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Agenda 07/13/2021 Item #16A17 (Purchase Agreement - Auto Ranch Road, Parcel 112FEE)07/13/2021 EXECUTIVE SUMMARY Recommendation to approve a Purchase and Sale Agreement to acquire a fee interest in unimproved land on Auto Ranch Road (Parcel 112FEE) needed for the stormwater management improvements as part of Lake Park Flow Way Project No. 60246 in the amount of $144,200, and to authorize the necessary budget amendments. OBJECTIVE: To acquire land along Auto Ranch Road (Parcel 112FEE) for the construction of flow ways to improve stormwater drainage, as part of Lake Park Flow Way Project No. 60246. CONSIDERATIONS: Collier County is seeking to improve flood protection and water quality treatment of stormwater flows from residential and agricultural areas north of Auto Ranch Road, prior to discharging into the Outstanding Florida Waters Rookery Bay National Estuarine Research Reserve. As part of this effort, the County is seeking to acquire a 4.8 acre parcel of depressional cypress swamp land (Parcel 112FEE) in the vicinity of Auto Ranch Road. The attached Appraisal Report prepared by Maxwell Hendry Simmons dated April 29, 2021 estimates the market value of Parcel 112FEE to be $130,000. The owner of Parcel 112FEE, Anthony Iannotta, has executed a Purchase and Sale Agreement to sell his property to the County for a negotiated purchase price of $144,000. If this property is not acquired by negotiation, the County may face significant risk in pursuing condemnation, including exposure to exorbitant damages claims and liability for payment of attorney and expert witness fees and costs. Accordingly, staff recommends that the Board of County Commissioners (the “Board”) approve the Purchase and Sale Agreement because a better result is not expected if the property is condemned. FISCAL IMPACT: A budget amendment in the amount of $144,200 is required to transfer funds within the Stormwater Bond Fund (327) from Reserves to Project No. 60246 to cover the acquisition cost of $144,000 and miscellaneous closing and recording costs of $200. Source of funding is stormwater bonds. GROWTH MANAGEMENT IMPACT: This Project is in accordance with the goals, objectives, and policies of all applicable sections of the Stormwater Management and the Conservation and Coastal Management elements of the Growth Management Plan. LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires a majority vote for Board approval. - JAB RECOMMENDATION: . Approve the attached Purchase and Sale Agreement and authorize the Chairperson to execute same on behalf of the Board; . Accept the conveyance of Parcel 112FEE, and authorize the County Manager or his designee to record the conveyance instrument in the public records of Collier County, Florida; . Authorize the payment of all costs and expenses that Collier County is required to pay under the terms of the Purchase and Sale Agreement to close the transaction; . Authorize the County Manager or his designee to take the necessary measures to ensure the County’s performance in accordance with the terms and conditions of the Purchase and Sale Agreement; and . Authorize any and all budget amendments that may be required to carry out the collective will of the Board. Prepared By: Patricia Braxton, Property Acquisition Specialist, Right -of-Way Acquisition, Transportation Engineering Division. 16.A.17 Packet Pg. 676 07/13/2021 ATTACHMENT(S) 1. Purchase and Sale Agreement (112FEE) (PDF) 2. Aerial Exhibit (112FEE) (PDF) 3. [Linked] Appraisal Report (112 FEE) (PDF) 16.A.17 Packet Pg. 677 07/13/2021 COLLIER COUNTY Board of County Commissioners Item Number: 16.A.17 Doc ID: 16189 Item Summary: Recommendation to approve a Purchase and Sale Agreement to acquire a fee interest in unimproved land on Auto Ranch Road (Parcel 112FEE) needed for the stormwater management improvements as part of Lake Park Flow Way Project No. 60246 in the amount of $144,200, and to authorize the necessary budget amendments. Meeting Date: 07/13/2021 Prepared by: Title: – Transportation Engineering Name: Patricia Braxton 06/10/2021 11:50 AM Submitted by: Title: Division Director - Transportation Eng – Transportation Engineering Name: Jay Ahmad 06/10/2021 11:50 AM Approved By: Review: Transportation Engineering Robert Bosch Additional Reviewer Completed 06/10/2021 1:11 PM Transportation Engineering Anthony Khawaja Additional Reviewer Completed 06/11/2021 2:26 PM Capital Project Planning, Impact Fees, and Program Management Danette Kinaszczuk Additional Reviewer Completed 06/11/2021 3:18 PM Growth Management Department Lisa Taylor Additional Reviewer Completed 06/14/2021 7:24 AM Growth Management Department Christine Arnold Growth Management Department Completed 06/14/2021 8:35 AM Capital Project Planning, Impact Fees, and Program Management Richard Orth Additional Reviewer Completed 06/15/2021 8:44 AM Growth Management Operations Support Christopher Johnson Additional Reviewer Completed 06/15/2021 11:56 AM Capital Project Planning, Impact Fees, and Program Management Gerald Kurtz Additional Reviewer Completed 06/15/2021 12:30 PM Growth Management Department Gene Shue Additional Reviewer Completed 06/18/2021 9:43 AM Growth Management Department Robert Bosch Growth Management Skipped 06/10/2021 1:00 PM Growth Management Department Trinity Scott Transportation Completed 06/18/2021 10:44 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 06/21/2021 11:40 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 06/21/2021 2:40 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/23/2021 2:25 PM Office of Management and Budget Susan Usher Additional Reviewer Completed 07/01/2021 2:50 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 07/04/2021 5:00 PM 16.A.17 Packet Pg. 678 07/13/2021 Board of County Commissioners Geoffrey Willig Meeting Pending 07/13/2021 9:00 AM 16.A.17 Packet Pg. 679 16.A.17.a Packet Pg. 680 Attachment: Purchase and Sale Agreement (112FEE) (16189 : Lake Park Flow Way, purchase of parcel 112FEE) 16.A.17.a Packet Pg. 681 Attachment: Purchase and Sale Agreement (112FEE) (16189 : Lake Park Flow Way, purchase of parcel 112FEE) 16.A.17.a Packet Pg. 682 Attachment: Purchase and Sale Agreement (112FEE) (16189 : Lake Park Flow Way, purchase of parcel 112FEE) 16.A.17.a Packet Pg. 683 Attachment: Purchase and Sale Agreement (112FEE) (16189 : Lake Park Flow Way, purchase of parcel 112FEE) 16.A.17.a Packet Pg. 684 Attachment: Purchase and Sale Agreement (112FEE) (16189 : Lake Park Flow Way, purchase of parcel 112FEE) 16.A.17.a Packet Pg. 685 Attachment: Purchase and Sale Agreement (112FEE) (16189 : Lake Park Flow Way, purchase of parcel 112FEE) 16.A.17.a Packet Pg. 686 Attachment: Purchase and Sale Agreement (112FEE) (16189 : Lake Park Flow Way, purchase of parcel 112FEE) 16.A.17.bPacket Pg. 687Attachment: Aerial Exhibit (112FEE) (16189 : Lake Park Flow Way, purchase of parcel 112FEE) Appraisal Report Vacant Land Folio # 00769000008 Parcel 112 – Owned by Anthony J. Iannotta 600 Auto Ranch Road Naples, Collier County, Florida 34114 Date of Valuation: 13 April 2021 Date of Report: 29 April 2021 PO #: 4500209832 File Name: 21036211 – Collier County – Lake Park Flow Way - Iannotta Prepared For Collier County Board of County Commissioners Growth Management Department/Stormwater Management 2885 Horseshoe Drive South Naples, Florida 34104 29 April 2021 Collier County Board of County Commissioners Growth Management Department/Stormwater Management 2885 Horseshoe Drive South Naples, Florida 34104 Attention: Mr. Harry Henderson, SRA, Review Appraiser Re: Appraisal of a 4.80± acre parcel (Parcel 112) located at 600 Auto Ranch Road, Naples, Collier County, Florida Dear Mr. Henderson: 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 the 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 for a possible acquisition of the subject property. The intended user of this appraisal is Collier County Board of County Commissioners. The subject property was inspected on 13 April 2021 by Andrew D. Anderson, MBA. Gerald A. Hendry, MAI, CCIM performed a subsequent inspection. 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 13 April 2021, is ONE HUNDRED THIRTY THOUSAND DOLLARS - $130,000 Respectfully submitted, Andrew D. Anderson, MBA State-Certified General Real Estate Appraiser RZ 3175 Gerald A. Hendry, MAI, CCIM State-Certified General Real Estate Appraiser RZ 2245 TABLE OF CONTENTS SEC. I: INTRODUCTION ............................................................................................................................................. 1  SEC. II: SCOPE OF WORK ......................................................................................................................................... 2  EXTENT OF PROPERTY IDENTIFICATION ............................................................................................................................. 2  EXTENT OF INSPECTION ................................................................................................................................................. 2  TYPE AND EXTENT OF DATA RESEARCH ............................................................................................................................ 2  TYPE AND EXTENT OF ANALYSIS ...................................................................................................................................... 2  COMPETENCY PROVISION ............................................................................................................................................... 4  ASSUMPTIONS .............................................................................................................................................................. 4  EXTRAORDINARY ASSUMPTIONS ...................................................................................................................................... 4  HYPOTHETICAL CONDITIONS ........................................................................................................................................... 4  SEC. III: MARKET AREA ANALYSIS ............................................................................................................................ 5  SOUTHWEST FLORIDA / COLLIER COUNTY DATA ................................................................................................................ 5  CONCLUSION / LIFE CYCLE STAGE .................................................................................................................................. 9  SEC. IV: PROPERTY DESCRIPTION ......................................................................................................................... 10  LOCATION MAP ........................................................................................................................................................... 10  AERIAL MAPS ............................................................................................................................................................. 11  LEGAL DESCRIPTION ................................................................................................................................................... 13  FLOOD MAP ............................................................................................................................................................... 14  PROPERTY PHOTOGRAPHS ........................................................................................................................................... 15  SITE CHARACTERISTICS................................................................................................................................................ 17  SEC. V: HIGHEST & BEST USE ANALYSIS ............................................................................................................... 21  PRESENT USE ............................................................................................................................................................ 21  HIGHEST AND BEST USE AS VACANT ............................................................................................................................. 21  SEC. VI: VALUATION OF SUBJECT PROPERTY ........................................................................................................ 24  THE APPRAISAL PROCESS ............................................................................................................................................ 24  THE SALES COMPARISON APPROACH TO VALUE .............................................................................................................. 25  SEC. VII: RECONCILIATION OF OPINIONS OF VALUE .............................................................................................. 36  CONTRACTS, LISTINGS & SALES HISTORY ...................................................................................................................... 36  ESTIMATION OF MARKETING TIME ................................................................................................................................. 37  ESTIMATION OF EXPOSURE TIME ................................................................................................................................... 37  SEC. VIII: CERTIFICATION ....................................................................................................................................... 38  SEC. IX: ADDENDA .................................................................................................................................................. 40  PURCHASE ORDER ...................................................................................................................................................... 40  QUALIFICATIONS OF ANDREW D. ANDERSON, MBA ......................................................................................................... 41  QUALIFICATIONS OF GERALD A. HENDRY, MAI, CCIM ..................................................................................................... 42  ASSUMPTIONS ............................................................................................................................................................ 45  EXTRAORDINARY ASSUMPTIONS / HYPOTHETICAL CONDITIONS ......................................................................................... 46  1 SEC. I: INTRODUCTION OWNER OF RECORD: Anthony J. Iannotta ADDRESS: 600 Auto Ranch Road, Naples, Florida FOLIO #: 00769000008 LEGAL DESCRIPTION: Lengthy. Please see Property Description Section. SITE AREA: 4.80± acres/209,088 square feet according to Collier County public records IMPROVEMENTS: N/A ZONING/ FUTURE LAND USE A (Rural Agricultural District) / Agricultural (AG) HIGHEST & BEST USE AS VACANT: Agricultural or Rural Residential EFFECTIVE DATE OF THE APPRAISAL: 13 April 2021 DATE OF THE REPORT: 29 April 2021 INTENDED USERS: Collier County Board of County Commissioners INTENDED USE: The intended use of this appraisal is for a possible acquisition of the subject property. VALUE INDICATION: $130,000 2 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. EXTENT OF INSPECTION For the purposes of this appraisal, Andrew D. Anderson, MBA conducted an inspection of the subject property on 13 April 2021. Gerald A. Hendry, MAI, CCIM subsequently conducted an inspection of the property. 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. 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. 3 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. 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. 4 COMPETENCY PROVISION This 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. 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 Professional 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.  We were not provided with a wetland delineation regarding the subject property. As such, we have assumed that the subject is free of wetlands that would adversely impact future development. HYPOTHETICAL CONDITIONS Hypothetical Condition is defined by the Uniform Standards of Professional 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. 5 SEC. III: MARKET AREA ANALYSIS SOUTHWEST FLORIDA / COLLIER COUNTY DATA 6 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). 7 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. 2020 (1 APRIL EST.) 2010 2000 COUNTY POPULATION 387,450 322,653 257,926 1. Bureau of Economic Research at the University of Florida 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. 2020 2019 2018 2017 UNEMPLOYMENT RATE1 5.1% (October) 3.1% (Annual) 3.4% (Annual) 4.1% (Annual) AVERAGE WEEKLY WAGE1 $1,018 (2Q) $1,028 (4Q) $1,002 (4Q) $966 (4Q) SINGLE-FAMILY MEDIAN PRICE2 $510,000 (November) $435,000 (Annual) $446,000 (Annual) $434,900 (Annual) RETAIL VACANCY RATE3 6.1% (4Q) 5.1% (4Q) 2.2% (4Q) 3.3% (4Q) OFFICE VACANCY RATE3 10.5% (4Q) 8.6% (4Q) 6.8% (4Q) 6.1% (4Q) INDUSTRIAL VACANCY RATE3 2.4% (4Q) 2.1% (4Q) 1.9% (4Q) 0.8% (4Q) 1. Bureau of Labor Statistics - Quarterly Employment and Wages 2. Naples Area Board of Realtors 3. Costar 8 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. 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. 9 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. 10 SEC. IV: PROPERTY DESCRIPTION LOCATION MAP 11 AERIAL MAPS 12 13 LEGAL DESCRIPTION 14 FLOOD MAP 15 PROPERTY PHOTOGRAPHS NORTHERLY VIEW OF SUBJECT’S EASTERN EDGE ALONG AUTO RANCH ROAD EASTERLY VIEW ACROSS SUBJECT 16 NORTHEASTERLY VIEW ACROSS SUBJECT SOUTHEASTERLY VIEW ACROSS SUBJECT 17 SITE CHARACTERISTICS ADDRESS: 600 Auto Ranch Road, Naples, Florida 34114 FOLIO #: 00769000008 LOCATION/ACCESS/ EXPOSURE: The subject property is located on the east side of Auto Ranch Road approximately 2,860 feet south of Tamiami Trail East (U.S. 41) in unincorporated Collier County. Auto Ranch Road, in front of the subject property, is a two lane, asphalt paved, local roadway maintained by Collier County. Auto Ranch Road is accessed via Tamiami Trail East (U.S. 41) which is a two lane, state-maintained, arterial roadway that had a 2019 ADT count of 4,600 vehicles. SIZE (SITE AREA)/SHAPE: Site Area (sq. ft.) 209,088± Site Area (acres) 4.80± Shape Rectangular The above information was obtained from Collier County records. As no survey was provided, this appraisal assumes that the site area is accurate. PHYSICAL FEATURES (TOPOGRAPHY, ELEVATION, ETC.): The subject parcel is mostly wooded and appears to be several feet below the crown of the adjacent roadway. Drainage on the subject property appears to be below average based on flooding during the rainy season. 18 UTILITIES: The subject property is served by the following utilities: Telephone: CenturyLink Electricity: Florida Power & Light Water: Well Sewer: Septic Tank FLOOD ZONE: The subject property is located within Flood Zone AE (EL 6 Feet) as found on Flood Map Panel ID #12021C0620H, as of 16 May 2012. Properties located within this area are subject to a one percent or greater annual chance of flooding in any given year. Base flood elevations are shown as derived from detailed hydraulic analyses. Properties located within this area are typically required to purchase flood insurance under most financing situations. The subject property is not located in a FEMA Firm Floodway. EASEMENTS, ENCROACHMENTS, ETC.: There are no known adverse easements, encroachments, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances or other items of a similar nature. No survey was provided. ASSESSED VALUE, TAXES, AND ASSESSMENTS: Tax Year Market Assessed Value Taxable Value Taxes & Assess. 2020 $100,800 $36,769 $799.90 2019 $108,000 $32,517 $817.14 2018 $108,000 $38,652 $789.66 As of the date of valuation, the 2020 taxes have not been paid and have an outstanding balance of $823.90. This outstanding balance is not considered in the estimation of market value. 19 ZONING: The subject property is zoned A (Rural Agricultural District) under the zoning ordinances of Collier County. Per the Land Development Code: 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. Further accessory and conditional uses, minimum lot sizes, etc. for the aforementioned zoning classification, are set forth in the Land Development Code and the reader is encouraged to review these if further detail is required. The following is a link to the full zoning: https://library.municode.com/fl/collier_county/codes/land_development_cod e?nodeId=CH2ZODIUS_2.03.00ZODIPEUSACUSCOUS_2.03.01AGDI 20 FUTURE LAND USE: The subject property is designated (AG) Agricultural under the Collier County Future Land Use Element. Per the Comprehensive Plan: The Agricultural/Rural Land Use Designation is for those areas that are remote from the existing development pattern, lack public facilities and services, are environmentally sensitive or are in agricultural production. Urbanization is not promoted, therefore most allowable land uses are of low intensity in an effort to maintain and promote the rural character of these lands. Further details for the aforementioned future land use classifications are set forth in the Comprehensive Plan and the reader is encouraged to review these if further detail is required. OVERLAY DISTRICT: The subject is also located within the Neutral Subdistrict of the Rural Fringe Mixed Use Overlay District. 2.03.08 - Rural Fringe Zoning Districts A. Rural Fringe Mixed-Use District (RFMU District). 1. 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. Further details for the aforementioned overlay district are set forth in the Collier County Future Land Use Element and the reader is encouraged to review these if further detail is required. The following link is provided: https://www.colliercountyfl.gov/home/showdocument?id=61991 21 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 exists as vacant, unimproved land. 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 designations control specific allowable development. This property is zoned A (Rural Agricultural District) under the zoning ordinances of Collier County and is designated Agricultural per the Collier County Future Land Use Element of the Comprehensive Plan. Further, this property is located within the Neutral Subdistrict of the Rural Fringe Mixed Use Overlay District. Given existing regulatory considerations, legally permissible uses for the subject would consist primarily of agricultural or rural residential uses. It is unlikely, given the regulatory constraints of Collier County, that the subject property would be rezoned for any significant intensities above the existing allowable uses. 22 Physically Possible Various physical factors have an effect on the uses to which a property may be developed. These factors include size, shape, topography, and soil conditions. The subject site contains 4.80± acres; therefore, it is of sufficient size to accommodate any of a number of legally permissible uses. The mostly wooded parcel is serviced with telephone and electricity services. Water and sewer services would be accommodated by onsite well and septic. The physical aspects of the property do not impose apparent limitations on development other than project size. Based on the physical limitations, agricultural and rural residential uses would be 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. As mentioned above, the legally permissible uses are physically possible. In contemplating the feasible uses, consideration must be given to the site location and access. The subject property is located on the east side of Auto Ranch Road in a rural area of eastern Collier County south of Tamiami Trail East. Access is considered to be adequate and is provided by Tamiami Trail East south to Auto Ranch Road. Prevailing land uses surrounding the subject property consist of residential (e.g. single family) and agricultural uses. Development along Tamiami Trail East, south of its intersection with Collier Boulevard has increased recently. For example, Halvorsen Holdings broke ground on Fiddler’s Creek Plaza, a 60,000 square foot Publix- anchored shopping center that is located at the southeast corner of Tamiami Trail East and Sandpiper Drive. The project is anticipated to be complete by summer 2021. Further evidence of growth patterns along Tamiami Trial is illustrated below: 23 As rooftops increase along the corridor, a corresponding increase in demand for commercial properties will continue. As the subject property is situated with no frontage along Tamiami Trail East and in a rural setting, it is our opinion that the financially feasible use of this property would be for agricultural or rural residential purposes. Maximally Productive The maximally productive use is that development option which will return the greatest profit to the eventual developer. After considering the subject’s fringe location, supply/demand side market factors, and prevailing growth patterns, the highest and best use of the subject site is for agricultural or rural residential purposes. 24 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 discussed within the Scope of Work section of this report, we have utilized the Sales Comparison Approach exclusively in developing an opinion of market value. 25 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). In developing an opinion of the market value of the subject property via the Sales Comparison Approach, we have analyzed the following comparable sales: 26 COMPARABLE LAND SALES MAP 27 COMPARABLE LAND SALE 1 4401 DATE OF SALE: October 01, 2019 ADDRESS: 11050 Riggs Road SALE PRICE: $375,000 STRAP #: 007630400086 & 00763080008 SALE PRICE (ADJUSTED): $375,000 SALE CONDITIONS: Arm's Length RECORDING: 5681/702 UTILITIES: Telephone, Electric, Well, Septic GRANTOR: Goodland Fruit & Honey Co., LLC ZONING: A-Overlay-RFMUO-Receiving GRANTEE: Jay Cartwright and Jenny Cartwright LAND USE: Agricultural/Rural Fringe Mixed Use District-Receiving Lands FINANCING: Cash SALE HISTORY: 8/2014, $250,000 TOPOGRAPHY: Wooded ACCESS: Direct VERIFICATION: Diane Beattie/Re/Max Affinity Plus HIGHEST AND BEST USE: Residential/Agricultural SITE AREA: 415,562 Square Feet 9.540 Acres UNIT OF VALUE: $0.90 Per SF $39,308 per AC COMMENTS: The property is located on the east side of Riggs Road (paved road), approximately 1 mile north of Tamiami Trail E in East Naples. There is a 40' x 60' pole barn on the property that was given no contributory value. 28 COMPARABLE LAND SALE 2 4397 DATE OF SALE: January 28, 2020 ADDRESS: 511 Auto Ranch Road SALE PRICE: $117,500 STRAP #: 00764320000 SALE PRICE (ADJUSTED): $117,500 SALE CONDITIONS: Arm's Length RECORDING: 5723/1507 UTILITIES: Telephone, Electric, Well, Septic GRANTOR: Michael J Molinari ZONING: A-Overlay-RFMUO-Neutral GRANTEE: Mark J Woodward, Trustee LAND USE: Agricultural/Rural Fringe Mixed Use District-Neutral Lands FINANCING: Cash SALE HISTORY: None in previous five years TOPOGRAPHY: Wooded ACCESS: Direct-paved road VERIFICATION: Jim Gilboy/Marco Island Real Estate HIGHEST AND BEST USE: Residential/Agriculture SITE AREA: 209,088 Square Feet 4.800 Acres UNIT OF VALUE: $0.56 Per SF $24,479 per AC COMMENTS: The property is located on the west side of Auto Ranch Road (paved), approximately 1/2 mile south of Tamiami Trail E in East Naples. 29 COMPARABLE LAND SALE 3 4399 DATE OF SALE: August 05, 2020 ADDRESS: Lacewing Lane SALE PRICE: $53,000 STRAP #: 00755120002 SALE PRICE (ADJUSTED): $53,000 SALE CONDITIONS: Arm's Length RECORDING: 5799/1435 UTILITIES: Telephone, Electric, Well, Septic GRANTOR: Howard Steven Sawyer ZONING: A-Overlay-RFMUO-Receiving GRANTEE: Bruno Properties, L.L.C. LAND USE: Agricultural/Rural Fringe Mixed Use District-Receiving Lands FINANCING: Cash SALE HISTORY: None in previous five years TOPOGRAPHY: Wooded ACCESS: Direct-dirt road VERIFICATION: Bob Kapish/John R Wood Properties HIGHEST AND BEST USE: Agricultural/Residential SITE AREA: 108,900 Square Feet 2.500 Acres UNIT OF VALUE: $0.49 Per SF $21,200 per AC COMMENTS: The property is located on the west side of Lacewing Lane (dirt road), approximately 3/4 mile north of Tamiami Trail E in East Naples. 30 COMPARABLE LAND SALE 4 4398 DATE OF SALE: October 14, 2020 ADDRESS: Ladybug Lane SALE PRICE: $150,000 STRAP #: 00755400007 SALE PRICE (ADJUSTED): $150,000 SALE CONDITIONS: Arm's Length RECORDING: 5830/2415 UTILITIES: Telephone, Electric, Well, Septic GRANTOR: Native Treez, LLC ZONING: A-Overlay-RFMUO-Receiving GRANTEE: Phyllis J Kepler LAND USE: Agricultural/Rural Fringe Mixed Use District-Receiving Lands FINANCING: Cash SALE HISTORY: 11/2016, $94,000 TOPOGRAPHY: Wooded ACCESS: Direct-dirt road VERIFICATION: MLS #2200241148 & Downing Fry Realty, Inc. HIGHEST AND BEST USE: Residential/Agricultural SITE AREA: 435,600 Square Feet 10.000 Acres UNIT OF VALUE: $0.34 Per SF $15,000 per AC COMMENTS: The property is located on the west side of Ladybug Lane (dirt road), approximately one mile north of Tamiami Trail E in East Naples. 31 COMPARABLE LAND SALE 5 4400 DATE OF SALE: October 23, 2020 ADDRESS: Lacewing Lane SALE PRICE: $55,100 STRAP #: 00756000008 SALE PRICE (ADJUSTED): $55,100 SALE CONDITIONS: Arm's Length RECORDING: 5840/1839 UTILITIES: Telephone, Electric, Well, Septic GRANTOR: Carolyn Sawyer ZONING: A-Overlay-RFMUO-Receiving GRANTEE: Joseph Baron LAND USE: Agricultural/Rural Fringe Mixed Use District-Receiving Lands FINANCING: Cash SALE HISTORY: None in previous five years TOPOGRAPHY: Wooded ACCESS: Direct-dirt road VERIFICATION: Bob Kapish/John R Wood Properties HIGHEST AND BEST USE: Agricultural/Residential SITE AREA: 108,900 Square Feet 2.500 Acres UNIT OF VALUE: $0.51 Per SF $22,040 per AC COMMENTS: The property is located on the east side of Lacewing Lane (dirt road), approximately 3/4 mile north of Tamiami Trail E in East Naples. 32 Comparable Land Sales Chart The comparable sales and our analysis thereof are summarized in the following chart: SubjectComparable No. 1Comparable No. 2Comparable No. 3Comparable No. 4Comparable No. 5Transaction Data: Date of Sale:Apr-21Oct-19Jan-20Aug-20Oct-20Oct-20 Sale/Listing Price:$375,000$117,500$53,000$150,000$55,100 Sale/Listing Price (Adjusted):$375,000$117,500$53,000$150,000$55,100Physical Data: Street Address:600 Auto Ranch Rd. 11050 Riggs Rd. 511 Auto Ranch Rd.N/AN/AN/A Market:Collier CountyCollier CountyCollier CountyCollier CountyCollier CountyCollier County Site Area (sq.ft.):209,088415,562209,088108,900435,600108,900 Site Area (acres):4.809.544.802.5010.002.50 Topography:Mostly WoodedWoodedWoodedWoodedWoodedWooded Shape:RectangularRectangularRectangularRectangularRectangularRectangular Utilities:Water, Electricty, Telephone, SepticWater, Electricty, Telephone, SepticWater, Electricty, Telephone, SepticWater, Electricty, Telephone, SepticWater, Electricty, Telephone, SepticWater, Electricty, Telephone, SepticUse Data: Zoning:AAAAAA Land Use:AgriculturalAgriculturalAgriculturalAgriculturalAgriculturalAgricultural Highest and Best Use:Agricultural/Residential Agricultural/Residential Agricultural/Residential Agricultural/Residential Agricultural/Residential Agricultural/ResidentialSales Price Analysis: Price per Acre (Site):$39,308$24,479$21,200$15,000$22,040Transactional Adjustments: Financing Terms:0.0%0.0%0.0%0.0%0.0% (Per Acre):$39,308$24,479$21,200$15,000$22,040 Conditions of Sale:0.0%0.0%0.0%0.0%0.0% (Per Acre):$39,308$24,479$21,200$15,000$22,040 Expenditures After Purchase:0.0%0.0%0.0%0.0%0.0% (Per Acre):$39,308$24,479$21,200$15,000$22,040 Market Conditions (time):4.50%3.75%2.00%1.50%1.50% (Adjusted Price per Acre):$41,077 $25,397 $21,624 $15,225 $22,371Physical Adjustments: Location:0%0%0%0%0% Access/Exposure:0%0%15%15%15% Size (Site Area):5%0%-5%5%-5% Topography:0%0%0%0%0% Shape:0%0%0%0%0% Utilities:0%0%0%0%0% Zoning/Land Use:0%0%0%0%0% Net Adjustments:5%0%10%20%10%Adjusted Price Per Acre$43,131$25,397$23,786$18,270$24,608 33 Description of Sales Sale 1 is the October 2019 sale of an agricultural property located along the east side of Riggs Road, approximately one mile north of Tamiami Trail East in Collier County. This property sold for $330,000, or $39,308 per acre. This sale required an upward market conditions adjustment of 4.50% to account for increasing values in the market, which resulted in a transactionally adjusted price of $41,077 per acre. This sale also required an upward adjustment size. The final adjusted value indication is $43,131 per acre. Sale 2 is the January 2020 sale of an agricultural property located along the west side of Auto Ranch Road, approximately 0.50 miles south of Tamiami Trail East in Collier County. This property sold for $117,500, or $24,479 per acre. This sale required an upward market conditions adjustment of 3.75% to account for increasing values in the market, which resulted in a transactionally adjusted price of $25,397 per acre. The final adjusted value indication is $25,397 per acre. Sale 3 is the August 2020 sale of an agricultural property located along the west side of Lacewing Lane, approximately 0.75 miles north of Tamiami Trail East in Collier County. This property sold for $53,000, or $21,200 per acre. This sale required an upward market conditions adjustment of 2.00% to account for increasing values in the market, which resulted in a transactionally adjusted price of $21,624 per acre. This sale also required an upward adjustment for access, as well as a downward adjustment for size. The final adjusted value indication is $23,786 per acre. Sale 4 is the October 2020 sale of an agricultural property located along the west side of Ladybug Lane, approximately one mile north of Tamiami Trail East in Collier County. This property sold for $150,000, or $15,000 per acre. This sale required an upward market conditions adjustment of 1.50% to account for increasing values in the market, which resulted in a transactionally adjusted price of $15,225 per acre. This sale also required upward adjustments for access and size. The final adjusted value indication is $18,270 per acre. Sale 5 is the October 2020 sale of an agricultural property located along the east side of Lacewing Lane, approximately 0.75 miles north of Tamiami Trail East in Collier County. This property sold for $55,100, or $22,040 per acre. This sale required an upward market conditions adjustment of 1.50% to account for increasing values in the market, which resulted in a transactionally adjusted price of $22,371 per acre. This sale also required an upward adjustment for access, as well as a downward adjustment for size. The final adjusted value indication is $24,608 per acre. 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. 34 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 any significant changes in the local real estate market. The property value trend found throughout the market changed drastically over the past decade or so, with substantial increases during the period of 2002-2005 followed by equally substantial declines during the period of 2006-2009, and this declining trend reversing in 2012. Market conditions have demonstrated stable growth since 2015 and based upon our paired sales analyses of sale/re-sales of properties in the region, as well as the previous discussion, the comparable sales have been adjusted at positive 0.25% per month for market conditions over the timeframe analyzed. 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. These attributes affect the financially feasible uses of the site. No adjustments for this factor are warranted.  Access/Exposure: This refers to the accessibility of a property (i.e. – road type, frontage road vs. direct frontage, existence of median cuts, etc.). In this regard, Sale Nos. 3, 4, and 5 were deemed inferior (e.g. dirt road). As such, upward adjustments of 15% were applied. The remaining sales were considered similar in this respect.  Size (Site Area): Larger parcels often sell for a lower price per unit of comparison than do smaller parcels. In this regard, Sale Nos. 1 and 4 were considered inferior. As such, upward adjustments of 5% were applied. Sale Nos. 3 and 5 were deemed superior. As such, downward adjustments of 5% were applied. The remaining sale was considered similar.  Topography: This refers to the physical condition of the property, such as if the property is cleared or if there are significant changes in elevation. No adjustments for this factor are warranted.  Shape: This refers to the configuration or orientation of the property which might impact the development potential. For example, a property which is a long, narrow rectangle may have difficulty being developed due to setback requirements. No adjustments for this factor are warranted.  Utilities: The presence or absence of certain utilities can strongly 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). No adjustments for this factor are warranted.  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. No adjustments for this factor are warranted. 35 Value Conclusion These comparable sales range in adjusted prices as shown below: The comparables provided sufficient evidence to indicate a reliable and credible land value estimate. After considering the comparables, current market conditions, and because of the subject’s: 1) location, 2) physical characteristics, and 3) regulatory considerations, it is our opinion that the market value of the subject property, as of the effective date of appraisal is $27,000 per acre of gross land area. Application of this unit of value results in the following estimated value for the subject property: Descriptive Statistics: Multiplier:*Price per Acre: Mean:$27,038 Median:$24,608 Standard Deviation:$9,421 Minimum:$18,270 Maximum:$43,131 Range:$24,861 * Based on adjusted price Site Area (Acre)Value per Acre Opinion of Value Rounded to 4.80 $27,000 $129,600 $130,000 36 SEC. VII: RECONCILIATION OF OPINIONS OF VALUE Cost Approach to Value N/A Sales Comparison Approach to Value $130,000 Income Approach to Value N/A As previously discussed, only the Sales Comparison Approach has been developed. Therefore, no reconciliation of varying approaches is required. Based upon the results of the analyses and data contained in this report, including any Extraordinary Assumptions and Hypothetical Conditions outlined in the Addenda, it is our opinion that the “as is” market value of the fee simple interest in the subject property, as of 13 April 2021, is ONE HUNDRED THIRTY THOUSAND DOLLARS - $130,000 The above opinion of market value is contingent upon the certification and the assumptions and conditions of this appraisal, if any. CONTRACTS, LISTINGS & SALES HISTORY According to public records, there have been no qualified sales involving the subject property during the past three years. As of the date of value, the property was not listed for sale or under contract for purchase. 37 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 6 to 12 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 6 to 12 months. 38 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 no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.  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 made a personal inspection of the property that is the subject of this report. For this analysis, Andrew D. Anderson, MBA conducted an inspection of the subject property on 13 April 2021. Gerald A. Hendry, MAI, CCIM also inspected the property.  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. 39  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. Andrew D. Anderson, MBA State-Certified General Real Estate Appraiser, RZ 3175 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 40 SEC. IX: ADDENDA PURCHASE ORDER 41 QUALIFICATIONS OF ANDREW D. ANDERSON, MBA EDUCATIONAL BACKGROUND AND TRAINING: Bachelor of Arts in Business Administration, Warner University, Lake Wales, Florida (2001) Master in Business Administration, Florida Gulf Coast University, Fort Myers, Florida (2005) Education through the Appraisal Institute, Steve Williamson’s Real Estate Education Specialists, Florida Real Estate Academy, Cooke Real Estate School Currently an Associate Appraiser with Maxwell, Hendry, & Simmons, LLC, Fort Myers, Florida Associate Appraiser with Hanson Real Estate Advisors, Inc. Fort Myers, Florida (2004 – 2018) PROFESSIONAL DESIGNATIONS & AFFILIATIONS State-Certified General Real Estate Appraiser, RZ3175 State-Licensed Real Estate Sales Associate, SL3412003 Appraisal Institute – Practicing Affiliate Real Estate Investment Society Royal Palm Coast Realtor Association OTHER Qualified as an expert witness in Florida District Court: 20th Judicial Circuit. LICENSE 42 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. 43 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 44 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. 45 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. 46 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.