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Agenda 05/12/2020 Item #11C (Proposed HHH Ranch acquisition)05/12/2020 EXECUTIVE SUMMARY Recommendation to accept the findings of the two independent appraisals and provide direction on the potential acquisition of the 967 +/- acres located three miles east of Collier Boulevard and directly north of Alligator Alley known as the HHH Ranch owned by Francis and Mary Hussey, et al. OBJECTIVE: To evaluate the findings of the independent appraisals, consider the acquisition value of the HHH Ranch, and respond to the term letter submitted. CONSIDERATIONS: The land use associated with HHH Ranch property has been a point of contention since the adoption of the Rural Fringe Mixed Use District (RFMUD) in 2002. In 2008, the owners of HHH Ranch filed suit against Collier County seeking compensation under the Bert J. Harris Private Property Rights Act, § 70.001, Fla. Stat. (2007) (the Harris Act), and on a theory of inverse condemnation. In 2013, Collier County settled the case and by agreement amended the land use to allow for both sending and receiving lands. The agreement is included for reference outlining the terms. Since that time, the property has been actively marketed with various levels of interest but has not finalized a sale. The property is access challenged and would be expected to go through lengthy and cumbersome permitting process to take advantage of the entitlements. Additionally, the density allowed by the receiving area through the Transfer of Development Rights (TDR) process is cost prohibitive to develop without adequate infrastructure (roads, water, and sewer) readily available. The County has had numerous conversations with representatives of the HHH Ranch over the years. In May of 2017, the County received an offer to sell the property for $75,000,000. The justification by the seller for the high valuation was based on the value of the aggregate. The County solicited two independent appraisals and the average justified valuation was $8,200,000. On December 10, 2017, Agenda Item 11C (attached), the Board rejected the offer. On March 10, 2020, Agenda Item 11D, a Term Letter was presented for the property outlining the terms and conditions for the proposed sale with an asking price of $11,000,000 (attached). The Board authorized the following: • Chairman to sign the Letter of Interest • Obtain appraisal updates for the property • County Manager to negotiate terms and conditions • Bring back a future agenda item with terms and conditions for Board consideration The property, as depicted on the attached Location Map, is comprised of 967 +/- acres with 583 +/- acres designated as RFMUD Receiving Lands and 384 +/- acres designed as RFMUD Sending Lands. Appraisal updates were obtained establishing the valuation for the properties. The first appraisal update is dated April 13, 2020 by Carlson Norris & Associates and valued the property at $8,200,000. The second appraisal update is dated April 2, 2020 by Maxwell Hendry Simmons, Real Estate Appraisers & Consultants and valued the property at $8,900,000. Collier County's in-house Sr. Real Estate Appraiser prepared an appraisal report review and determined the average value of both appraisals is $8,550,000 and would recommend acquisition for that price. On May 1, 2020, the County Manager’s office and staff discussed the valuation with the seller’s representative. The representative would not agree to sell the property for the updated appraisal value. They have responded with an updated offer (attached) at a valuation of $10,000,000 including a 11.C Packet Pg. 38 05/12/2020 justification, in their opinion, for the increased value. As the Board considers the facts above and the prior history included in the backup, there are intangibles that were appropriately not factored into the appraisals as they represent potential offsite benefits to the County. The County’s Long-Range Transportation Plan (LRTP) contemplates the extension of Wilson Boulevard as identified and approved by the Board through the Wilson-Benfield Corridor study (map attached). If this property is acquired, staff would work with the adjacent property owners to evaluate the relocation of the roadway to minimize the environmental impacts, reduce right of way acquisition, and lower the construction cost. Additionally, the relocated roadway would reduce the mitigation cost and potentially increase the opportunity for incorporating a water quality component to the project. These options would be pursued through an updated study and amendment to the LRTP. Finally, the funding for this acquisition could potentially come from predominantly non-Ad Valorem sources. The voter approved Sales Surtax included a $20,000,000 Community Land Trust allocation for affordable housing which could be applied, at some level, against the property sale at the appropriate time. Roadway impact fees would be used for the direct purchase of the right of way and potentially for a portion of the valuation attributed to the water management and reduction in offsite mitigation. There is also nominal value for the water treatment system and real value from the aggregate recovered from the future lake excavation. These factors give the Board justification to evaluate the appraisals and the counteroffer from several perspectives. Currently, the Board has several options. Direct the County Manager or his designee to: 1. Notify the seller that the Board is only willing to pay the average of the two appraisals ($8,550,000) and pursue an executed purchase and sale agreement. 2. Accept the counteroffer ($10,000,000) and authorize the Chairman to execute a purchase and sale agreement. Note: This option requires a super majority of the Board 3. Continue the dialogue with the seller and try and negotiate a further reduction and bring back a proposed purchase and sale agreement. FISCAL IMPACT: The variety of potential end land uses for this site and the multiple sources of funds which could pay down debt service lend itself to a competitive taxable bank loan like the financing structure in place to borrow $28 million for acquisition of the Golden Gate Golf course. The current financial market does not lend itself to the issuance of debt both in terms of potential market interest and the cost of borrowing. This is primarily due to financial market uncertainty associated with the COVID 19 pandemic. While the use of a portion of dollars set aside for workforce housing within the bucket of local option infrastructure sales tax dollars is mentioned as a source of repayment, timing indicates that the property would be purchased well before any decisions on end land use are known. This premise also applies to potential use of impact fees and any other repayment sources. Therefore, the taxable bank loan with a pledge of the County’s legally available non ad-valorem taxes is recommended as the financing source. Without knowing the full extent of general governmental revenue reductions, the Board is well advised to postpone any debt issuance until market conditions become more conducive to financing and the extent of general sales tax, state revenue sharing, and local option infrastructure sales tax reductions are known. Right now, it is estimated that at least $8.5 million in half cent sales tax collections and $3.0 million in state shared revenues will be lost due to shut down of the local economy. Clarity on the debt market 11.C Packet Pg. 39 05/12/2020 should be known within 120 days. The Office of Management and Budget will have a preliminary look at general governmental revenue loss as part of the June Budget Workshop and a clearer view in August ahead of September public budget hearings. If the Board finds that the public interest is best served by pursuing this property acquisition now, an internal advance from general governmental sources is available with repayment of the advance from borrowed funds within six (6) months. Budget amendments would be required and detailed for approval by the Board at the time a purchase contract is considered. LEGAL CONSIDERATIONS: This item has been approved for form and legality and requires majority vote for approval. -JAK GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan. RECOMMENDATION: That the Board reviews the information provided and provides direction to the County Manager or his designee. Further, should the Board wish to move forward with a designated purchase amount, authorize the Chairman and County Manager or his designee to: 1. Authorize the Chairman to execute and Agreement for Sale and Purchase once approved by the County Attorney. 2. Authorize the Chairman to execute the Agreement and any additional closing documents, and accept the Warranty Deed, once approved by the County Attorney’s Office. 3. Authorize staff to prepare related vouchers and backup for warrants for payment. 4. Authorize necessary budget amendments. 5. Direct the County Manager or his designee to proceed to acquire the Property and to follow all appropriate closing procedures, to acquire and obtain clear title to the Property, and to record any and all necessary documents (once approved by the County Attorney’s Office) in the Public Records of Collier County, Florida. Prepared By: Nick Casalanguida, Deputy County Manager ATTACHMENT(S) 1. Settlement Agreement - recorded (PDF) 2. Hussey December 2017 Item 11C (PDF) 3. Term Letter County 03-02-20 (PDF) 4. Property Location (PNG) 5. [Linked] Carlson Norris Appraisal 2020 (PDF) 6. [Linked] Maxwell Hendry Simmons Apprisal 2020 (PDF) 7. Appraisal Review HHH Ranch Roosevelt (PDF) 8. Term Letter County 05-05-20 (PDF) 9. Property Location with LRTP (PNG) 10. Agreement for Sale and Purchase (DOC) 11.C Packet Pg. 40 05/12/2020 COLLIER COUNTY Board of County Commissioners Item Number: 11.C Doc ID: 12342 Item Summary: Recommendation to accept the findings of the two independent appraisals and provide direction on the potential acquisition of the 967 +/- acres located three miles east of Collier Boulevard and directly north of Alligator Alley known as the HHH Ranch owned by Francis and Mary Hussey, et al. (Nick Casalanguida, Deputy County Manager) Meeting Date: 05/12/2020 Prepared by: Title: Operations Analyst – County Manager's Office Name: Geoffrey Willig 05/05/2020 5:08 PM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 05/05/2020 5:08 PM Approved By: Review: County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/06/2020 7:47 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 05/06/2020 11:17 AM Board of County Commissioners MaryJo Brock Meeting Pending 05/12/2020 9:00 AM 11.C Packet Pg. 41 11.C.1 Packet Pg. 42 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 43 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 44 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 45 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 46 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 47 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 48 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 49 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 50 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 51 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 52 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 53 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 54 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 55 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 56 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 57 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 58 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 59 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 60 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 61 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 11.C.1 Packet Pg. 62 Attachment: Settlement Agreement - recorded (12342 : HHH Ranch - Hussey) 10/10/2017 EXECUTIVE SUMMARY Recommendation to reiect offer from Winchester Lakes Corporation and Francis and Mary Hussey to enter into a public-private partnership with the County for the property located in Sections 29 and 32, Township 49S, Range 27E. (Toni Mott, Mrnag€r - Property Acquisition & Construcdon Menagement, Faclllties Management Dlvlslon) OBJECTIVE: To provide relevant information regarding offer received liom Winchester Lakes Corporation and Francis and Mary Hussey (Scllcr) for thc salc of 962 +/- acres (known as HHH Ranch) located thrte miles east of Collier Boulevard and directly north of Alligator Alley and to recommend that the offer be rejected at the current sales prise of975,000,000, inclusive ofa public-private partn€rship. CONSIDERATION: On May 8, 2017, an €mail and prosp€ctus was received from Joseph Bonness, President of Winchester Lakes Corporation on behalf of that corporation and Dr. and Mn. Hussey. A copy of the email and the prospectus is attached. The potential ofler for sale was not contingent upon a public-private partnership between Collier County and Winchester Lakes for mining activities. At that time, no purchase price was provided. At the May 23,2017 Board meeting, staff was provided direction under Agenda ltem l lD to obtain two appraisals and also evaluate the pubtic-private partnership proposal. The details ofthe partnership are as follows: . Collier County could either wholly or partially pay for lhe purchase ofthe HHH Ranch.o Winchester Lakes, Inc. would enter into an excavalion/Partnership agreement with the County to:o Require the County to have all permits in place necessary for mining. o Excavate a minimum of 125 acres of property producing l0 million tons of fill and lime rock materials. o Provide a royalty or lease for all materials sold to Collier County as payment for the excavation. o Establish their exclusive rights to €xcavation and sublease plant sites for Asphalt, Concrete and Recycling plants. o Sale of the matenals from the excavation and manufacturing plants would produce lease payments to pay for the land purchase. o Sever Transfer of Development Rights (TDR) and be retained by the Seller (approximate savings to purchase price $3,926,000) o Potential future expansion of mining area. A self-managed team was convened to complete a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis on the proposal to explore the pros and cons ofsuch an acquisition. At the June 12, 2017, Conservation Collier Land Acquisihon Advisory Committee, the committee received a property nomination involving thc propcrty with an approximate asking price of$75,000,000. The Committee unanimously agreed to move the application forward in the process. Based on Board direction, two appraisals were comrnissioned from Maxweli-Hendry-Simmons Real Estate Appraisers & Consultants and Carlson, Norris and Associates, Inc. Both prepared a valuation and determined a fair market valuation of $8,200,000 for the land value. Copies of the valuation report arc attached for Board review. In addition to the land value, Collier County's In-House Rea[ Eslate Appraiser prepared valued the mining component at S25,480,000 at a drilling depth of 35 feet, which includes the value of the land. A second mining valuation in the amount of $39,600,000 was derived from the income approach. Copies of the valuations are attached for reference. The valuations didn't provide an adjustment for or take into consideration the cost of mitigation required for the development of the property or remediation that may be necessary due to the clearing that has occurred for the agricultural uses. Additionally, the comparable properties used in the appraisal consisted of lands that have varying 11.C.2 Packet Pg. 63 Attachment: Hussey December 2017 Item 11C (12342 : HHH Ranch - Hussey) tolt0t2017 degrees of environmental and development permits and approvals in place. By comparison, the subject property has no permits in place. Acquisition of the property could provide a number of future public benefits such as a source for road material and fill for future projects for Collier County as well as the Florida Department of Transportation or other unidentified County uses. In addition to the potential use of the fill material, etc. from the northern portion of the property, there may be a potential to utilize the Sending Lands portion for on-site mitigation as an offset to the overall mitigattion costs, or possibly the permitting ofthe property as a listed species mitigation bank that could also benefit County projects. Investigation of these potentials would require additional funding and time to determine. However, the requested sales price does not appear to take into account the potential for costs associated with environmental mitigation and/or remediaiion and obtaining the necessary development permits - which includes at a minimum conditional use approval through a public hearing process. With no entitlemcnts or permits in place, any buyer must consider the cost, and uncertainty, of obtaining these permits. Furthermore, obtaining permits will take a considerabte amount of time and the property lacks infrastructure necessary for development (roads, water, sewer, electric, etc.). Based on current funding and the high cost ofentitlements for any future development ofthe property, and uncertainty in obtaining entitlements for commercial excavation, staff believes the purchase price of $75,000,000, or combination of public-private partnership to come to the amount requested by thi seller, is too high. Based on the delta between the proposal and the appraisals, staff is recommending the offer be rejected. Future needs by transportation or other county departments may warrant further analysis should the sales price be adjusted downward accordingly. Note: Staff did not have the authority to enter into negotiations or make a counter offer. Staff is r€commending rejecting this offer as submitted but does recognize that under the right conditions and terms, acquiring this property may add value and support the County's goals and objectives. FISCAL IMPACT: There is no fiscal i[U,act associated with this item. GRowrIr MANAGEMENT IMPACT: No growth management impact associated with this item, LEGAL cONSTDERATTONS: This item has been reviewed by the county Attorney, raises no legal issues, and requires majority vote for approval. -JAK RECOMMEI\{DATION: That the Board rejects the offer and authorizes the County Manager or his designee to noti$ the Seller that acquisition in total at the requested price or public-private partnership is not supported by available data at this time. PRtrPARED BY: Trinity Scott, Capital Pmject planning, knpact Fees and program Management Division, Grovrth Management Departnent ATTACIIMENT(S) l. HHH Prospectus - May 8 2017 (PDF) 2. SWOT Analysis (002) (PmX) 3.[Linked]MaxwellHendryappraisal (PDF) 4. [Linked]Carlson Norris Appraisal (PDF) 5. [Linked]ln-house appraiser Hussey 952 acres (pDF) 6. LOCATTON MAP (DOCX) 11.C.2 Packet Pg. 64 Attachment: Hussey December 2017 Item 11C (12342 : HHH Ranch - Hussey) 10/10/2017 COLLIER COIJNTY Board of County Commissioners ltem Number:1l C Doc ID:3811 1tem Summary: Rcconl■lcndation to reJcct offcr hm winchcstcr Lakes Corporation and Francis and May Husscy to enter into a pubhc PHvate partnership宙 th■le County for the propcr,located in Scctions 29 and 32, Towllship 49S, Rangc 27E (Toni MO■, Manager ― Propcny Acquisition & Construction Managcmcnt,Facilities Managcmcnt Di宙 sion) Meetlng Date: 10/10/2017 Prepared by: Title:Mallager―Propeゥ Acquisition&Const M―Facilities Management Nalnc:Toni Mott 09/27/20173:45 PM Submitted by: Title:Division Dircctor_Facilities Mgnt―Facilities Managemcnt Nalnc:Dcntlis Linguidi 09/27/20173:45 PM Approved By: Review: Facilities Manag6ment Public Utilitbs Department Public Utilitbs Departnent Solid and Hazsrdous Waste Public Utilitiss Operations Supporl Public Utilitios Department Publio Ulililbs D€partrnent Coonty Altome/s Ofico County Altome/s Ofnce Ollice of Management and Budg€t Budg€t and Managornont Oftce Conty Msnage/s OficB Board of County Commissioners Donnis Unguidi Margie Hapke Heath€r Bustos Dan Rodriguez Joseph Bollono luargie Hapke Hoathor Buslo6 Jennif€r Bolpsdio Scott Teach Valerie Fleming Ma* lsackson Nick Casalanguida MaryJo Brock Additional Revior,lBr Level 1 Division Reviewer Addilional Revievrer Additional Rsvion€r Additional Reviet'iBr Additioflal RsvietlBr Level 2 Oivision Adminislrator Review Lovol 2 Attomey o, Rscod R€vbw Lovol 3 County Attorney's Of,ic€ Roview Level 3 OMB Gatekosper Rovievi, Additional Revie\./er Lsvsl 4 County Manager Review Mooting Pending Completod 09/27/20174:51 PM C●mpleted C19720/201710:32 AM Skipped 09/23/2017 1 51 PM Completed o9/23/20172:12 PM Completed 09/297201710:34 AM Compieted l19729′201710:56 AM Skipped 09/29/201712:08 PM Completed o9/29/20173:19 PM Completed 09720/20173:35 PM Completed lo7022017 11:04 AM Completed lα 02/201711:46 AM Compieted 10/02/20174:09 PM 10/10/2017 9100 AM 11.C.2 Packet Pg. 65 Attachment: Hussey December 2017 Item 11C (12342 : HHH Ranch - Hussey) MottToni Frgm: Joe Bonn69 lll <Jo€Bonncaslll@bettcnoads.net>S.nt Monday, May E, 2017 10:52 AMTo: MottToniSubjrct HHH proposal Attlchmant : HHH Ranch park.ppu Dear Toni The HHH Ranch is proposed to be purchased by Collier County for quarry and future park use. The land ls located three miles east of Collier Blvd and directly nonh of Alligator Alley. HHH Ranch is composed of 952+/- acres with 578 acres designated as RFMUD Receiving Lands and 384 acres RFMUD Sending lands. The land desiSnation is the results of a settlement agreement between Collier County defendant and Francls & Mary pat Hussey and Winchester Lakes lnc. as Plaintiffs. It is envisioned that Collier County could purchase the ranch and the purchase repaid by excavation of ponions of the recelvin8 land by Winchester Lakes lnc. The ranch has a vast reserve of high quality lime stone that will produce FDOT quality aSSreSates and base rock materials. Mined to the maximum extent (8O% coverage) could produce over 37 million cubic yards (50 million tons) of material. As owneR of the Ranch Collier County would make the decislon of what wlll be the best ratio of excavated lake to residual park lands. Of benefit to the County is securang materials that will be needed for infrastructure construction in the future and residual lands will provide a lake based park, The Ranch is closely located to maior traffic corridors (951 & F75) and will be on future a long ranBe plan corrldor (wilson Ext). The lake or lakes will provide recreation, flood water storage as well as reservoir for water recharge and usage. The lake will also be a wild life attractor. Ouring the recent North Belle Mead wild fire, the Ranch and cleared pastures provided a dearly needed llre break that helped deaden the hst moving wild fires from the east. A lar6e body ofwater will provide this buffer in the future with this proposal. The Ranch has habitat for endangered species such as Rcws, Panthers and Gopher Tonoise that collier would preserve and enhance. The park land outside of mine lake will contain 500-700 or more acres. lake size is dependent on design. The land is repaid by a combination of Mine Royalties, Plant Site Leases and TDRS 20 - 50 million tons Royalties 10- 25 milllon ton/cy product from plant sites 307 TDRS Alternate uses and value of the land is for mininS and housing development 11.C.2 Packet Pg. 66 Attachment: Hussey December 2017 Item 11C (12342 : HHH Ranch - Hussey) if you need further explanation please ca∥ Joe Bonness 239 825 4821 EXHIBrr B_HHHRthR"du噂 lH3 :.Wtth―困t TO―hiP 49,陶り2■ "“ l“ …摯幡〕欝鳥濡辮 f榜聯』鯨鱗 SW ir40日 E:r40FSW:r40FSW iた ,E12 0FSW:r4針 SW:周 OF SE:」4, ¨-0294927 SEl“OFSE14 0FNE∥ …294927E12 0FSW:r40F SW14 0F NElJ4 0-03 "4927■12 0P SElr4 0F駆 :r40F MVi“+W12 0F SWir4 0F SWir4 0F NEl“ ― m4294927W12 0FSWi“OFSWV4 0F SEl“5AC.OR 1342,G H29 …294927 El″OF SElr4 0P SEI「40FSヽV:r45AC.OR:3宅 P090‐勁 2 ‐ ―壽 “ Orい Ⅲ2T_19Щ ョ嗜027巨 E CllBlT B - Httrl iraci Sco&S t-rdt l. Tlr Sorbm rt srl of Sc.do.r f2, Toqdh ag Sodr, tqc2? Ed., h1gd cro?r rry ht tr rtlt pvicly &t for tarn.r ritrr of ,}rt 11.C.2 Packet Pg. 67 Attachment: Hussey December 2017 Item 11C (12342 : HHH Ranch - Hussey) 11.C.3 Packet Pg. 68 Attachment: Term Letter County 03-02-20 (12342 : HHH Ranch - Hussey) 11.C.3 Packet Pg. 69 Attachment: Term Letter County 03-02-20 (12342 : HHH Ranch - Hussey) 11.C.4 Packet Pg. 70 Attachment: Property Location (12342 : HHH Ranch - Hussey) Appraisal Review Report r-- .t 11.C.7 Packet Pg. 71 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) Information provided by the listing agent for the HHH Ranch (no opinion given) Ha{ n]dr ls a 967.08r .(]e poputy loated wlthln the ftrnl Fdnge MH t se dktlcl d Colllcr County, Jl,st 3 mll€5 ea6t d CR 951, Gly"n thc unlque charactrrlsdcs of thts FoFty, . yrlety of potsrllal ftiturc 16e5 odsq f|(hjdlng rcsld€n0rldeEloFn€nt mln- h9 or a omblnaoon of bd,l. Th€ FoFrV lndudcr 589.0lr+ a(]es d receMng hnds rnd 37E1 e]EE of s€Idhg landr Ite sendng lands w{l generete rppftxF ffidy 3mIDB (.6$rnlng a r.E of 3 to l). Afuturc Fope y own- e' wlll hart tine pr15 to n(elv€ the earty entsy bonusTDB, Tte 5€9.0Et tcelylng .Crei hrve . b$e denrity of I I 5 unlts" It the TDB re added, appruln tely 342 resld€ntlal unlB cqJld be bullton tfie recCvlng lan&. Th€countyvrfllh e 180 fuetbr ro.d rlght-of+4, m the sar{r bor-. der, abosl 223 .(r€s ftat wlll drop t E rboy! IIX numbers sltghtly. ln exhrnge br the rlght-of-wey PIoperty, tlp osner uill r€(elv€ 555,795 h to.d hp:ct fte cedlts, wlll trae the rlght b hayc turo th-lr$ onb Ur.t ro.d and wlll ]sbh densty/TDR dghB ltom the l.nd d€dlotloo. 85ed on ddlllng ]€porE (dnpleEd ln 2003 .nd 20lZ soll tEst bodngE it deptlE up to 'l0O feet hird hard llmerlon€ hmatbll at @rs frcm 15 to 55 feet below grade. nB could be uoltred rs crush IlIlGr(I rordyr4, b.se mrterlll Th€re € an ellm.H 55 mllllon b(6 of ro(k and sand undedyhg thb Fopelty (a r.port ls avdhue upon requ6t). Earth mlnlng ls. coridnbrt.l u5€ on the.Eceirhg rrerge. FolloF lrE the mlnlng and .edmatloo of tre p{operty, a tr.dftbn l ree Identlal derplopm€nt cqJld Hlow yrlth lat€ ylrw end pms€ e lots. Thts deyelognent stategy ha5 been emplolrd suc€sfJly 6t rn y ye.rs ln Southwe5t tb.lda, and Htfl.l Ranch B !, r ncxt op portunlty to crE'ate a lastlng sorJre of lmom€ de ved ftom ettlE, mlnlng nndentld d€velopfipnt o( boh. A5 . resdt of a estudy of rural Lndt Collts? County statr ls recom- mendlng . martnlm denslty d 7 du/aclE br lhe rural vlllage oBlon and 2 dula<n br lhe dunecd opthn. T]rts may o; mry not get ap poYEd h th€ rTcanlrg ,re(s} OPTIO A: Clustered darelopment solely uslng densltythat can be gen- oPTlo B: Clustered developm€nt a(hlE lng the ruxknum d I dy'a(re OPTIO C: RJnlvlllage cmcept at FUTURE RESIOENTIAL OPTIONS SINGLE FAMILY UNITS MU LTI FAMILY UNITS TOTAL UNITS 142 Unlts 3t2 Unlts 512 Unfts 66 Unlts 57E Unltt throuo hTDRs: 572 Unlts 280 Unltt 852 Unltt 11.C.7 Packet Pg. 72 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) Two independent Real Estate Appraisers were engaged to perform a valuation for the 967-acre parcel known as the HHH Ranch. P.rc.l Slz.: 967 Acres Gras Asa: 583 Receivirp 4sss 38a SerdrB Acres Owrrtlhlp: Frarrb & P. l-fussey Jr., Ssn [,lede Hussey Trust and \4/hrctesbr Land, LLC P.rrd Acca!: A dart rod lax,nn as Ead(hlm Road extmdirE tqn the erd d White Lake Bqfe|ard in m 6sHry di€dbn b ths soutllrl6t cdn€r of the subiect gqery- Zmhg: A{FMtJO-SerxtingFNBlrO and A{FMl.JO-RecdvingFNBlrO lrnd t !.: RFMUCSeTTIEF].|BI\4O RFMUGRedvirg+{BIvlO Elr.rn nt!: Ttlers is a Cdlief Cqrnty rmd rcht d vrsy wttii e(tends from the wed bardary to the €ost bqrndaay 1m feet no[rt of he sql bounday being 1 50 bot wire. Encur$nncalbccc: i,lore not€d hat i rralue. lmprovrmcnts: t{orre cf arry cs valu6, fE propsrty h6 perirEts bdb wirE f€rtcing. 11.C.7 Packet Pg. 73 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) Sales History: The Uniform Standards of Professional Appraisal Practice requires a statement of the listings, sales contracts, and sales history of the subject property for the five years prior to the appraisal date. One of the parcels, Parcel Number 00329240004, has recorded that it was acquired by HHH lnvestments, Ltd. in August of 2019, by a Warranty Deed recorded as OR 5664-3993. The sale price was $67,500 for the S-acre property. The analyst is aware of no other sales on the subject parcels for the five-year period prior to this appraisal date. The property owner has contracted with the real estate firm of Land Solutions, lnc. to assist them in potential marketing of the property. An asking price was set at $11,500,000. An offering memorandum document has been developed which has included the input from Land Solutions, the executive team of Randy Thibaut, Billy Rollings and Ron lnge of lnge and Associates, along with the engineer RWA Consulting, (Patrick Vanasse) as well as the environmentalists Synecological Analysts (Brown Collins). The listing agent, Billy Rollings, stated that the property went under contract last year with a local developer and that the price was around the previously appraised value, which was at $8,200,000. The developers decided to back out after doing some due diligence and finding that the property would be a long-term project, over 20 years, for permitting, mining, issues with road access, and other matters to be handled. The property is still listed for sale and has had no other contracts or no contract pending to our knowledge. _U ... g -.}r.'rf '...,'; ?f 11.C.7 Packet Pg. 74 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) Appraiser #1 Valuation CARLSON NORRIS & ASSOCIATES A PP FAI S A L.CO N !} UL TATI O N -fI EA LTO R 9 XlcH E- Jox q H.A!. At€Rs c-u,lr-Lr^x cal!-aoir. MAI.9RA J, LEE Noana, x^t,3RA $IAIECEITIFIEO GG'G'^'L TArI<ETflflED CEfiEi ! 9TATE.C-XTTF'O OOTEIAL taEAL CrrArE ^FFr^l3Er lIeC2! FE]AL Ean^rrArFt^ttEt R:26C7 RE^L Elt^.it AFrl/NiEr ZC{9 mbnEtrkollno.Ii!-cdtl !c.rbontc.rllonnorrir-com hronirlcrteonrqris.com L^rrd Ll. tFtrHr rn rrrt - AuJritE t5?E!C AtE E 3ll,t&E3 ! -------__l ----E-F---l t-------'l E nr E a.E ! 11.C.7 Packet Pg. 75 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) salEsctl{Ptaffitf lrlsElfloomr(lus S !9t4!&i TECEV G LrT6 v*r. D.i i...td IDf lrab. D.r Acrr kr€i 51, ArrEr t .b! F.r Aclt 5e, MAR VALUE OF SUBJECT BY PER A(RE AI{ALYSIS 58,703,(m 11.C.7 Packet Pg. 76 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) Appraiser #2 Valuation 4. I3]T:YF.:'- fi]iP"Iy-=.'iTlf P, #= Comparable land Sales Chart The comparable sales and our anal)Gb thercof are summarlzed ln the followlng charu IEE!!lcr lrEa lsrrlhla-a -/rn- lEEElllLl ..,lc I&IEE!E! !rl- .Ed.!AI 5@Ii!E-E ITED cd.E E{r'ad1 Enrrr.- -1*rq@,rra! a/alr 5-i trl r,.-'.7n16s.lft E tt5.752 gg! gE -r a1a,Ea 9& 9S!, lt--itrErx r[rtsia rnaErt rlhilhEl!.t'mL. Un.dju.t.d PrlE. p.r a irc,sla .99. .esr t7.253 130,s6. cE a?2.@3 g.t!t !J4 .s.!3 ti.E ri-'Eh,rb 11.C.7 Packet Pg. 77 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) ln tie anal!,sb, we oonsldered a Sales Comparlson App ch utilizing sales of large properues ln south Le€ County and e6.tem Colller County. Atter appropriate adiustments, we estimated a market value ol $8,9OO,OOO. Funhermore, we considered an ana breaklng down each compon€nt of the subject property by potential develop.nent rights. We estimated a value uulizing TDR sales and concluded a \ralue of $7,693,000. Ihe subject property ls rather unique Elven its RFMU - Receiving Lands and RFMU - Sendlng Lands zontng, as well as the limitatons n has with regar(b to access and zoninE Botfi methods consldered are belleved to be re6onaue analys€s of subrect property. lt is our opinlon that each method should be consldered with the heaviest consideratlon glven to the per acre analysts. This t)pe of property would mct likely be acqulred for 8 Rural Frhge M Use Dlstrlct Restudy, there ls uncertalnty as to ho$, this wlll impact propertles ln thls area. Ihe TDR pro8ram ln Colller County has onty had limited actlvity as evidenced by the number ol sales rvhlch have octuned since incepuon. Given the lack of orrerall activity with this program, u,e have given tie per acre analysb the mo6t weiot Assumpuons and Hypothetlcal Condithns ouulned ln the Addenda, and our experience in the real €state appraisal p on, it b our odnion that the -as is," fee simple market value of tie subject property, as of 2 April 2O2O, is EIGHT MILI,ION NINE HUNDRED IH)i'SAND DOI.J.ARS - $E,gOO,(nO Ihls \ralue ls contingent upon the ce cation and the assumptions and condnions of thls appralsal, lf any. According to public reclrds of Collier Cou , only one of the properties indicates a sale. The property described as Follo f OO32924OOO4 was sold in August 2019 for $67,000 which repesented a price of $13,500 per acre.Ihb perty ls cunenty owned by HHH lnvestments, LTD. The lbting agent stated thls was a non-arms length transacuon. The enure perty ls curenty llsted for sale with LSI wlth a list p ce of $11,5OO,OOO. The property has been llsted at this prlc€ slnc€ February 2O2O. The property was previously under contract starung in February 2019 at an undisclced price. However, t,lis contract fell through due to the lengl$ry timeframe necessary to development a property such as the subject accordlng to the llstlng broker. ln our oplnion, the curent list ElIioe ts aboYt martet lndicators of yalue for the suuect property. 11.C.7 Packet Pg. 78 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) Appraiser #1 Estimated value for the HHH Ranch is $8,200,000 Appraiser #2 Estimated value for the HHH Ranch is $8,900,000 The overall value for the HHH Ranch is based on the average of the two independent appraisers estimated value. The estimated value for the HHH Ranch is $8,550,000. The estimated value $8,550,000 / $8,842ac is reasonable due to the real estate appraisers have a combined adjusted range of value between acreage is $7,500ac to $11,000ac. HHH Ranch 967 acres "as is" as of 412412020 is $8,SS0,000 dollars. 0412412020 Roosevelt Leonard, R/W-AC Certified Real Estate Appraiser RD 3287 Sr Review Appraiser Real Property Management 3335 Tamiami Trail East Ste. l0l Naples. FL 341l2 Ph:239 252-2621 11.C.7 Packet Pg. 79 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) Statement of Limiting Gonditions and Appraise/s Certification DEFINITION OF NIARKET VALUE: The nrost probable price which a property should bring in a competitive md open nruket under all conditions requisite to a fair sale, the buyer and seller, each actioS pmdmtly, knowledgeably md assming the price is not affected by udue stimulus Implicit in this definition is the ansummation of a sale as of a specified date and the passingoftitlefiornsellertobuyerunderconditionswhereby: (l)buyerandselleraretypicallymotivated;(2)bothpartiesare rvell inlonned or well advised, md each acting in what he considers his ovn best interest; (3) a reasonable time is allowed for exposure in the open rnarket; (4) payrnent is made in temrs ofcash in U S dollars or in tems offinancial anangements conrparable thereto; and (5) lhe price represents the nomal consideration for the property sold unaffected by special or crqtive financing or sales concessionsr grmted by anyone associated with ihe sale *Adjustlnents 10 the comprables rnLrst be made for special or creativc financing or sales concessions No adjustnents are necessary for lhose cosls which are nonnally paid by sellers as a result oftmdition or law in a market areal these costs are readily identifiable since the seller pays these cosls in virtually all sales transactions Special or creative financing adjustnrents can be nrade to the comparable property by cornparisons to financing tenns offered by a third Party institutional lender tlat is not already involved in the property or trilMction Any adjtrstment should not be calculated on a mechanical dollar for dollar cost of thefinancingorconcessionbutlhedollararnounto[anyadjtrshnent shouldapproxinratethemilkei'sreactiontothefinancingor concessions based on the appraiser's judgment STATEI\ICNT OF LlIITI'I'ING CONDITIONS AND APPRAISER'S CERTIFICATTON' CONTINCENT AND LlMll ING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the lollowing conditions: I 1-he appraiser will not bc responsible for matters ofa legal nature that aflect either tle property being appraised or the title to it The appraiser assumes that the title is gmd aDd marketable and, therefore, will not render my opinions about the title The prop€rty is appraised on the basis ofit being under responsible ownership 2 Thc appraiser has provided a skelch in the appraisal rcport to show approximate dimensions ofthe improvements and the sketch is included only to assist the reader of the report in visualizing the propety md underslanding the appraiser's detenrination of ils size 3 The appraiser has examined the available flood rnaps thal are provided by the Federal Ernergency Milagement Agency (or other data sources) and has noted in the appraiul report whether tlre subject site is lmated in an identified Special Flood Hzrd Area Because the appraiser is not a surueyor, he or she makes no g[arantees, express or implied, regarding this detemination 4 The appraiser w i I I not gi ve testi mony or appear i n court btrause he or she rnade an appraisa I o f t he properry i n question, unless specific mmgemmts to do so have been made beforehand 5 The appraiser hro estimated llre value oflhe lmd in tlE cost approach at its highest and best use and the improvements at their contributory value These separate valuations ofthe land and improvemenis must nol be used in conjunction with any other appraisal and are invalid iftlrey are so used 6 The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hzardous }vastes, toxic substances, elc ) obserued during the inspection ofthe subject property or that he or she becme aware of drring tlre nomal resilch involved in perfonning the appraisal Unless otheruise stated in the appraisal report, the appraiser has no knowledge of any hidden or unappilent conditions of the property or adverse environmmial conditions (including the presence of hazrdous wastes, toxic substances, etc ) that would make the properb" more or less valuable, and has assumed that lhere are no sucb conditions and makes no gumtes or waranties express or irnplied, regarding the condition of the property The appr aiser will not be rsponsible lor any such conditions fiat do exist or for any engineering or testing lhat might be required to discover whether such conditions exist Because the appraiser is rot an expert in the field ofenvirorunental hazards, tlte appraisal report rnust not be considered as an environmental assessment olthe property 7 The appraiser obtained the information, estimates, md opinions thal were expressed in the appraisal report from souces that he or she considers to be reliable and belieyes them to be true md corect The appraiser does not assume responsibility for the accuracy ofsuch items that were lirmished by other parties 8 1-he appraiser will not disclose the contents ofthe appraisal reporl e.\cept as provided for in the Unifonn Standards of Prolessional Appraisal Practice 9 The appraiser has based his or her appraisal report md valuation conclusion for an appraisal that is subject to satisfactory cornpletion, repairs, or alterations on tlle assumption that completion oI the irnprovements rvill be perfonned in a workmanl ike rlmner [0 rr.appraiserrnustprovidelrisorherpriorwrittencoDsentbeforetheleoder,/client,specifiedintlreappraisalreportcm distribute the appmisal report (including conclusions about the property value, the appraiser's identity and professional designations, md references lo any professional appraisal orgmiztions or the fim with which the appraistr is assmiated) to anyone other than the bonower; lhe mort8agtr or ils successors and assigns; the rnortgage insurer: consultants; profasional appraisal organiations: any stafe or federally approved financial institution: orany department, agency, orinstrumentality ofthe United Stat€s or my state or the District oI Columbia; except that the lender,/clieDt may distribule the property description section of lhe report only to data collection or reporting service(s) wilhorrt, having to obtain the appraiser's prior wriften consent 'T'he appraiser's written consen( and approval must also be obtained before the appraivl can be conveyed by anyone to the ptrblic throuBh advertising, public relations, news, sales, or other media 11.C.7 Packet Pg. 80 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) AccrptablG uoaccEptabe f{AtrDtrntrL_rwtrtr 5- lmprovements 6 Subjecl Unil 7 Comment Seclion IUA DEtrtr Accrplab c Unaccrplab oBDtrDGDgtr DESCEIPTION: 1 . Legal Oescripton (verity) 2- Cemus Tract 3. ll€ighborhood 4. SitE REI\IIARKS: COST ANALYSIS SECTION: 8 Physical 0eprecialion 9. Functional 0epreciition 1 0- External oeprectaton 1 1 Land to lmprwement Rato (verity) REMARKS: gwDtrtrtr !!trfl ! l-lutr.-1' DDg 12. Adiustments & Calculations (verity) 13. Commenls MARKEI OAIA AMLYSIS SECNON: 1 4. Documenlation Numbers (ven rY) 1 5 Location Adiustmenls 1 6 Site and View Adiusbnents 1 7 oualrty/Desiq and Appeal Adiusfnenh 1 8. Condition Adiustnmts 1 9 Room Count and Square leet Adirctnents 20. Amenities Adiustments REMARKS: 8trtr-y-EEB L-.] U BE g trtr8DEtr- 1)_x 2l-%3)-_% 4)_-% 5t-% 24. GrmsAdustnentRatio tr tr r)-% 2)-% 3)-x 4)-% 5)-% 6)- 25 Comparable Dah Sections 26 lncome Approach 27 Condo Projecl Addenda BtrENtrLJ-ft w ADOENDA REOUIBED 28. Plat Map 29 Building Sketch 30. Compuabb Map 31. Photo Pages 32 Stalement ol Llmiting Conditions 33. Purchase Agreement 34 Onqinal Signature 35. 442 Cerlification ol Corny'elion 36 Copy ol Permit for Addition/Convereion REMASKS: !tr!DtrDgD g!trtrtrtr !n D! CONDOMINIUM 37 No. ol Uruts Not Compleled 38 Presale Requlreme[b Nd Mei 39 Sale(s) From Proiect Needed 40 Sale(s) out ol Proiect Needed 41. Addendum A 42- Addendum I IJNITS 43. Rental Survey 44 0perathg lncome Statement w t]ruDwtk g tr tr!trtr! D! tr D Dtr Dtr tr C Appraisal report was: Good Ef Fair ! Poor Becommendaton: ccept as is ! Have andrer appraisal prepared by sorneone ebe Commeflts: ! Accept when revised - See ibmsiA D orr"r Field Review vras made Reviewe/s Recomnrendaton $ copwEilo2ruryxful^ssdmol&tfl^gzi'!dldrgr{.UdM4zl5{}f,19nlt4.sdl.c-2.fu.rilsm,'H.nxsumiiJy'i-,ig"i,"* iimt rrft.r coMil. lloy; iTrre.a LoiiG J n 'n rpt-iss fr Mds+ utktu. mud b rcbwLdgtd d dldrd Form M0068 -'rflinlolr{-' appraisal soft'rae by a la nnde, im- - lJqlfl.,AM0DE Appaisers Value $ 11.C.7 Packet Pg. 81 Attachment: Appraisal Review HHH Ranch Roosevelt (12342 : HHH Ranch - Hussey) 11.C.8 Packet Pg. 82 Attachment: Term Letter County 05-05-20 (12342 : HHH Ranch - Hussey) 11.C.8 Packet Pg. 83 Attachment: Term Letter County 05-05-20 (12342 : HHH Ranch - Hussey) 11.C.8 Packet Pg. 84 Attachment: Term Letter County 05-05-20 (12342 : HHH Ranch - Hussey) 11.C.8 Packet Pg. 85 Attachment: Term Letter County 05-05-20 (12342 : HHH Ranch - Hussey) 11.C.9 Packet Pg. 86 Attachment: Property Location with LRTP (12342 : HHH Ranch - Hussey) 1 Project: HHH Ranch Folio: 341960003, 342040003, 328560002, 331320006, 328640003, 330480002, 330840008, 329240004, 00329760005 STANDARD FORM AGREEMENT FOR SALE AND PURCHASE THIS AGREEMENT is made and entered into by and between FRANCIS D. HUSSEY, JR. and MARY PAT HUSSEY, husband and wife, and SEAN MEADE HUSSEY, TRUSTEE, and HHH INVESTMENTS LIMITED PARTNERSHIP, a foreign limited partnership whose mailing address is 1350 Spyglass Lane, Naples, FL 34102 hereinafter collectively referred to as ("Seller"), and Collier County, a political subdivision of the State of Florida, whose mailing address is 3335 Tamiami Trail East, Suite 101, Naples, FL 34112 (hereinafter referred to as "Purchaser"). W I T N E S S E T H WHEREAS, Seller is the owner of those certain parcels 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 ref erence. 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 ($10.00), the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows: I. AGREEMENT 1.01 In consideration of the purchase price and upon the terms and conditions hereinafter set forth, Seller shall sell to Purchaser and Purchaser shall purchase from Seller the Property, described in Exhibit "A". II. PAYMENT OF PURCHASE PRICE 2.01 The purchase price (the "Purchase Price") for the Property shall be ($_____________)(U.S. Currency) payable at time of closing. 11.C.10 Packet Pg. 87 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 2 III. CLOSING 3.01 The Closing (THE "CLOSING DATE", "DATE OF CLOSING", OR "CLOSING") of the transaction shall be held on or before one hundred twenty (120) days following execution of this Agreement by the Purchaser, 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. 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 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 the following: 3.0121 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. No funds shall be disbursed to Seller until the Title Company verifies that the state of the title to the Property has not changed adversely since the date of the last endorsement to the commitment, referenced in Section 4.011 thereto, and the Title Company is irrevocably committed to pay the Purchase Price to Seller and to issue the Owner's title policy to Purchaser in accordance with the commitment immediately after the recording of the deed. 11.C.10 Packet Pg. 88 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 3 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, issued pursuant to the Commitment provided for in Section 4.011 below, shall be paid by Purchas er. The cost of the title commitment shall also be paid by Purchaser. 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. REQUIREMENTS AND CONDITIONS 4.01 Upon execution of this Agreement by both parties or at such other time as specified within this Article, Purchaser and/or Seller, as the case may be, shall perform the following within the times stated, which shall be conditions precedent to the Closing; 4.011 Within thirty (30) days after the date hereof, Purchaser shall obtain as evidence of title an ALTA Commitment for an Owner's Title Insurance Policy (ALTA Form B-1970) covering the Property, together with hard copies of all exceptions shown thereon. Purchaser shall have ten (10) days, following receipt of the title insurance commitment, to notify Seller in writing of any objection to title other than liens evidencing monetary obligations, if any, which obligations shall be paid at closing. If the title commitment contains exceptions that make the title unmarketable, Purchaser shall deliver to the Seller written notice of its intention to waive the applicable contingencies or to terminate this Agreement. 4.012 If Purchaser shall fail to advise the Seller in writing of any such objections in Seller's title in the manner herein required by this Agreement, the title shall be deemed acceptable. Upon notification of Purchaser's objection to title, Seller shall have fifteen (15) days to remedy any defects in order to convey good and marketable title, except for liens or monetary obligations which will be satisfied at Closing. Seller, at its sole expense, shall use its best efforts to make such title good and marketable. In the event Seller is unable to cure said objections within said time period, Purchaser, by providing written notice to Seller within seven (7) days after expiration of said fifteen (15) day period, may accept title as it then is, waiving any objection; or Purchaser may terminate the Agreement. A failure by Purchaser to give such written notice of termination within the time period provided herein shall be deemed an election by Purchaser to accept the exceptions to title as shown in the title commitment. 4.013 Purchaser shall have the option, at its own expense, to obtain a current survey of the Property prepared by a surveyor licensed by the State of Florida. No 11.C.10 Packet Pg. 89 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 4 adjustments to the Purchase Price shall be made based upon any change to the total acreage referenced in Exhibit "A", if any. Seller agrees to furnish any existing surveys of the Property, if any, to Purchaser within fifteen (15) days of execution of this Agreement. V. APPRAISAL PERIOD 5.01 This provision was deleted as an in-house appraisal was obtained per the guidelines set forth in Section Two(4) of Ordinance 2007-28. VI. INSPECTION PERIOD 6.01 Purchaser shall have one hundred twenty (120) days from the date of this Agreement, ("Inspection Period"), to determine through appropriate investigation that: 1. Soil tests and engineering studies indicate that the Property can be developed without any abnormal demucking, soil stabilization or foundations. 2. There are no abnormal drainage or environmental requirements to the development of the Property. 3. The Property is in compliance with all applicable State and Federal environmental laws and the Property is free from any pollution or contamination. 4. The Property can be utilized for its intended purpose. 6.02 If Purchaser is not satisfied, for any reason whatsoever, with the results of any investigation, Purchaser shall deliver to Seller prior to the expiration of the Inspection Period, written notice of its intention to waive the applicable contingencies or to terminate this Agreement. If Purchaser fails to notify the Seller in writing of its specific objections as provided herein within the Inspection Period, it shall be deemed that the Purchaser is satisfied with the results of its investigations and the contingencies of this Article V shall be deemed waived. In the event Purchaser elects to terminate this Agreement because of the right of inspection, Purchaser shall deliver to Seller copies of all engineering reports and environmental and soil testing results commissioned by Purchaser with respe ct to the Property. 6.03 Purchaser and its agents, employees and servants shall, at their own risk and expense, have the right to go upon the Property for the purpose of surveying and conducting site analyses, soil borings and all other necessary investigation. Purchaser shall, in performing such tests, 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. Seller shall be notified by Purchaser no less than twenty four (24) hours prior to said inspection of the Property. VII. INSPECTION 7.01 Seller acknowledges that the Purchaser, or its authorized agents, shall have the right to inspect the Property at any time prior to the Closing. 11.C.10 Packet Pg. 90 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 5 VIII. POSSESSION 8.01 Purchaser shall be entitled to full possession of the Property at Closing. IX. PRORATIONS 9.01 Ad valorem taxes next due and payable, after closing on the Property, shall be prorated at Closing based upon the gross amount of 2014 taxes, and shall be paid by Seller. X. TERMINATION AND REMEDIES 10.01 If Seller shall have failed to perform any of the covenants and/or agreements contained herein which are to be performed by Seller, within ten (10) days of written notification of such failure, Purchaser may, at its option, terminate this Agreement by giving written notice of termination to Seller. 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. 10.02 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, and neither party shall have any further liability or obligation to the other except as set for in paragraph 13.01 (Real Estate Brokers) hereof. 10.03 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. 10.04 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. XI. SELLER'S AND PURCHASER'S REPRESENTATIONS AND WARRANTIES 11.01 Seller and Purchaser represent and warrant the following: 11.011 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 11.C.10 Packet Pg. 91 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 6 hereunder. Seller is not presently the subject of a pending, threatened or contemplated bankruptcy proceeding. 11.012 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. 11.013 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 to the said Property shall not 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. 11.014 Seller represents that it has no 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. 11.015 No party or person other than Purchaser has any right or optio n to acquire the Property or any portion thereof. 11.016 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. 11.017 To the best of Seller’s knowledge, there are no incinerators, septic tanks or cesspools on the Property; all waste, if any, is discharged into a public sanitary sewer system; Seller has no knowledge that any pollutants are or have been discharged from the Property, directly or indirectly into any body of water. Seller has no knowledge the Property has not been used for the production, handling, storage, transportation, manufacture or disposal of hazardous or toxic substances or wastes, as such terms are defined in applicable laws and regulations, or any other activity that would have toxic results, and no such hazardous or toxic substances are currently used in connection with the operation of the Property, and there is no procee ding or inquiry by any authority with respect thereto. Seller has no knowledge that there is ground water contamination on the Property or potential of ground water contamination from neighboring properties. Seller has no knowledge of storage tanks 11.C.10 Packet Pg. 92 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 7 for gasoline or any other substances are or were located on the Property at any time during or prior to Seller's ownership thereof. Seller represents none of the Property has been used as a sanitary landfill. 11.018 Seller has no knowledge that the Propert y and Seller's operations concerning the Property are in violation of any applicable Federal, State or local statute, law or regulation, or of any notice from any governmental body has been served upon Seller claiming any violation of any law, ordinance, code or regulation or requiring or calling attention to the need for any work, repairs, construction, alterations or installation on or in connection with the Property in order to comply with any laws, ordinances, codes or regulation with which Seller has not complied. 11.019 There are no 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. 11.020 Seller has no 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 threat ened which affects the Property or which adversely affects Seller's ability to perform hereunder; nor is there 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. 11.021 Seller acknowledges and agrees that Purchaser is entering into this Agreement based upon Seller's 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 pertaining to or affecting the Property and not to do any act or omit to perform any act 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 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. 11.022 At the Closing, Seller shall deliver to Purchaser a statement (hereinafter called the "Closing Representative Statement") reasserting the foregoing representations as of the Date of Closing, which provisions shall survive the Closing. 11.C.10 Packet Pg. 93 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 8 11.023 Seller represents, warrants and agrees to indemnify, reimburse, defend and hold Purchaser harmless from any and all costs (including attorney's fees) asserted against, imposed on or incurred by Purchaser, d irectly or indirectly, pursuant to or in connection with the application of any federal, state, local or common law relating to pollution or protection of the environment which shall be in accordance with, but not limited to, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Section 9601, et seq., ("CERCLA" or "Superfund"), which was amended and upgraded by the Superfund Amendment and Reauthorization Act of 1986 ("SARA"), including any amendments or successor in fu nction to these acts. This provision and the rights of Purchaser, hereunder, shall survive Closing and are not deemed satisfied by conveyance of title. 11.024 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. XII. NOTICES 12.01 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 Department Administration Building 3335 Tamiami Trail East - Suite 101 Naples, Florida 34112 With a copy to: Office of the County Attorney Administration Building 3299 Tamiami Trail East - Suite 800 Naples, Florida 34112 If to Seller: Francis D. Hussey, Jr. and Mary Pat Hussey Sean Meade Hussey, Trustee HHH Investments Limited Partnership, foreign limited partnership 1350 Spyglass Lane Naples, FL 34102 With a copy to: 12.02 The addressees and addresses for the purpose of this Article may be changed b y 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 addressees only, unless 11.C.10 Packet Pg. 94 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 9 and until such written notice is received, the last addressee and respective address stated herein shall be deemed to continue in effect for all purposes. XIII. REAL ESTATE BROKERS 13.01 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 est ate broker, salesman or representative, in connection with this Agreement. Seller agree s to pay any and all commissions or fees at closing pursuant to the terms of a separate agreement, if any. XIV. MISCELLANEOUS 14.01 This Agreement may be executed in any manner of counterparts which together shall constitute the agreement of the parties. 14.02 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, pe rsonal representatives, successors, successor trustee, and assignees whenever the context so requires or admits. 14.03 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. 14.04 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. 14.05 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. 14.06 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. 14.07 If any date specified in this Agreement falls on a Satu rday, Sunday or legal holiday, then the date to which such reference is made shall be extended to the next succeeding business day. 11.C.10 Packet Pg. 95 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 10 14.08 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. 14.09 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 Statute s.) 14.10 All surface and sub-surface oil and mineral rights are conveyed with the Property. 14.11 This Agreement is governed and construed in accordance with the laws of the State of Florida. XV. ENTIRE AGREEMENT 15.01 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. IN WITNESS WHEREOF, the parties hereto have signed below. Dated Project/Acquisition Approved by BCC:__________________ AS TO PURCHASER: DATED:________________ ATTEST: BOARD OF COUNTY COMMISSIONERS Crystal K. Kinzel, Clerk COLLIER COUNTY, FLORIDA BY: , Deputy Clerk BURT L. SAUNDERS, Chairman Approved as to form and legality: _________ Jeffrey K. Klatzkow, County Attorney 11.C.10 Packet Pg. 96 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 11 AS TO SELLERS: DATED:__________________ WITNESSES: BY: (Signature) FRANCIS D. HUSSEY, JR. (Printed Name) (Signature) (Printed Name) BY: (Signature) MARY PAT HUSSEY (Printed Name) (Signature) (Printed Name) BY: (Signature) SEAN MEADE HUSSEY, TRUSTEE (Printed Name) (Signature) (Printed Name) HHH INVESTMENTS LIMITED PARTNERSHIP, a foreign limited partnership By: HHH INVESTSMENTS CORPORATION, a foreign profit corporation By:____________________________________ FRANCIS D. HUSSEY, JR., PRESIDENT 11.C.10 Packet Pg. 97 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 12 EXHIBIT “A” Page 1 of 3 The Southeast Quarter (SE1/4) of the Southeast Quarter (SE1/4) of the Northeast Quarter (NE1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00331320006 The East ½ of Section 32, Township 49 South, Range 27 East, Collier County, Florida, less and except the following: a) property previously condemned or conveyed to Collier County or the Department of Transportation for the State of Florida for road right-of-way purposes, b) all existing rights to and from State Road 85 or I-75 previously condemned by Department of Transportation for the State of Florida, and c) all oil, mineral and subsurface rights presently owned by the Grantors. Folio # 00341960003 The West ½ of Section 32, Township 49 South, Range 27 East, Collier County, Florida, less and except the following: a) property previously condemned or conveyed to Collier County or the Department of Transportation for the State of Florida for road right-of-way purposes and b) all access rights to and from State Road 84 for I-75 previously condemned by Department of Transportation for the State of Florida for road right-of- way purposes. Folio # 00342040003 The West ½ of the Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of the Southeast Quarter (SE1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00329240004 The East ½ of the Southeast Quarter (SE1/4) of the Southeast Quarter (SE1/4) of the Southwest Quarter (SW1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00330840008 The East ½ of the Northwest Quarter (NW1/4) of the Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00329760005 The West ½ of the Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of the Northeast Quarter (NE1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio #00328640003 11.C.10 Packet Pg. 98 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 13 EXHIBIT “A” Page 2 of 3 The East ½ of the Southeast Quarter (SE1/4) of the Southeast Quarter (SE1/4) of the Northwest Quarter (NW1/4) of Section 29, T ownship 49 South, Range 27 East, Collier County, Florida. Folio #00328640003 The East ½ of the Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of the Northeast Quarter (NE1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00330480002 The East ½ of the Southeast Quarter (SE1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 The Northwest Quarter (NW1/4) of the Southeast Quarter (SE1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 The East ½ of the Southwest Quarter (SW1/4) of the Southeast Quarter (SE1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 The Northwest Quarter (NW1/4) of the Southwest Quarter (SW1/4) of the Southeast Quarter (SE1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 The North ½ of the Southeast Quarter (SE1/4) of the Southwest Quarter (SW1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 The Northeast Quarter (NE1/4) of the Southwest Quarter (SW1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 The East ½ of the Northwest Quarter (NW1/4) of the Southwest Quarter (SW1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 11.C.10 Packet Pg. 99 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) 14 EXHIBIT “A” Page 3 of 3 The Southwest Quarter (SW1/4) of the Southeast Quarter (SE1/4) of the Southwest Quarter (SW1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 The West ½ of the Southeast Quarter (SE1/4) of the Southeast Quarter (SE ¼) of the Southwest Quarter (SW1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 The Southeast Quarter (SE1/4) of the Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 The East ½ of the Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of the Southeast Quarter (SE1/4) of Section 29, Township 49 South, Range 27 East, Collier County, Florida. Folio # 00328560002 11.C.10 Packet Pg. 100 Attachment: Agreement for Sale and Purchase (12342 : HHH Ranch - Hussey) C A R L S O N N O R R I S & A S S O C I A T E S A P P R A I S A L - C O N S U L T A T I O N - R E A L T O R S Michael Jonas, MAI, AI-GRS C. William Carlson, MAI, SRA J. Lee Norris, MAI, SRA State-certified general State-certified General State-certified General Real estate appraiser rz2623 Real Estate Appraiser RZ667 Real Estate Appraiser Z643 mjonas@carlsonnorris.com bcarlson@carlsonnorris.com lnorris@carlsonnorris.com 1919 COURTNEY DRIVE, SUITE 14, FORT MYERS, FLORIDA 33901 239-936-1991 FAX 239-936-7359 CARLSONNORRIS.COM April 13, 2020 Collier County Board of County Commissioners Attention: Roosevelt Leonard, R/W-AC, Senior Review Appraiser Real Property Management 3335 Tamiami Trail East, Suite 101 Naples, Florida 34112 RE: 967 Acres- HHH Ranch Unincorporated Collier County, Florida 34117 Our File Number: 20-77 Purchase Order Number 4500202375 Dear Mr. Leonard: At your request and authorization, Carlson, Norris and Associates has prepared an appraisal presented in an Appraisal Report of the market value for the above referenced real property. Per the request of the client, we have provided the market value estimate of the subject property on an “as is” basis. The subject property is located in southern Collier County adjacent to the north side of Interstate 75 east of the tollbooth and Collier Boulevard. The subject property contains 967 acres. The property is primarily unimproved. The majority of the habitat is a combination of cabbage palms, slash pine and cypress. There are significant cleared areas where the property has been timbered in the past. The zoning classification of the subject property is A-RFMUO Sending Lands-NBMO and A-RFMUO Receiving Lands-NMBO. The future land use designation for the subject property is RFMUD Sending Lands within the North Belle Meade Overlay and RFMUD-Receiving Lands within the North Belle Meade Overlay. There is a settlement agreement between Collier County and the property owner which plays an important role in the preparation of this appraisal. The settlement agreement specifically dictates the number of receiving acres and sending acres the subject property has moving forward. As per the settlement agreement the subject property has access along Blackburn Road, a dirt path which extends easterly from the end of White Lake Boulevard extension to the southwest corner of the subject property. This settlement agreement identifies this access as a road that is capable of providing access to the subject property for excavation and residential purposes. The property only has electricity and telephone available at this time. Data, information, and calculations leading to the value conclusion are incorporated in the report following this letter. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. Any special assumptions and limiting considerations were especially noted in Section 7 of this report. Your attention is directed to these General Assumptions and Limiting Conditions which are part of this report. April 13, 2020 Page 2 The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, our interpretation of the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation, the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Carlson, Norris and Associates does not authorize the out-of-context quoting from or partial reprinting of this appraisal report. Further, neither all nor any part of this appraisal report shall be disseminated to the general public by the use of media for public communication without the prior written consent of the appraiser signing this report. Based upon the data contained in this report it is our opinion the subject property warrants a market value for its fee simple ownership and in its “as is” condition as of March 20, 2020 of: EIGHT MILLION TWO HUNDRED THOUSAND DOLLARS ..................................... ($8,200,000.00). PLEASE NOTE: The Novel Coronavirus (COVID-19) outbreak, declared by the World Health Organization as a global health emergency on 1-30-2020, is causing heightening uncertainty in local, national and global markets. This outbreak was identified as a pandemic on 3-11-2020 and further classified as a National Emergency on 3- 13-2020. Worldwide cases of COVID-19 have been identified and the scope of this crisis has expanded. Travel and “shelter in place” restrictions have been implemented to “blunt the curve” of infections and stem the scale and longevity of this outbreak. A prolonged medical and economic crisis may have a significant, yet unquantifiable impact on real estate markets. The information provided within this appraisal is based on market data available at this juncture (date of value and date of the report). However, due to the significant uncertainty in property and capital markets, as well as the rapid unfolding of this event, it is indeterminable for the appraiser to quantify and assess the impact that this outbreak has had/or will have on real estate property values. Values and incomes may change more quickly and significantly than during more typical market conditions. It should be emphasized that the results of this appraisal analysis and the value conclusions reported herein are based on the effective date of the appraisal and the appraiser makes no representation as to the effect on the subject property of any unforeseen event subsequent to the effective date. Please refer to the attached appraisal report, plus exhibits, for documentation of the value estimates contained herein. It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if Carlson, Norris and Associates can be of further service, please contact us. Respectfully submitted, CARLSON, NORRIS AND ASSOCIATES, Michael Jonas, MAI, AI-GRS, CCIM State-certified general real estate appraiser RZ2623 Angelica Jordan State-registered trainee appraiser RI23979 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 1 TABLE OF CONTENTS SUMMARY OF SALIENT FACTS AND CONCLUSIONS .................................................... 4 SECTION 1 – PREMISES OF THE APPRAISAL ................................................................ 6 PURPOSE OF APPRAISAL ........................................................................................................................ 6 FUNCTION OF APPRAISAL ....................................................................................................................... 6 SCOPE OF WORK ................................................................................................................................... 6 INTENDED USE AND USER OF APPRAISAL .............................................................................................. 8 DATE OF VALUE ESTIMATE ..................................................................................................................... 9 DATE OF PROPERTY INSPECTION ........................................................................................................... 9 SALES HISTORY ..................................................................................................................................... 9 APPRAISAL HISTORY ............................................................................................................................. 10 APPRAISAL ANAYLSIS AND REPORT TYPE ............................................................................................ 10 EXPOSURE TIME ................................................................................................................................... 10 MARKETING TIME ................................................................................................................................. 11 EXTRAORDINARY ASSUMPTIONS .......................................................................................................... 12 SECTION 2 – DESCRIPTION OF REAL ESTATE APPRAISED ......................................... 13 REGIONAL LOCATION MAP ................................................................................................................... 13 SUBJECT LOCATION MAP ..................................................................................................................... 13 COLLIER COUNTY AREA ANALYSIS ....................................................................................................... 14 NEIGHBORHOOD ANALYSIS .................................................................................................................. 27 MARKET AREA MAP .............................................................................................................................. 27 MARKET AREA DESCRIPTION ............................................................................................................... 27 LEGAL DESCRIPTION ............................................................................................................................ 31 ASSESSED VALUE AND TAXES .............................................................................................................. 31 OWNERSHIP ......................................................................................................................................... 32 SECTION 3 – SITE DESCRIPTION .................................................................................................. 33 SITE PLAN ............................................................................................................................................ 33 SITE ANALYSIS ..................................................................................................................................... 33 MINING/AGGREGATE ANALYSIS ............................................................................................................ 38 SETTLEMENT AGREEMENT ................................................................................................................... 38 TRANSFERABLE DENSITY RIGHTS (TDR) DISCUSSION ......................................................................... 39 ZONING AND LAND USE ........................................................................................................................ 42 SUBJECT PROPERTY PHOTOGRAPHS ................................................................................................... 46 SECTION 4 – HIGHEST AND BEST USE ANALYSIS ................................................................... 47 SECTION 5 – VALUATION OF THE SUBJECT ............................................................................. 50 VALUE ESTIMATE BY THE COST APPROACH ......................................................................................... 50 VALUE ESTIMATE BY THE INCOME APPROACH ...................................................................................... 50 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 2 VALUE ESTIMATE BY THE SALES COMPARISON APPROACH .................................................................. 50 TDR SALE LOCATION MAP ................................................................................................................... 53 TDR SALES DATA SHEETS ................................................................................................................... 54 AG LAND SALES MAP ........................................................................................................................... 64 AG LAND SALES DATA SHEETS ............................................................................................................ 65 LAND SALES LOCATION MAP ................................................................................................................ 80 LAND SALES DATA SHEETS .................................................................................................................. 81 SECTION 6 -RECONCILIATION OF VALUE .................................................................................. 98 SECTION 7 - CERTIFICATION AND LIMITING CONDITIONS ................................................... 100 CERTIFICATION OF MICHAEL JONAS, MAI, AI-GRS, CCIM ................................................................. 100 C ERTIFICATION OF ANGELICA JORDAN .............................................................................................. 102 GENERAL ASSUMPTIONS & LIMITING CONDITIONS .............................................................................. 104 SECTION 6 – ADDENDA ................................................................................................................ 109 NOTICE TO PROCEED ......................................................................................................................... 110 SETTLEMENT AGREEMENT ................................................................................................................. 111 ZONING .............................................................................................................................................. 132 LAND USE .......................................................................................................................................... 150 LICENSE FOR APPRAISERS ................................................................................................................. 155 QUALIFICATIONS OF MICHAEL JONAS, MAI, AI-GRS, CCIM .............................................................. 156 QUALIFICATIONS OF ANGELICA JORDAN ............................................................................................. 157 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 3 AERIAL VIEW 967 ACRE HHH RANCH UNINCORPORATED COLLIER COUNTY, FLORIDA 34117 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 4 Summary of Salient Facts and Conclusions Property Reference: HHH Ranch, Hussey Property PO Number: 4500202375 Folio Numbers: 341960003,342040003, 328560002,331320006, 328640003, 330480002,330840008,329240004, 00329760005 Date of Inspection: March 20, 2020 Date of Value: March 20, 2020 Date of Report: April 13, 2020 Interest Appraised: Fee Simple Parcel Size: 967 Acres Gross Acres: 583 Receiving Acres 384 Sending Acres Ownership: Francis & Mary P. Hussey Jr., Sean Meade Hussey Trust and Winchester Land, LLC Parcel Access: A dirt road known as Blackburn Road extending from the end of White Lake Boulevard in an easterly direction to the southwest corner of the subject property. Zoning: A-RFMUO-Sending-NBMO and A-RFMUO–Receiving-NBMO Land Use: RFMUO-Sending-NBMO RFMUO-Receiving-NBMO Easements: There is a Collier County road right of way which extends from the west boundary to the east boundary 100 feet north of the southerly boundary being 150 feet wide. Encumbrances/Leases: None noted that impact value. Improvements: None of any significant value, the property has perimeter barb wire fencing. Oil, Gas and Mineral Rights: Not considered in this analysis Highest and Best Use: Low Density Residential Development (583 Units) COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 5 Present Use: Low Density cattle production Value Indications: Cost Approach N/A Income Approach N/A Sales Comparison Approach $8,200,000 Final Value Estimate: $8,200,000 Appraisal Firm: Carlson, Norris and Associates Appraiser: Michael Jonas, MAI, AI-GRS, CCIM State-certified general real estate appraiser RZ2623 Angelica Jordan State-registered trainee appraiser RI23979 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 6 Section 1 – Premises of the Appraisal Purpose of Appraisal: The purpose of this appraisal is to estimate market value of the subject property in fee simple ownership as described in this analysis under the reporting requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), as defined by the Appraisal Foundation. Function of Appraisal: To assist Collier County in the possible acquisition of the subject property. Competency of Appraiser: The appraisers' specific qualifications are included within this report. These qualifications serve as evidence of their competence for the completion of this appraisal assignment in compliance with the competency provision contained within the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the Appraisal Foundation. The appraisers' knowledge and experience, combined with their professional qualifications, are commensurate with the complexity of this assignment based on the following: • Professional experience • Educational background and training • Business, professional, academic affiliations and activities The appraiser has previously provided consultation and value estimates for large acreage sites and various types of residential, industrial and commercial properties in Florida. Scope of Work: The Uniform Standards of Professional Appraisal Practice (USPAP) define the scope of work as: “the type and extent of research and analyses in an assignment”. “The scope of work includes, but is not limited to: the extent to which the property is identified, the extent to which tangible property is inspected, the type and extent of market research and the type and extent of analysis applied to arrive at opinions or conclusions.” The scope of work has been to collect, confirm, and report data. Other general market data and conditions have been considered. Consideration has been given to the property’s market area, COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 7 physical characteristics as well as zoning, land use and highest and best use. The work performed for this assignment included but is not limited too: • Extent to which the property was identified o The property was identified by the Folio numbers and the legal description provided by Collier County/Real Property Management. • Extent to which the property was inspected o An inspection of the subject property was done on March 20, 2020. We were unable to observe the entire property grounds. In addition to the limited physical inspection inspection, aerial photography was available through the Collier County Property Appraiser’s office as well as Google Earth have been given consideration, along with reports from prior inspection from our firm. • Type and extent of the market researched o Investigation of public records for the properties’ zoning, land use, flood zone information, county property appraiser’s records for attributes of the subject property itself. o Collection and analysis of sales of TDR’s in Collier County as well as acreage and AG land sales in the southwest Florida market area in order to form a market value opinion.  A number of sales, listings as well as TDR transactions have been used in this analysis. The land sales have been verified by the buyer, seller, broker or representative thereof. The TDR transactions have been confirmed through information provided by the Planning Department of Collier County. • Type and extent of analysis applied o The value opinions presented in this report are based upon review and analysis of the market conditions affecting real property, including land values, the attributes of competitive properties, and sales data for similar properties. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 8 o Reconciling the value indications from the appropriate approaches to value into final value opinions for the subject property; all as of the effective date of this report. o Preparation of a written report. To develop the opinion of value, Carlson, Norris and Associates performed an appraisal as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). In this appraisal, Carlson, Norris and Associates used the Sales Comparison Approach to develop reliable value indications. Neither the Cost nor the Income Approaches were applied in this appraisal. The Cost Approach was not applied since there were no improvements to consider. Vacant land is typically not purchased for its ability to generate an income stream. Therefore, the Income Approach was not applied. Furthermore, the value conclusions reflect information about the subject property and current market conditions. This appraisal of the subject property has been presented in an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the USPAP. Property Rights Appraised: The property ownership rights appraised in this appraisal are those known as fee simple. Fee Simple Interest is defined as: “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”1 Intended Use and User of Appraisal: The intended use of the appraisal is to assist the user, the Collier County Government in the potential acquisition of the subject property. Market Value Definition: As defined in the Agencies’ appraisal regulations, “The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price 1 Unless otherwise noted, all definitions in italics are taken from The Dictionary of Real Estate Appraisal Sixth Edition, the Appraisal Institute, Chicago, Illinois (U.S., 2010) COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 9 is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.” (Source: Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75, Number 237, Page 77472) Date of Value Estimate: March 20, 2020 Date of Property Inspection: March 20, 2020 Date of the Report: April 13, 2020 Sales History: The Uniform Standards of Professional Appraisal Practice requires a statement of the listings, sales contracts, and sales history of the subject property for the five years prior to the appraisal date. One of the parcels, Parcel Number 00329240004, has recorded that it was acquired by HHH Investments, Ltd. in August of 2019, by a Warranty Deed recorded as OR 5664- 3993. The sale price was $67,500 for the 5-acre property. The analyst is aware of no other sales on the subject parcels for the five-year period prior to this appraisal date. The property owner has contracted with the real estate firm of Land Solutions, Inc. to assist them in potential marketing of the property. An asking price was set at $11,500,000. An offering memorandum document has been developed which has included the input from Land Solutions, the executive team of Randy Thibaut, Billy Rollings and Ron Inge of Inge and Associates, along with the engineer RWA Consulting, (Patrick Vanasse) as well as the environmentalists Synecological Analysts (Brown Collins). The listing agent, Billy Rollings, stated that the property went under contract last year with a local developer and that the price was around the previously appraised value, which was at COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 10 $8,200,000. The developers decided to back out after doing some due diligence and finding that the property would be a long term project, over 20 years, for permitting, mining, issues with road access, and other matters to be handled. The property is still listed for sale and has had no other contracts or no contract pending to our knowledge. Appraisal History: Carlson, Norris and Associates last appraised the subject property in June of 2017. Appraisal Analysis and Report Type: The Appraisal Standards Board controls the process of making an appraisal of a parcel of real estate. The Board issues rules and guidelines from which all appraisals and resulting reports are made. The process of administration of those rules and guidelines is addressed to the Real Estate Appraiser Commission of each respective state. The Appraisal Standards Board issues the rules and guidelines in the form of a document update published each year by The Appraisal Foundation. That document is entitled “The Uniform Standards of Professional Appraisal Practice” (USPAP). As of January 1, 2016, the two types of appraisal types are; Appraisal Report and Restricted Appraisal Report. The following definitions have been adopted for each type of report: • An Appraisal Report: A written report prepared under Standards Rule 2-2(a). • Restricted Appraisal Report: A written report prepared under Standards Rule 2- 2(b) This appraisal is reported in an Appraisal Report format. Exposure Time: Exposure time is the estimated length of time the properties would have been offered prior to a hypothetical market value sale on the effective date of appraisal. It is a retrospective estimate based on an analysis of recent past events, assuming a competitive and open market. It assumes not only adequate, sufficient, and reasonable time but also adequate, sufficient, and reasonable marketing effort. Exposure time is therefore interrelated with appraisal conclusion of value. An estimate of exposure time is not intended to be a prediction of a date of sale or a simple one- line statement. Instead, it is an integral part of the appraisal analysis and is based on one or more of the following: • statistical information about days on the market COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 11 • information gathered through sales verification • interviews of market participants. The reasonable exposure period is a function of price, time, and use. It is not an isolated estimate of time alone. Exposure time is different for various types of real estate and under various market conditions. In consideration of these factors, we may have analyzed the following: • Exposure periods of comparable sales revealed during the course of this appraisal; • Macroeconomic exposure times for the subject property type across the Subject MSA and the entire United States as published in multiple articles and websites. • Knowledgeable real estate professionals. An exposure time of two years or less for the sale of the subject site appears to be reasonable and appropriate. This exposure time assumes the subject would have been competitively priced and aggressively promoted within the market area. Marketing Time: Marketing time is the period a prospective investor would forecast to sell the subject properties immediately after the date of value, at the value estimated. The marketing time is an estimate of the number of months it will require to sell the subjects from the date of value, into the future. The anticipated marketing time is essentially a measure of the perceived level of risk associated with the marketability, or liquidity, of the subject properties. The marketing time estimate is based on the data used in estimating the reasonable exposure time, in addition to an analysis of the anticipated changes in market conditions following the date of appraisal. The future price for the subjects (at the end of the marketing time) may or may not equal the appraisal estimate. The future price depends on unpredictable changes in the physical real estate, demographic and economic trends, real estate markets in general, supply/demand characteristics for the property types, and many other factors. Based on the premise that present market conditions are the best indicators of future performance, a prudent investor will forecast that, under the conditions described above, the sale of the subject site will require a marketing time of approximately two to three years. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 12 Extraordinary Assumptions: Extraordinary assumptions are defined as: “An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions.” Please note the following extraordinary assumptions: • An expert soil analysis has not been provided for the preparation of this appraisal. In the absence of a soil report, it is a specific assumption that the site has adequate soils to support the highest and best use. The analyst is not an expert in area of soils, and would recommend that an expert be consulted. • It is assumed that there are no hidden or unapparent conditions to the property, soil, or subsoil, which would render them more or less valuable. Subsurface oil, gas or mineral rights were not considered in this report unless otherwise stated. The analyst is not an expert with respect to subsurface conditions, and would recommend that an expert be consulted. • It is assumed that there are no toxic or hazardous materials either at ground level or subsurface. The analyst is not an expert in the valuation of site contamination, and recommend that an expert be consulted. • The settlement agreement is the defining document as to the number of receiving acres, sending acres and access. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 13 Section 2 – Description of Real Estate Appraised Regional Location Map Subject Location Map COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 14 COLLIER COUNTY AREA ANALYSIS The subject property is located within Collier County, Florida, some 150 miles south of Tampa and some 140 miles northwest of Miami. Collier County is located on the extreme southwestern portion of the state of Florida. Collier County was created in 1923 and was separated out from what was a larger Lee County. Collier County is named for Barron Collier, a New York City advertising mogul and real estate developer who had moved to southwest Florida and established himself as prominent business man and land owner. By the end of the decade railroads and Tamiami Trail were in-place which opened the area to agricultural and resort development. Florida’s first commercial oil well was drilled in 1943, and the county’s pine and cypress logging industry flourished into the 1950s. The county’s economy boomed along with its population shortly after World War II. In a short span of 30 years the population increased from 6,500 to 86,000 by 1980. The economy was sustained from agribusiness, tourism and real estate. This turned the county into one of the fastest growing areas in the country. PHYSICAL FACTORS It is the largest county in the state in terms of land area with 1,998 square miles which includes 821,600 acres of preserves, parks, and refuges. Along with the land area Collier County also has 307 square miles of water to give Collier County a total size of 2,305 square miles. The most highly developed areas within the county are west of Interstate 75 and along the coastline of the Gulf of Mexico. Development becomes increasingly sparse the more easterly the location in the county; and these easterly areas of the county contain a considerable amount of preserved land. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 15 There are three incorporated cities within the county; namely City of Naples, City of Marco Island, and Everglades City. The county is famous for its subtropical climate with average high temperatures ranging from 78o F. in January to 92o Fahrenheit in August. The average annual precipitation for the county is 56 inches. This area is also subject to tropical storms and hurricanes. The hurricane season runs from June through November. ECONOMIC-FINANCIAL FACTORS There are numerous economic factors that impact the supply and demand for all types of real estate and housing in any given area. These factors will be considered and discussed in the following paragraphs. Although these factors are considered individually, they do not act as independent agents in the marketplace. They interact and effect, one another. Therefore, the economic-financial factors considered, should be considered in totality, as a part of the economic framework. Population: Collier County has 378,488 people living there as of July 1, 2018 making Collier County Florida’s 17th most populous county. Collier County had a population of 321,521 in 2010 and they have experienced a 56,967 person increase over 8 years or 17.7% growth. Additional population estimates reflect population projections from 2018 to the year 2040 and compare the three coastal counties in the southwest Florida area. The counties include; Charlotte, Collier and Lee. The population estimate for the year 2018 for Collier County is 367,000 and increases to 516,000 in year 2045. This represents a 1.3% per year or 40.6% increase in population over the entire period. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 16 Demographics within Collier County are predominately White at 89.3%, followed by Black or African American at 7.4%, Asian at 1.6%, American Indian and Alaska Native at 0.5%, Native Hawaiian and Other Pacific Islander at 0.1% and then two or more races filling out the remaining 1.2%. Tourism: Tourism is important business for Naples, Marco Island and the Everglades. As the leading employer and the primary economic engine for the region, the tourism industry is responsible for over 34,000 jobs in Collier County. About 1.8 million visitors in 2018 spent over $1.43 billion dollars, resulting in a total economic impact of over $2.14 billion to Collier County. Collier County enacts a 5% tax on all hotel, campground and vacation rental stays of less than six months. The distribution of tourist development tax dollars is set according to Collier County ordinance. The funds are dispersed as follows; Category A is beach related projects and re- nourishment, 42.56% of the first 3.58% allocated for beach re-nourishment, beach park facilities and inlet management. Category B is tourism promotion, 47.85%. Category C is museums, 9.59% of the first 1.91% is allocated for non-county museums. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 17 New Development: A relatively new town is developing in the eastern part of Collier County known as Ave Maria. The town is located on what was once largely agricultural land is centered around Ave Maria University, the country’s newest Catholic University. The university opened its doors in 2007 and currently has about 1,120 students, including 35 in graduate programs. The school has plans to keep growing and ultimately incorporate around 5,500 more undergraduate and graduate students. The town is designed to be a compact, walk-able, self-sustaining town that reflects the community’s rural roots while offering a full range of residential options and commercial services to its residents. The Ave Maria community totals about 5,000 acres, of which nearly 20% has designated as the University Campus. A Town Core anchored by the landmark oratory that also incorporates retail, commercial, and residential living space provides a central connection between the town and the university. Business is expanding in Collier County as evidenced by a surgical device company that recently opened its doors on a site near Ave Maria University in the form of a $25 million manufacturing plant. This construction brought 500 construction jobs to the area and currently employs around 350 workers, with more being added all the time. Ave Maria has experienced a sever mosquito problem and as a result they have been sprayed more than 30 times by very safe pesticides in 2015 making it the most sprayed area in southwest Florida. Employment & Income: The most recently reported median household income for Collier County is at $69,867, a 5.78% growth from the previous year. Collier County’s unemployment rate declined to 3.4 percent in February 2019, down from 0.2 percent in form January 2019 and 0.3 percent from February 2018. The overall trend of unemployment has been trending downward. From January 2010 until now, Collier County has experienced downward trends in unemployment getting as low as almost 3%. The chart below depicts this downward trend along with total employed data and unemployed. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 18 Collier County’s largest employment concentrations continue to be in industries that are fueled by population growth. The retail trade (17,859 people), construction (19,630 people), and healthcare and social assistance (16,643) industries have the most employees in Collier County. Those three industries combined employ more than 54,000 people in Collier County. The fourth largest industry in Collier County is the accommodation and food service industry, which employs more than 14,000 people. Major employers in Collier County include NCH Healthcare System with 7,017 employees, Collier County School District with 5,604 employees, and Collier County Local Government with 5,119 employees. As the Collier County population matures, employment in the healthcare industry will continue to make up a larger part of overall employment. Collier’s top employers are listed below. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 19 Taxes: Florida is one of the few remaining states without a personal income tax. The absence of personal income taxes draws many people to Florida. Businesses enjoy additional incentive of low corporate income taxes. The Florida’s tax rate of 6% is one of the lowest in the U.S. and far below the 12% levied by some states. The largest share of households in Collier County pay $3,000+ in property taxes. The Florida statutes provide for the annual assessment and collection of property taxes on real and personal property. Property taxes are assessed and collected at the county level as revenue for counties, municipalities, school districts and special taxing districts. The tax rate is set by the taxing authority. One mill is equal to $1 per $1,000 of property value. The total just value for all real estate property types in Collier County for 2018 was $112,272,221,732. Prices: A price index is a tool that simplifies the measurement of price movements in a numerical series. Movements are measured with respect to the base period, when the index is set to 100. Our current cost of living index in Collier County is 113.4 meaning that generally speaking the cost of living is more expensive in Collier County than the average cost of living throughout the United States. Furthermore, Groceries are at 107.7, Housing is at 143 which is high, but down from 175 in December of 2016, and Health is at 101 and below you can see the rest of the table and how it compares to the United States. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 20 Banking/Interest Rates/Financing: As of January 2020, the prime rate was reported at 4.75%. Approximately one year ago the prime rate was 5.50%. The federal discount rate is most recently reported to be 2.25%; a year ago was 3.00%. The federal funds rate is 1.75%, while a year ago is was 2.50%. Currently the benchmark rate for a 30 year fixed loan is 3.68% compared with 4.55% about a year ago; the 15 year fixed loan is 3.16% compared with 3.69% a year ago, and a five- year/one-year adjustable arm rate at 3.39% compared with 3.48% the prior year. Mortgage rates have shown some volatility over the last year. The trend is expected to be for higher interest rates moving forward. Financing both commercial and residential properties became difficult during the downturn in the economy. Financing for vacant land is the most difficult. Vacant land is currently being purchased by investors with cash and expectation of longer holding periods. Generally financing of improved properties requires loans of 60%-75% of commercial properties and 90%-95% financing available for residential properties. Real Estate and Housing: Collier County was spared from the national economic downturn (2007-2009). Collier County experienced a significant increase in residential and commercial COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 21 property values from 2004 through 2006. Several news publications rated Naples as the most over-valued area of the country with respect to residential housing values. The decline in residential property values began in 2006. Inventory levels began to rise as investors and owners positioned themselves to sell at a significant profit. However, buyers were reluctant to purchase any property with a sense that the economy as a whole was headed for trouble. Many investors were not able to meet their carrying costs and properties went into foreclosure. Southwest Florida became the epicenter for residential property foreclosures with communities such as Golden Gate at the forefront of the crisis in Collier County. Residential construction projects in various stages of development were stopped as housing inventories continued to rise and prices began to fall significantly. Southwest Florida thrived on the residential construction industry; and with no homes to build, this industry was quickly decimated. Contractors that supplied this industry typically ran their businesses from various industrial locations in Collier and Lee Counties. This type of property was the first commercial property to be adversely affected with retail and office properties following. There are 24+/- industrial parks and parks of commerce located throughout Collier County. Each park is proximate to Interstate-75 for connection to major air transportation and water ports. Collier County’s zoning allows the flexibility of properties of 19 acres or more to be zoned as Research and Technology Parks, which are based on commerce parks and offer advanced infrastructure to attract technology based businesses. Single family permits are an indicator of health in an economy of a given area. Below is a chart showing single family permits monthly averages from 2009 to 2019. In the bottom of the recession in 2009 Collier County fell below 50 permits per month. The total for November 2019 was up about 40+/- from November 2018. Single family permits identify houses under construction and therefore reflect jobs in the construction industry. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 22 Median sales price in Collier County for single-family homes was around $325,000 in November 2019 which is higher compared to what it was around the same time last year while Collier County. Transportation: The infrastructure of the county continues to see improvements. Interstate 75 has been widened to six lanes from Fort Myers to Golden Gate Parkway in Naples. The County recently widened several major corridors such as Immokalee Road, Collier Boulevard, Rattlesnake Hammock Road and Goodlette-Frank Road. East Naples was not overlooked, with road widening COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 23 projects along Collier Boulevard, Santa Barbara Boulevard and Radio Road. Major north south roads are: US 41, Interstate 75, Airport Pulling Road and Livingston Parkway. The Collier County Government has worked diligently to develop an efficient road system that will accommodate future growth; and it is likely to continue to develop the necessary road infrastructure in the years to come. Southwest Florida International Airport (RSW) in Fort Myers, Florida satisfies the passenger traffic needs for the fast growing population of Southwest Florida. RSW is the eighth fastest growing airport in the nation, servicing more than 8 million passengers a year. More than two dozen commercial airlines currently serve Southwest Florida Regional Airport with non-stop service to more than 27 domestic and two international destinations. The Southwest Florida International Airport also maintains customs clearing facilities for international cargo. RSW is located off Interstate-75 in South Lee County, an approximate 30 minute drive from most areas of Naples. In 2005 the airport was completely updated and expanded to meet the growing demand of area businesses and visitors. The $386 million ultra-modern complex includes a two story terminal with 28 aircraft gates along three concourses, a new taxiway, and new parking options that includes a three story parking structure. The facility will allow for incremental expansion up to 65 gates. Construction was recently completed on a direct access connection between I-75 and the airport. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 24 Total passenger activity for the Southwest Florida International Airport exceeded 1,050,000 in January 2019, an increase of 9% over January 2018, as well as a 10% increase over the previous month. The Naples Municipal Airport is a fully certificated air carrier airport. The airport also provides FBO services for general aviation including fueling and catering. It is the home to charter airlines, aircraft maintenance facilities, a restaurant, fire/rescue services, mosquito control, car rental agencies, the Collier County Sheriff’s Aviation Unit, flight schools, the Humane Society, and over 40 additional aviation and non-aviation businesses. The airport encompasses approximately 732 acres of land, approximately two miles northeast of Old Naples with convenient access to major roads and Interstate-75. POLITICAL-GOVERNMENTAL FACTORS The county government is headed by a Board of Commissioners. There are five commissioners, each assigned to a specific geographical area within the county. A County Manager coordinates most of the departments including county services, public services, community development/environmental services, utilities and transportation. The county is currently experiencing a decline in revenues which will result in future capital improvement plans being significantly cut back. Additionally operating expenses are under increasing pressures due to legislative mandates from the state, escalating costs of property insurance and health benefits, and the overall economic downturn. Collier County has experienced a change of 1.73% in budget between FY 2018 and FY 2019. The FY 2019 total net county budget is now $1,189,243,500. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 25 Education: The Collier County public school system currently contains a total of 56 schools with 45,000 students and 3,200 teachers. Collier County averages 2,700 graduates per year. The below chart shows more detail with regards to the public schools system. Collier County is home to several colleges and universities. As mentioned, Ave Maria University is a newly established Catholic University offering liberal arts oriented baccalaureate degrees as well as some graduate degree programs. The county is also home to branch campuses of Florida Southwestern State College and Florida Gulf Coast University. Collier County has a high level of education attainment compared to other counties in Florida and compared. Collier County has 32% of their people attain a bachelor’s degree of higher compared to 27% in Florida and 29% in the United States. Only 14% of those within Collier County have less than a high school education. SOCIOLOGICAL FACTORS COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 26 Recreation: Collier County offers a vast variety of natural and historical attractions. Places to visit include the 52 acre Naples Zoo, Collier County Museum, Big Cypress National Preserve, Museum of the Everglades, Naples Botanical Gardens and many other reserves, museums, zoos, etc. Healthcare: Within Collier County there is the Naples Community Hospital, North Collier Hospital, Regional Heart Institute, NCH Wellness Centers and other various clinics. Being the largest county in Florida with a total area of 2,305 square miles its medical facilities manage to cover it all. Helicopter usage cuts critical minutes from transport time. 78.7% of those within Collier County have health insurance compared to 80.4% throughout Florida and 85.8% throughout the United States. The highest percentage of those without healthcare coverage from people making $50,000 and less. SUMMARY Collier County is located along the west coast of Florida along the Gulf of Mexico. The climate is sub-tropical with mild winters that allow for year round enjoyment of the many attractions this area offers. Collier County is a desirable destination for residents and non-residents alike. In spite of the many positives, portions of Collier County were greatly affected by the past housing debacle which resulted in a significant number of residential foreclosures, trends have been positive in most recent years though. While the current “improving” economic climate will keep commercial and residential development at bay in the short term, the availability of commercial vacant land, the county's numerous natural attractions, and the anticipated future population growth will bode well for this area over the long term. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 27 Collier County is considered to be a wonderful place to live. There are tremendous opportunities as far as employment is concerned in many different industries. The diversity of job opportunities spans a significant range from low income persons to jobs of very high income people as well. There are tremendous recreational facilities with numerous golf course, beaches and recreational parks, not to mention the significant amount of land that is federally held in conservation in the eastern portions of the county. The public school system is good and provides for a well-rounded public education for the students that reside within the county. NEIGHBORHOOD ANALYSIS Neighborhood Analysis: Neighborhood analysis is defined as: “The objective analysis of observable and/or quantifiable data indicating discernable patterns of urban growth, structure and change that may detract from or enhance property values; focuses on four sets of considerations that influence value: Social, economic, governmental and environmental factors.” Source – The Appraisal Institute, The Dictionary of Real Estate Appraisal, Sixth Edition, Chicago Appraisal Institute, 2010. Market Area Map Market Area: Market area is defined as: “The geographic region from which a majority of demand comes and in which the majority of competition is located. Depending on the market, a market COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 28 area may be further subdivided into components such as primary, secondary, and tertiary market areas, or the competitive market area may be distinguished from the general market area.” Source – The Appraisal Institute, The Dictionary of Real Estate Appraisal, Sixth Edition, Chicago Appraisal Institute, 2010. The subject property is geographically some 16 miles east of State Road 29 in southern Collier County, seven miles south of Immokalee Road and 12 miles west to the Gulf of Mexico. A market area generally goes through four stages during its life cycle. These four stages include the “growth” stage which is the period during which the market area gains public favor and acceptance. The “stability” stage is the period of relative equilibrium without market gains or losses. The “decline” period is when there is diminishing demand in the area and the fourth and final stage is “revitalization” which is period of renewal, modernization and increasing demand. Based upon the observed conditions within the defined market area, it is the analyst's opinion the market area is in the growth stage of its market life cycle. Due to the subject’s location on the eastern edge of Collier County development, its lack of infrastructure, supporting services and facilities we have stated this area is in the growth stage. It is in the infancy phase of the growth stage. There is limited development east of the subject property at this time. Scattered development to the north and south of the subject property is the main reason for the beginning stages for the growth cycle. Preliminary plans for more development in eastern Collier County exists. These plans call for more residential development. Collier County is currently preparing for an overall expansion of 1,000,000 residents within the next 75 years. Currently at peak season there are 400,000 residents in Collier County. The Community of Golden Gate Estates is expected to grow by 10,000 people in the next 10 years. There is constant pressure on government agencies to rezone properties to allow for more development. Currently 77% of the lands in eastern Collier County cannot be developed. This causes more intensive growth on property that can be. An additional interchange to service Golden Gate at Interstate 75 is being considered. Collier Enterprises was in the planning stages of a development to be known as Rural Lands West off of Oil Well Road in recent years. The original plans for Rural Lands West contained a total of 16,000 acres of which 4,000 would be developed and 12,000 would be utilized for habitat and flow COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 29 ways. It was expected this community would add $2,600,000 to the tax base and another 10,000 residents. The community as planned would have parks, golf, commercial and retail shopping, entertainment, churches and schools. This was to be a self-sufficient community not significantly different from Ave Maria. The projected sell out of the community would be over a 20 year period. On January 4, 2019, Collier Enterprises withdrew the RLW Stewardship Receiving Area application from the Collier County review process. They are reportedly planning to develop the land into smaller villages. Today, generally lands to the east over to State Road 29 are undeveloped. This could be changing as noted above in the next few years. These lands include some portions of Golden Gate. The Florida Panther Nature Wildlife Refuge is here as well. South of Interstate 75 and east of State Road 29 is Picayune Strand State Forest and Fakahatchee Strand Preserve. There will be no further development in these locations. North of the subject up to the north neighborhood boundary Immokalee Road is the community Golden Gate Estates. Golden Gate Estates is a platted unincorporated part of Collier County. The growth pattern for Collier County over the last two decades has been on a whole from west to east. Many years ago Golden Gate Estates was referred to as swamp. Loggers initially came and removed the cypress. Lands were cleared and used for pasture. Golden Gate Estates was at one time known and the World’s largest subdivision. This community was projected to have 400,000 residents. Golden Gate Estates consumes 112,000 acres and has 880 miles of road and 183 miles of canals. The original developer was Gulf American Land Corporation. The majority of lots found within the Golden Gate Estates community are 1.25 to 2.5 acres. In 1974 the county zoned properties to require 2.25 acres to build a house. There are properties which are grandfathered in. Collier County took over maintenance of the roads and Golden Gate Estates from the developer who filed bankruptcy in 1978. In 1985 Golden Gate Estates was still significantly undeveloped and the Collier County Conservation Recreation Lands Program targeted some 42,000 acres in the southern part of the county for acquisition. This process is still underway. Golden Gate Estates will continue to grow as Collier County grows west to east the infrastructure will continually be improved by Collier County Government. Golden Gate City is located within the market area. Golden Gate City is an incorporated city located northwest of the subject property and has more intensive development with all COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 30 infrastructure in place as well as having a supporting commercial corridor along Golden Gate Boulevard. Most all goods and services exist here. Closest developments include; Forest Glen Golf and Country Club 3.7 miles southwest, Cedar Hammock 5 miles southwest, Naples Lake 6 miles southwest, Old Florida 5.5 miles north, Lamorada 7 miles north and Vanderbilt Country Club 6.5 miles northwest. Other new developments include; Hacienda Lakes, San Marino and The Golf Club of the Everglades. The closest access onto Interstate 75 is at the intersection of Collier Boulevard and Interstate 75 which is 3.5 miles west of the subject. At this intersection can be found a Cracker Barrel, a LaQuinta Inn, and a Fairfield Inn and a Spring Hills Suites. The White Lake Industrial Park subdivision is also in the northeast quadrant of the interchange. White Lake Industrial Park is a thriving industrial park currently home to Parker Hannefin Corporation previously known as Shaw- Aero. Additionally Roush Enterprises is located in the White Lake Industrial Park. Two miles west along White Lake Boulevard is a Collier County landfill as well as the location of Yahl Mulching and Recycling. The Collier County landfill referenced is located at 3730 White Lake Boulevard. This landfill is 310.97 acres and is a Class One solid waste management facility. It accepts solid waste six days a week. The landfill began operation at this location in December 1976. The landfill is operated by Waste Management, Inc. on behalf of Collier County. Two miles to the north of the subject is the Preferred Materials Aggregate Mind. It along with the Golden Gate Quarry and the Naples Asphalt Plant are part of a PUD called Warren Brothers. The western portion of the market area is the location of the most intensive heavy developed portions of Collier County where all goods and services and heavy residential development are located. These locations are west of Collier Boulevard and Interstate 75 and are a distance 4 to 10 miles from the subject. In this location can be found Fifth Avenue (high end retail), The Naples Zoo, most government offices and hospitals as well as Tin City. Police and fire protection are provided to the market area and specifically the subject location by Greater Naples Fire and rescue. Station 70 is located in the center of Golden Gate City some 4.5 miles northwest. Station 71 is located 5 miles to the north. The Sheriff’s Office District 2 substation is also located within the community of Golden Gate City. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 31 Legal Description: The subject property is legally described as follows: Assessed Value and Taxes: According to the Collier County Tax Collector’s records the subject property is identified by the following Folio Numbers also showing ownership names. On this chart we show the ownership name, Folio number, acreage, taxable value, assessed value and the tax liability. The subject property is calculated by Collier County to contain 927.88 acres. The taxable value of all parcels combined is $265,705. The assessed value of all eight parcels combined is $3,078,046. For the tax year 2019 the subject property paid $3,026.40 in taxes. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 32 Parcel #Ownership Folio #Acreage Taxable Value Assessed Value Tax Liability 1 Hussey, Jr. Francis & Mary P.341960003 313.94 $48,260 $757,000 $549.68 2 Hussey, Jr. Francis & Mary P.342040003 313.94 $51,820 $896,046 $590.23 3 Hussey, Jr. Francis & Mary P.328560002 260 $44,700 $1,235,000 $509.14 4 Hussey, Jr. Francis & Mary P.331320006 10 $47,500 $47,500 $541.02 5 Hussey, Jr. Francis & Mary P.328640003 10 $47,500 $47,500 $541.02 6 Hussey, Jr. Francis & Mary P.330480002 5 $23,750 $23,750 $270.53 7 Hussey, Sean Meade Trust 330840008 5 $725 $23,750 $8.26 8 HHH Investments Ltd.329240004 5 $725 $23,750 $8.26 9 Hussey, Jr. Francis & Mary P.329760005 5 $725 $23,750 $8.26 Totals 927.88 $265,705 $3,078,046 $3,026.40 OWNERSHIP - ACREAGE - ASSESSMENTS Only the Collier County Property Appraiser’s office can assess properties for taxation purposes. The actual tax liability is calculated utilizing the millage rate as set by the Collier County Commission then multiplying this by the assessed value of the property. Should the millage rate or the assessed value change for the site the tax liability would be different from that as reported herein. Ownership: The owner of the subject property is as follows. The ownership of the subject property is also listed above. Three different owners are combined for the subject property. These owners include Francis & Mary P Hussey Jr., The Sean Meade Hussey Trust as well as HHH Investments, Ltd. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 33 Section 3 – Site Description SITE PLAN Site Analysis: Site analysis is described in The Dictionary of Real Estate Appraisal, Sixth Edition as: “The identification and analysis of the characteristics that create, enhance, or detract from the utility and marketability of a site.” COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 34 Land Description: Land description is described in The Dictionary of Real Estate Appraisal, Sixth Edition as: “A compilation of detailed factual data, often including a legal description, other title and record data, and information on the pertinent physical characteristics of a parcel of land or a site.” This description is based upon conditions present as of March 20, 2020. We were unable to complete an inspection of the entire subject site at this time, however, we have used observations based on aerial photography and previous physical observation of the site. The total gross acreage equals 967 acres. This includes sending unit acres of 384 and receiving unit acres of 583. There are no neutral acres on this property. Transferable Density Rights (TDR) or Credits that are attributable to this property include a base density of 115 units on the receiving lands and a maximum density of 583 units on the receiving land. The sending lands account for a total of 230.4 TDR’s. These include a base TDR number of 76.8, early entry TDR’s of 76.8 and RMP TDR’s of 76.8. In order for the subject site to achieve a maximum density of one unit per acre on the receiving lands for 583 units, this calculation means that 238 units would have to be acquired from the marketplace. All of these calculations are assume the Rural Village option is not undertaken by the subject owner. Specifically, we are not considering the mining aspects of the property. Note, if the Rural Village option were undertaken after mining this would utilize a significant amount of ground area needed for development and therefore the Rural Village option is not sustainable for the subject property along with mining. Documentation between the property owner and our client Collier County indicates that the subject property is not identified as having any Army Corps of Engineer jurisdictional wetlands. The shape of the property is irregular. Generally, the property has a width of one mile. This is the distance along the southerly boundary. The distance from south to north along the easterly boundary is 8,580 feet or approximately 1.625 miles. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 35 We have performed a web-soil survey of the site to generally obtain information about the soils that are present. The survey shows seven different soils present on the site. The soil types present include Holopaw fine sand, Malabar fine sand, Chobee limestone, Oldsmar fine sand, Riviera fine sand, Fort Drum and Malabar fine sand, and Boca fine sand. Note, there are no depressional or muck soils present at the subject site. Historically speaking, the wettest observable areas on sites in the Southwest Florida area have depressional or muck soils. The wettest portions of the site have Oldsmar fine sand and Riviera fine sand, both of which are limestone sub strata. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 36 The Florida Land Use Coverage Code System (FLUCCS) identifies 11 different habitats on this site. A FLUCCS map is included for the reader’s consideration. By far the greatest percentage of the property is classified as having cabbage palm and cypress dominated habitat. There are additionally pine flatwoods and palmetto prairies. Some areas of Brazillian Peppers and Melaleuca infestation are present but none are significant. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 37 Utilities and services are considered next. Currently electricity is available to the site along with telephone service. There is no public water or sewer service to the specific subject property. According to the Collier County Government serving the subject property would require amending the Collier County Water-Sewer District boundary (CCWSD). The closest facilities are 1.3 miles to the west of the southwest corner. These services include a 10 inch water main and 2 inch force main which currently serves the county landfill. Two inch force main discharges to a four inch force main a quarter mile to the west. Collier County reported in recent years that they anticipate a large subdivision to the north and bordering the subject on its easterly and northeasterly side in the near future. This new development does consist of both RFMUO neutral and receiving lands. County water and wastewater service will eventually be extended to this property when it is developed. The County would not report a timeframe and so it is left with a possibility of water and sewer being located somewhere just to the north and east of the subject in the future but we do not know exactly when. Support services generally refer to fire, police and emergency response time. Closest fire, police and emergency services are located within the Community of Golden Gate City 4 to 5 miles northwest of the subject. The answer time is extended but not significant and does not adversely affect the subject. The subject site has no paved road access at this time. White Lake Boulevard extends from Collier Boulevard in an easterly direction. White Lake Industrial Park leads to the County landfill. White Lake Boulevard turns into Blackburn Road which runs along the north side of Interstate 75 to the southwest corner of the subject property. Blackburn Road currently is one lane, a dirt service and appears not to be County maintained. Based on the Settlement Agreement, we consider the subject to have legal and physical access along this one lane dirt road. This is approximately 6,700 feet of non-paved surface. The cost of building an acceptable road that could service a residential development is significant. Manmade improvements include such things as internal streets, curbs, walkways, vertical structures, sidewalks and utility infrastructure. The only manmade improvements include perimeter barbed wire fencing and cleared buggy paths. There are no wells or pumps. The property has never been farmed and has only been used for low density cattle production and recreational purposes. Reportedly, significant portions have been timbered. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 38 There is no impact on value or utility as it relates to surrounding hazards. The County landfill which is located one mile to the east of the subject is somewhat of a nuisance in terms of potential residential development. Mining/Aggregate Analysis It has been the specific purpose of the Collier County Government to have this appraisal represent the value of the real estate only. Reportedly, the value of the underlying aggregate is significant and is beyond the scope of this appraisal assignment. We have in no way considered any impact positive or negative on the value of the real estate associated with the oil, gas and mineral rights that may run with the title. Checking other mine excavation projects in Collier County, we note a total of 12 active mines at the present time. These active mines are known as 1) Seacon Pit, 2) Willow Run Pit, 3) Sunniland Mine, 4) Sunny Winchester Lake, 5) State Road 846 Earth Mine (Jones Mine) 6) Logan Lakes II, 7) Golden Gate Quarry, 8) East Naples Mine Phase II, 9) The East Naples Mine Phase 1, 10) Immokalee Sand Mine (Stewart Earth Mine), 11) Immokalee Sand Mine, and 12) South Grove Lake. Also, there were currently reported to be no known new pending mine excavation applications at the time. Settlement Agreement Analysis A settlement occurred in the 20th Judicial Circuit of Collier County, Florida in February 2013 between the owners of the subject property and the Collier County Government. The property owner filed a claim under the Bert Harris Act challenging the Rural Fringe Amendment which significantly impacted the future development rights of this property. The settlement resulted in an exchange of development rights between two large parcels in the Rural Fringe Mixed Use Development area (RMFUD). It changed 578 acres of the Hussey (subject) property previously determined to be sending lands to receiving lands. The second component of the agreement changed 578 acres of the land known as the “846 lands” from receiving lands to sending lands. Thus the Hussey property having a total of 1,110 acres would have 578 acres receiving lands and 523 acres sending lands. Early entry TDR’s credits were extended as well. The Hussey property deeded a 180 foot right of way located within 100 feet of the southerly boundary of the site along the north side of the Interstate 75 right of way. This 180 foot right of way contained 22.318 acres. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 39 The owner was compensated at a rate of $2,500 per acre for the right of way. The credits associated with this right of way area run with the Hussey land. In other words the Hussey land includes the 22.18 acres (ROW) in density calculations. The subject property must follow preservation and natural vegetation retention standards with the CCME. No mineral rights were transferred from the 846 lands to the Hussey lands. The “846 lands” consisted of 2,576 acres which now includes 578 acres sending and 1,998 receiving. Transferrable Density Rights (TDR) Discussion The concept of density transfer from one parcel to another stems from Government’s need to protect ultimately the health and safety of its inhabitants. In Southwest Florida some lands are suitable for development and others such as swamps and heavy growth hammocks holding the key to water retention for aquifers and maintaining wildlife habitat are not. Transferring Density creates a system where the property owner can preserve the sensitive land AND receive compensation for their efforts. Underlying these Transfer Density Rights is the concept that it is unconstitutional to take away development rights without paying for them thus the Bert Harris Act came to be and was the legal basis for the Hussey lawsuit and settlement. In a TDR the right is transferred and any units that may have been developed on a particular property can be moved and developed to another better suited location. The TDR process is being attempted in many parts of the country and surely the country as a whole is learning how this system can best benefit the residents of impacted communities. Conceptually the TDR process can be described with the Bundle of Rights theory. Bundle of Rights Theory is defined in The Dictionary of Real Estate Appraisal, Sixth Edition as: “The concept that compares property ownership to a bundle of sticks with each stick representing a distinct and separate right of the property owner, e.g., the right to use real estate, to sell it, to lease it, to give it away, or to choose to exercise all or none of these rights.” In this comparison the Transfer of Density or Development Rights eliminates the open use of the property, in other words the right to develop. Transfer Development Rights can be compared to a Government agency acquiring a conservation easement on a particular site. In each case the Government purchases the owner’s rights of future development and in turn the property owner COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 40 must maintain the property at a very high standard. The lands under consideration in this appraisal assignment are designated as sending lands and/or receiving lands. Typically, sending lands are more environmentally sensitive and receiving lands are more suited for development. Theoretically TDR values can fluctuate depending upon how close a receiving site is to goods and services amenities and existing development patterns (typical real estate supply/demand characteristics). The Transfer of Density Rights in high demand locations will/should generate higher values than lands in remote undesirable areas. The Collier County Transfer of Development Rights Program located within the Rural Fringe Mixed Use District was adopted in February 2004. TDR bonus amendments were adopted in September 2004. The TDR program establishes a method for conservation and protection of some of the most environmentally sensitive land in the county. This process theoretically allows property owners of these lands to recover lost value and development potential through an economic process allowing them to transfer their density units or rights to lands that are more appropriate for development. The TDR program has at its core the Collier County Growth Management Plan and their focus on future growth and development, especially relating to sewer, water and transportation needs. Collier County is the registrar for buyers and sellers of TDR credits. Collier County maintains an activity log which tracks all TDR’s in process. The below chart shows Transfers of TDR’s as of the Annual Audit, December 2019. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 41 Collier County has established a minimum based TDR Credit of value $25,000. The current price for bonus TDR’s relating to Early Entry, Restoration and Maintenance and Conveyance are all negotiable through the buyer and seller and truly market derived while the establishment of a base credit value of $25,000 is not market support. Because most all transactions include both base AND bonus credits the ultimate price paid generates a market price. They can be compared to government impact fees. Developers eventually factor in impact fees in what they pay for raw land and what they can sell a finished product or home for. The same goes for TDR’s, buyers factor the base credit cost of $25,000 into the negotiations of blended TDR purchases including base and bonus credits As to the location in Collier County where TDR Credits can be used, they can be used within the Rural Fringe Mixed Use District, receiving lands. TDR Credits can also be used in non-Rural Fringe Mixed Use Districts, urban residential fringe. The inherent density associated with receiving lands is one dwelling unit per five acres. The maximum density through the TDR process is one dwelling unit per acre with the exception that it is higher in Rural Village locations. The minimum project size for receiving lands is 40 acres. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 42 As to the Urban Residential Fringe, one can only use TDR’s from sending lands located within one mile of the urban boundary. The maximum density increase in the Urban Residential Fringe area is one dwelling unit per acre. The total allowable density is 2.5 dwelling units per acre. As to sending land credits in the Collier County TDR process, there are four types of TDR Credits. The credits include the base and three bonus credit densities. The base TDR Credit is one TDR per five acres. If legal nonconforming a lot less than five acres which existed prior to June 22, 1999, then the density is one TDR Credit. An existing dwelling on a property or plans for future dwelling are not a problem subtract one TDR. “Bonus Density One” is known as Early Entry. Early Entry bonus density is one additional credit per base TDR Credit severed. Early Entry deadlines have been extended to September 2019. The formula for Early Entry bonus density calculation is early entry bonus credits equals the number of base TDR Credits, a simple one to one computation. “Bonus Density Two” is known as Restoration and Maintenance Plan or RMP. RMP Credits are based upon one credit per TDR Credit severed. Restoration and Maintenance TDR’s require an RMP plan that has been accepted by the County. The formula for Restoration and Maintenance bonus two credits is the number of base TDR Credits times percent sign subject to approved RMP. RMP Credits = Number of base TDR Credits X % property subject to approved RMP. Conveyance is Bonus Density Three. Conveyance TDR’s are one credit per TDR Credit severed. If the land is conveyed in fee simple to a federal state or local agency as a gift. A conveyance credit is possible. Conveyance Credits require a restoration and management plan (RMP) that has been accepted by Collier County. The formula for Conveyance Credit is: Conveyance Credits = Number of base TDR’s X % property subject to approved RMP and conveyed. Lastly, entities which are authorized to accept conveyance of sending lands properties are as follows: The Collier Soil and Water Conservation District, Conservation Collier, Corkscrew Sanctuary, Florida Department of Environmental Protection and South Florida Water Management COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 43 District. We are told these entities are not in the market of purchasing sending conveyance credits at this time. Zoning/Land Use By virtue of the 2013 settlement agreement between Collier County and the subject property land owner the subject property which is subdivided and contains 578 acres of receiving lands and 348 acres of sending lands. An additional 5 acre parcel under the same ownership is considered and is classified as receiving lands, which results in 583 acres or receiving lands total for the subject. The zoning for the subject property includes A-RFMUO sending lands – NBMO and A-RFMUO receiving lands – NBMO. These are descriptive terms for Rural Fringe Mixed Use Overlay sending lands and North Belle Meade Overlay as well as Rural Fringe Mixed Use Overlay receiving lands. The land use for the subject property is identified as RFMUD within the North Belle Meade Overlay and RFMU District receiving lands within the North Belle Meade Overlay. A complete description of the A classification, the RFMU receiving lands classification, the RFMU sending lands classification as well as the North Belle Meade Overlay are located within the addenda of this report. Below you will find some descriptive maps would provide for a clearer understanding of the location and surrounding zonings and land use as they relate to the subject property. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 44 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 45 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 46 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 47 Subject Property Photographs View: Looking toward site from access road Photograph date: March 20, 2020 Taken by: Michael Jonas COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 48 Section 4 – Highest and Best Use Analysis The principal of highest and best use is defined: “That reasonably probable use and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value.” The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability. • Permissible Use (Legal) - what uses are permitted by zoning and deed restrictions on the site in question? • Possible Use- to what uses is it physically possible to put the site in question? • Feasible Use-, which possible and permissible uses will produce any net return to the owner of the site? • Highest and best Use- among the feasible uses, which use will produce the highest net return or the highest present worth?” The cornerstone of every appraisal is highest and best use analysis. It is THE basis to wit the actual valuation is based. In performing the highest and best use analysis the appraiser must base the highest and best use conclusion on the property characteristics that exist as of the effective date of appraisal or identify any hypothetical conditions and/or extraordinary assumptions that are being employed. The office of Real Property Management of Collier County has requested an estimate of market value based on the “as is” fee simple ownership as of the effective date of appraisal. The effective date of appraisal is March 20, 2020. Please be advised this highest and best use does not give any consideration to oil, gas, mineral rights or any value associated with the aggregate on the subject site. Physically Possible Uses: First, the appraiser will consider the physically possible aspects of the subject property. The subject property contains 967 acres. The total acreage includes 583 acres of receiving lands. These acres are to the north end of the site. In addition, the subject property contains 384 acres of sending lands. This is the southerly portion of the subject property. The site COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 49 has been partially cleared. Reportedly, there are no Army Corps of Engineer designated wetlands on the site. We noted during the inspection significant standing water. There are wet portions of the site. Access to the property is by a one lane dirt road which extends from White Lake Boulevard. This access is privately maintained. The property is bordered by other wooded lands and Interstate 75 to the south. Electricity and telephone utilities are available. Public water and sewer are a significant distance from the site. The uses which are physically possible on the property include a wide range of uses including residential, commercial, industrial, agriculture, recreational and mining, which is not considered in this analysis. Legally Permissible: Each section of highest and best use analysis will either strengthen or weaken the uses defined in the previous sections, in this case the physically possible uses. That should be the case here. Agriculture use of the property will remain a legal use. The subject property is substantial enough in size to be economically viable. The property has not been cleared for farming purposes. It is partially cleared based on timbering that was done and is used for low density cattle production. The current zoning and land allows for residential and agricultural uses. Commercial and Industrial are not considered as legally permissible under legal and zoning. There are no legal aspects of the property which would eliminate recreational uses. Therefore, those uses which remain legally permissible do include residential and agriculture as well as recreational. Economically and Financially Feasible: Agriculture and recreational uses while physically possible and legally permissible do not meet the test of economic and financially feasible. Land prices in this part of Collier County have exceeded what are typically paid for agriculture properties in other areas of Southwest Florida. Residential development continues to be the economic driver for jobs, population increases and the need for additional commercial industrial properties. We do believe the subject property has current residential development potential. However, the access and utilities are physical characteristics that will have to be overcome and ultimately affect the value of the raw land as it exists today. Based upon the settlement agreement the subject property can be developed with 583 units, 115 of these units coming from the receiving lands, 230 additional units coming from the southern portion of the subject or the sending lands requiring an additional 238 units to be purchased in the marketplace bringing the overall density to 583 units on the 583 acres of receiving lands. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 50 Higher density could be established on this property through the Rural Village option. However, the Rural Village option would utilize a significant amount of the property for mining purposes and would create large lakes. It would therefore eliminate the potential of reaching the maximum density allowed under the Rural Village concept. We believe from an economic and financial perspective, that use which represents the highest and best use of the property is potentially for the property to be developed with a 583 acre future development on the receiving lands with the sending lands ultimately being used for some type of passive recreational or agricultural use. Maximally Productive Use: The maximally productive use for the subject property is for the development as previously stated with a residential development making maximum utilization of receiving lands agriculture or recreational use of the sending lands ultimately and the residential development being developed around a mining project that occurs first. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 51 Section 5 – Valuation of the Subject VALUE ESTIMATE BY THE COST APPROACH Cost Approach is defined as: “A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive, deducting depreciation from the total cost, and adding the estimated land value. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised.” There are no improvements of significance on the subject property. The Cost Approach does not apply. VALUE ESTIMATE BY THE INCOME APPROACH The Income Approach is defined as “A set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate”. The Income Approach is widely applied in appraising income-producing properties. Anticipated future income and/or reversions are discounted to a present worth figure through the capitalization process. Since vacant land is typically not purchased for its ability to generate income, the Income Approach does not apply. VALUE ESTIMATE BY THE SALES COMPARISON APPROACH Sales Comparison Approach is defined as: “A set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale prices of the comparables based on the elements of comparison. The sales comparison approach may COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 52 be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales are available.” The Sales Comparison Approach involves the comparison of properties similar to the subject, analyzing the differences between the sales and the subject property and correlating the results of the comparison of the sales to the subject into a value indication. This Sales Comparison Approach involves somewhat unique characteristics. As previously noted the subject property is 967 gross acres. The 967 acres is comprised of 583 acres that have been designated by Collier County as receiving lands through the settlement agreement. The southerly balance of the property containing 384 acres has been designated as sending lands. The process employed in valuing the subject property based on TDR units is to locate sales of TDR transactions and compare those sales to the receiving and TDR sending lands of the subject. We have documented a highest and best use for the entire subject property being 583 units all to be developed on the receiving lands. The receiving lands themselves generate a total of 115 credits or TDR’s. This leaves 463 credits to be obtained elsewhere in order to establish the maximum density of one unit per acre. 230 of these needed credits can be obtained from transferring the maximum TDR units from the sending lands to the receiving lands. These credits from the receiving lands can be generated by base TDR credits of 76.8, early entry credits of 76.8 and RMP TDR credits of 76.8. This mathematical process leaves 238 units or TDR credits to be obtained from other locations. The cost or value associated with these 238 additional units is an expense or cost against the retail value of the property at 583 units. The process employed utilizes TDR sales and a comparison of those TDR sales to the subject. This will result in a value of a TDR credit. The TDR value is established by a combination of a regulated cost by Collier County for base credits of $25,000. All other bonus credits are negotiable. The fact that the overall TDR value includes an established price by Collier County and a negotiated price for bonus credits ultimately results in a market price for a TDR credit. We call this, in this analysis a blended value or blended price per TDR. The TDR sales included include mostly blended transactions and one bonus density only transaction. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 53 The first component of the overall value by TDR analysis is to estimate the overall value of the property for the 583 units at the blended TDR value. From this will be subtracted the value of TDR credits that need to be acquired to reach the maximum of 583. This value represents the Value of Receiving Lands by TDR analysis. The second step in the TDR analysis is to value the sending lands. The sending lands will have been stripped of their development rights by transfer of the density from the subject sending lands to the subject receiving lands. The sending lands after being stripped of development rights still have value. The value of the sending lands is somewhat similar to the value of a remainder parcel which has an established conservation easement on it. Conservation easements typically restrict all future development. Properties with conservation easements do have remaining value and can be used for purposes such as agriculture and recreation. The subject sending lands can also be used for agriculture purposes such as low-density cattle grazing. The value of the sending lands after being stripped of development rights is estimated by comparing the sending lands with agriculture sales in the Collier County and surrounding marketplace which we have located and are analyzed on a value per acre basis. The value of the sending lands is further supported by utilizing remainder parcel sales where conservation easements exist, developing the percentage the remainder parcel conservation easement sale represents in comparison to the fee value of that same parcel. A chart will be provided for the reader’s consideration that will show a number of conservation easement remainder sale transactions. From those sales a percentage for remainder parcel value is established and compared to the gross acre value of the subject property as a fee simple tract. These two techniques lend reliable support to the sending lands value. The summing of the values of the receiving lands by TDR analysis and the value of the sending lands by sales comparison results in a market value estimate for the subject property. In order to provide added support for the market value of the subject property we have also performed a typical Sales Comparison Analysis. In this Sales Comparison Analysis the total 967 acres of the subject property is compared to fee simple transactions of large acreage tracts with similar characteristics to the subject. A market value is then established for the subject property on a fee simple basis. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 54 The last step in the Sales Comparison Analysis is to correlate the value estimated by the TDR analysis and Sales Comparison analysis into one final value conclusion. Valuation of Receiving Lands The first phase is the TDR analysis. Below you will find an TDR sales location map, followed by sale write-ups for TDR sales and an analysis grid of the TDR sales. TDR SALES LOCATION MAP TDR Sale 6 TDR Sale 5 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 55 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 56 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 57 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 58 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 59 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 60 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 61 Criteria Subject TDR Sale 1 TDR Sale 2 TDR Sale 3 TDR Sale 4 TDR Sale 5 TDR Sale 6 Project Name Hussey/HHH Ranch Hacienda Lakes San Marino Golf Club of the Everglades Golf Club of the Everglades San Marino Golf Club of the Everglades Year of Transfer 2020 2012-2013 2013-2018 2009-2018 2015 2018 2018 Total # of Units (Base & Bonus)238.00 418.96 135.85 395.00 126.28 60.00 162.72 Sale Price N/A $6,284,488 $1,921,900 $5,113,280 $1,894,200 $860,000 $2,278,080 Blended Price per Unit n/a $15,000 $14,147 $12,945 $15,000 $14,333 $14,000 Bonus Units Only Bonus Units Only Bonus Units Only Property Rights Transferred Development Rights Development Rights Development Rights Development Rights Development Rights Development Rights Development Rights Financing N/A Cash Cash Cash Cash Cash Cash Market Conditions Mar-20 $1,539,700 $302,699 $1,163,271 $331,485 $60,200 $159,466 Adjusted Sale Price N/A $7,824,188 $2,224,599 $6,276,551 $2,225,685 $920,200 $2,437,546 Adj. Price per Blended Unit N/A $18,675 $16,375 $15,890 $17,625 $15,337 $14,980 Location SE Collier S. Collier S. Collier E. Collier E. Collier E. Collier E. Collier # of Units 238 418.96 135.85 395.00 126.28 60.00 162.72 Utilities Electricity, Telephone Full Public Full Public Electricity, Telephone Electricity, Telephone Electricity, Telephone Electricity, Telephone Access Dirt Road Paved Paved Paved Paved Paved Paved Location Average Similar Similar Similar Similar Similar Similar # of Units Average Similar Similar Similar Similar Similar Similar Utilities Average Superior Superior Similar Similar Superior Similar Access Fair Superior Superior Superior Superior Superior Superior Overall Rating Superior Superior Superior Superior Superior Superior TDR Sales Analysis - Qualitative TDR Sales Analysis The above sales sheets and analysis chart show a comparison of the TDR transactions to the subject property. You will see different criteria considered in column one, the subject property in column two followed by the TDR sales in the remaining columns. You will note the project name, year transferred, total number of TDR’s including base and bonus credits, the price paid for those credits as well as price per unit. In the second section the analyst gives consideration to property rights, transferred financing, market conditions, which is an adjustment made for the passing of time between the date of sale and the date of appraisal. This indicates an adjusted sales price for each transaction as well as an adjusted blended price per unit. In section three the analyst notes the location, number of units, utilities and access for the sale properties and the subject. The last section of the analysis is a qualitative comparison of each of the transactions with the regards to location, number of units, utilities and access. The results of this grid are a qualitative rating for each of the sales as compared to the subject. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 62 Sale 1 is a 2012/2013 transaction involving the transfer of 418.96 total units including base and bonus. The price paid was $6,284,488 or $15,000 per blended unit. This transaction was for the development rights. The transaction is analyzed on a cash basis without any impact caused by financing. A market conditions adjustment is made. Property values in Collier County have shown over the years from 2013 to 2020, with more stable values in the most recent year. We have considered a nominal adjustment for time or market conditions for these TDR sales. As the market gains a better understanding of the TDR process, we do believe that TDR transactions will mirror the overall market in terms of market conditions. All sales are adjusted on the basis of about 3.5% per year. The market conditions adjustment resulted in an adjusted price for sale number one of $ $7,824,188 or $18,675 per blended unit. A comparison of this sale to the subject on the basis of location, number of units, utilities and access, results in a similar rating for location, number of units and a superior rating for utilities and access. Overall Sale 1 is rated as superior. Sale 2 is the San Marino PUD. The TDR transactions occurred over the time period between 2013 and 2018. 135.85 base and bonus credits transferred. The price paid was $1,921,900 or $14,147 per unit. Sale 2 is a transfer of the development rights through the TDR process. The sale is analyzed on a cash basis. A market conditions adjustment of 3.5% per average number of years results in an adjusted sales price of $ $2,224,599 or an adjusted price per blended unit of $16,375. Sale 2 is compared to the subject on the basis of location, number of units, utilities and access. Sale 2 receives a similar rating for location and number of units and a superior rating for utilities and access. Overall Sale 2 is rated as superior. Sale 3 is the Golf Club of the Everglades. These TDR transfers occurred between 2009 and 2018. For market conditions purposes we are utilizing an average of time in years for the 232.28 base and bonus credits transferred. The price paid was $ $2,835,200 or $12,206 per blended unit. Sale 3 represents a transfer of TDR’s or development rights. This transaction is analyzed on a cash basis. A market conditions adjustment of 3.5% per average number of years results in an adjusted sales price of $5,113,280 or and adjusted price per blended unit of $12,945. Sale 3 is compared to the subject property on the basis of location, number of units, utilities and access. Sale 3 is rated as similar in location and number of units as well as utilities. Sale 3 is rated as superior with respect to access. Overall, Sale 3 is superior to the subject property. Sale 4 is one transaction among a number of transactions that make up Sale 3. Sale 4 is a transaction involving bonus units only. 126.28 bonus units reportedly transferred for $1,894,200. This equals a price of $15,000 per bonus unit. This is the transfer of TDR’s or development rights COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 63 and is analyzed on a cash basis. The sale received a 3.5% annual time adjustment resulting in an adjusted sales price of $2,225,685. This equals an adjusted price per blended unit of $17,625. Comparing Sale 4 to the subject property on the basis of location, number of units, utilities and access, results in a similar rating for location, number of units and utilities and a superior rating for access. Overall Sale 4 is rated as superior to the subject. Sale 5 is one transaction among a number of transactions that make up Sale 2. Sale 5 is a transaction involving bonus units only. 60.00 bonus units reportedly transferred for $860,000. This equals a price of $14,333 per bonus unit. This is the transfer of TDR’s or development rights and is analyzed on a cash basis. The sale received a 3.5% annual time adjustment resulting in an adjusted sales price of $920,200. This equals an adjusted price per blended unit of $15,337. Comparing Sale 5 to the subject property on the basis of location, number of units, utilities and access, results in a similar rating for location, number of units and a superior rating for access and utilities. Overall Sale 5 is rated as superior to the subject. Sale 6 is one transaction among a number of transactions that make up Sale 3. Sale 6 is a transaction involving bonus units only. 162.72 bonus units reportedly transferred for $2,278,080. This equals a price of $14,000 per bonus unit. This is the transfer of TDR’s or development rights and is analyzed on a cash basis. The sale received a 3.5% annual time adjustment resulting in an adjusted sales price of $2,437,546. This equals an adjusted price per blended unit of $14,980. Comparing Sale 6 to the subject property on the basis of location, number of units, utilities and access, results in a similar rating for location, number of units and utilities and a superior rating for access. Overall Sale 6 is rated as superior to the subject. Conclusion of TDR Analysis – Valuation of Receiving Lands This analysis has utilized TDR sales as provided by the Collier County Planning Department. These transactions have been analyzed on a blended unit basis with the exception of three sales which were bonus unit only sales. The adjusted blended per unit values for three blended sale comparables is from $15,890 to $18,675 per blended unit. The three bonus sale only transactions have an adjusted price from $14,980 to $17,625 per unit. All sales have an overall rating of superior. The subject property’s value for a blended TDR credit which includes Base, Early Entry, RMP and the consideration of conveyance bonuses will fall in a range between $15,800 and $18,700. A COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 64 difference will exist in associated values for receiving lands and sending lands. The reason for the difference between the value of a TDR credit associated with receiving lands and a TDR credit associated with sending lands is in the consideration of the time and effort to bring the TDR into existence in a receiving area versus a sending area and the fact that receiving areas are the ultimate location of the unit developement. Once TDR’s are established in a receiving area, they are closer shall we say to a finished product than are TDR credits that are within a sending area. We can theoretically consider the difference between the value of a TDR receiving credit and the value of a TDR sending credit as costs and entrepreneurial profit associated with moving the TDR further to the fully entitled product. It is my opinion the value of a blended TDR credit associated with receiving lands is $16,000 per unit and the value of a TDR credit associated with the purchasing TDR’s from a sending land is $14,000 per credit. Based upon the above information we can estimate the market value of the 583 units to be located on the 583 acres of receiving lands valued on a blended TDR basis. The computation of multiplying 583 units by a value of $16,000 produces a market value estimate without further adjustments of $9,328,000. In previous section of this report we have determined that in order to reach the maximum density of 583 units the subject will be required to go into the marketplace and purchase a total of 238 of those units. Based upon our value of $14,000 per blended TDR, which the 238 units could be, results in an adjustment of $3,332,000. Subtracting the cost of acquiring 238 units from the gross value of 583 units produces a value for the receiving lands by TDR analysis of $5,996,000. Valuation of Sending Lands The next step will be valuing the sending lands. On the following page you will find an agriculture land sales location map, sale write-ups for agricultural land sales and an analysis grid. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 65 AG Land Sales Map COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 66 COMPARABLE 1 Property Reference: Property Type: Farm Land Agriculture Address: Off Pringle Lane (6157 Pringle Lane) Immokalee, FL 34142 County: Collier Location: North of Oil Well Road, just east of SR 29. STRAP/ID: 00232160006 Grantor: CenterstateBank of Florida Grantee: Oakes Farms, Inc. Legal Data: Sale Date: September 27, 2016 Sale Price: $550,000 Sale Price per Sq. Ft.: $0.10 Sale Price per Acre: $4,270 Recording: 5318/2095 Interest Conveyed: Fee Simple Deed Conveyed: Warranty Deed Land Use: A-RMUO Zoning: A-MHO-RLSAO-ACSC-ST Highest and Best Use: Agriculture CNA Data # 962 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 67 Site Data: Site Dimensions: Irregular Site Size: 5,610,528 square feet, 128.800 acres Shape: irregular Topography: Generally level Corner/Visibility Influence: N/A Utilities: Electricity, Telephone, no water or sewer Access: Dirt Road Wetlands/Uplands: Minimal Soils: Oldsmar, Boca, Wabasso Sale Analysis: Sale Price: $550,000 Financing: Conventional Price per SF: $0.10 Price per Acre: $4,270 Sale Confirmation: Verification: Colllier Ag appraiser and Chuck Smith, Landqwest, Verifying Appraiser: J. Lee Norris MAI, SRA, July 07, 2017 Sale History: No other recent noted in the public record Comments: This is a tract of farmland previously used for citrus. The site is all uplands, ditched and diked. Price is reflective of the low end of the market range. This is a bank sale. Our file 17-75 CNA Data # 962 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 68 COMPARABLE 2 Property Reference: Property Type: Farm Land Vacant Land Address: 3440 SR 82 Immokalee, FL 34142 County: Collier Location: South side of SR 82 about one mile west of SR 29 STRAP/ID: 00063520006, 00063440005 Grantor: SR 82 Land Holdings LLC Grantee: CCW82, LLC Legal Data: Sale Date: March 15, 2017 Sale Price: $1,500,000 Sale Price per Sq. Ft.: $0.17 Sale Price per Acre: $7,481 Recording: OR Book 5374 Page 645 Interest Conveyed: Fee Simple Deed Conveyed: Warranty Deed Land Use: A-RMU Zoning: A-MHO-RLSAO Highest and Best Use: Agriculture CNA Data # 960 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 69 Site Data: Site Dimensions: Irregular Site Size: 8,733,780 square feet, 200.500 acres Shape: Irregular Topography: Generally level Corner/Visibility Influence: Yes Utilities: Electricity and telephone, no water or sewer Access: Paved Highway Wetlands/Uplands: Uplands 98%/Wetlands 2% Soils: Immokalee, Pomello, Oldsmar, Basinger, Chobee Sale Analysis: Sale Price: $1,500,000 Financing: Cash indicated Price per SF: $0.17 Price per Acre: $7,481 Sale Confirmation: Verification: Mark Rivlin attorney for seller, 305-661-4600 Verifying Appraiser: J. Lee Norris MAI, SRA, July 07, 2017 Sale History: The property sold for $900,000 in July of 2013. Comments: The sale was confirmed by the attorney representing the seller. The property had been on the market for an extended period of time. Most recent use was for crop production. There was no residual crop value or equipment in the transaction and no signifcant improvements. The location does lend itself to other uses than strict agricultural use. Less than 2%of the soils are of wetland type. Seller financing was part of the transaction. Our File Number: 17-75 CNA Data # 960 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 70 COMPARABLE 3 Property Reference: Property Type: Wetlands Vacant Land Address: 17373 State Road 29 Naples, FL 34142 County: Collier Location: West side of State Road 29; approximately four miles south of Interstate 75 STRAP/ID: 0052400003 Grantor: Shawn Lessor Grantee: James T. Naugle and Carol Lisa Phillips Legal Data: Sale Date: June 01, 2018 Sale Price: $900,000 Sale Price per Sq. Ft.: $0.13 Sale Price per Acre: $5,734 Recording: OR Book 5525 Page 542 Interest Conveyed: Fee Simple Deed Conveyed: Warranty Deed Land Use: Conservation Designation Zoning: A-ACSC/ST Highest and Best Use: Residential/Passive Recreation CNA Data # 1320 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 71 Site Data: Site Dimensions: 1,350' X 5,065 ' (Dimensions are approximate) Site Size: 6,837,613 square feet, 156.970 acres Shape: Rectangular Topography: Level with approximately 16 acres filled Corner/Visibility Influence: No/Average Utilities: Electricity and telephone Access: State Road 29 Wetlands/Uplands: Uplands 15.7 acres (10%)/Wetlands 141.27 acres (90%) Soils: Ochopee fine sandy loam, low (99%); Hilol, Jupiter, Margate fine (1%) Sale Analysis: Sale Price: $900,000 Financing: Cash to Seller Price per SF: $0.13 Price per Acre: $5,734 Sale Confirmation: Verification: Tyler Manring, 239-289-6915 Verifying Appraiser: Bill Carlson, MAI, SRA, October 08, 2018 Sale History: No known arm's length transactions during preceding five years Comments: The property had been listed for approximately one year for $1,200,000 and had one offer for $900,000 which was rejected by the owner. The listing expired and was re-listed with another broker for $1,100,000 for approximately four months prior to being placed under contract for $900,000. The transaction was part of a 1031 exchange and both the broker and buyer indicated the transaction price was arm's length and represented market value. The previous owner had filled approximately 16 acres from a lake dug on site. This was most probably done without a permit based on information provided by both of the listing brokers. Improvements include a single family dwelling containing 2,214 square feet built in 1987. Additional improvements include a guest cottage, pole barns, stables, riding paddock and other small out buildings. The property was purchased to be a weekend retreat. The listing broker indicated the improvements did have some contributory value but was unable to provide an allocation of value as the value of the improvements would be different for different buyers. This was reported as an arm's length transaction at market value. Our File Number:18-111 CNA Data # 1320 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 72 COMPARABLE 4 Property Reference: Property Type: Agriculture Vacant Land Address: SW Corner of Oil Well Road and SR 29 Immokalee, FL 34142 County: Collier Location: SW Corner of Oil Well Road and SR 29 STRAP/ID: 00233520001, 00233560207 Grantor: Barron Collier Partnership, LLLP Grantee: Sunniland Family Limited Partnership Legal Data: Sale Date: September 21, 2018 Sale Price: $863,500 Sale Price per Sq. Ft.: $0.13 Sale Price per Acre: $5,556 Recording: OR 5555/1858 Interest Conveyed: Fee Simple Deed Conveyed: Spec. Warranty Deed Land Use: Rural Lands Stewardship Area Zoning: A-MHO-RLSAO Highest and Best Use: Residential Developement CNA Data # 1678 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 73 Site Data: Site Dimensions: Irregular Site Size: 6,770,095 square feet, 155.420 acres Shape: Irregular Topography: Generally level at grade Corner/Visibility Influence: Average Utilities: Well & Septic Access: Average access from Oil Well Rd Wetlands/Uplands: More than 90% Uplands Soils: N/A Sale Analysis: Sale Price: $863,500 Financing: Cash to seller Price per SF: $0.13 Price per Acre: $5,556 Sale Confirmation: Verification: Austin Howell, Seller Representative, Verifying Appraiser: Angelica Jordan, April 07, 2020 Sale History: No other sales noted in the three years prior Comments: This is the sale of a land parcel in Immokalee, with zoning of Rural Agricultural District including a Mobile Home Overlay and Rural Lands Stewardship Area Overlay. The buyer is the adjacent property owner, who purchased additional land for a residence. There was reportedly interest from another party which would have potentially sold for more and the listing agent stated that this land was not marketed and would likely have been sold for a much higher price on the open market. The purchaser was not a related party but someone who the seller had worked with for a different property and they were provided a discount on the property. CNA Data # 1678 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 74 COMPARABLE 5 Property Reference: Property Type: Agriculture Vacant Land Address: 19720 Immokalee Road Naples, FL 34120 County: Collier Location: South side of Immokalee Road, at Big Island Ranch Rd STRAP/ID: 00105320009 and 6 other parcels Grantor: Riverpointbridge, LLC Grantee: Brentwood Holdings Limited Partnership Legal Data: Sale Date: October 29, 2018 Sale Price: $1,500,000 Sale Price per Sq. Ft.: $0.17 Sale Price per Acre: $7,253 Recording: OR 5567/6671 Interest Conveyed: Fee Simple Deed Conveyed: Spec. Warranty Deed Land Use: Rural Fringe Mixed Use District – Neutral Lands Zoning: A-MHO-RLSAO Highest and Best Use: Agricultural or Residential Dev. CNA Data # 1679 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 75 Site Data: Site Dimensions: Irregular Site Size: 9,008,208 square feet, 206.800 acres Shape: Irregular Topography: Generally level at grade-Upland Area Corner/Visibility Influence: Average Utilities: Well & Septic Access: Average access from Oil Well Rd Wetlands/Uplands: 46.80 Acres of Upland - 160 AC of Lake Soils: N/A Sale Analysis: Sale Price: $1,500,000 Financing: Cash to seller Price per SF: $0.17 Price per Acre: $7,253 Sale Confirmation: Verification: Greg Jarrett, Seller, 307 220-0701 Verifying Appraiser: Angelica Jordan, April 06, 2020 Sale History: No other sales noted in the three years prior Comments: This was the sale of a 206.80 acre parcel in Naples, that was a former excavation site. The property had 160 acres of the site that was a lake. The seller, Greg Jarrett, verified the sale and the arm's-length nature and said he had listed online for $22 million to see if there was any interest prior to the sale. He said there were some lower offers, however, the buyer who is the adjacent owner, Jeff Greene, was interested in the site due to the site providing access to Immokalee Road and additional water retention. The buyer owns the 2,500+ acres to the south. CNA Data # 1679 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 76 Criteria Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Location Hussey/HHH Ranch Off Pringle Lane 3440 SR 82 17373 State Road 29 SWC Oil Well Rd & SR 29 19720 Immokalee Road SE Collier Co.Immokalee Immokalee Naples Immokalee Naples Recording N/A 5318/2095 OR 5374/645 OR 5525/542 OR 5555/1858 OR 5567/6671 Sale/Appraisal Date March 20,2020 September 27, 2016 March 15, 2017 June 1, 2018 September 21, 2018 October 29, 2018 Parcel Size (Acres)384 128.80 200.50 156.97 155.42 206.80 Sale Price N/A $550,000 $1,500,000 $900,000 $863,500 $1,500,000 Sale Price per Square Foot N/A $4,270 $7,481 $5,734 $5,556 $7,253 Transactional Adjustments Property Rights Less than Fee Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Financing N/A Conventional Cash indicated Cash to Seller Cash to seller Cash to seller Conditions of Sale N/A Bank owned Arm's length None Arms length Arms length Expenditures Immediately after Sale N/A N/A N/A N/A N/A N/A Market Conditions N/A $67,375 $157,500 $55,125 $45,334 $73,500 Adjusted Sale Price N/A $617,375 $1,657,500 $955,125 $908,834 $1,573,500 Adjusted Sale Price per sq. ft. N/A $4,793 $8,267 $6,085 $5,848 $7,609 Physical Properties Location SE Collier Immokalee Immokalee Immokalee Immokalee Naples Parcel Size (AC)384 128.80 200.50 156.97 155.42 206.80 Land Use RFMU Sending NBMO A-RMUO A-RMU Conservation Desig.RLSA RFMU – Neutral Zoning A-RFMU sending-NBMO A-MHO-RLSAO-ACSC-ST A-MHO-RLSAO A-ACSC/ST A-MHO-RLSAO A-MHO-RLSAO Utilities Electricity, Telephone Electricity/Phone Electricity/Phone Electricity/Phone Electricity/Phone/Well-Septic Electricity/Phone/Well-Septic Access Dirt Road Dirt Road Paved Two Lane Paved Two Lane Paved Two Lane Paved Two Lane Miscellaneous Less than Fee No Single Family Subd. Potential Long term low density potential Long term low density potential Long term low density potential Long term low density potential Long term low density potential Location Average Inferior Inferior Inferior Inferior Similar Parcel Size Average Similar Similar Similar Similar Similar Land Use Average Similar Similar Similar Similar Similar Zoning Average Similar Similar Similar Similar Similar Utilities Average Similar Similar Similar Superior Superior Access Fair Similar Superior Superior Superior Superior Miscellaneous Fair Superior Superior Superior Superior Superior Overall Rating Superior Superior Superior Superior Superior Land Sales Adjustment Analysis - Qualitative Physical Property Ratings COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 77 The above sales are agricultural transactions located in Collier County and are compared to the 384 acres of sending lands which in this scenario have no development rights. The 384 acres have an agricultural highest and best use, therein lies the reason for this comparison. Property Rights Conveyed: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the real property rights involved in a transaction.” The property rights conveyed for all four of these transactions were fee simple. An adjustment for the subject being a less than fee transaction is warranted. You will note on the sales grid in the miscellaneous category consideration of the difference in the development rights between the fee simple sales and the less than fee subject property. Financing Terms: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the financing terms of a transaction, also called cash equivalency adjustment.” The AG sale transactions were a combination of cash, seller held and conventionally financing. None of these components were considered to impact the price paid and therefore no adjustment. Conditions of Sale: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the motivations of either the buyer or a seller in a transaction, e.g., when the comparable transaction is not an arm's-length sale.” Consideration will be given to the fact that Sale 1 was a bank owned transactions at the time of sale. This sale is representative of being on the lower end of the market range based upon this factor alone. Market Conditions: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the points in the real estate cycle at which the transactions occur, also called a time adjustment because the differences in dates of sale are often compared.” Based on the previous market conditions analysis the sales are adjusted at 3.5% per year. Adjusted Price per Unit of Value: The analyst has considered adjustments for property rights, financing, conditions of sale, expenditures after sale and market conditions. The adjusted sales prices for the transactions range from $4,793 per acre to $8,267 per acre. Qualitative Analysis: The next analysis considers the factors of location, parcel size, land use, zoning, utilities, access, and property rights transferred. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 78 Location: The comparable Sales 1 through 4 are all located in the Immokalee area or more easterly in Naples and further from the goods and services and general patterns of growth. The location of all comparable sales are measured as inferior. Sale 5 is located in northeast Naples and is considered similar to the subject. Parcel Size: The subject property will contain 384 acres. The comparable sales range in size from 128 acres to 207 acres and are comparable agricultural parcels to that of the subject. All sales receive a similar rating for size. Land Use: The subject property’s land use is Rural Fringe Mixed Use Sending and is located in the North Belle Meade Overlay area. While the comparable sales have somewhat differing land uses they are not significantly different from the subject in terms of the overall uses, we have rated all comparable sales with respect to land use as similar. Zoning: The subject property’s zoning is Agriculture, Rural Fringe Mixed Use Sending and North Belle Meade Overlay. Again, the comparable sales differ for somewhat with respect to zoning, but all ultimately are agriculture tracts. The comparable sales are rated as similar with respect to zoning as compared to the subject. Utilities: The subject property has electricity and telephone available. The comparable sales 1 through 3 all have electricity and telephone available and are rated as similar in this category of comparison. Sales 4 and have well and septic available and are rated superior. Access: The subject property has dirt road access. The paved publicly maintained portion of the White Lake Boulevard extension is a significant distance from the subject property. Properties located on paved roads are measured as superior. Properties measured on dirt roads are measured as similar. In this connection, Sales 2, 3, 4, and 5 are measured as superior. Sale 1 has access on a dirt road and is measured as similar. Miscellaneous: The miscellaneous category is used to consider the “less than fee” component of the subject. The subject property is an agriculture parcel with no future development potential. Sales one, three and four are located in truly agriculture areas. These properties will remain agriculture for some time and have some potential low density long term development. We do consider this to be superior. Sales 2 and 5 are located on State Road 82 and Immokalee Road ins COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 79 closer proximity to other developed properties and could see development sooner than the other comparable sales. These sales are measured as superior with respect to development potential. Final Analysis Sending Lands (AG Sales): The comparable sales are all agricultural transactions located in Collier County. They have all occurred in a fairly recent period of time between 2016 and 2018. The adjusted prices on a per acre basis range from $4,793 to $8,267. The qualitative analysis resulted in all of the transactions being rated as superior to the subject. We do believe the subject’s location is superior to most of the sales in closer proximity to developing areas of Collier County and Naples; however, the lack of future development is a significant factor. The subject property’s value falls somewhere just below the overall range as indicated by these sales. It is my opinion the market value of the subject property as a “less than fee” parcel with an agriculture highest and best use is $4,500 per acre which equals $1,728,000. In order to provide additional support for the value of the sending lands we offer the following analysis of remainder sales on conservation easement parcels. Supplemental Support for Sending Lands Value Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Date of Sale Jun-15 Dec-15 May-14 Sep-14 Apr-15 County Polk/Hillsborough Highlands Lake Polk Flagler OR Bk/Pg.9549/848 2507/621 4484/1486 9335/786 2063/472 Sale Price $8,929,600 $6,281,500 $1,100,000 $3,200,000 $1,200,000 Acres 2880.46 7981.46 965 1152.2 584.64 Price per Acre $3,100 $787 $1,140 $2,777 $2,053 Esmt. Type Green Swamp USDA WRP Green Swamp Green Swamp SJRWMD CE Fee Value $5,000 $3,000 $2,500 $5,500 $4,000 % of Fee Value Paid 62%26%46%50%51% Sale 6 Sale 7 Sale 8 Sale 9 Sale 10 Date of Sale Nov-14 Aug-13 Aug-15 May-14 Mar-11 County Martin Polk DeSoto Hendry Hendry OR Bk/Pg.2750/1060 9030/1691 Inst. #201514004275 877/1408 831/1213 Sale Price $3,000,000 805000 $4,477,200 $425,000 650,000 Acres 2538.87 459.36 3731 1301.32 646.61 Price per Acre $1,181.63 $1,752.44 $1,200 $326.59 $1,005.24 Esmt. Type USDA WRP TIITF CE SWFMD CE USDA CE Cons. Fund CE Fee Value $5,500 $3,500 $3,000 $1,500 $2,200 % of Fee Value Paid 21%50%40%22%46% Conservation Easement (Remainder) Sales shown as a Percentage of Fee Value COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 80 The above ten sales are remainder transactions. In other words, these are sites that have conservation easements. The conservation easements are for the purpose of limiting future development. These ten transactions are all basically agriculture and recreation parcels. You will note these transactions occurred in a geographical area around Florida between 2011 and 2015. On a per acre basis the remainder transactions ranged from $326.00 per acre to $3,100 per acre. As a percentage of fee value these parcels show a range from 22% to 62% of the fee value. The approximate mean of these ten transactions indicates that typically remainder parcels have a value of around 40% of the fee value. In the next section of this report, an analysis will be presented wherein the value of the subject property will be measured based upon fee simple transactions in the Southwest Florida market area. The value supported by these sales is $9,000 per acre. Applying a percentage adjustment of 50% based upon these above ten transactions would support a value of $4,500 per acre. This information is provided for added support of the sending lands value supported by the four agricultural sale transactions. Again, it is my opinion that the sending lands value is estimated at $4,500 per acre as of the effective date of appraisal. The market value for the 384 acres of sending lands with no development rights is $1,728,000. Final Value Estimate TDR Analysis The summation of the market value for the receiving lands and the market value of the sending lands as a remainder parcel, results in an overall market value estimate of $7,756,000. Receiving Lands Value Estimate $6,028,000 + Sending Lands Value Estimate $1,728,000 Final Value Estimate TDR Analysis $7,756,000 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 81 SALES COMPARISON ANALYSIS – FEE SIMPLE LARGE ACREAGE TRANSACTIONS We will now provide an analysis of the subject property being a 967 acre tract valued by fee simple transactions of large acreage parcels. Following you will find acreage land sales location map, sale write-ups for acreage land sales and an analysis grid. Land Sales Location Map COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 82 COMPARABLE 1 Property Reference: Property Type: Vacant Land Address: East of Immokalee Road Naples, FL County: Collier Location: East of Immoaklee Road & south of Wild Turkey Drive STRAP/ID: 00209200009/ 00209240001/ 00113480009/ 00113520008 Grantor: State Road 846 Land Trust Grantee: 27th Pico Boulevard Limited Partnership Legal Data: Sale Date: May 12, 2016 Sale Price: $38,479,500 Sale Price per Sq. Ft.: $0.34 Sale Price per Acre: $14,938 Recording: Book/Page: 5273/1278 Interest Conveyed: Fee simple Deed Conveyed: Trustee's Deed Land Use: Agriculture Zoning: Rural Fringe Mixed-Use District overlay Highest and Best Use: Future residential development CNA Data # 900 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 83 Site Data: Site Dimensions: Approx. 11,000 feet of frontage on Immokalee Rd. Site Size: 112,210,560 square feet, 2,576.000 acres Development Units: 862 Development Density/Acre: 0.33 Shape: Irregular Topography: Generally level in an undeveloped state Corner/Visibility Influence: Yes Utilities: Full utilities available Access: Average Wetlands/Uplands: Average Soils: All uplands soils Immok47%, Myakka/Malabar19%, Basinger10%, Pineda6% Sale Analysis: Sale Price: $38,479,500 Financing: $30,000,000/Bank of America Price per SF: $0.34 Price per Acre: $14,938 Price per Dev. Unit: $44,640 Sale Confirmation: Verification: Billy Rollins - Realtor w/Land Solutions, 239-633-1963 Verifying Appraiser: Richard Tyler, January 31, 2017 Sale History: No sales in previous 3 years Comments: Sale verified with listing broker Billy Rollins. The subject is 2,576± acres and consists of agriculture, mining, and preservation lands. It is located in North Naples on the east side of Immokalee Road approximately 13 miles east of Interstate-75. The land sits in the Rural Fringe Mixed-Use District overlay and designates 1,998± acres, of the total 2,576± acres, as receiving lands and the remaining 578± acres as sending lands. There is an active agricultural farming lease as well as a mining lease. As to the farming lease, the owner receives a rental payment in return for the use of areas within the property (cattle grazing). The property was issued a Conditional Use permit for fill and rock excavation. A lease of the mining rights is in effect and operations are ongoing with the potential to mine over 45,000,000 cubic yards of construction materials. The subject owner receives a royalty for the materials produced from the property. The rental and royalty payments are used to off-set the carry costs for the property. Existing zoning allows up to 862 residential units or 0.34 DU per/acre. List price was $52,500,000 and exposed to the market for over 1 year. Our file# 17-16 CNA Data # 900 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 84 COMPARABLE 1 Property Reference: Property Type: Vacant Land Address: 21230 Corkscrew Road Estero, FL 33928 County: Lee Location: South side of Corkscrew Rd, near the SE corner of Lee County STRAP/ID: 27-46-27-00-00100.0000, 1.0000, and 2.0020, Grantor: Schmidt Landing LLC, Schmidt Downs, LLC, Regwin, LLC Grantee: Bovine Breeze, LLC Legal Data: Sale Date: December 21, 2016 Sale Price: $1,350,000 Sale Price per Sq. Ft.: $0.15 Sale Price per Acre: $6,750 Recording: Inst.# 2016000273094 Interest Conveyed: Fee Simple Deed Conveyed: Warranty Deed Land Use: DRGR and Wetlands ( Density Reduction Groundwater Resource 1/10, 1/20) Zoning: AG-2 (Agriculture) Highest and Best Use: Currently agriculture and future low density residential CNA Data # 902 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 85 Site Data: Site Dimensions: Irregular Site Size: 8,712,000 square feet, 200.000 acres Shape: Irregular Topography: Generally Level Corner/Visibility Influence: Not Applicable Utilities: Electricity and Telephone Access: Paved, two lane Wetlands/Uplands: Average Soils: Mostly Valaria, Hallandale, Pompano-Depr.Immok, Felda Sale Analysis: Sale Price: $1,350,000 Financing: Cash Indicated Price per SF: $0.15 Price per Acre: $6,750 Sale Confirmation: Verification: Quentin Ruelle, Buyer, 239 947 1355 Verifying Appraiser: J. Lee Norris MAI, SRA, February 07, 2017 Sale History: No other recent sale noted in the public record Comments: The buyer indicated the sale is arm's length and was bought for investment purposes. County records show a residential improvement and an old airstrip. Neither is considered to contribute value to the sale. The site has a significant amount of native land and is used as grazing land. The county also identifies 60% of the site as uplands and 40% as wetlands. The site has some 1/2 mile of frontage along the south side of Corkscrew Road. Our file number 17-16. CNA Data # 902 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 86 COMPARABLE 2 Property Reference: Property Type: Residential Vacant Land Address: No physical address Estero, FL 34135 County: Lee Location: south of Corkscrew Rd. and adjacent to the east side of I-75 STRAP/ID: 1-47-25-00-00001.00000 and 7 additional parcel #'s Grantor: Investors Warranty of America Grantee: Lee County Legal Data: Sale Date: November 30, 2017 Sale Price: $42,435,000 Sale Price per Sq. Ft.: $0.25 Sale Price per Acre: $10,862 Recording: 2017000251345 Interest Conveyed: Fee Simple Deed Conveyed: Warranty Deed Land Use: DRGR/Wetlands/Conservation Land Zoning: Ag-2 Highest and Best Use: Residential Development CNA Data # 1190 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 87 Site Data: Site Dimensions: Irregular Site Size: 170,177,159 square feet, 3,906.730 acres Shape: Irregular Topography: Generally level with significant wetlands Corner/Visibility Influence: Good from I-75 Utilities: Full utitlities available along Corkscrew Rd. Access: Access easement extending sound from Corkscrew Road Wetlands/Uplands: 71 % / 29 % Soils: A variety of sand based upland soils with significant depressional and muck Sale Analysis: Sale Price: $42,435,000 Financing: Cash Price per SF: $0.25 Price per Acre: $10,862 Sale Confirmation: Verification: Keith Gomez, property acquisition agent, 533-8743 Verifying Appraiser: J. Lee Norris MAI, SRA, November 30, 2017 Sale History: No other recent sale noted in the public record Comments: This transaction was the result of years of negotiation between the parties and three appraisals. This property is prime land with tremendous exposure to I-75 and in the heart of the south Lee County growth corridor. The land had significant wetlands, limited access by way of an easement south off of Corkscrew and has a powerline running thru it containing some 77.73 acres. The property is a very important parcel for preservation purposes. 18-54 CNA Data # 1190 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 88 COMPARABLE 3 Property Reference: Property Type: Agriculture Vacant Land Address: 18500 Corkscrew Road Estero, FL 33928 County: Lee Location: South side of Corkscrew Rd; west of Carter Rd STRAP/ID: 30-46-27-00-00001.0000 Grantor: Pepperland, LLC Grantee: TPL-Land-Sub, LLC Legal Data: Sale Date: May 31, 2019 Sale Price: $19,500,000 Sale Price per Sq. Ft.: $0.70 Sale Price per Acre: $30,584 Recording: Inst. 2019000130510 Interest Conveyed: Fee Simple Deed Conveyed: Warranty Deed Land Use: DR/GR; Wetlands Zoning: RPD Highest and Best Use: Agricultural Use/Residential Development CNA Data # 1682 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 89 Site Data: Site Dimensions: 5,330' x 5,310' Site Size: 27,772,985 square feet, 637.580 acres Development Units: 700 Development Density/Acre: 1.10 Shape: Rectangular Topography: Mostly cleared, Farmland Corner/Visibility Influence: No/Average Utilities: Electiric, Well & Septic Access: Average Wetlands/Uplands: Uplands 78% Wetlands 22% Soils: None adverse apparent Sale Analysis: Sale Price: $19,500,000 Financing: Conventional Price per SF: $0.70 Price per Acre: $30,584 Sale Confirmation: Verification: Third Party Source, Lee Co. Official Records, Prior Appraisal 19-99, Verifying Appraiser: Angelica Jordan, April 02, 2020 Sale History: No known arm's length transactions in proceeding five years Comments: This is the sale of an agricultural use property in Estero. The property is approved for the development of 700 residential units. They also acquired the adjacent 40 acres in February 2019 for $1,500,000 and the adjacent 1,460 acres in September 2019 for $33,000,000. All of the properties will be combined into a single development of approximately 2,400 units +/-. The property also includes 350.73 acres of conservation land and 48.30 acres of public lands. The property is in the Corkscrew Road corridor with 5,280 feet along Corkscrew Road, east of the Alico Road and Corkscrew Road crossing. The acreage was rezoned from Industrial Planned Development (IPD) to Residential Planned Development (RPD) to permit the development of up to 700 dwelling units and a 50,000 sq. ft. amenity center. Maximum proposed building height is 35 feet for residential buildings and 45 feet for the amenity center. CNA Data # 1682 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 90 COMPARABLE 4 Property Reference: Property Type: Agriculture Vacant Land Address: 21750 Corkscrew Road Estero, FL 33928 County: Lee Location: South side of Corkscrew Road; 3/4 mile east of Lazy D Road STRAP/ID: 27-46-27-00-00001.0010; 27-46-27-00-00100.0010; 27-46-27-00-00002.0000; 27-43-27-00-00002.0010; 34-46-27-00-00001.0000 Grantor: Coral Creek Limited Liability Company Grantee: Pepperplace, LLC Legal Data: Sale Date: June 17, 2019 Sale Price: $5,500,000 Sale Price per Sq. Ft.: $0.22 Sale Price per Acre: $9,550 Recording: Instrument 2019000149645 Interest Conveyed: Fee Simple Deed Conveyed: Warranty Deed Land Use: DR/GR; Wetlands Zoning: AG-2 Highest and Best Use: Agricultural Use CNA Data # 1644 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 91 Site Data: Site Dimensions: Irregular Site Size: 25,086,204 square feet, 575.900 acres Shape: Irregular Topography: Mostly cleared, wetlands, cypress head Corner/Visibility Influence: No/Average Utilities: Electricity and Telephone Access: Average Wetlands/Uplands: Uplands 389.4 acres (68%); Wetlands 186.51 acres (32%) Soils: None adverse apparent Sale Analysis: Sale Price: $5,500,000 Financing: Cash to Seller Price per SF: $0.22 Price per Acre: $9,550 Sale Confirmation: Verification: Brian Bartholomew, Sellers Representative, 239-368- 2128 Verifying Appraiser: Bill Carlson, MAI, SRA, February 20, 2020 Sale History: No known arm's length transactions in proceeding five years Comments: This is an irregular shaped parcel purchased for continued agriculture use. The site had previously been farmed with the majority of the property cleared, rim ditched, and drainage ditched. There is a large wetland/cypress head on the central portion of the site. In addition, there was a 120 acre orange grove located on the southerly portion of the property. Immediately after purchase the new owner pushed the grove. The site sold a higher price per acre overall than the value of the grove. The site had been on the market for a number of years prior to being placed under contract. The property was listed for sale for $5,759,000 when it was placed under contract for $5,500,000. This transaction was part of a 1031 exchange. The seller's representative indicated this was an arm's length transaction at market value at the time of sale. Reference Number: 20-32 CNA Data # 1644 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 92 COMPARABLE 5 Property Reference: Property Type: Agriculture Vacant Land Address: 19500 Corkscrew Road Estero, FL 33928 County: Lee Location: South side of Corkscrew Rd; west of Carter Rd STRAP/ID: 29-46-27-00-00001.0000, 31-46-27-00-00001.1000, & 32-46-27-00-00001.1000 Grantor: Pan Terra Holdings, LTD Grantee: TPL-Land-Sub, LLC Legal Data: Sale Date: September 30, 2019 Sale Price: $33,000,000 Sale Price per Sq. Ft.: $0.52 Sale Price per Acre: $22,591 Recording: Inst. 2019000227805 Interest Conveyed: Fee Simple Deed Conveyed: Warranty Deed Land Use: DR/GR; Wetlands Zoning: AG-2 Highest and Best Use: Agricultural Use CNA Data # 1681 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 93 Site Data: Site Dimensions: Irregular Site Size: 63,631,577 square feet, 1,460.780 acres Development Units: 1460 Development Density/Acre: 1.00 Shape: Irregular Topography: Mostly cleared, some groves and pasture Corner/Visibility Influence: No/Average Utilities: Electric, Well & Septic Access: Average Wetlands/Uplands: Uplands 92% Wetlands 8% Soils: None adverse apparent Sale Analysis: Sale Price: $33,000,000 Financing: Cash to Seller Price per SF: $0.52 Price per Acre: $22,591 Price per Dev. Unit: $22,603 Sale Confirmation: Verification: Third Party Source, Lee Co. Official Records, Prior Appraisal 19-99, Verifying Appraiser: Angelica Jordan, April 02, 2020 Sale History: No known arm's length transactions in proceeding five years Comments: This was the sale of an agricultural zoned property in Estero. The property had entitlements in place for 1,460 single-family residential units. They also acquired the adjacent 40 acres in February 2019 for $1,500,000 and the adjacent 637.58 acres in May 2019 for $19,500,000. All of the properties will be combined into a single development of approximately 2,400 homes. CNA Data # 1681 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 94 Criteria Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 Location Hussey/HHH Ranch East of Immokalee Road 21230 Corkscrew Road No physical address 18500 Corkscrew Road 21750 Corkscrew Road 19500 Corkscrew Road SE Collier Naples Estero Estero Estero Estero Estero Recording N/A Book/Page: 5273/1278 Inst.# 2016000273094 Inst. 2017000251345 Inst. 2019000130510 Inst. 2019000149645 Inst. 2019000227805 Sales Price N/A $38,479,500 $1,350,000 $42,435,000 $19,500,000 $5,500,000 $33,000,000 Sale/Appraisal Date 3/20/2020 May 12, 2016 December 21, 2016 November 30, 2017 May 31, 2019 June 17, 2019 September 30, 2019 Parcel Size (Acres)967.00 2576.00 200.00 3906.73 637.58 575.90 1460.78 Sale Price N/A $38,479,500 $1,350,000 $42,435,000 $19,500,000 $5,500,000 $33,000,000 Sale Price per Square Foot N/A $14,938 $6,750 $10,862 $30,584 $9,550 $22,591 Property Rights Fee Simple Fee simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Financing N/A $30,000,000/Bank of America Cash Indicated Cash Conventional Cash to Seller Cash to Seller Conditions of Sale N/A None None Arms length None None None Expenditures Immediately after Sale N/A N/A N/A N/A N/A N/A N/A Market Conditions N/A $5,117,774 $153,563 $3,460,574 $546,000 $144,375 $577,500 Adjusted Sale Price N/A $43,597,274 $1,503,563 $45,895,574 $20,046,000 $5,644,375 $33,577,500 Adjusted Sale Price per sq. ft. N/A $16,924 $7,518 $11,748 $31,441 $9,801 $22,986 Location SE Collier Naples Estero Estero Estero Estero Estero Parcel Size (Acres)967 2576.00 200.00 3906.73 637.58 575.90 1460.78 Land Use RFMU Sending NBMO RFMU Receiving NBMO Agriculture DRGR and Wetlands DRGR/Wetlands/Conserv.DR/GR; Wetlands DR/GR; Wetlands DR/GR; Wetlands Zoning A-RFMU sending-NBMO A-RFMU Receiving-NBMO RFMU Overlay AG-2 AG-2 RPD AG-2 AG-2 Utilities Electricity, Telephone Full utilities available Electricity /Phone Full utitlities along Corkscrew Electiric, Well & Septic Electricity and Telephone Electiric, Well & Septic Access Dirt Road Average Paved, two lane Access easement from Corkscrew Paved Road Paved Road Paved Road Location SE Collier Similar Inferior Superior Superior Inferior Superior Parcel Size 967 Inferior Similar Inferior Similar Similar Similar Land Use RFMU Sending NBMO RFMU Receiving NBMO Similar Inferior Inferior Inferior Inferior Inferior Zoning A-RFMU sending-NBMO A-RFMU Receiving-NBMO Similar Similar Similar Superior Similar Similar Utilities Electricity, Telephone Superior Similar Superior Superior Similar Superior Access Dirt Road Superior Superior Similar Superior Superior Superior Overall Rating Superior Inferior Superior Superior Similar Superior Land Sales Adjustment Analysis - Qualitative Physical Property Ratings Physical Properties Transactional Adjustments COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 95 This analysis is provided as additional support for the market value of the subject property. The TDR process can be cumbersome and difficult to navigate. We believe that providing this additional qualitative sales comparison analysis of fee simple transactions will add overall credibility to the market value estimate. The basis of this analysis is the comparison of actual fee simple transactions that exist in the Southwest Florida marketplace for large acreage parcels with similar highest and best use and physical characteristics. We researched the marketplace and found six transactions. Below is the qualitative analysis presented in narrative form for the reader’s consideration. The above chart has a criteria column, a subject column and six corresponding columns for the comparable sales. The comparable sales are analyzed on a transactional basis for characteristics relating to property rights, financing, conditions of sale, expenditures after sale if necessary and market conditions. These transactional adjustments result in an adjusted sales price and an adjusted sales price per acre. This analysis is followed by consideration of the sales and subject property’s physical characteristics of location, size, land use, zoning, utilities and access. This analysis is made on a qualitative basis wherein each of these categories of comparison receives a rating of similar, inferior or superior. Each of the six sales is given an overall rating of similar, inferior or superior. Property Rights Conveyed: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the real property rights involved in a transaction.” The property rights conveyed for all six sales were fee simple, no adjustments were necessary. Financing Terms: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the financing terms of a transaction, also called cash equivalency adjustment.” The transactions were a combination of cash, cash to seller and conventionally financing. Financing of these six sales had no impact on sales price. Conditions of Sale: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the motivations of either the buyer or a seller in a transaction, e.g., when the comparable transaction is not an arm's-length sale.” Conditions of sale is that category used to adjust out for certain components such as possibly physical improvements COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 96 or such as vertical improvements or buildings which may have impacted value. No conditions of sale adjustments are warranted. Expenditures After Sale: None of the sales were adjusted for expenditures after sale for this analysis. Market Conditions: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the points in the real estate cycle at which the transactions occur, also called a time adjustment because the differences in dates of sale are often compared.” Based upon the analysis in the previous sale comparison sections, these large acreage transactions will be adjusted on the basis of a nominal 3.5% per year increase in value. Adjusted Price per Unit of Value: The analyst has considered the base adjustments for property rights, financing, conditions of sale, expenditures after sale and market conditions. Market conditions adjustments were made to all of the sales. This process has resulted in an adjusted price per acre range from $7,518 to $31,441. Qualitative Analysis: The next analysis considers the factors of location, size, land use, zoning, utilities and access. This portion of the analysis process was prepared on a qualitative basis wherein each of the characteristics for the sale properties is given a rating of similar, inferior or superior. An overall rating for each comparable sale as compared to the subject is also provided. Location: The subject property is located in southeast Collier County. Sale 1 is located in east Naples off of Immokalee Road. Sales 2, 4, 5, and 6 are located in Estero along Corkscrew Road. These locations vary considerably depending on what section of Corkscrew Road the property is located on. Lastly, Sale 3 is located off of Corkscrew Road along the east side of I-75. Sale 1 is measured as similar in location. Sales 2 and 5 are located at the far end of Corkscrew Road and are measured as inferior to the subject. Sales 3, 4, and 5 are located in closer proximity to developed areas and are considered superior for location. Parcel Size: The subject property contains 967 total acres. The comparable sales range in size from 200 acres to 3,906 acres. Sites that are significantly larger, while not necessarily inferior would have a lower price per unit of comparison. In this case per acre and therefore for qualitative COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 97 purposes are rated as somewhat inferior. Likewise, sales that are significantly smaller would typically have a higher per acre basis and therefore are rated as superior on a qualitative basis. Sales 2, 4, 5, and 6 are rated as similar for size. Sales 1 and 3 are rated as inferior for significantly larger sizes. Land Use: The subject property’s land use includes Rural Fringe Mixed Use Sending and Rural Fringe Mixed Use Receiving in addition to the North Belle Meade Overlay area. The comparable sales which is measured as similar to the subject includes Sale 1, the Collier County transactions. Sales 2, 3 4, 5, and 6 are measured as inferior with lower overall density associated with the land use. Zoning: In the same connection as land use we measure the zoning associated with Sales 1, 2, 3, 5 and 6 measured as similar and the zoning associated with Sale 4 being rated as superior. Utilities: The subject property has electricity and telephone utilities available. Comparable sales 1, 3, 4, and 6 have all utilities availableand are measured as superior. Sales 2 and 5 only have electricity and telephone available and are measured as similar. Access: The subject property has limited access from a long dirt road leading from West Lake Boulevard extension along Blackburn Road which is a one lane dirt road. It is not publicly maintained. All comparable sales have substantially superior access along paved roads and are measured as superior in this category of comparison. Final Analysis Sales Comparison Large Acreage Fee Simple Valuation: The above analysis uses six transactions that have occurred in the Collier and Lee County markets since 2016. These sale transactions are all competitive in that they are large acreage tracts in the general path of development most of which were purchased with low density development rights but potential for higher density through the permitting process. The analysis has been made on a qualitative basis. The final analysis resulted in one of the transactions as being rated as overall similar (Sale 5), one transaction being rated as inferior overall (Sale 2) and four transactions being rated as overall superior (Sales 1, 3, 4 and 6). The superior rated transactions have adjusted price per acre of these transactions is from $11,748 to $31,441. Sales 4 and 6 are significantly superior and will receive the least emphasis. Sale 1 had significant value influencing components relating to mining and is rated as superior. The inferior COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 98 rated sale, Sale 2, is at an adjusted price of $7,518 per acre. The similar rated sale, Sale 5, is at an adjusted price per acre of $9,801. The subject property’s value should be below the superior range of values and above the inferior value. Comparable sale two is the lowest rated sale and is rated inferior with an adjusted price of $6,953 per acre. This property was purchased for investment and is located on the extreme west end of Corkscrew Road. The subject’s value should be higher than the indicated value of this sale. The subject’s value should fall within a range close to that value associated with Sale 5. Based upon the above analysis, it is our opinion giving significant consideration to the lack of utilities and limited access to the subject property, the market value of the subject property is best supported as of the effective date of appraisal, March 20, 2020, at $9,000 per acre for the 967 acres which produces a market value estimate of $8,703,000. Final Analysis Reconciliation - Sales Comparison Approach The subject’s market value estimate has been supported by a TDR analysis as well as a Fee Simple Acreage Sale Transaction Analysis. The TDR analysis produced a market value estimate of $7,724,000. The Sales Comparison analysis utilizing fee simple acreage transactions supported a value of $8,703,000. Placing emphasis on both of these approaches, it is my opinion the overall market value of the subject property as of March 20, 2020, is $8,200,000. TDR Analysis RECEIVING LANDS Value per Blended TDR 583 Units (TDR'S)$16,000 $9,328,000 238 Units (TDR's to be acquired))$14,000 $3,332,000 Value of Receiving Lands by TDR Analysis $5,996,000 SENDING LANDS (as a remainder parcel no development rights) Value per Acre 384 Acres $4,500 Value of Sending Lands by Price per Acre $1,728,000 MARKET VALUE OF SUBJECT BY TDR ANALYSIS $7,724,000 Fee Simple Sales Comparison Analysis Value per Acre 962 Acres $9,000 MARKET VALUE OF SUBJECT BY PER ACRE ANALYSIS $8,703,000 FINAL MARKET VALUE ANALYSIS $8,200,000 SALES COMPARISON ANALYSIS AND CONCLUSIONS COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 99 Section 6 – Reconciliation of Va lue Value Estimate by the Cost Approach Not Applicable Value Estimate by the Income Approach Not Applicable Value Estimate by the Sales Comparison Approach $8,200,000 The Cost Approach has been considered but was not used because there are no improvements. The Income Approach was considered but was not used. The subject property does not have income potential as is. The subject property is a large acreage parcel containing a total of 967 acres on the north side of Interstate 75. The property has access along a dirt road which extends off of White Lake Boulevard and is known as Blackburn Road. The subject property contains 384 acres of sending lands and 583 acres of receiving lands. A settlement agreement in a Bert Harris lawsuit between the property owner and the Collier County government resulted in the establishment of this ratio of receiving and sending lands. From a Sales Comparison perspective the valuation of the subject property has been measured in two ways. The first method was through TDR analysis with further consideration of the sending lands being a remainder parcel with no development rights. A significant amount of research was undertaken in order to locate TDR sales as well as support for the remainder parcel. The value estimate by this analysis is well supported. In addition, the analyst has provided an estimate of market value based upon a comparison with large acreage fee simple transactions in the Southwest Florida market area. These two techniques used in the Sales Comparison Approach were correlated into a well- supported final value estimate. This appraisal does not value oil, gas and mineral rights associated with the subject property. This is based upon the conditions upon which the appraisal was contracted for. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 100 Based upon the analysis presented in this appraisal report, it is my opinion the subject property warrants a market value as of the effective date March 20, 2020, for its fee simple ownership and in its “as is” condition of: EIGHT MILLION TWO HUNDRED THOUSAND DOLLARS ................................. ($8,200,000.00). CARLSON, NORRIS AND ASSOCIATES, Michael Jonas, MAI, AI-GRS, CCIM State-certified general real estate appraiser RZ2623 Angelica Jordan State-registered trainee appraiser RI23979 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 101 Section 7 – Certification and Limiting Conditions Certification of Michael Jonas, MAI, AI-GRS I certify 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 is our personal, impartial and unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect 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 opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the 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 of The Appraisal Foundation and the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, as well as the requirements of the State of Florida relating to review by its duly authorized representatives. This report also conforms to the requirements of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). • The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report, Michael Jonas has completed the Standards and Ethics Education Requirements for Candidates of the Appraisal Institute. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 102 • As of the date of this report, Michael Jonas has completed the continuing education program for Designated Members of the Appraisal Institute. • Michael Jonas has completed the requirements of education for registration through the State of Florida is current until November 30, 2020. • Michael Jonas has made a personal inspection of the property that is the subject of this report. • No one has provided significant real property appraisal assistance to the persons signing this report. • Although other appraisers may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy are maintained at all times with regard to this assignment without conflict of interest. • Michael Jonas is in compliance with the Competency Provision in the USPAP as adopted in FIRREA 1989 and has sufficient education and experience to perform the appraisal of the subject property. • Michael Jonas has not appraised the subject in the last three years. He has not provided any other services related to the property in the last three years. Based on market conditions existing as of the effective date of appraisal, and in consideration of the property as it existed on this date, it is our opinion the subject property, under the extraordinary assumptions as discussed in this report, warranted a market value in its “as is” condition in fee simple ownership March 20, 2020, of: EIGHT MILLION TWO HUNDRED THOUSAND DOLLARS ................................. ($8,200,000.00). CARLSON, NORRIS AND ASSOCIATES, Michael Jonas, MAI, AI-GRS, CCIM State-certified general real estate appraiser RZ2623 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 103 Certification of Angelica Jordan I certify 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 is our personal, impartial and unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect 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 opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the 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 of The Appraisal Foundation and the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, as well as the requirements of the State of Florida relating to review by its duly authorized representatives. This report also conforms to the requirements of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). • Angelica Jordan has completed the requirements of education for registration through the State of Florida is current until November 30, 2020. • Angelica Jordan has not made a personal inspection of the property that is the subject of this report. • No one has provided significant real property appraisal assistance to the persons signing this report. • Although other appraisers may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy are maintained at all times with regard to this assignment without conflict of interest. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 104 • Angelica Jordan is in compliance with the Competency Provision in the USPAP as adopted in FIRREA 1989 and has sufficient education and experience to perform the appraisal of the subject property. • Angelica Jordan has not appraised the subject in the last three years. He has not provided any other services related to the property in the last three years. Based on market conditions existing as of the effective date of appraisal, and in consideration of the property as it existed on this date, it is our opinion the subject property, under the extraordinary assumptions as discussed in this report, warranted a market value in its “as is” condition in fee simple ownership March 20, 2020, of: EIGHT MILLION TWO HUNDRED THOUSAND DOLLARS ................................. ($8,200,000.00). Respectfully submitted, CARLSON, NORRIS AND ASSOCIATES, Angelica Jordan State-registered trainee appraiser RI23979 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 105 General Assumptions & Limiting Conditions Information Used: No responsibility is assumed for accuracy of information furnished by others or from others, including the client, its officers and employees, or public records. We are not liable for such information or for the work of contractors, subcontractors and engineers. The comparable data relied upon in this appraisal has been confirmed with one or more parties familiar with the transaction unless otherwise noted; all are considered appropriate for inclusion to the best of my factual judgment and knowledge. Certain information upon which the opinions and values are based may have been gathered by research staff working with the appraiser. Names, professional qualifications and extent of their participation can be furnished to the client upon request. Legal, Engineering, Financial, Structural or Mechanical Nature, Hidden Components, Soil: No responsibility is assumed for matters legal in character or nature nor matters of survey, nor of any architectural, structural, mechanical or engineering nature. No opinion is rendered as to the legal nature or condition of the title to the property, which is presumed to be good and marketable. The property is appraised assuming it is free and clear of all mortgages, liens or encumbrances, unless otherwise stated in particular parts of this report. The legal description is presumed to be correct, but I have not confirmed it by survey or otherwise. I assume no responsibility for the survey, any encroachments or overlapping or other discrepancies that might be revealed thereby. I have inspected, as far as possible by observation, the land thereon; however, it was not possible to personally observe conditions beneath the soil or hidden; as a result, no representation is made herein as to such matters unless otherwise specifically stated. The estimated market value assumes that no such conditions exist that would cause a loss of value. I do not warrant against the occurrence of problems arising from any of these conditions. It is assumed that there are no hidden or unapparent conditions to the property, soil, subsoil or structures, which would render them more or less valuable. No responsibility is assumed for any such conditions or for any expense or engineering to discover them. Information relating to the location or existence of public utilities has been obtained through inquiry to the appropriate utility authority, or has been ascertained from visual evidence. No warranty has been made regarding the exact location or capacities of public utility systems. Subsurface oil, gas or mineral rights were not considered in this report unless otherwise stated. Legality of Use: The appraisal is based on the premise that there is or will be full compliance with all applicable Federal, State and local environmental regulations and laws, unless otherwise stated in the report; and that all appropriate zoning, building and use regulations and restrictions of all types have been or will be complied with and required licenses, consent, permits or other authority, whether local, State, Federal and/or private, have been or can be obtained or renewed for the use intended and considered in the value estimate. Component Values: The distribution of the total valuation of this report between land and improvements applies only under the proposed program of utilization. The separate valuations of land and buildings must not be used in conjunction with any other appraisal, and are invalid if so used. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 106 A report related to an estate that is less than the whole fee simple estate applies only to the fractional interest involved. The value of this fractional interest, plus the value of all other fractional interests, may or may not equal the value of the entire fee simple estate considered as a whole. A report relating to the geographic portion of a larger property applies only to such geographic portion and should not be considered as applying with equal validity to other portions of the larger property or tract. The value for such geographic portions, plus the value of all other geographic portions, may or may not equal the value of the entire property or tract considered as a single entity. All valuations in the report are applicable only under the estimated program of the highest and best use and are not necessarily appropriate under other programs of use. Auxiliary and Related Studies: No environmental or impact studies, special market study or analysis, highest and best use analysis study or feasibility study has been requested or made by us unless otherwise specified in this report or in my agreement for services. I reserve the unlimited right to alter, amend, revise or rescind any of these statements, findings, opinions, values, estimates or conclusions upon any subsequent study or analysis or previous study or analysis that subsequently becomes available to us. Dollar Values, Purchasing Power: The value estimates and the costs used herein are as of the date of the estimate of value. All dollar amounts are based on the purchasing power and price of the United States dollar as of the date of value estimate Inclusions: Furnishings and equipment or business operations, except as otherwise specifically indicated, have been disregarded, with only the real estate being considered. Proposed Improvements Conditioned Value: For the purpose of this appraisal, on- or off-site improvements proposed, if any, as well as any repairs required, are considered to be completed in a good and workmanlike manner according to information submitted and/or considered by us. In cases of proposed construction, the report is subject to change upon inspection of the property after construction is complete. The estimate of value, as proposed, is as of the date shown, as if completed and operating at levels shown and projected. Value Change, Dynamic Market Influences: The estimated value is subject to change with market changes over time. Value is highly related to interest rates, exposure, time, promotional effort, supply and demand, terms of sale, motivation and conditions surrounding the offering. The value estimate considers the productivity and relative attractiveness of the property both physically and economically in the marketplace. The estimate of value in this report is not based in whole or in part upon race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised. In the event this appraisal includes the capitalization of income, the estimate of value is a reflection of such benefits and my interpretation of income and yields and other factors which were derived from general and specific market information. Such estimates are made as of the date of the estimate of value. As a result, they are subject to change, as the market is dynamic and may naturally change over time. The date upon which the value estimate applies is only as of the date of valuation, as stated in the letter of transmittal. The appraisal assumes no responsibility for economic or physical factors occurring at some later date which may affect the opinion stated herein. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 107 An appraisal is the product of a professionally trained person, but nevertheless is an opinion only, and not a provable fact. As a personal opinion, a valuation may vary between appraisers based upon the same facts. Thus, the appraiser warrants only that the value conclusions are his best estimate as of the date of valuation. There are no guaranties, either written or implied, that the property would sell for the expressed estimate of value. Title Review: Unless otherwise stated, the appraiser has not reviewed an abstract of title relating to the subject property. No title search has been made, and the reader should consult an attorney or title company for information and data relative to the property ownership and legal description. It is assumed that the subject title is marketable, but the title should be reviewed by legal counsel. Any information given by the appraiser as to a sales history is information that the appraiser has researched; to the best of my knowledge, this information is accurate, but not warranted. Management of the Property: It is assumed that the property which is the subject of this report will be under prudent and competent ownership and management over the entire life of the property. If prudent and competent management and ownership are not provided, this would have an adverse effect upon the value of the property appraised. Confidentiality: We are not entitled to divulge the material (evaluation or valuation) content of this report and analytical findings or conclusions, or give a copy of this report to anyone other than the client or his designee, as specified in writing, except as may be required by the Appraisal Institute, as they may request in confidence for ethic enforcement, or by a court of law with the power of subpoena. All conclusions and opinions concerning the analyses as set forth herein are prepared by the appraisers whose signatures appear. No change of any item in the report shall be made by anyone other than the appraiser, and the firm shall have no responsibility if any such unauthorized change is made. Whenever our opinion herein with respect to the existence or absence of fact is qualified by the phrase or phrases "to the best of our knowledge", "it appears" or "indicated", it is intended to indicate that, during the course of our review and investigation of the property, no information has come to our attention which would give us actual knowledge of the existence or absence of such facts. The client shall notify the appraiser of any error, omission or invalid data herein within 10 days of receipt and return of the report, along with all copies, to the appraiser for corrections prior to any use whatsoever. Neither our name nor this report may be used in connection with any financing plans which would be classified as a public offering under State or Federal Security Laws. Copies, Publication, Distribution, Use of Report: Possession of this report, or any copy thereof, does not carry with it the right of publication, nor may it be used for other than its intended use. The physical report remains the property of the firm for the use of the client, with the fee being for the analytical services only. This report may not be used for any purpose by any person or corporation other than the client or the party to whom the report is addressed. Additional copies may not be made without the written consent of an officer of the firm, and then only in its entirety. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations effort, news, sales or other media without my prior written consent and approval of the client. It has been assumed that the client or representative thereof, if soliciting funds for his project, has furnished to the user of this report complete plans, specifications, surveys and photographs of land COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 108 and improvements, along with all other information which might be deemed necessary to correctly analyze and appraise the subject property. Authentic Copies: Any copy that does not have original signatures of the appraiser is unauthorized and may have been altered and, therefore, is considered invalid. Testimony, Consultation, Completion of Contract for Appraisal Services: A contract for appraisal, consultation or analytical services is fulfilled and the total fee payable upon completion of the report. The appraisers or those assisting in the preparation of the report will not be asked or required to give testimony in court or hearing because of having made the appraisal in full or in part, nor will they be asked or required to engage in post appraisal consultation with client or third parties except under separate and special arrangement and at an additional fee. Any subsequent copies of this appraisal report will be furnished on a cost plus expenses basis, to be negotiated at the time of request. Limit of Liability: Liability of the firm and the associates is limited to the fee collected for preparation of the appraisal. There is no accountability or liability to any third party. Fee: The fee for this appraisal or study is for the service rendered, and not for time spent on the physical report. The acceptance of the report by the client takes with it the agreement and acknowledgement that the client will pay the negotiated fee, whether said agreement was verbal or written. The fee is in no way contingent on the value estimated. Special Limiting Conditions: The Americans with Disabilities Act became effective January 26, 1992. Not withstanding any discussion of possible readily achievable barrier removable construction items in this report, Carlson, Norris and Associates, has not made a specific compliance survey and analysis of this property to determine whether it is in conformance with the various detailed requirements of the A.D.A. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the A.D.A. could reveal that the property is not in compliance with one or more of the requirements of the A.D.A. If so, this fact could have a negative effect on the value estimated herein. Since Carlson, Norris and Associates has no specific information relating to this issue, nor is Carlson, Norris and Associates qualified to make such an assessment, the effect of any possible non compliance with the requirements of the A.D.A. was not considered in estimating the value of the subject property. This analysis is made in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Standards of Professional Conduct of the Appraisal Institute. This analysis assumes no site contamination to the subject property. Environmental audits have not been provided for the reader’s consideration. It is assumed that water use permits are in place for the property. Extraordinary Assumptions: Extraordinary assumptions are defined as: “An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 109 • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions.” Please note the following extraordinary assumptions: • An expert soil analysis has not been provided for the preparation of this appraisal. In the absence of a soil report, it is a specific assumption that the site has adequate soils to support the highest and best use. The analyst is not an expert in area of soils, and would recommend that an expert be consulted. • It is assumed that there are no hidden or unapparent conditions to the property, soil, or subsoil, which would render them more or less valuable. Subsurface oil, gas or mineral rights were not considered in this report unless otherwise stated. The analyst is not an expert with respect to subsurface conditions, and would recommend that an expert be consulted. • It is assumed that there are no toxic or hazardous materials either at ground level or subsurface. The analyst is not an expert in the valuation of site contamination, and recommend that an expert be consulted. • The settlement agreement is the defining document as to the number of receiving acres, sending acres and access. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 110 Section 8 – Addenda COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 111 Notice to Proceed COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 112 Settlement Agreement COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 113 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 114 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 115 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 116 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 117 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 118 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 119 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 120 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 121 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 122 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 123 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 124 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 125 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 126 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 127 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 128 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 129 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 130 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 131 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 132 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 133 ZONING COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 134 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 135 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 136 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 137 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 138 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 139 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 140 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 141 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 142 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 143 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 144 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 145 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 146 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 147 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 148 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 149 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 150 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 151 LAND USE COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 152 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 153 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 154 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 155 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 156 APPRAISERS' LICENSES LICENSE FOR MICHAEL JONAS, MAI, AI-GRS COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 157 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS CARLSON, NORRIS AND ASSOCIATES, INC. 158 Appraisal Report Vacant Land Located in Sections 29, 32, Township 49S, Range 27E Collier County, Florida Date of Valuation: 2 April 2020 Date of Report: 16 April 2020 File Name: 20036004 – HHH Ranch Prepared For Collier County Board of County Commissioners Real Property Management 3335 Tamiami Trail East, Suite 101 Naples, Florida 34112-5356 16 April 2020 Collier County Board of County Commissioners Real Property Management 3335 Tamiami Trail East, Suite 101 Naples, Florida 34112-5356 Attention: Mr. Roosevelt Leonard, R/W-AC, Senior Review Appraiser Re: Appraisal of a 967± acre parcel known as “HHH Ranch” in Collier County, Florida PO#: 4500202357 Dear Mr. Leonard: As you requested, we have performed an appraisal of the above-referenced property, which is legally described within the attached report. This letter is an integral part of, and inseparable from, this report. The purpose of the appraisal is to arrive at an opinion of market value of the subject property in its “as-is” condition. The interest being appraised is the undivided fee simple interest in the land as if otherwise free and clear of all liens, mortgages, encumbrances and/or encroachments. The intended use of this appraisal is to establish a basis of value for a possible acquisition of the subject property. The intended user of this report is Collier County Board of County Commissioners. This appraisal report is intended to conform to the Uniform Standards of Professional Appraisal Practice & the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. This appraisal is made subject to the Assumptions and Conditions contained within the body of this report. Based upon our analysis of the data contained within the attached appraisal report, it is our opinion that the “as-is” market value of the fee simple interest in the subject property, as of 2 April 2020, is EIGHT MILLION NINE HUNDRED THOUSAND DOLLARS - $8,900,000 See Page 2 in the Introduction for comments on COVID-19 Respectfully submitted, Gerald A. Hendry, MAI, CCIM State-Certified General Real Estate Appraiser RZ 2245 TABLE OF CONTENTS SEC. I: INTRODUCTION ............................................................................................................................................. 1 COMMENTS ON COVID-19 ............................................................................................................................................ 3 SEC. II: SCOPE OF WORK ......................................................................................................................................... 6 EXTENT OF PROPERTY IDENTIFICATION ............................................................................................................................. 6 EXTENT OF INSPECTION ................................................................................................................................................. 6 TYPE AND EXTENT OF DATA RESEARCH ............................................................................................................................ 6 TYPE AND EXTENT OF ANALYSIS ...................................................................................................................................... 6 ASSUMPTIONS .............................................................................................................................................................. 8 EXTRAORDINARY ASSUMPTIONS ...................................................................................................................................... 8 HYPOTHETICAL CONDITIONS ........................................................................................................................................... 9 COMPETENCY PROVISION ............................................................................................................................................... 9 SEC. III: MARKET AREA ANALYSIS .......................................................................................................................... 10 SOUTHWEST FLORIDA / COLLIER COUNTY DATA .................................................................................................... 10 CONCLUSION / LIFE CYCLE STAGE .......................................................................................................................... 16 COMPETITIVE MARKET AREA .................................................................................................................................... 17 SEC. IV: PROPERTY DESCRIPTION ......................................................................................................................... 27 LOCATION MAP ........................................................................................................................................................... 27 AERIAL MAPS ............................................................................................................................................................. 28 AERIAL DEPICTING RFMU – RECEIVING LANDS AND SENDING LANDS ............................................................................... 29 WETLAND JURISDICTIONAL MAP ................................................................................................................................... 30 FLUCCS MAP ........................................................................................................................................................... 31 FLOOD MAPS ............................................................................................................................................................. 32 CONCEPTUAL SITE PLAN COMPLETED BY RWA ENGINEERING ASSUMING 342 UNITS.......................................................... 34 CONCEPTUAL PLAN COMPLETED BY RWA ENGINEERING ASSUMING 578 UNITS ................................................................. 35 CONCEPTUAL SITE PLAN COMPLETED BY RWA ENGINEERING ASSUMING A RURAL VILLAGE WITH 852 UNITS ......................... 36 SURVEY FROM LAND SOLUTIONS, INC. MARKETING FLYER ............................................................................................... 37 LEGAL DESCRIPTION ................................................................................................................................................... 38 LAND DONATED TO COLLIER COUNTY FOR FUTURE WILSON BOULEVARD EXTENSION ........................................................... 39 PROPERTY PHOTOGRAPHS – TAKEN JUNE 2017 ............................................................................................................ 40 SITE CHARACTERISTICS................................................................................................................................................ 42 SEC. V: HIGHEST & BEST USE ANALYSIS ............................................................................................................... 50 PRESENT USE ............................................................................................................................................................ 50 HIGHEST AND BEST USE AS VACANT ............................................................................................................................. 50 SEC. VI: VALUATION OF SUBJECT PROPERTY ........................................................................................................ 54 THE APPRAISAL PROCESS ............................................................................................................................................ 54 THE SALES COMPARISON APPROACH TO VALUE .............................................................................................................. 55 SEC. VII: RECONCILIATION OF OPINIONS OF VALUE .............................................................................................. 72 CONTRACTS, LISTINGS & SALES HISTORY ...................................................................................................................... 72 ESTIMATION OF MARKETING TIME ................................................................................................................................. 73 ESTIMATION OF EXPOSURE TIME ................................................................................................................................... 73 SEC. VIII: CERTIFICATION ....................................................................................................................................... 74 SEC. IX: ADDENDA .................................................................................................................................................. 76 LAND SALES FOR RECEIVING LANDS (SEVERED) ............................................................................................................. 76 SETTLEMENT AGREEMENT ........................................................................................................................................... 82 QUALIFICATIONS OF GERALD A. HENDRY, MAI, CCIM ................................................................................................... 103 ASSUMPTIONS .......................................................................................................................................................... 106 EXTRAORDINARY ASSUMPTIONS / HYPOTHETICAL CONDITIONS ....................................................................................... 107 1 SEC. I: INTRODUCTION OWNERS OF RECORD/ TAX ID: The subject property consists of a total of nine folio numbers with the following property owners: Folio # Owner 00328560002 HUSSEY JR, FRANCIS D & MARY P 00331320006 HUSSEY JR, FRANCIS D & MARY P 00330480002 HUSSEY JR, FRANCIS D & MARY P 00328640003 HUSSEY JR, FRANCIS D & MARY P 00329240004 HHH INVESTMENTS, LTD 00330840008 SEAN MEADE HUSSEY TRUST 00341960003 HUSSEY JR, FRANCIS D & MARY P 00342040003 HUSSEY JR, FRANCIS D & MARY P 00329760005 HUSSEY JR, FRANCIS D & MARY P LEGAL DESCRIPTION: Lengthy. Please see Property Description section. SITE AREA: 967± acres as per legal description and information from settlement agreement (Case No.: 08-6933-CA and 08-6988-CA) in the Circuit Court of the 20th Judicial Circuit in and for Collier County, Florida. IMPROVEMENTS: The subject property has perimeter fencing and some minor improvements including a small hunting camp. Because of the large size of the property (967± acres) and the age and condition of these improvements, it is our opinion that any interim use value would be below the rounding threshold used in this appraisal and subsequently would not contribute to the overall value of the subject in an appreciable manner. ZONING: Rural Agricultural District (A) within overlays of Rural Fringe Mixed Use - Receiving Lands, Rural Fringe Mixed Use - Sending Lands, and North Belle Meade Overlay District (NBMO). The north 583 acres is located within RFMU – Receiving Lands while the south 384 acres is located in the RFMU – Sending Lands. FUTURE LAND USE: Rural Fringe Mixed Use District – Receiving Lands Rural Fringe Mixed Use District – Sending Lands North Belle Meade Overlay HIGHEST & BEST USE AS VACANT: Continued Agricultural Use/Recreational Use and speculative hold for potential future development. DATE OF VALUATION: 2 April 2020 DATE OF THE REPORT: 16 April 2020 2 INTENDED USER: This appraisal is made for the exclusive use of our client, identified as Collier County Board of County Commissioners and its use by others is strictly prohibited. INTENDED USE: The intended use of this appraisal is to establish a basis of value for a possible acquisition of the subject property. VALUE INDICATIONS: PER ACRE: $8,900,000 3 COMMENTS ON COVID-19 On Wednesday, March 11th, 2020, the World Health Organization declared the spread of the COVID-19 Coronavirus to be a global pandemic. This appraisal is being completed in the midst of the pandemic and there is significant market uncertainty. The analysis has been performed in the context of the best information available at this time and was completed with additional reliance on Appraisal Institute Guide Note 10 which offers advice on the development of an opinion of market value in the aftermath of a disaster. Appraisal Institute Guide Note 12 was also relied upon in its direction relative to market analysis in a quickly changing market. The client should be clear that the appraisal is performed at a point in time and that the market value opinion is as of a certain date, the effective date. Analysis is being performed as quickly as possible to measure the impacts, if any, to the subject’s market as a result of this event. Guide Note 10 offers the following: “The more problematic appraisal assignments are those for which the date of value occurs in the aftermath of the disaster. If no data is available on transactions that occurred in the aftermath of the disaster, data on transactions that occurred prior will require adjustment for market conditions. Such adjustments may be difficult to substantiate. An appraiser must be extremely careful in the use of such data and the estimation of any such market conditions adjustment. In time, more transactions will occur and more data will become available for analysis. Until then, the appraiser must work with what is available. The terms and conditions of any sales that do occur must be analyzed more closely; buyer and seller motivations must be investigated more thoroughly, and the nature of the property’s exposure on the market must be examined.” The analysis is being performed with as much current information and market feedback as possible. However, the appraiser can only work with what is available. Guide Note 12 provides the following context: “However, appraisers are not expected to be prognosticators. Unforeseen events can completely eradicate conclusions that have been based in trend analysis or fundamental market analysis. A market value opinion is as of a particular date, and it is an attempt to reflect the anticipations of market participants as well as market fundamental trends and analysis. Events subsequent to the date of value that were not anticipated by market participants can cause values to change -- in some cases, significantly.” and “There are two risks inherently associated with any appraisal that are of particular concern to the intended user. The first is the risk that the reliability of the value conclusion may be adversely impacted by a lack of quality data. The second is the risk that the value might not be sustainable over time.” On March 15th 2020, the Federal Open Market Committee (FOMC) lowered the federal funds rate to a target range between 0-0.25 percent. This was the largest emergency reduction in the more than 100-year history of the Fed. The target range has been lowered to this level only one other time, during the 2008 financial crisis. The Fed also announced that it would purchase $500 billion in U.S. Treasuries and $200 billion in mortgage- backed securities and would take additional measures over the next several months. They also lowered reserve requirements, and will allow financial firms to utilize capital and liquidity buffers to encourage lending activity across the country. As of Monday March 16th, 2020, all four of the major publicly traded commercial real estate brokerages (Colliers International, Cushman & Wakefield, CBRE and JLL) experienced substantial losses in their respective stock prices ranging from 5-10%. Major homebuilders saw daily stock prices plummet at a steeper pace with many experiencing losses between 19-31%. Shares of Home Depot, Zillow, and Redfin also fell roughly 20%. A 2005 study from the Congressional Budget Office modeled the impact of a potential influenza outbreak and the analysis suggested that a severe pandemic could cut U.S. GDP by roughly 4.5%. The study also found, however, that a sharp rebound was possible at the end of such an event. Justin Boyar, CoStar Director of Market Analytics, suggested “With the stock market declining and fears of a recession on the horizon, consumers will be nervous to spend, even with lower oil prices. With a decline in consumer spending, business investment could decline as well.” The above is a sampling of initial information being analyzed during the appraisal process. Further, our office is studying trends which have occurred in the Southwest Florida real estate market as a result of the COVID-19 epidemic. As illustrated below, the residential market is reacting with a reduction of supply (listings) to match the current decrease in demand (pending/under contract sales). The charts below illustrate this reduction in 4 supply with withdrawn listings and the decrease in demand with a significant decline in pending listings compared to similar time periods in 2018 and 2019. 5 In addition, commercial trends are being studied in Southwest Florida. However, the commercial market data is lagging and has not illustrated the immediate reaction as found in the residential market. A similar lag was experienced during the Great Recession in which the residential markets reacted to the financial imbalance in the market in late 2005-early 2006. However, the commercial markets continued to flourish for another year+. Lastly, our office surveyed real estate and business professionals in our market via an email survey campaign. The results of the survey varied. However, most respondents felt the impact of COVID-19 will likely be short term (< one year). A clear condition derived from the survey was that over 90% of the respondents feel marketing times in all real estate sectors will be extended. As additional data becomes available with the passage of time, it will be incorporated in future analysis. The client should be aware of and consider the context of the value opinion reliability as it relates to current events. 6 SEC. II: SCOPE OF WORK According to the Uniform Standards of Professional Appraisal Practice (USPAP), 2020/2021 Edition, the Scope of Work includes, but is not limited to:  the extent to which the property is identified;  the extent to which tangible property is inspected;  the type and extent of data research; and  the type and extent of analysis applied to arrive at opinions or conclusions. EXTENT OF PROPERTY IDENTIFICATION For this analysis, the subject property was identified by a legal description and research of public records via the internet. For this appraisal, reliance was placed primarily upon information provided by the local public records, as well as information provided by our client. EXTENT OF INSPECTION For the purposes of this appraisal, no onsite inspection of the subject property was completed as agreed upon by the appraiser and the client. Gerald A. Hendry, MAI, CCIM has previously inspected the subject property onsite in June 2017. For purposes of this analysis, inspections were made via aerial photography, GIS portals, etc. TYPE AND EXTENT OF DATA RESEARCH Data research is regularly conducted using the following sources:  Public Records  Local REALTOR® Association Multiple Listing Services (MLS)/Loopnet/CCIM  CoStar comparables service  Information from contractors, brokers and agents in the area The primary emphasis of the data research concentrated on the subject market area. Census data, as well as municipal and governmental websites, were utilized in gathering the information analyzed. The time period researched for any sale data encompasses the past few years up until the date of the most current data available. All comparable data is verified with the buyer, seller or a property representative unless otherwise indicated. In the analysis, the selling price, financing, motivation to purchase/sell and, if applicable, any lease or income/expense information was verified as of the time of sale. TYPE AND EXTENT OF ANALYSIS Purpose of the Appraisal The purpose of this appraisal is to develop an opinion of the “as is,” fee simple market value of the subject property as if free and clear of all liens, mortgages, encumbrances, and/or encroachments. 7 Condition Appraised In this analysis, we are developing an opinion of the “as is” condition, defined by the Appraisal Institute in The Dictionary of Real Estate Appraisal, Sixth Edition as follows: The estimate of market value of real property in its current physical condition, use, and zoning as of the appraisal date. Real Property Interest Appraised There are primarily two forms of interest to consider when developing an opinion of value for real property. These are defined by The Appraisal Institute in The Dictionary of Real Estate Appraisal, Sixth Edition as follows: Fee simple interest (estate) is: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Leased fee interest is: The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. As the subject property is vacant land and not subject to a lease, the interest being appraised in this situation is the undivided fee simple interest in the land as if free and clear of all liens, mortgages, encumbrances, and/or encroachments except as may be amended in the body of this report. Value Appraised The opinion of value developed and reported herein is the market value of the subject property. Market value, as defined by the agencies that regulate financial institutions in the United States and published by 12 CFR Ch. V Part 564.2 (g) Office of Thrift Supervision, Department of the Treasury, is: The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. Buyer and seller are typically motivated. b. Both parties are well informed or well advised, and acting in what they consider their own best interests. c. A reasonable time is allowed for exposure in the open market. d. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e. 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. Approaches Developed As there are no significant improvements associated with the subject property, the Cost Approach does not apply. Further, as properties such as the subject parcel are not typically purchased, as vacant, for their ability to produce a rental income stream within this marketplace, the Income Approach has also been omitted. Therefore, we have utilized the Sales Comparison Approach exclusively in developing an opinion of market value. 8 Report Type This is an Appraisal Report which is intended to comply with the reporting standards set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP), 2020/21 Ed. ASSUMPTIONS An assumption is defined by The Appraisal Institute in The Dictionary of Real Estate Appraisal, Sixth Edition as follows: “that which is taken to be true.” Please see the Addenda for further details regarding the assumptions utilized in this appraisal. EXTRAORDINARY ASSUMPTIONS Extraordinary Assumption is defined by the Uniform Standards of Appraisal Practice (USPAP), 2020/2021 Edition, as: “an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” Per USPAP standards, please note that the use of extraordinary assumptions might have affected the assignment results. It is strongly recommended that the reader thoroughly read the entirety of these assumptions, as they outline the limitations under which this appraisal is developed.  This analysis does not include any consideration for sub-surface rights or any minerals or materials potentially associated with the subject property.  For purposes of this analysis, we have considered the size of the subject property to be 967± based on the Settlement Agreement (Case No.: 08-6933-CA and 08-6988-CA), the legal description contained within this Settlement Agreement, and the Collier County Property Appraiser for FOLIO 00329760005. The Settlement Agreement includes properties in Section 33. However, our analysis includes only those properties in Sections 29 and 32. Moreover, we have relied upon the agreement for specific rights associated with the subject property which, in some instances, vary from the Land Development Code and Growth Management Plan. A copy of the Settlement Agreement may be found in the Addenda to this report.  There are potential cattle, hunting, and timber leases currently on, or formerly on, the property. These documents have not been provided. It is assumed these potential leases are short term (less than one year) and would not impact the market value.  We have relied upon information from Collier County Government, Growth Management Department, as well as other departments for the potential dwelling units on the subject property and Transferable Development Rights (TDR) on the subject property. It is assumed the information contained in this appraisal from Collier County is accurate. Should this information be found to be false, this could alter the opinions and conclusions herein.  It is assumed the property would have legal access via a 50’ right of way on the south side of Section 31, Township 49 South, Range 27 East, owned by Collier County.  No information regarding potential Panther mitigation was available on the property. It is assumed all of the comparables would have a relatively similar cost upon development for this potential mitigation. 9  No current onsite inspection was completed. It is assumed the subject property is physically in a similar state as the June 2017 inspection. HYPOTHETICAL CONDITIONS Hypothetical Condition is defined by the Uniform Standards of Appraisal Practice (USPAP), 2020/2021 Edition, as: “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.” Per USPAP standards, please note that the use of hypothetical conditions might have affected the assignment results. It is strongly recommended that the reader thoroughly read the entirety of these assumptions, as they outline the limitations under which this appraisal is developed. None applicable. COMPETENCY PROVISION This summary appraisal report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). Within USPAP there is a Competency Provision which states, in part, “Prior to accepting an assignment or entering into an agreement to perform an assignment, the appraiser must properly identify the problem to be addressed and have knowledge and experience to complete the assignment competently......” If the appraisers lack the knowledge or experience necessary for a particular assignment, this must be disclosed and all steps necessary to complete the assignment competently must be taken. In regard to this appraisal, we have the necessary knowledge and experience to complete the assignment. 10 SEC. III: MARKET AREA ANALYSIS SOUTHWEST FLORIDA / COLLIER COUNTY DATA 11 Collier County, named for Barron Collier, was created from Lee County in 1923, and is the second largest county in the State of Florida by land area. Collier County is bordered by Miami-Dade Counties to the east and Lee and Hendry Counties to the north. The county's western boundary is the Gulf of Mexico. The county contains a total of 2,025 square miles of land area and 91 square miles of inland water area. Collier County is the second largest county east of the Mississippi River and is larger than the States of Rhode Island and Delaware. The present- day Collier County encompasses 2,305 square miles, with a variety of natural inland, coastal, and barrier island habitats, with approximately 13% of the total area being water. The year-round population is 321,520 as of the 2010 census. There are three (3) incorporated municipalities in Collier County as follows: City of Naples: Incorporated in 1949. 14.41 Square Miles. 2010 Population: 19,537. The city of Naples is the county seat of Collier County, as well as being the principal city of the Naples-Marco Island Metropolitan Statistical Area. The city was originally settled in 1886, with the majority of growth occurring after the depression and World War II. The City is home to a number of major employers, as well as non-profit organizations and Fortune 1000 companies. The Fifth Avenue South and Third Street South corridors are considered to be the heart, or “downtown” of the City of Naples, and this area is a popular retail and shopping destination. The City of Naples also features a number of cultural centers and organizations including The Naples Players, the Opera Naples, the Philharmonic Center for the Arts, the Philharmonic Orchestra and Theatre Zone Equity Theatre Company, the Naples Jazz Orchestra, the Naples Youth Jazz Orchestra and the Naples Philharmonic Youth Orchestra. City of Marco Island: Incorporated in 1997. 17.1 Square Miles. 2010 Population: 16,413. Originally named San Marco Island by Spanish explorers, Marco Island is the largest barrier island within Southwest Florida's Ten Thousand Islands area, extending southerly to Cape Sable. The island was purchased in the 1920’s by Barron Collier, and was originally incorporated as Collier City in 1927, but was later unincorporated. Marco Island is generally considered to be a resort destination, and the desirability of real estate coupled with the finite supply, has led to a rapid escalation of property values, which are significantly higher than many other parts of Collier County. City of Everglades: Incorporated 1923. 1.2 Square Miles. 2010 Population: 400. The City of Everglades, known more commonly as Everglades City, is located at the mouth of the Barron River, on Chokoloskee Bay, approximately 32 miles southeast of Naples, near the extreme southeasterly corner of Collier County. With the establishment of the Everglades National Park in 1947, the economy of Everglades City began to shift from industrial and agricultural to tourism and eco-tourism. The Everglades National Park visitor’s center is located in Everglades City. There are many other unincorporated, yet distinct, communities in Collier County, both rural and suburban in nature. These include Ave Maria, Golden Gate, Goodland, Naples Manor, Naples Park, Immokalee, Lely Resort and many others. Collier County is a growing county with many diverse geographical areas and populous communities. Collier County is second only to Lee County as the center of growth and activity for the five (5) county area (Charlotte, Collier, Glades, Hendry, and Lee). 12 There are four basic factors that influence value according to The Appraisal of Real Estate, Fourteenth Edition. These factors include: I. Social Forces II. Economic Forces III. Governmental Forces IV. Environmental Forces Each of the forces interacts, resulting in increases, decreases, or stabilization of property values. As a result, these forces also serve to directly affect the demand for real property in a particular area. The four forces that affect values are described as follows: I. Social Forces Population fluctuation has a significant impact on property values. The chart below demonstrates the change in population between the two most recent decennial Censuses.. 2018 (1 JULY EST.) 2010 2000 Change COUNTY POPULATION 378,488 322,653 257,926 +46.74% 1. United States Census Bureau II. Economic Forces Economic considerations involve the financial capacity of the inhabitants of a region to rent or own property and properly maintain it. These economic forces may include income levels, unemployment rates, the economic base of a region and the strength of development and construction. 2019 2018 2017 2016 UNEMPLOYMENT RATE1 2.5% (September) 3.4% (Annual) 4.1% (Annual) 4.8% (Annual) AVERAGE WEEKLY WAGE1 $950 (2Q) $1,002 (4Q) $966 (4Q) $915 (4Q) SINGLE-FAMILY MEDIAN PRICE2 $450,000 (December) $446,000 (Annual) $434,900 (Annual) $420,356 (Annual) RETAIL VACANCY RATE3 5.1% (4Q) 2.2% (4Q) 3.3% (4Q) 5.7% (4Q) OFFICE VACANCY RATE3 8.6% (4Q) 6.8% (4Q) 6.1% (4Q) 7.2% (4Q) INDUSTRIAL VACANCY RATE3 2.1% (4Q) 1.9% (4Q) 0.8% (4Q) 1.2% (4Q) 1. Bureau of Labor Statistics - Quarterly Employment and Wages 2. Florida Realtors 3. Costar 13 The following is a summary of the residential market in Collier County (SEE COVID-19 comments on Page 2): Month Available Inventory Number of Sales Average Marketing Time (DOM) Market Area Median Sales Price Absorption Percentage Nov-15 2,267 258 84 $423,000 11.38% Dec-15 2,377 340 83 $412,000 14.30% Jan-16 2,664 288 78 $425,000 10.81% Feb-16 2,929 261 84 $425,000 8.91% Mar-16 2,942 385 94 $385,000 13.09% Apr-16 2,824 421 78 $434,000 14.91% May-16 2,727 392 84 $432,000 14.37% Jun-16 2,627 410 85 $400,000 15.61% Jul-16 2,517 318 73 $375,000 12.63% Aug-16 2,509 346 86 $385,000 13.79% Sep-16 2,617 299 90 $378,000 11.43% Oct-16 2,794 293 84 $375,000 10.49% Nov-16 2,916 265 80 $395,000 9.09% Dec-16 2,958 338 102 $408,000 11.43% Jan-17 3,163 279 94 $397,000 8.82% Feb-17 3,205 291 101 $402,000 9.08% Mar-17 3,180 428 98 $428,000 13.46% Apr-17 2,937 399 108 $399,000 13.59% May-17 2,689 480 105 $436,000 17.85% Jun-17 2,603 430 92 $405,000 16.52% Jul-17 2,501 353 110 $410,000 14.11% Aug-17 2,400 374 93 $423,000 15.58% Sep-17 2,272 171 100 $449,000 7.53% Oct-17 2,390 299 104 $425,000 12.51% Nov-17 2,565 268 107 $435,000 10.45% Dec-17 2,640 323 109 $416,000 12.23% Jan-18 2,910 277 95 $430,000 9.52% Feb-18 3,050 298 96 $472,000 9.77% Mar-18 2,911 455 94 $455,000 15.63% Apr-18 2,744 445 94 $455,000 16.22% May-18 2,637 484 90 $440,000 18.35% Jun-18 2,564 425 93 $449,000 16.58% Jul-18 3,175 380 94 $423,500 11.97% Aug-18 3,147 356 91 $405,000 11.31% Sep-18 3,206 321 94 $395,000 10.01% Oct-18 3,370 372 91 $425,000 11.04% Nov-18 3,568 340 91 $413,000 9.53% Dec-18 3,473 362 93 $395,900 10.42% Jan-19 3,890 318 96 $380,500 8.17% Feb-19 4,116 300 100 $403,750 7.29% Mar-19 4,033 485 106 $405,500 12.03% Apr-19 3,815 509 97 $460,000 13.34% May-19 3,555 594 110 $410,000 16.71% Jun-19 3,313 484 97 $398,450 14.61% Jul-19 3,116 443 110 $405,000 14.22% Aug-19 2,914 417 95 $395,000 14.31% Sep-19 2,852 364 104 $404,398 12.76% Oct-19 2,675 389 103 $395,000 14.54% Nov-19 2,771 358 91 $425,000 12.92% Dec-19 2,678 475 98 $439,000 17.74% Jan-20 2,842 361 112 $437,500 12.70% Feb-20 2,868 376 99 $425,500 13.11% Averages: 2,944 369 95 $415,627 12.69% Source: Naples Area Board of Realtors Collier County Single Family 14 This historical data indicates that approximately 7% to 17% of the available single family units listed for sale in Collier County were absorbed each month for the most recent 12 month period. The average for the most recent 12 month period was 14.08%, while the last 48 month average was 12.78%. As of the date of this report, the residential markets are in a period of growth and the bulk of the evidence suggests that conditions going forward should be a continuation of our current conditions with slightly moderated growth as the pace of pricing normalizes as shown above. For the most recent 12 month period, there were an average of approximately 3,199 single family residential units on the market per month, and an average of 438 units were absorbed each month. It took an average of 101 days to achieve a sale in 2019 compared to 93 days in 2018, 102 days in 2017, and 85 days in 2016. For the single family product type in Collier County, inventory levels have increased since December 2015. The highest level of inventory was experienced in 2019 with average single family inventory of 3,311 homes which is up from the averages of the previous three years of 3,063 in 2018, 2,712 in 2017, and 2,752 in 2016. The following chart illustrates the average available inventory since November 2015: Average marketing times increased from 2016 level, however, have been relatively consistent from 2017-2019. Although demand has been increasing (see Number of Sales below), the increase in inventory is creating a slight increase in the average marketing time. The following chart illustrates the historical marketing times for this product type since December 2015: 15 The following chart illustrates the number of sales since November 2015: Also, the following chart illustrates the change in pricing levels over the same period: III. Governmental Forces The county government consists of a five-member board of county commissioners, elected to four-year terms within single-member districts. A non-elected county manager heads the government staff. Other elected officials in the county are sheriff, tax collector, supervisor of elections, clerk of the circuit court, and property appraiser. In addition, there are numerous special districts with independently elected boards, with the services provided ranging from fire protection tot water & sewer service. Services There are two incorporated cities with the usual municipal services, such as police protection and fire protection. The balance of the county is patrolled by the Florida State Highway Patrol and the Collier County Sheriff’s Department. Independent fire control districts serve the balance of the unincorporated area for fire and rescue services. 16 Utilities CenturyLink is the primary telephone service provider for Southwest Florida. CenturyLink has a fiber optic backbone that has the ability to connect all of its central offices and maintain high network availability. KMC Telecom, Inc., along with CenturyLink, has a SONET ring surrounding Fort Myers. This SONET ring safeguards customers from service interruptions by using diverse routing of its fiber optic cables. Electricity is supplied by Florida Power and Light and TECO. Gas is available from any one of a number of manufactured bottled gas dealers in the county or directly from TECO. Water and sewer service is supplied by the either city or county government. Medical Services The Naples Community Hospital System is a private non-profit which oversees several facilities throughout the county. Educational System The School District of Collier County oversees the uniform K-12 public educations system within Collier County. There are also several private and parochial schools in the county. Florida Southwestern State College has a campus in Naples, while Florida Gulf Coast University is located in south Lee County. Ave Maria University is a newly established Catholic University located in Naples. Transportation By far, the major artery through Collier County is U.S. 41 (Tamiami Trail). Another major artery is Interstate 75 (I- 75), which connects Naples to the east coast population centers of Miami and Fort Lauderdale. Air service is limited but currently expanding out of Naples Airport. Currently, sixteen airlines operate out of Southwest Florida International Airport, just north of Naples, in Fort Myers. IV. Environmental Forces The county has a sub-tropical climate. The average temperature is 74 degrees. Temperature extremes are infrequent with only a rare freeze and few readings above the mid-90s. Rainfall averages just over 53 inches annually, with the heaviest rains during the summer months. CONCLUSION / LIFE CYCLE STAGE The subject market area is in the Growth stage of its life cycle. This market area experienced tremendous development from 2003-2005, then an equally significant decline in property values from 2006-2011, followed by the current growth cycle from 2012 to current. This growth trend is most pronounced within the Naples area, but increasing property values and new development is also occurring in the eastern rural areas of the County as well as land is becoming scarce in the central (western) areas of Collier County. 17 COMPETITIVE MARKET AREA 18 I. Boundaries: The subject property is located on the north side of Interstate 75, east of CR 951, and west of Everglades Boulevard in the eastern portion of Collier County. The competing market area consists is delineated as follows:  North Immokalee Road  South Interstate 75  West CR 951 (Collier Boulevard)  East SR 29 This portion of Collier County is generally undeveloped, and rural or agricultural in nature, with the exception of developments off Immokalee Road and CR 951 and smaller, rural residential properties of Golden Gate Estates. To the north of this market area is Immokalee, which is an unincorporated community consisting of approximately 20,000 residents. Over the past decade, this area has experienced renewed activity with the Ave Maria Development and most recently with the announcement of the Rivergrass project. These two projects are both part of the Rural Land Stewardship Area (RLSA) program which was established by Collier County's Land Development Code (LDC) 4.08.00 in conformity with the Growth Management Plan in 2002. This program was developed to protect and refurbish areas needed for wildlife habitat and natural flow-ways while allowing property owners the opportunity to develop in a manner that benefits economically and ecologically. Historically, this area has been solely utilized for agricultural, rural residential and some mining purposes. With the Rural Land Stewardship program, approximately 200,000 acres in eastern Collier County have been delineated which gives incentive to property owners to preserve large areas of environmentally sensitive lands and focus development away from these sensitive areas. The program has created a balance between developers and environmental groups in sensitive areas of the County. II. Linkages: There are generally three functional classifications which apply to roadway networks, being arterials, collectors, and local roads. All streets and highways can be grouped into one of these classes, depending on the character of the traffic (i.e., local or long distance) and the degree of access that they allow. Arterials provide the highest level of mobility and a greater degree of access control, while local facilities provide a high level of access to adjacent properties but a low level of mobility. Collector roadways provide a balance between mobility and land access. This market is served by two minor north/south arterial routes and two minor east/west arterial routes. Immokalee Road, CR-951(Collier Boulevard) and Oil Well Road are the primary arterials providing access to the urban core areas west of the subject. Immokalee Road is a County Road, and provides access from the urban areas of Naples starting at its western terminus of Tamiami Trail N.(US 41) east to Immokalee. CR-951 provides north-south access from Immokalee Road south to Marco Island. SR 29 represents the approximate eastern boundary while Interstate 75 (I-75) is the southern boundary. I-75 provides limited access to subject market area with interchanges at CR-951 and SR 29. Oil Well Road, to the north of the subject is an east-west traffic artery which is the “gateway” into Ave Maria. Oil Well Road continues easterly to an intersection with State Road 29, which provides additional access to Interstate 75. 19 III. Demographics: The east Collier County market was historically a rural and low density area of Collier County with a relatively stabilized population base at very low levels until the development of Ave Maria University and surrounding community in the mid 2000’s. This area had historically grown much slower than Collier County as whole, although a sharp spike in population was seen between 2000 and 2010, with the introduction of the university and surrounding communities. Growth within this market area is expected to increase over the next five years, with the Ave Maria project surpassing 2,000 closed homes in 2019 and year over year sales increasing 10.5% from 2018 to 2019. Moreover, other developments such as Rivergrass will continue to add units to this area along with smaller projects such as The Ranch at Orange Blossom. The following chart illustrates the population and households in this market area since 2010: Source: Esri 20 The population growth in this market area had historically lagged far behind Collier County as a whole until the introduction of Ave Maria. This was partially attributable to the stabilized population within this market area and the desire for much of the market to remain at low densities. Between 2000 and 2010, the population grew significantly primarily due to the development of Ave Maria. This growth rate slowed substantially during the recession, and has improved with the sales pace of homes. The competitive market area is projected to have an annual population growth rate of 2.23% through 2024 which exceeds the growth rate of Collier County and Florida. The following is a breakdown of the demographics of delineated market area: Source: Esri IV. Significant Projects: Ave Maria: The Ave Maria community is located near the easterly edge of the above delineated market area. Ave Maria is a Development of Regional Impact (DRI) located in the easterly unincorporated areas of Collier County, south of the community of Immokalee, Florida. Ave Maria University and the surrounding town were created in the early 2000’s in a partnership agreement between Tom Monaghan and the Barron Collier Companies. The original Ave Maria campus was located in Michigan, but was relocated to Collier County when zoning rights for planned expansions in Ann Arbor Michigan could not be obtained. In 2003, the Barron Collier Companies donated approximately 5,000 acres of land for the project, and the campus was opened in 2007 with an initial enrollment of about 700 students. Approximately 20% of the overall lands are designated for the University Campus, with the rest of the lands being used for residential and other development. The town and university are conceptualized to be a Roman Catholic-centric enclave, in a mold similar to that of Notre Dame in Indiana. A number of master planned communities are being developed within the town of Ave Maria by third party builders, and there are approximately 11,000 planned residential units at build-out. Enrollment and home sales have fallen short of initial expectations and, as a result, some of the new master planned communities (such as Maple Ridge, Coquina and Avalon Park) are being marketed to a wider demographic which includes families looking for more affordable single family housing (relative to Naples as a whole) in a small town environment. HHH Ranch Competitive Market Collier County USA Florida 2019 Total Population 48,295 374,752 332,417,793 21,239,528 2024 Total Population 53,913 408,710 345,487,602 22,730,808 2019‐2024 Population: Annual Growth Rate 2.23%1.75%0.77% 1.37% 2019 Median Household Income $75,185 $67,771 $60,548 $54,238 2019 Total Households 15,566 155,885 125,168,557 8,299,404 2019 Average Household Size 3.07 2.37 2.59 2.51 2019 Total Housing Units 19,404 231,924 140,954,564 9,902,470 2019 Owner Occupied Housing Units 13,253 112,413 79,459,278 5,375,035 2019 Median Home Value $286,861 $363,672 $234,154 $234,264 2019 Owner Occupied Housing Units by Value Base 13,253 112,412 79,447,739 5,374,578 2024 Median Home Value $311,139 $389,405 $269,210 $265,468 2024 Average Home Value $350,117 $550,605 $364,253 $333,895 2024 Owner Occupied Housing Units by Value Base 14,897 124,942 83,163,369 5,819,645 21 The following is an overview of the Ave Maria community: 22 The Ave Maria community itself is located near the northeasterly edge of the above delineated market area and has experienced strong initial growth in 2007 with 177 sales followed by 2008-2012 which had an average of 48 sales per year. A resurgence occurred in 2012 with 107 sales and continued with 183 sales in 2014, 287 sales in 2015, 321 sales in 2016, 337 sales in 2017, 237 sales in 2018, and 262 sales in 2019. In total, there has been 2,152 closed sales through 12 December 2019. There are a number of distinctive master planned neighborhoods within Ave Maria, as well as the town center, each having their own product type, character and appeal. These neighborhoods can be described as follows: Del Webb: The Del Webb Naples neighborhood in Ave Maria is a 55+ adult community located along Anthem Parkway, south of the Ave Maria town center. There are 11 models of homes available within the community ranging from 1,289 square feet to 2,634 square feet with two and three bedrooms floor plans. Prices start from $236,990 up to $353,990. Amenities include the Oasis Club, an amenity center featuring over 12,000 square feet of entertainment and fitness space, resort and lap pools, tennis and bocce ball courts, café, art studio and an 18-hole championship golf course. Emerson Park: Emerson Park is a family friendly, all-ages neighborhood located at the northeast corner of the site, originally developed by Lennar and most recently marketed by Pulte, consisting of one and two story single- family homes. There are a number of floor plans and styles available ranging from 1,570 square feet to 3,514 square feet, with three to six bedrooms. This project is now sold out Hampton Village: Hampton Village is being marketed as a traditional-style neighborhood, with homes that feature front porches, alley-loaded garages, and large, single-family floor plans designed specifically for growing families. Hampton Park is located just south of the Town Center. Pulte Homes sold out this project Bellera Walk: Bellera Walk is now sold out. The project was most recently marketed by Divosta Homes. Residences at La Piazza: The Residences at La Piazza are condominium units located on the second and third floors of the Town Center. They are designed to be Mediterranean or European in style with views of the University and the downtown area. The floor plans range in size from 1,189 square feet to over 1,700 square feet of living space. Resales range in price from $180,000 to $287,000. Maple Ridge: Maple Ridge is one of the newer communities within Ave Maria and is intended for single family development by CC Devco. The development will have 1,699 units at buildout with Phases 5A, 5B, and 6A (42), Phase 2 (88), Phase 3 (220), Phase 4 (164), remaining Hampton Village (23), Phase 5A (130), Phase 5B (121), 177 78 48 41 37 37 107 183 287 321 337 237 262 0 50 100 150 200 250 300 350 400 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Sale Price # Sales 23 6A (12) and future phases of 899 units. There are 17 floor plans being offered, with 30 exterior elevation packages. Floor plans range from three to five bedroom homes on one or two stories. Sizes range from 1,935 square feet to 4,032 square feet, and pricing from $289,990 to $417,990. Coquina at Maple Ridge: Coquina at Maple Ridge is located adjacent to the larger Maple Ridge project. This community is designed with smaller, single family lots (45’). This community has homes ranging in size from 1,348 square feet to 2,251 square feet and pricing ranging from $211,990 to $264,990. This project is nearing sellout which should occur in 2Q 2020. Maple Ridge Reserve: Maple Ridge Reserve is also a CC Devco community within Ave Maria and is intended for larger, single family lots and residences. The development has homes ranging in size from 3,097 square feet to 4,358 square feet. Pricing within this community averaged $480,00 to $490,000 in 2019. Marketing began in approximately July 2015. There are 51 lots in Phase I. Due to slow sales for this product type, the developer eventually converted future phases to smaller lots with a project known as Silverwood. Avalon Park: Avalon Park is the newest community within Ave Maria and is being developed by Pulte Homes. The development will consists of 1,200 units with homes ranging in size from 1,565 square feet to 4,242 square feet. Pricing within this community ranges from $242,990 to $436,990. Silverwood: Silverwood is one of the newer communities within Ave Maria and is being developed with single family residences with lots typically of 40’± in width. The development has homes ranging in size from 1,133 square feet to 2,251 square feet. Pricing within this community ranges from $219,990 to $269,990. Ellington Park: Ellington Park is also one of the newer communities within Ave Maria and is bundled within the Avalon Park Community being marketed by Pulte. The development has homes ranging in size from 1,861 square feet to 4,242 square feet. Pricing within this community ranges from $296,990 to $436,990. Lots within this community are typically 70’ to 75’ in width. Town Center and the Arthrex Commerce Park: The La Piazza Town Center is located adjacent to the university campus near the northerly edge of the town of Ave Maria, and is centered around the Ave Maria Oratory Church. The Town Center features retail shops and restaurants as well as office space and public services. Located near the southerly end of the Town of Ave Maria, the Arthrex Commerce Park is a 57 acre flex/light industrial park anchored by the new 197,000 square foot manufacturing facility for Arthrex, Inc., a major medical instrument manufacturing company. This industrial park will eventually encompass 200 acres accommodating a wide range of businesses, R&D and manufacturing. The Ranch at Orange Blossom: This project is a master planned community being developed by Lennar Homes, located along Oil Well Road, just east of Immokalee Road. New homes within the community are priced from between $208,999 to $444,999. Amenities include tennis facilities and a community pool as well as bike and jogging paths throughout the community. To the east of Ave Maria is Camp Keais Road, and little development other than orange groves extending beyond the easterly edge of the market area. To the south of the community is Oil Well Road, with row crops and orange groves extending southerly until development dissolves into conservation lands and the Florida Panther National Wildlife Refuge. To the west of the Ave Maria community is an area of wetlands extending southerly from Lake Trafford which is a flow way draining into the conservation lands to the south. Beyond this area of wetlands are row crops, Oil Well Grade Road, and further west, the fringes of the suburban portions of Collier County. The majority of the area in the competitive market area is within the Rural Land Stewardship Overlay, which encourages conservation, clustering of development and smart growth concepts. Overall, the market area generally serves as an agricultural and rural community with the exception of Ave Maria. Of significance is a proposed project to the west known as Rivergrass which will be a Rural Village SRA under Collier County. This project is proposed to be developed by Collier Enterprises and will consist of 999 acres. The project will eventually include up to 2,500 dwelling units, 80,000 square feet of neighborhood-scaled retail and office uses, and 25,000 square feet of civic, government, and institutional uses, and an 18-hole golf course. The project is still seeking approval by Collier County. On 7 November 2019, the Collier County Planning Commission recommended denial of the application. At the 10 December 2019, Collier County Board of County 24 Commissioner’s meeting, the application was extended and not voted on by the Commission. The following is a summary of the potential projects within the competitive market area from a presentation by Mark Strain in December 2019 titled “Collier County Looking Ahead: Numbers, Updates & Trends 2020”: 25 Source: Mark Strain presentation December 2019: Looking Ahead: Numbers, Updates & Trends 2020 26 V. Stages Of The Market Area Life Cycle: A market area normally goes through four stages during its life cycle. These four stages are as follows:  Growth - a period during which the market area gains public favor and acceptance.  Stability - a period of relative equilibrium without market gains or losses.  Decline - a period of diminishing demand.  Revitalization - a period of renewal, modernization, and increased demand. The subject’s market area is in a period characterized as being in a growth stage given the significant development activity primarily to the west at Interstate 75/Collier Boulevard, and north along Immokalee Road and Oil Well Road. VI. Conclusion: In summary, this geographic area is a mostly rural and agricultural expanse far removed from the urban core, with projects like Ave Maria and Rivergrass being independent enclaves, somewhat isolated geographically, economically, characteristically and ideologically from the surrounding patterns. The population within the larger market area has shown favoritism towards rural and low density lifestyles, and employment and income figures have historically been far below county norms. This area will be a future growth area as western and central portions of Collier County are approaching build-out. Growth continues to spread outward and eastward from the coast and the developed urban core. 27 SEC. IV: PROPERTY DESCRIPTION LOCATION MAP 28 AERIAL MAPS 29 AERIAL DEPICTING RFMU – RECEIVING LANDS AND SENDING LANDS 30 WETLAND JURISDICTIONAL MAP 31 FLUCCS MAP 32 FLOOD MAPS 33 34 CONCEPTUAL SITE PLAN COMPLETED BY RWA ENGINEERING ASSUMING 342 UNITS NOTE: This is a conceptual map completed by RWA Engineering for the property. No approvals are in place for this design. 35 CONCEPTUAL PLAN COMPLETED BY RWA ENGINEERING ASSUMING 578 UNITS NOTE: This is a conceptual map completed by RWA Engineering for the property. No approvals are in place for this design. 36 CONCEPTUAL SITE PLAN COMPLETED BY RWA ENGINEERING ASSUMING A RURAL VILLAGE WITH 852 UNITS NOTE: This is a conceptual map completed by RWA Engineering for the property. No approvals are in place for this design. 37 SURVEY FROM LAND SOLUTIONS, INC. MARKETING FLYER 38 LEGAL DESCRIPTION and 39 LAND DONATED TO COLLIER COUNTY FOR FUTURE WILSON BOULEVARD EXTENSION 40 PROPERTY PHOTOGRAPHS – TAKEN JUNE 2017 W’LY VIEW ALONG BLACKBURN ROAD JUST WEST OF SUBJECT N’LY VIEW ALONG W’LY BORDER OF SUBJECT 41 VIEW OF INTERIOR OF PARCEL VIEW OF INTERIOR OF PARCEL NOTE: Trenches were dug by fire district authorities to assist in stopping fires in 2017. 42 SITE CHARACTERISTICS SUBJECT OVERVIEW: The subject property is an assemblage of eight (8) parcels containing approximately 967+/- acres of gross land area, located along the northerly right-of-way of Interstate 75 (“Alligator Alley”), approximately 3.1 miles east of CR 951 (Collier Boulevard) and approximately 3.6 miles south of Golden Gate Boulevard in the eastern Naples area of Collier County, Florida. The property is subject to Settlement Agreement (Case No.: 08-6933-CA and 08-6988-CA Hussey v. Collier County). A copy of said Settlement Agreement can be found in the Addenda to this report. The Settlement Agreement changed the designation of the northerly 578 acres of the subject property from Sending to Receiving Lands (see Zoning/Land Use). The southerly 384 acres of the subject is designated Sending Lands. ADDRESS: According to the Collier County Property Appraiser, the address of the property is undetermined. The property is located in the unincorporated areas of Collier County, Florida. TAX IDS: 00328560002 00331320006 00330480002 00328640003 00329240004 00330840008 00341960003 00342040003 00329760005 43 LOCATION/ACCESS/ EXPOSURE: The subject property is located along the northerly right-of-way of Interstate 75, east of CR 951 (Collier Boulevard) and south of Golden Gate Parkway in unincorporated Collier County, Florida. The extensive frontage along Interstate 75 provides good exposure to the property. However, as of the date of appraisal, legal access is somewhat uncertain. Physically access is now provided from CR 951, east along White Lake Boulevard to Blackburn Road to the southeast entrance to the subject property. The subject is approximately 1 mile from White Lake Boulevard. Blackburn Road is a 50’ right of way owned by Collier County which is currently a dirt road in poor condition. It is assumed Blackburn Road would be the primary access to the subject and would most likely have to be developed at the expense of the property owner. It is assumed, in addition to this providing access, the property owner would most likely receive some impact fee credits for developing this right of way. Land Solutions, Inc., the listing broker for the property, provided a Conceptual Site Plan completed by RWA Engineering in May 2017, which illustrates potential future access points at the southern intersection of Markley Avenue and Inez Road which would traverse the subject to the east side of the property and potentially access Wilson Boulevard Extension and Haul Road, neither of which exist or are in the planning stages as of the date of valuation. These road extensions are not known to be on Collier County’s plan or the Metro Planning Organization plans in near future. The southern terminus of Wilson Boulevard is approximately 2.5 miles north of the northern boundary of the subject. While the subject property has frontage along Interstate 75, there is no direct access to this highway, and none is likely to ever be granted. Access is a significant hurdle for development of the subject whether for residential purposes or mining purposes. Significant upgrades would be necessary to the roadway networks prior to development of the subject. It is assumed, the property owner would incur significant costs whether in the form of developing Blackburn Road or acquiring rights for an access to the north. SIZE (SITE AREA)/SHAPE: According to the Settlement Agreement, the subject property consists of a total of 967± acres. In addition, there is an additional parcel identified as FOLIO 00329760005 which consists of 5 acres for a total subject size of 967± acres. This appraisal is subject to a current survey. The Settlement Agreement describes the total ownership as 1,110 acres. However, the 143 acres in Section 33 is not part of this appraisal. The Settlement Agreement lists 308 acres in Section 29 and 654 acres in Section 32. The subject property is slightly irregular in shape with the southerly edge measuring approximately one mile in length along the Wilson Road Extension right of way and Interstate 75. 44 PHYSICAL FEATURES (TOPOGRAPHY, ELEVATION, ETC.): The subject property is rather large (967± acres) and, as a result, contains a variety of different topographies and features. According to a letter dated 9 August 2015 from the Department of the Army, Jacksonville District Corps of Engineers, “the project site is a 975 acre parcel containing 14.9 acres jurisdictional freshwater herbaceous wetland and six isolated freshwater herbaceous wetlands totaling 126.3 acres.” In addition, according to a map depicting wetland jurisdiction completed by Synecological Analysts dated 10 December 2010, the property has the following FLUCCS codes and descriptions: FLUCCS CODE DESCRIPTION 321 Palmetto Prairies 321/411 Palmetto Pine Flatwoods 411 Pine Flatwoods 428 Cabbage Palm Dominated 621/428 Cypress with Cabbage Palm 411/428 Pine Flatwoods with Cabbage Palm 428/321 Cabbage Palm with Palmetto Prairies 616 Inland Ponds and Soughs 619 Exotic Wetlands Hardwood 621/422 Cypress with Brazilian Pepper 641 Freshwater Marsh 641/617 Freshwater March Hardwood 621 Cypress with Unimproved Pastures 624 Pine, Cypress, Cabbage Palm 624/619 Melaleuca Invaded A visual description of these topographical features can previously be found on the Wetland Jurisdiction map. 45 UTILITIES: Currently, the subject property has electrical service provided by FP&L. However, the subject property is outside of the Collier County water and wastewater service area which is highlighted below in blue: According to the Collier County Public Utilities Engineering and Project Management Division, serving the subject property would require amending the Collier County Water-Sewer District (CCWSD) boundaries and there are presently no water or wastewater facilities readily available. According to this source, the closest facility is 1.3 miles west of the southwest corner of the subject property and includes a 10” water main and a 2” force main that serves the Collier County landfill. The 2” force main discharges to a 4” force main ¼ mile to the west. The main can be shown as follows: 46 FLOOD ZONE: According to The Federal Emergency Management Agency’s - Flood Insurance Rate Map program (Community Panel No. 12021C0420H and 12021C0440H - Date: May 16, 2012), the subject is primarily situated in an area designated as Zone AH with small portions of the property located within Zone AE. Flood Zone AH has flood depths of 1’ to 3’. Flood Zone AE has base flood elevations determined. Typically, flood insurance is required under most financing situations. IMPROVEMENTS: The subject property has perimeter fencing as well as minor improvements for a hunting style camp. The hunting camp consists of several aging buildings which were damaged by a fire in 2017 and are in extremely poor condition. Because of the large size of the property (967± acres) and the age and condition of these improvements, it is our opinion that any interim use value would be below the rounding threshold used in the appraisal and subsequently would not contribute to the overall value of the subject in an appreciable manner. EASEMENTS, ENCROACHMENTS, ETC.: As noted, as part of the Settlement Agreement, the subject property owner donated the southerly 180’ of Section 32, Township 49 South, Range 27 East to Collier County for the Wilson Boulevard Extension. The subject has access and rights via this property. We are not aware of any other easements or restrictive covenants which may be associated with the subject property, other than those typical easements which are required to provide utility service, and ingress and egress. Furthermore, we are not aware of any other restrictions or development moratoriums that would have an adverse impact on the property. ASSESSED VALUE, TAXES, AND ASSESSMENTS: As of the date of this appraisal, the taxes are paid for 2019, and we are not aware of any outstanding tax liability. 47 ZONING: The subject property has a designated zoning classification by Collier County as follows: 2.03.01 A. Rural Agricultural District (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 A district corresponds to and implements the Agricultural/Rural land use designation on the future land use map of the Collier County GMP, and in some instances, may occur in the designated urban area. The maximum density permissible in the rural agricultural district within the urban mixed use district shall be guided, in part, by the density rating system contained in the future land use element of the GMP. The maximum density permissible or permitted in A district shall not exceed the density permissible under the density rating system. The maximum density permissible in the A district within the agricultural/rural district of the future land use element of the Collier County GMP shall be consistent with and not exceed the density permissible or permitted under the agricultural/rural district of the future land use element. In addition, the subject is located in the overlay districts of Rural Fringe Mixed- Use District – Receiving Lands, Rural Fringe Mixed-Use District – Sending Lands, North Belle Meade Overlay. These are generally described as follows: 2.03.08A.Rural Fringe Mixed-Use District ( RFMU District ). Purpose and scope. The purpose and intent of the RFMU district is to provide a transition between the Urban and Estates Designated lands and between the Urban and Agricultural/Rural and Conservation designated lands farther to the east. The RFMU district employs a balanced approach, including both regulations and incentives, to protect natural resources and private property rights, providing for large areas of open space, and allowing, in designated areas, appropriate types, density and intensity of development. The RFMU district allows for a mixture of urban and rural levels of service, including limited extension of central water and sewer, schools, recreational facilities, commercial uses and essential services deemed necessary to serve the residents of the RFMU district. The innovative planning and development techniques which are required and/or encouraged within the RFMU district were developed to preserve existing natural resources, including habitat for listed species, to retain a rural, pastoral, or park-like appearance from the major public rights-of- way, and to protect private property rights. 48 ZONING - CONTINUED: RFMU receiving lands. RFMU receiving lands are those lands within the RFMU district that have been identified as being most appropriate for development and to which residential development units may be transferred from RFMU sending lands . Based on the evaluation of available data, RFMU receiving lands have a lesser degree of environmental or listed species habitat value than RFMU sending lands and generally have been disturbed through development or previous or existing agricultural operations. Various incentives are employed to direct development into RFMU receiving lands and away from RFMU sending lands, thereby maximizing native vegetation and habitat preservation and restoration. Such incentives include, but are not limited to: the TDR process; clustered development; density bonus incentives; and, provisions for central sewer and water. Within RFMU receiving lands, the following standards shall apply, except as noted in subsection 2.03.08 A.1. above, or as more specifically provided in an applicable PUD. RFMU sending lands. RFMU sending lands are those lands that have the highest degree of environmental value and sensitivity and generally include significant wetlands, uplands, and habitat for listed species. RFMU sending lands are the principal target for preservation and conservation. Density may be transferred from RFMU sending lands as provided in LDC section 2.03.07 D.4.c. All NRPAs within the RFMU district are also RFMU sending lands 2.03.08C. North Belle Meade Overlay District (NBMO). Purpose and intent. The North Belle Meade Overlay (NBMO) is unique to the RFMU district because it is surrounded by areas that are vested for development on three sides. Because this area is largely undeveloped and includes substantial vegetated areas, the NBMO can and does provide valuable habitat for wildlife, including endangered species. The NBMO is intended to achieve a balance of both preservation and opportunities for future development that takes into account resource protection and the relationship between this area and the Estates developing around the NBMO. 49 FUTURE LAND USE: The subject property is designated Rural Fringe Mixed Use District under the Collier County Comprehensive Land Use Plan. Per the Comprehensive Plan: The following is a link to the Future Land Use Element of the Growth Management Plan of Collier County: http://www.colliergov.net/home/showdocument?id=67997 50 SEC. V: HIGHEST & BEST USE ANALYSIS Real estate is valued in terms of its highest and best use. Highest and best use is the use which would be the most profitable and likely use of a property. It may also be defined as that available use and program of future utilization which produces the highest present land value. Highest and best use is defined by The Dictionary of Real Estate Appraisal, Sixth Edition, as follows: 1. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) The Highest and Best Use Analysis begins with an analysis of the property as if vacant and available to be put to its highest and best use. The property is further analyzed if there are improvements, either existing or proposed, for the site. The four criteria of highest and best use are as follows:  Legally Permissible Use - what uses are permitted by zoning and deed restrictions on the subject property?  Physically Possible Use - what uses are physically possible to put on the site?  Financially Feasible Use - which possible and permissible uses will produce a net return to the owner of the site?  Maximally Productive Use - among the feasible uses, which use will produce the highest net return? PRESENT USE The subject property presently utilized for speculative holding for future development. HIGHEST AND BEST USE AS VACANT The highest and best use analysis of the site examines the type of improvement that is most appropriate for a particular site. Legally Permissible Within this community, the future land use categories are broad indicators of growth potential such as raw residential density and service provision, while the zoning designation controls specific allowable development. The subject property is zoned A (Rural Agricultural District) by Collier County. 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. Other uses such as single family dwelling, oil and gas exploration, and others are permitted. In addition, the property is located within the Rural Fringe Mixed Use (RFMU) Receiving Lands overlay and Sending Lands overlay and the North Belle Meade Overlay. The subject property consists of 583 acres located in the RFMUD-Receiving Lands and 384 acres in the RFMUD-Sending Lands. Furthermore, according to the Growth Management Plan, the property is located within the Rural Fringe Mixed Use District – Receiving lands and Rural Fringe Mixed use District – Sending Lands as well as the North Belle Meade Overlay of the Comprehensive Land Use Plan of Collier County. The subject property is somewhat unique in that the property 51 has development rights stemming from a settlement agreement between Francis D. Hussey, Jr. and Mary P. Hussey and Winchester Lakes Corporation with Collier County. This Settlement Agreement, which can be found in the Addenda to this report, has several nuances which supersede the Land Development Code. According to Collier County Government, Growth Management Department, the 384 acres located within RFMUD-Sending has a base density by right of 9 dwelling units (384 acres/40 units per acre = 9.6 dwelling units rounded to 9 dwelling units). In total, including base TDRs and bonus TDRs, the sending area could potentially have 230.4 TDR credits. The following is a breakdown of the subject lands located in the RFMUD-Sending lands along with the estimated base density allowable: Folio # Owner S T R # Acres** # Acres* Base Density por. 00341960003 HUSSEY JR, FRANCIS D & MARY P 32 49 27 187.5 por. 00342040003 HUSSEY JR, FRANCIS D & MARY P 32 49 27 187.5 TOTAL 375 384 9.6 = 9 DUs *Acres = This is the number of acres identified in the Executive Summary to the Board of County Commissioners for May 23, 2017 meeting (both text and map). **Acres = Acres from Collier County Property Appraiser Records The following is a breakdown of the potential TDRs which could be achieved on the subject property according to Collier County Government, Planning Department: Base TDRs Early Entry TDRs RMP TDRs* Conveyance TDRs** Total TDRs 76.8 76.8 76.8 0 230.4 *Restoration and Maintenance Plan potential bonus TDR credits **Conveyance TDRs are assumed to be 0 as there is no acceptable entity willing to assume ownership and management responsibility in Sending in this area. In addition, a total of 583 acres of the subject property is located within RFMUD-Receiving Lands. According to Collier County Government, Planning Department, the subject property has a base, allowable density of 116 units (583 acres/5 units per acre = 116.6 units rounded to 116 units). Furthermore, the property has a potential density of 1 unit per 1 acre by maximizing TDR credits. The property could achieve 583 dwelling units by acquiring TDR credits from Sending Lands. Moreover, if the property is developed as a Rural Village (RV), there would be a potential for a minimum density of 1.5 dwelling units per acre up to a maximum density of 3 dwelling units per acre. The following is a breakdown of the subject parcels located within the RFMUD-Receiving Lands as well as the estimated potential TDRs on the subject property with and without a Rural Village: Folio # Owner S T R # Acres** # Acres* Base Density 00328560002 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 260 00331320006 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 10 00330480002 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 5 00328640003 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 10 00329240004 HHH Investments LTD 29 49 27 5 00330840008 SEAN MEADE HUSSEY TRUST 29 49 27 5 por. 00341960003 HUSSEY JR, FRANCIS D=& MARY P 32 49 27 139.5 por. 00342040003 HUSSEY JR, FRANCIS D=& MARY P 32 49 27 139.5 00329760005 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 5 579 583 116.6 = 116 DUs *Acres = This is the number of acres identified in the Executive Summary to the Board of County Commissioners for May 23, 2017 meeting (both text and map). **Acres = Acres from Collier County Property Appraiser Records Maximum TDRs RV Minimum Density RV Medium Density RV Maximum Density 583 DUs 867 DUs 1306 DUs 1734 DUs Based on the zoning, zoning overlays, and land use, the legally permissible uses would be agricultural, residential, and/or oil and gas exploration. 52 Physically Possible Various physical factors have an effect on the uses to which a property may be developed. These factors may include: size, shape, topography, and soil conditions. The subject property is slightly irregular in shape, consisting of an estimated 967± acres of land area. The southerly portion of the subject property benefits from extensive frontage along Interstate 75 (Alligator Alley) but has no access to this highway. According to information from the Department of Army, Jacksonville District Corps of Engineers, there are a total of 126.3 acres of jurisdictional wetlands. These wetlands, in our opinion, based on preliminary conceptual plans completed by RWA Engineering, are placed in a manner which allow for a sufficient layout of a residential community. Although the subject property benefits from legal rights associated with the RFMUD-Sending Lands and the RFMUD-Receiving Lands, there are some physical constraints to the subject property in terms of access. Currently, the property is physically accessed via Whitelake Drive to Blackburn Road to the southwest corner of the subject property. Moreover, as per the aforementioned Settlement Agreement, the Husseys (Property owner) deeded to Collier County 180’ of right of way for the future Wilson Boulevard Extension (Blackburn Road) along the southerly line of the property. This land area deeded to the County consists of 22.31± acres. In return for deeding this property, the property owner received $55,795 in road impact fees which will run with the subject property into perpetuity. The property owner will be permitted to access this future Wilson Boulevard Extension for residential and agricultural uses with at least two tie in locations that permit left turns in. As per the Settlement Agreement, the property owner may be permitted access onto the future Wilson Boulevard Extension for the hauling of excavated materials which access will be subject to the conditions of any excavation permits or conditional uses that may be obtained. The property owner entitlements to density and TDRs shall include this area dedicated to the County (22.31 acres). The subject site area is sufficient to allow for development and all legally permissible uses could be physically placed on the subject without any unreasonable hindrance. As of the effective date of appraisal, the subject property does not have utility (water or sewer) or access networks sufficient to support residential development, although extension and development of the necessary infrastructure is physically possible. The physical nature of the subject does not preclude any of the legally permissible uses. Based upon the physical characteristics of this site, the legally permissible uses would be physically possible. Financially Feasible As long as a potential use has value commensurate with its cost and conforms to the first two tests, the use is considered to be financially feasible. In contemplating the feasible uses, consideration must be given to the site location, physical features of the property and access. Many of the previously discussed factors such as lack of available roadways, utility services, wetland mitigation and environmental issues could result in higher than normal infrastructure, planning and construction costs for the subject as well as lengthened holding and absorption periods. These issues are compounded by the extremely large size of the property, the distance to more centralized urban core areas, and the regulatory and environmental challenges connected to the site. Two possible alternative future development scenarios for the subject would be for mixed use residential development or natural resource extraction. These uses are not mutually compatible, and development of one use would most likely exclude the other use, at least for the reasonably foreseeable future. In terms of residential development, although there is a certain segment of any population which desires to live in a primarily rural environment, the majority of the population prefers more centrally located housing, closer to the urban core, near goods and services, schools and employment. There are several new projects in the subject market area, which have increased the amount of available inventory. The primary developments in this area consist of Ave Maria and The Ranch at Orange Blossom. Furthermore, permitting is in place for the aforementioned Rivergrass development. Although the most immediate physical access to the subject property at the current time is via CR951 to Whitelake Boulevard to Blackburn Road, it appears a future access could also be north from Golden Gate Parkway South to the subject property. However, this access would require easements or right of way acquisitions and a significant, potential expense. Although the traditional development patterns in Collier County have been west of the subject property, as these areas are building out, areas east of 951, namely off of Immokalee Road, are becoming favorable to the market. 53 Considering this, the legally permissible and physically possible uses are acceptable and would not meet undue resistance in the market; however, the most feasible use appears to be for interim hold/agricultural uses to reduce holding costs, and continued holding for future development (2-5 years) as demand increases in Collier County and infrastructure and access/roadway networks become more available to the site. Maximally Productive The highest and best use of a site is determined by the improvements that would generate the highest return to the land. In determining the highest and best use of this property, we have considered those uses which are legally permissible, physically possible, and financially feasible. In addition, we have considered the likelihood of regulatory changes such as zoning or land use amendments which might be reasonably expected in the foreseeable future. We have also considered the external conditions and timing associated with various development scenarios available to the subject. Based upon our analysis, it is our opinion that any type of development of the property under the current conditions would require significant investment, a lengthy time horizon, and a very high risk. Furthermore, based upon these facts, conclusions, and opinions, we believe the maximally productive use of the subject site is for interim agricultural use to reduce holding costs, and then future residential and conservation uses. 54 SEC. VI: VALUATION OF SUBJECT PROPERTY THE APPRAISAL PROCESS There are three standard approaches to property valuation:  Cost Approach to Value  Sales Comparison Approach to Value  Income Approach to Value Each of these three approaches usually will indicate a slightly different value. After all of the factors of the three approaches have been carefully weighed, the indicators of value are correlated to a final opinion of value. Cost Approach to Value The Cost Approach to Value requires estimating the replacement cost new of the improvements, utilizing current labor and material prices and modern construction techniques. Next, accrued depreciation is estimated and subtracted from the cost new. Finally, the land value is added to the remainder to derive a value for the property as a whole. The Cost Approach is most reliable when the improvements are new and the opinion of land value can be reasonably developed. Conversely, when the improvements are older and/or adequate land sales are not available, the Cost Approach provides a less reliable result. Sales Comparison Approach to Value An opinion under the Sales Comparison Approach to Value is derived by comparing the property under appraisal with other similar properties that have sold recently. The Sales Comparison Approach is most reliable when the comparable sales are very similar to the subject property and have occurred relatively recently. Conversely, when large or numerous adjustments are necessary, the Sales Comparison Approach is less reliable. Income Approach to Value The Income Approach to Value is normally applied to commercial or income-oriented properties, since it measures the present worth of future rights to income. The Income Approach to Value, when adequate income and expense data are available, is often the most reliable approach in the valuation of commercial properties as it best represents investors' and lenders' actions in the marketplace. Approaches Developed As the subject of this appraisal is a vacant tract of land, we have utilized the Sales Comparison Approach to Value considering both large vacant land sales with a similar highest and best use and an analysis of Transferrable Development Right credits. As they are not applicable to the property type, the Cost Approach and Income Approach have not been utilized. 55 THE SALES COMPARISON APPROACH TO VALUE The Sales Comparison Approach to Value is a process of comparing sales of similar properties in the marketplace to the subject property. Market data, when carefully verified and analyzed, is good evidence of value because it represents the actions and reactions of sellers, users and investors. The opinion of market value has been defined as an interpretation of the reactions of typical users and investors in the marketplace. The Sales Comparison Approach is based upon the principle of substitution, which states that a prudent person will not pay more to buy a property than it would cost to buy a comparable substitute property. The price a typical purchaser pays is usually the result of an extensive shopping process in which he/she is constantly comparing available alternatives. The steps in the Sales Comparison Approach are: 1. Seek out similar properties for which pertinent sales and data are available. 2. Qualify the prices as to terms, motivating forces and bona fide nature. 3. Compare each of important attributes of the comparable properties with the corresponding attributes of the property being appraised under the general division of time, location and physical characteristics. 4. Consider all dissimilarities in terms of their probable effect upon the sale price. 5. Formulate an opinion of relative value of the property being appraised as compared with the price of each similar property. Source: Appraisal Institute, The Appraisal of Real Estate, 14th edition. (Chicago: Appraisal Institute, 2013). As previously stated, the purpose of the appraisal is to arrive at an opinion of market value of the subject property, as if otherwise free and clear of all liens, mortgages, encumbrances, and/or encroachments as of the date of appraisal of 2 April 2020. Because of the unique nature of the subject such as the large size, unique geographical features, location, lack of utilities, access issues, etc, we have used similar properties which also have many differing characteristics, which we have made every attempt to consider. The comparable sales will be analyzed primarily based upon the price per acre multiplier. This is the multiplier which is most commonly used by market participants when trading these types of properties. Because of the scarcity of sales of similar comparability in the subject geography, we expanded the search area to include other market areas. The selected sales would be considered the most similar sales available for comparison to the subject property, although significant adjustments for differences in elements of comparison would be necessary. A dataset of comparable listings will also be presented and analyzed. Comparable listings are useful in that they illustrate the competitive properties which are available in the marketplace, and might be considered as substitute properties by a potential buyer of the subject. In developing an opinion of market value for the subject property via the Sales Comparison Approach, we have analyzed the following comparable sales: 56 COMPARABLE LAND SALES MAP 57 COMPARABLE LAND SALE 1 2467 DATE OF SALE: January 28, 2015 ADDRESS: 17311 Immokalee Road SALE PRICE: $9,765,000 STRAP #: 00113400005 & 00209280003 SALE PRICE (ADJUSTED): $9,765,000 SALE CONDITIONS: Arms-Length RECORDING: 5116/1395 UTILITIES: Telephone, Electric, Well GRANTOR: Jeffrey D Gargiulo Tr. ZONING: A-MHO GRANTEE: The Trust for Public Land LAND USE: Rural Fringe Mixed Use District (Receiving) FINANCING: Cash to Seller SALE HISTORY: None in prior 3 years TOPOGRAPHY: Pasture, native, wetlands ACCESS: Direct (Open Median) VERIFICATION: Rep. of Grantee: Wayne Griffin HIGHEST AND BEST USE: Agriculture/Future Development SITE AREA: 27,004,151 Square Feet 619.930 Acres UNIT OF VALUE: $0.36 Per SF $15,752 per AC COMMENTS: This is the sale of a 619.93 acre parcel located on the west side of Immokalee Road in Naples. As of the date of sale, no additional entitlements were in place for the property. The site could be physically developed on the 310.5 acres of uplands existing on the northerly and southerly ends of the property at the density allowed by the existing zoning. There are significant wetlands (309.43 acres) bisecting the middle of the site which need to be preserved, as they are necessary for the active flow of water into CREW (Corkscrew Regional Ecosystem Watershed). The nearest utilities are more than a mile away (1.25 miles), and would need to be extended at the developer's expense prior to development. Additionally, traffic and concurrency issues may exist, depending on the density of the development ultimately approved. The subject was purchased subject to oil, mineral and other rights per the deed. 58 COMPARABLE LAND SALE 2 2730 DATE OF SALE: May 12, 2016 ADDRESS: 16000-16004 Immokalee Road SALE PRICE: $38,479,500 STRAP #: 00209240001,00113480009, 00113520068, 00209200009 SALE PRICE (ADJUSTED): $38,479,500 SALE CONDITIONS: Arm's Length RECORDING: 5273/1278 UTILITIES: Telephone, Electric, Well GRANTOR: Michael J Boran and Ronald L Brown, as co-trustees of the State Road 846 ZONING: A-MHO GRANTEE: 27th/Pico Boulevard Limited Partnership LAND USE: Rural Fringe Mixed Use District (Receiving) FINANCING: Cash to Seller SALE HISTORY: None in prior 3 years TOPOGRAPHY: Mining Operation ACCESS: Direct (Open Median) VERIFICATION: Broker: Billy Rollins HIGHEST AND BEST USE: Agricultural/Future development SITE AREA: 112,210,560 Square Feet 2,576.000 Acres UNIT OF VALUE: $0.34 Per SF $14,938 per AC COMMENTS: The is the sale of a 2,576 acre parcel located on the east side of Immokalee Road, approximately 12 miles east of I-75 in North Naples. The property is an ongoing mining operation (terms of which must be completed prior to any development) and there are also 950 acres that are leased for row crops/cattle grazing. There are some wetlands and the nearest utilities are more than a mile away, which would need to be extended at the developer's expense prior to development. Additionally, traffic and concurrency issues may exist, depending on the density of any development. 59 COMPARABLE LAND SALE 3 3146 DATE OF SALE: November 30, 2017 ADDRESS: I-75 SALE PRICE: $42,435,000 STRAP #: 01-47-25-00-00001.0000 + 8 additional parcels SALE PRICE (ADJUSTED): $42,435,000 SALE CONDITIONS: Arm's Length RECORDING: 2017000251345 UTILITIES: No Central GRANTOR: Investors Warranty of America, LLC ZONING: AG-2 GRANTEE: Lee County LAND USE: Wetlands, DR/GR FINANCING: Cash SALE HISTORY: Prior sales were separate transactions TOPOGRAPHY: Uncleared ACCESS: Private Easement VERIFICATION: Grantee HIGHEST AND BEST USE: Agriculture/Future development SITE AREA: 175,743,691 Square Feet 4,034.520 Acres UNIT OF VALUE: $0.24 Per SF $10,518 per AC COMMENTS: The property is located on the east side of I-75, south of Corkscrew Road in Bonita Springs. This is a Conservation 20/20 purchase by Lee County with the preservation of the DR/GR where the property is located. The property is known as Edison Farms and will connect to existing county and state owned lands and will be utilized as a conservation site by Lee County. There are approximately 2,800 acres of wetlands, pasture and pine flatwoods and 1,200 acres of uplands that had potential for development. The property is also located within the Estero Bay Watershed and contains headwaters for three major tributaries to Estero Bay. It is also contiguous to Corkscrew Regional Ecos ystem Watershed (CREW) to the east. Access and utilities are from Corkscrew Road approximately 1.5 miles to the north. 60 COMPARABLE LAND SALE 4 4043 DATE OF SALE: October 29, 2018 ADDRESS: 19720 Immokalee Road SALE PRICE: $1,500,000 STRAP #: 00103880004 + 6 additional parcels SALE PRICE (ADJUSTED): $1,500,000 SALE CONDITIONS: Arm's Length RECORDING: 5567/3371 UTILITIES: Well and septic GRANTOR: Riverpointbridge, LLC ZONING: A-MHO-RFMUO-Neutral-Rural Agricultural District GRANTEE: Brentwood Holdings Limited Partnership LAND USE: Rural Fringe Mixed Use District-Neutral Lands FINANCING: Cash to seller SALE HISTORY: No arm's length transactions in previous three years TOPOGRAPHY: Former excavation site ACCESS: Direct VERIFICATION: Gregory Jarrett, Grantor HIGHEST AND BEST USE: Agricultural/Future development SITE AREA: 9,008,208 Square Feet 206.800 Acres UNIT OF VALUE: $0.17 Per SF $7,253 per AC COMMENTS: The property is located on the south side of Immokalee Road, east of Friendship Lane in Naples. This is a former excavation site with 160 acres of lakes and approximately 46 acres of uplands. The site has a conditional use approval for excavation. The property has a Mobile Home Overlay and Rural Fringe Mixed Use Overlay-Neutral Lands Area. There are mobile homes and a small garage on the property that had no contributory value. The seven parcels associated with the sale include: 00103880004, 00104120006, 00105320009, 00105360001, 00105600004, 00106640005, 00106800104 61 COMPARABLE LAND SALE 5 3629 DATE OF SALE: May 31, 2019 ADDRESS: 18500 Corkscrew Road SALE PRICE: $19,500,000 STRAP #: 30-46-27-00-00001.0000 SALE PRICE (ADJUSTED): $19,500,000 SALE CONDITIONS: Arm's Length RECORDING: 2019000130510 UTILITIES: Telephone, Electric GRANTOR: Pepperland, LLC ZONING: RPD GRANTEE: TPI-Land-Sub, LLC LAND USE: DR/GR & Wetlands FINANCING: Cash to Seller SALE HISTORY: None in prior 3 years TOPOGRAPHY: Cleared (Row Crops) ACCESS: Direct (Open Median) VERIFICATION: Grantee HIGHEST AND BEST USE: Residential SITE AREA: 27,791,280 Square Feet 638.000 Acres UNIT OF VALUE: $0.70 Per SF $30,564 per AC COMMENTS: This is the sale (02/2019 contract) of a 638 acre parcel located on the south side of Corkscrew Road, east of Six L's Farm Road in Estero. The RPD approval allows for 638 units by right, with an additional 62 by TDR, as well as requires 55% conservation and connection to water/sewer. 62 COMPARABLE LAND SALE 6 3639 DATE OF SALE: October 01, 2019 ADDRESS: 19500 Corkscrew Road SALE PRICE: $33,000,000 STRAP #: 29-46-27-00-00001.0000, 31-46-27-00- 00001.1000 & 32-46-27-00-00001.1000 SALE PRICE (ADJUSTED): $33,000,000 SALE CONDITIONS: Arm's Length RECORDING: 2019000227805 UTILITIES: Telephone, Electric GRANTOR: Pan Terra Holdings, LTD ZONING: MPD GRANTEE: TPL-Land-Sub, LLC LAND USE: DR/GR (1 du/10 ac) & Wetlands (1 du/20 ac) FINANCING: Cash to seller SALE HISTORY: None in prior 3 years TOPOGRAPHY: Citrus groves ACCESS: Direct (Open Median) VERIFICATION: Grantee HIGHEST AND BEST USE: Mixed-Use SITE AREA: 63,597,600 Square Feet 1,460.000 Acres UNIT OF VALUE: $0.52 Per SF $22,603 per AC COMMENTS: This is a 1,460 acre parcel located on the south side of Corkscrew Road, west of Carter Road in Estero. The MPD allows for 1,460 dwelling units and 30,000 sq ft of improved commercial uses, as well as requires 55% conservation and connection to water/sewer. 63 Comparable Land Sales Chart The comparable sales and our analysis thereof are summarized in the following chart: Description of Sales Sale 1 is the January 2015 sale of a vacant agricultural parcel located on the west side of Immokalee Road in northeast Collier County. The property sold for $9,765,000 or $15,752 per acre. This sale, along with all of the sales, was adjusted upward 0.25% per month or 3.00% per year to account for increasing values for these property types in the market which resulted in a transactionally adjusted price of $18,193 per acre. This property also required a downward adjustment for access. The comparable property is located directly on Immokalee Road which is superior to the subject’s requirement to extend a right of way a minimum of one mile from the Comparable No. 1 Comparable No. 2 Comparable No. 3 Comparable No. 4 Comparable No. 5 Comparable No. 6 Transaction Data: Date of Sale:Jan-15 May-16 Nov-17 Oct-18 May-19 Oct-19 Sale/Listing Price:$9,765,000 $38,479,500 $42,435,000 $1,500,000 $19,500,000 $33,000,000 Sale/Listing Price (Adjusted):$9,765,000 $38,479,500 $42,435,000 $1,500,000 $19,500,000 $33,000,000 Physical Data: Street Address:17311 Immokalee Road 16004 Immokalee Road Corkscrew Road(Edison Farms) 19720 Immokalee Road 18500 Corksrew Road 19500 Corkscrew Road County:Collier Collier Lee Collier Lee Lee Gross Sq. Ft. (Site):27,004,151 112,210,560 175,743,691 9,008,208 27,791,280 63,597,600 Gross Acres (Site):619.93 2,576.00 4,034.52 206.80 638.00 1,460.00 Shape:Rectangular Square Rectangular Rectangular Square Square Wetlands:Significant Intermittent Significant Significant Intermittent Intermittent Topography:Pasture, native, wetlands Excavated, native, wetlands Pasture, native, wetlands cleared/lake row crops crops/citrus Entitlements:None None None None Yes - residential Yes - res. And commercial Utilities:Rural Rural Rural Rural by extension by extension Use Data: Zoning:A-MHO A-MHO AG-2 A-MHO-RFMUO RPD MPD Land Use:RFMUD RFMUD DRGR & Wetlands Agricultural/Rural Mixed Use DRGR & Wetlands DRGR & Wetlands Highest and Best Use:Agriculture/Future Development Agriculture/Future Development Agriculture/Future Development Agricultural/Future Development Future Res. Development Future Res. Development Sales Price Analysis: Unadjusted Price per Acre $15,752 $14,938 $10,518 $7,253 $30,564 $22,603 Transactional Adjustments: Financing Terms:0.0%0.0%0.0%0.0%0.0%0.0% (Per Acre):$15,752 $14,938 $10,518 $7,253 $30,564 $22,603 Conditions of Sale:0.0%0.0%0.0%0.0%0.0%0.0% (Per Acre):$15,752 $14,938 $10,518 $7,253 $30,564 $22,603 Expenditures After Purchase:0.0%0.0%0.0%0.0%0.0%0.0% (Per Acre):$15,752 $14,938 $10,518 $7,253 $30,564 $22,603 Market Conditions (time):15.5%11.8%7.3%4.5%2.8%1.5% Market Adjusted Price per Acre $18,193 $16,693 $11,281 $7,580 $31,405 $22,942 Physical Adjustments: Location:-15.00%-15.00%-20.00%-10.00%-20.00%-20.00% Access/Exposure (Frontage):-20.00%-20.00%0.00%-20.00%-20.00%-20.00% Size (Site Area):-5.00%10.00%10.00%-10.00%-5.00%5.00% Topography,External,Environ, Use:0.00%-15.00%5.00%40.00%0.00%0.00% Shape:0.00%0.00%0.00%0.00%0.00%0.00% Utilities:0.00%0.00%0.00%0.00%-10.00%-10.00% Zoning/Land Use:0.00%0.00%0.00%0.00%-15.00%-15.00% Net Adjustment:-40.00% -40.00% -5.00% 0.00% -70.00% -60.00% ADJUSTED PRICE $10,916 $10,016 $10,717 $7,580 $9,421 $9,177 64 subject. This property was considered superior in terms of its location on the more developed Immokalee Road. This property has a similar lack of utilities which would have to be extended a similar distance as needed by the subject. The site is similar in terms of topography, environmental conditions (50% wetlands), shape, and zoning, and little or no adjustment would be required for these elements of comparison. The final adjusted value indication is $10,916 per acre. Sale 2 is the May 2016 sale of a vacant parcel located on the east side of Immokalee Road in northeast Collier County. The property sold for $38,479,500 or $14,938 per acre. After adjusting for market conditions, this sale had an adjusted price of $16,693 per acre prior to physical adjustments. This property also required a downward adjustment for access. The comparable property is located directly on Immokalee Road which is superior to the subject. The property, at 2,576 acres, was significantly larger than the subject and required an upward adjustment on a per acre basis. This property was considered similar in terms of lack of utilities which would have to be extended a similar distance as needed by the subject. The site also benefits from ongoing mining operations which are generating income in the interim and reducing holding costs. The parcel was purchased with the intent of residential development, and the requirement to finish the mining permit, while beneficial in terms of providing interim income, has also delayed the ability to redevelop the site in the near term. With that being said, consideration is given to the interim income being generated by the sale property, and a downward adjustment was made. The final adjusted value indication is $10,016 per acre. Sale 3 is a property known as Edison Farms located south of Corkscrew Road with direct exposure to Interstate 75 similar to the subject. The property sold in November 2017 for $42,435,000 or $10,518 per acre. The property has several factors which are extremely similar to the subject such as the need to extend a roadway over one mile along with utilities. Moreover, the Edison Farms property has extensive frontage on Interstate 75. This property was considered superior given its location with close proximity to Corkscrew Road and Interstate 75 and, as such, a downward adjustment was applied for location and access. Furthermore, an upward adjustment for size was necessary as this property was 4,035 acres compared to the subject at 967 acres. The Edison Farms property had wetland area greater than the subject and an upward adjustment for topography was considered. The final adjusted value indication is $10,717 per acre. Sale 4 is the October 2018 sale of a vacant parcel located on the south side of Immokalee Road (State Road 82) in eastern Collier County. This property sold for $1,500,000 or $7,253 per acre. After adjusting for market conditions, this sale had an adjusted price of $7,580 per acre prior to physical adjustments. The property required a downward adjustment for its superior location on Immokalee Road and access to said road. Furthermore, this property was considered inferior due to its more intense wetlands compared to the subject property. The final adjusted value indication is $7,580 per acre. Sale 5 is the May 2019 sale of a vacant parcel located on the south side of Corkscrew Road. This property sold for $19,500,000 or $30,564 per acre. After adjusting for market conditions, this sale had an adjusted price of $31,405 per acre prior to physical adjustments. This property was considered to be far superior in terms of its location in southern Lee County off of Corkscrew Road. This property was also considered to be superior due to its frontage and access to Corkscrew Road as well as its availability of utilities and superior zoning. The final adjusted value indication is $9,421 per acre. Sale 6 is the October 2019 sale of a vacant parcel located along the south side of Corkscrew Road in Lee County. This property sold for $33,000,000 or $22,603 per acre. After adjusting for market conditions, this sale had an adjusted price of $22,942 per acre prior to physical adjustments. This sale was considered to be far superior in terms of its location off of Corkscrew Road. Moreover, the property was considered superior due to its access to said roadway as well as its availability to utilities and its superior MPD zoning in place. The final adjusted value indication is $9,177 per acre. 65 Analysis of Comparable Data This analysis is dependent upon adjustments to the sale prices of the comparable sales based on the following elements of comparison outlined by The Appraisal Institute: 1. Real property rights conveyed 2. Financing terms 3. Conditions of sale 4. Expenditures made immediately after purchase 5. Market conditions 6. Location 7. Physical characteristics 8. Economic Characteristics 9. Use 10. Non-realty components of value For ease of analysis, we have divided this list into two parts. This division is based upon the type of adjustments made for the differences. Elements 1 – 5 are considered to be transactional adjustments, whereas elements 6 – 10 are considered to be physical adjustments. Transactional Adjustments There were no transactional adjustments warranted for Property Rights Conveyed, Financing Terms, Conditions of Sale, and Expenditures Made Immediately after Purchase for these sales. In considering Changes in Market Conditions since the time of sale, we must consider the significant changes in the Southwest Florida real estate market. The property value trend found throughout Southwest Florida changed drastically over the past decade, with substantial increases during the period of 2002-2005, followed by equally substantial declines during the period of 2006-2009 and this declining trend reversed in 2012. From 2012 to 2015, increases were approximately 0.50%. This trend slowed from 2015 to current with increases but at a slower increase. In addition, according to the Land Values 2019 Summary published by the United States Department of Agriculture, cropland in Florida indicated a statewide increase of 2.1% from 2018-2019. On the other end of the spectrum, Collier County median residential home prices have increased (see Market Area Analysis). The median single-family home price increased 5.39% from February 2019 to February 2020. Considering these benchmarks, and the highest and best use of the subject, it is our opinion that a 3.0% increase per year would be reasonable for this analysis. Physical Adjustments We have considered the following specific physical adjustments to the comparable sales. A brief description of the nature of these characteristics is provided below:  Location: Location refers to the economic attributes of the surrounding market area, drive times, proximity to goods and services, etc. These attributes affect the financially feasible uses of the site, and can also be one of the most significant factors affecting value and desirability. The subject property is located in the eastern portion of Collier County in a rural area somewhat removed from most support facilities. The comparable properties are likewise in less developed areas of either eastern Lee County or Collier County. Sales 1, 2, and 3 are all located in eastern Collier County on Immokalee Road. These properties, although located in a rural area of Collier County, are considered superior given the significant development in proximity to these properties. Sales 3, 5, and 6 are located in eastern Lee County along Corkscrew Road. Most of these properties are surrounded by residential and more intensive commercial uses. These sales also required a downward adjustment for location.  Access/Exposure (Frontage): This refers to the exposure to the fronting thoroughfare (i.e. - capacity/traffic count), and accessibility of a property. The subject has exposure to Interstate 75, but no access to this highway. The subject property has limited access as of the date of valuation. It is our 66 assumption there would be access along Blackburn Road which would need to be developed at the cost of the property owner. This roadway is one mile from the southeast corner of the subject property. We have considered publications from the Florida Department of Transportation as well as other sources, which indicated an approximate cost for one mile of a two lane road with 5’ paved shoulders at $2,000,000. All of the comparable properties, with the exception of Sale 3, have direct access and were adjusted downward. Sale 3 had a similar need to develop a roadway for access. All of the sales were considered to be superior in terms of their overall exposure compared to the subject property.  Access: This refers to the accessibility of a property (i.e. – frontage road vs. direct frontage, existence of median cuts, etc.). The subject property has limited access as of the date of valuation. It is our assumption there would be access along Blackburn Road which would need to be developed at the cost of the property owner. This roadway is one mile from the southeast corner of the subject property. We have considered publications from the Florida Department of Transportation as well as other sources, which indicated an approximate cost for one mile of a two lane road with 5’ paved shoulders at $2,000,000. All of the comparable properties, with the exception of Sale 3, have direct access and were adjusted downward. Sale 3 had a similar need to develop a roadway for access.  Size (Site Area): Larger parcels often sell for a lower price per unit, while smaller parcels typically sell for a higher price per unit. This attribute affects the physically possible uses of the site, as well as initial acquisition costs, capital outlays, and economies of scale. The sale properties range from a low of 206.8 acres to a high of 4,034.52 acres compared to the subject’s 967 acres. Adjustments were made to each of the sales for size.  Topography, External, Environmental Issues, and existing use: This refers to the physical condition of the property, such as if the property is cleared or if there are significant changes in elevation. This also refers to any physical influences on property value. These could include negatives, such as close proximity to a garbage disposal site, or positive, such as proximity to a beach. This could also include site conditions that preclude and/or restrict development, such as the presence of jurisdictional wetlands or protected species. Adjustments were necessary for Sale 2 being superior in terms of overall wetland and topography. Sales 3 and 4 were inferior for these conditions relative to the subject.  Shape: This refers to the shape or orientation of the property which might impact the development potential of a property. For example, a property which is a long, but relatively thin, rectangle may have difficulty being developed due to setback requirements. All properties were similar in term of shape and utility.  Utilities: The presence or absence of certain utilities can severally impact the physically possible uses of a site, the second test in the analysis of Highest and Best Use (i.e. - the absence of central sewer may prevent intensive development). This can also indicate what future expenditures will be required, which can have an impact on how much a potential buyer would be willing to pay to acquire the land. All of the comparable properties required significant utility extensions similar to the subject. Those properties located along Corkscrew Road, with the exception of Sale 3, have closer availability of utilities and were adjusted downward for superior utilities.  Zoning/Future Land Use: Zoning and Future Land Use directly determine the legally permissible uses of a site, the first test in the analysis of Highest and Best Use. Since these governmental controls directly influence the highest and best use, and the eventual return on investment a buyer would expect, this characteristic can also often have a significant impact on value. A downward adjustment was applied to Sales 5 and 6 which had superior planned developments in place. 67 Analysis of Comparable Listings In addition to the closed sales, consideration was given to the following listings: Value Conclusion Due to the large size and complexity of issues associated with the subject and the date of use, many factors were considered in the development of our opinion of value. Of primary importance were the challenges with future access, and capital outlays, which would be required for access, extension of utilities, site development expenses, and the holding costs during the process. These all represent significant uncertainty and risk to a potential buyer of the property. However, the availability of potential development rights by zoning and by TDR credits represent positive characteristics of the property. Therefore, given all of the previously presented evidence, it is our opinion that the market value of the fee simple interest in the subject property as of 2 April 2020 would be in the range of $9,000 per acre to $9,500 per acre. This value range is exhibited by the comparable sales after transactional and physical adjustments and also within the range exhibited by the comparable listings. It should be recognized that the properties at the upper end of the range tend to have superior road frontage as well as entitlements for development potential. Based on this analysis, the subject property via the Sales Comparison Approach is as follows: Test of Reasonableness considering TDR credits Given the unique nature of the Transferrable Development Right (TDR) program in Collier County, we have also considered an analysis of the subject property based on sales of TDR credits. According to Collier County Government, Growth Management Department, the 384 acres located within RFMUD-Sending has a base density by right of 9 dwelling units (384 acres/40 units per acre = 9.6 dwelling units rounded to 9 dwelling units). In total, including base TDRs and bonus TDRs, the sending area could potentially have 230.4 TDR credits. The following is a breakdown of the subject lands located in the RFMUD-Sending lands along with the estimated base density allowable: Listing No. Location Offering Price Size (Acres)Size (SF)Price per Acre Listing No. 1 12400 Sabal Palm Road, Naples $750,000 100.96 4,397,818 $7,429 Listing No. 2 7827 Church Road, Felda $6,400,000 635.28 27,672,797 $10,074 Listing No. 3 4697 Oil Well Road, Naples (Under Contract) $9,250,000 654.00 28,488,240 $14,144 Listing No. 4 Lake Trafford, Immokalee $4,900,000 1001.00 43,603,560 $4,895 Site Area (Acres)Price per Acre Land Value 967 x $9,000 =$8,703,000 967 x $9,500 =$9,186,500 Indicated Value $8,900,000 68 Folio # Owner S T R # Acres** # Acres* Base Density por. 00341960003 HUSSEY JR, FRANCIS D & MARY P 32 49 27 187.5 por. 00342040003 HUSSEY JR, FRANCIS D & MARY P 32 49 27 187.5 TOTAL 375 384 9.6 = 9 DUs *Acres = This is the number of acres identified in the Executive Summary to the Board of County Commissioners for May 23, 2017 meeting (both text and map). **Acres = Acres from Collier County Property Appraiser Records The following is a breakdown of the potential TDRs which could be achieved on the subject property according to Collier County Government, Planning Department: Base TDRs Early Entry TDRs RMP TDRs* Conveyance TDRs** Total TDRs 76.8 76.8 76.8 0 230.4 *Restoration and Maintenance Plan potential bonus TDR credits **Conveyance TDRs are assumed to be 0 as there is no acceptable entity willing to assume ownership and management responsibility in Sending in this area. In addition, a total of 583 acres of the subject property is located within RFMUD-Receiving Lands. According to Collier County Government, Planning Department, the subject property has a base, allowable density of 116 units (583 acres/5 units per acre = 116.6 units rounded to 116 units). Furthermore, the property has a potential density of 1 unit per 1 acre by maximizing TDR credits. The property could achieve 583 dwelling units by acquiring TDR credits from Sending Lands. Moreover, if the property is developed as a Rural Village (RV), there would be a potential for a minimum density of 1.5 dwelling units per acre up to a maximum density of 3 dwelling units per acre. The following is a breakdown of the subject parcels located within the RFMUD-Receiving Lands as well as the estimated potential TDRs on the subject property with and without a Rural Village: Folio # Owner S T R # Acres** # Acres* Base Density 00328560002 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 260 00331320006 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 10 00330480002 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 5 00328640003 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 10 00329240004 HHH Investments 29 49 27 5 00330840008 SEAN MEADE HUSSEY TRUST 29 49 27 5 por. 00341960003 HUSSEY JR, FRANCIS D=& MARY P 32 49 27 139.5 por. 00342040003 HUSSEY JR, FRANCIS D=& MARY P 32 49 27 139.5 00329760005 HUSSEY JR, FRANCIS D=& MARY P 29 49 27 5 579 583 116.6 = 116 DUs *Acres = This is the number of acres identified in the Executive Summary to the Board of County Commissioners for May 23, 2017 meeting (both text and map) plus five acres described as FOLIO 00329760005. **Acres = Acres from Collier County Property Appraiser Records Maximum TDRs RV Minimum Density RV Medium Density RV Maximum Density 583 DUs 867 DUs 1306 DUs 1734 DUs As shown above, there are variables which could increase or decrease the potential TDR credits but, in our opinion, the most probable density would be a total of 583 dwelling units on the entire subject property or a density of 1 unit per acre of Receiving Lands. Although it is possible that a greater density could be achieved, this would require approval via a PUD (Planned Unit Development) process which would require public input and ultimately, approval from the Collier County Board of County Commission. Approval of 583 dwelling units is a more probable development option which is achievable with TDR credits. The most likely scenario would be the use of the potential TDR credits from the subject’s Sending Lands. As shown above, the Sending Lands would have a potential of 230 TDR credits broken down as 76.8 Base TDRs, 76.8 Early Entry Bonus TDRs, and 76.8 RMP (Restoration and Management Plan) Bonus TDRs. It should be noted the Base TDRs and the Early Entry Bonus TDRs would be a relatively straight forward process which would require some expense on the part of the property owner, but not extensive. The RMP Bonus TDRs would require an RMP for the subject property which may be a more costly process with no guarantee of success. Albeit, in our analysis, we are considering the 69 Sending Lands of the subject to have 230 TDR credits and will value these units assuming the potential for an RMP but no plan in place. As estimated, the Receiving Lands have a most probable development of 583 dwelling units based on a density of one unit per acre if TDR credits are acquired. By right, the Receiving Lands have 116 dwelling units (1 unit/ 5 acres) and, therefore, the required TDR credits would be estimated as follows: Potential Dwelling Units (DU) 583 Less: DU by right 116 Credits needed for development 467 A most likely development scenario and requirement of the Settlement Agreement would be a transfer/acquisition of the subject’s TDR credits from the Sending Lands of 230. Assuming these potential TDR credits are severed from the Sending Lands, the number of remaining credits needed to be acquired “off site” would be 233 and is summarized below: Credits needed for development 467 Less: Potential TDRs from Sending Lands 230 Credits to acquire for 583 DU 237 In order to estimate the value of the TDR credits in the Sending Lands, consideration was given to actual TDR sales in Collier County. The sales include both Base TDR credits and Bonus TDR credits. We have also surveyed potential TDR sellers who are listed on the “Collier County TDR Credits – Sellers List”. The Sellers interviewed all stated that although the Base Units are required to transfer with a sale price of $25,000 per credit, the market typically blends the cost of the Base and Bonus credits and sells both types of credits in a transaction. In our analysis, we are estimating a blended value of the Base and Bonus credits for the subject property. The following TDR sale transactions in Collier County were considered in the analysis: Project # of Transfer Seller Buyer # of Base Credits Considerations Paid Per Credit Totals (Base) $# of Bonus Credits Considerations Paid Per Credit Totals (Bonus) $Total # Credits Total Considerations Paid PL20120002923 Bauer Foundation SFI Naples Reserve 44.96 $25,000.00 $11,240.00 80 $1,734.50 $138,760.00 124.96 $1,500,000.00 PL20130000001 Wilton Land Co. Hacienda Lakes, LLC 209.48 $25,000.00 $5,237,000.00 209.48 $5,000.00 $1,047,400.00 418.96 $6,284,400.00 PL20150000703 **Willow Run Waterman Rockedge 30.11 $13,250.00 $398,957.50 30.11 $398,957.50 PL20150002444 H & LD Venture San Marino 31.95 $25,000.00 $798,750.00 43.9 $5,994.31 $263,150.00 75.85 $1,061,900.00 PL20150002651 **Bauer FoundationD.R. Horton 21.89 $14,995.43 $328,250.00 21.89 $328,250.00 PL20150002529 Barron Collier Pulte Homes 126.68 $15,000.00 $1,894,200.00 126.28 $1,894,200.00 PL20150000665 Ridge Property WCI 11.66 $15,000.00 $174,900.00 11.66 $174,900.00 PL20150000767 **Tom LeVangie Pulte Homes 3 $25,000.00 $75,000.00 8 $7,125.00 $57,000.00 9 $132,000.00 PL20150000768 Bob Bullard Pulte Homes 6 $25,000.00 $150,000.00 16 $7,125.00 $114,000.00 22 $264,000.00 PL20150000769 Heidi Ickes Pulte Homes 1 $25,000.00 $25,000.00 3 $7,666.67 $23,000.00 4 $48,000.00 PL20150000770 Patricia Reardon Pulte Homes 4 $25,000.00 $100,000.00 11 $7,272.73 $80,000.00 15 $180,000.00 PL20150000771 Noella Russell Pulte Homes 2 $25,000.00 $50,000.00 6 $7,666.67 $46,000.00 8 $96,000.00 PL20180000102 Resource Conserv. SD San Marino, LLC 60 $14,333.33 $860,000.00 60 $860,000.00 PL20180000880 Golden Land Ptrns. Pulte Homes 22 $25,000.00 $550,000.00 22 $2,000.00 $44,000.00 44 $594,000.00 PL20180001505 Golden Land Ptrns. Pulte Homes 1 $25,000.00 $25,000.00 1 $2,000.00 $2,000.00 2 $27,000.00 PL20180003367 Grisel Mozas Polly Avenue, LLC 2.24 $25,000.00 $56,000.00 6.72 $59,000.00 8.96 $115,000.00 PL20180003628 Resource Conserv. Pulte Homes 162.72 $14,000.00 $2,278,080.00 162.72 $2,278,080.00 TOTALS 327.63 $275,000.00 $7,077,990.00 820.16 $8,760.23 $7,808,697.50 1145.39 $16,236,687.50 70 Moreover, we have considered the Rural Fringe Mixed-Use District Restudy White Paper which states, “The Rural Fringe Coalition combining a base TDR with a bonus TDR results in a current market average price of $13,500 per TDR.” Considering these sources, we have estimated the value of a RFMU – Sending Lands credit at $15,000 and the value of the credits on the receiving lands at $16,000 per credit. In this analysis, we have applied the value of these units to our subject property in terms of the value of the potential units and the cost of the units which would be required to be purchased to achieve the density of 583 units on the subject property. The following is a summary of this analysis: 583 units (Receiving) @ $16,000/unit = $9,328,000 -Cost of TDR units needed (237 x $15,000/unit) = -$3,555,000 Value of Receiving Lands and Sending Land TDRs = $5,773,000 In addition to the value of the TDR credits in the Sending Lands and the value of the Receiving Lands, we must also consider the value of the remainder or “severed” land of the Sending Lands. This property will have 384 acres which have some rights for agricultural (as existent at date of transfer of TDR), cattle grazing, passive recreation and low density residential (1 unit/40 acres). A buyer of the subject property would consider the value of this severed property. We have estimated the value of this component at $5,000 per acre based on the following sales of agricultural/low density properties (complete sales data can be found in the addenda): Comparable No. 1 Comparable No. 2 Comparable No. 3 Comparable No. 4 Comparable No. 5 Transaction Data: Date of Sale:Mar-17 Sep-18 Nov-18 Oct-18 Mar-19 Sale/Listing Price:$1,500,000 $260,000 $600,000 $315,000 $900,000 Sale/Listing Price (Adjusted):$1,500,000 $260,000 $600,000 $315,000 $900,000 Physical Data: Street Address:3440 SR 82 11641 Busbee Lane Bronson Road 1254 Tuscarora Road 4022 Ft Center Avenue County:Collier Lee Hendry Hendry Hendry Gross Sq. Ft. (Site):8,733,780 1,742,400 5,262,919 4,356,000 11,456,280 Gross Acres (Site):200.50 40.00 120.82 100.00 263.00 Shape:Rectangular Square Rectangular Rectangular nearly rectangular Topography:farm land uncleared partially clear pasture pasture/groves Entitlements:None None None None None Utilities:Rural Rural Rural Rural Rural Use Data: Zoning:A-MHO-RLSAO AG-2 OUA (1du/20 ac)OUA (1du/20 ac)A-2 Land Use:Agriculture/Rural Mixed Use District Wetlands/DR/GR Agricultural/Open & Transition Conservation Agricuture Highest and Best Use:Agriculture Agriculture/Recreation Agriculture Agricultural/Recreation Agricuture Sales Price Analysis: Unadjusted Price per Acre $7,481 $6,500 $4,966 $3,150 $3,422 Transactional Adjustments: Financing Terms:0.0%0.0%0.0%0.0%0.0% (Per Acre):$7,481 $6,500 $4,966 $3,150 $3,422 Conditions of Sale:0.0%0.0%0.0%0.0%0.0% (Per Acre):$7,481 $6,500 $4,966 $3,150 $3,422 Expenditures After Purchase:0.0%0.0%0.0%0.0%0.0% (Per Acre):$7,481 $6,500 $4,966 $3,150 $3,422 Market Conditions (time):9.3%4.8%4.3%4.5%3.3% Market Adjusted Price per Acre $8,173 $6,809 $5,177 $3,292 $3,533 Physical Adjustments: Location:10.00%5.00%15.00%15.00%15.00% Access/Exposure (Frontage):-15.00%0.00%0.00%0.00%-10.00% Size (Site Area):-5.00%-15.00%-10.00%-10.00%0.00% Topography:-10.00%0.00%0.00%0.00%-5.00% External, Environ, Use:0.00%0.00%0.00%0.00%0.00% Shape:0.00%0.00%0.00%0.00%0.00% Utilities:0.00%0.00%0.00%0.00%0.00% Zoning/Land Use:0.00%0.00%0.00%0.00%0.00% Net Adjustment:-20.00% -10.00% 5.00% 5.00% 0.00% ADJUSTED PRICE $6,539 $6,128 $5,436 $3,456 $3,533 71 As shown above, prior to adjustments, these sales ranged from a low of $3,150 per acre to a high of $7,481 per acre. The sales considered for the “Sending” lands of the subject as though severed were all sales with a highest and best use for agricultural purposes and/or were being utilized for farming purposes. The subject land, as though severed of TDR credits, would most likely be used for agricultural (cattle grazing), passive recreation, or low density residential purposes. These sales, although somewhat different geographically, are good indicators of value for these type properties. After adjustments, the agricultural/low density sales range from $3,456 per acre to $6,539 per acre. These sales, except for Sale 1, are all in inferior areas compared to the subject property but have characteristics such as agricultural or low density future development that make these sale good indicators of value for the subject, as though severed of TDR credits. After considering these sales, we estimate the market value of the 384 acres as though severed of TDR credits to have a value of $5,000 per acre which can be shown as follows: Site Area (Acres) Price per Acre Land Value 384 x $5,000 = $1,920,000 After considering the value of the severed/remainder property, we estimate the entire value as follows: Value of Receiving Lands and Sending Land TDRs = $5,773,000 Plus: Value of severed land in RFMU – Sending Lands 384 acres @ $5,000/acre = $1,920,000 TOTAL INDICATED VALUE = $7,693,000 72 SEC. VII: RECONCILIATION OF OPINIONS OF VALUE Sales Comparison Approach to Value $8,900,000 Value considering TDRs $7,693,000 In the analysis, we considered a Sales Comparison Approach utilizing sales of large properties in south Lee County and eastern Collier County. After appropriate adjustments, we estimated a market value of $8,900,000. Furthermore, we considered an analysis breaking down each component of the subject property by potential development rights. We estimated a value utilizing TDR sales and concluded a value of $7,693,000. The subject property is rather unique given its RFMU – Receiving Lands and RFMU – Sending Lands zoning, as well as the limitations it has with regards to access and zoning. Both methods considered are believed to be reasonable analyses of the subject property. It is our opinion that each method should be considered with the heaviest consideration given to the per acre analysis. This type of property would most likely be acquired for a speculative hold with future development potential. Given the potential changes which could occur with the Rural Fringe Mixed Use District Restudy, there is uncertainty as to how this will impact properties in this area. The TDR program in Collier County has only had limited activity as evidenced by the number of sales which have occurred since inception. Given the lack of overall activity with this program, we have given the per acre analysis the most weight. Based upon the results of the analyses and data contained in the report, including any Extraordinary Assumptions and Hypothetical Conditions outlined in the Addenda, and our experience in the real estate appraisal profession, it is our opinion that the “as is,” fee simple market value of the subject property, as of 2 April 2020, is EIGHT MILLION NINE HUNDRED THOUSAND DOLLARS - $8,900,000 This value is contingent upon the certification and the assumptions and conditions of this appraisal, if any. CONTRACTS, LISTINGS & SALES HISTORY According to public records of Collier County, only one of the properties indicates a sale. The property described as Folio # 00329240004 was sold in August 2019 for $67,000 which represented a price of $13,500 per acre. This property is currently owned by HHH Investments, LTD. The listing agent stated this was a non-arms length transaction. The entire property is currently listed for sale with LSI with a list price of $11,500,000. The property has been listed at this price since February 2020. The property was previously under contract starting in February 2019 at an undisclosed price. However, this contract fell through due to the lengthy timeframe necessary to development a property such as the subject, according to the listing broker. In our opinion, the current list price is above market indicators of value for the subject property. 73 ESTIMATION OF MARKETING TIME Marketing time is defined by the USPAP Advisory Opinion as follows: 1. The time it takes an interest in real property to sell on the market sub-sequent to the date of an appraisal. 2. Reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal; the anticipated time required to expose the property to a pool of prospective purchasers and to allow appropriate time for negotiation, the exercise of due diligence, and the consummation of a sale at a price supportable by concurrent market conditions. 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. 6, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions" address the determination of reasonable exposure and marketing time.) Marketing time is further discussed in the Advisory Opinion referenced above as follows: “…Marketing time occurs after the effective date of the market value opinion and the marketing time opinion is related to, yet apart from, the appraisal process. Therefore, it is appropriate for the section of the appraisal report that discusses marketing time and its implications to appear toward the end of the report after the market value conclusion. The request to provide a reasonable marketing time opinion exceeds the normal information required for the appraisal process and should be treated separately from that process. It is also appropriate for the appraiser to discuss the impact of price/value relationships on marketing time and to contrast different potential prices and their associated marketing times with an appraiser’s market value opinion for the subject property... …Clients concerned with marketing real or personal properties who obtain a market value appraisal as part of their decision-making process should be aware that it may be inappropriate to assume that the value remains stable during the marketing period. Therefore, it is technically incorrect for the user of an appraisal to take a current value opinion, carry it forward to the end of a concluded marketing period, and then discount back to the present…” Based upon the analysis and conclusions developed in this appraisal, the marketing time for the subject property is estimated to be 12 to 24 months. ESTIMATION OF EXPOSURE TIME Inherent in an opinion of market value is the development of an estimate of exposure time for the subject property. Exposure time is defined by the Uniform Standards of Professional Appraisal Practice (USPAP), 2020/2021 Edition, as follows: (The) estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Based upon the analysis and conclusions developed in this appraisal, the exposure time for the subject property is estimated to be 12 to 24 months. 74 SEC. VIII: CERTIFICATION We certify that, to the best of our knowledge and belief:  The statements of fact contained in this report are true and correct.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.  We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.  We have performed services as an appraiser regarding the property that is the subject of this report within the five-year period immediately preceding acceptance of this assignment.  We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.  Our engagement in this assignment was not contingent upon developing or reporting predetermined results.  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.  Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with Uniform Standards of Professional Appraisal Practice.  We have not made a personal inspection of the subject property for this report. Gerald A. Hendry, MAI, CCIM conducted a previous onsite inspection of the subject property on 16 June 2017. All current inspections were made via aerial photos and GIS portals.  No one provided significant real property appraisal assistance to the person(s) signing this certification.  The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.  The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the State of Florida relating to review by its duly authorized representatives. This report also conforms to the requirements of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).  We are currently licensed to conduct appraisal activities and have completed the continuing education requirements set forth with the State of Florida. 75  Although other appraisers may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy are maintained at all times with regard to this assignment without conflict of interest. As of the date of this report, I have completed the continuing education program of the Appraisal Institute. Gerald A. Hendry, MAI, CCIM State-Certified General Real Estate Appraiser, RZ 2245 76 SEC. IX: ADDENDA LAND SALES FOR RECEIVING LANDS (SEVERED) 77 COMPARABLE LAND SALE 1 2964 DATE OF SALE: March 15, 2017 ADDRESS: 3440 State Road 82 SALE PRICE: $1,500,000 STRAP #: 000634400052 & 0063520006 SALE PRICE (ADJUSTED): $1,500,000 SALE CONDITIONS: Arm's Length RECORDING: 5374/645 UTILITIES: Telephone, Electric, Well, Irrigation GRANTOR: SR 82 Land Holdings, LLC ZONING: A-MHO-RLSAO (1 du/5 ac) GRANTEE: CCW82 LLC LAND USE: Agricultural/Rural-Mixed Use District FINANCING: Cash SALE HISTORY: 07/2013 - $900,000 ($4,489/ac; 1.5%/mo) TOPOGRAPHY: Cleared/Grove ACCESS: Direct (Open Median) VERIFICATION: Grantee: Constance Walker HIGHEST AND BEST USE: Agricultural/Rural Residential SITE AREA: 8,733,780 Square Feet 200.500 Acres ALLOWABLE UNITS: 40 UNIT OF VALUE: $0.17 Per SF $7,481 per AC $37,500 Per Unit COMMENTS: The property is located at the southwest corner of State Road 82 and Edwards Grove Road in Immokalee. This is a former citrus grove, with much of the property now being used for row crops. 78 COMPARABLE LAND SALE 2 3455 DATE OF SALE: September 12, 2018 ADDRESS: 11641 Busbee Lane SALE PRICE: $260,000 STRAP #: 01-43-25-00-00002.0000 SALE PRICE (ADJUSTED): $260,000 SALE CONDITIONS: Arm's Length RECORDING: 2018000219837 UTILITIES: Electric and telephone GRANTOR: Karen Lynn Coleman ZONING: AG-2 GRANTEE: Pri-Car III, LLC LAND USE: Wetlands-77.58%, DR/GR-22.42% FINANCING: Cash to seller SALE HISTORY: None in previous three years TOPOGRAPHY: Wooded, Wetlands ACCESS: Direct (Dirt road) VERIFICATION: Grantee: Rick Pritchett HIGHEST AND BEST USE: Residential SITE AREA: 1,742,400 Square Feet 40.000 Acres ALLOWABLE UNITS: 2 UNIT OF VALUE: $0.15 Per SF $6,500 per AC $130,000 Per Unit COMMENTS: The property is located on the north side of Busbee Lane, west of SR 31 and just south of the Charlotte County line in North Fort Myers. The property has legal access to SR 31 via Busbee Lane. Approximately 77.58% of the site is wetlands. The property features a 1926-built 2/1 house and 1970-built 2/2 mobile home. 79 COMPARABLE LAND SALE 3 3717 DATE OF SALE: November 26, 2018 ADDRESS: Bronson Road SALE PRICE: $600,000 STRAP #: A14-42-31-A01-001A-0000 + 2 additional parcels SALE PRICE (ADJUSTED): $600,000 SALE CONDITIONS: Arm's Length RECORDING: 346/965 UTILITIES: Electric and telephone GRANTOR: Stanley T Bronson ZONING: OUA (1 du/20 ac) GRANTEE: Ridgdill Family, LLC LAND USE: Agricultural/Open & Transition FINANCING: Conventional SALE HISTORY: None in previous five years TOPOGRAPHY: Pasture ACCESS: Direct (Open Median) VERIFICATION: Grantor: Stanley Bronson HIGHEST AND BEST USE: Agricultural SITE AREA: 5,262,919 Square Feet 120.820 Acres ALLOWABLE UNITS: 6 UNIT OF VALUE: $0.11 Per SF $4,966 per AC $100,000 Per Unit COMMENTS: The property is located on the east side of Bronson Road, approximately two miles east of State Road 78 in Moore Haven. The sale is comprised of three agricultural parcels of pasture and cropland with a total of 120.82 acres. The sale includes an easement road from State Road 78 which runs south and connects to the property via Little H Street which runs east and west. The property is fenced. 80 COMPARABLE LAND SALE 4 3766 DATE OF SALE: October 03, 2018 ADDRESS: 1254 Tuscarora Road SALE PRICE: $315,000 STRAP #: A19-42-28-A00-001B-0000 SALE PRICE (ADJUSTED): $315,000 SALE CONDITIONS: Arm's Length RECORDING: 346/173 UTILITIES: Electric and telephone GRANTOR: Brian K Quinn ZONING: OUA GRANTEE: Edgar Tarrau LAND USE: Conservation FINANCING: Seller financing for $300,000 SALE HISTORY: None in previous five years TOPOGRAPHY: Pasture ACCESS: Direct VERIFICATION: Third party HIGHEST AND BEST USE: Rural Residential SITE AREA: 4,356,000 Square Feet 100.000 Acres UNIT OF VALUE: $0.07 Per SF $3,150 per AC COMMENTS: The property is located at the end of Tuscarora Road in LaBelle, Florida. The property is improved with a single family home built in 2008 containing 1,600 square feet of living area. The property is located on Jack's Branch, a tributary that runs from Fisheating Creek to the Caloosahatchee River. 81 COMPARABLE LAND SALE 5 3581 DATE OF SALE: March 25, 2019 ADDRESS: 4022 Ft Center Avenue SALE PRICE: $900,000 STRAP #: 1-28-43-02-010-0000-001.0 + 2 additional parcels SALE PRICE (ADJUSTED): $900,000 SALE CONDITIONS: Arm's Length RECORDING: 201926003740 UTILITIES: None GRANTOR: FCB REO II, LLC ZONING: A-2 GRANTEE: Justin Hood and Jennifer Hood LAND USE: Agriculture FINANCING: Conventional financing for $810,000 with First Bank SALE HISTORY: None in previous five years TOPOGRAPHY: Groves ACCESS: Direct VERIFICATION: Third party HIGHEST AND BEST USE: Agricultural SITE AREA: 11,456,280 Square Feet 263.000 Acres UNIT OF VALUE: $0.08 Per SF $3,422 per AC COMMENTS: The property is located on the north side of Ft Center Avenue, north of North River Road in LaBelle. The three parcels associated with the sale include: 1-28-43-02-010-0000-001.0 1-28-43-03-010-000K-024.0 1-28-43-03-A00-0001.0000 82 SETTLEMENT AGREEMENT 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 QUALIFICATIONS OF GERALD A. HENDRY, MAI, CCIM EDUCATIONAL BACKGROUND AND TRAINING: Master of Arts in Business Administration, with a major in Real Estate and Urban Analysis, University of Florida, 1995, Gainesville, Florida. Bachelor of Science in Business Administration, with a major in Finance, 1991, University of Florida, Gainesville, Florida. Principles and Practices of Real Estate, Brokers Course, Florida Real Estate Academy, 1995, Fort Myers, Florida. Case Studies in Valuation and Report Writing, University of Florida, 1994. Real Estate Market Analysis, University of Florida, 1993. Preview of Urban Planning and Regional Planning, University of Florida, 1993. Seminar in Real Estate Valuation, University of Florida, 1994. Seminar in Real Estate Financial Analysis, University of Florida, 1995. Land Use Economics, University of Florida, 1995. Principles and Practices of Real Estate, Salesman Course, Florida Real Estate Academy, 1990, Fort Myers, Florida. Demonstration Report Writing, seminar sponsored by the Appraisal Institute, Dallas, Texas, May 1999. Comprehensive Appraisal Workshop, Dallas, Texas, August 2000. "Appraising and Analysis of Proposed Subdivisions and Condominiums", seminar sponsored by The Appraisal Institute, Boca Raton, Florida, August 2002. CCIM CI 101 - Financial Analysis for Commercial Investment Real Estate, CCIM Institute, Naples, Florida, October 2002. The Valuation of Wetlands, seminar sponsored by The Appraisal Institute, Fort Myers, Florida, September 2004. Case Studies in Commercial Highest and Best Use, Appraisal Institute, September 2005. CCIM CI 102 - Market Analysis for Commercial Investment Real Estate, May 2006. CCIM CI 103 - User Decision Analysis for Commercial Real Estate, September 2006. CCIM CI 104 - Investment Analysis for Commercial Real Estate, August 2006. 104 Appraisal of Local Retail Properties, Appraisal Institute, May 2009. Subdivision Valuation, Appraisal Institute, September 2009. Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets, Appraisal Institute, Bradenton, Florida March 2012 EXPERIENCE: Currently an owner/partner with Maxwell, Hendry & Simmons, LLC, Fort Myers, Florida. Owner/partner with Maxwell & Hendry Valuation Services, Inc., Fort Myers, Florida, 2004-2013. Associate Appraiser with W. Michael Maxwell & Associates, Inc., Fort Myers, Florida, 1995-2003. Commercial Credit Analyst with Barnett Bank of Lee County/First Florida Bank, Fort Myers, Florida, 1991-1993. PROFESSIONAL AFFILIATIONS: Appraisal Institute - MAI CCIM Institute - CCIM State-Certified General Real Estate Appraiser, RZ 2245 State-Licensed Real Estate Broker, BK #0567939 Southwest Florida CCIM District – Board of Directors 2014 – 2018, 2017 President Real Estate Investment Society - Board of Governors 2002 - 2008, President 2007 Appraisal Institute - West Coast Florida Chapter Board of Directors 2003 - 2008 Appraisal Institute - West Coast Florida Chapter President 2008 Commercial Investment Professionals (CIP) Member OTHER: Qualified as an expert witness in the 20th Judicial Circuit Court of Florida and United States Bankruptcy Court Middle District of Florida. Special Magistrate - Lee County Value Adjustment Board 2012-2014 Guest Lecturer at Florida Gulf Coast University, College of Business Administration 2007-2016 105 RE-CERTIFICATION: As of the date of this report, Gerald A. Hendry MAI, CCIM has completed the requirements under the continuing education program of the Appraisal Institute. 106 ASSUMPTIONS An assumption is defined by The Appraisal Institute in The Dictionary of Real Estate Appraisal, Sixth Edition as follows: “That which is taken to be true.” Please review the following assumptions, which we have “taken to be true” about this appraisal. This appraisal is to be used in whole and not in part. This appraisal report has been prepared at a specified point in time as indicated by the date of valuation. Therefore, this report can neither be used prior to, or subsequent to, the effective appraisal date. Market values and conditions change significantly with the passage of time. This report cannot be viewed subsequent to the appraisal date and then reliance placed on values, opinions, and analysis made by the appraiser or other consultants in the report. The forecasts or projections included in this report are used to assist in the valuation process and are based on current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are therefore subject to changes in future conditions, which cannot be accurately predicted by the appraiser and could affect the future income and/or value forecasts. No part of this report shall be used in conjunction with any other appraisal. The appraiser(s) herein, by reason of this report, is not required to give testimony or attendance in court or any governmental hearing with reference to the property appraised, unless arranged previously therefore. The consideration for the preparation of this appraisal report is the payment by the client of all charges due the appraiser in connection therewith. Any responsibility of the appraiser for any part of the report is conditioned upon full payment. Neither all, nor any, part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales or other media without the written consent and approval of the author, particularly as to the valuation conclusion, the identity of the appraiser or firm with which he is connected, or any reference to any professional organization of which the appraiser may be a member. The property has been appraised as if free and clear, unencumbered by mortgages, liens, delinquent taxes, assessments, special or unusual deed conditions or restrictions, but subject to zoning regulations. An investigation, but no record search, has been made. All comparable data utilized are confirmed by Costar Group, Inc., the Local Multiple Listing Service (MLS), parties related to the sale, and/or public records. The data used in compiling this report was secured from sources considered reliable and authentic and, so far as possible, was verified. However, no responsibility is assumed for its accuracy or correctness. Unless otherwise noted, no survey or plans were requested or provided and information regarding the subject property has been gathered from the appropriate public records. It is assumed that the legal descriptions, site sizes and boundaries utilized are correct, that the improvements (if applicable) are entirely and correctly located on the property described, and that there are no encroachments or overlapping boundaries. Unless stated otherwise, legal access to the property is assumed. Marketable title, but not responsibility as to legal matters, is assumed. This appraisal is subject to a current survey and title search. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report and it is further assumed that all applicable zoning, land use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined and considered in the appraisal report. This appraisal is subject to all growth management ordinances (i.e. concurrency) both local and state. The appraiser has relied upon representations made by the developer, client or authorities considered to be knowledgeable in this regard. A determination was not made by the appraiser as to the development potential for the property, unless otherwise stated. 107 Unless otherwise noted, we were not provided with a title search, and we have assumed that the subject property has a unified title, or in absentia, that the right of entry is barred for oil, gas, and mineral rights holders. We have further assumed that no off-site subsurface exploration or extraction activities are occurring, or have occurred, which would have an impact on the subsurface elements of the property, or which would adversely affect the value of the property. No consideration was given within this appraisal as to the time or expense (if any) which would be required to determine or obtain unified title or bar the right of entry. Should this assumption regarding unified title later prove to be false, this could alter the opinions and conclusions contained herein. The Americans with Disabilities Act (ADA) became effective on February 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine if it is in conformity with the various detailed requirements of the ADA. As the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA in estimating the value of the property has not been considered. EXTRAORDINARY ASSUMPTIONS / HYPOTHETICAL CONDITIONS Please see the Scope of Work for further details.