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Agenda 2/14/2023 Item #16K 8 (Riviera Golf Course Converion application and minimize future Bert Harris Litigation arising from the County's golf course conversion project)SEE REVERSE SIDE  Proposed Agenda Changes Board of County Commissioners Meeting February 14, 2023 Move item 16K8 to 12A: Recommendation to 1) Direct staff to provide written notice of a Bert Harris Claim received in connection with the Riviera Golf Course Conversion application to owners of real property contiguous to the owner’s property pursuant to Florida Statutes Section 70.001(4)(a), known as the Bert J. Harris, Jr. Private Property Rights Protection Act; 2) Direct the County Manager to negotiate a settlement of the Bert Harris Claim, which may include a pre-suit mediation conference, and return to the Board for consideration of the settlement; 3) Direct staff to issue a written statement of allowable uses identifying the allowable uses to which the subject property may be put pursuant to Florida Statutes Section 70.001(5)(a); and 4) Direct staff to prepare an LDC amendment of Section 5.05.15, Conversion of Golf Courses, to minimize future litigation in connection with the golf course conversion process. (All Districts) (By Separate Requests of  Commissioners McDaniel, LoCastro, Kowal, Hall, and Saunders)  Notes: Items 9A and 9B should be identified as “(All Districts)” rather than District 2. Item 10A clarification:  The grant reimbursement will not include the $166,991.91 expended, plus the pending  expenses already incurred and in process for payment. TIME CERTAIN ITEMS: Items 10A and 11A (companion items) to be heard at 9:30 AM: COVID-19 Extra Mile Migrant Farmworker Community grant. Items 9A and 9B (companion items) to be heard at 10:00 AM: Collier County Behavioral Health Center PUDZ & GMPA. 2/23/2023 3:46 PM 16. K.8 02/ 14/2023 EXECUTIVE SUMMARY Recommendation to 1) Direct staff to provide written notice of a Bert Harris Claim received in connection with the Riviera Golf Course Conversion application to owners of real property contiguous to the owner's property pursuant to Florida Statutes Section 70.001(4)(a), known as the Bert J. Harris, Jr. Private Property Rights Protection Act; 2) Direct the County Manager to negotiate a settlement of the Bert Harris Claim, which may include a pre -suit mediation conference, and return to the Board for consideration of the settlement; 3) Direct staff to issue a written statement of allowable uses identifying the allowable uses to which the subject property may be put pursuant to Florida Statutes Section 70.001(5)(a); and 4) Direct staff to prepare an LDC amendment of Section 5.05.15, Conversion of Golf Courses, to minimize future litigation in connection with the golf course conversion process. OBJECTIVE: To respond to a Bert Harris claim received in connection with the Riviera Golf Course Conversion application and minimize future Bert Harris litigation arising from the County's golf course conversion process. CONSIDERATIONS: On February 3, 2023, the County received a Bert Harris Notice of Claim (the "Claim") from La Minnesota Riviera LLC ("Owner") pursuant to Florida Statutes 70.001(4)(a), the Bert J. Harris Private Property Rights Act (the "Act"), with respect to the approximately 93 -acre parcel of land located at 164 Estelle Drive, otherwise known as the Riviera Golf Course (the "Property"). The focus of the Claim is LDC Section 5.05.15.G.2., which requires that the Owner provide a greenway with a minimum average width of 100 feet and no less than 75 feet in any location. The Owner claims that such a requirement results in a loss of developable area equating to 242 units and therefore inordinately burdens the Property. Please note that the County Attorney believes that the County has strong defenses to any suit that may be filed on this matter. Regardless, the Claim triggered a 90-day-notice period before suit can be commenced, and under the Act, with receipt of the Claim the County now has several obligations to fulfill during this 90-day period: (1) First, Florida Statutes Section 70.001(4)(b) requires that a governmental entity provide written notice of the claim to "owners of real property contiguous to the owner's property at the addresses listed on the most recent county tax rolls." In order to comply with this requirement, the County Attorney recommends that the Board direct staff to provide the required written notice of the Claim to contiguous property owners. (2) Second, Florida Statutes Section 70.001(4)(c) requires the County to "make a written settlement offer to effectuate: 1. An adjustment of land development or permit standards or other provisions controlling the development or use of land. 2. Increases or modifications in the density, intensity, or use of areas of development. 3. The transfer of development rights. 4. Land swaps or exchanges. 5. Mitigation, including payments in lieu of onsite mitigation. 6. Location on the least sensitive portion of the property. 7. Conditioning the amount of development or use permitted. 8. A requirement that issues be addressed on a more comprehensive basis than a single proposed use or development. 9. Issuance of the development order, a variance, a special exception, or any other extraordinary relief. 10. Purchase of the real property, or an interest therein, by an appropriate governmental entity or payment of compensation. 11. No changes to the action of the governmental entity." In order to comply with this requirement, the County Attorney recommends that the Board direct the Packet Pg. 1395 16. K.8 02/ 14/2023 County Manager to negotiate a settlement of the Bert Harris Claim, which may include a pre -suit mediation conference, and return to the Board for approval of the settlement (which includes no changes). (3) Third, Florida Statutes Section 70.001(5)(a), requires that "unless a settlement offer is accepted by the property owner, each of the governmental entities provided notice under subsection (4) shall issue a written statement of allowable uses identifying the allowable uses to which the subject property may be put." The County Attorney therefore recommends that the Board direct Staff to provide a written statement to the Owner identifying the current allowable uses on the property. Lastly, the County Attorney recommends that the Board direct staff to prepare an LDC amendment of Section 5.05.15, Conversion of Golf Courses, to minimize future litigation in connection with the golf course conversion process. In the past year alone, the County has received two (2) Bert Harris claims related to the County's golf course conversion ordinance. One issue has been the applicability of the conversion process to stand-alone golf courses that are not part of a residential development. Another issue has been the ability of the Board to approve alternative designs for development. An LDC amendment addressing these issues would help to minimize future litigation and streamline the golf course conversion process. FISCAL IMPACT: The cost of mailed notice to contiguous property owners is approximately $2,000. The cost of advertising an LDC Amendment is $1,625. 194 Z111111I:NOV /EWIFET"11u1oleo r1uI VTOMort MW LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality and requires majority vote for approval. -JAK RECOMMENDATION: That the Board of County Commissioners 1) Direct staff to provide written notice of a Bert Harris Claim received in connection with the Riviera Golf Course Conversion application to owners of real property contiguous to the owner's property pursuant to Florida Statutes Section 70.001(4)(a), known as the Bert J. Harris, Jr. Private Property Rights Protection Act; 2) Direct the County Manager to negotiate a settlement of the Bert Harris Claim, which may include a pre -suit mediation conference, and return to the Board for consideration of the settlement; 3) Direct staff to issue a written statement of allowable uses identifying the allowable uses to which the subject property may be put pursuant to Florida Statutes Section 70.001(5)(a); and 4) Direct staff to prepare an LDC amendment of Section 5.05.15, Conversion of Golf Courses, to minimize future litigation in connection with the golf course conversion process. Prepared by: Jeffrey A. Klatzkow, County Attorney ATTACHMENT(S) 1. Letter to County re Bert Harris C1aim.Final (PDF) Packet Pg. 1396 16. K.8 02/14/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.K.8 Doc ID: 24401 Item Summary: Recommendation to 1) Direct staff to provide written notice of a Bert Harris Claim received in connection with the Riviera Golf Course Conversion application to owners of real property contiguous to the owner's property pursuant to Florida Statutes Section 70.001(4)(a), known as the Bert J. Harris, Jr. Private Property Rights Protection Act; 2) Direct the County Manager to negotiate a settlement of the Bert Harris Claim, which may include a pre -suit mediation conference, and return to the Board for consideration of the settlement; 3) Direct staff to issue a written statement of allowable uses identifying the allowable uses to which the subject property may be put pursuant to Florida Statutes Section 70.001(5)(a); and 4) Direct staff to prepare an LDC amendment of Section 5.05.15, Conversion of Golf Courses, to minimize future litigation in connection with the golf course conversion process. Meeting Date: 02/14/2023 Prepared by: Title: Legal Assistant — County Attorney's Office Name: Wanda Rodriguez 01/13/2023 2:30 PM Submitted by: Title: County Attorney — County Attorney's Office Name: Jeffrey A. Klatzkow 01/13/2023 2:30 PM Approved By: Review: Zoning Office of Management and Budget County Attorney's Office Office of Management and Budget Office of Management and Budget Board of County Commissioners County Manager's Office Mike Bosi Additional Reviewer Completed 02/07/2023 4:18 PM Wanda Rodriguez Level 3 OMB Gatekeeper Review Skipped 01/13/2023 2:29 PM Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/07/2023 4:19 PM Debra Windsor Level 3 OMB Gatekeeper Completed 02/08/2023 9:14 AM Susan Usher Additional Reviewer Geoffrey Willig Meeting Pending Amy Patterson Level 4 County Manager Review Completed 02/08/2023 9:50 AM 02/14/2023 9:00 AM Completed 02/08/2023 10:14 AM Packet Pg. 1397 16.K.8.a CYI< 11-'koiidc33 A 10 3 February 3, 2023 VIA CERTIFIED MAIL AND ELECTRONIC MAIL Commissioner Rich LoCastro Arny Patterson, County Manager Collier County Board of County Commissioners Collier County Government Center 3299 Tamiami Trail East, Suite 303 3299 Tamiami Trail East Naples, Florida 34112 Naples, Florida 34112 Rick. LoCastro%c�)colIicrc�t Am .I'attersol A)colIiercountvfl.�,ov Dear Chairman Rick LoCastro and County Manager Ms. Amy Patterson: This office represents La Minnesota Riviera LLC ("Owner"). This letter is to serve notice of a claim w pursuant to Florida Statutes Section 70.001(4)(a), the Bert J. Harris Private Property Rights Act (the' Act"), with respect to the 93 acre, more or less, parcel of land situated in Collier County, Florida, with a site = address of 164 Estelle Drive ("Subject Property") arising from the clear and unequivocal impact of Ordinance 17-10 (the "Golf Course Conversion Ordinance") oil the Subject Property, and the County's o subsequent dismissal of the Owner's March 25, 2022 notice for a statement of limitations imposed on the Subject Property as a result of the Golf Course Conversion Ordinance, to which the Owner is entitled c pursuant to Section 70.001(11)(a) l .b of the Act. This letter is also a request that the County engage in the N settlement process called for in Section 70.001(4)(c) of the Act, and, if settlement fails, that the County L issue a statement of allowable uses for the Subject Property as required by Section 70.001(5)(a) of the Act. 0 OPPORTUNITY TO RESOLVE CLAIM BEFORE LITIGATION PROCEEDS N Prior to filing a claim under the Bert Harris Act, the Act affords the Board of County Commissioners the opportunity to resolve the claim through many different approaches, which might include a modification to use of areas of development to eliminate a "greenway" requirement and instead require the standard type buffer required under the Land Development Code, or other form of relief to enable redevelopment consistent with the Growth Management Plan designation for the Subject Property and the surrounding residential uses and densities. In addition, though not required by the Act, the Owner invites the County to participate in a pre -suit mediation conference to discuss a resolution, as communication is typically essential to resolve a dispute of this nature. If mediation is pursued, one (1) member of the Board of County Commissioners is requested to attend. Please contact the undersigned if the County desires to discuss a resolution in a mediation setting. THE CLAIM Incorporated by reference is the Owner's March 25, 2022 notice ("Notice") for a statement of limitations imposed on the Subject Property as a result of the Golf Course Conversion Ordinance. The County was required to respond in writing within 45 days of receipt of the March 25, 2022 notice, but failed to do so. The Owner is not required to formally pursue an application for development order, as such is deemed a waste of resources. ........... Packet Pg. 1398 16.K.8.a The Subject Property is zoned "GC" Open Space and designated Urban Residential on the Future Land Use Map. The zoning designation does not permit residential use, though residential use is consistent with the Urban Residential designation ascribed to the Subject Property. All properties surrounding the Subject Property lie within the Urban Residential designation and are permitted and developed with residential use. Accordingly, for all surrounding properties, the Future Land Use Designation and the permitted uses are consistent. The Subject Property is a veritable island of "Open Space" inconsistent with the development patterns of the community. Uses permitted in the Open Space district are not economically realistic. A conversion to residential use is logical and foreseeable due to several factors, not the least of which is the development pattern in the surrounding community, the current Future Land Use Designation, and the very enactment of the Golf Course Conversion Ordinance itself. The impact of the Golf Course Conversion Ordinance on the Subject Property is clear and unequivocal. In addition to the supplemental time and processes imposed that exceeds the requirements for any other conversion to residential use in Collier County, the Golf Course Conversion Ordinance mandates a dedicated "greenway" of undevelopable land equal to no less than 75 feet in width and an average 100 feet in width, and, pursuant to Section 5.05.15.G.2.b, the width of the greenway cannot be waived. A simple site study demonstrates that the mandated greenway results in a loss in developable area that equates to 242 dwelling units. The Golf Course Conversion Ordinance inordinately burdens the Subject Property because it restricts or limits the use thereof, such that the Owner is unable to attain its investment -backed expectation to redevelop the Subject Property and/or vested right to redevelop the Subject Property. A bona -fide, valid appraisal showing the diminution in value of the Subject Property is enclosed. The diminution in value and the amount of the claim is: "Before Value" $20,760,000 "After Value" $ 6,240,000 Total Claim $14,520,000 For the foregoing reason and corresponding enclosures, the Owner requests that the County comply with the provisions of Florida Statutes Section 70.001(4)(c) to make a written settlement offer and, if settlement fails, to issue a statement of allowable uses for the Subject Property as required under Florida Statutes Section 70.001(5)(a). Sincerely, 4-- Richard D. Yovanovich, Esq. Enclosures cc: Crystal K. Kinzel, County Clerk Jeffrey A. Klatzkow, County Attorney Francesca Passidomo, Esq, Packet Pg. 1399 16.K.8.a CYK4001 Tamiami Trail North, Suite 300 Naples, Florida 34103 COLEMAN I YOVANOVICH 1 KOESTER T:239.435.3535 1 F:239.435.1218 March 25, 2022 Via E-mail and Certified Mail Collier County Zoning Department Michael Bosi 2800 North Horseshoe Drive Naples, Florida 34104 Re: Riviera Golf Estates Dear Mr. Bosi, Email: ryovarrovich a�cyklaii,firm. com As you know, my client is currently pursuing a change in use from Golf Course and Recreation to y Residential Planned Development. The Golf Course and Recreation designation imposes uses that o are simply not economically viable. On the other hand, the proposed residential use is the highest ,CL and best use of the property. Residential is consistent with the Growth Management Plan and is plainly consistent with the existing land use pattern. The property is completely surrounded by o single and multi -family residential developments and a mobile home park. Finally, the proposed residential use is suitable for the area. The Buffer Requirements under the Land Development Code anticipate residential will abut residential and find this scheme of development wholly suitable. My client has owned the property since March 15, 2005. Prior to adoption of Section 5.05.15 ("Golf Course Conversion Ordinance") on March 28, 2017, my client could have achieved the proposed residential land use through a rezone to PUD. A rezone is accomplished through a very specific process and is based on the application of very specific criteria. By adopting the new law, the impact of the Golf Course Conversion Ordinance on my client's property is clear and unequivocal. My client is now forced through a new process that is both a significant financial burden and a delay that is not a mere temporary impact. More importantly, the Golf Course Conversion Ordinance imposes new and additional development standards that cause an inordinate burden on use of their property. The burden includes, without limitation, a requirement that my client to forfeit significant portion of its lands for an undevelopable greenway with a minimum average width of 100 feet and no less than 75 feet in any location (LDC Sec. 5.15.G.2.a) resulting in a maximum 104 SFA residential lots that can actually fit within the balance of the developable area. But for the Golf Course Conversion Ordinance, the applicable buffer between residential and residential under the Land Development Code is a 15 feet Type "B" Buffer (LDC Sec. 4.06.02.B) and my client could have constructed up to 346 residential lots. This buffer cyklawfirm.com Packet Pg. 1400 Appeal 20180002049 March 25, 2022 Page 2 of 2 standard in the Land Development Code is evidence that residential uses are compatible so long as a 15 feet Type "B" Buffer is provided. The Golf Course Conversion Ordinance attempts to vest in adjacent owners a right they previously did not possesses, that is "to retain an open space view". (LDC Sec. 5.15.G.2). When my client purchased the property, it was not encumbered by this purported public right. Indeed, my client purchased the property with the understanding that residential development could be accomplished through the rezone process and approved based on the rezone criteria, including the long- established buffer requirement between residential developments. Instead, by creating an after - the -fact right in favor of the public without my client's consent, my client's property is forced to act as uncompensated green space for the neighborhood. Simply put, due to the Golf Course Conversion Ordinance, my client is forced to carry a disproportionate and permanent burden for the good of the public, when in fairness, it should he borne by the public at large through County macro -level planning. Because it is general knowledge that golf courses are a failed business and the existing Growth management plan designation for the property, the County knew that a conversion of the golf course to residential was reasonably probable. This is clear from the very adoption of the Golf Course Conversion Ordinance itself. Refusing to allow my client to pursue the standard PUD rezone process for residential use and requiring that my client use his private property as a source of open space, water management and recreation for the surrounding community, is an inordinate burden to a reasonably foreseeable use. 16.K.8.a In light of these facts, we ask that you please consider this letter as a notification by the property le owner that we deem the impact of the Golf Course Conversion Ordinance on the property as clear and unequivocal in its terms and, as such, restrictive of the property before the enactment. We respectfully request a response that describes the limitations imposed on the property by the Golf iL Course Conversion Ordinance in accordance with Section 70,01(11)(a)1.b., Florida Statutes. E Respectfully, Richard D. Yovanovich, Esq. cc: Jeffrey Klatzkow, via email Client, via email Francesca Passidomo, Esq., via email cyklawfirm.com Packet Pg. 14 171 16. K.8.a Integra Realty Resources Southwest Florida Appraisal of Real Property Former Riviera Golf Course Land Vacant Land 164 Estelle Dr. Naples, Collier County, Florida 34112 Prepared For: Coleman, Yovanovich & Koester Date of the Report: February 3, 2023 Report Format: Appraisal Report IRR - Southwest Florida File Number: 152-2023-0023 Packet Pg. 1402 16. K.8.a Subject Photographs Former Riviera Golf Course Land 164 Estelle Dr. Naples, Florida Packet Pg. 1403 qj .11, IMP RINI 1-7111-1 4xf 1A 16.K.8.a Integra Realty Resources Miami/Caribbean Orlando Southwest Florida www.irr.com February 3, 2023 In Miami/Caribbean Dadeland Centre 9155 South Dadeland Blvd. Suite 1208 Miami, FL 33156 (305) 670-0001 In Orlando The Magnolia Building 326 N. Magnolia Ave. Orlando, FL 32801 (407) 843-3377 La Minnesota Riviera, LLCMr. Richard Yovanovich Attorney at Law Coleman, Yovanovich & Koester 4001 Tamiami Trail North Suite 300 Naples, FL 34103 SUBJECT: Market Value Appraisal Former Riviera Golf Course Land 164 Estelle Dr. Naples, Collier County, Florida 34112 IRR - Southwest Florida File No. 152-2023-0023 Dear Mr. Yovanovich: In Naples/Sarasota Horseshoe Professional Park 2770 Horseshoe Drive S. Suite 3 Naples, FL 34104 (239)-643-6888 Integra Realty Resources —Southwest Florida is pleased to submit the accompanying appraisal of the referenced property. The subject of this appraisal is the former Riviera Golf Club. The 18-hole public course closed in 2022. The course was developed on +/-93.34 acres within the Riviera Golf Estates neighborhood. Riviera Golf Estates is a 55-plus community consisting of nearly 700 single-family homes, manufactured homes and condominiums. The subject is zoned Golf Course and Recreational Use District (GC) by Collier County. The subject has a future land use designation of Urban Residential. The subject property has been under the same ownership since March 2005. Prior to adoption of Section 5.05.15 ("Golf Course Conversion Ordinance") on March 28, 2017, ownership could have attempted to rezone the property to a residential land use through a rezone to a planned unit development. Your attention is directed to the "General Assumptions", "General Limiting Conditions", and "Certificate of Appraisal", which are considered usual for this type of assignment and have been included in the addendum of this report. The term 'inordinate burden' means action of one or more governmental entities has directly restricted or limited the use of real property such that the property owner is Packet Pg. 1405 16.K.8.a La Minnesota Riviera, LLCMr. Richard Yovanovich Coleman, Yovanovich & Koester February 3, 2023 Page 2 permanently unable to attain the reasonable, investment -backed expectation for the existing use of the real property or a vested right to a specific use of the real property with respect to the real property as a whole, or that the property owner is left with existing or vested uses that are unreasonable such that the property owner bears permanently a disproportionate share of a burden imposed for the good of the public, which in fairness should be borne by the public at large." (2010 Florida Statutes 70.001 Private Property Rights Protection, the Bert Harris Jr. Private Property Rights Act.) At the request of the client, the purpose of the appraisal is to develop the following opinions of value: • The market value of the fee simple interest in the subject property as of the effective date of the appraisal, April 25, 2022, subject to the hypothetical condition that the property is developable with 346 residential units • The market value of the fee simple interest in the subject property as of the effective date of the appraisal, April 26, 2022, subject to the hypothetical condition that the property is developable with 104 residential units The diminution in value for the subject property as of the effective date of the appraisal, April 26, 2022 The client for the assignment is Coleman, Yovanovich & Koester. The intended user of this Q. report is the client. The intended use of the appraisal is to assist the client with a potential L Bert Harris Act claim. No other party or parties may use or rely on the information, opinions, r and conclusions contained in this report. v N The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, applicable state appraisal regulations. Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis that were used to develop the opinion of value. rrr Packet Pg. 1406 16.K.8.a La Minnesota Riviera, LLCMr. Richard Yovanovich Coleman, Yovanovich & Koester February 3, 2023 Page 3 Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, the concluded opinions of value are as follows: Value Conclusions Parcel I nterest Appra i s ed Date of Value VaIueConclusion As if developablewith346residential units Fee Simple April 25,2022 $20,760,000 As if developablewith 104 residential units Fee Simple April 26,2022 $6,240,000 Given these values, and the assumptions contained herein, the diminution in value is estimated as follows. Dimunition In Value As if developable with 346 residential units $20,760,000 As if developable with 104 residential units $6,240,000 Di munition In Value As Of April 26, 2022 $14,520,000 Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions.An extraordinary assumption is an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to befalse, could alter the appraiser's opinions or conclusions. 1. None 1__ The value conclusions arebased on thefollowing hypothetical conditions. Ahypothetical condition is a condition, r 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. c� 1. The before scenario is subjectto the hypothetical condition that the property has been rezoned for 346 residential units prior to the County's adoption of the Golf Course Conversion Ordinance mandating an undevelopable buffer area between 75 - 100 feet in width. 2. The after scenario is subjectto the hypothetical condition that the property has been rezoned for 104 residential E units after the County's adoption of the Golf Course Conversion Ordinance mandating an undevelopable buffer U area between 75 - 100 feet in width. N The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. The opinions of value expressed in this report are based on estimates and forecasts which are prospective in nature and subject to considerable risk and uncertainty. Events may occur which could cause the performance of the property to differ materially from the estimates contained herein, such as changes in the economy, interest rates, capitalization rates, financial strength of tenants, and behavior of investors, lenders, and consumers. Additionally, the concluded opinions and forecasts are based partly on data obtained from interviews and third -party sources, which are not always completely reliable. Although the findings are considered reasonable based on available evidence, IRR is not responsible for the effects of future, unforeseen occurrences. If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. rrr Packet Pg. 1407 La Minnesota Riviera, LLCMr. Richard Yovanovich 16. K.8.a Coleman, Yovanovich & Koester February 3, 2023 Page 4 Respectfully submitted, Integra Realty Resources - Southwest Florida Carl n Lloyd, MAI Florida State Certified General RE Appraiser #RZ2618 Telephone: 239.687.5801 Email: clloyd@irr.com err. Packet Pg. 1408 16.K.8.a Table of Contents Quality Assurance 1 As if developable with 104 residential units Executive Summary 2 (93.34 Acres; 4,065,890 SF) 42 Summary of Land Values 49 Identification of the Appraisal Problem 3 Reconciliation and Conclusion of Value 50 Subject Description 3 Exposure Time 51 3 Sale History 3 Marketing Period 51 0 Pending Transactions 3 Certification 52 U Appraisal Purpose 4 Value Type Definitions 4 Assumptions and Limiting Conditions 54 �°, Appraisal Premise Definitions 4 Addenda E Property Rights Definitions 5 A. Appraiser Qualifications � Client and Intended User(s) 5 B. IRR Quality Assurance Survey w Intended Use 5 C. Property Information Applicable Requirements 5 D. Comparable Data = Report Format 5 Land Sales - As if developable with 346 Prior Services 5 residential units m Appraiser Competency 5 Land Sales - As if developable with 104 o Scope of Work 7 residential units c Economic Analysis 9 E. Engagement Letter Q. Collier County Area Analysis 9 Surrounding Area Analysis 16 r Property Analysis 20 v N Land Description and Analysis 20 Real Estate Taxes 27 Highest and Best Use 28 E Valuation 31 Valuation Methodology 31 Sales Comparison Approach 32 As if developable with 346 residential units (93.34 Acres; 4,065,890 SF) 32 Former Riviera Golf Course Land lirr Packet Pg. 1409 Quality Assurance 16.K.8.a Quality Assurance IRR Quality Assurance Program At IRR, delivering a quality report is a top priority. Integra has an internal Quality Assurance Program in which managers review material and pass an exam in order to attain IRR Certified Reviewer status By policy, every Integra valuation assignment is assessed by an IRR Certified Reviewer who holds the MAI designation, or is, at a minimum, a named Director with at least ten years of valuation experience. This quality assurance assessment consists of reading the report and providing feedback on its quality and consistency. All feedback from the IRR Certified Reviewer is then addressed internally prior to delivery. The intent of this internal assessment process is to maintain report quality. Designated IRR Certified Reviewer An internal quality assurance assessment was conducted by an IRR Certified Reviewer prior to delivery of this appraisal report. This assessment should not be construed as an appraisal review as defined by USPAP. Former Riviera Golf Course Land rrr Packet Pg. 1410 Executive Summary 16.K.8.a 2 Executive Summary Property Name Former Riviera Golf Course Land Address 164 Estelle Dr. Naples, Collier County, Florida 34112 Property Type Land - Other Owner of Record LA Minnesota Riviera, LLC Tax ID 70170160004 Legal Description RIVIERA COLONY GOLF ESTTR MAP TRACTS A, B, C & D, LESS Land Area 93.34 acres; 4,065,890 SF Zoning Designation Golf Course and Recreational Use District (GC) Highest and Best Use Residential use Exposure Time; Marketing Period 12 months; 12 months Date of the Report February 3, 2023 Value Conclusions Value Type&Appraisal Premise Interest Appraised DateofValue Value Conclusion MarketValueas if developable with 346 units Fee Simple Apri125,2022 $20,760,000 Ma rket Va I ue a s if devel opa bl e with 104 units Fee Simple Apri126,2022 $6,240,000 Diminution In Value April 26, 2022 $14,520,000 The values reported above a re subject to the definitions, assumptions, and limiting conditions set forth in the accompanying report ofwhich this summa ry is a part. No pa rty other than Coleman, Yovanovich & Koester may use or rely on the information, opinions, and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all ofthe definitions, assumptions, and limiting conditions contained therein. Extraordinary Assumptions and Hypothetical Conditions The value concl us ions are subject to the fol lowing extraordinary assumptions. An extraordinary assumption is 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. r 1. None C The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, N directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the M effective date of the assignment results, but is used for the purpose of analysis. r- 1. The before scenario is subject to the hypothetical condition that the property has been rezoned for 346 ILL: E residential units prior to the County's adoption of the Golf Course Conversion Ordinance mandating an M undevelopable buffer area between 75 - 100feet in width. U 2. The after scenario is subject to the hypothetical condition that the property has been rezoned for 104 residential i uni ts after the County's a dopti on of the Gol f Course Convers i on Ordi na nce mandatinganundevelopablebuffer = area between 75 - 100 feet in width. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. irr Former Riviera Golf Course Land Packet Pg. 1411 Identification of the Appraisal Problem 16.K.8.a 3 Identification of the Appraisal Problem Subject Description The subject of this appraisal is the former Riviera Golf Club. The 18-hole public course closed in 2022. The course was developed on +/-93.34 acres within the Riviera Golf Estates neighborhood. Riviera Golf Estates is a 55-plus community consisting of nearly 700 single-family homes, manufactured homes and condominiums. The subject is zoned Golf Course and Recreational Use District (GC) by Collier County. The subject has a future land use designation of Urban Residential. A legal description of the property is provided below. Property Identification Property Name Former Riviera Golf Course Land Address 164 Estelle Dr. Naples, Florida 34112 Tax ID 70170160004 Owner of Record LA Minnesota Riviera, LLC Legal Description RIVIERA COLONY GOLF ESTTR MAP TRACTS A, B, C & D, LESS THAT PORTION OF TRACT A DESC IN OR 1548 PG 337, LESS THAT PORTION OF TRACT B DESC IN OR 2021 PG 741 sa. a� Sale History r The most recent closed sale of the subject is summarized as follows: v N Sale Date March 4, 2005 c Sel I er RGC, LLC ii Buyer LA Minnesota Riviera, LLC Sale Price $4,800,000 U Recording Instrument Number 3753-1455 N L No known sales or transfers of ownership have taken place within a three-year period prior to the effective appraisal date. Pending Transactions Based on discussions with the appropriate contacts, the property is not subject to an agreement of sale or an option to buy, nor is it listed for sale, as of the effective appraisal date. Former Riviera Golf Course Land rrr Packet Pg. 1412 Identification of the Appraisal Problem 16.K.8.a 4 Appraisal Purpose The purpose of the appraisal is to develop the following opinion(s) of value: • The market value of the fee simple interest in the subject property as of the effective date of the appraisal, April 25, 2022, subject to the hypothetical condition that the property is developable with 346 residential units • The market value of the fee simple interest in the subject property as of the effective date of the appraisal, April 26, 2022, subject to the hypothetical condition that the property is developable with 104 residential units The diminution in value for the subject property as of the effective date of the appraisal, April 26, 2022 The date of the report is February 3, 2023. The appraisal is valid only as of the stated effective date or dates. Value Type Definitions The definitions of the value types applicable to this assignment are summarized below. Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; r 0 2. Both parties are well informed or well advised, and acting in what they consider their own N best interests; c 3. A reasonable time is allowed for exposure in the open market; U- 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements E comparable thereto; and c) 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.1 = t= Appraisal Premise Definitions m The definitions of the appraisal premises applicable to this assignment are specified as follows. As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.2 1 Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FIR 77449, December 10, 2010, page 77472 z Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) Former Riviera Golf Course Land irr Packet Pg. 1413 16.K.8.a Identification of the Appraisal Problem Property Rights Definitions The property rights appraised which are applicable to this assignment are defined as follows. Fee Simple Estate 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.' Client and Intended User(s) The client and intended user is La Minnesota Riviera, LLC. No other party or parties may use or rely on the information, opinions, and conclusions contained in this report. Intended Use The intended use of the appraisal is for The intended use of the appraisal is to assist the client with a potential Bert Harris Act claim. The appraisal is not intended for any other use. Applicable Requirements This appraisal report conforms to the following requirements and regulations: • Uniform Standards of Professional Appraisal Practice (USPAP); • Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute; • Applicable state appraisal regulations. Report Format r Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards Iq of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be N prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis used to develop the opinion of value. E Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. 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 the agreement to perform this assignment. Appraiser Competency No steps were necessary to meet the competency provisions established under USPAP. The assignment participants have appraised several properties similar to the subject in physical, locational, and economic characteristics, and are familiar with market conditions and trends; therefore, appraiser ' Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) Former Riviera Golf Course Land irr Packet Pg. 1414 Identification of the Appraisal Problem 16.K.8.a competency provisions are satisfied for this assignment. Appraiser qualifications and state credentials are included in the addenda of this report. Former Riviera Golf Course Land rrr Packet Pg. 1415 Scope of Work 16.K.8.a Scope of Work Introduction The appraisal development and reporting processes require gathering and analyzing information about the assignment elements necessary to properly identify the appraisal problem. The scope of work decision includes the research and analyses necessary to develop credible assignment results, given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. To determine the appropriate scope of work for the assignment, the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors were considered. The concluded scope of work is described below. Research and Analysis The type and extent of the research and analysis conducted are detailed in individual sections of the report. The steps taken to verify comparable data are disclosed in the addenda of this report. Although effort has been made to confirm the arms -length nature of each sale with a party to the transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable Inspection Details regarding the property inspection conducted as part of this appraisal assignment are summarized as follows: Property Inspection Party Inspection Type Inspection Date Carlton Lloyd, MAI On -site January 24, 2023 Valuation Methodology Three approaches to value are typically considered when developing a market value opinion for real property. These are the cost approach, the sales comparison approach, and the income capitalization approach. Use of the approaches in this assignment is summarized as follows: Approaches to Value Approach Applicabi I ity to Subject Use in Assignment Cost Approach Not Applicable Not Uti I ized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Not Applicable Not Utilized Former Riviera Golf Course Land rrr Packet Pg. 1416 Scope of Work 16.K.8.a 8 In developing an opinion of value for the subject, only the sales comparison approach is used. This approach is applicable to the subject because there is an active market for similar properties, and sufficient sales data is available for analysis. The cost approach is not applicable because there are no improvements that contribute value to the property, and the income approach is not applicable because the subject is not likely to generate rental income in its current state. Former Riviera Golf Course Land rrr Packet Pg. 1417 Collier County Area Analysis 9 16.K.8.a Economic Analysis Collier County Area Analysis Collier County is located in southwestern Florida approximately 90 miles west of Miami. It is 1,998 square miles in size and has a population density of 200 persons per square mile. Population Collier County has an estimated 2022 population of 399,007, which represents an average annual 1.8% increase over the 2010 census of 321,520. Collier County added an average of 6,457 residents per year over the 2010-2022 period, and its annual growth rate exceeded the State of Florida rate of 1.3%. Looking forward, Collier County's population is projected to increase at a 1.1% annual rate from 2022- 2027, equivalent to the addition of an average of 4,554 residents per year. Collier County's growth rate is expected to exceed that of Florida, which is projected to be 0.9%. Population Trends Population Compound Ann. % Chng 2010 Census 2022 Estimate 2027 Proiection 2010-2022 2022 - 2027 Collier County 321,520 399,007 421,777 1.8% 1.1% Florida 18,801,310 21,976,313 22,982,383 1.3% 0.9% Source: CI a rita s Employment Total employment in Collier County was estimated at 143,535 jobs as of June 2021. Between year-end 2011 and 2021, employment rose by 20,575 jobs, equivalent to a 16.7% increase over the entire period. There were gains in employment in eight out of the past ten years, with losses in 2020 and 2021 influenced by the COVID-19 pandemic. Although Collier County's employment rose over the last decade, it underperformed Florida, which experienced an increase in employment of 17.5% or 1,286,010 jobs over this period. A comparison of unemployment rates is another way of gauging an area's economic health. Over the past decade, the Collier County unemployment rate has been generally lower than that of Florida, with an average unemployment rate of 5.8% in comparison to a 6.1% rate for Florida. A lower unemployment rate is a positive indicator. Recent data shows that the Collier County unemployment rate is 13.5% in comparison to a 13.2% rate for Florida, a negative sign that is consistent with the fact that Collier County has underperformed Florida in the rate of job growth over the past two years. Former Riviera Golf Course Land rrr Packet Pg. 1418 Collier County Area Analysis 16. K.8.a 10 Employment Trends Total Employment (Year End) Unemployment Rate (Ann. Avg.) Year Collier County Change Florida Change Collier County Florida 2011 122,960 7,368,030 10.1% 10.0% 2012 125,704 2.2% 7,538,166 2.3% 8.7% 8.6% 2013 131,115 4.3% 7,741,539 2.7% 7.4% 7.5% 2014 137,819 5.1% 8,012,496 3.5% 6.1% 6.5% 2015 143,261 3.9% 8,314,343 3.8% 5.3% 5.5% 2016 150,204 4.8% 8,542,086 2.7% 4.7% 4.9% 2017 150,670 0.3% 8,718,087 2.1% 4.2% 4.3% 2018 155,804 3.4% 8,907,904 2.2% 3.5% 3.6% 2019 158,943 2.0% 9,094,742 2.1% 3.3% 3.3% 2020 149,994 -5.6% 8,664,195 -4.7% 7.0% 7.8% 2021* 143,535 -4.3% 8,654,040 -0.1% 3.7% 4.7% Overall Change 2011-2021 20,575 16.7% 1,286,010 17.5% Avg Unemp. Rate 2011-2021 5.8% 6.1% Unemployment Rate -April 2022 13.5% 13.2% *Total employment data is as of June 2021; unemployment rate data reflects the average of 12 months of 2021. Source: U.S. Bureau of Labor Statistics and Moody's Ana Iytics. Employment figures are from the Quarterly Census of Employment and Wages (QCEW). Unemployment rates are from the Current Population Survey (CPS). The figures are not season I I adjusted. Employment Sectors The composition of the Collier County job market is depicted in the following chart, along with that of Florida. Total employment for both areas is broken down by major employment sector, and the sectors are ranked from largest to smallest based on the percentage of Collier County jobs in each category. r Employment Sectors - 2021 O� 0% 5% 10% 15% 20% 25% 041 Trade; Transportation; and Utilities Leisure and Hospitality Education and Health Services Construction Professional and Business Services Government Financial Activities Other Services Manufacturing Natural Resources & Mining Information Source: U.S. Bureau of Labor Statistics and Moody's Ana I yti cs ■ Collier County ■ Florida Former Riviera Golf Course Land rrr Packet Pg. 1419 Collier County Area Analysis 16.K.8.a 11 Collier County has greater concentrations than Florida in the following employment sectors: 1. Leisure and Hospitality, representing 18.6% of Collier County payroll employment compared to 13.0% for Florida as a whole. This sector includes employment in hotels, restaurants, recreation facilities, and arts and cultural institutions. 2. Education and Health Services, representing 15.7% of Collier County payroll employment compared to 15.1% for Florida as a whole. This sector includes employment in public and private schools, colleges, hospitals, and social service agencies. 3. Construction, representing 12.3% of Collier County payroll employment compared to 6.6% for Florida as a whole. This sector includes construction of buildings, roads, and utility systems. 4. Other Services, representing 4.3% of Collier County payroll employment compared to 3.0% for Florida as a whole. This sector includes establishments that do not fall within other defined categories, such as private households, churches, and laundry and dry cleaning establishments. Collier County is underrepresented in the following sectors: 1. Trade; Transportation; and Utilities, representing 19.1% of Collier County payroll employment = compared to 20.8% for Florida as a whole. This sector includes jobs in retail trade, wholesale trade, trucking, warehousing, and electric, gas, and water utilities. °a 0 r 2. Professional and Business Services, representing 12.0% of Collier County payroll employment y compared to 16.5% for Florida as a whole. This sector includes legal, accounting, and 0 CL engineering firms, as well as management of holding companies. L 3. Government, representing 6.1% of Collier County payroll employment compared to 11.0% for r Florida as a whole. This sector includes employment in local, state, and federal government agencies. N 4. Financial Activities, representing 6.1% of Collier County payroll employment compared to 7.0% for Florida as a whole. Banking, insurance, and investment firms are included in this sector, as are real estate owners, managers, and brokers. E Major Employers Major employers in Collier County are shown in the following table. Former Riviera Golf Course Land rrr Packet Pg. 1420 Collier County Area Analysis 16.K.8.a 12 Major Employers - Collier County Name Number of Employees 1 NCH Healthcare System 7,017 2 Collier County School District 5,604 3 Collier County Local Government 5,119 4 Publix Super Market 3,083 5 Arthrex, Inc 2,500 6 Walmart 1,480 7 Ritz Carlton -Naples 1,450 8 City of Naples 1,169 9 Physicians Regional 950 10 Moorings Park 888 Source: Southwest Florida Economic Dvel opment AI I i ance Gross Domestic Product Gross Domestic Product (GDP) is a measure of economic activity based on the total value of goods and services produced in a defined geographic area, and annual changes in Gross Domestic Product (GDP) are a gauge of economic growth. Economic growth, as measured by annual changes in GDP, has been considerably higher in Collier U County than Florida overall during the past ten years. Collier County has grown at a 3.2% average annual rate while Florida has grown at a 2.3% rate. Collier County experienced a decline in GDP in the c recent downturn but fared better than Florida. The area's GDP dropped by 2.0% in 2020 while C Florida's GDP dropped by 2.8%. GDP figures for 2021 are not yet available at the local level, but GDP 9), on a national level increased 5.7% in 2021, in contrast to the pandemic -related decrease of 3.4% in r 2020. v N Collier County has a capita GDP of $44,675, which is 2% than Florida's GDP of $43,765. This per greater means that Collier County industries and employers are adding relatively more value to the economy ii than their counterparts in Florida. E M U Gross Domestic Product to ($,0005) ($,0005) Year Collier County % Change Florida % Change = 2011 13,234,254 772,021,300 2012 13,416,369 1.4% 778,545,000 0.8% m 2013 13,859,448 3.3% 794,842,100 2.1% 2014 14,600,582 5.3% 817,233,500 2.8% 2015 15,509,481 6.2% 852,242,400 4.3% 2016 16,477,877 6.2% 881,539,200 3.4% 2017 16,698,069 1.3% 912,966,200 3.6% L) 2018 17,643,609 5.7% 943,463,400 3.3% O r 2019 17,915,539 1.5% 971,619,200 3.0% N 2020 17,555,943 -2.0% 944,000,800 -2.8% Compound % Chg (2011-2020) 3.2% 2.3% J GDP Per Capita 2020 $44,675 $43,765 +� C Source: U.S. Bureau of Economic Analysis and Moody's Ana Iytics; data released December 2021. The release of state and local GDP d data has a longer lag time than national data. The data represents inflation -adjusted ""real"" GDP stated in 2012 dollars. E Former Riviera Golf Course Land Cerr.: Packet Pg. 1421 Collier County Area Analysis 16.K.8.a 13 Household Income Collier County is more affluent than Florida. Median household income for Collier County is $81,946, which is 25.2% greater than the corresponding figure for Florida. Median Household Income - 2022 Median Collier County $81,946 Florida $65,445 Comparison of Collier County to Florida + 25.2% Source: CI a rita s The following chart shows the distribution of households across twelve income levels. Collier County has a greater concentration of households in the higher income levels than Florida. Specifically, 54% of Collier County households are at the $75,000 or greater levels in household income as compared to 44% of Florida households. A lesser concentration of households is apparent in the lower income levels, as 20% of Collier County households are below the $35,000 level in household income versus 26% of Florida households. Household Income Distribution - 2022 $500,000 and more $250,000 - 499,999 $200,000 - $249,999 $150,000 - $199,999 $125,000 - $149,999 $100,000 - $124,999 $75,000 - $99,999 $50,000 - $74,999 $35,000 - $49,999 $25,000 - $34,999 $15,000 - $24,999 Less than $15,000 0.0% 5.0% 10.0% 15.0% ■ Collier County ■ Florida Source: Claritas 20.0% Education and Age Residents of Collier County have a higher level of educational attainment than those of Florida. An estimated 36% of Collier County residents are college graduates with four-year degrees, versus 30% of Former Riviera Golf Course Land irr Packet Pg. 1422 Collier County Area Analysis 16.K.8.a 14 Florida residents. People in Collier County are older than their Florida counterparts. The median age for Collier County is 53 years, while the median age for Florida is 43 years. Education & Age - 2022 Percent College Graduate 80% 70% 60% 50% 40% 30% 20% 10% Collier County Florida Source: Claritas Conclusion 50 45 40 35 30 25 20 15 10 Median Age Collier County Florida The Collier County economy will benefit from a growing population base and higher income and education levels. Collier County experienced growth in the number of jobs and has maintained a generally lower unemployment rate than Florida over the past decade. It is anticipated that the Collier County economy will improve and employment will grow, strengthening the demand for real estate. Former Riviera Golf Course Land rrr Packet Pg. 1423 Collier County Area Analysis 16. K.8.a 15 Area Map Hf ples Park Pelican Marsh klsland Walk Pelican Bay North Naples Maples Former Riviera Golf Course Land !, Wheyards Golden Gate $erks�rireLakes� - - - T r' P..r0RD S'rk TES Picayune Strand hely Wildlife Management Area Naples Manor Verona Walk Lely Rescrt Picayune Strand Forest 9OYjgE SOUTFr ® 1D23 Microsoft Corporation 0 2021 TomTm lirr Packet Pg. 1424 Collier County Area Analysis 16.K.8.a 16 Surrounding Area Analysis The subject is located along Estelle Drive, just north of Rattlesnake Hammock Road and east of Tamiami Trail East within the East Naples submarket in Collier County. Area boundaries and delineation are indicated in the following table. A map identifying the location of the property follows this section. Boundaries & Delineation Boundaries MarketArea Col I i er Cou nty Submarket EastNaples Area Type Suburban Del i neati on North Davis Boulevard South Rattlesnake Hammock Road East County Barn Road West ETamiami Trail Riviera Golf Estates The subject is within the Riviera Golf Estates development. Riviera Golf Estates is a 55-plus community consisting of nearly 700 single-family homes, manufactured homes and condominiums. Based on the r MLS, pricing for single family homes generally range from $400,000 to $600,000. Pricing for manufactured homes range from $150,000 to $299,000. Condo pricing range from $205,000 to N $265,000. Access and Linkages Primary access and linkages to the subject area, including highways, roadways, public transit, traffic counts, and airports, are summarized in the following table. Former Riviera Golf Course Land rrr Packet Pg. 1425 16.K.8.a Collier County Area Analysis 17 Access & Linkages Vehicular Access Major Highways Primary Corridors Vehicular Access Rating Interstate 75 Tamiami Trail, Davis Boulevard, Rattlesnake Hammock Average Public Transit Providers Transit Access Rating Collier Area Transit Average Airports) Name Distance DrivingTime Naples Airport <6 15 minutes Primary Transportation Mode Demand Generators The typical generators of demand affecting the subject property and its market are discussed and analyzed below. Nearby Retail Uses The nearest shopping facilities serving the area are Naples Towne Center located west of the subject `o and The Shops at Hammock Cove, located west of the subject. They offer basic convenience goods and CL personal services. The closest regional mall is Coastland Center Mall located about 6.2 miles from the property. Restaurants, principally along major arterials, such as Davis Boulevard, Rattlesnake c Hammock Road and E Tamiami Trail, are within a 5-15-minute travel time of the property. The closest N lodging facilities are located within a 15-minute drive of the subject and include WoodSpring Suites Naples West. Demographic Factors A demographic profile of the surrounding area, including population, households, and income data, is presented in the following table. Former Riviera Golf Course Land rrr Packet Pg. 1426 Collier County Area Analysis 16.K.8.a 18 Surrounding Area Demographics 2022 Estimates 1-Mile Radius 3-Mile Radius 5-Mile Radius Collier County Florida Population 2010 7,153 57,507 100,503 321,520 18,801,310 Population 2022 7,620 65,845 120,104 399,007 21,976,313 Population 2027 7,861 68,961 125,798 421,777 22,982,383 Compound %Change 2010-2022 0.5% 1.1% 1.5% 1.8% 1.3% Compound % Change 2022-2027 0.6% 0.9% 0.9% 1.1% 0.9% Households 2010 3,834 25,199 42,524 133,179 7,420,802 Households 2022 4,143 29,184 51,430 166,516 8,659,093 Households 2027 4,289 30,659 54,039 176,416 9,056,800 Compound % Change 2010-2022 0.6% 1.2% 1.6% 1.9% 1.3% Compound %Change 2022-2027 0.7% 1.0% 1.0% 1.2% 0.9% Median Household Income 2022 $69,833 $66,134 $70,067 $81,946 $65,445 Average Household Size 1.8 2.2 2.3 2.4 2.5 College Graduate % 32% 31% 32% 36% 30% Median Age 69 56 53 53 43 Owner Occupied % 85% 71% 69% 72% 67% Renter Occupied % 15% 29% 31% 28% 33% Median Owner Occupied Housing Value $279,242 $307,386 $350,783 $433,069 $290,276 Median Year Structure Built 1988 1991 1993 1996 1988 Average Travel Time to Work in Minutes 23 24 25 28 31 Source: Claritas As shown above, the current population within a 3-mile radius of the subject is 65,845, and the average household size is 2.2. Population in the area has grown since the 2010 census, and this trend is projected to continue over the next five years. Compared to Collier County overall, the population within a 3-mile radius is projected to grow at a slower rate. Median household income is $66,134, which is lower than the household income for Collier County. Residents within a 3-mile radius have a lower level of educational attainment than those of Collier N County, while median owner -occupied home values are considerably lower. Services and Amenities The subject is served by the Collier County school district. The nearest public services, including police and fire departments, as well as public schools are summarized in the following table. Public Services Driving Distance Service Name/Station (Miles) Direction Police Department Collier Sheriff's Department <5 West Fire Department Greater Naples Fire Station 21 <5 South Hospital Physician's Regional <5 East Elementary School Calusa Park Elementary <5 NE Middle/Junior High School East Naples Middle <5 NW High School Lely High <5 South Former Riviera Golf Course Land rrr Packet Pg. 1427 Collier County Area Analysis 16.K.8.a 19 The closest colleges and universities are FGCU, Rasmussen College, Hodges University and Keiser University. They offer various continuing education programs. Proximity to parks, golf courses, and other recreational activities is average. Outlook and Conclusions Given the economic and demographic profile of this segment of the market the outlook for this area is expected to remain positive over the long term, with some uncertainty in the near term due to the impact of the COVID-19 Pandemic, inflation, and geopolitical tension. Surrounding Area Map n: R ti I 2 s nN ouc+e o > 0 ;lfrl f'JSi� School Q - � Gnus Rd M Wendy Lnm .filcGdry7p ♦ efr aley Dr ce w ood aka Whitaker Rd ountry Club t �, Riuiera Golf Cynthia Ln Ka Club al. , a�P Naples', hllars2ltr tc4e Rrwa1 s L A G O V E R D E * n in,, II � 7 m U ��{d rent Or ,�tr RfVIERA GOLF OahuZ), ESTATES @�° � e �rNiaui Mans Pr +� Royal Wood g `�51es 0 bed Chrclo o� zPN1eOSy rdM C� .� Jewelwood Ln nni Golf and Cr 4 e9tQ r Tah+t' } t V Frywoad Ln C in LA rtt e CIV � lihdLr g Versa, KDIJywoodLn cu 3 qi dI M Glenwood Ln pi`a ,�fe it c ., °yer 4: 4 M m { Driftwcpd Ln ttr Oil MISr'MR ti m. Menton trl L I I CottanwCOd Ln 6ir -1 3 N ❑ EP1.M1ofL10 orporatiort02721 TamTrm Former Riviera Golf Course Land tr Packet Pg. 1428 16.K.8.a Land Description and Analysis 20 a� N Property Analysis 0 0 Land Description and Analysis A) Land Description Land Area 93.34 acres; 4,065,890 SF += 3 Source of Land Area Public Records c Primary Street Frontage Estelle Shape Irregular c Corner No 0 0 Topogra phy Rolling Drainage No problems reported or observed E Environmental Hazards None reported or observed Ground Stability No problems reported or observed w L Flood Area Panel Number 12021C0601H c`o Date May 16, 2012 x Zone AH m Description Within 100-yea r fl oodpl a i n $ Insurance Required? Yes y c Zoning; Other Regulations Q. Zoning Jurisdiction Collier County i Zoning Designation Golf Course and Recreational Use District (GC) r Description The purpose and intent of "GC" district is to provide lands for golf Legally Conforming? Appears to be legally conforming N Zoni ng Cha nge Li kel y? Yes Permitted Uses Golf courses, hikin trails, walkways, multi -use paths and observation g Y p ii decks, passive recreation areas and disc golf. E Other Land Use Regulations Collier County FLU: Urban Residential Subdistrict U Utilities Mn�L Servi ce Provider c`o Water Collier County x Sewer Collier County m Electricity FPL Local Phone Multiple Carriers r' We are not experts in the interpretation of zoning ordinances. An appropriately qualified land use attorney should be engaged if a determination of compliance with zoning is required. Future Land Use The subject is designated as Urban Residential Subdistrict by Collier County Future Land Use Element. The purpose of this Subdistrict is to provide for higher densities in an area with fewer natural resource Former Riviera Golf Course Land irr Packet Pg. 1429 Land Description and Analysis 16.K.8.a 21 constraints and where existing and planned public facilities are concentrated. This Subdistrict comprises approximately 93,000 acres and 80% of the Urban Mixed Use District. Maximum eligible residential density shall be determined through the Density Rating System but shall not exceed 16 dwelling units per acre except in accordance with the Transfer of Development Rights Section of the Land Development Code. Easements, Encroachments and Restrictions A preliminary title report/ title policy prepared by Chicago Title Insurance Company dated October 07, 2021 was provided. The report identifies exceptions to title, which include various utility and access easements that are typical for a property of this type. Such exceptions would not appear to have an adverse effect on value. This valuation assumes no adverse impacts from easements, encroachments or restrictions and further assumes that the subject has clear and marketable title. Conclusion of Site Analysis Overall, the physical characteristics and the availability of utilities result in a functional site, suitable for a variety of uses including those permitted by zoning and the future land use. Uses permitted by the current zoning include golf courses, hiking trails, walkways, multi -use paths and observation decks, passive recreation areas and disc golf. Uses permitted by the requested rezoning include residential development in accordance with the Future Land Use element of the Collier County Growth Management Plan. No other restrictions on development are apparent. Former Riviera Golf Course Land irr Packet Pg. 1430 {+ - .'.. � �}� �� 1� fir,! � 1' -� � � "l�_s?` •��'�• ik M.Nh !:, Al .� �. �� .sp � � . •s r �� � '� e . _ �' Ge a yl,. Y e fit•' ' � ' �' A g' yL.. � � � � y, lM K� I Irk 06 12 LA VON -is 94 Yam; ra. * r I �+'4a . ,� +#• +.} Hii f i'l �' E 1 d�' _ r�.-. '• •..�w�r �ia� T rim_ -.�.1 pis Land Description and Analysis 16.K.8.a 23 Zoning Map BaseZoning c Zoning General OUT V DISTRICT Agricultural E Civic and Institutional y L ■ Commercial L = Incorporated 0 m Area L Industrial C PP open Space 0 0 Planned Unit Development d J M Residential c Former Riviera Golf Course Land irr Packet Pg. 1432 Land Description and Analysis 16. K.8.a 24 Future Land Use Map Former Riviera Golf Course Land irr Packet Pg. 1433 Cop 4W, wi I rrll F LF1 r Congfelplii ak United Collier ePro r Count Ne k, m ayftower s Office Cur& Faith Apostolic Church` r 6,, n lltl We,ndy Ln- Sh o vvbcLat Stabile's L L C 0. Av C)4Miu Lrl K" ppn om lk V., A Lr' t4 At 1095 16 1 - iiAt IL ch 00yard Land Description and Analysis 16. K.8.a 26 (Photo Taken on January 24, 2023) (Photo Taken on January 24, 2023) (Photo Taken on January 24, 2023) Former Riviera Golf Course Land (Photo Taken on January 24, 2023) (Photo Taken on January 24, 2023) (Photo Taken on January 24, 2023) rrr Packet Pg. 1435 16.K.8.a Real Estate Taxes 27 Real Estate Taxes Real estate tax assessments are administered by Collier County and are estimated by jurisdiction on a countywide basis. Real estate taxes in this state and this jurisdiction represent ad valorem taxes, meaning a tax applied in proportion to value. The real estate taxes for an individual property may be determined by dividing the assessed value by 1,000 and then multiplying the estimate by a composite rate. The composite rate is based on a consistent tax rate throughout the state in addition to one or more local taxing district rates. The assessed values are based upon the current conversion assessment of the Collier County Property Appraiser's market value. State law requires that all real property be re -valued each year. The millage rate is generally finalized in October of each year, and tax bills are generally received in late October or early November. The gross taxes are due by March 31" of the following year. If the taxes are paid prior to November 301", the State of Florida allows a 4% discount for early payment. The discount then becomes 3% if paid by December 31St, 2% if paid by January 31s', and 1% if paid by February 28t". After March 31s', the taxes are subject to late penalties and interest. Real estate taxes and assessments for the current tax year are shown in the following table. Taxes and Assessments - 2022 Assessed Value Taxes and Assessments Ad Valorem Tax ID Land Improvements Total Tax Rate Taxes Direct Assessments Total 70170160004 $1,039,227 $234,346 $1,273,573 1.096320% $13,962 $0 $13,962 Former Riviera Golf Course Land irr Packet Pg. 1436 16.K.8.a Highest and Best Use 28 Highest and Best Use The highest and best use of a property is the reasonably probable use resulting in the highest value, and represents the use of an asset that maximizes its productivity. Process Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as though vacant, and as improved or proposed. By definition, the highest and best use must be: • Physically possible. • Legally permissible under the zoning regulations and other restrictions that apply to the site • Financially feasible. • Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses. As Though Vacant First, the property is evaluated as though vacant, with no improvements. Physically Possible N The physical characteristics of the site do not appear to impose any unusual restrictions on o development. Overall, the physical characteristics of the site and the availability of utilities result in ,CL functional utility suitable for a variety of uses. L r O Legally Permissible v The site is zoned Golf Course and Recreational Use District (GC). The purpose and intent of "GC" N district is to provide lands for golf courses, recreational uses, and normal accessory uses, including certain uses of a commercial nature. Recreational uses should be compatible in scale and manner with residential land uses. The GC district shall be in accordance with the urban mixed use district and the agricultural/rural mixed use district of the future land use element of the Collier County GMP. Uses c) permitted by the current zoning include golf courses, hiking trails, walkways, multi -use paths and A •L observation decks, passive recreation areas and disc golf. Uses permitted by the requested rezoning include residential development in accordance with the Future Land Use element of the Collier County Growth Management Plan. There are no apparent legal restrictions, such as easements or deed m restrictions, effectively limiting the use of the property. Given prevailing land use patterns in the area, ;v only residential use is given further consideration in determining highest and best use of the site as rezoned, as though vacant. 0 U Financially Feasible ° 0 Based on the accompanying analysis of the market, there is currently adequate demand for residential use in the subject's area. It appears a newly developed residential use on the site would have a value commensurate with its cost. Therefore, residential use is considered to be financially feasible. Former Riviera Golf Course Land irr Packet Pg. 1437 Highest and Best Use 16.K.8.a 29 Maximally Productive There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than residential use. Accordingly, residential use, developed to the normal market density level permitted by zoning, is the maximally productive use of the property. Conclusion Development of the site for residential use is the only use which meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as though vacant. As Improved Riviera Golf Club is a defunct 18-hole public course. The course closed in 2022. Typical improvements include a clubhouse, maintenance building, etc. The improvements are in below average condition. We have examined 10 sales of similar golf courses throughout Florida since January 2020. The following table summarizes each sale. Improved Sales Adjustment Grid Su 'M Can rablel Comparable2 Cam rable3 Comparable 4 Connrable5 Cam arable6 Co arable] Cornrable8 Cam arable9 Conn rablel0 Property Nam FormaPo era J."'. Belch Golf Oebary Golf Royal OakGolf The Club at hunter's Creek Golf Nor tildale Golf& Decal Golf and Tatum Ndge Gdf Victoria Hills Golf Na mrmck Creek Golf Course land Club County Club Dub Venetian Bay Club Tends Club County Club licks Club G.if Dub Andress 164 CRel le Dr. 3969 NW. Royal 300 Plardad an 2150 Country Dub 63 N. A rport PG. 14401 spats Dub 4417 Northdale 4312 Chcal Blvd. 421 Tatum Rd. 300 Spalding Way 2400SW.Golden Oak Dr Dub Dr. Dr. Way BIW. Bear Way City Naples Jemn Beach Debary Tito Wile New Smyrna Beach Orlando Tampa Wt] Sarasota Deland Palm City County Collie Martin FL &card Vdusia Orange Hillsborough ISllsborough S rasota Vdosia Martin state Florida FL FL FL FL FL FL FL FL FL FL Sale Gate Jun-22 Aug-21 Jun-22 Aug-22 Aug-20 Feb-20 Apr-20 Ds-20 Feb-20 Feb-20 Sale Sdbe Closed Onsed Closed Closed Closed Closed Dosed Closed Closed Dosed SalePdce $3.750,000 $2,900,000 $4,500A00 $4,500,000 $2,625,000 $2,520,000 $3,900,000 $2$44A00 $1,910,000 $3,300p00 BBective Ale Pdce $3,750,000 $2,900,000 $4,500A00 $4,500A00 $2,625400 $2S20A00 $3,900,000 $2,944,OW $2,910,000 $3,60D,W0 Gross Building Mc - 21542 17,803 22,305 22,524 19,968 19,580 46,158 19,492 26,700 23p83 Rntade FlourArn - 21,542 17,803 22,305 22,524 18,170 1%024 31,567 16,025 26,700 22ASS Number of Units 18 IB 18 18 18 18 IS IB IB 18 18 Y—Built - 1999 1966 2W8 1996 1978 1996,'88, 11,& 1988 2W1 1996 '93 Price perUnit $208,333 1$161,111 50,001) s2so.000 1$145.833 1$140,000 1j216,667 1$163,556 1$100,556 $200,00) 4 of All Prices $100SS6-$2S0,0W AveceR $J83.606 Indicated Value $250,000 The sales reflect a range of $100,556 - $250,000 per hole. As a test of Highest and best use we will apply the upper end of the range. Highest And Best Use Test Indicated Value per Unit $250,000 Subject Units 18 Indicated Value $4,500,000 Rounded $4,500,000 As we will discuss in this report the value indication as developable for residential use indicated a significantly higher land value. Accordingly, the highest and best use is to redevelop the site for residential use. Former Riviera Golf Course Land rrr Packet Pg. 1438 Highest and Best Use 16.K.8.a 30 Most Probable Buyer Taking into account the characteristics of the site, as well as area development trends, the probable buyer is a developer. Former Riviera Golf Course Land rrr Packet Pg. 1439 16.K.8.a Valuation Methodology 31 Valuation Valuation Methodology Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach. The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties. The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner -user properties. The income capitalization approach reflects the market's perception of a relationship between a property's potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income -producing properties. Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type. The methodology employed in this assignment is summarized as follows: Approaches to Value Approach Applicabi I ity to Subject Use in Assignment Cost Approach Not Applicable Not Uti I ized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Not Applicable Not Utilized Former Riviera Golf Course Land irr Packet Pg. 1440 Sales Comparison Approach 16.K.8.a 32 Sales Comparison Approach To develop an opinion of the subject's land value, as though vacant and available to be developed to its highest and best use, the sales comparison approach is used. This approach develops an indication of value by researching, verifying, and analyzing sales of similar properties. We will first analyze the property as if developable with 346 residential units under the proposed rezoning. We will then analyze the property as if developable with 104 residential units under the current rezoning restrictions. The difference in the two values is the diminution in value. As if developable with 346 residential units (93.34 Acres; 4,065,890 SF) To apply the sales comparison approach, the research focused on transactions within the following parameters: • Location: Collier County. • Size: Most similar comparables available. • Use: Low density residential (Apartment land sales were excluded). • Transaction Date: 2020 — through effective date. For this analysis, price per unit is used as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. The most relevant sales are summarized in the following table: Former Riviera Golf Course Land rrr Packet Pg. 1441 16. K.8.a Sales Comparison Approach 33 Summary of Comparable Land Sales - As if developable with 346 residential units Units; SaIeDate; Effective Sa I e SF; Density No. Name/Address Status Price Acres (Units/Ac.) Zoning $/Unit $/Acre 1 The Is I e of Col I ier Preserve Phase 3 Feb-22 $10,000,000 4,461,415 230 PUD $43,478 $97,637 8000 Bayshore Dr. Closed 102.42 2.2 Naples Comments: This is the sale of 5 parcels totaling 102.42-acres located along Bayshore Drive in East Naples. These parcels sold to Minto Sabal Bay, LLC. in February of 2022 for $10,000,000. This acquisition is part of the thi rd phase of The Isles of Col I ier Preserve. It is reported that more than half of the land wi I I remain as lakes and nature preserves with pla nned development of approximately 230 homesites. I n January 2021, Coll ier County commissioners approved Minto's plan to build 230 more housing units in The Isles, which stretches west from U.S.41 East to Bayshore Drive. Commissioners voted 4-1 on an ordinance to a mend the county's land development code to al low the development of the new homes a long Bayshore Drive south of Thomasson Drive in the Sabal Bay mixed -use planned unit development. Acquisition of the property was contingent upon acquiring entitlements for the property, which includes the rezoning, South Florida Water Management District, Army Corps of Engineers. Rezoned from agricultural and RSF3 to PUD. 2 Oil Well Road Land Dec-21 $35,000,000 14,650,099 685 MUPD $51,095 $104,068 123 Oil Well Rd. Closed 336.32 2.0 Naples Comments: This is the sale of 336.32-acres of vacant residential Land located along Oil Well Road in Naples, Florida. This property sold to Pulte Home Company, L-C. in December of 2021 for $35,000,000. Purchased for development of 685 single-family homes. 3 Ventana Pointe Sep-20 $4,620,000 1,621,303 77 RPUD $60,000 $124,127 103341mmokaleeRd. Closed 37.22 2.1 Naples Comments: On September 17th, 2020, RJH II, LLC sold 37.22 acres of land located at Immokalee Rd and Richards Streetto Pulte Home Company. This slated to be the future site of Ventana Pointe, a 77 unit si ngle fami ly home development. This was a cash sale. 4 Tamarindo Sep-20 $13,025,000 4,636,526 266 PUD $48,966 $122,369 North Of Saba IDrive Closed 106.44 2.5 Naples Comments: On September 18, 2020 DR Horton purchased the Tamarindo project from Watermen at Rockedge LLC. Tamiarindo is located atthe northeast quadrant of Collier Boulevard and Sabal Palm Drive. DR Horton plans a 266 unit single family residential community. Subject 4,065,890 346 Residential Former Riviera Golf Course Land 93.34 3.7 Naples, FL Former Riviera Golf Course Land irr Packet Pg. 1442 Sales Comparison Approach 16. K.8.a 34 Comparable Land Sales Map — As if developable with 346 residential units Springs Ave N �' 51 4llLf4 RCS11 1 0rargetrz:� %I Herita& Bay Naples Park Pelican Marsbr Island Walk Pelican Bay _ Vineyards I Golden Gate BeriCshire sake �,.�—� -Naples - I �+ r,•�— 4:R=ERI-OR D �ES7F,TE5 4D 4D Picayune Strand L21y � Wildlife Management #Fea Naples Manor Verona Walk Lely Resort Former Riviera Golf Course Land 14 Dir 7Vllf'�pp. �frin� V?2'6 i'az.i ��ICfO561i 4ffY0y3i�OC s7rc5 T4mTom' lirr Packet Pg. 1443 Sales Comparison Approach 16. K.8.a 35 Sale 1 The Isle of Collier Preserve Phase 3 Sale 3 Ventana Pointe Sale 2 Oil Well Road Land Sale 4 Tamarindo Former Riviera Golf Course Land irr Packet Pg. 1444 16.K.8.a Sales Comparison Approach 36 Analysis and Adjustment of Sales Adjustments are based on a rating of each comparable sale in relation to the subject. The adjustment process is typically applied through either quantitative or qualitative analysis, or a combination of both analyses. Quantitative adjustments are often developed as dollar or percentage amounts, and are most credible when there is sufficient data to perform a paired sales analysis. While percentage adjustments are presented in the adjustment grid, they are based on qualitative judgment rather than empirical research, as there is not sufficient data to develop a sound quantitative estimate. Although the adjustments appear to be mathematically precise, they are merely intended to illustrate an opinion of typical market activity and perception. With the exception of market conditions, the adjustments are based on a scale, with a minor adjustment in the range of 1- 5% and a substantial adjustment considered to be 20% or greater. The rating of each comparable sale in relation to the subject is the basis for the adjustments. If the comparable is superior to the subject, its sale price is adjusted downward to reflect the subject's relative attributes; if the comparable is inferior, its price is adjusted upward. Transactional adjustments are applied for property rights conveyed, financing, conditions of sale, expenditures made immediately after purchase, and market conditions. In addition, property adjustments include — but are not limited to — location, access/exposure, size, quality, effective age, economic and legal characteristics, and non -realty components of value. Adjustments are considered for the following factors, in the sequence shown below. Transactional Adjustments r Real Property Rights Conveyed v The opinion of value in this report is based on a fee simple estate, subject only to the limitations N imposed by the governmental powers of taxation, eminent domain, police power and escheat, as well as non -detrimental easements, community facility districts, and conditions, covenants and restrictions M (CC&Rs). All the comparables represent fee simple estate transactions. Therefore, adjustments for E property rights are not necessary. i Financing Terms In analyzing the comparables, it is necessary to adjust for financing terms that differ from market terms. Typically, if the buyer retained third -party financing (other than the seller) for the purpose of purchasing the property, a cash price is presumed and no adjustment is required. However, in instances where the seller provides financing as a debt instrument, a premium may have been paid by the buyer for below -market financing terms, or a discount may have been demanded by the buyer if the financing terms were above market. The premium or discounted price must then be adjusted to a cash equivalent basis. The comparable sales represented cash -to -seller transactions and, therefore, do not require adjustment. Conditions of Sale Adverse conditions of sale can account for a significant discrepancy from the sale price actually paid, compared to that of the market. This discrepancy in price is generally attributed to the motivations of Former Riviera Golf Course Land rrr Packet Pg. 1445 Sales Comparison Approach 16.K.8.a 37 the buyer and the seller. Certain conditions of sale are considered non -market and may include the following: • a seller acting under duress (e.g., eminent domain, foreclosure); • buyer motivation (e.g., premium paid for assemblage, certain 1031 exchanges); • a lack of exposure to the open market; • an unusual tax consideration; • a sale at legal auction. None of the comparable sales had atypical or unusual conditions of sale. Thus, adjustments are not necessary. Expenditures Made Immediately After Purchase This category considers expenditures incurred immediately after the purchase of a property. There were no issues of deferred maintenance reported for any of the properties. No adjustments are required for expenditures after sale. Market Conditions A market conditions adjustment is applied when market conditions at the time of sale differ from market conditions as of the effective date of value. Adjustments can be positive when prices are rising, or negative when markets are challenged by factors such as a deterioration of the economy or adverse changes in supply and/or demand in the market area. Consideration must also be given to when the property was placed under contract, versus when the sale actually closed. r In evaluating market conditions, changes between the comparable sale date and the effective date of this appraisal may warrant adjustment; however, if market conditions have not changed, then no N adjustment is required. The sales took place from September 2020 to February 2022. Real estate fundamentals have been improving over this period through the effective date. Below we have summarized the average and median single family home sale price in Collier County from 2018 to 2021. Both the average and median sales prices have increased during that period. Residential trends continued to improve during the 1st quarter of 2022. MILS Sales Trends Year Average Sale Price %Change Median Sale Price %Change 2018 $805,840 $435,000 2019 $783,731 -3% $422,000 -3% 2020 $902,621 15% $480,000 14% 2021 $1,144,771 27% $615,000 28% We have also surveyed sale and resales of various land parcels throughout Southwest Florida. Former Riviera Golf Course Land irr Packet Pg. 1446 16.K.8.a Sales Comparison Approach 38 Market Conditions Survey Name Address City Land Type Sale Date Price Sale Date Price Total %Change Shire CPD 13461 Shire LN Fort Myers Commercial Feb-21 $1,700,000 Apr-22 $2,275,000 33,82% Downtown Naples Mixed Use 333 8th St Naples Mixed Use Dec-21 $6,500,000 May-22 $12,000,000 84.62% Site Treeline Land 12171 Treeline Ave Fort Myers Mixed Use Sep-19 $5,050,000 Jan-21 $7,500,000 48.51% Jetport Commerce La nd 13770 Jetport Commerce Fort Myers Industrial Oct-20 $1,100,000 Mar-21 $1,300,000 18.18% This data indicates market conditions adjustments of up to 84% since 2021. We have applied a conservative upward adjustment of 15% per year. Property Adjustments Location Factors considered in evaluating location include, but are not limited to, demographics, growth rates, surrounding uses and property values. Sales 1 and 4 are similar to the subject. No adjustments are necessary. Sale 3 is adjusted downward for its superior North Naples location. Sale 2 is adjusted upward for inferior location in Eastern Collier County distant from demand centers. Access/Exposure °' m Convenience to transportation facilities, ease of site access, and overall visibility of a property can $ have a direct impact on property value. High visibility, however, may not translate into higher value if y it is not accompanied by good access. In general, high visibility and convenient access, including 0 CL proximity to major linkages, are considered positive amenities when compared to properties with inferior attributes. r O All of the comparables are similar to the subject. No adjustments are necessary. N Size Due to economies of scale, the market exhibits an inverse relationship between land area and price per square foot, such that larger sites generally sell for a lower price per square foot than smaller lots, all else being equal. To account for this relationship, applicable adjustments are applied for differences in land area. The comparables that are larger than the subject are adjusted upward, and vice versa. No adjustments are evident from the comparable set. Shape and Topography This category accounts for the shape of the site influencing its overall utility and/or development potential, as well as the grade of the land. All of the comparables are similar to the subject. No adjustments are necessary. Zoning This element of comparison accounts for government regulations that can affect the types and intensities of uses allowable on a site. Moreover, this category includes considerations such as Former Riviera Golf Course Land rrr Packet Pg. 1447 Sales Comparison Approach 16.K.8.a 39 allowable density or floor area ratio, structure height, setbacks, parking requirements, landscaping, and other development standards. An upward adjustment was applied to comparable 1 as the buyer was responsible for rezoning costs The remaining comparables are like the subject. No adjustments are necessary. Density Typically, lower density sites sell for a higher price per unit, while higher density sites sell for a lower price per unit. The comparable are generally similar and no adjustment was applied. Adjustments Summary The sales are compared to the subject and adjusted to account for material differences that affect value. The following table summarizes the adjustments applied to each sale. Former Riviera Golf Course Land rrr Packet Pg. 1448 Sales Comparison Approach 16.K.8.a 40 Land Sales Adjustment Grid - As if developable with 346 residential units Subject Comparable Comparable Comparable Comparable4 Name Former Riviera The Isle of Collier Oil Well Road Land Ventana Pointe Tamarindo Golf Course Land Preserve Phase 3 Address 164 Estelle Dr. 8000 Bayshore Dr. 123 Oil Well Rd. 10334 Immokalee North Of Saba Rd. Drive City Naples Naples Naples Naples Naples County Collier Collier Collier Collier Collier State Florida FL FL FL FL SaIeDate Feb-22 Dec-21 Sep-20 Sep-20 Sale Status Closed Closed Closed Closed Sale Price $10,000,000 $35,000,000 $4,620,000 $13,025,000 Price Adjustment — — — — Description of Adjustment Effective Sale Price $10,000,000 $35,000,000 $4,620,000 $13,025,000 Square Feet 4,065,890 4,461,415 14,650,099 1,621,303 4,636,526 Acres 93.34 102.42 336.32 37.22 106.44 Number of Units 346 230 685 77 266 Units Per Acre 3.71 2.25 2.04 2.00 2.50 Price per Unit $43,478 $51,095 $60,000 $48,966 Transactional Adjustments Property Rights Fee Simple Fee Simple Fee Simple Fee Simple % Adjustment — — — — FinancingTerms All cash Cashtoseller-buyer Cash to seller Cash/Equivalent obtained financing % Adjustment — — — — Conditions of Sale % Adjustment — — — — Expenditures Made Immediately After Purchase $ Adjustment — — — Market Conditions 4/25/2022 Feb-22 Dec-21 Sep-20 Sep-20 Annual %Adjustment 15% 3% 6% 24% 24% Cumulative Adjusted Price $44,783 $54,161 $74,400 $60,718 Property Adjustments Location — 10% -10% — Access/Exposure — — — — Size — — — — Shape and Topography — — — — Zoning 15% — — — Density — — — — Net Property Adjustments ($) $6,717 $5,416 -$7,440 $0 Net Property Adjustments (%) 15% 10% -10% 0% Final Adjusted Price $51,500 $59,577 $66,960 $60,718 Range of Adjusted Prices Indicated Value $51,500 - $66,960 $60,000 Former Riviera Golf Course Land rrr Packet Pg. 1449 Sales Comparison Approach 16.K.8.a 41 Land Value Conclusion — As if developable with 346 residential units Prior to adjustments, the sales reflect a range of $43,478 - $60,000 per unit. After adjustment, the range is narrowed to $51,500 - $66,960 per unit, with an average of $59,689 per unit. Based on the subject's location a unit value near the average is indicated. Based on the preceding analysis, the land value conclusion for the subject is presented as follows: Land Value Conclusion Indicated Value per Unit $60,000 Subject Units 346 Indicated Value $20,760,000 Rounded $20,760,000 Former Riviera Golf Course Land rrr Packet Pg. 1450 Sales Comparison Approach 16.K.8.a 42 As if developable with 104 residential units (93.34 Acres; 4,065,890 SF) To apply the sales comparison approach, the research focused on transactions within the following parameters: • Location: Collier County. • Size: Most similar comparables available. • Use: Residential (Multifamily sales were excluded). • Transaction Date: 2020 — through effective date. For this analysis, price per unit is used as the appropriate unit of comparison. The most relevant sales are summarized in the following table. Summary of Comparable Land Sales - As if developable with 104 residential units Sale Date; SF; No. Name/Address Status Effective Sale Price Acres Zoning $/Unit $/Acre 1 The Isle of Collier Preserve Feb-22 $10,000,000 4,461,415 PUD $43,478 $97,637 8000 Bayshore Dr. Closed 102.42 Naples Comments: This is the sale of 5 parcels totaling 102.42-acres located along Bayshore Drive in East Naples. These parcels sold to Minto Sabal Bay, LLC. in February of 2022 for $10,000,000. This acquisition is part of the third phase of The Isles of Collier Preserve. It is reported that more than half of the land will remain as lakes and nature preserves with planned development of approximately 230 homesites. In January 2021, Collier County commissioners approved Minto's plan to build 230 more housing units in The Isles, which stretches west from U.S. 41 East to Bayshore Drive. Commissioners voted 4-1 on an ordinance to amend the county's land development code to allow the development of the new homes along Bayshore Drive south of Thomasson Drive in the Sabal Bay mixed -use planned unit development. Acquisition of the property was contingent upon acquiring entitlements for the property, which includes the rezoning, South Florida Water Management District, Army Corps of Engineers. Rezoned from agricultural and RSF3 to PUD. 2 Oil Well Road Land Dec-21 $35,000,000 14,650,099 MPUD $51,095 $104,068 123 Oil Well Rd. Closed 336.32 Naples Comments: This is the sale of 336.32-acres of vacant residential Land located along Oil Well Road in Naples, Florida. This property sold to Pulte Home Company, LLC. in December of 2021 for$35,000,000. Purchased for development of 685 single-family homes 3 Ventana Pointe Sep-20 $4,620,000 1,621,303 RPUD $60,000 $124,127 10334 1 mmoka I ee Rd. Closed 37.22 Naples Comments: On September 17th, 2020, RJH 11, LLC sold 37.22 acres of land located at Immokalee Rd and Richards Street to Pulte Home Company. This slated to be the future site of Ventana Pointe, a 77 unit single family home development. This was a cash sale. 4 Tamarindo Sep-20 $13,025,000 4,636,526 RPUD $48,966 $122,369 North OfSabal Drive Closed 106.44 Naples Comments: On September 18, 2020 DR Horton purchased the Tamarindo project from Watermen at Rockedge LLC. Tamiarindo is located at the northeast quadrant of Collier Boulevard and Sabal Palm Drive. DR Horton plans a 266 unit single family residential community. Subject 4,065,890 Residential Former Riviera Golf Course 93.34 r O N Former Riviera Golf Course Land irr Packet Pg. 1451 Sales Comparison Approach 16. K.8.a 43 Comparable Land Sales Map — As if developable with 104 residential units __ Springs Ave N 4 _ �' 51 4llLf4 RCS11 1 0rargetrz:� %I Herita& Bay Naples Park Pelican Marsbr Island Walk Pelican Bay _ Vineyards I Golden Gate BeriCshire sake �,.�—� -Naples - I �+ r,•�— 4:R=ERI-OR D �ES7F,TE5 4D 4D Picayune Strand L21y � Wildlife Management #Fea Naples Manor Verona Walk Lely Resort Former Riviera Golf Course Land 14 Dir 7Vllf'�pp. �frin� V?2'6 i'az.i ��ICfO561i 4ffY0y3i�OC s7rc5 T4mTom' lirr Packet Pg. 1452 Sales Comparison Approach 16. K.8.a 44 Sale 1 The Isle of Collier Preserve Phase 3 Sale 3 Ventana Pointe Sale 2 Oil Well Road Land Sale 4 Tamarindo Former Riviera Golf Course Land irr Packet Pg. 1453 16.K.8.a Sales Comparison Approach 45 Analysis and Adjustment of Sales Transactional Adjustments Real Property Rights Conveyed The opinion of value in this report is based on a fee simple estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat, as well as non -detrimental easements, community facility districts, and conditions, covenants and restrictions (CC&Rs). All the comparables represent fee simple estate transactions. Therefore, adjustments for property rights are not necessary. Financing Terms In analyzing the comparables, it is necessary to adjust for financing terms that differ from market terms. Typically, if the buyer retained third -party financing (other than the seller) for the purpose of purchasing the property, a cash price is presumed and no adjustment is required. However, in instances where the seller provides financing as a debt instrument, a premium may have been paid by the buyer for below -market financing terms, or a discount may have been demanded by the buyer if the financing terms were above market. The premium or discounted price must then be adjusted to a cash equivalent basis. The comparable sales represented cash -to -seller transactions and, therefore, do not require adjustment. Conditions of Sale y c Adverse conditions of sale can account for a significant discrepancy from the sale price actually paid, Q. compared to that of the market. This discrepancy in price is generally attributed to the motivations of the buyer and the seller. Certain conditions of sale are considered non -market and may include the r following: v N • a seller acting under duress (e.g., eminent domain, foreclosure); • buyer motivation (e.g., premium paid for assemblage, certain 1031 exchanges); • a lack of exposure to the open market; • an unusual tax consideration; • a sale at legal auction. None of the comparable sales had atypical or unusual conditions of sale. Thus, adjustments are not necessary. Expenditures Made Immediately After Purchase This category considers expenditures incurred immediately after the purchase of a property. There were no issues of deferred maintenance reported for any of the properties. No adjustments are required for expenditures after sale. Market Conditions A market conditions adjustment is applied when market conditions at the time of sale differ from market conditions as of the effective date of value. Adjustments can be positive when prices are rising, Former Riviera Golf Course Land irr Packet Pg. 1454 16.K.8.a Sales Comparison Approach 46 or negative when markets are challenged by factors such as a deterioration of the economy or adverse changes in supply and/or demand in the market area. Consideration must also be given to when the property was placed under contract, versus when the sale actually closed. In evaluating market conditions, changes between the comparable sale date and the effective date of this appraisal may warrant adjustment; however, if market conditions have not changed, then no adjustment is required. The sales took place from September 2020 to February 2022. Real estate fundamentals have been improving over this period through the effective date. Below we have summarized the average and median single family home sale price in Collier County from 2018 to 2021. Both the average and median sales prices have increased during that period. Residential trends continued to improve during the 15Y quarter of 2022. MLS Sales Trends Year Average Sale Price %Change Median Sale Price %Change N 2018 $805,840 $435,000 2019 $783,731 -3% $422,000 -3% _ 2020 $902,621 15% $480,000 14% m 2021 $1,144,771 27% $615,000 28% 0 r W N We have also surveyed sale and resales of various land parcels throughout Southwest Florida. o a as Market Conditions Survey L Name Address City Land Type Sale Date Price Sale Date Price Total %Change r � Shire CPD 13461 Shire LN Fort Myers Commercial Feb-21 $1,700,000 Apr-22 $2,275,000 33,82% Downtown Naples Mixed Use 333 8th St Naples Mixed Use Dec-21 $6,500,000 May-22 $12,000,000 84.62% N Site v Treeline Land 12171 Treeline Ave Fort Myers Mixed Use Sep-19 $5,050,000 Jan-21 $7,500,000 48.51% Jetport Commerce La nd 13770 Jetport Commerce Fort Myers Industrial Oct-20 $1,100,000 Mar-21 $1,300,000 18.18% Based on the forgoing, an upward adjustment of 15% per year was applied. Property Adjustments Location Factors considered in evaluating location include, but are not limited to, demographics, growth rates, surrounding uses and property values. Sales 1 and 4 are similar to the subject. No adjustments are necessary. Sale 3 is adjusted downward for its superior North Naples location. Sale 2 is adjusted upward for inferior location in Eastern Collier County distant from demand centers Access/Exposure Convenience to transportation facilities, ease of site access, and overall visibility of a property can have a direct impact on property value. High visibility, however, may not translate into higher value if it is not accompanied by good access. In general, high visibility and convenient access, including Former Riviera Golf Course Land rrr Packet Pg. 1455 Sales Comparison Approach 16.K.8.a 47 proximity to major linkages, are considered positive amenities when compared to properties with inferior attributes. All of the comparables are similar to the subject. No adjustments are necessary. Size Due to economies of scale, the market exhibits an inverse relationship between land area and price per square foot, such that larger sites generally sell for a lower price per square foot than smaller lots, all else being equal. To account for this relationship, applicable adjustments are applied for differences in land area. The comparables that are larger than the subject are adjusted upward, and vice versa. No adjustments are evident from the comparable set Shape and Topography This category accounts for the shape of the site influencing its overall utility and/or development potential, as well as the grade of the land. All of the comparables are similar to the subject. No adjustments are necessary. Zoning r a� This element of comparison accounts for government regulations that can affect the types and intensities of uses allowable on a site. Moreover, this category includes considerations such as Q. allowable density or floor area ratio, structure height, setbacks, parking requirements, landscaping, i and other development standards. r O An upward adjustment was applied to comparable 1 as the buyer was responsible for rezoning costs. N The remaining comparables are like the subject. No adjustments are necessary. Density Typically, lower density sites sell for a higher price per unit, while higher density sites sell for a lower price per unit. The comparable are generally similar and no adjustment was applied Adjustments Summary The sales are compared to the subject and adjusted to account for material differences that affect value. The following table summarizes the adjustments applied to each sale. Former Riviera Golf Course Land rrr Packet Pg. 1456 Sales Comparison Approach 16.K.8.a 48 Land Sales Adjustment Grid - As if developable with 104 residential units Subject Comparable Comparable Comparable Comparable Name Former Riviera The Isle of Collier Oil Well Road Land Ventana Pointe Tamarindo Golf Course Land Preserve Phase 3 Address 164 Estelle Dr. 8000 Bayshore Dr. 123 Oil Well Rd. 10334 1 mmoka I ee Rd. North Of Sabal Drive city Naples Naples Naples Naples Naples County Collier Collier Collier Collier Collier State Florida FL FL FL FL Sale Date Feb-22 Dec-21 Sep-20 Sep-20 SaIeStatus Closed Closed Closed Closed Sale Price $10,000,000 $35,000,000 $4,620,000 $13,025,000 Price Adjustment — — — Description of Adjustment Effective Sale Price $10,000,000 $35,000,000 $4,620,000 $13,025,000 SquareFeet 4,065,890 4,461,415 14,650,099 1,621,303 4,636,526 Acres 93.34 102.42 336.32 37.22 106.44 Number of Units 104 230 685 77 266 Units Per Acre 11.11 2.25 2.04 2.00 2.50 Price per Unit $43,478 $51,095 $60,000 $48,966 Transactional Adjustments Property Rights Fee Simple Fee Simple Fee Simple Fee Simple %Adjustment — — — — FinancingTerms All cash Cash to seller - buyer Cash to seller Cash/Equivalent obtained financing %Adjustment — — — — Conditions of5ale %Adjustment — — — — Expenditures Made Immediately After Purchase $ Adjustment — — — Market Conditions 4/25/2022 Feb-22 Dec-21 Sep-20 Sep-20 Annual %Adjustment 15% 3% 6% 24% 24% Cumulative Adjusted Price $44,783 $54,161 $74,400 $60,718 Property Adjustments Location — 10% -10% — Access/Exposure — — — — Size — — — — Shape and Topography — — — — Zoning 15% — — — Density — — — — Net Property Adjustments ($) $6,717 $5,416 -$7,440 $0 Net Property Adjustments(%) 15% 10% -10% 0% Final Adjusted Price $51,500 $59,577 $66,960 $60,718 Range of Adjusted Prices Indicated Value $51,500 - $66,960 $60,000 r O N Former Riviera Golf Course Land rrr Packet Pg. 1457 Sales Comparison Approach 16.K.8.a 49 Land Value Conclusion — As if developable with 104 residential units Prior to adjustments, the sales reflect a range of $43,478 - $60,000 per unit. After adjustment, the range is narrowed to $51,500 - $66,960 per unit, with an average of $59,689 per unit. Based on the subject's location a unit value near the average is indicated. Based on the preceding analysis, the land value conclusion for the subject is presented as follows: Land Value Conclusion Indicated Value per Unit $60,000 Subject Units 104 Indicated Value $6,240,000 Rounded $6,240,000 Summary of Land Values Based on this analysis, the individual values as follows: Summary of Land Values Indicated Unit of Value per Indicated Parcel Comparison Units Unit Value Rounded As if developable with 346 residential units Units 346 $60,000 $20,760,000 $20,760,000 As if developable with 104 residential units Units 104 $60,000 $6,240,000 $6,240,000 Former Riviera Golf Course Land rrr Packet Pg. 1458 16.K.8.a Reconciliation and Conclusion of Value 50 Reconciliation and Conclusion of Value As discussed previously, only the sales comparison approach is used to develop an opinion of value for the subject. The cost and income approaches are not applicable, and are not used. Based on the preceding valuation analysis and subject to the definitions, assumptions, and limiting conditions expressed in the report, the concluded value opinion follows: Value Conclusions Parcel Interest Appraised Date of Value Value Conclusion As if developable with 346 residential units Fee Simple Apri125,2022 $20,760,000 As if developable with 104 residential units Fee Simple April 26,2022 $6,240,000 Given these values, and the assumptions contained herein, the diminution in value is estimated as follows. Dimunition In Value As if developable with 346 residential units $20,760,000 As if developable with 104 residential units $6,240,000 Dimunition In Value As Of April 26, 2022 $14,520,000 Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, c if found to befalse, could alter the appraiser's opinions or conclusions. N 1. None .. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, S 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. 1. The before scenario is subject to the hypothetical condition that the property has been rezoned for 346 residential units prior to the County's adoption of the Golf Course Conversion Ordinance mandating an undevelopable buffer area between 75 - 100feet in width. 2. The after scenario is subject to the hypothetical condition that the property has been rezoned for 104 residential units after the County's adoption of the Golf Course Conversion Ordinance mandating an undevelopable buffer area between 75 - 100 feet in width. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results The value conclusion(s) in this report consider the impact of COVID-19 on the subject property. The opinions of value expressed in this report are based on estimates and forecasts that are prospective in nature and subject to considerable risk and uncertainty. Events may occur that could cause the performance of the property to differ materially from the stated estimates, such as changes in the economy, interest rates, capitalization rates, financial strength of tenants, and behavior of Former Riviera Golf Course Land rrr Packet Pg. 1459 Reconciliation and Conclusion of Value 16.K.8.a 51 investors, lenders, and consumers. Additionally, these opinions and forecasts are based partly on data obtained from interviews and third -party sources, which are not always completely reliable. Although the findings are considered reasonable based on available evidence, the assignment participants are not responsible for the effects of future occurrences that cannot reasonably be foreseen at this time. Exposure Time Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Based on the concluded market values stated previously, the probable exposure time is 12 months. Marketing Period Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. The subject's marketing period is estimated at 12 months. Former Riviera Golf Course Land rrr Packet Pg. 1460 Certification 16.K.8.a 52 Certification We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. 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. 4. 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 the agreement to perform this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or r_ 0 reporting of a predetermined value or direction in value that favors the cause of the client, the C amount of the value opinion, the attainment of a stipulated result, or the occurrence of a L subsequent event directly related to the intended use of this appraisal. c 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, N in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. Carlton Lloyd, MAI has made a personal inspection of the property that is the subject of this report. 12. No one provided significant real property appraisal assistance to the person signing this certification. 13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. Former Riviera Golf Course Land rrr Packet Pg. 1461 Certification 16.K.8.a 53 14. As of the date of this report, Carlton Lloyd, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. C;44 Car on Lloyd, MAI Florida State Certified General RE Appraiser #RZ2618 Former Riviera Golf Course Land lirr Packet Pg. 1462 Assumptions and Limiting Conditions 16.K.8.a 54 Assumptions and Limiting Conditions This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report: 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal and any other work product related to this engagement are subject to the following L limiting conditions, except as otherwise noted in the report: r O 1. An appraisal is inherently subjective and represents our opinion as to the value of the N property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. E 3. No changes in any federal, state or local laws, regulations or codes (including, without c) limitation, the Internal Revenue Code) are anticipated. L 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal Former Riviera Golf Course Land rrr Packet Pg. 1463 Assumptions and Limiting Conditions 16.K.8.a 55 covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report. 11. Information, estimates and opinions contained in the report and obtained from third -party c sources are assumed to be reliable and have not been independently verified.Iq N 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. to E ii 13. If the property is subject to one or more leases, any estimate of residual value contained in E the appraisal may be particularly affected by significant changes in the condition of the i U economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. L x 14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only m the real property has been considered. 15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. v 16. The values found herein are subject to these and to any other assumptions or conditions set 0 forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. _J 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic M Former Riviera Golf Course Land rrr Packet Pg. 1464 Assumptions and Limiting Conditions 16.K.8.a 56 conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner's financial ability with the cost to cure the non- conforming physical characteristics of a property, a specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR - Southwest Florida, Integra Realty Resources, Inc., and their respective officers, owners, managers, directors, agents, subcontractors or employees (the "Integra Parties"), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 22. We are not a building or environmental inspector. The Integra Parties do not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. IRR - Southwest Florida is an independently owned and operated company. The parties hereto agree that Integra shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR - Southwest Florida. In addition, it is expressly 0 v N Former Riviera Golf Course Land rrr Packet Pg. 1465 Assumptions and Limiting Conditions 16.K.8.a 57 agreed that in any action which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly agreed that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the assignment (unless the appraisal was fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. IRR - Southwest Florida is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer -seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 28. The appraisal is also subject to the following: r O v N Former Riviera Golf Course Land rrr Packet Pg. 1466 Assumptions and Limiting Conditions 16.K.8.a 58 Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to befalse, could alter the appraiser's opinions or conclusions. 1. None The value conclusions are based on the following hypothetical conditions. A hypothetical condition is 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. 1. The before scenario is subject to the hypothetical condition that the property has been rezoned for 346 residential units prior to the County's adoption of the Golf Course Conversion Ordinance mandatingan undevelopable buffer area between 75 - 100feet in width. 2. The after scenario is subject to the hypothetical condition that the property has been rezoned for 104 residential units after the County's adoption of the Golf Course Conversion Ordinance mandatingan undevelopable buffer area between 75 -100 feet in width. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. Former Riviera Golf Course Land rrr Packet Pg. 1467 Addenda 16. K.8.a Addendum A Appraiser Qualifications Former Riviera Golf Course Land rrr Packet Pg. 1468 16.K.8.a Carlton J. Lloyd, MAI Experience Senior Managing Director of Integra Realty Resources Southwest Florida Actively engaged in real estate valuation since 1995. Territories include Collier, Lee, Charlotte, Sarasota, Manatee, Broward, Palm Beach, Miami -Dade, Monroe, Desoto and Hendry Counties. Experienced in Residential Developments (PUDs & Condominiums), Multifamily apartments, Low Income Housing, (LIHTC), office buildings, restaurants, commercial retail centers, industrial warehouse properties, self storage, hotels, net leased properties and subdivisions. Specialty experience includes marina, golf courses and country clubs, and orange groves. Clients include, but are not limited to: federally insured lenders, developers, investors, law firms, mortgage banking firms, local, state, and federal agencies, and individuals. Valuations have been performed for condemnation purposes, estates, financing, equity participation and due diligence and litigation support. Valuations and market studies have been done on proposed, partially completed, renovated and existing structures. Professional Activities & Affiliations Appraisal Institute, Member (MAI) Appraisal Institute, Member (#406018), August 2008 Licenses Florida, State Certified General RE Appraiser, RZ2618, Expires November 2024 Colorado, Certified General Appraiser, CG.200002335, Expires December 2024 North Carolina, State Certified RE Appraiser, A8292, Expires June 2023 New York, State Certified RE Appraiser, 46000053058, Expires October 2024 Education Carlton graduated with a Bachelor Of Arts Degree from the State University of N.Y. at Albany in 1989. Recent real estate courses include : Introduction to Green Buildings: Principles & Concepts, September 7, 2022 Valuation of Donated Real Estate, Including Conservation Easements, June 25, 2020 Transferred Value, June 10, 2020 7-Hour National USPAP Update Course, June 8, 2020 Florida Law Update 2020, June 2, 2020 Appraising Automobile Dealerships Sept 1, 2018 Managing Unusual Appraisal & Litigation Assignments 06/12/2018 Online Business Practices and Ethics 06/08/2018 7-Hour National USPAP Update Course 04/12/2018 Online Real Estate Finance Statistics and Valuation Modeling 06/15-07/15/2016 Reviewing Residential Appraisals and Using Fannie Mae Form 2000 06/01-07/01/2016 Residential Sales Comparison and Income Approach 08/15-09/29/2014 Feasibility, Market Value, Investment Timing: Option Value 08/15-09/14/2012 Fundamentals of Separating Real Property, Personal Property, and Intangible Business clloyd@irr.com - 239.687.5801 Integra Realty Resources - Southwest Florida 2770 Horseshoe Drive S Suite 3 Naples, FL 34104 T 239.643.6888 F 239.643.6871 irr.com Packet Pg. 1469 16.K.8.a Carlton J. Lloyd, MAC I Integra Realty Resources - Southwest Florida Education (Cont'd) 2770 Horseshoe Drive S i Assets 02/29 03/01/2012 Suite 3 Naples, FL 34104 O O U The Appraiser as an Expert Witness: Preparation & Testimony 06/04-05/2009 ,- Condemnation Appraising: Principles & Applications 05/06-08/2009 O Online Small Hotel/Motel Valuation 11/01-12/01/2008 T 239.643.6888 C9 Online Analyzing Distressed Real Estate 10/15-11/14/2008 F 239.643.6871 L Online Condominiums, Co-ops and PUDs 10/15-11/14/2008 > Online Appraising From Blueprints and Specifications 09/15-10/15/2006 irr.com R Online Analyzing Operating Expenses 08/15-09/14/2006 Online Small Hotel/Motel Valuation 08/15-09/14/2006 3 Report Writing and Valuation Analysis 07/11-17/2004 O Advanced Applications 03/08-13/2004 v Highest & Best Use and Market Analysis 10/06-11/2003 Advanced Sales Comparison & Cost Approaches 10/28-11/02/2002 c Advanced Income Capitalization 02/07-13/2002 General Applications 03/19-25/2001 Standards of Professional Practice, Part B 08/30/2000 E Standards of Professional Practice, Part A (USPAP) 08/28-29/2000 tv Basic Income Capitalization 08/15-21/1999 v N �L Qualified Before Courts & Administrative Bodies L = State Certified General Real Estate Appraiser in Florida, Colorado, New York and North Carolina. O m Qualified as an expert witness in U.S. Federal Bankruptcy Court, US District Court -Tampa, Collier O County Circuit Court, Lee County Circuit Court and the Tax Appeals Board of Lee County y N C O Q N N L O N O C LL E U N •L L 2 M� W L Y O U O r L J C d V irr Q clloyd@irr.com - 239.687.5801 Packet Pg. 1470 16. K.8.a STATE OF FLORIDA C)EPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL 13D 'I HE CFRT'RED GENERAL APPRAISER HEREIN ISCERTIFIED LIVDFR THE PROVISIONS OF. CHAPFER 475. FLORIDA STATUTES YZ LLOYD, CARLTON J 277OFIORSESHOE DRIVES + SUITZ 3 •� NAPLES FL34104 _LICENSF NJU M9 ER_ MM8 EXPIRATION DATE: P40VEM13ER 34.2024 aiw.y, V-irs.ikenseo onik+r at MvFlurklaLlccnse,com Oo not alter this docomcntin any form. Inn is your tlom". It is unlawwl Nor anyona other than the licensee to use tMt docutnenc. Packet Pg. 1471 16.K.8.a About IRR Integra Realty Resources, Inc. (IRR) provides world -class commercial real estate valuation, counseling, and advisory services. Routinely ranked among leading property valuation and consulting firms, we are now the largest independent firm in our industry in the United States, with local offices coast to coast and in the Caribbean. IRR offices are led by MAI-designated Senior Managing Directors, industry leaders who have over 25 years, on average, of commercial real estate experience in their local markets. This experience, coupled with our understanding of how national trends affect the local markets, empowers our clients with the unique knowledge, access, and historical perspective they need to make the most informed decisions. Many of the nation's top financial institutions, developers, corporations, law firms, and government agencies rely on our professional real estate opinions to best understand the value, use, and feasibility of real estate in their market. Local Expertise... Nationally! irr.com irr Packet Pg. 1472 Addenda 16. K.8.a Addendum 6 IRR Quality Assurance Survey Former Riviera Golf Course Land rrr Packet Pg. 1473 Addenda 16.K.8.a IRR Quality Assurance Survey We welcome your feedback! At IRR, providing a quality work product and delivering on time is what we strive to accomplish. Our local offices are determined to meet your expectations. Please reach out to your local office contact so they can resolve any issues. Integra Quality Control Team Integra does have a Quality Control Team that responds to escalated concerns related to a specific assignment as well as general concerns that are unrelated to any specific assignment. We also enjoy hearing from you when we exceed expectations! You can communicate with this team by clicking on the link below. If you would like a follow up call, please provide your contact information and a member of this Quality Control Team will call contact you. Link to the IRR Quality Assurance Survey: quality.irr.com Former Riviera Golf Course Land rrr Packet Pg. 1474 Addenda 16. K.8.a Addendum C Property Information Former Riviera Golf Course Land rrr Packet Pg. 1475 *Chicago Title Insurance Company 16.K.8.a Transaction Identification Data for reference only: Coleman, Yovanovich & Koester, P.A. 4001 Tamiami Trail North, Suite 300, Naples, FL 34103 ALTA Universal ID: LOAN ID Number: Issuing Office File Number: 16583.001 (Use for AgentTRAX documents) Property Address: 164 Estelle Dr. Naples, FL 34112 Order No.: 9932911 Revision Number: Chicago Title Insurance Company SCHEDULE A AMERICAN LAND TITLE ASSOCIATION COMMITMENT 1. Commitment Date: 10/07/2021 at: 8:00 AM 2. Policy or Policies to be issued: A. ALTA Owners 2006 with Florida Modifications Proposed Insured: Collier County, a political subdivision of the State of Florida Proposed Amount of Insurance: $1,000.00 3. The estate or interest in the Land described or referred to in this Commitment is (Identify estate covered, i.e., fee, leasehold, etc.): Fee Simple and Easement c v 4. Title to the Fee Simple and Easement estate or interest in the land is at the Commitment =' Date vested in: Fa La Minnesota Riviera, LLC, a Minnesota limited liability company 5. The Land is described as follows in Exhibit "A" attached hereto and made part hereof. Countersigned: BY: Authorized Officer or Agent This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and Schedule B, Part II - Exceptions C165C09 ALTA Commitment (8/1/2016) (with FL Modifications) 1 of 7 Packet Pg. 1476 *Chicago Title Insurance Company 16.K.8.a Order Number: 9932911 16583.001 SCHEDULE B SECTION I REQUIREMENTS AMERICAN LAND TITLE ASSOCIATION COMMITMENT The following requirements must be met: 1. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions. 2. Pay the agreed amount for the estate or interest to be insured. 3. Pay the premiums, fees, and charges for the Policy to the Company. 4. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records. A. Duly executed Warranty Deed from La Minnesota Riviera, LLC, a Minnesota limited liability company, Grantor, to Collier County, a political subdivision of the State of Florida, Grantee, conveying the land described on Exhibit A hereof. The Company will require the following as to La Minnesota Riviera, LLC, a Minnesota limited liability company: ("LLC"): i. Proof that the LLC was in existence in its state of organization at the time it acquired title and that the LLC is currently in good standing. ii. Present for review a true and complete copy of the articles of organization and operating agreement of the LLC and any amendments thereto. r iii. Record an affidavit from the person executing the proposed deed on behalf of the LLC certifying: 0 (a) the name and state of organization of the LLC; (b) whether the LLC is member -managed or N manager -managed; (c) the identity of the member or manager and the person authorized to execute the deed; and (d) neither the LLC nor any member signing the deed have filed bankruptcy c since the LLC acquired title. M iv. If the member or manager of the LLC is also a business entity, present proof of the entity's good standing and the appropriate entity documents to establish signing authority. If the proposed deed will be executed by anyone other than a member or manager, those portions of the operating agreement or other documentation evidencing the authority of the signatory must be attached as an exhibit to the affidavit. 5. Proof of payment of any outstanding assessments in favor of Collier County, Florida, any special taxing district and any municipality. NOTE: If this requirement is not satisfied the following exception will appear on Schedule B: Any outstanding assessments in favor of Collier County, Florida, any special taxing district and any municipality. 6. Proof of payment of service charges for water, sewer, waste and gas, if any, through the date of E closing. NOTE: If this requirement is not met the following exception will appear on Schedule B: E U r r a This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and 2 of 7 Schedule B, Part II - Exceptions C156C09 ALTA Commitment (8/1/2016) (with FL Modifications) Packet Pg. 1477 16.K.8.a *Chicago Title Insurance Company Order Number:16 SCHEDULE B SECTION I Requirements continued a� N Any lien provided for by Florida Statutes in favor of any city, town, village or port authority for unpaid service charges for service by any water, sewer, waste or gas system supplying the insured land or service facilities. 7. Satisfaction of that certain Mortgage given by LA Minnesota Riviera, LLC, a Minnesota limited liability company in favor of Minnwest Bank Ortonville dated February 28, 2005, recorded March 15, 2005, in Official Records Book 3753, Page 1458, securing a Note in the principal amount of $3,840,000.00. 8. Satisfaction of that certain Mortgage given by LA Minnesota Riviera, LLC, in favor of John F. Poepl, dated August 4, 2016, recorded August 16, 2016, in Official Records Book 5304, Page 2853, securing a Note in the principal amount of $1,300,000.00. Note: The original promissory note secured by the above described mortgage (being held by a non - institutional mortgagee) must be produced and cancelled. 9. The insured amount(s) under the Proposed Policy(ies) must be furnished in order for this Commitment to become effective. This Commitment is subject to further requirements and/or exceptions that may be deemed necessary. Note: Real property taxes for year 2021 are not yet payable until November 1, 2021. If the agent closes the transaction contemplated herein on or after November 1, 2021 then the real property taxes should be collected and paid at closing. NOTE: 2020 Real Property Taxes in the gross amount of $14,607.14 are paid. Homestead Exemption: No. Tax I.D. 70170160004. END OF SCHEDULE B SECTION I This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and Schedule B, Part II - Exceptions C165C09 ALTA Commitment (8/1/2016) (with FL Modifications) 3 of 7 Packet Pg. 1478 *Chicago Title Insurance Company 16.K.8.a Order No.: 9932911 16583.001 SCHEDULE B SECTION II EXCEPTIONS AMERICAN LAND TITLE ASSOCIATION COMMITMENT THIS COMMITMENT DOES NOT REPUBLISH ANY COVENANT, CONDITION, RESTRICTION, OR LIMITATION CONTAINED IN ANY DOCUMENT REFERRED TO IN THIS COMMITMENT TO THE EXTENT THAT THE SPECIFIC COVENANT, CONDITION, RESTRICTION, OR LIMITATION VIOLATES STATE OR FEDERAL LAW BASED ON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, GENDER IDENTITY, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN. The Policy will not insure against loss or damage resulting from the terms and provisions of any lease or easement identified in Schedule A, and will include the following Exceptions unless cleared to the satisfaction of the Company: 1. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this form. 2. Taxes and assessments for the year 2021 and subsequent years, which are not yet due and payable. 3. Standard Exceptions: A. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. B. Rights or claims of parties in possession not shown by the public records. C. Any lien, or right to a lien, for services, labor, or materials heretofore or hereafter furnished, imposed by law and not shown by the public records. r O D. Taxes or assessments which are not shown as existing liens in the public records. N 4. Any claim that any portion of the insured land is sovereign lands of the State of Florida, including submerged, filled or artificially exposed lands accreted to such land. Any lien provided by County Ordinance or by Chapter 159, Florida Statutes, in favor of any city, town, village or port authority for unpaid service charges for service by any water, sewer or gas system supplying the insured land. NOTE: Exception 1 above shall be deemed deleted as of the time the settlement funds or proceeds of the loan to be secured by the insured mortgage, as applicable, are disbursed by the Company or its authorized agent. Neither the Company nor its agent shall, however, be under any duty to disburse any sum except upon a determination that no such adverse intervening matters have appeared of record or occurred. NOTES ON STANDARD EXCEPTIONS: Item 3A will be deleted from the policy(ies) upon receipt of an accurate survey of the Land acceptable to the Company. Exception will be made for any encroachment, setback line violation, overlap, boundary line dispute or other adverse matter disclosed by the survey. Items 3B, 3C, and 3D will be deleted from the policy(ies) upon receipt of an affidavit acceptable to the Company, affirming that, except as disclosed therein (i) no parties in possession of the Land This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and 4 of 7 Schedule B, Part II - Exceptions C165C09 ALTA Commitment (8/1/2016) (with FL Modifications) Packet Pg. 1479 16.K.8.a *Chicago Title Insurance Company Order No.: 9932911 16583.001 SCHEDULE B SECTION II EXCEPTIONS AMERICAN LAND TITLE ASSOCIATION COMMITMENT exist other than the record owner(s); (ii) no improvements have been made to the Land within 90 days prior to closing which have not have been paid for in full; and (iii) no unpaid taxes or assessments are against the Land which are not shown as existing liens in the public records. Exception will be made for matters disclosed in the affidavit. 6. Restrictions, conditions, reservations, easements and other matters as shown on the Plat of Riviera Colony Golf Estates Tract Map, as recorded in Plat Book 10, Page 104 through 108, inclusive, as affected by Resolution No. 2000-461, recorded in Official Records Book 2754, Page 2453, of the Public Records of Collier County, Florida. 7. Easements in favor of Collier County for the Construction, Operation and Maintenance of Utility Facilities recorded in Official Records Book 1641, Page 690 and Official Records Book 1544, Page 2193, of the Public Records of Collier County, Florida. 8. Easement in favor of Collier County for the installation operation and maintenance of water and sewer utility facilities recorded in Official Records Book 1552, Page 609 and appurtenant easement rights set forth in Utilities Deed conveying utilities and providing easements as recorded in Official Records Book 1552, Page 612 and in Warranty Deed recorded in Official Records Book 1552, Page 616, all of the Public Records of Collier County, Florida. 9. Agreement for the Delivery and Use of Treated Waste Water recorded in Official Records Book 1314, Page 323, as modified by Addendum recorded in Official Records Book 1736, Page 2127, of the Public Records of Collier County, Florida. 10. Any right, title or interest in those certain oil, gas, and mineral interests referenced in that certain Deed recorded in Official Records Book 56, Page 84, of the Public Records of Collier County, Florida. No r determination has been made as to the current record owner for the interest excepted herein. Note: In the event a Florida Endorsement Form 9 is issued with the policy(ies), the Form 9 Endorsement will not afford coverage of this exception. 11. Terms, conditions and easement rights set fort Irrigation Quality (IQ) Water recorded in Official Amendment No. 1, recorded in Official Records County, Florida. 12. Rights of the lessees under unrecorded leases. h in Major Use Agreement for the Delivery and Reuse of Records Book 5228, Page 2513, as modified by Book 5827, Page 658, of the Public Records of Collier 13. This commitment/policy does not insure the insured over the consequences of claims and allegations that may be raised by owners of interests in lands surrounding the lands described on Schedule A (the "Subject Property") that they hold rights of any kind that would prevent the Insured herein from operating the Subject Property in any manner other than as a golf course. NOTE: In accordance with Florida Statutes section 627.4131, please be advised that the insured hereunder may present inquiries, obtain information about coverage, or receive assistance in resolving complaints, by contacting Chicago Title Insurance Company, 4210 Metro Parkway Suite 220, Ft. Myers, FL 33916; Telephone 239-275-8212. This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and 5 of 7 Schedule B, Part II - Exceptions C165C09 ALTA Commitment (8/1/2016) (with FL Modifications) Packet Pg. 1480 *Chicago Title Insurance Company 16.K.8.a Order No.: 9932911 16583.001 Searched By: Dale Hunt SCHEDULE B SECTION II EXCEPTIONS AMERICAN LAND TITLE ASSOCIATION COMMITMENT END OF SCHEDULE B SECTION II This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and 6 of 7 Schedule B, Part II - Exceptions C165C09 ALTA Commitment (8/1/2016) (with FL Modifications) Packet Pg. 1481 *Chicago Title Insurance Company EXHIBIT "A" Order No.: 1 Parcel One All of Tracts A, B, C, and D, Riviera Colony Golf Estates Tract Map, as recorded in Plat Book 10, pages 104, 105, 106, 107 and 108, Public Records of Collier County, Florida. LESS AND EXCEPTING THEREFROM THE EASTERLY TEN (10) FEET OF SAID TRACT A BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: From the most Northerly corner of Lot 136, Riviera Colony Golf Estates Unit One, as recorded in Plat Book 10, pages 109, 110, 111, 112, and 113, Public Records of Collier County, Florida, run 30.00 feet along the arc of a curve, concave to the Northeast, having a radius of 440.00 feet and subtended by a chord having a length of 29.99 feet and bearing N. 46 degrees 58 minutes 34 seconds W.; thence S. 44 degrees 58 minutes 38 seconds W., for 90.00 feet to the Point of Beginning of said exception; thence continue S. 44 degrees 58 minutes 38 seconds W., for 10.00 feet; thence running parallel with and 10.00 feet from the East line of said Tract A, 533.70 feet along the arc of a curve, concave to the Northeast, having a radius of 540.00 feet and subtended by a chord having a length of 512.24 feet and bearing N. 16 degrees 42 minutes 32.5 seconds W., to a point of tangency; thence N. 11 degrees 36 minutes 17 seconds E., for 262.42 feet to a point of curvature; thence 843.40 feet along the arc of a curve, concave to the Southwest having a radius of 710.00 feet and subtended by a chord having a length of 794.68 feet and bearing N. 22 degrees 25 minutes 33 seconds W., to a point of tangency; thence N. 56 degrees 27 minutes 23 seconds W., for 139.96 feet; thence N. 26 degrees 04 minutes 51 seconds E., for 10.09 feet to the East line of Tract A; thence along said East line; S. 56 degrees 27 minutes 23 seconds E., for 141.27 feet to a point of curvature; thence 855.28 feet along the arc of a curve, concave to the Southwest, having a radius of 720.00 feet and subtended by a chord having a length of 805.87 feet and bearing S. 22 degrees 25 minutes 33 seconds E., to a point of tangency; thence S. 11 degrees 36 minutes 17 seconds W., for 262.42 feet to a point of curvature; thence 523.82 feet along the arc of a curve, concave to the Northeast, having a radius of 530.00 feet and subtended by a chord having a length of 502.76 feet and bearing S. 16 degrees 42 minutes 32.5 seconds E., to the Point of Beginning of said exception. Parcel Two That certain perpetual, non-exclusive easement in favor of Riviera Golf Club of Naples, Inc., a Florida corporation, recorded in Official Records Book 2021, page 743 and as more particularly described as follows: Commencing at the Point of Beginning which is the Northeast corner of Lot 42, Riviera Colony Golf Estates, Unit IV, as recorded in Plat Book 17, pages 88 and 89, of Public Records of Collier County, Florida; thence Southerly 62.79 feet along the arc of a curve concave to the East having a radius of 210.00 feet and subtended by a chord which bears South 20 degrees 56 minutes 57 seconds West, 62.55 feet said curve being the East line of said Lot 42; thence North 20 degrees 56 minutes 57 seconds East, 62.55 feet to the Point of Beginning. This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule 7 of 7 B, Part I - Requirements; and Schedule B, Part II - Exceptions C165C09 ALTA Commitment (8/1/2016) (with FL Modifications) Packet Pg. 1482 2022 Paid Collier County Notice of Ad Valorem Taxes and Non -Ad Valorem Assessments If Paid By Jan 31, 2023 Please Pay $0.00 Parcel Number Legal Description Mill Code Escrow Code 70170160004 RIVIERA COLONY GOLF EST TR 106 MAP TRACTS A, B, C & D, LESS THAT PORTION OF TRACT A DESC IN OR1548PG3 Continued (See Tax Roll) LA MINNESOTA RIVIERA LLC 930 LYN WAY #104 HASTINGS, MN 55033 Pay in U.S. Funds Drawn on a U.S. Bank To: Collier County Tax Collector 3291 E. Tamiami Trail Naples, FL 34112-5758 POST DATED CHECKS ARE NOT ACCEPTED AND WILL BE RETURNED Visit our website: www.colliertaxcollector.com Assessed Value District Mill Rate Assessed Value Exempt Amt Taxable Value Tax Amount GENERAL FUND 3.5645 1,273,573 0 1,273,573 4,539.65 1,273,573 WATER MANAGEMENT FUND -SOUTH 0.0948 1,273,573 0 1,273,573 120.73 BIG CYPRESS BASIN 0.0978 1,273,573 0 1,273,573 124.56 SCHOOL BOARD - STATE LAW 2.2110 1,273,573 0 1,273,573 2,815.87 SCHOOL BOARD - LOCAL BOARD 2.2480 1,273,573 0 1,273,573 2,862.99 Exemptions COLLIER MOSQUITO CONTROL 0.1609 1,273,573 0 1,273,573 204.92 GREATER NAPLES FIRE RESCUE DI; 1.5000 1,273,573 0 1,273,573 1,910.36 UNINCORP GEN - MSTD 0.8069 1,273,573 0 1,273,573 1,027.65 C.C. WATER POLLUTION CTRL PGM 0.0293 1,273,573 0 1,273,573 37.32 CONSERVATION COLLIER 0.2500 1,273,573 0 1,273,573 318.39 Millage Total 10.9632 Total Ad Valorem $13,962.44 Pay your current taxes online at: Non -Ad Valorem District Type of Assessment Amount http://www.coiliertaxcollector.com/ Non -Ad Valorem Total $0.00 See reverse side for important information Combined Ad Valorem and Non -Ad Valorem Total $13,962.44 (Detach and Return with your Payment) 2022 Paid Collier County Notice of Ad Valorem Taxes and Non -Ad Valorem Assessments If Paid By Please Pay Jan 31, 2023 $0.00 Parcel Number Mill Code Escrow Code 70170160004 106 Legal Description RIVIERA COLONY GOLF EST TR MAP TRACTS A, B, C & D, LESS THAT PORTION OF TRACT A DESC IN OR1548PG3 Continued (See Tax Roll) 16.K.8.a LA MINNESOTA RIVIERA LLC 930 LYN WAY #104 HASTINGS, MN 55033 01/30/2023 U r Amount Paid to Date: 13683.19 Q Receipt # TAX HSP 1-23-00455083 Paid By On File Packet Pg. 1483 3576522 OR; 3753 PG; 16.K.8.a RECORDED in OFFICIAL RECORDS of COLLIER CODETY, FL 03/15/2005 at 03:11Pl1 DWIGHT B. BROCI, CLERK COES 1800000, THIS INSTRUMENT PREPARED BY RIC FBI 27. AND RETURN TO: DOC-.70 33600. L Thomas M. Little, Esquire Retn: c Foley & Lardner LLP FOLEY 6 LARDEIR v 100 N. Tampa Street, Suite 2700 P 0 BOX 3391 0TAMPA FL 33601 3391 � Tampa, Florida 33602 d Tax Parcel folio #::.70170160004 Grantee's Tax Ilb. A-` SPECIAL WARRANTY DEED THIS SPECIAL WARRANTY DEED is made this ��day of March, 2005, between RGC, LLC, a Florida limited liability company, (hereinafter called the "Grantor"), and LA MINNESOTA RIVIERA, LL1Cy.a 1Vlinnesota limited liability company, whose address is One Shannon Drive, Hastings, Minn6olaa $ 033 (hereinafter called the "Grantee"). That the Grantor, for and in cons' at good and valuable consideration, to it in ha by these presents does grant, bargain, sell, ale Grantee, its successors and assigns forever, all is" condition without any representations regal Collier, State of Florida, as more particularly c this reference made a part hereof. TOGETHER WITH all the tenements, belonging or in anywise appertaining. SSETH: the sum of Ten Dollars ($10.00) and other he receipt whereof is hereby acknowledged, °L 5e, release, convey and confirm unto the L ertain parcel of land, in its "as -is", `wvhere- r ;aril ,lying and being in the County of ed'he Exhibit A annexed hereto and by SUBJECT TO real estate taxes for 2005 and all st conditions, easements and restrictions listed in the Public appurtenances thereto TO HAVE AND TO HOLD the above described premises, the said Grantee, its successors and assigns, in fee simple forever. , and all covenants, lipr County, Florida. And the Grantor does specially warrant the title to said land subject to referred to above and will defend the same against the lawful claims of all pei through or under the Grantor, but not otherwise. unto claiming by, 005.367637.1 Packet Pg. 1484 OR: 3153 PG: 14 16.K.8.a IN WITNESS WHEREOF, the Grantor has caused these presents to be duly authorized in its name and by those thereunto duly authorized, the day and year first above written. Witnesses: STATE OF FLO,���►� COUNTY OF ,j,�r/:✓ On Minh Igr, 2005, before me per onal known to me (or proved to me on the basis off name is subscribed to the within instrument and in his authorized capacity, and that by his signati upon behalf of which the person acted, executed JENNIFER A. MESSE A/YCOMMISSIONI ,D019 07 -603NOTAFW EXPIRES: May g, 2005 FL "" Serricb 8 RGC, LLC, a Florida limited liability company By: Print Name: Charles K. taples Title: Manager Address: 48 Marseilles Drive Naples, Florida 34112 -d Charles K. Staples, Personally evidence) to be the person whose aged to me that he executed the same instrument the person, or the entity Name: Serial No. L My Commission 0 o 9- 005.367637.1 Packet Pg. 1485 OR; 3753 PG: 1 16.K.8.a EXHIBIT "A" All of Tracts A, B, C, and D, Riviera Colony Golf Estates Tract Map, as recorded in Plat Book 10, pages 104, 105, 106, 107 and 108, Public Records of Collier County, Florida. LESS AND EXCEPTING THEREFROM THE EASTERLY TEN (10) FEET OF SAID TRACT A BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: From the most Northerly comer of Lot 136, Riviera Colony Golf Estates Unit One, as recorded in Plat Book 10, pages 109, 110, 111, "11 , and 113, Public Records of Collier County, Florida, run 30.00 feet along the arc of a curve, concave t6,tlaeFNb��ast, having a radius of 440.00 feet and subtended by a chord having a length of 29.99 feet and bearing N. 46 _ green"58 minutes 34 seconds W.; thence S. 44 degrees 58 minutes 38 seconds W., for 90.00 feet to the Point of Beg"ning o said exception; thence continue S. 44 degrees 58 minutes 38 seconds W., for 10.00 feet; thence running parallel wind 10.00 feet from the East line of said Tract A, 533.70 feet along the arc of a curve, concave to the No ast, having a radius of 540.00 feet and subtended by a chord having a length of 512.24 feet and bearing N. 16 degree*�nnutes 32.5 seconds W., to a point of tangency; thence N. 11 degrees 36 minutes 17 seconds E., for 262.42 feet to a point of curvature; thence 843.40 feet along the arc of a curve, concave to the Southwest having a radius of 710.00'feet,and subtended by a chord having a length of 794.68 feet and bearing N. 22 degrees 25 minutes 33 seconds: to a; point of tangency; thence N. 56 degrees 27 minutes 23 seconds W., for 139.96 feet; thence N. 26 degrees 04 Minutes 51 seconds E., for 10.09 feet to the East line of Tract A; thence along said East line; S. 56 degrees 27 minutes 2'3" ecouds E., for 141.27 feet to a point of curvature; thence 855.28 feet along the arc of a curve, concave to the Sa thwo,t,., having a radius of 720.00 feet and subtended by a chord having a length of 805.87 feet and bearing S. 22 degrees 75 _minutes 33 seconds E., to a point of tangency; thence S. 11 degrees 36 minutes 17 seconds W., for 262.421eet.to ,point of curvature; thence 523.82 feet along the arc of a curve, concave to the Northeast, having a radius ofR`530.00 feet and subtended by a chord having a length of 502.76 feet and bearing S. 16 degrees 42 minutes 32.5 sewn& E ; to the Point of Beginning of said exception. Parcel Two That certain perpetual, non-exclusive easement in favor recorded in Official Records Book 2021, page 743 and Commencing at the Point of Beginning which is the Northeast:c� IV, as recorded in Plat Book 17, pages 88 and 89, of Public Recorc 62.79 feet along the arc of a curve concave to the East having a rac which bears South 20 degrees 56 minutes 57 seconds West, 62.55 thence North 20 degrees 56 minutes 57 seconds East, 62.55 feet to Club of Naples, Inc., a Florida corporation, irly described as follows: 42, Riviera Colony Golf Estates, Unit ier County, Florida; thence Southerly 0,00 feet and subtended by a chord e being the East line of said Lot 42; Beginning. 005.367637.1 Packet Pg. 1486 Collier County Property Appraiser 16.K.8.a Property Summary Site 164 Site Zone Parcel No 70170160004 Address ESTELLE Site City NAPLES *Note 341' 0 *Disclaimer DR 0 Name / Address LA MINNESOTA RIVIERA LLC V 0 930 LYN WAY #104 - L d Z t 3 c City HASTINGS State MN Zip SS033 0 as Map No. Strap No. Section Township Range Acres *Estimated a 0 51318 597100 C 35B18 18 50 26 93.34 RIVIERA COLON GOLF EST TR MAP TRACTS A, B, C & D, LESS THAT PORTION M Legal OF TRACT A DESC IN OR 1548 PG 337, LESS THAT PORTION OF TRACT B DESC I Z ,OR 2021 PG 741 A •L L Millage Area O 106 Millage_Rates O *Calculations Sub./Condo 597100 -RIVIERA COLON GOLF EST TR MAP School Other Total 0° o Use Code O 38 - GOLF COURSES, DRIVING RANGES 4.459 6.5042 10.9632LA Latest Sales History (Not all Sales are listed due to Confidentialitv) Date Book -Page Amount 03/15/05 3753-1455 $ 4,800,000 08/17/00 2711-2860 $ 2,250,000 08/01/90 1548-337 $ 0 07/01/90 1544-2181 $ 0 07/01/73 538-902 $ 0 2022 Certified Tax Roll (Subiect to Chanae) Land Value $ 1,039,2; +) Improved Value $ 234,3A (_) Market Value $ 1,273,5 , (_) Assessed Value $ 1,273,5, (_) School Taxable Value $ 1,273,5� (_) Taxable Value $ 1,273,5� If all Values shown above equal 0 this parcel was created after the Final Tax Roll Packet Pg. 1487 Collier County Property Appraiser 16.K.8.a Property Detail Site 164 Site Zone Parcel No 70170160004 Address ESTELLE Site City NAPLES *Note 341' 1 *Disclaimer DR Name / Address I LA MINNESOTA RIVIERA LLC 930 LYN WAY #104 City I HASTINGS State I MN Zip I SS033 Permits Provided for reference purposes only, *Full Permit # CO Date Tmp CO Final Bldg Disclaimer. ) Type Tax Yr Issuer 1975 COUNTY 75-668 07/09/75 1983 COUNTY 82-2124 05/14/82 1984 COUNTY 83-269 01/21/83 1987 COUNTY 86-2759 DECKING 1987 COUNTY 86-3885 DECKING 1993 COUNTY 91-12014 03/17/92 19961 COUNTY 95-8240 07/20/95 NO PICKUP 1999 COUNTY 97100147 05/18/98 2001 COUNTY 200007- 1123 07/14/00 SHED, NO PICKUP SHED, NO PICKUP NO PICKUP NO PICKUP 2001 COUNTY COUNTY 200007- 1124 07/20/00 10/09/00 2001 200009- 0922 2001 COUNTY 200009- 0927 09/13/00 2012 COUNTY 12011041867 ROOF Land # Calc Code Units 10 ACREAGE 78.27 20 ACREAGE 15.26 30 PUD UNITS BUILDABLE 18 Building/Extra Features Year Ad Built Description Area Area Packet Pg. 1488 10 1974 RESIDENTIAL 2698 16.K.8.a 20 1972 METAL -STEEL 1 S68 1 S68 FRAME 30 1972 METAL -STEEL 1320 1320 FRAME 40 1975 CARPORT 1560 1560 N 50 1982 METAL -STEEL 960 960 0 FRAME V 60 1983 ALUM CARPORT 500 500 0 70 1987 GARAGE 288 288 80 1987 ALUMENCREEN 1832 1832 '; 512 512 90 1987 SWIMMING POOL 100 1987 ALUMENCREEN 460 460 0 110 1998 GARAGE 780 780 120 1998 CONC P 950 950 c 130 1987 KEYSTONE DECK 448 c 448 0 140 1987 BRICK DECK 196 196 c E 0 V 0 L d J r C d E z t� c0 r� a Packet Pg. 1489 Addenda 16. K.8.a Addendum D Comparable Data Former Riviera Golf Course Land rrr Packet Pg. 1490 Addenda 16. K.8.a Land Sales - As if developable with 346 residential units Former Riviera Golf Course Land rrr Packet Pg. 1491 Land Sale Profile 16. K.8.a Sale No. I Location & Property Identification Property Name: The Isle of Collier Preserve Phase 3 Sub -Property Type: Residential Address: 8000 Bayshore Dr. City/State/Zip: Naples, FL 34112 County: Collier Submarket: East Naples Market Orientation: Suburban IRR Event ID: 2900332 Sale Information Sale Price: Effective Sale Price: Sale Date: Sale Status: $/Acre(Gross): $/Land SF(Gross): $/Acre(Usable): $/Land SF(Usable): $/Unit: Grantor/Seller: Grantee/Buyer: Portfolio Sale: Property Rights: of Interest Conveyed Financing: Document Type: Recording No.: Verified By: Verification Date: Confirmation Source: Verification Type: $10,000,000 $10,000,000 02/02/2022 Closed $97,637 $2.24 $97,637 $2.24 $43,478 /Approved Lot Bayshore Parcel, LLC. Minto Sabal Bay, LLC. No Fee Simple 100.00 All cash Warranty Deed 6200299 Jocelynn Collins 07/31/2022 Costar Prop App Confirmed -Other Improvement and Site Data Legal/Tax/Parcel ID: 61838080008, 61838120007 61838160009,61838200008: 61838201007 Acres(Usable/Gross): 102.42/102.42 Land-SF(Usa ble/Gross): 4,461,415/4,461,415 Usable/Gross Ratio: 1.00 No. of Units (Potential): 230 Shape: Irregular Topography: Level Corner Lot: No Zoning Code: Planned Unit Development Zoning Desc.: Planned Unit Development Flood Plain: Yes Flood Zone Designation: AE Comm. Panel No.: 12021C0584H Date: 05/16/2012 Source of Land Info.: Public Records Comments This is the sale of 5 parcels totaling 102.42-acres located alon Bayshore Drive in East Naples. These parcels sold to Minto Sabal Bay, LLC. in February of 2022 for $10,000,000. This acquisition is part of the third phase of The Isles of Collier Preserve. It is reported that more than half of the land will remain as lakes and nature preserves with planned development of approximately 230 homesites. In January 2021, Collier County commissioners approved Minto's plan tc build 230 more housing units in The Isles, which stretches west from U.S. 41 East to Bayshore Drive. Commissioners voted 4-1 on an ordinance to amend the county's land development code to allow the development of the new homes along Bayshore Drive rrr. Packet Pg. 1492 The Isle of Collier Preserve Phase 3 Land Sale Profile 16.K.8.a Sale No. 1 Comments (Cont'd) south of Thomasson Drive in the Sabal Bay mixed -use planned unit development. Acquisition of the property was contingent upon acquiring entitlements for the property, which includes the rezoning, South Florida Water Management District, Army Corps of Engineers. Rezoned from agricultural and RSF3 to PUD. The Isle of Collier Preserve Phase 3 irr Packet Pg. 1493 Land Sale Profile 16.K.8.a Sale No. 03 Location & Property Identification Property Name: Oil Well Road Land Sub -Property Type: Residential Address: 123 Oil Well Rd. City/State/Zip: Naples, FL 34120 County: Collier Submarket: Outlying Collier County/Wagon Wheel Market Orientation: Suburban IRR Event ID: 2900339 Sale Information Sale Price: $35,000,000 Effective Sale Price: $35,000,000 Sale Date: 12/03/2021 Sale Status: Closed $/Acre(Gross): $104,068 $/Land SF(Gross): $2.39 $/Acre(Usable): $104,068 $/Land SF(Usable): $2.39 $/Unit: $51,095 /Unit Grantor/Seller: Roberto Bollt Grantee/Buyer: Pulte Home Company, LLC Portfolio Sale: No Property Rights: Fee Simple of Interest Conveyed: 100.00 Financing: Cash to seller - buyer obtained financing Document Type: Warranty Deed Recording No.: 6052-2136 Verified By: Jocelynn Collins Verification Date: 07/31/2022 Confirmation Source: Costar, Prop App Verification Type: Confirmed -Other Improvement and Site Data Legal/Tax/Parcel ID: 00210440007 Acres(Usable/Gross): 336.32/336.32 Land-SF(Usa ble/Gross): 14,650,099/14,650,099 Usable/Gross Ratio: 1.00 No. of Units (Potential): 685 Shape: Irregular Topography: Level Corner Lot: No Zoning Code: Mixed Use Planned Unit Development Zoning Desc.: Mixed Use Planned Unit Development Flood Zone Designation: X Comm. Panel No.: 12021CO240H Date: 05/16/2012 Source of Land Info.: Public Records Comments This is the sale of 336.32-acres of vacant residential Land located along Oil Well Road in Naples, Florida. This property sold to Pulte Home Company, LLC. in December of 2021 for $35,000,000. Purchased for development of 685 single-famil} homes 0 v N rrr. Packet Pg. 1494 Oil Well Road Land Land Sale Profile 16.K.8.a Sale No. 2 Location & Property Identification Property Name: Ventana Pointe Sub -Property Type: Residential Address: 10334 Immokalee Rd. City/State/Zip: Naples, FL 34120 County: Collier Submarket: Outlying Collier County/Wagon Wheel Market Orientation: Suburban IRR Event ID: 2728189 Sale Information Sale Price: $4,620,000 Effective Sale Price: $4,620,000 Sale Date: 09/17/2020 Sale Status: Closed $/Acre(Gross): $124,127 $/Land SF(Gross): $2.85 $/Unit: $60,000 /Approved Unit Grantor/Seller: RJH II, LLC Grantee/Buyer: Pulte Home Company LLC Assets Sold: Real estate only Property Rights: Fee Simple of Interest Conveyed: 100.00 Financing: Cash to seller Document Type: Warranty Deed Verified By: Mr. Julian L. Stokes, II, MAI Verification Date: 11/08/2021 Confirmation Source: Broker Verification Type: Confirmed -Seller Improvement and Site Data MSA: Naples-Immokalee-Marco Island, FL Acres(Gross): 37.22 Land-SF(Gross): 1,621,303 No. of Units (Potential): 77 Zoning Code: RPUD Zoning Desc.: RPUD Source of Land Info.: Public Records Comments On September 17th, 2020, RJH II, LLC sold 37.22 acres of land located at Immokalee Rd and Richards Street to Pulte Home Company. This slated to be the future site of Ventana Pointe, 77 unit single family home development. This was a cash sale rrr. Packet Pg. 1495 Ventana Pointe Land Sale Profile 16.K.8.a Sale No. d Location & Property Identification Property Name: Tamarindo Sub -Property Type: Residential, Planned Unit Development Address: North Of Sabal Drive City/State/Zip: Naples, FL 34114 County: Collier Submarket: Outlying Collier County/Wagon Wheel Market Orientation: Suburban IRR Event ID: 2512551 N �L Legal/Tax/Parcel ID: 00433040006, 00433120007, L _ Sale Information 00433160009, 00433480006, ai 00433800000, 00434840001, O Sale Price: $13,025,000 00435400000,00436360000, r Effective Sale Price: $13,025,000 00436440001, 00436520002, Sale Date: 09/28/2020 00436600003, 00436760008, 0 Recording Date: 09/29/2020 00436800104, 00436800201 CL Sale Status: Closed and 00436800308 $/Acre(Gross): $122,369 Acres(Usable/Gross): 106.44/106.44 $/Land SF(Gross): $2.81 Land-SF(Usable/Gross): 4,636,526/4,636,526 N $/Acre(Usable): $122,369 Usable/Gross Ratio: 1.00 $/Land SF(Usable): $2.81 No. of Units (Potential): 266 $/Unit: $48,966 /Unit Shape: Irregular E Grantor/Seller: Watermen at Rockedge Topography: Level ) U Naples LLC Corner Lot: Yes Mn Grantee/Buyer: Forestar USA Real Estate Frontage Desc.: North Of Sabal Drive Group (DR Horton) Zoning Code: PUD Property Rights: Fee Simple Zoning Desc.: Rockedge Residential Planner m of Interest Conveyed: 100.00 Development a) Document Type: Deed Flood Plain: Yes >% c Recording No.: 5930097 Flood Zone Designation: AH o Rent Controlled: No Comm. Panel No.: 12021C0606H U 0 Verified By: Carlton J. Lloyd, MAI Date: 05/26/2012 Verification Date: 10/12/2020 Source of Land Info.: Engineering Report Confirmation Source: Buyers Attorney _J Verification Type: Confirmed -Buyer Attorney Comments E Improvement and Site Data On September 18, 2020 DR Horton purchased the Tamarindo 5 project from Watermen at Rockedge LLC. r Tamarindo rrr. Packet Pg. 1496 Land Sale Profile 16. K.8.a Sale No. d Comments (Cont'd) Tamiarindo is located at the northeast quadrant of Collier Boulevard and Sabal Palm Drive. DR Horton plans a 266 unit single family residential community. Tamarindo irr Packet Pg. 1497 Addenda 16. K.8.a Land Sales - As if developable with 104 residential units Former Riviera Golf Course Land rrr Packet Pg. 1498 Land Sale Profile 16. K.8.a Sale No. I Location & Property Identification Property Name: The Isle of Collier Preserve Phase 3 Sub -Property Type: Residential Address: 8000 Bayshore Dr. City/State/Zip: Naples, FL 34112 County: Collier Submarket: East Naples Market Orientation: Suburban IRR Event ID: 2900332 Sale Information Sale Price: Effective Sale Price: Sale Date: Sale Status: $/Acre(Gross): $/Land SF(Gross): $/Acre(Usable): $/Land SF(Usable): $/Unit: Grantor/Seller: Grantee/Buyer: Portfolio Sale: Property Rights: of Interest Conveyed Financing: Document Type: Recording No.: Verified By: Verification Date: Confirmation Source: Verification Type: $10,000,000 $10,000,000 02/02/2022 Closed $97,637 $2.24 $97,637 $2.24 $43,478 /Approved Lot Bayshore Parcel, LLC. Minto Sabal Bay, LLC. No Fee Simple 100.00 All cash Warranty Deed 6200299 Jocelynn Collins 07/31/2022 Costar Prop App Confirmed -Other Improvement and Site Data Legal/Tax/Parcel ID: 61838080008, 61838120007 61838160009,61838200008: 61838201007 Acres(Usable/Gross): 102.42/102.42 Land-SF(Usa ble/Gross): 4,461,415/4,461,415 Usable/Gross Ratio: 1.00 No. of Units (Potential): 230 Shape: Irregular Topography: Level Corner Lot: No Zoning Code: Planned Unit Development Zoning Desc.: Planned Unit Development Flood Plain: Yes Flood Zone Designation: AE Comm. Panel No.: 12021C0584H Date: 05/16/2012 Source of Land Info.: Public Records Comments This is the sale of 5 parcels totaling 102.42-acres located alon Bayshore Drive in East Naples. These parcels sold to Minto Sabal Bay, LLC. in February of 2022 for $10,000,000. This acquisition is part of the third phase of The Isles of Collier Preserve. It is reported that more than half of the land will remain as lakes and nature preserves with planned development of approximately 230 homesites. In January 2021, Collier County commissioners approved Minto's plan tc build 230 more housing units in The Isles, which stretches west from U.S. 41 East to Bayshore Drive. Commissioners voted 4-1 on an ordinance to amend the county's land development code to allow the development of the new homes along Bayshore Drive rrr. Packet Pg. 1499 The Isle of Collier Preserve Phase 3 Land Sale Profile 16.K.8.a Sale No. 1 Comments (Cont'd) south of Thomasson Drive in the Sabal Bay mixed -use planned unit development. Acquisition of the property was contingent upon acquiring entitlements for the property, which includes the rezoning, South Florida Water Management District, Army Corps of Engineers. Rezoned from agricultural and RSF3 to PUD. The Isle of Collier Preserve Phase 3 irr Packet Pg. 1500 Land Sale Profile 16.K.8.a Sale No. 1 Location & Property Identification Property Name: Oil Well Road Land Sub -Property Type: Residential Address: 123 Oil Well Rd. City/State/Zip: Naples, FL 34120 County: Collier Submarket: Outlying Collier County/Wagon Wheel Market Orientation: Suburban IRR Event ID: 2900339 Sale Information Sale Price: $35,000,000 Effective Sale Price: $35,000,000 Sale Date: 12/03/2021 Sale Status: Closed $/Acre(Gross): $104,068 $/Land SF(Gross): $2.39 $/Acre(Usable): $104,068 $/Land SF(Usable): $2.39 $/Unit: $51,095 /Unit Grantor/Seller: Roberto Bollt Grantee/Buyer: Pulte Home Company, LLC Portfolio Sale: No Property Rights: Fee Simple of Interest Conveyed: 100.00 Financing: Cash to seller - buyer obtained financing Document Type: Warranty Deed Recording No.: 6052-2136 Verified By: Jocelynn Collins Verification Date: 07/31/2022 Confirmation Source: Costar, Prop App Verification Type: Confirmed -Other Improvement and Site Data Legal/Tax/Parcel ID: 00210440007 Acres(Usable/Gross): 336.32/336.32 La nd-SF(Usa ble/G ross): 14,650,099/14,650,099 Usable/Gross Ratio: 1.00 No. of Units (Potential): 685 Shape: Irregular Topography: Level Corner Lot: No Zoning Code: Mixed Use Planned Unit Development Zoning Desc.: Mixed Use Planned Unit Development Flood Zone Designation: X Comm. Panel No.: 12021CO240H Date: 05/16/2012 Source of Land Info.: Public Records Comments This is the sale of 336.32-acres of vacant residential Land located along Oil Well Road in Naples, Florida. This property sold to Pulte Home Company, LLC. in December of 2021 for $35,000,000. Purchased for development of 685 single-famil} homes irr Packet Pg. 1501 Oil Well Road Land Land Sale Profile 16.K.8.a Sale No. 2 Location & Property Identification Property Name: Ventana Pointe Sub -Property Type: Residential Address: 10334 Immokalee Rd. City/State/Zip: Naples, FL 34120 County: Collier Submarket: Outlying Collier County/Wagon Wheel Market Orientation: Suburban IRR Event ID: 2728189 Sale Information Sale Price: $4,620,000 Effective Sale Price: $4,620,000 Sale Date: 09/17/2020 Sale Status: Closed $/Acre(Gross): $124,127 $/Land SF(Gross): $2.85 $/Unit: $60,000 /Approved Unit Grantor/Seller: RJH II, LLC Grantee/Buyer: Pulte Home Company LLC Assets Sold: Real estate only Property Rights: Fee Simple of Interest Conveyed: 100.00 Financing: Cash to seller Document Type: Warranty Deed Verified By: Mr. Julian L. Stokes, II, MAI Verification Date: 11/08/2021 Confirmation Source: Broker Verification Type: Confirmed -Seller Improvement and Site Data MSA: Naples-Immokalee-Marco Island, FL Acres(Gross): 37.22 Land-SF(Gross): 1,621,303 No. of Units (Potential): 77 Zoning Code: RPUD Zoning Desc.: RPUD Source of Land Info.: Public Records Comments On September 17th, 2020, RJH II, LLC sold 37.22 acres of land located at Immokalee Rd and Richards Street to Pulte Home Company. This slated to be the future site of Ventana Pointe, 77 unit single family home development. This was a cash sale rrr. Packet Pg. 1502 Ventana Pointe Land Sale Profile 16.K.8.a Sale No. d Location & Property Identification Property Name: Tamarindo Sub -Property Type: Residential, Planned Unit Development Address: North Of Sabal Drive City/State/Zip: Naples, FL 34114 County: Collier Submarket: Outlying Collier County/Wagon Wheel Market Orientation: Suburban IRR Event ID: 2512551 N �L Legal/Tax/Parcel ID: 00433040006, 00433120007, L _ Sale Information 00433160009, 00433480006, ai 00433800000, 00434840001, O Sale Price: $13,025,000 00435400000,00436360000, r Effective Sale Price: $13,025,000 00436440001, 00436520002, Sale Date: 09/28/2020 00436600003, 00436760008, 0 Recording Date: 09/29/2020 00436800104, 00436800201 CL Sale Status: Closed and 00436800308 $/Acre(Gross): $122,369 Acres(Usable/Gross): 106.44/106.44 $/Land SF(Gross): $2.81 Land-SF(Usable/Gross): 4,636,526/4,636,526 N $/Acre(Usable): $122,369 Usable/Gross Ratio: 1.00 $/Land SF(Usable): $2.81 No. of Units (Potential): 266 $/Unit: $48,966 /Unit Shape: Irregular E Grantor/Seller: Watermen at Rockedge Topography: Level ) U Naples LLC Corner Lot: Yes Mn Grantee/Buyer: Forestar USA Real Estate Frontage Desc.: North Of Sabal Drive Group (DR Horton) Zoning Code: PUD Property Rights: Fee Simple Zoning Desc.: Rockedge Residential Planner m of Interest Conveyed: 100.00 Development a) Document Type: Deed Flood Plain: Yes >% c Recording No.: 5930097 Flood Zone Designation: AH o Rent Controlled: No Comm. Panel No.: 12021C0606H U 0 Verified By: Carlton J. Lloyd, MAI Date: 05/26/2012 Verification Date: 10/12/2020 Source of Land Info.: Engineering Report Confirmation Source: Buyers Attorney _J Verification Type: Confirmed -Buyer Attorney Comments E Improvement and Site Data On September 18, 2020 DR Horton purchased the Tamarindo 5 project from Watermen at Rockedge LLC. r Tamarindo irr Packet Pg. 1503 Land Sale Profile 16. K.8.a Sale No. d Comments (Cont'd) Tamiarindo is located at the northeast quadrant of Collier Boulevard and Sabal Palm Drive. DR Horton plans a 266 unit single family residential community. Tamarindo ®rr Packet Pg. 1504 Addenda 16. K.8.a Addendum E Engagement Letter Former Riviera Golf Course Land rrr Packet Pg. 1505 16. K.8.a Integra RealtyResourres ;770 Hw:mtlre1)FIVe Saute T 2 39,64 16 88 9 uuli•w••i . S„i Soft_ 3=:i9.543.6671 fd4pk-t. FL341VA WWW.1TIxun4 PROPGSALIENGAGEMENT LETTER January 24, 2023 Richard Yovanovich Coleman, Yovanovich & Koester, P.A. The Northern Trust Bu4ding 4001 Tamiami Trail North, Suite 300 Naples, Florida 34103 239.435.3535 (telephone) 239.435.1218 (fax) SUBJECT: Proposal/Authorization for Valuation and Consulting Services Former Riviera Golf Course Land 164 Estelle Drive Naples, FL 34112 Property I❑ 70170160004 (the Subject Property) Mr. Yovanovich: Upon your acceptance of this letter agreement, Integra Realty Resources -Southwest Florida ("IRR -Southwest Florida"), will prepare an appraisal and consulting report for the Subject Property. The purpose of this assignment is to estimate the diminution in vatue of the fee interest in the subject property due to a reduction in the developable density on the subject property. The valuation will assume that the property was developable with 346 units in the before scenario and 104 units in the after scenario. The client and intended user for this assignment is Richard Yovanovich of Coleman, Yovanovich & Koester, P.A. The report may not be utilized by any other users. The intended use of the appraisal is to assist the client with a potential Burt Harris Act claim. The report may not be used for any other purpose. The appraisal will be prepared in conformance with and subject to, the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP) developed by the Appraisai Standards Board of the Appraisal Foundation. The Ethics Rule of USPAP requires us to disclose to you any prior services we have performed regarding the Subject Property within a three year period Packet Pg. 1506 16. K.8.a Richard Yovanovich January 24, 2023 Page 2 immediately preceding the acceptance of this assignment, either as an appraiser or in any other capacity. We represent that we have analyzed the properties within the past three years for multiple clients. In accordance with our correspondence, the scope of this assignment will require iRR — Southwest Florida consider all relevant and applicable approaches to value, including the land residual approach. The appraisal will be communicated in a standard narrative report. All work will be performed under the direct supervision of the undersigned, together with other staff members. The appraisal and this letter agreement will be subject to our standard assumptions and limiting conditions a copy of which is attached as Attachment i. The fee for this assignment will be $8,000 total with delivery 6y February 3, 2023. We require a 50% retainer ($4,000) to begin work with the balance due upon delivery. If the assignment is cancelled by either party prior to completion, you agree to pay us for all our expenses and our time to date based upon the percentage of work completed. If required, post analysis services which include testimony at any arbitration or court hearings, additional valuation scenarios, review of the opposition expert's report(s), additional research and conference calls or meetings with any party which exceed the time allotted for an assignment of this nature. Court appearances, expert witness testimony, etc., will be billed at an hourly rate of $275.00jhour plus travel expenses for MAI's and principal appraisers and $go-$22S/hour for associate appraisers depending on their background and experience. Please be advised that we are not experts in the areas of building inspection (including mold), environmental hazards, ADA compliance or wetlands. Therefore, unless we have been provided with appropriate third party expert reports, the appraisals will assume that there are no environmental, wetlands, or AAA compliance problems. The agreed upon fees for our services assume the absence of such issues inasmuch as additional research and analysis may be required. If an expert is required, you are responsible for their selection, payment and actions, In the event that we receive a subpoena or are called to testify in any litigation, arbitration or administrative hearing of any nature whatsoever or as a result of this engagement or the related report, to which we are not a party, you agree to pay our then current hourly rates for such preparation and presentation of testimony. You agree that. (i) the data collected by us in this assignment will remain our property; and (ii) with respect to any data provided by you, Integra Southwest Florida and its partner companies may utilize, sell and include such data (either in the aggregate or individually), in our marketing materials, database and derivative products so long as your identity is kept confidential_ You agree that all data already in the public domain may be utilized on an unrestricted basis_ Packet Pg. 1507 16. K.8.a Richard Yovanovich January 24, 2023 Page 3 If you are in agreement with the terms set forth in this letter and wish us to proceed with the engagement, please sign below and return one copy to us. Thank you For this opportunity to be of service and we look forward to working with you. Sincerely, I NTEGRA REALTY RESOURCES- SOUTHWEST FLORIDA CariWh ! Lloyd, MAt Florida State -Certified General Real Estate Appraiser R242618 Senior Managing Director Attachments AGREED & ACCEPTED THIS DAY OF awv..� , 2023. BY: �UTHOR�IZEID ATURE A-N+k1w R" NAME (PRINT) Packet Pg. 1508 16. K.8.a Richard Yovanovich January 24, 2023 Page 4 ATTACHMENT I AssuPAPTiONS & LimaiNG CONOITIONS This appraisal is based on the following assumptions, except as otherwise noted in the report. 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use- 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or tens valuable. Furthermore, there is no asbestos in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal is subject to the following limiting conditions, except as otherwise noted in the report. I. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of t# e effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the internal Revenue Code) are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. if any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5 Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters, Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers the property as described m this report, and the areas and dimensions set forth are assumed to be correct. Packet Pg. 1509 16. K.8.a Richard Yovanovich Januairy 24, 2023 Page 5 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if ally, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal, 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and environmental matters. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10, Neither all nor any part of the contents of this report {especially any conclusions as to value, the identity of the app(aisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the person signing the report. 11. Information, estimates and opinions contained in the report and obtained from third -party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future Operating results. 13. if the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate isidustry, or of the appraised property at the time these leases expire or otherwise terminate. 14, No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered, 15. The current purchasing power of the dollar is the basis for the value stated in our appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16, The value found herein is subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local lousiness and economic conditions, the absence of material changes in the competitive environment and oti+eo matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material Packet Pg. 1510 16. K.8.a Richard Yovanowch January 24, 2023 Rage 6 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992, We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. inasmuch as compliance matches each owner's financial ability with the cost to cure the non- conforming physical characteristics of a property, a specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19, The appraisal report is prepared for the exclusive benefit of the Client, its subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20, No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property and the person signing the report shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property, 21, The person signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 22. Integra — Southwest Florida is not a building or environmental inspector. Integra - Southwest Florida does not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. The appraisal report and value conclusion for an appraisal assumes the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. It is expressly acknowledged that in any action which may be brought against Integra Realty Resources — Southwest Florida, Integra Realty Resources, Inc. OF their respective officers, owners, managers, directors, agents, subcontractors or employees ithe "Integra Parties"), arising out of, relating to, or in any way pertaining to this engagement, the appraisal reports, or any estimates or information contained therein, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with gross negligence. It is further acknowledged that the collective liability of the Integra Parties in any such action shall not exceed the fees paid For the preparation of the appraisal report unless the appraisal was fraudulent or prepared with gross Packet Pg. 1511 16. K.8.a Richard Yovanovich January 24, 2023 Page 7 negligence. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. Integra — Southwest Florida, an independently owned and operated company, has prepared the appraisal for the specific purpose stated elsewhere in the report. The intended use of the appraisal is stated in the General information section of the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences, These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer -seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. Integra Realty Resources, Inc. and the undersigned are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 27. All prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. As will be determined during the course of the assignment, additional extraordinary or hypothetical conditions may be required in order to complete the assignment. The appraisal shall also be subject to those assumptions. As will be determined during the course of the assignment, additional extraordinary or hypothetical conditions may be required in order to complete the assignment. The appraisal shall also be subject to those assumptions. Packet Pg. 1512