License No. BK3077672 EXPERT Qualified as an expert witness in the Twentieth Judicial Circuit Court of WITNESS: Collier County EDUCATION: Bachelor of Arts Major in Economics Florida Gulf Coast University, 2002 Graduated Magna Cum Laude Honor Society, Key Club, Phi Eta Sigma Presented at Eastern Economic Association Conference Successfully completed real estate and valuation courses and seminars sponsored by the Appraisal Institute and others. BUSINESS Actively engaged in real estate valuation and consulting since 2003. Practice is focused FOCUS: community /neighborhood shopping centers, power centers, office - buildings, ' warehouse /distribution, multi - family and single family subdivisions, condominium developments, hotels /motels, vacant land and special purpose properties. Specialized services include appraisals, market feasibility studies, and litigation support in connection with real estate transactions. Clients served include banks and financial institutions, developers and investors, law firms, business /industry and government, and mortgage bankers. Valuations have been performed for condemnation purposes, estate, financing, and due diligence support. Packet Page -215- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ADDENDUM A - APPRAISER QUALIFICATIONS dZE1333MMOMMIMIM 3.7-1-110, 1:1 11 1 -1, 6, t STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD SEQ# L12 1019 0 19 5 3 . LICENSE NBR 110/19/20121126126274 !RZ2964 The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS. Expiration date: NOV 30, 2014 ZUCCHI, F.J.CHEL M 4500 M:ECUTIVE DRIVE SUITE 300 NAPLES FL 34119 i RICK SCOTT KEN LAWSON GOVERNOR SECRETARY DISPLAY AS RE'CUIRED BY LAW F Packet Page -216- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGEADDENDUM B - FINANCIALS AND PROPERTY INFORMATION ADDENDUM B FINANCIALS AND PROPERTY INFORMATION *RKL Packet Page -217- Page I of 1 Millage Area O 287 Millage Rates 0 *Calculations Sub. /Condo 100 - ACREAGE HEADER School Other Total Use Code 0 99 - ACREAGE NOT ZONED AGRICULTURAL 5.69 6.2427 11.9327 Latest Sales History 2013 Certified Tax Roll (Not all Sales are listed due to Confidentiality) (Subject to Change) Date Book -Page Amount Land Value $ 7,538,750 09/12/12 4839 -888 $ 300 ( +) Improved Value $ 0 03/21/06 4002 -2399 $ 0 ( =) Market Value $ 7,538,750 11/01/85 2165 -905 $ 03/01/74 582 -796 $ 0 (_) Assessed Value $ 7,538,750 School Taxable Value $ 7,538,750 (_} Taxable Value $ 7,538,750 If all Values shown above equal 0 this parcel was created after the Final Tax Roll Packet Page -218 - http://www.col lierappraiser.com/ main_ search /Recorddetail.html ?Map= No &FolioNum= 00298480005 5/2/2014 Page 1 of I Packet Page -219 - http://www.collierappraiser.com / main_ search /Recorddetail.html ?Map= No &FolioNum= 00298480005 5/2/2014 Search Results Collier County Tax Collector 3291 Tamiami Trail East, Naples FL 34112 2013 Tax Roll Inquiry System Print this page I Print Tax Bill Si,_n up for eBill for an electronic, paperless tax bill in 2014. Page 1 of 1 7/8/2014 11.C. OWNER INFORMATION PROPERTY INFORMATION Nam JASSET RECOVERY XVIII LLC Parcel: 00298480005 Acre: 301.55 Address: 11% CARLTON FIELDS PA Loc: NAPLES 11( 9apl (EIS Viewl Address: PO BOX 19101 Legal: 36 49 26 BEG NW CNR SEC 36 E Address: I Legal: 12647.82DT, S 5089.75FT, NWLY Address: Legal:11ALG ARC OF CUR CONC TO NE Address: MIAMI , FL 33101 -9101 12381.11 FT, NWLY + SWLY ALG VALUE /EXEMPTIONS Market Value: 7,538,750 Taxable Value: 7,538,750 TAX INFORMATION County: 27092.76 School St: 25948.38 School loc: 16947.11 City Tax: 0.00 Dependt: 5,398.50 Water: 2,471.20 Independ: 12,099.70 Voter Appr: 0.00 PAY TERMS Nov: 86359.34 Dec: 87258.92 Jan: 88158.50 Feb: 89058.07 Mar: 89957.65 Apr:0 May: PAYMENT INFO Paid Dt : 11/25/2013 Recpt: 11230 Mach: Paymt: 86 359.34 Mort: 0 Millage Code: 287 Homested Ex: 0� Agricltr Ex: Widow Ex: Blind Ex: 0 Disabled: 0 STATUS INFO. Non Ad Va: Installment: 0 Deferred: Bankrupt: 0 TUA: Now Due: U.0(1 Veteran Ex: 10 Wholly Ex-110 Civilian Ex: E0--1 Gross Tax: 89957.65 Appr fee: Advertising: 0.00 COMMENTS EXTRA LEGAL. INFORMATION ARC OF CUR TO S 305.68FT, N 1 DEG W2069.96 FT, N 2673.79FT TO POB CERTIFICA E INFORMATION Certificates most he paid with cash, cashiers check or money order Tax Year Split Cert. # Date Issued Paid Date Rec # Mach Sts "r D:1 Amount Paid Amt Due thru , Amt Due thru , 2011 0 0475 -12 05/31/2012 11/30/20]2 2550 ®® Il 482.01 Comment: Certificates most he paid with casb, cashiers check or money order New Search Back To List 2003 Parcel Information 12004 Parcel Information 12005 Parcel Infomiation 12006 Parcel Information 12007 Parcel Information 12008 Parcel Information 1 2009 Parcel Information 1 2010 Parcel Infom- ration 12011 Parcel Information 12012 Parcel Information Last Updated: 05/01/2014 5:00pm Packet Page -220- http:// colliertax. com /search/view.php ?ID= 472107138 &page= l &tc =1 &tax —Year =2013 51212014 INSTR 4744097 OR 4839 PG 888 RECORDED 9/25/2012 2:31 PM PAGES 2 DWIGHT E. BROCK, CLERK OF THE CIRCUIT COURT, COLLIER COUNTY FLORIDA DOC @.70 $2.10 REC $18.50 CONS $300.00 R MUNB LOAN HOLDINGS, LLC, a Foreign Limited Liability Company, as successor in interest to Mellon United National Bank, Plaintiff, VS. WALLACE L. LEWIS, JR., it and MARIAN HOLLY LEWIS a/k/a Marian H. Lewis, individuai Defend The undersigned Cldrk' O lam? Sale in this action on Septe\ objections to the sale have been i 7/8/2014 11.C. IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT IN AND FOR COLLIER COUNTY, FLORIDA GENERAL CIVIL DIVISION CASE NO.: 2011 - 1406 -CA R c� � f 12, 2012, for ithin the time and filed a Certificate of described herein and that no filing objections. The following property loc&ed�l;&Ih8j:.- ounty, Florida, and more particularly described as: Legal Description of Real Property: The West '/z of Section 36, Township 49 South, Range 26 East, Less and Except the land South of the Northerly Right of Way of Access Road No. 1, according to Road Book 3, Page 8, of the Public Records of Collier County, Florida. Description of Personal Property: All structures and improvements now and hereafter located on the property legally. described above and made a part hereof, the rents, issues and profits thereof, all furniture, furnishings, fixtures and equipment now located on the thereon, and also all gas and electric fixtures, heaters, air conditioning equipment, machinery, motors, bath tubs, sinks, water closets, water basins, pipes, faucets, and other plumbing and heating fixtures, refrigerator equipment, venetian blinds, which are now or may hereafter pertain to or be used with, in or on said premises, and which, even though they are detached or detachable, are and shall be deemed to be fixtures and accessions to the freehold and a part of the realty, and all Packet Page -221- * ** OR 4839 PG 889 * ** 0 0 7/8/2014 11.C. additions thereto and replacements thereof (which real property, improvements and personalty are hereinafter collectively called the "Property "); all present or future deposits, accounts, security deposits, contracts, contract rights, instruments, permits, licenses, chases -in- action or other general. intangible rights, of any nature whatsoever now or hereafter dealing with, affecting or Concerning the Property, any portion thereof or any interest therein, and now or hereafter existing, acquired or held by Debtor, and derived, arising from or relating to any operation, development, ownership or management of the Property or businesses or concessions conducted on the Property, including, without limitation: (i) any agreements for the provision of utilities to all or any portion of the Property, (ii) all deposits for the use of all or any portion of the Property, (iii) all revenue arising from, growing out of, or in connection with the use and/or occupancy of the Property, and all products and proceeds of the foregoing, (iv) all of Debtor's right, title and interest in and to all deposit accounts maintained with Secured Party or any affiliate of Secured Party, and (v) all other items of personal property used or useful in connection witir pre �a ton f the Property, together with all e.t ., accessories, parts, equip met ;ai.�aeeessannow attached to or used in connection therewith or y hereafter t a be placed in or added to the Property, and also any a all replacements of any, such property. was sold to ASSeL Vok \�.bC Co T �1n CC,� I+C -,.. F,Elo�sa V/-1. WITNESS my hand � Dated: / . f seal 2012. Copies furnished to: All Counsel/Parties of Record CSC - \At-, --�>, A- --�Co t "meLn Yong ILeos�er whose address is 33131 -41��/ r j k�l gj� Court of . 'i ;'2x,12. .1:� � ,/ ter, ...,,. ��•�. DW�GrI 1� BROCK,- acurt �!�e k' C By: As Dbpbty Cferk�, —� =�e4h s , Packet Page -222- Dyer, Riddle, Mills & Precourt, inc. U8B ENGINEERS - SURVEYORS - PtANNERi - iCIENTiETi Principals Wayne D Chaffoux Donaldson K, Barton, Jr. Lucius J Cushman. Jr Jon S. Meadows Lawrence L Smith, Jr. William T.Stone September 2, 2008 Ms. Claudine Auclair Principal Planner a Collier County Transportation Planning Dept. 2885 S. Horseshoe Drive Naples, FL 34104 Subject: Wallace L. Lewis, Jr. Parcel Environmental Due Diligence Letter Report Dear Ms. Auclair: 7/8/2014 11.C. DRMP Job # 06- 1087.000 Dyer, Riddle, Mills & Precourt, Inc. (DRMP) is pleased to provide this Environmental Due Diligence letter report to Collier County, examining the potential wetland and listed species issues associated with the County's potential purchase and joint - venture development of the Wallace L. Lewis, Jr. parcel (parcel ID #00298480005). INTRODUCTION The Wallace L. Lewis, Jr. parcel (parcel ID #00298480005) is a rectangular parcel, totaling 305.56± acres in size, surrounded by Interstate 75 to the south, a Collier County landfill to the east, Collier County-owned undeveloped lands to the north, and the White Lake Industrial Park and CityGate DRI to the west. Specifically, this parcel is located in part of Section 36, Township 49 South, Range 26 East in Collier County, Florida. A location map is provided as Figure 1. Collier County is considering a development plan for this parcel that would be a joint - venture between the County landfill, the City Gate DRI, and Collier County Department of Transportation. The Concept Plan (Figure 2), as provided by Collier County Department of Transportation, depicts the future expansion of the landfill on the eastern half of the property while the proposed Segment 3 of the Wilson Boulevard Extension/Benfield Road Corridor Study, a joint -use pond shared by Collier County DOT and the City Gate DRI, and a hydrologic flow way, encompasses the western half of the parcel. The County has hired Dyer, Riddle, Mills and Precourt, Inc. (DRMP) and Passerella & Associates to examine the potential occurrence of wetlands and listed species on the parcel, to 941 take Baldwin Lane Orlando, Florlda 32814 approximate the potential impacts to wetlands and listed species that may occur, should such a Phone: 487.896.8594 Fax: 487.896.4836 development be implemented, and to approximate the mitigation costs associated with these potential environmental impacts. Boca Ralon, Florida Charlotte, North Carolina Chith DRMP Inc. and Passerella & Assoc. conducted no field visits durin g this site assessment. However, Carolina Columbia, South Deland, Florida , significant environmental assessment of this parcel has been conducted by the owner's agent, Collier Ft. Myers, Florida Gainesville, Florida Environmental Consultants, Inc. (CECI), in support of the Century Park Center project, proposed by Jacksonville, Florida the property owner, for development on this parcel To obtain site - specific parcel information, Lakeland, Florida Norcross. Georgia without conducting a site visit to the parcel, DRMP biologist reviewed environmental documentation Panama City Beach, Florida Pensacola, Florida regarding wetlands and listed species, which has been reviewed and accepted b the South Florida g g P P y Tallahassee, Florida Water Management District (SFWMD), in support of the Environmental Resource Permit (ERP) Tampa, Florida application. 1.800.375.3767 www.drmp.com Packet Page -223- 7/8/2014 11.C. EXISTING CONDITIONS This undeveloped parcel is predominantly forested. Approximately 204 acres are upland forested communities, while approximately 101 acres are wetland forested communities. Upland communities are dominated by pine flatwoods (FLUCFCS 411), while the majority of wetland communities are pine - cypress - cabbage palm (FLUCFCS 624). A land use map and a corresponding FLUCFCS code table have been included as Figure 3 and Table 1, respectively. Table 1. FLUCCS CODE TABLE (CECI, Inc. 5131108) ID Upland/ nd CODE DESCRIPTION ACRES SITE I U 411 Pine Flatwoods _ 1.16 0.38 _ 2 U 411 Pine Flatwoods 1.72 0.56 3 U 411 Pine Flatwoods 3.06 1.00 4 U 411 Pine Flatwoods J- 14.30 4.68 �5 U 411 Pine Flatwoods_ y` V 1.79 0.59 6 U 411 A4I1 Pine Flatwoods 3.14 43.78 1.03 14.33 7 U Pine Flatwoods 7A _ U 411 _ Pine Flatwoods 14,00 4.58 7B L U 411 Pine Flatwoods 2.96 0.97 7C U 411 Pine Flatwoods 0.66 0.22 71) U 411 _ Pine Flatwoods 25.19 8.24 8 U 411/310 Pine Flatwoods + Herbaceous 2.83 0.93 9 U J 6249M Melaleuca/C5 press, Pine, Cabba ge Palm; Drained 79.30 25.95 10 U 4249_ Cabba �e Palm 2.97 0.97 11 U 4249 Melaleuca; Drained_ 0.34 0.11 12 U 4249 Melaleuca; Drained 6.76 2.21 13 W 424 ' Melaleuca 1.26 0.41 14 _ W 424 M_elaleuca� - -_ Melaleuca 0.64 0.55 0.21 15 W 424 0.18 16 W 624H 624H Pine- Cypres- Cabbage Palm _ 68.32 22.3_6 16A W Pine -C ,} 1 res- Cabbage Palm 2.62 0.86 16B W 624H Pine -C : >res - Cabbage Palm; Burned _ _ 7.82 2.56 16C W 624H Pine -Cy pres- Cabbage Palm; Burned 6.27 2.05 17 _ W 624H Pine -Cypres -Cabba oe Palm 13.11 4.29 18 _ W 6249M Melaleuca/C ; press, Pine, Cabbage Palm; Drained 1.01 0.33 TOTAL 305.56 100.00 % of DESCRIPTION ACRES SITE Uplands 203.96 66.75 Wetlands 101.60 33.25 TOTAL 11Qd ciuster011projects\Projects06 106- 1087.000_North- South_Corridor Study_East of CR 95 t1Environmentall reports \Lewis _parcel_DueDiligence.doc Pane 2 of 12 Packet Page -224- 305.56 100.00 This parcel has been subject to extensive exotic vegetation quinquenervia), Brazilian pepper (Schinus terebinthifolius) auriculiformis) have encroached and dominated approximately including much of the existing wetland systems. WETLAND ASSESSMENT 7/8/2014 11.C. intrusion. Melaleuca (Melaleuca and ear -leaf acacia (Acacia 105 acres of the subject parcel, The following wetland assessment has been prepared to address the potential wetland impacts associated with the proposed Concept Plan (Figure 2). For purposes of this assessment, the wetland delineation was derived from the FLUCFCS map (Figure 3) prepared by Collier Environmental Consultants, Inc. (CECI) has been utilized to determine the Project's potential wetland mitigation requirement. Field verification regarding the FLUCFCS map's accuracy was outside this assessment's scope of services. WETLAND DELINEATION The South Florida Water Management District 2004 -2005 Land Use data shows that approximately 202 acres of the Lewis parcel were mapped as wetlands. However, during detailed field review of the project site, SFWMD Senior Regulatory Scientist Laura Layman certified that the CECI Land Use delineation, indicating only 101.6 acres of wetlands, was accurate. In a conversation with Ms. Layman, she indicated to DRMP biologists that a large portion of land ( FLUCFCS 6249M; 79.3 AC, 25.95% of the site) that was historically wet, did not have the appropriate soil characteristics or indicators of hydrology required to classify the land as wetlands, despite the inclusion of cypress trees in the canopy. Ms. Layman stated that she was comfortable with the wetland delineation presented by CECI, as evident by her informal approval of this delineation on 9/11/06 (Figure 3A), and was confident that if the County were to acquire this property with the intent of implementing their conceptual development plan, that the SFWMD would honor this wetland line for their project as well. Therefore, we can confidently conclude that the subject parcel has 101.6 acres of wetlands within the project boundary. WETLAND IMPACTS Within the Concept Plan, nearly all of the parcel would be permanently impacted from its current condition, with the exception of a 23.34 acre roadway interchange infield. This area is not designated for active use, though stormwater ponds to treat roadway runoff are commonly designed in roadway interchange infields. Six acres of this infield are wetlands, while the rest are uplands. Assuming that these six acres were preserved, and any necessary ponds were located in uplands, the development of the Concept Plan would result in approximately 95.6 acres of wetland impacts. In order for these wetland impacts to be allowed, SFWMD and the Army Corps of Engineers (ACOE) will first require the County to demonstrate that they have eliminated and reduced wetland impacts to the greatest extent practicable, such that the wetland impacts proposed are necessary to achieve the goals of the project, and that there were no other viable alternatives to achieve those project goals without incurring the proposed wetland impacts. Of particular importance to this justification will be a thorough explanation as to why the County could not expand the landfill to the north of its existing location, onto the approximately 360 acres of land currently owned by the County, which would avoid impacting the wetlands existing natural flow way on the Lewis parcel. The Concept Plan describes the preservation of approximately 23 acres of uplands and wetlands within a roadway interchange infield. Additionally, the Concept Plan calls for the installation of an active hydrologic bypass system which would collect hydrology north of the parcel, and channel it through the parcel, into the canal south of the project, parallel to 1 -75, where it flows to the CR 951 \\Orl cluster0l \projectslProjects06\06- 1087.000 North - South Corridor Study_East of CR 95 I\Environmental\ reports \Lewis _parcel_DueDiligence.doe Page 3 of 12 Packet Page -225- 7/8/2014 11.C. canal, and ultimately out to estuaries along the Gulf coast. The preservation of habitat within the roadway interchange infield is not likely to retain much ecological function and value after the implementation of the project, as it will be effectively isolated by the surrounding roadway and exit ramp system, reducing its hydrologic connectivity, accessibility to local wildlife, and increasing exposure to infiltration by exotic vegetation. Such a small preservation parcel would not likely provide much mitigation lift compared to anticipated impacts, However, the proposed hydrologic bypass system, preserving the hydrology from drainage north of the parcel to the CR 951 canal and ultimately, to coastal estuaries, could provide some mitigation credit to partially offset both direct and secondary impacts. UMAMASSESSA&NTS UMAM assessments for all of the wetland systems onsite have been conducted and negotiated with SFWMD during the permitting process for Century Park Center. UMAM functional delta and functional loss scores for the wetland systems, uniquely identified on the CECI FLUCFCS map, were as follows: Table 2. UMAM Scores Wetland Wetland Acres I UMAM Delta Functional Loss* 13 1.26 _ 0.64 0.40 i 0.50 14 0.40 --; -0.26 _ 15 0.55 0.40 0.22 _ _ 16 68.32 0.47 - - -- 0.47 { 32.11 16A 2.62 -_ 1.23 16B 7.82 0.47 1 3.68 - 16C _ 6.27 0.47 2.95 17 7.11 0.43 0.46 - 3.06 - - - -- 0.46 18 1.01 Total 95.60 44.47 * Functional Loss = Wetland Acres x UMAM Delta LISTED SPECIES ASSESSMENT The following listed species assessment has been prepared to address the potential listed species concerns and compensation required for Florida panther (Puma concolor coryi) habitat impacts associated with the proposed Concept Plan (Figure 2). For purposes of this assessment, the FLUCFCS map prepared by Collier Environmental Consultants, Inc. (CECI) has been utilized to determine the Project's potential panther habitat compensation requirement (Figure 3). Field verification regarding the FLUCFCS map's accuracy was outside this assessment's scope of services. LISTED SPECIES LITERATURE SEARCH Literature resources were consulted regarding documented listed species occurrences on or in the vicinity of the Project. The literature sources reviewed included Florida's Endangered Species, Threatened Species and Species of Special Concem, Official Lists;' Florida Atlas of Breeding Sites for Herons and Their Allies;2 the Florida Panther Habitat Preservation Plan (HPP);3 the Landscape 'Florida Fish and Wildlife Conservation Commission. 2007. Florida's Endangered Species, Threatened Species and Species of Special Concern. Official Lists, Florida Fish and Wildlife Conservation Commission. Tallahassee, Florida. 2Runde, D.E., J.A. Gore, J.A. Hovis, M.S, Robson, and P.D. Southall. 1991. Florida Atlas of Breeding Sites for Herons and Their Allies, Update 1986 - 1989. Nongame Wildlife Program Technical Report No. 10. Florida Game and Fresh Water Fish Commission, Tallahassee, Florida. \\ Or1_ cluster0l \projects\Projects06 \06- 1087.000 North - South Corridor Study ,East of CR- 95 1\Environmental\rcports \Lewis _parcel_DueDiligence.doc Page 4 of 12 Packet Page -226- 7/8/2014 11.C. Conservation Map for the Florida Panther;4 and the U.S. Fish and Wildlife Service (USFWS) database for recorded locations of the Florida panther, Florida black bear (Ursus americanus floridanus), bald eagle (Halieatus leucocephalus), red - cockaded woodpecker (Picoides borealis) (RCW), and wading bird rookeries in Collier County. The database information for the Florida panther is current to June 2007; the bald eagle information is current to September 2007; the wood stork (Mycteria americana) information is current through 2006; and the Florida black bear, wading bird rookeries, and the RCW information is current to 1999. Figure 4 shows the Florida Fish and Wildlife Conservation Commission (FWCC) database locations of listed species occurrences, including Florida panther telemetry points on or in the Project's vicinity. The Florida Atlas of Breeding Sites for Herons and Their Allies was referenced for the location of breeding colonies for both listed and non- listed wading birds including, but not limited to, the little blue heron (Egretta caerulea), tri- colored heron (Egretta tricolor), snowy egret (Egretta thula), white ibis (Eudocimus abbus), wood stork, and roseate spoonbill (Ajaia ajaja). There were no breeding colonies located on or in the vicinity of the Project. The USFWS' Draft Standard Local Operating Procedures for Endangered Species (SLOPES) Wood Storkss recognizes a 30 kilometer (18.6 mile) zone surrounding a wood stork colony boundary as a core foraging area. According to the FWCC data, the Project is located within three wood stork rookeries (Colony Nos. 619018, 619310, and 619161). The rookeries are located approximately 12 and 13 miles north and 15 miles northeast of the Project, respectively (Figure 5). Compensation for impacts to wood stork habitat may be assessed during the regulatory review of the Project. A wood stork foraging analysis will be required to determine if the Project will result in adverse impacts to the species. Typically, on -site wetland mitigation and/or the purchase of wetland mitigation credits may off -set any adverse impacts to the species. The FWCC database for the Florida black bear documents a single occurrence in the northwest corner of the Project (Figure 4). The FWCC database for bald eagle nests shows no nests within the Project boundary or within 660± feet of the parcel. The National Bald Eagle Management Guidelines and state Bald Eagle Management Plan? recommend a 660± foot buffer zone to an active or alternate eagle nest under most circumstances. The nearest documented bald eagle nest is approximately 2.0 miles southeast of the Project. The Project abuts the City Gate Development of Regional Impact (DRI) which contains two documented RCW locations and eight others are documented within 1.5± miles to the east of the site. There are no documented occurrences on the Project, according to the May 2002 and May 2006 RCW survey reports prepared by CEC1. However, CECI reported in 2002 that "a cavity tree was discovered on or near the subject parcel." Iiowever, more recently, the May 2007 RCW report does not document the existence of a cavity tree on the Project. This is most likely due to the occurrence of several wild fires on the property. }Logan, Todd, Andrew C. Eller, Jr., Ross Morrell, Donna Ruffner, and Jim Sewell. 1993. Florida Panther Habitat Preservation Plan South Florida Population. U.S. Fish and Wildlife Service; Gainesville, Florida. °Kautz, R., R. Kawula, T. Hoctor, J. Comiskey, D. Jansen, D. Jennings, J. Kasbohm, F. Mazzotti, R. McBride, L. Richardson, K. Root. 2006. How much is enough? Landscape -scale conservation for the Florida panther. Biological Conservation, Volume 130, Issue 1, Pages 118 -133. UUSFWS. 2002. Draft Standard Local Operating Procedures for Endangered Species Wood Storks. South Florida Ecological Services Office. "USFWS. 2007. National Bald Eagle Management Guidelines. ?FWCC. 2008. Bald Eagle Management Plan. %,Orl cluster0llprojects%RmjectsM06-1087.000_North- S0urh_Corridor_Study_East_ot' CR 951`'Lnvironmental\ reports \Lewis _parcel_DueDiligence.doc Page 5 of 12 Packet Page -227- 7/8/2014 11.C. The FWCC Florida panther telemetry data documents numerous panther telemetry points within two miles of the Project. The Florida panther Landscape Conservation Map with an overlay of the Project is included as Figure 6. According to the map, the entire parcel is located within the primary zone. FLORIDA PANTHER HABITAT COMPENSATION ANALYSIS For purposes of this analysis, the listed species requiring the greatest habitat compensation was assessed to determine the listed species compensation requirements for the concept plan. This species is the Florida panther. The USFWS' panther habitat assessment method was utilized to determine the amount of potential Florida panther habitat that would be impacted by the proposed land uses on the parcel. The assessment calculates the number of panther habitat units (PHUs) required for compensation based on the land's vegetative cover types to be impacted and the panther zone the Project is located within. The proposed on -site panther habitat was assessed using the model adapted from Kautz el al.8 It should be noted that revised cover type values are pending and upon approval from the USFWS, may require revisions to this assessment. Based on CECI's FLUCFCS map, the Project's habitat impacts by FLUCFCS code and acreages are presented in Table 1, as seen previously within the Existing Conditions discussion, and below. Table Ia. FLUCFCS Summary FLUCFCS Code Description W Approximate Acreage 411 Pine Flatwoods _ 114.59 _ 424 _ Melaleuca 2.45 - 4249 Melaleuca, Drained_ _ _ . 7.10 428 _ Cabbage Palm _ 2.97 6249M Melaleuca/Cyl-tress, Pine, Cabbage Palm, Drained 80.31 624H Pine /Cv ress /Cabbage Palm W_ _ 98.14 Total 305.56 The vegetation types within the parcel are given a habitat suitability value of zero to ten based on the known preferred habitat types of the Florida panther. A score of zero would be applied to land uses such as development, roads, or open water. A score of ten would be applied to habitats such as hardwood forest or xeric oak scrub. The values are multiplied by the acreage of the habitat types to produce a preliminary PHU sum for the habitat type. A base ratio of 2.5 is then applied to this sum. The purpose for the base ratio is to provide for the protection of sufficient acreage of primary zone lands. Additionally, the USFWS applies a landscape multiplier of 1.0, 0.69, or 0.33 depending on the location of the project (i.e., primary zone, secondary zone, or other zone, respectively). The final functional value for the Project can be calculated as follows; Habitat Value x Acreage x Base Ratio x Landscape Multiplier = Panther Habitat Units The Florida Panther Effect Determination Key issued by the USFWS,9 states that projects resulting in a net increase of traffic into the Panther Focus Area may require additional habitat compensation. For eKautz el al., op. cit. 9USFWS. 2007. Florida Panther Effect Determination Key. U.S. Fish and Wildlife Service. South Florida Ecological Services Office. Vero Beach, Florida. Wrl_ cluster0l \projects\Projects06 \06- 1087.000 Nonh- South_Comdor_Study_East of CR_95lTnvironmentalVeports \Lewis _parcel_DueDiligence.doe Page 6 of 12 Packet Page -228- 7/8/2014 11.C. purposes of this analysis, the entire Project is considered to be directly impacted by the proposed concept plan due to the fragmentation of habitat. Tables 3 and 4 demonstrate the cover types, estimated exotic acreage, and cover type values used in this assessment. Table 3. Cover TN!nes with Breakdown of FLUCFCS Codes Cover Type FLUCFCS Codes Total Acreage Cover Type Acrea a Exotic Acreage` Exotic Plants 424 9.55 - 2.23 _ Shrub Swam Brush 428 _ 2.97 _-9.55 2.23 0.74 Hardwood/Pine Forest 6249M. 624H 178.45 112.24 Y 66.21 Pine Forest 411 1 I4.59 85.94 28.65 Totals _ 305.56 200.41 105.15 `Exotic coverage derived from FLUCFCS map provided by CECI. Table 4. Cover Types and PHU Calculation Cover Type Habitat Suitability Value Acreage PHUs Exotic Plants 3 — -5 9 _A 105.15 315.4_5 11.15 _.._._. Shrub Swam Brush 2.23 _ _ Hardwood/Pine Forest 112.24 1,010.16 Pine Forest _ _ 9 _ 85.94_ _ 773.46 Totals _ 305.56 2,110.22 Table 5 below provides the final calculation of required PHU compensation for the proposed concept plan. Table 5. Total PHUs Required MITIGATION ESTIMATES WETLAND ACTIGA TION ALTERNATIVES Mitigation for wetland impacts usually consists of restoration, enhancement, creation, or preservation of wetland and/or upland areas. In some cases, a combination of mitigation types is the most efficient and cost effective approach to offset adverse impacts resulting from the regulated activity. Under current SFWMD and ACOE rules and regulations, several options exist for both off -site and on -site mitigation. These options are described below. The following mitigation options satisfactorily compensate for the environmental impacts proposed by the development of these property parcels. Wetland Preservation Mitigating wetland impacts using preservation of wetlands requires that land be placed under a conservation easement with deed restrictions limiting the development options available in the future. The amount of land needed for mitigation varies, on a case by case basis, based on the quality of habitat placed under the conservation easement compared to the quality of the habitat impacted. 110r1 cl uster0l ',projects\Projects06106- 1087.000 North - South_Conidor_Study_East_of CR 951 \Environmcntall reports lLewis_parcci_DucDitigence.doe Page 7 of 12 Packet Page -229- Landscape PHUs Required Pantber Zone PHUs Base Ratio Multiplier for Compensation 2,110.22 2.50 1.00 5,275.55_ Primary Zone Total 5,275.55 MITIGATION ESTIMATES WETLAND ACTIGA TION ALTERNATIVES Mitigation for wetland impacts usually consists of restoration, enhancement, creation, or preservation of wetland and/or upland areas. In some cases, a combination of mitigation types is the most efficient and cost effective approach to offset adverse impacts resulting from the regulated activity. Under current SFWMD and ACOE rules and regulations, several options exist for both off -site and on -site mitigation. These options are described below. The following mitigation options satisfactorily compensate for the environmental impacts proposed by the development of these property parcels. Wetland Preservation Mitigating wetland impacts using preservation of wetlands requires that land be placed under a conservation easement with deed restrictions limiting the development options available in the future. The amount of land needed for mitigation varies, on a case by case basis, based on the quality of habitat placed under the conservation easement compared to the quality of the habitat impacted. 110r1 cl uster0l ',projects\Projects06106- 1087.000 North - South_Conidor_Study_East_of CR 951 \Environmcntall reports lLewis_parcci_DucDitigence.doe Page 7 of 12 Packet Page -229- 7/8/2014 11.C. Collier County's concept plan calls for the on -site preservation of approximately 16 acres of uplands and six acres of wetlands within a roadway interchange infield. Due to the surrounding roadway development, this mitigation tract is not likely to be given large amounts of mitigation credit. However, it may provide some measurable mitigation relief, if the area is not utilized for stormwater treatment. In order for Collier County to utilize this wetland mitigation option for significant mitigation credit, it would need to offer an additional property, owned by Collier County, for preservation. 2. Creation/Restoration For creation of wetland systems, the SFWMD would require annual vegetative and hydrologic monitoring to ensure the success of the plantings for approximately 3 -5 years. Cost for restoration is usually lower than creation, but both vary considerably, depending on land costs, and the amount of grading and planting required. The hydrologic bypass system that the County Concept Plan proposes would likely fall under this category of mitigation. Some mitigation credit may be available, depending upon the design of the flow way (i.e. depending on the amount of actual created wetland habitats along the flow way, versus just an artificial canal design). However, it is anticipated that the actual hydrologic function of the flow way, connecting hydrology from north of the parcel to the CR 951 canal, would provide minimal mitigation lift. Instead, it would prevent the project from causing additional adverse secondary wetland impacts to downstream wetland systems and coastal estuaries, which may suffer from a decrease in adequate hydrology if the natural wetland flow way, proposed to be impacted by the landfill expansion, was not replaced in function by the proposed hydrologic bypass system. Mitigation Banking A wetlands mitigation bank is a significant parcel of land, usually with both upland and wetland habitat, that has been restored, created, enhanced, and preserved, and which is then set aside to compensate for future conversions of wetlands for development activities. A wetland bank may be created when a government agency, a corporation, or a nonprofit organization undertakes such activities under a formal agreement and permit from the state and federal regulatory agencies. The value of a bank is determined by quantifying the wetland values restored or created in terms of "credits." These credits are then sold and may be used as mitigation for development. Once credits have been purchased, the wetland mitigation requirements for the project have been satisfied. This project falls within the service area of three mitigation banks; Big Cypress Mitigation Bank, Corkscrew Regional Mitigation Bank, and Panther Island Mitigation Bank. Each of these banks can be used to mitigate for wetland impacts as well as for impacts to panther habitat. Credit costs at each mitigation bank are as follows: Table 6. Mitigation Bank Summary K ation Bank Credit Type Cost/Credit I PHU's /Credit Cost/Add'l PHUs Big Cypress Mitigation Bank WRAP $60,000 8.96 $2,000 Corkscrew Regional Mitigation Bank UMAM $75,000 14 $2,000 Panther Island Mitigation Bank WRAP ^ $61,000 25.6 $1,500 \\Orl_clustcr0l \ projects \Proicets06 \06- 1087.000_horth- South Corridor_Study_Hast _ of CR_95ITnvironmenta[\ reportsl ].ewis_parccl_DueDiligence.doc Page 8 of 12 Packet Page -230- 7/8/2014 11. C. For the purposes of this evaluation, iviitigation Banking is the option which will be presented, as o is the only one that can be accurately cost - estimated with this level of preliminary planning and analyses. PANTHER HABITAT MITIGATIONALTERNATIVES A panther habitat compensation option available to Collier County government departments, such as the Department of Transportation, is the use of properties purchased through Conservation Collier tax funds. The property will need to be located within the panther primary zone and additional assessments will be needed to determine the site's PHU compensation value, prior to placing a potential cost estimate on such an option. Another alternative is mitigation banking. As with wetland mitigation, purchase of credits can offset impacts to panther habitat. For the purposes of this evaluation, this is the option which will be presented, as it is the only one that can be accurately cost - estimated with this level of preliminary planning and analyses. WETLAND AND PANTHER HABITAT COMPENSATION COST ESTIMATE With the different costs per credit, the credit variation between WRAP and UMAM assessments, and the different amounts of PHU value associated with each mitigation credit, an analysis of each mitigation bank was performed to determine which would provide the most cost effective solution for this project. For UMAM banks, the number of credits required to offset wetland impacts is equal to the Functional Loss, as determined by UMAM calculations. For WRAP banks, a different set of evaluations, ratios, and calculations would need to be used. But for the purposes of estimating, through years of comparing WRAP and UMAM scores, we have applied a conservative estimate of 1.5 WRAP credits required for every UMAM credit. This ratio will be used when calculating wetland mitigation at WRAP based banks. Big Cypress Mitigation Bank Wetland Mitigation 1.5 WRAP ratio x 44.47 Functional Loss = 66.70 credits required 66.70 credits x $60,000 /credit = $4,002,300.00 Panther Mitigation 66.70 credits (purchased for wetlands) x 8.96 PHUs /credit = 597.63 PHUs credit after wetlands 5,275.55 PHUs required — 597.63 purchased = 4,677.92 PHUs remaining to be purchased $2,000/PHU x 4,677.92 PHUs required = $9,355,840.00 Total Cost Estimate at Big Cypress Mitigation Bank = $13,358,140.00 \IOrI_cluster0l\ projects \Projects06 \06 - 1087.000 North - South Corridor Study_East_of CR_951\Environmenta]Vcports \Lewis _pamcl_DueOiligence.doc Page 9 of 12 Packet Page -231- 7/8/2014 11. C . C^rk$�re.0 17rn, Jonal Mitigation Rant Wetland Mitigation 44.47 Functional Loss = 44.47 credits required 44.47 credits x $75,000 /credit = $3,335,250.00 Panther Mitigation 44.47 credits (purchased for wetlands) x 14 PHUs /credit = 622.58 PHUs credit after wetlands 5,275.55 PHUs required — 622.58 purchased = 4,652.97 PHUs remaining to be purchased $2,000/PHU x 4,652.97 PHUs required = $9,305,940.00 Total Cost Estimate at Corkscrew Regional Mitigation Bank = $12,641,190.00 Panther Island Mitigation Bank Wetland Mitigation 1.5 WRAP ratio x 44.47 Functional Loss = 66.70 credits required 66.70 credits x $61,000 /credit = $4,068,700.00 Panther Mitigation 66.70 credits (purchased for wetlands) x 25.6 PHUs /credit = 1,707.52 PHUs credit after wetlands 5,275.55 PHUs required — 1,707.52 purchased = 3,568.03 PHUs remaining to be purchased $1,500/PHU x 3,568.03 PHUs required = $5,352,045.00 Total Cost Estimate at Big Cypress Mitigation Bank = $9,420,745.00 The Florida Panther Conservation Bank is a panther habitat mitigation bank, but does not have wetland mitigation credits. Their current cost per PHU is $2,000.00, however, they are willing to reduce their price to $1,500.00 per PHU for projects with PHU requirements greater than 2,000, according to recent conversations with bank representatives. Therefore, this panther habitat bank could provide competitive pricing with Panther Island Mitigation Bank, for PHUs only, after the wetland mitigation requirement had been satisfied. 1 \Orl_clustero Il projects \Projects06 \06- 1087.000_North- South_Corridor Study East of CR 951\ Environmental\ reports \Lewis_parcel_DueDiligence.doc Page 10 of 12 Packet Page -232- 7/8/2014 11. C. PERMITTING CONSIDERATIONS The development of this parcel of property will require permits from the following state and federal regulating agencies: State Government: • South Florida Water Management District ( SFWMD) Preliminary estimates of wetland impacts, assuming complete development of the property parcels, are approximately 95.6 acres. For a project with wetland impacts greater than 1.0 acre, an Individual Environmental Resource Permit (ERP) will be required. SFWMD requires a non - refundable application fee based upon the total project acreage. The SFWMD application fee schedule for wetland impacts on projects between 100 acres and 640 acres is $7,750.00 • Florida Fish and Wildlife Conservation Commission (FFWCC) Consultation with the FWCC will also be required as part of the South Florida Water Management District and local development approval processes • Florida Department of Environmental Protection (FDEP) For projects that propose to disturb more than one acre of soil during construction, a National Pollutant Discharge Eliminated System (NPDES) permit will be required. For a project size larger than five acres, there is a $400.00 application fee associated with this permit. Federal Qovemment • United States Army Corp of Engineering (ACOE) A Section 404 Individual Dredge and Fill permit will be required for this project, as the proposed wetland impacts are greater than 0.5 acres. ACOE and SFWMD permits are issued from a joint application submitted to both agencies. ACOE does not charge additional application fees above those charged by SFWMD. • United States Fish and Wildlife Service (USFWS) ACOE will coordinate with USFWS on federally protected species, through formal Section 7 Consultation for impacts to threatened and endangered species habitat.. USFWS will provide a Biological Opinion regarding the potential project effect to these listed species. These species include but are not limited to the Florida panther and the wood stork. CONCLUSION Environmental impacts associated with the proposed project could be substantial. Impacts to wetlands, as well as federally protected species, such as the Florida panther and wood stork, will require mitigation to offset these adverse impacts. Multiple mitigation alternatives have been described. It is important to reiterate that a successful mitigation plan for Collier County may involve the implementation of multiple mitigation options, used together to completely offset these environmental impacts. As an example, Collier County may get some mitigation credit for minimal on -site preservation, construction of the hydrologic bypass system, and potentially the enhancement and preservation of other off -site Collier County parcels. If these mitigation options provided some mitigation `lift," but not enough to completely offset the project impacts, then purchase of mitigation credits could be utilized to make up the difference. While the use of multiple mitigation measures is a likely scenario for Collier County, providing cost estimates with the amount of known information at this time was not possible. So to provide the County with a tangible mitigation cost estimate, multiple cost estimates were derived from the exclusive use of mitigation banking. The most efficient 51Orl cluster0l 1projects\Projects06106- 1087.000 North- south-Corridor-study-East-of CR_ 9511Environmental \rcports\Lcwis ,parcel_DueDiligence.doc Page 11 of 12 Packet Page -233- 7/8/2014 11.C. and least expensive mitigation banking alternative was to purchase wetland credits and additional PHUs from Panther Island Mitigation Bank, at a total project mitigation cost of $9,420,745.00. This provides the County with a conservative estimate of potential mitigation costs, while acknowledging that there may be additional mitigation alternatives that the County could implement, during the planning and permitting phase of this project, which could potentially reduce mitigation costs. Thank you for the opportunity to provide these environmental analyses for the County's potential property acquisition of the Lewis parcel. We look forward to continuing our work with the County on this project, and welcome any questions or comments you may have, regarding this report. Sincerely, Dyer, Riddle, Mills & Precourt, Inc. j Dougla A. Skurski, MS, PWS Environmental Scientist III Ecological & Environmental Services CC: Jason Hunt, Passerella & Assoc. 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W�a �0 v) U) Cf) T F3 c� O w w x O 0 M �1 W a CG O U � o� Aa 33 L4 w ca Legend; 4F WALLY LEWIS PARCEL CITIES PA14THER.F000S AREA PANTHER ZONES PRIMARY ZONE 0 SECONDARY ZONE Q DISPERSAL Z014E PRIMARY DISPERSAL / EXPANSION AREA DISPERSAL PATHWAYS (THATCHER 2006 ti 0 5 10 Mites NOTES COUNTY INFORMATION AND ROADWAY NETWORKS WERE ACQUIRED FROM THE FLORIDA GEOGRAPHIC DATA LIBRARY WEBSITE. PANTHER FOCUS AREA WAS ACQUIRED FROM THE USFWS FTP SITE MARCH 2007 PRIMARY AND SECONDARY ZONES WERE ACQUIRED FROM (KAUTZ ET 4L. 2006) _ D.B. AGURE 6. PANTHER ZONES WITH PANTHER FOCUS AREA WALLY LEWIS PARCEL J'H' Packet Page -240- 7/8/2014 11. 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Memorandum SUBJECT: Preliminary Environmental Analysis of Lewis Parcel (# 00298480005) Purpose As requested, URS Corporation (URS) is pleased to provide Collier County with a preliminary environmental analysis of the subject Lewis Parcel located immediately to the west of the Collier County Landfill in Naples. The scope of work was to conduct a preliminary environmental review of the work done by others, and present our findings to key environmental regulatory agencies to identify if there are potential fatal flaws for expansion of the existing landfill on the said parcel. It is our understanding that this is not part of an environmental impact study or due diligence requirements which will be conducted at a later stage. Background Collier County is considering acquisition of the Lewis parcel for potential expansion of the Collier County landfill. The Wallace L. Lewis, Jr. parcel (parcel #00298480005) is a rectangular parcel, totaling 305.56± acres in size, surrounded by Interstate 75 to the south, Collier County landfill to the east, Collier County -owned undeveloped lands to the north, and the White Lake Industrial Park and City Gate DRI to the west. This parcel is located in Section 36, Township 49 South, Range 26 East, in Collier County, Florida, and is shown in Figure 1. Review of Existing Reports/Data and Site Visit In order to do the environmental analysis of the Lewis Parcel, URS conducted a review of two (2) key environmental reports that were provided to URS by Collier County: 1. Environmental Due Diligence Letter Report, dated September 2, 2008, prepared for the Collier County Transportation Department by Dyers, Riddle, Mills & Precourt, Inc. 2. Project Information Report, dated April 2008, prepared by Planning Development Incorporated. Packet Page -242- 7/8/2014 11. C. Page 2 of 3 It should be noted that these reports were not prepared for the purpose of construction of a landfill. However, the environmental assessments provided in these reports were found to be useful for the limited scope of this review. In addition to reviewing these reports, URS also conducted a perfunctory visit of the Lewis Parcel accompanied by the property owner's representatives. It should be noted that field verification of previous environmental assessments were outside the scope of this project. Meetina with Regulatory Agencies In order to present the results of previous environmental assessments to key regulatory agencies responsible for permitting the future development of the property for landfill expansion, URS arranged a joint meeting with the regional offices of the Florida Department of Environmental Protection (FDEP) and the United States Army Corps of Engineer (COE). After consultations with Collier County, a meeting with the South Florida Water Management District (SFWMD) was not believed to be necessary at this time. It should be noted that the Planning Development Incorporated report includes a wetland jurisdictional determination letter from SFWMD on September 11, 2006. This meeting with FDEP and the COE was also attended by representatives of Collier County. Findings and Recommendations URS has identified the following environmental impacts if the Lewis parcel is fully developed based on previous environmental assessments: 1. Wetlands Impact About a third of the + 306 acre Lewis property is believed to be wetlands. The exact acreage of wetlands impacted will have to be verified prior to permitting but is believe to cause a functional loss of approximately 45 acres based on UMAM scores developed by previous consultants. 2. Listed Species Impact Reviews of previous environmental assessments indicate that development of the Lewis parcel will impact many listed species such as the Florida Panther, wood storks, the Black Bear, the Big Cypress Fox Squirrels, and the Red Cockaded Woodpecker. Based on URS' review of the two (2) reports referenced in this memo and our meeting with regulatory agencies, there is a general consensus that the Lewis parcel adjacent to an existing landfill is the most logical place to expand. However, the following points must be taken into consideration before a final decision is made: • Developing the Lewis parcel is going to cause a major impact on wetlands and listed wildlife species. This will be very sensitive issue not only with State, local and federal regulators but also with environmental organizations. Packet Page -243- 7/8/2014 11.C. Page 3 of 3 • State and federal regulators have advised the County that they will be looking for detailed "Alternatives Report" for consideration of the Lewis Parcel for landfill expansion. They will carefully weigh all the alternatives and go through the public notice and comments period before a final decision is made. This may cause significant delays in the permitting process. • Due to impacts on wetlands and listed wildlife species, regulators are expected to require extensive mitigation for this project. Estimating the mitigation costs was outside our Scope of Work but previous assessors have estimated this cost to be anywhere from $9 million to $13 million. As part of the "alternatives report", the County should carefully weigh the cost and benefits of expanding the landfill in the westerly direction on the Lewis property. • For the construction of the landfill, FDEP and the COE are expected to be the two (2) lead agencies for environmental permitting. We have been advised that FDEP's solid permit for the westerly expansion of the landfill on the Lewis parcel could be included as an expansion of the existing permit provided it meets all the technical baseline requirements of Chapter 62 -701, FAC. FDEP has also advised us the Solid Waste permitting process will have to go through a public notice since the footprint of the existing permit does not cover the Lewis parcel. This requirement may also delay the permitting process. • The COE will heavily rely on the Fish and Wildlife Service for their review and comments considering the nature of the impacts on wildlife. • If any portions of the Lewis parcel is carved out as a separate parcel and developed for non - landfill uses, SFWMD will be lead agency for permitting those parcels, and not FDEP, in accordance with the Memorandum of Understanding between the two (2) agencies. A permit from the COE will be required regardless. In summary, based on our review of previous reports and meeting with regulatory agencies, URS believes there are many environmental issues related to construction of a landfill on the Lewis property, and before a final decision is made all alternatives should be carefully considered. These alternatives include vertical and lateral expansion on the existing footprint of the landfill, alternate sites with lesser impacts on wetlands and wildlife, and alternatives to landfilling municipal solid waste. If there are any questions about this report, please let us know. cc: Sue Zimmerman, Collier County File Packet Page -244- FIGURE I — Location of Lewis Parcel (Source: Project Information Report, dated April 2008, prepared by Planning Development Incorporated) MAPLEGENn Street N- ♦enre 2w is ma f'—'1 eutla!!tq feelertne �R: �€':1 Celller Ctwnty Lewis Parcel 7/8/2014 11.C. Packet Page -245- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ADDENDUM C - COMPARABLE DATA ADDENDUM C COMPARABLE DATA LIM Packet Page -246- 7/8/2014 11.C. Land Sale No. 1 Property Identification Record ID 156 Property Type Commercial, Business park Property Name Meridian Center Address Treeline Avenue, Fort Myers, Lee County, Florida 33913 Location E/S of Treeline Avenue between Terminal Access Rd and Alico Road Tax ID Multiple folios Latitude N1 26 030'8.72 "N Longitude N1 81 046'59.23 "W MSA Fort Myers -Cape Coral Market Type Suburban Sale Data Grantor BankAmerica Realty Finance, Inc. aka BancAmerica Realty Finance Grantee Meridian Airport Park, LLC Sale Date January 06, 2011 Deed Book/Page 201100005436 Property Rights Fee simple Packet Page -247- 7/8/2014 11.C. Land Sale Flo. 1 (Cont.) Financing Cash sale Verification Gary Tasman w/ Commercial Property of SW Florida; 239 -489- 3600, March 24, 2011; Other sources: Costar, Loopnet and public records, Confirmed by KC Lowry Sale Price $4,153,840 Cash Equivalent $4,153,840 Upward Adjustment $1,846,200 Mitigation land Adjusted Price $6,000,040 Land Data Zoning IPD, Airport Commercial District Topography Level at road grade Utilities Installed to lots Shape Irregular Land Size Information Gross Land Size 90.600 Acres or 3,946,536 SF Useable Land Size 50.000 Acres or 2,178,000 SF, 55.56% Front Footage 3324 ft Treeline Avenue Indicators Sale Price /Gross Acre $45,848 Actual or $66,226 Adjusted Sale Price /Gross SF $1.05 Actual or $1.52 Adjusted Sale Price /Useable Acre $83,077 Actual or $120,001 Adjusted Sale Price /Useable SF $1.91 Actual or $2.75 Adjusted Remarks Bank owned sale of business park near Southwest Florida International Airport. Originally listed at $10,900,000 ($2.78 psf gross and $5.00 psf net). The property included 31 acres developed with 18 commercial lots and 10 industrial lots (19 acres) for a total of 50 developable acres. Sale additionally included mitigation lands in Hendry County which were purchased along with the subject parcel on a separate deed for $1,846,200. Development zoned with three options: 1. 300K sf of office, 200K sf of commercial (industrial) and 115 hotel rooms. 2. 300K sf of office and 295k sf of commercial (industrial). 3. 500K sf of industrial use with reduction in other land uses per conversion table. Mr. Tasman asserted that the property had multiple offers. Packet Page -248- 7/8/2014 11. C. Land Sale No. 2 Property Identification Record ID 420 Property Type Commercial, Acreage Property Name Fucillo Automotive Port Charlotte Address 202 Tainiami Trail, Port Charlotte, Charlotte County, Florida 33953 Location NEC of Tamiami Trail (US 41) and Cranberry Blvd. Tax ID 402103126001 Latitude Nl 270 1'50.77 "N Longitude N1 82 °11'53.80 "W MSA Punta Gorda -Port Charlotte Market Type Suburban Sale Data Grantor Grantee Sale Date Deed Book/Page Property Rights Conditions of Sale Financing Eagle FL 1 SPE, LLC WBF Florida Properties III, LLC December 18, 2012 Instr. 2146699 Fee simple Arm's length, REO sale Cash sale Packet Page -249- 7/8/2014 11.C. Land Sale No. 2 (Cont.) Verification Matt Stepan w/ Premier Commercial Inc. ; (239) 992 -1200, January 16, 2014; Other sources: Loopnet, Costar and public records, Confirmed by KC Lowry Sale Price $3,100,000 Cash Equivalent $3,100,000 Adjusted Price $3,100,000 Land Data Zoning Commercial General (CG), Commercial Utilities All public available Shape Irregular Landscaping Scrub brush and treed Flood Info Zone X per FIRM 12015C 0040F Land Size Information Gross Land Size 76.919 Acres or 3,350,592 SF Front Footage 6239 ft Total Frontage: 3191 ft Tamiami Trail / US 41;2796 ft Hillsborough Blvd;252 ft Cranberry Blvd. Indicators Sale Price /Gross Acre $40,302 Sale Price /Gross SF $0.93 Sale Price /Front Foot $497 Remarks Property was listed at $3,900,000. Property has a future land use as a Commercial Center and Commercial Corridor. Property is located just east of the Sarasota County line. Per Mr. Stepan, Florida DOT is interested in 10 acres for a burrow pit for the expansion of US 41. Approximately, 50% of the remaining site will be used by the buyer to develop for a new KIA dealership. The other acreage will be held for future commercial development. Packet Page -250- 7/8/2014 11.C. Land Sale No. 3 Property Identification Record ID 456 Property Name FedEx Distribution Site Address NW 35th Avenue, Ocala, Marion County, Florida 34475 Location Ocala -Marion County Commerce Park Tax ID 21465- 000 -00 Latitude N1 29 012'55.68 "N Longitude N1 82 010'52.00 "W MSA Ocala Market Type Suburban Sale Data Grantor Ocala 489, LLC Grantee FedEx Group Package System, Inc Sale Date July 22, 2013 Deed Book /Page 5904 -1814 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash Sale History None in previous 3 years Verification Joe Nisbett; Nisbett Realty Inc; 407 - 628 -3880, May 02, 2014; Other sources: Ocala StarBanner, Confirmed by Rachel Zucchi Sale Price $7,800,000 Packet Page -251- 7/8/2014 11.C. Land Sale No. 3 (Cont.) Cash Equivalent $7,800,000 Adjusted Price $7,800,000 Land Data Zoning M -1 (Light industrial), B -2 (commercial) Topography Level, Cleared fallow farm land Utilities All Public Shape Rectangular MOL Depth 3124 Land Size Information Gross Land Size 150.010 Acres or 6,534,436 SF Front Footage 3914 ft Total Frontage: 3914 ft NW 35th Avenue Indicators Sale Price /Gross Acre $51,997 Sale Price /Gross SF $1.19 Sale Price /Front Foot $1,993 Remarks Ocala and Marion County agreed to provide incentives totaling an estimated $3.47 million to entice FedEx to build in Ocala. FedEx is planning to spend approximately $75M to build a 383,161 SF building and employ 165 full -time equivalent jobs. Total capital investment including machinery and equipment is $122M. The company has to complete construction by October 31, 2016. The city agreed to extend NW 35th Street from US 441 and 27th Ave into the site and provide water, sewer and electric service. The property is located within a 489 acre Ocala/Marion County Commerce Park. The remaining 339 acres are undeveloped. The park is zoned Land Use Blending Overlay Planned Unit Development (LUBO PUD), a new zoning designation and is approved for 32.82 acres of retail services, 323.91 acres of light industrial, and 132.15 acres of medium industrial. Grading of the site commenced in January 2014. The seller, Bill Kearns, reported he didn't negotiate with FedEx and thought he might have been able to sell the property for more under different circumstances. Packet Page -252- 7/8/2014 11.C. Land Sale No. 4 Prouertv Identification Record ID 457 Property Type Commercial, Acreage Property Name NNP- Bexley LLC Address 3373 Abernethy Drive, Land O Lakes, Pasco County, Florida 34638 Location NEQ SR 54 and Suncoast Parkway Tax ID 19- 26 -18- 0000 - 00500 -0000 + Latitude N1 28 012'2.55 "N Longitude N1 82 °32'22.91 "W MSA Pasco Market Type Suburban Packet Page -253- 7/8/2014 11. C. Land Sale No. 4 (Cont.) Sale Data Grantor Ashley Glen Land Trust and REDUS Florida Land, LLC Grantee NNP- Bexley, LLC Sale Date July 16, 2013 Deed Book/Page 8909 -2966 and 2904 -3463 Property Rights Fee Simple Marketing Time 1.4 years Conditions of Sale REO and Arm's Length Financing Private Equity Verification Ryan Sampson; Eshenbaugh Land Company; 813- 287 -8787, May 05, 2014; Bruce Errhardt; CW, May 05, 2014; Other sources: Listing, Confirmed by Rachel Zucchi Sale Price $8,700,000 Cash Equivalent $8,700,000 Adjusted Price $8,700,000 Land Data Zoning MPUD, C1 and C2, Commercial Topography Level, partially cleared Utilities All Public Shape L Shaped Land Size Information $29,209 Gross Land Size 297.850 Acres or 12,974,346 SF Useable Land Size 227.000 Acres or 9,888,120 SF , 76.21% Wetlands Land Size 70.800 Acres or 3,084,048 SF, 23.77% Indicators Sale Price /Gross Acre $29,209 Sale Price /Gross SF $0.67 Sale Price /Useable Acre $38,326 Sale Price /Useable SF $0.88 Remarks The northern 260 acres was purchased from Ashley Glen Land Trust for $6.1 million (according to the broker, the recorded purchase price was $6 million). It is entitled for 1.8 million SF of office space, 440,000 SF of retail, and 780 townhomes. The southern 37 acres was purchased from Wells Fargo Bank for $2.6 million. The purchaser owns 1,000 acres to the north which they intend to develop as a residential subdivision. The buyer wanted to control the use on the subject property, compatible with the proposed residential development. Additionally, a $6 million entrance road will be developed and will service both properties at the buyer's cost. Area is located approximately 25 minutes from downtown Tampa and is a growing area. Future land use designations include Retail /Office /Residential (ROR) approximately 256 acres, Conservation Lands (CON) approximately 29 acres, and Residential (RES -3) approximately 10 acres. Property ID Nos: 19- 26 -18- 0000 - 00500 -0000; 30- 26 -18- 0000 - 00200 -OOCO; 30- 26 -18- 0000 - 00200 -OOEO; 30- 26 -18- 0000 - 00200 -0030; 30- 26 -18- 0000 - 00200 -0010; 30- 26 -18- 0000 - 00200 -OOWO; 30 -26- 18- 0000 - 00200 -00W 1. Packet Page -254- 7/8/2014 11.C. Land Sale No. 5 Property Identification Record ID 458 Property Type Commercial, Acreage Property Name Willow Creek Centroplex Address 7880 Grissom Pkwy, Titusville, Brevard County, Florida 32780 Location Across from Space Coast Regional Airport Tax ID 23- 35- 10 -01- 00003.0- 0000.00+ Latitude N1 28 029'53.54 "N Longitude NI 80 048'35.83 "W Market Type Suburban Sale Data Grantor Atlas FL I SPE, LLC Grantee Willow Creek Centroplex LLC and Sale Date April 15, 2013 Deed Book/Page 6855/245 and Property Rights Fee Simple Marketing Time 8 -9 months Conditions of Sale Arm's Length Financing Private Equity Verification Michael Gaich; The Michael Gaich Company; 321 - 453 -4200, May 05, 2014; Confirmed by Rachel Zucchi Sale Price $1,250,000 Packet Page -255- 7/8/2014 11.C. Land Sale No. 5 (Cont.) Cash Equivalent $1,250,000 Adjusted Price $1,250,000 Land Data Zoning CC and RC, Commercial Topography Treed, some infrastructure Utilities All Public Shape Rectangular MOL Land Size Information Gross Land Size 124.800 Acres or 5,436,288 SF Useable Land Size 70.000 Acres or 3,049,200 SF, 56.09% Wetlands Land Size 54.800 Acres or 2,387,088 SF , 43.91 % Front Footage 2900 ft Total Frontage: 2900 ft Grissom Pkwy Indicators Sale Price /Gross Acre $10,016 Sale Price /Gross SF $0.23 Sale Price /Useable Acre $17,857 Sale Price /Useable SF $0.41 Sale Price /Front Foot $431 Remarks Property was listed for $1,625,000. Willow Creek is a planned residential /commercial development located on Grissom Pkwy. Subject is commercial portion with 2,900 feet of frontage along Grissom Pkwy. Development has some infrastructure. Water and sewer installed, but not completed or inspected. FLU Designation Commercial High Intensity (113 acres) and conservation (11.6 acres). Located across from Space Coast Regional Airport. ERP Permit application indicates proposed construction of Phase I including preservation of approximately 41.36 acres of wetlands and 179,350 SF warehouse /office building along with parking, utilities, storm water management system, and other related appurtenances. Packet Page -256- 7/8/2014 11.C. WHITE LAKE BOULEVARD ACREAGE ADDENDUM D - LETTER OF AUTHORIZATION ADDENDUM D LETTER OF AUTHORIZATION Packet Page -257- 7/8/2014 11.C. Co er Couv� ty Real Property Management 4/9/2014 Rachel M Zucchi RKL Appraisal and Consulting, PLC 4500 Executive Drive Ste 300 Naples, FL 34119 RE: NOTICE -TO- PROCEED FOR 305 acres next to landfill Purchase Order No. 4500150255 Collier County Project No. Landfill Expansion Dear Ms. Rachel Zucchi: This letter serves as Collier County's official NOTICE TO PROCEED (NTP) to your Company to commence with the above referenced project. This NTP is issued pursuant to Contract # (N /A) or Purchase Order #4500150255. The purchase order number is shown above and a copy of the P.O. is enclosed. This NTP is limited to the scope of work for: Landfill Expansion Project for the lump sum price of $1,800 OR Time and Materials not to exceed $1,800. Please include the purchase order number, contract number and project number on each invoice to facilitate the payment process. Commencement date for the services associated herewith shall be considered to be 4/09/2014. The substantial / draft completion date shall be considered to be 5/01/2014. Final completion of all work shall be considered to be 5/08/2014 with (3) copies of the appraisal report. If you have any questions, please contact me. Sincerely, Roosevelt Leonard Real Estate Appraiser Packet Page -258- 7/8/2014 11.C. APPRAISAL REPwtT REAL ESTATE APPRAISAL Of 305 Acres White Lake Blvd, Naples, Collier County, FL, 34117 As of April 15, 2014 Prepared For. Mr. Roosevelt Leonard Collier County Real Property Management 3335 Tainiami Trail E., Ste. 101 Naples, FL 34112 Client File: 4500150246 Prepared by Thomas A. Tippett, MAI File Name: 14 018 Packet Page -259- 7/8/2014 11.C. Packet Page -260- 7/8/2014 1I.C. 1061 Collier Center Way #3 239- 405 -8551 x] Naples Fax: 239 - 405 -8547 FL, 34110 tom C@1 tatippett.com May 2, 2014 Mr. Roosevelt Leonard Collier County Real Property Management 3335 Tamiami Trail E., Ste. 101 Naples, FL 34112 Re: Appraisal Report, Real Estate Appraisal 305 Acres White Lake Blvd, Naples, Collier County, FL, 34117 File Name: 14 018 Dear Mr. Leonard: At your request, I have prepared an appraisal for the above referenced property, which may be briefly described as follows: The property appraised is a 305.6 acre vacant site with an Industrial Comprehensive Land Use designation located adjacent to the Collier County landfill. Please reference page I 1 of this report for important information regarding the scope of research and analysis for this appraisal, including property identification, inspection, highest and best use analysis, and valuation methodology. The appraisal is intended to conform with the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. I confirm that I am competent to perform this appraisal and adhere to the competency provision within USPAP. I certify that I have no present or contemplated future interest in the property beyond this estimate of value. Your attention is directed to the Limiting Conditions and Assumptions section of this report (page 6). Acceptance of this report . constitutes an agreement with these conditions and assumptions Packet Page -261- 7/8/2014 11.C. Packet Page -262- 7/8/2014 11.C. Mr. Leonard Collier County Real Property Management May 2, 2014 Page 2 In particular, I note the following: Hypothetical Conditions: • There are no hypothetical conditions for this appraisal. Extraordinary Assumptions: • None. Based on the appraisal described in the accompanying report, subject to the Limiting Conditions and Assumptions, Extraordinary Assumptions and Hypothetical Conditions (if any), I have made the following value conclusion: Current As Is Market Value: The As Is market value of the Fee Simple estate of the property, as of April 15, 2014, is $5,200,000 Five Million Two Hundred Thousand Dollars The market exposure time' preceding April 15, 2014 would have been 12 nnonths and the estimated marketing period'as of April 15, 2014 is 12 months. Current As Is Liquidation Value; The As Is liquidation value of the Fee Simple estate of the property, as of April 15, 2014, is $3,900,000 Three Million Nine Hundred Thousand Dollars The market exposure time preceding April 15, 2014 would have been 6 months and the estimated marketing period as of April 15, 2014 is 6 months. If you have any questions or comments, please contact tine undersigned. Thank you for the opportunity to be of service. Respectfully submitted, T.A. Tippett, Inc. Thomas A. Tippett, MAI State - certified general real estate appraiser RZ #1669 tom @tatippett.com ' Exposure Time: see definition on page 9. 2 Marketing Time: see definition on page 9. Packet Page -263- 7/8/2014 11.C. Packet Page -264- 7/8/2014 11.C. Table of Contents Summaryof Important Facts and Conclusions .................................... ............................... 1 Definitions............................................................................................ ............................... 3 Limiting Conditions and Assumptions ................................................ ............................... 6 Scopeof Work ................................................................................... ............................... 11 MarketArea Analysis ........................................................................ ............................... 13 PropertyDescription .......................................................................... ............................... 19 AerialPhotograph .......................................................................... ............................... 21 SubjectPhotographs ....................................................................... ............................... 23 CollierCounty Landfill ...................................................................... ............................... 25 Assessmentand Taxes ....................................................................... ............................... 26 Zoning................................................................................................ ............................... 27 Comprehensive Land Use Plan .......................................................... ............................... 28 Highestand Best Use ......................................................................... ............................... 29 ValuationMethodology ..................................................................... ............................... 31 AnalysesAppl ied ........................................................................... ............................... 31 SalesComparison Approach .............................................................. ............................... 32 LandComparables ......................................................................... ............................... 33 AnalysisGrid ................................................................................. ............................... 38 Comparable Land Sale Adjustments .............................................. ............................... 40 Sales Comparison Approach Conclusion — Land Valuation .......... ............................... 42 LiquidationValue .............................................................................. ............................... 43 FinalReconciliation ........................................................................... ............................... 45 ValueIndications ........................................................................... ............................... 45 ValueConclusion ........................................................................... ............................... 46 CertificationStatement ...................................................................... ............................... 47 Addenda............................................................................................. ............................... 49 Packet Page -265- 7/8/2014 11.C. Packet Page -266- Summary of Important Facts and Conclusions GENERAL Subject: 305 Acres White Lake Blvd, Naples, Collier County, FL, 34117 Owner Legal Description: Date of Report: Client: Intended Use: Intended User: Assessment: 7/8/2014 11.C. 305 Acres The property appraised is a 305.6 acre vacant site with an Industrial Comprehensive Land Use designation located adjacent to the Collier County landfill. Asset Recovery XV1II LLC Lengthy May 2, 2014 Collier County Real Property Management The intended use is for assisting the client with internal analysis of the property appraised.. The client. Real Estate Assessment and Taxes Tax ID Laud Improvements Total County Taxes Rate 00298480005 Sale History: Current Listing /Contract(s): $7,538,750 $0 $7,538,750 $11.93 $89,958 The subject sold for $300on September 25, 2012. This change in ownership is the result of a foreclosure by the Grantee. The subject is not currently listed for sale, or under contract, The subject is under contract for sale for $5,250,000. Details to the pending sale were not provided to the appraiser. r Page 1 Packet Page -267- 1 7/8/2014 11.C. 305 Acres Land: Land Sununam, ParceIID Gross Land Gross Land Usable Land Usable Land Topography Shape Area Area (Sq Ft) Area (Acres) Area (Sq Ft) (Acres) 298480005 305.56 13,310,194 203.96 8,884,498 Level, treed Roughly rectanguLar See area definitions, page 4. Zoning: Comprehensive Laud Use Designation A - Rural Agricultural District by Collier County Industrial by Collier County Highest and Best Use Supporting uses of the County landfill of the Site: Type of Value: Market Value VALUE INDICATION'S Cost Approach: Sales Comparison Approach: Income Approach: Not Applicable $5,200,000 Not Applicable Not Applicable $3,900,000 Not Applicable Reconciled Value: As Is Market Value As Is Liquidation Value Value Conclusion(s) $5,200,000 $3,900,000 Effective Date(s) April 15, 2014 April 15, 2014 Property Rights Fee Simple Fee Simple Hypothetical Conditions: There are no hypothetical conditions for this appraisal. Extraordinary Assumptions: • None. Page 2 Packet Page -268- 7/8/2014 11.C. 305 Acres Definitions Market Value Per Title Xl of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. (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.) Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently 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 own 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 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. A Fee Simple estate is defined3 as: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent do►nain, police power, and escheat. A Leased Fee interest is defined as: A freehold (ownership interest) where the possessory interest has been granted to another party by the creation of a contractual landlord- tenant relationship (i.e., a lease). Marketing Time is defined as: An opinion of the annount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of the appraisal. 191 Page 3 Packet Page -269- 7/8/2014 11. C. 305 Acres Marketing time differs from exposure time, which is always presumed to precede the effective date of the appraisal. Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. G, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions" address the determination of reasonable exposure and marketing time. Exposure Time is defined' as: 1. The time a property remains on the market. 2. The estimated length of time 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; a retrospective estimate based on an analysis of past events assuming a competitive and open market. See Marketing Time, above. Gross Building Area (GBA): Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above -grade area. This includes mezzanines and basements if and when typically included in the region,3 Rentable Area (RA): For office buildings, the tenant's pro rata portion of the entire office floor, excluding elements of the building that penetrate through the floor to the areas below. The rentable area of a floor is computed by measuring the inside finished surface of the dominant portion of the permanent building walls, excluding any major permanent penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice.3 Gross Leasable Area (GLA): Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces.3 As Is Mai-ket Value The estimate of the market value of the real property in its current physical condition, use and zoning as of tine appraisal date.3 Stabilized Value Stabilized value is the prospective value of a property after construction has been completed and market occupancy and cash flow have been achieved. 3 3 Narrativel.com. Thomas W. Annstrong, MAI F11 Page 4 Packet Page -270- 7/8/2014 11.C. 345 Acres ��siipicte v�al[iS The prospective value of a property after all construction has been completed, This value reflects all expenditures for lease -up and occupancy that may be expected to have occurred at that point in tune, which may or may not put the property at stabilized value. TV Page 5 Packet Page -271- 7/8/2014 11.C. 305 Acres Limiting Conditions and Assumptions This appraisal is based on the following assumptions, except as otherwise noted in the report. I . The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. S. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. Tile information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal is subject to the following limiting conditions, except as otherwise noted in the report. I . An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. S. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. Page r g IT Packet Page -272- 7/8/2014 11.C. 305 Acres ". No opinion is expressed as to the value of substerface oil, gas or mineral rights, if any and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and environmental matters. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the person signing the report. 1 t . information, estimates and opinions contained in the report, obtained from third -party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 14. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. I S. The current purchasing power of the dollar is the basis for the value stated in our appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The value found herein is subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. r19 Page 7 Packet Page -273- 7/8/2014 11.C. 305 Acres 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from out- estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of any property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. In as much as compliance matches each owner's financial ability with the cost to cure the non - conforming physical characteristics of a property, we cannot comment on compliance to ADA. Given that compliance can change with each owner's financial ability to cure non- accessibility, the value of the subject does not consider possible non - compliance. A specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of the Client, its subsidiaries and /or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to its indicating the presence or absence of hazardous materials oil the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of ally environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property and the person signing the report shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The person signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and /or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non - existent or minimal. 22. T.A. Tippett, Inc. is not a building or environmental inspector. T.A. Tippett, Inc. does not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. The appraisal report and value conclusion for an appraisal assumes the satisfactory completion of construction, repairs or alterations in a workmanlike manner. Page 8 I T Packet Page -274- 7/8/2014 11.C. 305 Acres 24. it is expressly acknowledged that in any action Which may be brought against T.A. Tippett, Inc. or their respective officers, owners, managers, directors, agents, subcontractors or employees, arising out of, relating to, or in any way pertaining to this engagement, the appraisal reports, or any estimates or information contained therein, the T.A. Tippett, Inc. shall not be responsible or liable for an incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with gross negligence. It is further acknowledged that the collective liability of the T.A. Tippett, Inc. in any such action shall not exceed the fees paid for the preparation of the appraisal report unless the appraisal was fraudulent or prepared with gross negligence. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. T.A. Tippett, Inc., an independently owned and operated company, has prepared the appraisal for the specific purpose stated elsewhere in the report. The intended use of the appraisal is stated in the General Information section of the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report (or any pant thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer -seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable, and the undersigned are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, Ave do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. T 41 Page 9 Packet Page -275- 7/8/2014 11.C. 305 Acres 27. All prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. Americans with Disabilities Act (ADA) of 1990 A civil rights act passed by Congress guaranteeing individuals with disabilities equal opportunity in public accommodations, employment, transportation, government services, and telecommunications. Statutory deadlines become effective on various dates between 1990 and 1997. T.A. Tippett, Inc. has not made a determination regarding the subject's ADA compliance or non- compliance. Non - compliance could have a negative impact on value: however this has not been considered or analyzed in this appraisal. Page 10 Packet Page -276- 7/8/2014 11.C. 305 Acres Scope of Work According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser's responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user. Therefore, the appraiser must identify and consider: • the client and intended users; • the intended use of the report; • the type and definition of value; • the effective date of value; • assigmnent conditions; • typical client expectations; and • typical appraisal work by peers for similar assignments. This appraisal is prepared for Mr. Roosevelt Leonard, Real Estate Appraiser Collier County Real Property Management. The problem to be solved is to estimate the as is market value and liquidation value of the subject property. The intended use is for assisting the client with internal analysis of the property appraised.. This appraisal is intended for the use of client. SCOPE Or WORK Report Type: This is a Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2 -2 (a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. Property Identification: The subject has been identified by the legal description and the assessors' parcel number. Inspection: A complete exterior inspection of the subject property has been made, and photographs taken. Market Area and Analysis of A complete analysis of market conditions has been Market Conditions: made. The appraiser maintains and has access to comprehensive databases for this market area and has reviewed the market for sales and listings relevant to this analysis. Highest and Best Use Analysis: A complete as vacant and as improved highest and best use analysis for the subject has been made. Physically possible, legally permissible and financially feasible uses were considered, and the maximally productive use was concluded. rll Page 11 Packet Page -277- 7/8/2014 11.C. 305 Acres Type of Value: Market Value, Liquidation Value Valuation Analyses Cost Approach: A cost approach was not applied as this approach is not applicable. The property is vacant land with no improvements. Sales Comparison Approach: A sales approach was applied as there is adequate data to develop a value estimate and this approach reflects market behavior for this property type. Income Approach: An income approach was not applied as this approach is not applicable. The property is vacant land with no improvements. Hypothetical Conditions: • There are no hypothetical conditions for this appraisal. Extraordinary Assumptions: • None. r ._, Page 12 Packet Page -278- 7/8/2014 11. C. 305 Acres Market Area Analysis Boundaries The property is located in the Golden Gate Planning Community, which is in the southeast portion of coastal Collier County, FL. This market area is generally delineated as follows: North Golden Gate Pkwy South Tamiami Trail (US 41) East I mile east of CR 951 (Collier Blvd) West Airport Rd A ►nap highlighting these boundaries and identifying the location of the property follows this section. Access and Linkages Primary access to the market area is provided by a two major arterials, US41 (Tamiami Trail) and CR -951 (Collier Blvd). US -41 extends from Tampa in the north to the City of Naples, west of the subject, then turns east and connects with Miami and the east coast of Florida. US -41 makes tip the southern boundary of the market area, and runs in a southeast /northwest direction. US -41 is primarily a six -lane divided highway, although portions of this arterial do narrow to four divided lanes. Land uses fronting US41 are a mix of small and large scale retail, office, as well as numerous large planted residential developments. Travel time from Tamiami Trail to the subject is about ten minutes. Overall, vehicular access is good. I -75 is a four to six -lane highway that has an exit at CR951. Interstate 75 is a north/south highway (even though it runs east / west from Naples to Miami) with traffic heading to and from Miami, Fort Myers, Sarasota and Tampa Bay area. This is the dominant traffic generator for the subject submarket. CR -951 extends from lmmokalee Rd in the north to Marco Island in the south. Direct access to 1 -75 is granted to both north and south bound lanes, less than V4 mile southeast of the subject. CR -951 is a primarily a four -lane divided highway, and then narrows to two non- divided lanes upon the entrance to Marco Island. Land uses fronting CR -951 are largely residential, with numerous large planned residential communities. Commercial areas are generally concentrated at major intersections, such as CR -951 and Rattlesnake Hammock Rd, and CR -951 and US -41. Travel time from the major arterial to the subject is approximately two minutes, as the subject is located on east of CR -951 and north of Beck Boulevard (Davis Boulevard), in the northeast corner of the market area. r1 � +l11 Page 13 Packet Page -279- 7/8/2014 11.C. 305 Acres Public transportation is provided by Collier Area Transit (CAT) and multiple scheduled routes provide service to the market area. The local market perceives public transportation as average compared to other market areas in the region. However, the primary mode of transportation in this area is the automobile. Demand Generators Primary employment centers consist of a local branch of the Edison Community College, which is located to the south of the subject property on CR951, and the various retail centers located at the intersections of Rattlesnake Hammock Rd and CR951, Tamiami Trl and CR951, and Rattlesnake Hammock Rd and Tamiami Trl. The shopping centers located at Rattlesnake Hammock Rd and CR951, and Tamiami Trl and CR951 are Publix anchored centers with supporting commercial services. The nearest hospitals include Physicians Regional Medical Center on Collier Boulevard (3.22 miles from the subject property) and Naples Community Hospital on Davis Boulevard (3.42 miles from the subject property). The intersection located at Tamiami Trl and CR951 is the location of two shopping centers, one being Publix anchored and the other being Winn -Dixie anchored, also containing a K -Mart, convenient stores, bank branches, and fast food establishments. These are located within 7 miles of the property. Nearby residential coin munitics such as Cedar Hammock Golf and Country Club across CR951 and to the south from the subject, and Forest Glen Golf and Country Club adjoining the subject to the south, are less than a mile from the property, and provide a reliable source of middle management personnel, as well as executives. Market Area Services and Amenities The nearest commercial area with restaurants, convenience stores, and hotels is located at Davis Boulevard and 951. The nearest hotels are the Holiday Inn Express, Comfort Inn, Super 8 Motel, and the LaQuinta Inn. Nearby restaurants include Cracker Barrel, Waffle House, McDonald's, Taco Bell, and KFC. Another nearby commercial area with restaurants, convenience stores and support services is Naples Lakes, located at the intersection of Rattlesnake Hammock Rd and CR951. Naples Lakes is a Publix anchored shopping center with associated commercial supporting services, about ten minutes driving time south from the property. The closest lodging facilities are located less than a minute from the property and include a hotel /motel at the northeast and northwest quadrants of CR951 and Davis Blvd. The Golden Gate Fire and Rescue Station #72 are located on the south side of Davis Blvd, just east of CR951. Page 14 ��� Packet Page -280- 7/8/2014 11.C. 305 Acres Land Use In the immediate vicinity of the subject, land uses include a mix of commercial and residential. Other land use characteristics are summarized below: Predominant Age of Improvements New to 20 years Predominant Quality and Condition Approximate Percent Developed Life Cycle Stage Infrastructure/Planning Predominant Location of Undeveloped Land Prevailing Direction of Growth Subject's Immediate Surrounding Land Use North Vacant land South 1 -75 East County Landfill West Industrial park Development Activity and Trends Average 75% Growth Good South South and East The large areas of developable vacant land contained within the subject's market area continues to attract developers and drive the development of large planned residential communities, many with golf courses and country clubs. Typically, supporting commercial uses, such as shopping, entertainment, and employment centers, follows residential development. This has been the case in the subject's market area as well. III Page 15 Packet Page -281- 7/8/2014 11.C. 305 Acres Demographic Factors The following table shows demographic trends over the past nine years, current projections and 5 year projections. The projections are for Florida, Collier County, and a 5 mile radius from the property appraised. This information was compiled by CCIM Site to do Business Online. Population Density 2012 305 acres Collier County Collier County; Florida Population 173.49 Households 2010 Total Population 71,874 321,520 18,801,310 2012 Total Population 74,015 329,463 19,016,069 2017 Total Population 77,554 346,695 19,668,380 2010 -2012 Annual Gro%Wi Rate 1.31% 1.09% 0.51% 2012 - 2017 Annual Gro«4h Rate 0.94% 1.02% 0.68% Population Density 2012 942.44 164.87 2017 987.50 173.49 Households 2012 Households 28,932 136,288 2017 Households 30,441 143,881 2012 - 2017 Annual Cs-ox%1h Rate 1.02% 1.09% 2012 Average Household Size 2.54 2.38 2017 Average Household Size 2.53 2.38 2012 Housing Units 39,708 201,716 Omier Occupied Housing Units 49.07% 47.81% Renter Occupied Housing Units 23.79% 19.76% Vacant Housing Units 27.14% 32.44% Medan Household lueome 2012 $45,863 $52,691 2017 $53,447 $60,032 2012 -2017 Annual G-o%Nlfi Rate 3.11% 2.64% Median Home Value 2012 $148,375 5185,645 2017 $174,236 $207,094 Median Age 2012 43.10 47.80 2017 44.60 49.90 354.61 366.78 7,511,106 7,757,788 0.65% 2.48 2.48 9,109,494 54.09% 28.36% 17.55% $43,924 $51,971 3.42% $135,865 $158,944 41.20 41.90 Page 16 IT Packet Page -282- 7/8/2014 11.C. 305 Acres Outlook and Conclusions The market area is in the stabilized stage of its life cycle. Recent development activity has been slow, however shows signs of increasing. Given the history of the area and the growth trends, it is my opinion that property values will increase in the near future. In comparison to other areas in the region, the market area is rated as follows: MARKET AREA ATTRIBUTE RATINGS Highway Access Above Average Demand Generators Average Convenience to Support Services Average Convenience to Public Avec•age Transportation Employment Stability Average Police and Fire Protection Average Property Compatibility Average General Appearance of Properties Average Appeal to Market Average PricesNalue Trend Average Page 17 Packet Page -283- 7/8/2014 11.C. 305 Acres Surrounding Area Map Page 18 ly Packet Page -284- 7/8/2014 11.C. 305 Acres Property Description The following description is based on our property inspection, assessment records, property deeds, survey dated June 4, 2001 prepared by Mayson Land Surveying and information provided by Collier County. SITE Location: White Lake Blvd. east of Collier Blvd., north of I -75, adjacent to the County landfill. Current Use of the Vacant land Property: Site Size: Total: 305.56 acres; 13,310,194 square feet Usable: 203.96 acres; 8,884,498 square feet The site contains 101.6 acres wetlands. Shape: The site is roughly rectangular. Frontage /Access: The subject property has average access with frontage as follows: • White Lank Blvd: 2,700 feet • Shearwater St: 735 feet The site is not a corner lot. Visibility: Average Topography: Level, treed Soil Conditions: The soil conditions observed at the subject appear to be typical of the region and adequate to support development. Utilities: Electricity: The site is served by public electricity. Sewer: Municipal sewer Water: Municipal water Natural Gas: None Underground Utilities: The site is serviced by underground utilities. Adequacy: The subject's utilities are typical and adequate for the market area. Site Improvements: Street Lights: None Sidewalk: None Curb/Gutter: None Landscaping: Natural vegetation rIq Page 19 Packet Page -285- 7/8/2014 11. C. 305 Acres Flood Zone: The subject is located in an area mapped by the Federal Emergency Management Agency (FEMA). The subject is located in FEMA flood zone AH, which is classified as a flood hazard area. FEMA Map Number: 12021 CO416H FEMA Map Date: May 16, 2012 Zone AH- Areas with a I% annual chance of shallow flooding, usually in the form of a pond, with an average depth ranging from 1 to 3 feet. These areas have a 26% chance of flooding over the life of a 30 -year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones. Wetlands /Watershed: Based on an environmental study completed by DRMP, the property appraised contains 101.6 acres of wetlands. Due to the quality of the wetlands, the property has a functional 44.47 acres of wetlands. Environmental Issues: DRMP prepared an environmental report for the property appraised in 2008. Their environmental report is in the addenda of this appraisal report. Based on an environmental study completed by DRMP, in addition to wetlands, the property appraised is located within a primary Florida panther telemetry zone. Development of the site will require mitigation. DRMP estimated the mitigation cost to develop the site to be between $9 and $13 million for the wetland and panther mitigation. Encumbrance / There are no known adverse encumbrances or easements. Easements: Please reference Limiting Conditions and Assumptions. Site Comments: The site is located west of the County landfill. The site has average and typical utility. Page 201 Packet Page -286- - 'U < 'e subject ' S � � �'•.' 6� �.' .f Y 3n� Ifs 1' t^ �t s MAO a ARTY "Anon, onj gs { A i1x k f C .• 7v � f �} = S "_ 1 ( Y- (.^ �*�'vy} Fi�_j � S46 e ,J ^s7 J g1 1 .� �,( �esi�'_s«.� ? s 7/8/2014 11.C. 305 Acres FLUCCS Map (Florida Land Use Cover and Forms Cassification System) cl : ,I. , + + + 1 g. + + < r R +3rge! 1 ! I 1 1 + + + tit�i 1 iii ►� + h Y eq�I�a L c ., Page 22 14 Packet Page -288- 7/8/2014 11.C. 305 Acres Subject Photographs Northerly view of entrance to property appraised form White Lake Blvd. Typical interior of property appraised T Page 23 Packet Page -289- 305 Acres Easterly view of frontage on White Lake Blvd. Westerly view of frontage on White Lake Blve. 7/8/2014 11. C. Page 24 1� Packet Page -290- 7/8/2014 11. C. 305 Acres Collier County Landfill The property appraised is located adjacent to the Collier County landfill. The County currently has the property appraised under contract for purchase. The County plans to use the property appraised for mitigation for the landfill and a potential fly over road over 1 -75 to connect to Benfield Road south of 1 -75. The mitigation use on the property appraised would allow the County to expand the capacity of the landfill upon the existing landfill site. A description of tine landfill from Collier County's website is below. Landfill Definition: A landfill site (also known as a tip, dump, or rubbish dump; and, historically, as a midden) is a site for the disposal of solid waste materials by burial and is the oldest form of waste treatment. Historically, landfills have been the most common methods of organized waste disposal and remain so in many places around the world. Landfill History: The Collier County Landfill property was purchased by the Board of County Commissioners August 30, 1974, and was under construction from 1975 to 1976 when the County's population was approximately 60,000. (Current population as of the 2010 US Census is 321,520.) The first solid waste was delivered to the Collier County Landfill in December 1976. Tile landfill is operated on behalf of the County by Waste Management Inc., of Florida (contract was awarded in I995). The Collier County Landfill (formerly known as the Naples Sanitary Landfill) is a 310.97 -acre Class I solid waste management facility and accepts incoming solid waste six days a week (Monday through Saturday), except for Thanksgiving Day, Christmas Day, and Independence Day (July 4). Collier County Landfill: The Collier County Landfill is a lined, Class I landfill operating under required permits from the Florida Department of Environmental Protection. A Class i landfill accepts municipal solid waste that is not hazardous waste. The landfill is an engineered system designed and constructed to protect the environment. Protective features have been added to the design to minimize the risk of pollutants escaping into the environment. The landfill is constantly monitored as required by federal and state regulations. Municipal Solid Waste (MSW): MSW means garbage, refuse, and similar solid waste material discarded from residential, commercial, institutional, and industrial sources. MSW consists of everyday items such as product packaging, grass clippings, furniture, clothing, bottles, food scraps, etc. When these materials are buried in a landfill they decompose, which results in tine production of leachate (garbage juice) and landfill gas. These substances must be controlled and monitored to protect public health and safety, and the environment. IT Page 25 Packet Page -291- 305 Acres Assessment and Taxes Taxing Authority Collier Assessment Year 2013 Real Estate Assessment and Taxes Tax ID Land Improvements Total County Taxes Rate 00298480005 $7,538,750 $0 $7,538,750 $11.93 $89,958 Real Estate Assessment Analysis Tax ID Per Acre Total 00298480005 $24,672 $7,538,750 Comments The assessed value of the property appraised is consistent with the assesses{ value of similar property types. Page 2G Packet Page -292- 7/8/2014 11.C. 7/8/2014 11.C. 305 Acres Zoning LAND USE CONTROLS Zoning Code A - Rural Agricultural District by Collier County Zoning Description Permitted uses include single family dwelling, agricultural activities, wholesale reptile breeding and raising, wildlife management, conservation uses, oil and gas exploration, family care facilities, communication towers, essential services, and schools. Zoning Density /FAR 0.00 Actual Density of Use Actual density of use Current Use Legally Conforming The subject is legal and conforming use. Zoning Change Likely A zoning change is unlikely. Zoning Change Description N/A Set Back Distance Minimum Front Yard - 50 ft; Minimum Rear Yard -50ft Side Yard Distance Minimum - 30 ft Zoning Comments Minimum lot area - 217,800 sf; Minimum Lot Width - 165 ft, Maximum Building Height - 35 ft; Minimum Floor Area - 550 sf. According to the local planning department, there are no pending or prospective zoning changes. It appears the property conforms with zoning requirements. x11, Page 27 Packet Page -293- 7/8/2014 11.C. 305 Acres Comprehensive Land Use Plan 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 property appraised is located within the Urban Industrial District. (XV) D. Urban Industrial District The Industrial Land Use District is reserved primarily for industrial type uses and comprises approximately 2,200 acres. Besides basic Industrial uses, limited commercial uses are permitted. Retail commercial uses are prohibited, except as accessory to Industrial or Business Park uses. The C -5, C -4 and PUD Commercial Zoning Districts along the perimeter of the designated Urban Industrial District that existed as of October 1997 shall be deemed consistent with this Land Use District. Industrially designated areas shall have access to a road classified as an arterial or collector in the Transportation Element, or access may be provided via a local road that does not service a predominately residential area. Intensities of use shall be those related to: a. Manufacturing; b. Processing; c. Storage and warehousing; d. Wholesaling; e. Distribution; f. High technology; g. Laboratories; h. Assembly; i. Computer and data processing; j. Business services; k. Other basic industrial uses as described in the Industrial Zoning District of the Land Development Code; 1. Business Park uses as discussed below and as described in the Business Park Zoning District of the Land Development Code; and in. Support commercial uses, such as child care centers and restaurants. r -� Page 28 Packet Page -294- 7/8/2014 11.C. 305 Acres Highest and Best Use Highest and best use may be deftned3 as the reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. 1. Legally Permissible: What uses are permitted by zoning and other legal restrictions? 2. Physically Possible: To what use is the site physically adaptable? 3, Financially Feasible: Which possible and permissible use will produce any net return to the owner of the site? 4. Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)? Highest and Best Use of the Site as Vacant Physically Possible: The physical characteristics of the site do not appear to impose airy unusual restrictions for development. Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses. Among these uses include an industrial park and support uses for the Collier County landfill. Legally Permissible: The site is zoned Agricultural and has a Comprehensive Land Use Designation of Industrial, which permits a variety of industrial type uses. To my knowledge, there are no legal restrictions that would limit the use of the property. Given prevailing land use patterns in the area, only industrial uses including support uses for the Collier County landfill are given further consideration in determining the highest and best use. Financially Feasible; Based on my analysis of the market, there is currently limited demand for new industrial uses in the subject's area. It appears that a newly developed industrial use would not have a value commensurate with its cost. Therefore, industrial is not considered to be financially feasible at this tithe. While the Collier County landfill does not need immediate expansion and likely won't for 30+ years, the location of this site adjacent to the landfill and land prices being among the lowest in 10+ years provides a unique opportunity for the County to plan for the need for more capacity in the landfill at a reasonable cost. riq Page 29 Packet Page -295- 7/8/2014 11. C. 305 Acres Maximally Productive: Based on my analysis, there does not appear to be any reasonably probable use of the site that would generate a higher residual land value than support uses for the County landfill. Accordingly, it is my opinion that support uses for the County landfill is the maximally productive use of the site. The only use that meets the four tests of reasonability as vacant is support uses for the County landfill, therefore it is considered to be the highest and best use as vacant. Page 30 Packet Page -296- 7/8/2014 11.C. 305 Acres Valuation Methodology Three basic approaches may be used to arrive at an estimate of market value. They are: 1. The Cost Approach 2. The Income Approach 3. The Sales Comparison Approach Cost Approach The Cost Approach is summarized as follows: Cost New - Depreciation + Land Value = Value Income Approach The Income Approach converts the anticipated flow of future benefits (income) to a present value estimate through a capitalization and or a discounting process. Sales Comparison Approach The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. By process of correlation and analysis, a final indicated value is derived. Final Reconciliation The appraisal process concludes with the Final Reconciliation of the values derived from the approaches applied for a single estimate of market value. Different properties require different means of analysis and lend themselves to one approach over the others. Analyses Applied A cost analysis was considered and was not developed because this approach is not applicable. The property is vacant land with no improvements. A sales comparison analysis was considered and was developed because there is adequate data to develop a value estimate and this approach reflects market behavior for this property type. An income analysis was considered and was not developed because this approach is not applicable. The property is vacant land with no improvements. 141 Page 31 Packet Page -297- 7/8/2014 11.C. 305 Acl•es Sales Comparison Approach The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution and externalities. The following steps describe the applied process of the Sales Comparison Approach. • The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed. • The most pertinent data is further analyzed and the duality of the transaction is determined. • The most meaningful unit of value for the subject property is determined. • Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject property. • The value indication of each comparable sale is analyzed and the data reconciled for a final indication of value via the Sales Comparison Approach. Unit of Comparison For this analysis, we use price per acre as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. Page 32 1' Packet Page -298- 7/8/2014 11.C. 305 Acres Land Comparables I have researched four comparables for this analysis; these are documented on the following pages followed by a location trtap and analysis grid. Due to the size of the property appraised and its potential industrial use, I completed a search for comparable sale properties State wide. All sales have been researched through numerous sources, inspected and verified by a party to the transaction. Comp Name Date Acres Days on Market Zoning City Price Usable Acres Price per Acre Environmental Issues Subject 305 Acres Contract 305.56 NA AG-Industrial I 2 3 4 Naples Se Bridge Rd & Powerline Ave. Hobe Sound Willow Creel: Titusville Ashley Glen Land O Lakes Fed E\ Ground Ocala Ocala $5,250,000 ........................ 4 /30/2013 $1,000,000 4/15/2013 $1,250,000 203.96 152.68 141.63 124.50 69.89 7/26/2013 297.85 $8,700,000 227.05 .. ............. 7/22/2013 5/29/00 $17,182 354 $6,550 248 $10,040 519 $29,209 NA $7,800,000 $150 $52,000 101.6 acres wetlands .. ..................... . Industrial 11.05 acres wetlands Commercial 54.6 acres wetlands Commercial 70.8 acres wetlands Industrial, conunercial None ll, Page 33 Packet Page -299- 7/8/2014 11. C. 305 Acres Grantor Transaction Robert Hamman ID 2480 Date 4/30/2013 Ackiress Se Bridge Rd & Powerl ne Price $1,000,000 City Hobe Sound Price per Usable Acre $7,061 County (Martin (Financing Cash Eq. State FL Property Rights Fee Simple Zip 33455 Days on Market 354 Tax ID See notes Verifiention Source Broker Grantor Sab Real Estate LLC Source Name Robert Hamman Grantee Bridgewater Fame LL.0 Source Phone 561 -346 -2310 Site Acres 152.7 Topography Level, treed Usable Acres 141.6 Zoning Industrial Road Frontage Bridge Rd , Powerline Ave Traffic Count 9,300 Shape In•egular Di%ironn►enlal Issues 11.05 acres wetlands Utilities City water & sewer Comments Industrial 127.68 acres, Rural Destiny 25 acres. Purchased for specialization. Location is rural. Tax IDs 32 -39- 42 -000 -000- 00010 -1, 32-39-42 -000- 000 - 00021 - 8,32- 39 -42- 000 - 000 - 00101- 1,33- 39 -42- 000 - 000. 00050. 0,33- 39 -42- 000- 000 - 00051 - 9,34- 38 -42. 000 - 185 - 00011- 7,34- 38 -42- 000 -185- 00030 -4. Page 3a Packet Page -300- 7/8/2014 11.C. 305 Acres Transaction ID 2482 Date 4/15/2013 Acklress 7880 Grissom Pkwy Price $1,250,000 City Titusville Price per Usable Acre $17,885 County Brevard Financing Cash Eq. State FL Property Rights Fee Simple Zip 32780 Days on iYfarket 248 Tax ID See Notes Verification Source Seller Broker Grantor Atlas FL 1 Source Name Michael Gach Grantee Willow Creek Centroplex Source Phone 321- 453 -4200 LLC, Grissom Centroplex LLC Site Acres 124.5 Topography Level, treed Usable Acres 69.9 Zoning Commercial Road Frontage Gisson Play. Traffic Count 12,700 Shape Roughly Rectanguiar Furtirotimental Issues 54.6 acres wetlands Utilities City water R sewer Comments FLU Designation- Conunercial High Intensity 113 acres, Conservation 11.6 acres. Some infastructure. Anthony Portigliati is the buyer who owns both LLCs. Located across from the Space Coast Regional Airport. Tax tDs23-35-10-01- 00003.0- 0000. 00, 23- 35- 10- Ol- OOOD1.0- 0000. 00, 23- 35- 10 -01- 000132.0- 0000.00,23- 35- 10.01- 00OR3.0- 0000.00,23- 35- 10 -01- 00000.0 - 0002.00,23 -35- 10.01- 00000.0 - 000 = 4.00,23- 35- 10- 01- 00000.0- 0005.00, 23-35-10-01-00000.0-0006.00,23-35-10-01-00000.0-0008.00, 23- 35- 10.01- 00000.0- 0009.00, 23- 35- 10 -01- 00000.0- 0012.00, 23- 35- 10 -01- 00001.0- 0000.00. 11, Page 35 Packet Page -301- 7/8/2014 11.C. 305 Acres 1D 2481 Date 7/2612013 Ackh-ess 3373 Abernethy Dr. Price $8,700,000 City band O Lakes Price per Usable Acre $38,318 County Pasco Financing Cash Eq. State FI., Property Rights Fee Simple Zip 34638 Days on Market 519 Tax ID See notes Verification Source Broker Grantor Ashley Glen Land Trust, Source Name Ryan Sampson Grantee NNP -Be .dey LLC Source Phone 813- 287 -8787 Site Acres 297.9 Topography Level, partially teed Usable Acres 227.1 Zoning Commercial Road Frontage SR 54 Traffic Count 4I,900 Shape "U" Emironmental Issues 70.8 acres wetlands Utilities City water& server Comments FLU Designation- CON 29 acres, ROR 256 acres, RFS -3 10 acres. Part of an assemblage, the north260 acres purchased from Ashley Glen for $6.1MM, the south 37 acres purchased from Welsh Fargo Bank for $2.6iMM. Buyeromis 1,000 acres to north they intendd to develop with aresidentialsubdivision. Buyer motivation was to control uses on this property to be compatible with the proposed residential develonent, and to develop the entrance road which has a cost ofaround $6MM. This area has a high demand for residential due to location only 25 minutes from down town Tampa.. Bruce Earhardt CW Brokered REDUS sale. Tax lDs 19- 26 -18- 0000 -00500 -0000, 30- 26 -18- 0000 - 00200 -0010, 30 -26 -18 -0000 -00200 -0030, 30-26-18.0000 - 00200- OOCO,30- 26-18- 0000 - 00200- OOE0,30- 26 -18. 0000 - 00200- OOWO,30 -26- 18.0000- 00200 - 00\\' 1. Page 36 Packet Page -302- 7/8/2014 11.C. 305 Acres ID 2488 Date 7/2212013 Address Near 1 -75 cil 354 Price $7,800,000 City Ocala Price per Usable Acre $52,000 County Marion Financing Cash Eq. State FL Property Rights Fee Simple Zip 34175 Days on 1%,larlcet - Tax ID 21465 -002 -00 Verification Source Grantor Grantor Ocala 489 LLC Source Name Joseph Nisbett #RE, FI Source Phone 407- 628 -3880 Site Acres 150.0 Topography Level, cleared Usable Acres 150.0 Zoning industrial, commercial Road Frontage 1 -75 Traffic Count 61,500 Shape Roughly Rectangular Fmironmental Issues None Utilities City water & sewer Comments The site is zoned M -1 light industrial 120 acres B -2 commercial 30 acres. The site is cleared farm land. FedEx plans to build a 300,000 sf + distribution facility on time site. Numerous incentives negotiated with the city of Ocala and Marion County including up to $3.47 million for the state's Qualified Target Industry grant proginni, impact and other fee waivers, and the cost to move a Florid (ems Transmission line and power lines. The City and County also hnproved roads to the site before the purchase. FedFAe\mects to hire 165 employees, but the total employment impact may be as high as 1,000 new jobs. T Page 37 Packet Page -303- 305 Acres Comparabies Map peltana P Sanfordb . 6 " �gtlando lartjgr � Klssrmmee t % i T t % Tampa ! M, I bar I- 1 0 1 1 4111 to sb r I ''- q bradentan P P QSarasota ? y;- P Port SI Venice ` 1 .: zr I ItCIE o n -a ksctew Boca f3atow Holi woo f <<,rti�r�c1 J YA.e tart C rss _ r: 7/8/2014 11.C. Idale Map data ©2014 Goo, e Analysis Grid The above sales have been analyzed and compared with the subject property. I have considered adjustments in the areas of. • Property Rights Sold • Market Trends • Financing • Location • Conditions of Sale • Physical Characteristics On the following page is a sales comparison grid displaying the subject property, the comparables, and the adjustments applied. Page 38 F Packet Page -304- 7/8/2014 11.C. 305 Acres Land Analysis Grid C01111) 1 Conip 2 Comp 3 Comp 4 Name 305 Acres Se Bridge Rd & XVillow Creek Ashley Glen Fedl3xCiround Powerline Ave. Ocala Address White Lake Blvd Se Bridge Rd & 7880 Grissom 3373 Abernethy Near 1 -75 eat PoNverline Ave Plavy Dr. 354 City Naples Hobe Sound Titusville Land 0 Lakes Ocala County Collier Martin Brevard Pasco Marion Date 4/15/2014 4/30/2013 4/15/2013 7126!2013 7/22/2013 Price $5,250,000 $1,000,000 $1,250,000 $8,700,000 $7,800,000 Acres 305.56 152.68 124.50 297.85 150.00 Acre Unit Price $17,182 $6,550 $10,040 $29,209 $52,000 Transaction Adjustments Fee Simple Fee Fee Fee Fee Property Rights Supple 0.0% Simple 0.0% Simple 0.0% Supple 0.0% Cash Cash Cash Cash Fuiancuig Conventional Eq. 0.00/6 Eq. 0.0% Eq. 0.0% Eq. 0.00/0 Conditions of Sale Cash Nor=[ 0.0%o Normal 0.00/c ixronnal 0.01/4 Normal 0.00/c Adiusted Acre Unit Price $6,550 $10,040 $29,209 $52,000 Market Trends Through 4115!2014 0.0% 0.00/0 0.0% 0.00/0 0.00/0 Adjusted Acre Unit Price $6,550 $10,040 $29,209 552,000 Location Suburban Rural Suburban Surburban Urban Compambility Inferior Very Inferior Superior Superior Acres 305.56 152.68 124.50 297.85 150.00 Comparability Similar Similar Similar Similar Topography Level, treed Level, treed Level, treed Level, partially Level, cleared treed Comparability Similar Similar Superior Very Superior Divirornuk:nlalIssues 101.6acres 11.05acres 54.6 acres 70.8 acres None wetlands wetlands wetlands wetlands Comparability Superior Similar Similar Very Superior Traffic Count Low 9,300 12,700 41,900 61,500 Comparability Sit. Superior Sit. Superior Very Superior Very Superior Prinxnry Usei Industrial Industrial Conuirrciai Conuirreial Industrial Comparability Similar Slt. Superior Sit. Superior Similar Distance 0 112 170 151 213 Overall Comtxtrability SILSuperior Similar Superior Very Superior r 1r�y -� yl Page 39 Packet Page -305- 7/8/2014 11.C. 305 Acres Comparable Land Sale Adjustments The adjustment process is typically applied through either quantitative or qualitative analysis. Quantitative adjustments are often developed as dollar or percentage amounts, while qualitative adjustments are simply expressed through relative comparison (i.e. significantly inferior). Quantitative adjustments are most applicable when the quality and quantity of data allows paired sales, cost or statistical analysis. Given the availability of data and imperfect nature of the real estate market, participants most often rely on relative or qualitative comparisons. Market participants can often identify superior or inferior characteristics when comparing properties. Without paired sales or statistical information, applying quantitative adjustments to reflect the differences is often problematic or subjective. For this analysis, qualitative adjustments are applied. Property Rights The transaction price of a sale is always based on the real property interest conveyed. In this instance, an adjustment for this attribute was not considered necessary. Financing Prices paid in acquiring property may differ significantly due to the financing involved, if any. Cash or cash equivalencies are the basis of value, whereas extended, above market interest rate and /or leverage investor terms sales, generally represent the higher portion of a sales price range. Therefore, some methods of converting these financing terms to cash must occur so that the adjustment process may be applied to the sales. In reviewing the comparables, an adjustment was not required for atypical financing. Conditions of Sale Adjustments made for conditions of sale usually reflect atypical motivations of the buyer and seller at the time of conveyance. A sale may be transacted at a below market price if the seller needs cash in a hurry. A financial, business, or family relationship between the parties may also affect the price of property. Interlocking corporate entities may record a sale at a non- market price to serve their business interest. When non- market conditions of sale are detected in a transaction, the sale must be thoroughly researched before an adjustment is made. Within the confirmation process, detailed attention was made to ensure the conditions of each sale. Based upon the research performed, it is believed that all of the comparable sales involved regular arms - length transactions without the presence of duress or adverse market influence. As such, no adjustments were warranted. r iq Page 40 Packet Page -306- 7/8/2014 11. C. 305 Acres Market Conditions Market conditions may change between the time of sale of a comparable property and the date of the appraisal of the subject property. Changed market conditions often result from various causes, such as inflation, changing demand, and changing supply. Time itself is not the cause for the adjustment. Sales within the markets have been flat over the past 18 to 24 months. Based on this information, no adjustment is made to the sales. Location In analyzing the location of the property appraised in comparison to the sale properties I analyze the demographics surrounding the sites in the following table. I consider population growth, density, household income and home values. The overall comparability of the property appraised to the sale properties is given in the last line of the table. Property Name Radius Subject 305 acres Colller County 5.0 miles Sale 1 Bridge Rd. & POwerllne Ave. 5.0 miles Sale 2 Grissom Pkwy.. 5.0 miles Sale 3 Ashley Glen 5.0 miles Sale 4 FedEx Ocala 5.0 miles Popuiaflon 2010 - 2012 Annual Growth Rate 1.31% 0.25% 0.28% 1.15% 1.11% 2012 - 2017 Annual Growth Rate 0.94% 0.47% 0.13% 1.21% 0.86% Very Inferior Very Inferior Similar Similar Population tensity 2012 942.44 273.07 633.20 580.39 822.52 2017 987.50 279.59 637.38 616.37 858.69 Very Inferior Inferior Inferior Similar Median Household Income 2012 $45,863 $51,067 $47,864 $55,279 $35,186 2017 $53,447 $59,092 $54,517 $63,530 $41,244 2012 - 2017 Annual Growth Rate 3.11% 2.96% 2.64% 2.82% 3.23% Sit. Superior Similar Sit.Supedor Inferior Median Home Value 2012 $148,375 $184,592 $113,074 $197,335 $91,391 2017 $174,236 $207,`175 $127,973 $216,967 $107,469 Superior Inferior Superior Inferior Overall Comparability Inferior Very Inferior Superior Inferior Location - Sale Property 4 While the demographics surrounding sale property 4 are inferior overall compared to the property appraised, the location is unique due to its central location in Florida and proximity to interstate highways and access to other locations throughout the State. Sale property 4 was purchased by FedEx for a distribution facility. This site was also considered by Wal -Mart and Cisco Foods for distribution facilities due to its advantageous location. Therefore, while the demographics near sale property 4 are inferior to the property appraised, its location near highways that provide efficient access to various parts of the State make its location superior overall to the property appraised. 41 Page 41 Packet Page -307- 7/8/2014 11.C. 305 Acres Topography The property appraised is inostly treed, Sales 3 and 4 are superior to the property appraised in topography as they are mostly or entirely cleared land. Environmental Issues The property appraised is approximately 1/3`d wetlands. Sales I and 4 are superior to the property appraised due to their little or no wetlands. Traffic Count The property appraised is located on a road with low traffic levels. All the sale properties are located on roads with greater traffic count than the property appraised. Primary Use The property appraised could be rezoned to allow industrial use at a small cost compared to the property value. Sale properties 2 and 3 are permitted for commercial use which tends to have a higher value than industrial use properties. Sales Comparison Approach Conclusion — Land Valuation • The values of the comparable properties range from $6,550 to $52,000; the average is $24,450. • Overall, sale property 2 is most similar to the property appraised with regards to its physical and legal characteristics. • The motivation of the buyer of sale property 3 is most similar to the motivation of the potential user of the property appraised (Collier County) whereby the buyer owned adjacent land that benefits from the purchase of the land sold. All of the value indications have been considered, and in the final analysis, comparables 2, 3 and the contract price on the property appraised, have been given most weight in arriving at my final reconciled per acre value of $17,000. As Is Market Value Iudicated Value per Acre: $17,000 Subject Size: 305.56 Indicated Value: $5,194,520 Rounded: $5,200,000 Five Million Two Hundred Thousand Dollars Hypothetical Conditions: • There are no hypothetical conditions for this appraisal. Extraordinary Assumptions: • None. Page 42 Packet Page -308- 7/8/2014 11.C. 305 Acres Liquidation Value Liquidation value is defined as: "The most probable price that a specified interest in real property is likely to bring wider all of the following conditions: • Consummation of a sale will occur within a severely limited fiiture marketing period specified by the client. • The actual market conditions currently prevailing are those to which the appraised property interest is subject. • The buyer is acting prudently and knowledgeably. • The seller is under extreme compulsion to sell. • The buyer is typically motivated. • The buyer is acting in what he or she considers his or her best interest. • A limited marketing effort and time will be allowed for the completion of the sale. • Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto. • 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: The Dictionary of Real Estate Appraisal, Fourth Edition, Appraisal Institute, Chicago, Illinois, 2002) Per instructions from the client, we have been instructed to determine liquidation value as is of the subject under a 6 month marketing period. In order to adjust the marketing period to be less than market- oriented levels, a discount in price is needed to attract investors. There are no comparable REO or auction sales in the market area of "commercial" properties to analyze. Interviews with local brokers indicate liquidation discounts of approximately 20% to 25% are necessary to stimulate a quick sale, or orderly liquidation, and discounts of approximately 30% to 35% are necessary to stimulate a forced sale. Much of the information gathered on liquidation rates is from interviews with local real estate brokers involved in the sale and purchase of commercial properties. While this doesn't constitute empirical evidence it does provide insight as these individuals are on the "front line" in dealing with prospective buyers. While there is not a lot of empirical T Page 43 Packet Page -309- 7/8/2014 11.C. 305 Acres data or information regarding the liquidation or forced liquidation of "commercial" properties in the local or regional marketplace we do have data pertaining to residential properties. Again, while not an absolute "apples to apples" comparison this information should provide additional insight into what investors are willing to pay in a "down" market. I interviewed David Snow of Premier Real Estate Auctions. Mr. Snow said a seller should expect a discount of approximately 40% to 50% of the retail value of the home or lot in an absolute auction, in which the seller guarantees to sell the property on auction day regardless of price. They are not seeing nearly as much interest in reserve auctions, so he highly recommends absolute auctions in order to attract as many buyers as possible Interviews with local commercial brokers Craig Timmins, CCIM of Investment Properties Corporation and Scott Dunnick, a partner with CB Richard Ellis — Fort Myers/Naples suggested than there needs to be an approximately 15% - 20% discount from the asking prices or market values to decrease the marketing period to 6 months. Based on the preceding analysis, I conclude to a liquidation discount of 25% based on a 6 inonths ntal•keling pet -iod indicating the following liquidation valuation. Liquidation Value as is, Fee Simple, April 15, 2014: $3,900,000 • Hypothetical Conditions: There are no hypothetical conditions for this appraisal. a Extraordinary Assumptions: None Page 44 l' Packet Page -310- 7/8/2014 11. C. 305 Acres Final Reconciliation The process of reconciliation involves the analysis of each approach to value. The quality of data applied, the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. Finally, each is considered separately and comparatively with each other. Value Indications Market Value Liquidation Value Cost Approach: Not Applicable Not Applicable Sales Comparison Approach: $5,200,000 $3,900,000 Income Approach: Not Applicable Not Applicable Cost Approach The cost approach is most reliable for newer properties that have no significant amount of accrued depreciation. As previously discussed, the Cost Approach is judged to be inapplicable and is not utilized. Sales Comparison Approach The sales comparison approach is most reliable in an active market when an adequate quantity and quality of comparable sales data are available. In addition, it is typically the most relevant method for owner -user properties, because it directly considers the prices of alternative properties with similar utility for which potential buyers would be competing. There is a reasonably active market for comparable properties, and this approach most closely reflects buyer behavior. Accordingly, the sales comparison approach is given greatest weight in the value conclusion. Income Approach The income capitalization approach is usually given greatest weight when evaluating investment properties. The value indication from the income capitalization approach is supported by market data regarding income, expenses and required rates of return. As previously discussed, the Income Approach is judged to be inapplicable and is not utilized. 111 Page 45 Packet Page -311- 7/8/2014 11.C. 305 Acres Value Conclusion Based on the data and analyses developed in this appraisal, I have reconciled to the following value conclusion, as of April 15, 2014, subject to the Limiting Conditions and Assumptions of this appraisal. Reconciled Value: Premise: As Is Market Value Interest: Fee Simple Value Conclusion: $5,200,000 Five Million Two Hundred Thousand Dollars Premise: As Is Liquidation Value Interest: Fee Simple Value Conclusion: $3,900,000 Three Million Nine Hundred Thousand Dollars Hypothetical Conditions: • There are no hypothetical conditions for this appraisal. Extraordinary Assumptions: • None. r� Page 46 Packet Page -312- 7/8/2014 11. C. 345 Acres Certification Statement 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 of my personal, impartial, and unbiased professional analyses, opinions and conclusions. • I have no present or prospective fixture interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved. • 1 have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. • My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • The evaluation was not based on a requested minimum valuation or specific valuation, or approval of a loan. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). • My reported analyses, opinions, and conclusionS were developed and this report has been prepared in conformity with the Code of Professional Ethics and Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Instihrte. • The use of this report is subject to the requirernents of the Appraisal Institute relating to review by its duly authorized representatives. • No one provided significant real property appraisal assistance to the person(s) signing this certification. • 1 certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the appraisal firm. TF Page 47 Packet Page -313- 7/8/2014 11.C. 305 Acres • The appraiser has not performed any prior services regarding the subject within the previous three years of the appraisal date. Thomas A. Tippett has made an inspection of the subject property. • As of the date of this report, I (Thomas A. Tippett, MAI) have completed the requirements of the continuing education program of the Appraisal Institute. ,e� w� , Thomas A. Tippett, MAI State- certified general real estate appraiser RZ# 1669 tonn Petatippett.com Page 48 IT Packet Page -314- 7/8/2014 11.C. 305 Acres Addenda IT Page 49 Packet Page -315- 7/8/2014 11.C. Packet Page -316- 7/8/2014 11.C. 305 Acres Pf'ofc'SSioffai Qiiif {FjiCallons of Thomas A. TTppell, MAI EXPERIENCE: President, T.A. Tippett, inc. Actively engaged in real estate valuation and consulting since 1989. Practice is focused on community /neighborhood shopping centers, power centers, office buildings -CBD and suburban, warehouse /distribution, multi- family, condominium projects, hotels and motels, vacant land and special purpose properties. Specialized services include appraisals, portfolio valuation, market feasibility studies, acquisition/disposition counseling, and litigation support in connection with real estate transactions. Clients served include life insurance companies and pension fund advisors, banks and financial institutions, conduits, developers and investors, law fines, business /industry and government, and mortgage bankers. Valuations have been performed for estate, financing, equity participation and due diligence support. Completed economic feasibility studies for large mixed use and residential subdivisions, villas, and mid and high -rise condominium projects. Valuations and market studies have been done on proposed and partially completed commercial and residential projects as well as renovated and existing structures. PROFESSIONAL ACTIVITIES: • Member: Appraisal Institute - MAI Certificate Number 11793 • Regular Member: International Right of Way Association Member No. 7905123 • President, Chapter 82, International Right of Way Association 2013- 2014 • Licensed: Florida, State Certified General Real Estate Appraiser RZ #0001669 • Special Magistrate for the Lee County VAB • Urban Land Institute (ULI) • Bonita Estero Area Realtors • Florida Association of Realtors • National Association of Realtors EDUCATION: Bachelor of Science - Business Administration in Finance University of Florida, 1989. Successfully completed numerous real estate and valuation courses and seminars sponsored by the Appraisal Institute and others. QUALIFIED BEFORE COURTS; Qualified as an expert witness in the Circuit Court for Collier County. Qualified as an expert witness in the Circuit Court for Lee County. 71111 Page 51 Packet Page -317- 305 Acres 7/8/2014 11.C. c# in in D w a a w 1 JA CL (n i tsJ 171 V4 Hry i- P- a zip CIA 11144 CQ3 fin a :m ° & :OMB a .. ;.:' 4V: :d{ � ml a •. Page 52 IT Packet Page -318- INSTR 4744097 OR 4839 PG 888 RECORDED 9/25/2012 2:31 PM PAGES 2 DWIGHT E. BROCK, CLERK OF THE CIRCUIT COURT, COLLIER COUNTY FLORIDA Doc@.70 $2.10 REC $18.50 CONS $300.00 a��h • .4 MUNB LOAN HOLDINGS, LLC, a Foreign Limited Liability Company, as successor in interest to Mellon United National Bank, Plaintiff, VS. WALLACE L. LEWIS, JR., indi and MARIAN HOLLY LEWIS f� a/k/a Marian H. Lewis, individupl }� Defen E 7/8/2014 11.C. IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT IN AND FOR COLLIER COUNTY, FLORIDA GENERAL CIVIL DIVISION CASE NO.: 2011 - 1406 -CA C 0v� The undersigned Cl JK' f� ourt ce1 —1 S tlh1at ie e ' 11ted and filed a Certificate of Sale in thus action on Septa �b� 12, 2012, for tli, p o . described herein and that no objections to the sale have been `feiri�hin the time alert c� r filing objections. The following property Iocaeclriiaf�Cii ounty, Florida, and more particularly described as: Leeal Description of Real Property: The West %s of Section 36, Township 49 South, Range 26 East, Less and Except the land South of the Northerly Right of Way of Access Road No. 1, according to Road Book 3, Page 8, of the Public Records of Collier County, Florida. Description of Personal Property: All structures and improvements now and hereafter located on the property legally. described above and made a part hereof, the rents, issues and profits thereof, all furniture, furnishings, fixtures and equipment now located on the thereon, and also all gas and electric fixtures, heaters, air conditioning equipment, machinery, motors, bath tubs, sinks, water closets, water basins, pipes, faucets, and other pluinbing and heating fixtures, refrigerator equipment, venetian blinds, which are now or may hereafter pertain to or be used with, in or on said premises, and which, even though they are detached or detachable, are and shall be deemed to be fixtures and accessions to the freehold and a part of the realty, and all Packet Page -319- * ** OR 4839 PG 889 * ** 0 0 7/8/2014 11.C. additions thereto and replacements thereof (which real property, improvements and personalty are hereinafter collectively called the "Property "); all present or future deposits, accounts, security deposits, contracts, contract rights, instruments, permits, licenses, chases -in- action or other general_intangible rights, of any nature whatsoever now or hereafter dealing with, affecting or Concerning the Property, any portion thereof or any interest therein, and now or hereafter existing, acquired or held by Debtor, and derived, arising from or relating to any operation, development, ownership or management of the Property or businesses or concessions conducted on the Property, including, without limitation: (i) any agreements for the provision of utilities to all or any portion of the Property, (ii) all deposits for the use of all or any portion of the Property, (iii) all revenue arising from, growing out of, or in connection with the use and/or occupancy of the Property, and all products and proceeds of the foregoing, (iv) all of Debtor's right, title and interest in and to all deposit accounts maintained with Secured Party or any affiliate of Secured Party, and (v) all other items of personal property used or useful in connectionwjth-th`6Zp�r�1 f the Property, together with all accessories, parts, equip e t �9j- acee "s t n attached to or used in connection therewith or}'�' u'e 1� ay hereafter at e be placed in or added to the Property, and also fiy a all replacements of a su� property, was so l to Se r. 1-1 whose address is Ca C {icy. Fetols �l •�1 . 1) WITNESS my hand nd ie offtcia7 seal oft Co rt o' Dated: ( 2012. 71 (0 - • " "'. • � �. ,� , �r -- F�e�f kS "f"Ccri�rt r . B 'As Deputy G`IeiFc� Copies furnished to: All Counsel/Parties of Record 0c c-1A� t- \--its -�R A, Packet Page -320- 7/8/2014 11.C. Collier County Property Appraiser Property Summary Parcel No. 100298480005 1 Site Adr. Name / Address ASSET RECOVERY XVIII LLC % CARLTON FIELDS PA PO BOX 19101 i 1 City 1 MIAMI 1 State FL 1 Zip 33101 -9101 Map No. Strap No. Section i Township Range I Acres *Estimated 4836 000100 0014636 1 36 1 49 26 1 301.55 136 49 26 BEG NW CNR SEC 36 E 2647.82DT, S 5089.75FT, NWLY ALG ARC OF CUR CONC TO NE Legal ,2381.11FT, NWLY + SWLY ALG ARC OF CUR TO S 305.68FT, N 1 DEG W2069.96 FT, N 2673.79FT TO I.POB Millage Area b 1287 { Millaae Rates b *Calculations 1 Sub. /Condo 1 100 - ACREAGE HEADER i School 1 Other Total Use Code 0 199 - ACREAGE NOT ZONED AGRICULTURAL 1 5.69 1 6.2427 11.9327 2013 Certified Tax Roll (Subject to Change) Land Value Latest Sales History ( +) Improved Value (Not all Sates are listed due to Confidentiality) ( =) Market Value Date Book -Page Amount 09/12/12 1 4839 -888 I $ 300 03/21/06 4002 -2399 I $ 0 11/01/85 1165 -905 $ 0 03/01/74 582 -796 $ 0 2013 Certified Tax Roll (Subject to Change) Land Value 1 $ 7,538,750 ( +) Improved Value 1 $ 0 ( =) Market Value 1 $ 7,538,750 (_) Assessed Value 1 $ 7,538,750 (_) School Taxable Value $ 7,538,750 (_) Taxable Value $ 7,538,750 If all Values shown above equal 0 this parcel was created after the Final Tax Roll litip:HwNvw.collierappraiser .coin /main_seai-cli/Recol packet Page -321- No &FolioNuln= 00298480005 4/9/2014 Dyer, Riddle, M1119 & Precourt, Inc. Principals Wayne D. Chardoux Donaldson K, Batton, Jr. Ludus J Cu{hman, Jr Jon S. Meadom Lawrence L Smith, Jr, Wstum T. Stone im ENOIN[EAI • fUAYEY0R/ • KAHHEAI+ f OiEHTi {71 September 2, 2008 Ms. Claudine Auclair Principal Planner Collier County Transportation Planning Dept, 2885 S. Horseshoe Drive Naples, FL 34104 Subject: Wallace L. Lewis, Jr. Parcel Environmental Due Diligence Letter Report Dear Ms. Auclair: 7/8/2014 11.C. DRMP Job # 06. 1087.000 Dyer, Riddle, Mills & Precourt, Inc, (DRMP) is pleased to provide this Environmental Due Diligence letter report to Collier County, examining the potential wetland and listed species issues associated with the County's potential purchase and joint- venture development of the Wallace L. Lewis, Jr. parcel (parcel ID /100298480005). Packet Page -322- INTRODUCTION The Wallace L. Lewis, Jr, parcel (parcel ID 1100298480005) is a rectangular parcel, totaling 305.56± acres in size, surrounded by Interstate 75 to the south, a Collier County landfill to the east, Collier County-awned undeveloped lands to tide north, and the White Lake Industrial Park and CityGate DRI to the west. Specifically, this parcel is located in part of Section 36, Township 49 South, Range 26 East in Collier County, Florida. A location map is provided as Figure 1, Collier County is considering a development plan for this parcel that would be a joint - venture between the County landfill, Lite City Gate DRI, and Collier County Department of Transportation, The Concept Plan (Figure 2), as provided by Collier County Department of Transportation, depicts the future expansion of the landfill on the eastern half of the property while the proposed Segment 3 of the Wilson Boulevard Extension/Benfield Road Corridor Study, a joint -use pond shared by Collier County DOT and the City Gate DRI, and a hydrologic flow way, encompasses the western half of the parcel, The Comity has hired Dyer, Riddle, Mills and Precourt, Inc. (DRMP) and Passerella & Associates to examine the potential occurrence of wetlands and listed species on the parcel, to 941Lake Baldwin Une Orlando, Florida 92614 approximate (lie potential impacts to wetlands and listed species that may occur, should such a Phone: 407.696,0594 development be implemented, and to approximate the mitigation costs associated with these potential Fax: 407.696.4036 environmental impacts. Soca Raton, Florida Charlotte, North CaroSna ChuthCarofina orida Columbia, SouthCar DRMP, Inc, and Passerella & Assoc. conducted no field visits durin g this site assessment, However, DoLand,Florida significant environmental assessment of this parcel has been conducted by the owner's agent, Collier Ft. Myers, Florida OalneseEia,Florila Environmental Consultants, Inc, (CECI), in support of the Century Park Center project, proposed by Jackakeland,FlorWa the property owner, for development on this parcel. To obtain site - specific parcel information, Lakeland, Florida Nomross,Geor0la without conducting a site visit to the parcel, DRMP biologist reviewed environmental documentation Panama City Beach, Florida Pensacola, Florida regarding wetlands and listed species, which has been reviewed and accepted by the South Florida 1`03hassee,FWoda Water Management District (SFWMD), in support of the Environmental Resource Permit (ERP) Tampa. Florida application, 1.600.376.3767 w,•rw.drmp,com Packet Page -322- 7/8/2014 11. C. EXISTING CONDITIONS This undeveloped parcel is predominantly forested. Approximately 204 acres are upland forested communities, while approximately 101 acres are wetland forested communities, Upland communities are dominated by pine Oatwoods (FLUCFCS 411), while the majority of wetland communities are pine - cypress- cabbage palm (FLUCFCS 624). A land use map and a corresponding FLUCFCS code table have been included as Figure 3 and Table 1, respectively. Table 1. FLUCCS CODE TABLE (CECI, Inc. 5131108) 1D Upland! Wetland CODE DESCRIPTION ACRES % of SITE I U 411 Pine Flatwoods 1.16 0.38 _ 2 U 411 Pine Flatwoods 1.72 0.56 3 U 411 _ _ _T _ Pine Flatwoods 3.06 1,00 �M4 U 411 Pine Flatwoods 14.30 4.68 U 411 _ _ Pine Flatwoods_ 1.79 � 0.59 _5 _ 6 U 411 411 Pine Flatwoods _ 3.14 Y 43.78 1.03 14.33 7 U Pine Flatwoods 7A ^ U 411 Pine Flatwoods 14,00 4.58 78 U 411 _ Pine Flatwoods 2.96 0.97 7C U 411 _ Pine Fla woods 0.66 0.22 7D U 411 Pine Flatwoods 25.19 8.24 8 U 411/310 Pine Flatwoods + Herbaceous _ 2.83 0.93 9 U _ 6249M Melaleuca/Cti press, Pine, Cabbage Palm; Drained _ 79.30 _ 25.95 10 _^ U 4249 Cabbagc Palm 2.97 0,97 U 4249 _...__.� Melaleuea;.Drained _0.34 0.11 _ll 12 U 4249 _ Drained 6.76 2.21 13 14 J l5 - W 424 _Melaleuca; _ ----- Melaleuca_ 1.26 0.41 W 424 _ Melaleuca _ - 0.64 0.55 _ 0.21 0.18 W 424 Melaleuca 16 W , 624H 624H Pine- Cypres- Cabbage Palm 68.32 22.36 16A W Pinc_C : p) i res-Cabbage Palm 2.62 0.86 16B _ W 624H Pine -C • pres -Ca_ bbage Palm; Burned _ 7.82 2,56 I6C W I 624H Pine- Cypres- Cabbage. Palm; Burned 6.27 2.05 l7 W 624H Pine -C - pres -Cabba ge Palm 13.111 4.29 6249M MelaleucalC Less, Pine, Cabbage Palm; Drained 1.01 0.33 TOTAL 305,56 100.00 Wrt_ etuster011projecls lPrnjectsOR06- 1087.000 North - soutit_Conidor Study_East„or CR„ 95 11 Environmental lrepoda- .wis _parcei_Due0itigencc.doc Page! of 12 Packet Page -323- % of DESCRIPTION ACRES SITE Uplands 203.96 66.75 Wetlands 101.60 33.25 TOTAL 305.56 100.00 Wrt_ etuster011projecls lPrnjectsOR06- 1087.000 North - soutit_Conidor Study_East„or CR„ 95 11 Environmental lrepoda- .wis _parcei_Due0itigencc.doc Page! of 12 Packet Page -323- This parcel has been subject to extensive exotic vegetation quinguenervia), Brazilian pepper (Schinus terebinthifolius) aurictiliforrnis) have encroached and dominated approximately including much of the existing wetland systems. WETLAND ASSESSMENT 7/8/2014 11. C. intrusion, Melaleuca (Melaleuca and ear -leaf acacia (Acacia 105 acres of the subject parcel, The following wetland assessment has been prepared to address the potential wetland impacts associated with the proposed Concept Plan (Figure 2). For purposes of this assessment, the wetland delineation was derived from the FLUCFCS map (Figure 3) prepared by Collier Environmental Consultants, Inc. (CECI) has been utilized to determine the Project's potential wetland mitigation requirement. Field verification regarding the FLUCFCS map's accuracy was outside this assessment's scope of services. WETLAND DELINEATION The South Florida Water Management District 2004 -2005 Land Use data shows that approximately 202 acres of the Lewis parcel were mapped as wetlands. However, during detailed field review of the project site, SFWMD Senior Regulatory Scientist Laura Layman certified that the CECI Land Use delineation, indicating only 101.6 acres of wetlands, was accurate. In a conversation with Ms. Layman, she indicated to DRMP biologists that a large portion of land ( FLUCFCS 6249M; 79.3 AC, 25.95% of the site) that was historically wet, did not have the appropriate soil characteristics or indicators of hydrology required to classify the land as wetlands, despite the inclusion of cypress trees in the canopy. Ms. Layman stated that she was comfortable with the wetland delineation presented by CECI, as evident by her informal approval of this delineation on 9 /11 /06 (Figure 3A), and was confident that if The County were to acquire this property with the intent of implementing their conceptual development plan, that the SFWMD would honor this wetland line for their project as well. Therefore, we can confidently conclude that the subject parcel has 101.6 acres of wetlands within the project boundary. WETLAND IMPACTS Within the Concept Plan, nearly all of the parcel would be permanently impacted from its current condition, with the exception of a 23.34 acre roadway interchange infield. This area is not designated for active use, though stormwatcr ponds to treat roadway runoff are commonly designed in roadway interchange infields, Six acres of this infield are wetlands, while the rest are uplands. Assuming that these six acres were preserved, and any necessary ponds were located in uplands, the development of the Concept Plan would result in approximately 95.6 acres of wetland impacts. In order for these wetland impacts to be allowed, SFWMD and the Army Corps of Engineers (ACOF.) will first require the County to demonstrate that they have eliminated and reduced wetland impacts to the greatest extent practicable, such that the wetland impacts proposed are necessary to achieve the goals of the project, and that there were no other viable alternatives to achieve those project goals without incurring the proposed wetland impacts. Of particular importance to this justification will be a thorough explanation as to why the County could not expand the landfill to the north of its existing location, onto the approximately 360 acres of land currently owned by the County, which would avoid impacting the wetlands existing natural flow way on the Lewis parcel. The Concept Plan describes the preservation of approximately 23 acres of uplands and wetlands within a roadway interchange infield. Additionally, the Concept Plan calls for the installation of an active hydrologic bypass system which would collect hydrology north of the parcel, and channel it through the parcel, into the canal south of the project, parallel to 1 -75, where it flows to the CR 951 11Or1_ clusl crollprojeclsU 'ro}ects061116.1087.000 North - south_Coaidor Study_Gast_or CR 95I% Env ironmentalVeporUkLewis_,parcel Duebiligence.doe Page 3 of 12 Packet Page -324- 7/8/2014 11.C. canal, and ultimately out to estuaries along the Gulf coast. The preservation of habitat within the roadway interchange infield is not likely to retain much ecological function and value after the implementation of the project, as it will be effectively isolated by the surrounding roadway and exit ramp system, reducing its hydrologic connectivity, accessibility to local wildlife, and increasing exposure to infiltration by exotic vegetation. Such a small preservation parcel would not likely provide much mitigation lift compared to anticipated impacts, However, the proposed hydrologic bypass system, preserving the hydrology from drainage north of the parcel to the CR 951 canal and ultimately, to coastal estuaries, could provide some mitigation credit to partially offset both direct and secondary impacts. UMAM ASSESSMENTS UMAM assessments for all of the wetland systems onsite have been conducted and negotiated with SFWMD during the permitting process for Century Park Center. UMAM .functional delta and functional loss scores for the wetland systems, uniquely identified on the CECI FLUCFCS map, were as follows: Table 2. UMAM Scores Wetland Wetland Acres UMAM Delta Functional Loss* 13 1.26 0.40 i 0.50 14 _ 0.64 0.40 0.26 15 0.55 0.40 0.22 16 68.32 0.47 0.47 32.11 16A 2.62 1.23 16B 7.82 0.47 16C 6.27 �u 0.47 2.95 17 J 18^ 7.11 _ 0.43 0.46 -- _ 3A6 0.46 1.01 Total 95.60 44.47 * Functional Loss = Wetland Acres x UMAM Delta LISTED SPECIES ASSESSMENT The following listed species assessment has been prepared to address the potential listed species concerns and compensation required for Florida panther (Puma concolor coryi) habitat impacts associated with the proposed Concept Plan (Figure 2). For purposes of this assessment, the FLUCFCS map prepared by Collier i~nvironmental Consultants, Inc. (CECI) has been utilized to determine the Project's potential panther habitat compensation requirement (Figure 3). Field verification regarding the FLUCFCS map's accuracy was outside this assessment's scope of services. LISTED SPE CIE, LITERATURE SEARCH Literature resources were consulted regarding documented listed species occurrences on or in the vicinity of the Project. The literature sources reviewed included Florida's Endangered Species, Threatened Species and Species of Special Concern, Official Lists;' Florida Atlas of Breeding Sites for Herons and Their Allies;' the Florida Panther Habitat Preservation Plan (14PP);3 the Landscape 'Florida Fish and Wildlife Conservation Commission. 2007. Florida's Endangered Species, Threatened Species and Species of Special Concern. Official Lists, Florida Fish and Wildlife Conservation Commission. Tallahassee, Florida. 'Runde, D.E., J.A. Gore, J.A. Hovis, M.S. Robson, and P.D. Southall. 1991, Florida Atlas of Breeding Sites for Herons and Their Allies, Update 1986 - 1989. Nongame Wildlife Program Technical Report No. 10. Florida Game and Fresh Water Fish Commission, Tallahassee, Florida. \ \orl clustcr011projccts\Projmts06106- 1097.000 North - south Corridor Study -East or CR_ 95f environment arireporsslLewis yarcel_RueDitigence.doc Page 4 of 12 Packet Page -325- 7/8/2014 11.C. Conservation Map for the Florida Panther 4 and the U.S. Fish and Wildlife Service (USFWS) database for recorded locations of the Florida panther, Florida black bear (Ursus americanus florldanus), bald eagle (Hallealus letrcocephalus), red - cockaded woodpecker (Picoides borealis) (RCW), and wading bird rookeries in Collier County. The database information for lire Florida panther is current to June 2007; the bald eagle information is current to September 2007; the wood stark (Mycleria amerieana) information is current through 2006; and the Florida black bear, wading bird rookeries, and the RCW information is current to 1999. Figure 4 shows the Florida Fish and Wildlife Conservation Commission (FWCC) database locations of listed species occurrences, including Florida panther telemetry points on or in the Project's vicinity. The Florida Atlas of Breeding Sites for Herons and Their Allies was referenced for the location of breeding colonies for both listed and non- listed wading birds including, but not limited to, the little blue heron (Egretta caerulea), tri- colored heron (Egretta tricolor), snowy egret (Egretta thrrla), white ibis (Eudocimus aluts), wood stork, and roseate spoonbill (Ajala ajaja), There were no breeding colonies located on or in the vicinity of the Project. The USFWS' Draft Standard Local Operating Procedures for Endangered Species (SLOPES) Wood Storkss recognizes a 30 kilometer (18.6 mile) zone surrounding a wood stork colony boundary as a core foraging area, According to the FWCC data, the Project is located within three wood stork rookeries (Colony Nos. 619018, 619310, and 619161). The rookeries are located approximately 12 and 13 miles north and 15 miles northeast of the Project, respectively (Figure 5). Compensation for impacts to wood stork habitat may be assessed during the regulatory review of the Project. A wood stork foraging analysis will be required to determjne if the Project will result in adverse impacts to the species. Typically, on -site wetland mitigation and/or the purchase of wetland mitigation credits may offset any adverse impacts to the species. The FWCC database for the Florida black bear documents a single occurrence in the northwest comer of the Project (Figure 4). The FWCC database for bald eagle nests shows no nests within the Project boundary or within 660± feet of the parcel. The National Bald Eagle Management Guidelines6 and state Bald Eagle Management Plan? recommend a 6601 foot buffer zone to an active or alternate eagle nest under most circumstances. The nearest documented bald eagle nest is approximately 2.0 miles southeast of the Project. The Project abuts the City Gate Development of Regional Impact (DRI) which contains two documented RCW locations and eight others are documented within 1.51 miles to the east of the site. There are no documented occurrences on the Project, according to the May 2002 and May 2006 RCW survey reports prepared by CECI. However, CECI reported in 2002 that "a cavity tree was discovered on or near the subject parcel." However, more recently, the May 2007 RCW report does not document the existence of a cavity tree on the Project. This is most likely due to the occurrence of several wild fires on (tie property. }Logan, Todd, Andrew C. Eller, Jr,, Ross Morrell, Donna Ruffner, and Jim Sewell. 1993. Florida Panther Habitat Preservation Plan South Florida Population. U.S. Fish and Wildlife Service; Gainesville, Florida. "Kautz, R., R. Kawula, T, kloctor, J. Comiskey, D. Jansen, D. Jennings, ). Kasbohm, F. Mazzolti, R. McBride, L. Richardson, K. Root. 2006. How much is enough? Landscape -scale conservation for the Florida panther. Biological Conservation, Volume 130, Issue 1, Pages 118 -133. 'USFWS. 2002. Draft Standard Local Operating Procedures for Endangered Species Wood Storks. South Florida Ecological Services Office. 'USFWS. 2007. National Bald Eagle Management Guidelines. 'FWCC. 2008. Bald Eagle Management Plan. i'Ori etusteMt projectslProjectsO6 \06•1087.000_Nodh- 5outh. Corridor_Study_East _ of CR 9511Envi ronmenta[ lreports ll.cwis -parcot_DucDiligcnce.doe Page 5 of 12 Packet Page -326- 7/8/2014 11.C. The FWCC Florida panther telemetry data documents numerous panther telemetry points within two miles of the Project. The Florida panther Landscape Conservation Map with an overlay of the Project is included as Figure 6. According to the map, the entire parcel is located within the primary zone. FLORIDA PANTHER HABITAT COMPENSATION ANALYSIS For purposes of this analysis, the listed species requiring the greatest habitat compensation was assessed to determine the listed species compensation requirements for the concept plan. This species is the Florida panther. The USFWS' panther habitat assessment method was utilized to determine the amount of potential Florida panther habitat that would be impacted by the proposed land uses on the parcel. The assessment calculates the number of panther habitat units (PHUs) required for compensation based on the land's vegetative cover types to be impacted and the panther zone the Project is located within. The proposed on-site panther habitat was assessed using the model adapted from Kautz el at! It should be noted that revised cover type values are pending and upon approval from the USFWS, may require revisions to this assessment. Based on CECl's FLUCFCS map, the Project's habitat impacts by FLUCFCS code and acreages are presented in Table 1, as seen previously within the Existing Conditions discussion, and below. Table la, FLUCFCS Summary FLUCFCS Code Description Approximate Acres ye 411 Pine Flatwoods _ l 14.59 424 Melaleuca 2.45 _ 4249 Meialeuca Drained _.. __. __. _ Cabbage Palm _ 7.10 r 428 2.97 6249M Melaleuca/Cypress, Pine, Cabba ye Palm, Drained 80.31 624H Pine /Cypress /Cabbage Palm 98.14 _ Total - _ _ 305.56 The vegetation types within the parcel are given a habitat suitability value of zero to ten based on the known preferred habitat types of the Florida panther. A score of zero would be applied to land uses such as development, roads, or open water. A score of ten would be applied to habitats such as hardwood forest or xeric oak scrub. The values are multiplied by the acreage of the habitat types to produce a preliminary PHU sum for the habitat type. A base ratio of 2.5 is then applied to this sum. The purpose for the base ratio is to provide for the protection of sufficient acreage of primary zone lands. Additionally, the USFWS applies a landscape multiplier of 1.0, 0.69, or 0.33 depending on the location of the project (i.e., primary zone, secondary zone, or other zone, respectively). Tito final functional value for the Project can be calculated as follows; Habitat Value x Acreage x Base Ratio x Landscape Multiplier = Panther Habitat Units The Florida Panther Effect Determination Key issued by the USFWS,9 states that projects resulting in a net increase of traffic into the Panther Focus Area may require additional habitat compensation. For 'Kautz of aL, op. cit. 'USFWS. 2007. Florida Panther Effect Delennination Key. U.S. Fish and Wildlife Service. South Florida Ecological Services Office. Vero Beach, Florida. 11Orl rlusterol %projects\Projeetso6106- 1087.000 North. South Conidor_Study.L+ast_ot CR 951lGnvironmentalVcpartstLewis _parcel DueDingence.doc Page 6 of 12 Packet Page -327- 7/8/2014 11. C. purposes of this analysis, the entire Project is considered to be directly impacted by the proposed concept plan due to the fragmentation of habitat. Tables 3 and 4 demonstrate the cover types, estimated exotic acreage, and cover type values used in this assessment. Table 3. Cover TN :nes with Breakdown of FLUCFCS Codes Cover Type FLUCFCS Codes Total Acrea re Cover Type Acreage Exotic Acreage Exotic Plants 424 9.55 - 9.55 Shrub Swam iBrush 428 _ 2.97 _ 2.23 0.74 flardwood/Pine Forest 6249M. 624H 178.45 112.24 66.21 Pine Forest 411 114.59 85.94 _ 28.65 Totals _ 305.SG 200.41 105.15 4Exotic coverage derived from FLUCFCS map provided by CBCI. Table 4. Cover Types and PHU Calculation Cover Type Habitat Suitability Value Acreage _ PHUS Exotic Plants 3 ____ 105.15 _ 315.45 11.15 Shrub Swam Brush _ 5 9 2.23 _ Hardwood/Pine Forest �- 112.24 1,010.16 Pine Forest �9 85.94 773.46 Totals 305.56 2,110.22 Table 5 below provides the final calculation of required PHU compensation for the proposed concept plan. Table 5. Total PHUs Required MITIGATION ESTIMATES i1'ETLAND WTIGATION AV ERNAT'IVES Mitigation for wetland impacts usually consists of restoration, enhancement, creation, or preservation of wetland and/or upland areas. In some cases, a combination of mitigation types is the most efficient and cost effective approach to offset adverse impacts resulting from the regulated activity. Under current SFWMD and ACOE rules and regulations, several options exist for both off -site and on -site mitigation. These options are described below. The following mitigation options satisfactorily compensate for the environmental impacts proposed by the development of these property parcels. 1. Wetland Preservation Mitigating wetland impacts using preservation of wetlands requires that land be placed under a conservation easement with deed restrictions limiting the development options available in the future. The amount of land needed for mitigation varies, on a case by case basis, based on the quality of habitat placed under the conservation easement compared to the quality of the habitat impacted. Wx1„etusterOl , projects Wrojecls06106.1087.000_North - Soulh_Corridor Study_East_of CR, 9$ I% EnvironmenlalUepods V.ewis.porect_DueDiligeneo.doe Page 7 of 12 Packet Page -328- Landscape PIIUs Required Panther Zone PHUS Base Ratio Multiplier for Compensation 2,110.22 - 2.50 1.00 5,275.55__ Primary Zone Total 5,275.55 MITIGATION ESTIMATES i1'ETLAND WTIGATION AV ERNAT'IVES Mitigation for wetland impacts usually consists of restoration, enhancement, creation, or preservation of wetland and/or upland areas. In some cases, a combination of mitigation types is the most efficient and cost effective approach to offset adverse impacts resulting from the regulated activity. Under current SFWMD and ACOE rules and regulations, several options exist for both off -site and on -site mitigation. These options are described below. The following mitigation options satisfactorily compensate for the environmental impacts proposed by the development of these property parcels. 1. Wetland Preservation Mitigating wetland impacts using preservation of wetlands requires that land be placed under a conservation easement with deed restrictions limiting the development options available in the future. The amount of land needed for mitigation varies, on a case by case basis, based on the quality of habitat placed under the conservation easement compared to the quality of the habitat impacted. Wx1„etusterOl , projects Wrojecls06106.1087.000_North - Soulh_Corridor Study_East_of CR, 9$ I% EnvironmenlalUepods V.ewis.porect_DueDiligeneo.doe Page 7 of 12 Packet Page -328- 7/8/2014 11.C. Collier County's concept plan calls for the on -site preservation of approximately 16 acres of uplands and six acres of wetlands within a roadway interchange infield. Due to the surrounding roadway development, this mitigation tract is not likely to be given large amounts of mitigation credit. However, it may provide some measurable mitigation relief, if the area is not utilized for stormwater treatment, ]it order for Collier County to utilize this wetland mitigation option for significant mitigation credit, it would need to offer an additional property, owned by Collier County, for preservation. 2. Creation/Restoration For creation of wetland systems, the 3FNVMD would require annual vegetative and hydrologic monitoring to ensure the success of the plantings for approximately 3 -5 years, Cost for restoration is usually lower than creation, but both vary considerably, depending on land costs, and the amount of grading and planting required. The hydrologic bypass system that the County Concept Plan proposes would likely fall under this category of mitigation. Some mitigation credit may be available, depending upon. the design of the flow way (i.e. depending on the amount of actual created wetland habitats along the now way, versus just an artificial canal design). However, It is anticipated that the actual hydrologic function of the flow way, connecting hydrology from north of the parcel to the CR 951 canal, would provide minimal mitigation lift. Instead, it would prevent the project from causing additional adverse secondary wetland impacts to downstream wetland systems and coastal estuaries, which may suffer from a decrease in adequate hydrology if the natural wetland flow way, proposed to be impacted by the landfill expansion, was not replaced in function by the proposed hydrologic bypass system. 3, Mitigation Banking A wetlands mitigation bank is a significant parcel of land, usually with both upland and wetland habitat, that has been restored, created, enhanced, and preserved, and which is then set aside to compensate for future conversions of wetlands for development activities. A wetland bank may be created when a government agency, a corporation, or a nonprofit organization undertakes such activities under a formal agreement and permit from the state and federal regulatory agencies. The value of a bank is determined by quantifying the wetland values restored or created in terms of "credits." These crcdifs are then sold and may be used as mitigation for development. Once credits have been purchased, the wetland mitigation requirements for the project have been satisfied. This project falls within the service area of three mitigation banks; Big Cypress Mitigation Batik, Corkscrew Regional Mitigation Bank, and Panther Island Mitigation Bank. Each of these banks can be used to mitigate for wetland impacts as well as for impacts to panther habitat. Credit costs at each mitigation bank are as follows: Table 6. Mitigation Bank Suminary Mitigation Bank Credit Tye Cost /Credit YHU's /Credit Cost1Add'1 PHUs Big Cypress Mitigation Bank WRAP $60,000 8.96 $2,000 Corkscrew Regional Mitigation Bank UMAM $75,000 14 $2,000 Panther island Mitigation Bank WRAP � $6I,000 25.6 $1,500 W il_ clustct011projccts \Projectst16106 -1 i1g7.000_Korttt- south Corridor Study Last_or CR_95llEnvitonmentall reports !Lewis _parect_DucDiligence.doc Page 8 of 12 Packet Page -329- 7/8/2014 11.C. For the purposes of this evaluation, Mitigation Banking is the option which will be presented, as it is the only one that can be accurately cost - estimated with this level of preliminary planning and analyses. P,4NTHER HAMTAT ARTICATION ALTERNATIVES A panther habitat compensation option available to Collier County government departments, such as the Department of Transportation, is the use of properties purchased through Conservation Collier tax funds. The property will need to be located within the panther primary zone and additional assessments will be needed to determine the site's PHU compensation value, prior to placing a potential cost estimate on such an option. Another alternative is mitigation banking. As with wetland nutigation, purchase of credits can offset impacts to panther habitat. For the purposes of this evaluation, this is the option which will be presented, as it is the only one that can be accurately cost - estimated with ibis level of preliminary planning and analyses. WETLRND AND PANTIIER HABITAT COMPENSATION COST ESTIMATC With (lie different costs per credit, the credit variation between WRAP and UMAM assessments, and the different amounts of PHU value associated with each mitigation credit, an analysis of each mitigation bank was performed to determine which would provide the most cost effective solution for this project. For UMAM banks, the number of credits required to offset wetland impacts is equal to the Functional Loss, as determined by UMAM calculations. For WRAP banks, a different set of evaluations, ratios, and calculations would need to be used. But for the purposes of estimating, through years of comparing WRAP and UMAM scores, we have applied a conservative estimate of 1.5 WRAP credits required for every UMAM credit. This ratio will be used when calculating wetland mitigation at WRAP based banks. Bit. Cypress Mitigation Bank Welland Mitigation 1.5 WRAP ratio x 44.47 Functional Loss = 66.70 credits required 66.70 credits x $60,000 /credit = $4,002,300.00 Panrhei• Mitigation 66.70 credits (purchased for wetlands) x 8.96 PHUs /credit = 597.63 PHUs credit after wetlands 5,275.55 PI Us required -- 597.63 purchased = 4,677.92 PHUs remaining to be purchased $2,000/PHU x 4,677.92 PHUs required = $9,355,840.00 Total Cost Estimate at Big Cypress Mitigation Batik = $13,358,140.00 llod_clustoro l\ projects lProjccts06\06.1087.000kNonh- South Condor Study,East of CR_9511Crteironmcnta]VcportsU Lewis _parccl_DucDiligcnec.dec Page 9 of 12 Packet Page -330- 7/8/2014 11.C. Corkscrew Regional Mitigation Bank Weiland Mitigation 44.47 Functional Loss = 44,47 credits required 44,47 credits x $75,000 /credit =$3,335,250.00 Panther Mitigation 44.47 credits (purchased for wetlands) x 14 PHUs /credit = 622.58 P1-1Us credit after wetlands 5,275.55 PHUs required — 622.58 purchased = 4,652.97 PHUs remaining to be purchased $2,000/PHU x 4,652.97 PHUs required = $9,305,940.00 Total Cost Estimate at Corkscrew Regional Mitigation Bank = $12,641,190.00 Panther Island Miduation Bank Welland Mitigation 1.5 WRAP ratio x 44.47 Functional Loss = 66.70 credits required 66.70 credits x $61,000 /credit = $4,068,700.00 Panther Mitigation 66.70 credits (purchased for wetlands) x 25.6 PHUs /credit = 1,707.52 PHUs credit after wetlands 5,275.55 PHUs required — 1,707.52 purchased = 3,568.03 PHUs remaining to be purchased $ t,500/PHU x 3,568.03 PHUs required = $5,352,045.00 Total Cost Estimate at Big Cypress Mitigation Bank = $9,420,745,00 The Florida Panther Conservation Bank is a panther habitat mitigation bank, but does not have wetland mitigation credits. Their current cost per PHU is $2,000.00, however, they are willing to reduce their price to $1,500.00 per PHU for projects with PHU requirements greater than 2,000, according to recent conversations with bank representatives. Therefore, this panther habitat bank could provide competitive pricing with Panther Island Mitigation Bank, for PHUs only, aller the wetland mitigation requirement had been satisfied. 110d ciuster011projectslprojcc ls06106.1087.000 North - soulh Corridor —Study yast_of CR 9511ErnvirenmentallrepDdsiLewis _parcct_DueDiligance,do; Page 10 of 12 Packet Page -331- 7/8/2014 11.C. PERMITTING CONSIDERATIONS The development of this parcel of property will require permits from the following state and federal regulating agencies: State Government: • South Florida Water Management District ( SFWMD) Preliminary estimates of wetland impacts, assuming complete development of the property parcels, are approximately 95.6 acres. For a project with wetland impacts greater than 1.0 acre, an Individual Environmental Resource Permit (ERP) will be required. SFWMD requires a non - refundable application fee based upon the total project acreage, The SFWMD application fee schedule for wetland impacts on projects between 100 acres and 640 acres is $7,750.00 • Florida Fish and Wildlife Conservation Commission (FFWCC) Consultation with the FWCC will also be required as part of the South Florida Water Management District and local development approval processes • Florida Department of Environmental Protection (FDEP) For projects that propose to disturb more than one acre of soil during construction, a National Pollutant Discharge Eliminated System (NPDES) permit will be required. For a project size larger (hair five acres, there is a $400.00 application fee associated with this permit. Federal eovernment • United States Army Corp of Engineering (ACOE) A Section 404 Individual Dredge and Fill permit will be required for this project, as the proposed wetland impacts are greater than 0.5 acres. ACOE and SFWMD permits are issued from a joint application submitted to both agencies. ACOE does not charge additional application fees above those charged by SFWMD. • United States Fish and Wildlife Service (USFWS) ALOE will coordinate with USFWS on federally protected species, through formal Section 7 Consultation for impacts to threatened and endangered species habitat.. USFWS will provide a Biological Opinion regarding the potential project effect to these listed species. These species include but are not limited to the Florida panther and the wood stork. CONCLUSION Environmental impacts associated with the proposed project could be substantial. Impacts to wetlands, as well as federally protected species, such as the Florida panther and wood stork, will require mitigation to offset these adverse impacts. Multiple mitigation alternatives have been described. It is important to reiterate that a successful mitigation plan for Collier County may involve the implementation of multiple mitigation options, used together to completely offset these environmental impacts. As an example, Collier County may get some mitigation credit for minimal on -site preservation, construction of the hydrologic bypass system, and potentially the enhancement and preservation of other off -site Collier County parcels. If these mitigation options provided some mitigation "lift," but not enough to completely offset the project impacts, then purchase of mitigation credits could be utilized to make up the difference. While the use of multiple mitigation measures is a likely scenario for Collier County, providing cost estimates with the amount of known information at this time was not possible. So to provide the County with a tangible mitigation cost estimate, multiple cost estimates were derived from the exclusive use of mitigation banking. The most efficient t1Qtt _ctustc(01%prnjectslProjccts06 106 - 1087.000 ^Nodh• Soul h Corridor 5tudy_East_of CR_951tEnvironmentalWoports \Lewis _parcei_DueDiligence.doc Page I t of 17 Packet Page -332- 7/8/2014 11.C. and least expensive mitigation banking alternative was to purchase wettand credits and additional PHUs from Panther Island Mitigation Bank, at a total project mitigation cost of $9,420,745.00. This provides the County with a conservative estimate oi'potential mitigation costs, while acknowledging that there may be additional mitigation alternatives that the County could implement, during the planning and permitting phase of this project, which could potentially reduce mitigation costs. Thank you for the opportunity to provide these environmental analyses for the County's potential property acquisition of the Lewis parcel. We look forward to continuing our work with the County on this project, and welcome any questions or comments you may have, regarding this report. Sincerely, Dyer, Riddle, Mills & Precourt, lnc. Dou lailA, Skurski MS PWS g r Environmental Scientist Ul Ecological & Environmental Services CC: Jason Hunt, Passerella & Assoc. 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PANTHER ZONES WITH PANTHER FOCUS AREA WALLY LEWIS PARCEL Packet Page -339- 7/8/2014 11.C. mmlbb,PASSARELLA w & ASSOCIATES d w` 7/8/2014 11.C. Real Property Management 4/9/2014 Thomas Tippett, MAI T.A. Tippett, Inc 1061 Collier Center Way#3, Naples FL 34110 RE: NOTICE -TO- PROCEED FOR 305 acre parcel adjacent to landfill Purchase Order No. 4500150246 Collier County Project No. Landfill Expansion Dear Mr. Tippett, MAI This letter serves as Collier County's official NOTICE TO PROCEED (NTP) to your Company to commence with the above referenced project. This NTP is issued pursuant to Contract # (N /A) or Purchase Order #4500150246. The purchase order number is shown above and a copy of the P.O. is enclosed. This NTP is limited to the scope of work for: Landfill Expansion Project for the lump sum price of $2,000 OR Time and Materials not to exceed $2,000. Please include the purchase order number, contract number and project number on each invoice to facilitate the payment process. Commencement date for the services associated herewith shall be considered to be 4/09/2014. The substantial / draft completion date shall be considered to be 4/30/2014. Final completion of all work shall be considered to be 5/08/2014 with (3) copies of the appraisal report. If you have any questions, please contact me. Sincerely, Roosevelt Leonard Real Estate Appraiser Packet Page -340- 7/8/2014 11. C. Send all Invoices to: Collier County Board of County Commissioners Collier County Board of County Commissioners Purchasing Department Attn-. Accounts Payable Phone: 239 - 252 -8407 3299 Tamiami Tri E Ste 700 Fax: 239- 732.0844 Naples FL 34112 -5749 Tax Exempt: 85- 8015966531C -1 OR email to: bccapclerk @collierclerk.com Vendor# 123912 THOMAS A TIPPETT TA TIPPETT INC 1061 COLLIER CENTER WAY, #3 NAPLES FL 34110 Please deliver to: FACILITIES MANAGEMENT 3335 TAMIAMI TRL E, STE 101 NAPLES FL 34112 -5356 Terms of Payment Net 30 Days Purchase Order number must appear on all related correspondence, shipping papers and invoices: Purchase order PO Number 4500150246 Date 04/09/2014 Contact Person TECMAdmin Delivery Date: 0913012014 Currency USD Uem Material Description Order Qfy unit Price Per Unit Net Value 00010 Appraisal 2,000 each 1.00 2,000.00 313- 163673 - 631600 - 60129.3 Appraisal 20 -30 day delivery Project: Appraisal for parcel adjacent to Collier County Landfill Folio 00298480005 36 49 26 BEG NW CNR SEC 36 E 2647.82DT, S 5089.75FT, NWLY ALG ARC OF CUR CONC TO NE 2381.11FT, NWLY + SWLY ALG ARC OF CUR TO S 305.68FT, N 1 DEG W2069.96 FT, N 2673.79FT TO POB Total net value excl. tax USD 2,000.00 VENDOR Terms and Conditions The VENDOR agrees to comply with all Purchase Order Terms and Conditions as outlined on the Collier County Purchasing Internet site: http :l /www.coiliergov,netlindex.aspx ?page =762 (revision date 01/2212008), including delivery and payment terms. Further the VENDOR agrees to: Provide goods and services outlined in this Purchase Order with the prices, terms, delivery method and specifications listed above. Notify department Immediately if order fulfillment cannot occur as specified. Send all invoices to: Collier County Board of County Commissioners Attn: Accounts Payable 3299 Tamiami Trl E Ste 700 Naples FL 34112 -5749 OR email to: bccapclerk @coliierclerk.com The Purchase Order is authorized under direction of Collier County Board of County Commissioners by. Printed 04/092014 @ 12.34:17 Joanne Markiewicz, General Services i Purchasing Director 313 - 16367363160460129, 3 Packet Page -341- Page 1 of 1 7/8/2014 11. C . Packet Page -342-