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Agenda 10/14/2014 Item # 16A23 10/14/2014 16.A.23. EXECUTIVE SUMMARY Recommendation to approve an easement agreement for the purchase of a road right-of-way, drainage and utility easement (Parcel 221RDUE) required for the expansion of Golden Gate Boulevard from east of Wilson Boulevard to 20th Street East. (Project No. 60040). Estimated Fiscal Impact: $3,277. OBJECTIVE: To purchase an easement needed for the four-laning of Golden Gate Boulevard from east of Wilson Boulevard to 20th Street East(the Project). CONSIDERATIONS: Collier County is seeking to purchase Parcel 221RDUE, a 20 foot wide perpetual, non-exclusive road right-of-way, drainage and utility easement, needed for construction of the Project. The easement is 3,600 square feet in extent and is situated along the road frontage of a parent tract owned by James A. and Karla Beckman. The unimproved parent tract is located on the north side of Golden Gate Boulevard,just west of 14th Street Northeast. The appraised value of the easement is $900. Please refer in this regard to the attached appraisal report (without addenda), dated March 5, 2014, prepared by Kenneth R. Devos. The attached easement agreement reflects a negotiated full compensation amount of $3,250 computed as follows: $1,500 for Parcel 221RUE and $1,750 for attorney's and appraiser's fees and costs, which the County is required to pay according to Sections 73.091 and 73.092, Florida Statutes. If this parcel is not acquired by negotiation, it will have to be condemned and the County will be liable for payment of the owner's additional attorney's, appraiser's and other experts' fees and costs, which will far exceed the difference between the appraised value and the negotiated purchase price. Staff accordingly recommends that the Board of County Commissioners (the Board) approve the agreement. FISCAL IMPACT: Funds in the amount of$3,277, being the purchase price of$3,250 and recording fees of$27, will be required. The primary funding source for the acquisition of right-of-way is impact fees. Should impact fees not be sufficient within a particular project, the secondary funding source will be gas taxes. The county currently maintains Golden Gate Boulevard, so incremental maintenance costs ultimately related to the improvements will be minimal compared to the overall benefits of project. Additional right- of-way acquisitions are required, which will add acreage to the mowing and garbage removal maintenance at approximately $3,000 per year. Replacement of swales with closed drainage (piping) has a useful life of approximately fifty years with recurring costs of periodic inspections and system cleaning on a three to five year basis at an estimated cost of$5,000 per cycle. New roadway construction has a maintenance curve of approximately 5 to 7 years before any incremental costs are required for repairs or replacement. When the construction contract is brought before the BCC for approval, the maintenance costs will be revised if necessary. LEGAL CONSIDERATIONS: This item has been approved as to form and legality, and requires a majority vote for Board approval.—ERP GROWTH MANAGEMENT IMPACT: This recommendation is consistent with the Long Range Transportation Plan and the Collier County Growth Management Plan. RECOMMENDATION: That the Board of County Commissioners of Collier County: 1. Approve the attached easement agreement and authorize its Chairman to execute same on behalf of the Board; 2. Accept the conveyance of Parcel No. 221RDUE and authorize the County Manager, or his designee, to record the conveyance instrument in the public records of Collier County, Florida; 3. Authorize the payment of all costs and expenses necessary to close the transaction; Packet Page -925- 10/14/2014 16.A.23. 4. Authorize the County Manager or his designee to take the necessary measures to ensure the County's performance in accordance with the terms and conditions of the agreement; and 5. Authorize any and all budget amendments that may be required to carry out the collective will of the Board. Prepared by: Robert Bosch,Right-of-Way Coordinator,Transportation Engineering. Attachments: (1) Easement Agreement with Exhibit A; (2) Location Map; and (3) Appraisal Report (without addenda) dated March 5, 2014. Packet Page -926- 10/14/2014 16.A.23. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.A.16.A.23. Item Summary: Recommendation to approve an easement agreement for the purchase of a road right-of-way, drainage and utility easement (Parcel 221RDUE) required for the expansion of Golden Gate Boulevard from east of Wilson Boulevard to 20th Street East. (Project No. 60040). Estimated Fiscal Impact: $3,277. Meeting Date: 10/14/2014 Prepared By Name: BoschRobert Title: Right Of Way Coordinator, Transportation Engineering&Construction Management 9/3/2014 11:09:42 AM Approved By Name: HendricksKevin Title: Manager-Right of Way, Transportation Engineering& Construction Management Date: 9/3/2014 1:17:37 PM Name: PutaansuuGary Title:Project Manager, Principal, Transportation Engineering&Construction Management Date: 9/4/2014 12:18:50 PM Name: AhmadJay Title:Director-Transportation Engineering, Transportation Engineering&Construction Management Date: 9/4/2014 2:08:27 PM Name: GossardTravis Title: Superintendent-Roads &Bridges, Road Maintenance Date: 9/8/2014 8:18:56 AM Name: TaylorLisa Title: Management/Budget Analyst, Transportation Administration Date: 9/8/2014 2:57:17 PM Name: ShueGene Title: Director- Operations Support.Transportation Administration Packet Page -927- 10/14/2014 16.A.23. Date: 9/9/2014 2:47:12 PM Name: KearnsAllison Title: Manager Financial &Operational Support,Transportation Administration Date: 9/10/2014 3:21:28 PM Name: DelateJoseph Title: Project Manager, Senior, Transportation Engineering&Construction Management Date: 9/11/2014 8:35:37 AM Name: MarcellaJeanne Title: Executive Secretary, Transportation Planning Date: 9/11/2014 4:50:48 PM Name: LynchDiane Title: Supervisor-Operations, Road Maintenance Date: 9/22/2014 4:16:47 PM Name: PepinEmily Title: Assistant County Attorney, CAO Litigation Date: 9/24/2014 2:41:04 PM Name: KlatzkowJeff Title: County Attorney, Date: 9/24/2014 4:09:08 PM Name: UsherSusan Title: Management/Budget Analyst, Senior, Office of Management&Budget Date: 10/6/2014 11:43:33 AM Name: KlatzkowJeff Title: County Attorney, Date: 10/6/2014 2:16:59 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 10/6/2014 4:53:26 PM Packet Page -928- 10/14/2014 16.A.23. PROJECT: Golden Gate Blvd. #60040 PARCEL No: 221RDUE FOLIO No: 39269480005 EASEMENT AGREEMENT THIS EASEMENT AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into on this day of , 2014, by and between JAMES A. BECKMAN AND KARLA BECKMAN, husband and wife, whose mailing address is 5610 San Miguel Road, Bonita, CA 91902-2212 (hereinafter referred to as "Owner"), and COLLIER COUNTY, a political subdivision of the State of Florida, whose mailing address is 3299 Tamiami Trail East, do the Office of the County Attorney, Suite 800, Naples, Florida 34112 (hereinafter referred to as "County"). WHEREAS, County requires a perpetual non-exclusive Road Right-of-Way, Drainage and Utility Easement over, under, upon and across the lands described in Exhibit "A", which is attached hereto and made a part of this Agreement (hereinafter referred to as the "Easement"); and WHEREAS, Owner desires to convey the Easement to County for the stated purposes, on the terms and conditions set forth herein; and WHEREAS, County has agreed to compensate Owner for conveyance of the Easement. NOW THEREFORE, in consideration of these premises, the sum of Ten Dollars ($10.00), and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, it is agreed by and between the parties as follows: 1. All of the above RECITALS are true and correct and are hereby expressly incorporated herein by reference as if set forth fully below, and all Exhibits referenced herein are made a part of this Agreement. 2. Owner shall convey the Easement to County for the sum of: $1,500.00 subject to the apportionment and distribution of proceeds pursuant to Paragraph 9 of this Agreement (said transaction hereinafter referred to as the "Closing"). County also agrees to pay the sum of $1,750.00 to Roetzel & Andress, c/o Attorney Kenneth A. Jones for legal fees and all other costs. Said aggregate payment of $3,250.00 (representing Owner's proceeds, attorney fees and all other costs) shall be paid at closing by County Warrant or funds wire transfer to Roetzel & Andress, c/o Attorney Kenneth A. Jones, 2320 First Street, Suite 1000, Fort Myers, Florida 33901-2904. and shall be full compensation for the Easement conveyed, including (if applicable) all landscaping, trees, shrubs, improvements, and fixtures located thereon, and shall be in full and final settlement of any damages resulting to Owner's remaining lands, costs to Packet Page -929- l `� 10V14/2014 16.A.23. Page 2 nure, including but not limited to the cost to relocate the existing irrigation system and other improvements (if aOv), and the cost to cut and cap irrigation lines (if any) extending into the EaSenlant, and to remove all sprinkler valves and related electrical wiring (if any), and all other damages in connection with conveyance of said Easement to County, including all attorneys' fees, expert witness fees and costs as provided for in Chapter 73, Florida Statutes. 3, Prior to Closing and as soon after the execution of this Agreement as is possible, Owner shall provide County with the following documents and instruments (prepared by County) properly ezeouted, witnessed and notarized where requinad, in a form acceptable to County (hereinafter referred to as "Closing Documents"): (a) Road Right-of-VVay, Oroinageand Utility Easement: (b) Instruments required removing, releasing or subordinating any and all liens, exceptions and/or qualifications affecting County's enjoyment of the Easement. (C) Closing Statement; (d) Grantor's Non-Foreign, Taxpayer Identification and "Gap" Affidavit; /alVN-gForm; and (f) Such evidence of authority and capacity of Owner and its representatives to execute and deliver this agreement and all other documents required to consummate this transaction, as reasonably determined by County, County's counsel and/or title company. 4. Both Owner and County agree that time is of the essence. TheP8f0[8. Closing shall occur within ninety (90) days of the date of execution of this Agreement or within thirty (30) days of County's receipt of all Closing OoCu[D8DtS, whichever is the later. This agreement shall remain in full force and effect until Closing shall occur, until and unless it is terminated for other cause At C|osinS, payment shall be made to Owner in that amount shown on the Closing Statement as Net Cash to the SeUer.^ 5. Owner agrees to relocate any existing irrigation system located on the Easement including irrigation lines, electrical wiring and sprinkler valves. etc. (if Bny), prior to the construction of the project without any further notification from County. Owner assumes full responsibility for the relocation of the irrigation system (if any) on the remainder property and its performance after relocation, Owner holds County harmless for any and all possible damage to the irrigation system in the event owner fails to relocate the irrigation system prior to construction of the project. If Owner elects to retain improvements and/or landscaping ("Improvements") located on the Easement (if any), the Owner is responsible for their retrieval prior to the construction of the project without any further notification from County. Owner ac:..knoVv|edges that County has compensated Owner for the value of the Improvements Packet Page -930- ��-~ 10/14/2014 16.A.23. Page 3 located within the Easement area, and yet County is willing to permit Owner to salvage said improvements as long as their retrieval is performed before construction and without interruption or inconvenience to the County's contractor. All Improvements not removed from the Easement prior to commencement of construction of the project shall be deemed abandoned by Owner. This provision shall survive Closing and is not deemed satisfied by conveyance of title. 6. Owner and County agree to do all things which may be required to give effect to this Agreement immediately as such requirement is made known to them or they are requested to do so, whichever is the earlier. 7. Owner agrees, represents and warrants the following: (a) Owner has full right, power and authority to own and operate the property underlying the Easement, to enter into and to execute this Agreement, to execute, deliver and perform its obligations under this Agreement and the instruments executed in connection herewith, to undertake all actions and to perform all tasks required of Owner hereunder and to consummate the transaction contemplated hereby. (b) County's acceptance of the Easement shall not be deemed to be full performance and discharge of every agreement and obligation on the part of Owner to be performed pursuant to the provisions of this Agreement. (c) No party or person other than County has any right or option to acquire the Easement or any portion thereof. (d) Until the date fixed for Closing, so long as this Agreement remains in force and effect, Owner shall not encumber or convey any portion of the property underlying the Easement or any rights therein, nor enter into any agreements granting any person or entity any rights with respect to the Easement, without first obtaining the written consent of County to such conveyance, encumbrance. or agreement, which consent may be withheld by County for any reason whatsoever, (e) There is no maintenance, construction, advertising. management, leasing. employment, service or other contract affecting the Easement. (f) Owner has no knowledge that there are any suits, actions or arbitration, administrative or other proceedings or governmental investigations or requirements, formai or informal, existing or pending or threatened which affect the E asement or which adversely affect Owner's ability to perform hereunder: nor is there any other charge or expense upon or related to the Easement which has not been disclosed to County in writing prior to the effective date of this Agreement. Packet Page -931- -- 10/14/2014 16.A.23. Page 4 (g) County is entering into this Agreement based upon Owner's representations stated in this Agreement and on the understanding that Owner will not cause the physical condition of the property underlying the Easement to change from its existing state on the effective date of this Agreement up to and including the date of Closing. Therefore, Owner agrees not to enter into any contracts or agreements pertaining to or affecting the property underlying the Easement and not to do any act or omit to perform any act which would adversely affect the physical condition of the property underlying the Easement or its intended use by County. (h) To the best of Owner's knowledge; the property underlying the Easement, and all uses of the said property, have been and presently are in compliance with all Federal, State and Local environmental laws; that no hazardous substances have been generated, stored, treated or transferred on the property underlying the Easement except as specifically disclosed to the County; that the Owner has no knowledge of any spill or environmental law violation on the property contiguous to or in the vicinity of the Easement to be sold to the County, that the Owner has not received notice and otherwise has no knowledge of: a) any spill on the property underlying the Easement; b) any existing or threatened environmental lien against the property underlying the Easement; or c) any lawsuit, proceeding or investigation regarding the generation, storage, treatment, spill or transfer of hazardous substances on the property underlying the Easement. This provision shall survive Closing and is not deemed satisfied by conveyance of title. 8. County shall pay all fees to record any curative instruments required to clear title, and all Easement instrument recording fees. In addition, County may elect to pay reasonable processing fees required by lien-holders and/or easement holders in connection with the execution and delivery of a Release or Subordination of any mortgage, lien or other encumbrance recorded against the property underlying the Easement; provided. however, that any apportionment and distribution of the full compensation amount in Paragraph 2 which may be required by any mortgagee, lien- holder or other encumbrance-holder for the protection of its security interest. or as consideration due to any diminution in the value of its property right, shall be the responsibility of the Owner, and shall be deducted on the Closing Statement from the compensation payable to the Owner per Paragraph 2. County shall have sole discretion as to what constitutes "reasonable processing fees." 9. There shall be deducted from the proceeds of sale all prior year ad valorem taxes and assessments levied against the parent tract property which remain unpaid as of the date of Closing. Furthermore, in accordance with the exemptions provided for in Section 201.01, Florida Statutes. concerning payment of documentary stamp taxes by County, Owner shall pay all documentary stamp taxes required on the instrument(s) of transfer. 10. This Agreement and the terms and provisions hereof shall be effective as of the date this Agreement is executed by both parties and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, personal Packet Page -932- _, 10/14/2014 16.A.23. Page 5 representatives, successors, successor trustees, and/or assignees, whenever the context so requires or admits. 11. If the Owner holds the property underlying the Easement in the form of a partnership, limited partnership, corporation, trust or any form of representative capacity whatsoever for others, Owner shall make a written public disclosure, according to Chapter 286, Florida Statutes, under oath, subject to the penalties prescribed for perjury, of the name and address of every person having a beneficial interest in the property underlying the Easement before the Easement held in such capacity is conveyed to County. (If the corporation is registered with the Federal Securities Exchange Commission or registered pursuant to Chapter 517, Florida Statutes, whose stock is for sale to the general public, it is hereby exempt from the provisions of Chapter 285, Florida Statutes.) 12. Conveyance of the Easement, or any interest in the property underlying the Easement, by Owner is contingent upon no other provisions, conditions, or premises other than those so stated herein; and this written Agreement, including all exhibits attached hereto, shall constitute the entire Agreement and understanding of the parties, and there are no other prior or contemporaneous written or oral agreements, undertakings, promises, warranties, or covenants not contained herein. No modification, amendment or cancellation of this Agreement shall be of any force or effect unless made in writing and executed and dated by both Owner and County. 13. Should any part of this Agreement be found to be invalid, then such invalid part shall be severed from the Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and not be affected by such invalidity. 14. This Agreement is governed and construed in accordance with the laws of the State of Florida. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written. AS TO COUNTY: DATED: ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA BY: Deputy Clerk TOM HENNING, Chairman Packet Page -933- 10/14/2014 16.A.23. Page 6 AS TO OWNER: DATED: Witness (Signature) 7//JAMES A. BECKMAN ,./ AL Name (Print or Type) .e/./..i.-„,,_,I,... /", , NYVitne4/(Signatiire) /---77/ Name (Print or Type) ..-:- (. (-- /...- -------„,„, // ---/- t Witness (Signature) /KARLA BECKMAN ( Name (Print or Type) .- / / " - ) e./ / // / ' :7 1 iineisisigntifr6) ;/ ---,--- , .,,:" ,1-- / \ i/ Name (Print or Type) Approved as to form and legality: ---;,- Assistant County Attorney /—, Packet Page -934- 10/14/2014 16.A.23. EXHIBIT "A" WEST 180' OF [RAM 107 BECKMAN SUBAUT OR 714/1382 OR 3984/1207 TRACT 74 TRACT 107 TRACT 108 GOLDEN GATE ESTATES UNIT 49 PLAT BOOK 5 PAGE 80 PROPOSED ROADWAY EASEMENT-7 PARCEL 221 RDUE 1 c/1.1-1 00 1,14 •44,.. 1'3+00 GOLDEN GATE BOULEVARD (CR 876) OFFTIO,-- _CO CS BOO-a/PAGE) 09F12, 11,10ADWAY, 1'31:A1h:ha AND 11-1,11/1.1L', IT>1.171N:3 111204.9WR'f EASEME1,:1 DE.9.ZATED Tc THE "9F' TA. 01- 1'1.131.15 PER 7';AT 01,DON .,-A;F 891 LEGAL DESCRIPTION FOR PARCEL 221 RDUE PC raTT,ON OF T1,1,14.7.- 197, C;3;...D9 1.1 0579 17;T4t-CIE. L1N 69 15 1?1,CoR11E11; 90 P L., PAC,L ci,F1 JJ 1-1.1:::a10 S Di- CZYL1-P, UNT1'. 1-LDRID,f•„ "SEC 11,01', 2 10 Vi.:,:5111:1 S111,,,11- RANGE 2-1' FAS-, 7Y, 1,1,3 1.4,21•11.2 DESORIBT:E" r73.:__OVIS 1-r 1,2,1717- '12E" „'1-- 7:7, FETE- 1711= -1-57 111,125" 757 E 77:AT :.211:1-5 12.55 / BD SKETCH & DESCRIPTION ONLY 111111111111111 NOT A BOUNDARY SURVEY SCAIX 1*,-1,3C* CLB.INP, ;;;;;VERNME10 111.1A.11:1 I GOLDEN GATE BOULEVARD DX TA I SKETCH & DESCRIPTION OF: PROPOSED Ea 0A1P4 AY EASEMENT I iTIN a I PACEL 001 ETWE ove Par:DA.2-A.tAr, COLLITIT COUNTY, YLORIDA two..,t,aaaa, & u -FAX L4.77i I . Packet Page -935- 10/14/2014 16.A.23. LOCATION MAP PARCEL 221 RDUE - GOLDEN GATE BOULEVARD PROJECT NO. 60040 (Not to Scale) mP .. >+t s p: F • sfi f ' r:`` ! `, r V V e {'" �— quip <xR , : f y i #� 1• S 4 5 -9AU s •Y ''n X - ` ear... f . >.v c "�.t ti..- PROPOSED EASEMENT #,. „ _4 ~° PARCEL 221RDUE +r. -,. , 1 - - - ',se *- EXISTING 50 FT.ROAD , pr' EASEMENT PER PLAT C' 4,T-3,--',,''',i '1'' - —:;-fix+,.,... :ass Packet Page -936- 10/14/2014 16.A.23. APPRAISAL OF PARCEL 221 RDUE GOLDEN GATE BOULEVARD EAST IMPROVEMENT PROJECT PROJECT#60040 ESTATE RESIDENTIAL PROPERTY GOLDEN GATE BOULEVARD EAST NAPLES,COLLIER COUNTY, FLORIDA PREPARED FOR: MR. HARRY HENDERSON, SRA COLLIER COUNTY GROWTH MANAGEMENT DIVISION 2885 HORSESHOE S DR NAPLES, FL 34104 REQUESTED BY: MR. HARRY HENDERSON, SRA DATE OF APPRAISAL: MARCH 5,2014 PROJECT NUMBER: 2014-01-221 PREPARED BY: KENNETH R. DEVOS,MAI, SRA 303 DONORA BOULEVARD FORT MYERS BEACH,FLORIDA 33931 Packet Page -937- 10/14/2014 16.A.23. KENNETH R. DEVOS, MAI, SRA State-Certified General Real Estate Appraiser#703 303 Donora Boulevard Fort Myers Beach,Florida 33931 (239)463-0074 FAX(239)244-3398 March 26,2014 Mr. Harry Henderson, SRA Collier County Growth Management Division 2885 Horseshoe S. Dr. Naples,Fl 34104 Re: Appraisal of Strip Acquisition Parcel 221 RDUE Golden Gate Boulevard Improvement Project Project#60040 660' East of Northeast Corner of Golden Gate Boulevard East and 12 Street NE Naples, Collier County, Florida PO#4500149481 Dear Mr. Henderson: In accordance with your request,I have made an appraisal of the above captioned property for the purpose of estimating the"Market Value" of the permanent easement interest in the property to be acquired,as described within the report, and damages to the remainder,if any. By Market Value is meant the most probable price in terms of money that a property should bring in a competitive and open market under all conditions requisite to a fair market sale; the buyer and seller,each acting prudently,knowledgeably and assuming the price is not affected by undue stimulus. This property is valued based upon its anticipated use as an estate residential tract. Due to the nature of the parent tract and the acquisition area, I have estimated only the value of the land. The function of this report is to serve in part as the basis for purchase of part of the property. The intended user is Collier County Growth Management Division.This is a Complete Appraisal in Summary Format. The date of the value estimate is March 5, 2014 which was the date of final property inspection. I have thoroughly analyzed the physical, sociological, economic, and governmental factors which influence the property's value. Based on my investigation and analyses, it is my opinion that the market value of the fee simple interests of the area proposed to be acquired from the subject property and damaged to the remainder,if any,was: PARCEL 221 RDUE NINE HUNDRED DOLLARS ($900) The following pages present the data and discussions which form the basis for our value conclusions. REAL ESTATE APPRAISERS & CONSULTANTS Packet Page -938- 10/14/2014 16.A.23. LETTER OF TRANSMITTAL PAGE TWO Information and statements furnished to the appraisers and contained in this report were obtained from sources considered to be reliable and believed to be true and correct. However,no responsibility for the accuracy of such items furnished the appraiser can be assumed by the appraiser. Disclosure of the contents of this report is governed by the By-Laws and Regulations of the professional appraisal organizations with which the appraiser is affiliated. Neither all nor any part of the contents of this report or copies thereof shall be used for any purpose by anyone but the client specified in this report. To the best of my ability, the analysis, opinions and conclusions were developed and the report was prepared in accordance with the standards and report writing requirements of the Appraisal Institute and USPAP. This appraisal is also subject to the underlying assumptions and contingent conditions contained in the attached report. I appreciate this opportunity to have been of service to you. If you have any questions with regard to this matter,please let me know. Respectfully submitted, Kenneth R. Devos, MAI, SRA State-Certified General Real Estate Appraiser #703 REAL ESTATE APPRAISERS&CONSULTANTS Packet Page -939- 10/14/2014 16.A.23. TABLE OF CONTENTS PART I—INTRODUCTION TITLE PAGE LETTER OF TRANSMITTAL TABLE OF CONTENTS APPRAISER'S CERTIFICATION 1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS 2 PHOTOGRAPHS OF SUBJECT 3 STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS 4 SCOPE OF THE APPRAISAL 6 PURPOSE OF THE APPRAISAL 7 FUNCTION OF THE APPRAISAL 7 IDENTIFICATION OF THE PROPERTY 7 DEFINITION OF MARKET VALUE 8 INTEREST APPRAISED 8 PART II—FACTUAL DATA—BEFORE ACQUISITION LEGAL DESCRIPTION 9 AREA, CITY,AND NEIGHBORHOOD DATA 10 PROPERTY DATA 23 SITE 25 IMPROVEMENTS NA FIXTURES NA USE HISTORY 26 SALES HISTORY 26 RENTAL HISTORY 27 ASSESSED VALUE AND ANNUAL TAX LOAD 27 ZONING AND OTHER LAND USE REGULATIONS 27 PART III—DATA ANALYSIS AND CONCLUSIONS--BEFORE ACQUISITION ANALYSIS OF HIGHEST AND BEST 28 LAND VALUATION 35 VALUE ESTIMATE BY THE COST APPROACH NA VALUE ESTIMATE BY THE SALES COMPARISON APPROACH 37 VALUE ESTIMATE BY THE INCOME CAPITALIZATION APPROACH NA CORRELATION AND FINAL VALUE ESTIMATE 37 PART VI—ACQUISITION ANALYSIS RECAPITULATION 39 PART VII—EXHIBITS AND ADDENDA PERTINENT EXHIBITS COMPARABLE DATA MAP DETAIL OF COMPARATIVE DATA QUALIFICATIONS OF APPRAISER REAL ESTATE APPRAISERS&CONSULTANTS Packet Page -940- 10/14/2014 16.A.23. CERTIFICATE OF APPRAISAL I certify that,to the best of my knowledge and belief,... the statements of fact contained in this report are true and correct. the reported analyses, opinions, and conclusions are limited only by the reported Assumptions and Limiting Conditions and are my personal, unbiased professional analyses, opinions,and conclusions. I have no present or perspective interest in the subject of this report and I have no personal interest of bias in respect to the parties involved. compensation is not contingent on an action or event resulting from the analyses, opinions,or conclusions in,or the use of,this report. my analyses, opinions, and conclusions were developed, and this report has been prepared,in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. the use of this report is subject to the requirements of The Appraisal Institute relating to review by its duly authorized representatives. As of the date of this study, I, Kenneth R. Devos, MAI, SRA, have completed the requirements of the continuing education program of the Appraisal Institute. I, Kenneth R. Devos, MAI, SRA, have made a personal inspection of the properties which are the subjects of this study. the appraiser has provided appraisal or other real estate services pertaining to this property in the last five years in the form of a prior appraisal. This appraisal is an update of the earlier report. March 26,2014 DATE Kenneth R. Devos,MAI, SRA State-Certified General Real Estate Appraiser #703 Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 1 Packet Page -941- 10/14/2014 16.A.23. SUMMARY OF IMPORTANT DATA AND CONCLUSIONS Location: The property is located 330 feet east of the northeast corner of Golden Gate Boulevard East and 12th Street NE, Naples, Collier County,Florida. There is no street address at this time. Owners: James A. &Karla Beckman 5610 San Miguel Rd Bonita, CA 91902 Purpose of Report: To estimate the market value of the permanent easement interest in"as is" condition. Function of Report: To serve as the basis for purchase of part of the property. Flood Zone: Flood zones AH: AH: "Flood depths of 1 to 3 feet(usually areas of ponding); Base flood elevations determined." Highest and Best Use: Estate Residential ESTIMATE OF VALUE: Parcel 201RDUE PARENT TRACT ACQUISITION REMAINDER INCOME APPROACH: NA NA NA SALES COMPARISON APPROACH: $25,750 $940 NA COST APPROACH: NA NA NA ESTI_MATED VALUE: $25,750 $940 NA Date of Appraisal: March 5,2014 Kenneth R. Devos,MM, SRA Golden Gate Boulevard East PCL 221 Page 2 Packet Page -942- 10/14/2014 16.A.23. SUBJECT PHOTOGRAPHS . . • t ti y yJ. 111` f ✓ b 9 t/ P t •";--'',4,3:— a t F� .,. ' f ?9 " fi e/ ` " S L r u x fic H ° , ."' i / e -,s t +. t.� O . i y var � € :y si : §tea .,§ yt}'.- 7!«t ? t r VIEW OF SUBJECT SEEN FROM SOUTH . .day, r k, "'as"`er ::,�.TM�" c, Sy. of �rN �., ..;,,,,..., '77-.., ..t*. :., ,.:,V ',..1%;;;;.*I.:* ,`,,,,-, :3,-.,-,.._ . ,. ;i X, .t: ,,,„',;-1,,,..: , V <s `' s, r w ' '`„ - �" -,-,.-z;' fur ems. . g ;.' q " ' i "4 ` T •*3. �e .ISM k t-,...- ,gyp :7.4-, ...,..7, �p1 +" t e yrr7 .a �j r `y13 _ f 14 to :� `;" :-A,,,,` �, + ��ti iw ',;- ' ` - ^sue.» �a -�y �,� vxi R ..1¢ tie ' . mi - .w 6.,,'y& „y, ,...7%---_:-.0 .r 1� a +e1 �t #F ±* r t n ��. a .... n a .a r _<< r, ' ».e, _ ' .,6 • L.is *******Y•* *************k****** *****A=****************k k K t*k*k��I***k k k AERIAL VIEW OF SUBJECT **:*******************************************�:********* ********* Kenneth R. Devos,MM, SRA Golden Gate Boulevard East PCL 221 Page 3 Packet Page -943- 10/14/2014 16.A.23. APPRAISAL OF PARCEL 221 RDUE GOLDEN GATE BOULEVARD EAST NAPLES,COLLIER COUNTY,FLORIDA ASSUMPTIONS AND LIMITING CONDITIONS In conducting this appraisal,your appraiser has assumed that: 1. Title to the land is good and marketable. 2. The property is appraised as though under competent management and responsible ownership and is free and clear of all encumbrances and liens other than those mentioned in this report. 3. The information supplied by others is correct, and the revenue stamps placed on the deeds used to indicate the sale prices are in correct relation to the actual dollar amounts of the individual transactions. 4. There are no hidden or undisclosed sub-soil conditions. No consideration has been given to oil or mineral rights,if outstanding. 5. All general codes,ordinances,regulations or statutes affecting the property have been and will be enforced and the property is not subject to flood plain or utility restrictions or moratoriums, except as reported to your appraiser and contained in this report. 6. The party for whom this report is prepared has reported to the appraiser no original existing conditions or development plans that would subject this property to the regulations of the Securities and Exchange Commission or similar agencies on the state or local level. 7. No responsibility is assumed by the appraiser for legal matters, nor is any opinion on title rendered herewith. 8. The appraiser herein,by reason of this report, is not to be required to give testimony in court with reference to the property appraised. unless arrangements have been previously made therefore. 9. The appraiser has made no survey of the property and assumes no responsibility in connection with such matters. Any sketch or identified survey of the property included in this report is only for the purpose of assisting the reader to visualize the property. The appraisal covers the property as described in this report,and the areas and dimensions as shown herein are assumed to be correct. I C. The distribution of the total valuation in this 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. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 4 Packet Page -944- 10/14/2014 16.A.23. APPRAISAL OF PARCEL 221 RDUE GOLDEN GATE BOULEVARD EAST NAPLES,COLLIER COUNTY,FLORIDA ASSUMPTIONS AND LIMITING CONDITIONS(CONTINUED) 11. No environmental impact studies were either requested or made in conjunction with this appraisal,and the appraiser hereby reserves the right to alter,amend,revise,or rescind any of the value opinions based upon any subsequent environmental impact studies, research or investigation. 12. Unless stated otherwise,no percolation tests have been performed on this property. In making the appraisal,it has been assumed that the property is capable of passing such tests so as to be developable to its highest and best use,as discussed in this report. 13. Unless otherwise states in this report, the existence of potentially hazardous material,which may or may not be present in this property,was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of such as asbestos, urea formaldehyde foam insulation, and/or existence of toxic waste may affect the value of the property. This value estimate is premised on the assumption that there is no such material on or in the property which would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. We urge the client to retain an expert in this field if so desired. 14. To the best of our ability,the analysis,opinions and conclusions were developed and the report was prepared in accordance with the standards&report writing requirements of the Appraisal Institute. 15. This appraisal recognizes that Collier County has enacted Growth Management legislation which may have an effect upon the development of this and other sites in the county. This legislation requires that a minimum Level of Service (LOS) either be present or be anticipated to be present prior to the need created by the proposed real estate development. To the extent possible, I have recognized the effects of this legislation which are indicated by the real estate market. I recommend that the client carefully monitor this situation to ascertain any future effects of this legislation of real estate activity and prices. 16. The Americans with Disabilities Act("ADA")became effective January 26, 1992. I have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property,together with a detailed analysis of the requirements of the ADA,could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since I have no direct evidence relating to this issue, I did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 5 Packet Page -945- 10/14/2014 16.A.23. SCOPE OF THE APPRAISAL This appraisal recognizes that the nature of the area to be acquired is such that the removal of this area has little or no effect on the overall property. Therefore,this appraisal will focus on the value of the subject land. In the estimate of the value of the Whole Property, this appraisal will reflect the price of suburban estate land. It recognizes the adequate number of applicable market data for the sale of estate land tracts in recent years. Indeed, there have been a sufficient number of sales of vacant estate tracts in this portion of Collier County during the past two(2)years. A portion of this property, however, is proposed to be purchased by the Collier County Growth Management Division for the expansion of the Golden Gate Boulevard East corridor east of Wilson Boulevard. To arrive at this value estimate, I have reviewed and investigated sales of vacant estate tracts which are located in the suburban part of Collier near this project. The sale properties contain property characteristics similar to those of the subject and are used as the basis for adjustment factors, if any are used. Each of these sale properties is a tract of vacant land usable for estate purposes which has zoning and other characteristics similar to those of the subject property. I have used the infoimation from these properties to generate a Sales Comparison analysis,each with an estimated value for the subject using that approach to value. I obtained data for this appraisal from public records as reported on the web sites for the Collier County Property Appraiser,as well as through the CoreLogic data service. All sales data are believed accurate and representative of the market which includes the subject property. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 6 Packet Page -946- 10/14/2014 16.A.23. PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of a portion of the property in permanent easement and recognizes the current undeveloped condition of the site. FUNCTION OF THE APPRAISAL The function of this appraisal is to serve as the basis for purchase as a permanent easement of 3,600 SF of the property located along the northern right of way line along the Golden Gate Boulevard frontage. (See acquisition area sketch). IDENTIFICATION OF PROPERTY The subject of this appraisal is a vacant estate property located on the north side of Golden Gate Boulevard East 660 feet east of 12th Street NE. The address is not yet assigned. The property is situated within an historical estate area,with easy access to Naples and other parts of Collier County via Golden Gate Boulevard (CR 876) and Collier Boulevard (CR 951). The property consists of a tract of estate zoned vacant land with frontage on Golden Gate Boulevard East. This appraisal is premised upon the use of the property as estate residential and deals only with the value of the land affected by the proposed acquisition. Kenneth R. Devos, MM, SRA Golden Gate Boulevard East PCL 221 Page 7 Packet Page -947- 10/14/2014 16.A.23. DEFINITION OF MARKET VALUE Market Value—As defined in the Agencies' appraisal regulations,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 are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: -Buyer and seller are typically motivated; -Both parties are well informed or well advised, and acting in what they consider their own best interests; -A reasonable time is allowed for exposure in the open market; -Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and -The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 2010 Interagency Appraisal and Evaluation Guidelines, Department of the Treasury, Office of Comptroller of the Currency,Board of Governors of the Federal Reserve System,Federal Deposit Insurance Corporation, Office of Thrift Supervision and National Credit Union Administration under 12 CFR Part 34, Real Estate Appraisals and Title XI of the Financial Institutions Refoi��i, Recovery and Enforcement Act of 1989 ("FIRREA"), and the Interagency Appraisal and Evaluation Guidelines, Federal Register, Volume 75,No. 237, December 10, 2010, P 61-62 PROPERTY RIGHTS APPRAISED The property rights appraised are all the rights inherent in permanent easement ownership. An easement estate is defined as "an interest is real property that transfers use,but not ownership, of a portion of an owner's property." (The Appraisal of Real Estate, 13th Edition 2008,Page 117) Kenneth R. Devos,MM, SRA Golden Gate Boulevard East PCL 221 Page 8 Packet Page -948- 10/14/2014 16.A.23. PART II—FACTUAL DATA—BEFORE ACQUISITION LEGAL DESCRIPTION: The legal description for the Parent Tract, aka the Whole Property,is taken from the legal description posted on the Collier County Property Appraiser's web site. The tract is located in Section 2,Township 49 S,Range 27 East, Collier County,Florida, as described as the West 180 feet of Tract 107, Golden Gate Estates Unit 49 (PB 5,page 80)Collier County, Florida. STATEMENT OF OWNERSHIP AND HISTORY According to information from the Collier County tax roll,this property is owned by James A. & Karla Beckman, 5610 San Miguel Road, Bonita, CA 91902. The property has been in this ownership for more than the last five(5) years. There are no transfers of the property which are applicable to use in the estimate of value. DATE OF INSPECTION AND EFFECTIVE DATE OF APPRAISAL The subject property originally was inspected and photographed on March 5, 2014. This is the Date of Value. DATE OF REPORT This appraisal report is dated March 26,2014 as is indicated on the Letter of Transmittal. EXPOSURE TIME During the investigation of market data for this assignment, I have estimated that the Exposure Time for the subject property, the period prior to the date of value necessary to result in the sale of the property,would be within a range of 6 to 12 months. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 9 Packet Page -949- 10/14/2014 16.A.23. COLLIER COUNTY REGIONAL MAP 5 \\ Estero,. /' °9, -- fistera 11jm`mokalee ______ li2.Eo ita Springs Ave Maria I 4 II 1-d _. Pig Cypress - 11 antlerhilt Beach ----- 4,Sunnilantl Reservation !Naples Park Itl 1 I .�_ 1 I Z I It North Naples-- s<__ --..._.... ................. 1 Maples -"'-- Q— s 3b.•'it- 1' C i Deep Lake 't nsk pnii ,I. Il Jerome it I Maico Island • —` //I,, `.Copeland ■ i I —%GOOtlland tJ Big CyPgrreessrbrle ational a I Ochopee Everglades Car -= .......— _ i.Everglades hp l �>. Eaereledes tip Chokoloskee • Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 10 Packet Page -950- 10/14/2014 16.A.23. COLLIER COUNTY AREA DISCUSSION The subject property is located in Collier County. Naples is the county seat of Collier County. Situated on the Gulf of Mexico, Collier County is one of six counties, Sarasota,Charlotte, Glades,Hendry, Lee and Collier,which constitute the area known as the Southwest Florida Region. Major cities located in this portion of the state include Sarasota, Venice,Port Charlotte, Cape Coral, Fort Myers and Naples. PHYSICAL FEATURES With a land area of 1,994+/- square miles (1,276,160+/- acres), Collier County is the second largest County in land area in Florida. Collier County is bound on the north by Lee and Hendry Counties,on the east by Broward and Dade(Florida East Coast) Counties, on the south by Monroe(Everglades and Florida Keys) County, and on the west and southwest by the Gulf of Mexico. The coastal shoreline extends a total of 675.2 miles,much of which is the environmentally sensitive Ten Thousand Islands, located south and east of Naples. The beaches are located along the extreme western portion of the County. The County's topography is flat lowland which ranges in elevation from a high of 44 feet above sea level near Immokalee in the northern portion, to a low of 3.3 feet at Everglades City in the southern portion. Approximately 64% (816,742+/-acres) of the County is classified as fresh water and salt water wetlands. These areas are not habitable. Land uses in the County consist of residential, commercial, light industrial, open and recreational, institutional, and agricultural. In 1997, approximately 277,279 acres or 22%of Collier land was used for cash crops on 235 farms. In 2002 that acreage number decreased to 180,852 or 14%but the number of farms increased to 273. In 2007 the number decreased further to 109,934,with an average of 341 acres per farm. Of this, 63%was for crops, 29%was for irrigated crops and 9%was for citrus. The majority of housing and commercial/industrial development has occurred along the western portion of the County surrounding Naples. The city of Naples has very little undeveloped land,but the surrounding unincorporated areas can accommodate growth for decades to come. The climate is subtropical with an average annual temperature of 74 degrees F.; average winter temperature has a high range of 74 to 78 degrees F. and a low from 48 to 52 degrees F.; average summer temperature is 91 degrees F. Average annual rainfall is 50 to 55 inches per year of which approximately 80% falls between May and October,the rainy season. Kenneth R. Devos, MM, SRA Golden Gate Boulevard East PCL 221 Page 11 Packet Page -951- 10/14/2014 16.A.23. COLLIER COUNTY AREA DISCUSSION (CONTINUED) Collier County is composed of several communities,most of which are located along the westerly edge. They include the City of Naples,North Naples,East Naples, Golden Gate, Marco Island and the rural community of Immokalee. TRANSPORTATION Throughout the western, central and southern portions of the County,there are major arterial roadways. The Tamiami Trail (U. S. Route 41) is predominately a four and six-lane divided highway which runs in a north-south direction from Tampa until it reaches Naples, 150 miles to the south, then turns and runs eastward across the southern portion of the County until it reaches the Miami area, 110+/- miles east of Naples. Interstate 75 parallels U. S. Route 41 approximately five miles to the east until it reaches Naples. There it continues as two-lane 1-75 / State Road 84 (known both as Everglades Parkway and Alligator Alley) and transects the central portion of the County in an east-west direction. This road connects the area with Fort Lauderdale/Miami on the East Coast of Florida and is part of the I-75 system. Throughout the westernmost populated areas there are other State as well as County roadways running in both north-south and east-west directions which allow good vehicular traffic flow. Public ground transportation is available through Greyhound Bus, operating from Naples on a daily basis. Naples Airport has commuter service to Miami and Tampa for connections with major airlines. The area also is serviced by Southwest International Airport in Ft. Myers. Collier Area Transport(CAT)provides bus service within the Naples urban area as well as much of the surrounding suburban and some rural areas. Busses run on scheduled routes and provide local transport within the area. POPULATION Because of its natural assets, i.e., sandy barrier beaches,mangrove islands and subtropical climate, Collier County, especially the Naples/Marco Island area,has experienced a steady upward trend in demand over the last 25 years. Since 1970, the Collier County,Naples area has experienced a very high growth rate. According to the latest figures published by the Census Bureau, the Naples area is one of the fastest growing S.M.S.A.'s (Standard Metropolitan Statistical Areas), in the United States, on a percentage basis. Between the years of 1980 and 1990, the Collier area population climbed from 85,971 people to 152,099 people, representing a change of 77%or an average annual rate of change of 7.69%. From 1990 to 2000,population increased to 251,377, or an annual increase of 6.5%. As of 2007,population had increased to 333.858, an increase of 32.8%or 4.7%per year. The estimated population as of 2009 was 333.032, a slight decrease from 2007. As of the 2010 census, the population had declined further, to 321,520. The US Census Bureau,however, estimated an increase to 328,134 persons in 2011, to 332,427 in 2012 and to 333,663 in 2013. In the addenda I have presented a chart showing both the historical and future population estimates for the County from 1960 to 2040. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 12 Packet Page -952- 10/14/2014 16.A.23. COLLIER COUNTY AREA DISCUSSION (CONTINUED) The figures include only legal residents. Many winter and part-time residents own homes in Naples/Collier County,but maintain legal residences elsewhere and are not reported in these figures. The State of Florida historically has attracted a large number of retirees. Collier County reflects this pattern with a large older population. These older,retired individuals live primarily along the coastal areas of the state similar to the Naples/Collier County area. In the addenda I have presented a summary of the age distribution for the Naples/Collier County area. While the number of births usually exceeds the number of deaths each year,the main force of population growth is inmigration of new households,particularly retiree households. More than half of the population growth is attributed to immigration. The number of persons per household declined 13.5%between 1970 and 1980, or from 2.88 persons to 2.49 persons per household. As of 1990, County-wide average persons per household has decreased to 2.40. It has remained at that level through 1997. Local planning agencies had projected this trend. This also indicates that the population of Collier County would grow predominantly through inmigration from other areas of the country and state. Between 2000 and 2004, only 7.9% of the population increase was due to births, the balance(92.1%)due to inmigration. The low numbers of persons per household suggests the majority of economic expansion will be dependent on the construction and service industries. As the population gets older, and more people inmigrate to the area, demands for new housing, retail trades, and support services are required. This will generate new employment opportunities and attract younger families into the area. Since that date,however, the trend has reversed. As of 2000 the number of persons per household increased to 2.44 and remained at that level as of 2003. A slight decrease to 2.43 in 2007 and to 2.41 in 2010 seems to indicate a drop among families. Further signs of this trend emerged as the 1991 public school student population increased to 21,855 people which represents an increase of about 26% over 1987. Statistics for 1996 indicate a student population of 28,177, a further increase of 5.8%per year. As of 2003, the student enrollment for K through 12 was 41,154, an increase of 6.6%per year for the intervening period. The number further increased to 48,866 as of 2007, an expansion of 18.7% or 4.7%per year. As of 2010,however, the enrollment decreased to 46,465. This later data demonstrate the decrease in family size as a result of families with children in the home leaving the area due to the economic downturn subsequent to 2007. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 13 Packet Page -953- 10/14/2014 16.A.23. COLLIER COUNTY AREA DISCUSSION (CONTINUED) HOUSING According to the 1980 census data, the County's housing stock expanded to 50,743 units from 17,580 units in 1970, a total increase of 188.6%or an annual average of 3,316 units. Total housing stock in 1987 was estimated to be 78,774 which indicates an average increase of 4,004 units per year between 1980 and 1987. By 1990, there were 94,165 housing units in the market area. That figure states that the market area housing stock has grown by a net annual average increase of 3,848 new housing units per year between 1987 and 1990. These figures are considered reasonable in light of current growth trends,particularly the second home market (non-legal residents). Construction of residential properties in Collier historically has favored multi-family units over single family detached units. This is evident in the statistics for 1990 through 2004, as shown on the chart in the addenda. Likewise, the number of units constructed during that period has fluctuated significantly from year to year. Some of this is in response to economic pressures, both within Collier County and elsewhere. It also demonstrated the market's reaction to the construction of more units than can be absorbed within a time period. For example,after a banner year in 1990, apartment construction decreased by almost 50%in 1991. That was followed by an increase in 1992 but to levels less than 1990. The trend continued generally upward through the peak in 2001,when permits for 4,350 apartments were granted. Since then, the number of permits in most years has dropped to be similar to construction of apartments in the mid 1990's. The one exception was in 2005, when 5,468 permits for apartments were issued. This statistic seems to foretell the rapid expansion of demand and prices experienced in 2006, the height of the real estate market in southwest Florida, including Collier County. Similar trends are found in the single family market. After the drop in numbers in 1991, this market segment generally has increased in numbers,with the 2004 total about 50%higher than that of 1990. 2005 proved to be a banner year for residential construction in Collier County. During that 12 months, the county granted permits for 10,651 single family houses. That was an increase of about 220%over the prior year. Likewise, multi-family permits increased to 1,266 for 5,468 units, a growth of 109%. These statistics reflect the strength of the local and national economies, with very low unemployment, especially in Southwest Florida. Kenneth R.Devos,MM, SRA Golden Gate Boulevard East PCL 221 Page 14 Packet Page -954- 10/14/2014 16.A.23. COLLIER COUNTY AREA DISCUSSION (CONTINUED) Unfortunately, the years 2006 through 2009 experienced significant decreases in all residential construction. The total number of units permitted in 2006 was only 7,261, a decrease of 73% from the prior year. The figures for 2007, 3,168 units, indicate a further decrease of 56%. The figures for 2008 and 2009 have followed that trend,with a decrease of about 52% from 2007 and 14%from 2008. 2010 experienced an increase in activity,with 34%more units in 2010 than 2009. 2011 continued that trend with a 7%increase over 2010. The data for 2012 indicated a further increase of 34%. (See the chart in addenda for details.) The influx of retirees and non-resident second home buyers causes strong seasonal swings in the local economy. A large share of the retirees only resides in the area during the winter months. Some maintain second homes in the area and others lease dwellings on a seasonal basis. The County Planning Department estimates that during the winter,the population increases as much as 35%. Additionally, according to the Collier County Hotel/Motel Association, approximately 75,000 transient guests are accommodated in Collier County hotels and motels during the peak of the winter season(March). As the population,household and housing stock figures indicate, second home buying has been popular in Collier County. Every type of housing product offered in the County has appealed to second home buyers in the local market,but condominiums have definitely been the most popular. In these past few years the second or vacation home market is estimated to have accounted for at least one-third of all housing demand. Housing units classified as seasonal or recreational comprise about 70 percent of all the vacant units and are indicative of the large number of second homes in the County. Removal of these "occasional use" units indicates a vacancy rate of approximately seven percent. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 15 Packet Page -955- 10/14/2014 16.A.23. COLLIER COUNTY AREA DISCUSSION (CONTINUED) GROWTH MANAGEMENT In January 1989,both Collier County and the City of Naples enacted legislation to implement the Florida Growth Management Act on a local level. An extension of the state mandated land use plans enacted in the late 1970's,this new legislation attempts to establish a relationship between development of real estate and the availability of support facilities such as roads,utilities, schools, parks,police and fire protection. Development of new properties will be guided by the availability of a minimum Level of Service (LOS) for the property. The developer must demonstrate that the proposed development will not exceed the LOS which currently is available, or specifically planned for completion, either by public or private means,prior to the completion of the development and the creation of the additional need. In some instances, this may result in either the increase in development costs or delays in development as the developer is required to pay for needed improvements or wait until the public agency, either county or city, is able to provide these improvements. This program became effective in April 1990. Based upon information which I have gathered, it appears that the subject property will not be affected adversely by these guidelines. EMPLOYMENT Because the County is to a great extent tourist oriented,in 1988 the number of service (28.3%) and wholesale and retail trade (22.8%) jobs was high,representing 51%of total employment. The next largest category was agriculture, forestry and fisheries at 20.4%, followed by construction at 10.2%and finance, insurance and real estate at 6.77%. Manufacturing, transportation, communications and public utilities,and publications made up the remainder. In 1993, service(33.3%) and wholesale and retail trade(24.4%)jobs increased their position in the workforce, representing 57.7%of total employment. The next largest category was agriculture,forestry and fisheries at 17%, followed by construction at 8.3%and finance, insurance and real estate at 6.3%. Manufacturing, transportation, communications and public utilities, and publications made up the remainder. In 1995, the numbers were similar with a small amount of shifting within categories. Service (32.6%) and wholesale and retail trade(28.4%)jobs increased their position in the workforce, representing 61%,of total employment. The next largest category was agriculture, forestry and fisheries at 16.5%. followed by construction at 9.8%and finance, insurance and real estate at 6.6%. Manufacturing, transportation, communications and public utilities, and publications made up the remainder. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 16 Packet Page -956- 10/14/2014 16.A.23. COLLIER COUNTY AREA DISCUSSION (CONTINUED) In 2004, the numbers showed a shift toward the service sector. Service(50%)jobs increased their position in the workforce and wholesale and retail trade(19%)jobs decreased their position in the workforce,representing 69%of total employment. The next largest category was construction at 15%followed by agriculture, forestry and fisheries at 6%, and finance,insurance and real estate at 6%. Manufacturing,transportation, communications and public utilities, and publications made up the remainder. In 2008,the numbers remained fairly stable. Service(53.3%)jobs increased slightly while the wholesale and retail trade(26.26%)jobs retained their position in the workforce,representing 79%of total employment. The next largest category was health at 14%,a significant increase, followed by finance,insurance and real estate at 6.3%, and agriculture, forestry and fisheries at 4.98%. Manufacturing,transportation, communications and public utilities, and publications made up the remainder. In 2009 and 2010, the numbers in all areas remained fairly stable. Overall work force numbers were 100,292 (2009) and 98,906 (2010). They began to increase in 2011 (102,886), a trend which continued in 2012 (105,937) (See the chart in the addenda for a complete breakdown for these years by category) Since the local economy is heavily dependent upon a somewhat seasonal agricultural and tourist industry,the County, as well as Southwest Florida,has been seeking new light manufacturing industries to help stabilize the economic base. To date no new major corporation has completed or announced the construction of manufacturing facilities in Collier County. The tourism and service industries will remain the primary industries in the Naples,Collier County area for years to come. A great number of large planned unit developments and condominium projects are under construction within Collier County. The greatest concern facing this area is maintaining a proper balance between the supply and demand for housing, and staying ahead of the growth by providing proper infrastructure support,roads, schools, etc. The County, as well as Southwest Florida,has been seeking new light manufacturing industries to help stabilize the economic base. The figures for 2010 indicate that 125,364 persons were employed in Collier County from a work force of 143,150. This is an unemployment rate of 12.4%. This contrasts with the figures for the prior four years which indicate a significant increase of the rate from the low of 2.7%in 2000 and 2001 to a high of 4.2%in 2003, before decreasing to a 2004 level of 3.1%and the similar level in 2005. The average rate for 2006 (2.7%) continued that earlier trend but the rates for 2007 (4.0%) and 2008, at 4.9%, indicate the effects of downturns in both the real estate and general markets. The statistic for 2009 shows the extreme effect the economic downturn has had on local employment, with unemployment increased to 9.1%and escalating in 2010 to 12.4%. Kenneth R. Devos, MM, SRA Golden Gate Boulevard East PCL 221 Page 17 Packet Page -957- 10/14/2014 16.A.23. COLLIER COUNTY AREA DISCUSSION (CONTINUED) Fortunately,this trend has reversed in the subsequent period. In 2011 average employment went to 128,670 from a workforce of 144,890, an unemployment rate of 11.2%. This rate has decreased further as of 2012 to 8.5%and in 2013 to only 6.7%. This information is found in the addenda. As previously stated,rapid growth has been caused by the population in-migration from the north and the accompanying need for construction of homes and expansion of businesses, services and schools. Total employment in the County has more than doubled in the past decade. Unemployment in the years prior to the recession was observed to be less than 5%of the work force on an annual average but that figure is known to be distorted by the large number of seasonal agricultural workers resident in the northeastern part of the County. Most employment growth is the result of expansion of existing businesses and the formation of new service and retail firms. An economic development office has been established and local business leaders have expressed interest in attracting new employment. Few major employers, however,have indicated any desire to move into the local area. In the past years,new light industrial growth in Collier County has occurred primarily in the area adjacent to and northeast of the municipal airport. An industrial area also exists north of Pine Ridge Road between Airport Road and US-41. The construction industry has been the major force affecting the industrial areas today. All areas of the County come under the jurisdiction of the County Government except Naples and Everglades City, incorporated cities which function as independent municipalities. The County is governed by a Board of Commissioners consisting of five elected members. As mandated in the Florida Statutes, each County has formulated a Comprehensive Plan for future growth and development with the intent of implementing it in order to provide a balance between individual rights and community rights, and to supervise future growth and development in regard to the services the County is able to supply, i.e., water, sewer, schools and roads. To be prepared for continuous change,the Comprehensive Plan is updated every four years. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 18 Packet Page -958- 10/14/2014 16.A.23. COLLIER COUNTY AREA DISCUSSION (CONTINUED) The trends in the County over the past decade,prior to 2006,have been increasing in population, housing, employment, family income, and general real estate values. This has been due primarily to its location on the Gulf of Mexico and its subtropical climate which attract new residents. The economy of Collier County had been growing with the population and increased tourist activities created by the expanding hostelry industry. The economy is highly dependent on the service,trade,and retail sectors. A more diversified economic base,with light industries, would create a more stable economy which is less dependent on tourism. Nonetheless,the physical, social, governmental and economic influences throughout Collier County have provided a positive atmosphere over the past two decades. This trend has been altered as a result of the recent recession, making marked decreases in economic statistics since 2006. This trend has continued through 2012 and 2013, when employment data and real estate value information seem to indicate a general improvement in those areas. The long term future expectations are for the upward trends to continue, enhancing the value and desirability of all types of properties. SUMMARY: Collier County has experienced a very rapid growth pattern through 2006,with a significant decrease in economic activity, especially construction and employment, in the years immediately after. This resulted in a decrease in the development of real estate and the contraction of the economic base. While in the past the growth has been primarily in the retiree section of the population,recent years had brought an increasing number of younger families. With the recent enactment of the county's Growth Management Act, the pace and direction of growth will have specific guidelines under which to progress. This will allow continued development while providing for the inclusion of needed support facilities. While the recent economic situation indicated a continued low level of construction and related real estate development, overall trends for the area indicate that a return to a positive growth is probable. Construction has experienced an increase in activity which, while lower than the peak years prior to 2006, seem to indicate that there are positive signs for the local economy. Based upon the events of the recent past and knowledgeable projections for the future, the outlook for a return to continued growth in Collier County is favorable. 02272014 Kenneth R. Devos, MAI, SRA Golden Gate Boulevard East PCL 221 Page 19 Packet Page -959- 10/14/2014 16.A.23. MARKET AREA MAP , ,-- , ------i--- _ ,.._ o = I 1 _ ,..)— ■ 1,, , 1 ,.------ — : ----(% _41 Vandwdilt Beech Rd I 1 1 I _____ ! •••!! 7...____! , 1 _.! I I I i I I co .8,U$JECT DARCELS tn iii ■I ..,, ,■■•/ I I ' / CL2 1 j i I Y l 1 GCLDEN GATE BLVD W LDEN GATE BLV *—...6-1_DEN GATE—BLVD W I I I G; I I i 1 I 1 I, i . _ 1 I i I w tE 1 i' ..-- e ,.: i ! 1 I ' I ! ' ! ! I I' 3-, '1 ' . 1. , , ■.,_2_, : :, t I 1 ! 1 i" i 1 € '' 1 i 1 7- ■ . ! , . _l______ : ; ............ , ■ 1 . , -- - ! r , ., ' , 1 ii r I Kenneth R. Devos,MM, SRA Golden Gate Boulevard East PCL 221 Page 20 ,,, Packet Page -960- 10/14/2014 16.A.23. MARKET AREA DESCRIPTION This property is located in Naples, in east central Collier County. This area predominantly has been used as residential properties,with single family estate houses. This residential development supports limited commercial development located at the intersection of Golden Gate Boulevard and Wilson Boulevard.Additional commercial properties are located along the western side of the Market Area's western boundary, CR 951 (Collier Boulevard). These roadways, Golden Gate Boulevard, Wilson Boulevard and Collier Boulevard,are the major roadways in the area. This market area, formerly known as the neighborhood,of which this property is a part includes the eastern portion of Collier County east of the Golden Gate city center. It is bounded by the following: On the North: Vanderbilt Beach Road On the East: Everglades Boulevard On the South: White Boulevard/Frangipani Avenue On the West: Collier Boulevard(CR 951) The overall nature of this area is residential, primarily estate single family detached houses. Residential estates comprise the largest portion of the total properties in the area, with 69% of the total number of properties. This is followed by the vacant single family tracts,which make up another 28% of the total. Estate single family residences are found throughout the area. The houses are mostly CBS of between 1,001 sf and 1,500 sf. (32%),with another 25%being between 1,500 sf and 2,000 sf and 13%between 2,001 sf and 2,500 s£ This indicates the moderate economic level found throughout the area,with many residents being middle income office and service workers. Even so, the age of these improvements, with 81% of the houses built between 1981 and 2010, indicates a stable population. Only about 20% of these houses were constructed during the "boom" years between 2001 and 2010 and county records list minimal construction since that date. Most recently, however,there seems to be a resumption of building,with numerous houses under construction as of the inspection dates. Within the neighborhood,the pattern of development corresponds closely with the nature of the road on which the property is located. Thus,the properties located even on the major roads,such as Golden Gate Boulevard,Wilson Boulevard and Everglades Boulevard,as well as those on the side streets are developed as estate residential. The properties located at the single intersection of Golden Gate Boulevard and Wilson Boulevard are the only commercial developments in this Market Area. This seems to he evidence of Collier County's continuing program encourage the semi-rural estate residential character of the area and prevent a more intense use of these properties. Kenneth R. Devos, MAI, SRA Golden Gate Boulevard East PCL 221 Page 21 Packet Page -961- 10/14/2014 16.A.23. MARKET AREA DESCRIPTION (CONTINUED) According to the Collier County Property Appraiser's information, the subject's Market Area contains 5,798 properties. Of these, 69%are listed as estate single family houses with another 28% are listed as vacant residential. Only 1% is shown as commercial. Properties such as the subject recognize the need for estate residential uses in this area. The subject location provides it reasonable travel time to and from other parts of Naples. These properties are part of the overall Golden Gate Estates subdivision. Created in the early 1960's, the development consisted primarily of five (5) acre estate residential tracts located in the eastern portion of the Naples urban area. This development encompassed land from just west of CR 951 along the route of SR 84 (now Interstate 75) east as far as DeSoto Boulevard. The massive development extends from US 41 on the south as far north as CR 846. The original marketing plan was to sell these properties as 5 acre estates. Resistance to this plan resulted in the developer, GAC, subdividing many of the tracts to as small as 1.14 acres. This plan boosted sales but also resulted in county zoning regulations which prevented further division of the properties. Another unusual aspect of the development was the use of permanent easements rather than dedicated rights of way for both the frontage roadways and the drainage canals which serve these properties. Thus the areas of the right of way for these roads and canals,such as Golden Gate Boulevard and the Golden Gate canal, are included in the area calculations for the adjoining estate tracts, even though these areas do not contribute usable area. Their primary benefit is that they establish the gross land area which is used to determine the size of the improvements which can be constructed on the properties. Considering the typical size of most houses in the subject Market Area,this consideration seems to have little practical impact. SUMMARY: The residential portion of this area contains significant amounts of land available for construction of new improvements. Existing development for the most part is experiencing moderate to low sales levels. Although demand in recent years for residential space has been restricted by the economic conditions, historically the demand for such space has been met by available supply. As overall economic conditions continue to improve, it is anticipated that a return to higher sales levels as well as creation of additional houses,as has been seen in the area,is a reasonable and realistic prospect. Kenneth R. Devos,MAI. SRA Golden Gate Boulevard East PCL 221 Page 22 Packet Page -962- 10/14/2014 16.A.23. SITE SKETCH 106.3 1 I1 ,sr 180 150 150 180 ! 18C 107 108 107 107. 1 1 108. 1 108 I #q) I GOLDEN GATE BLVD Kenneth R. Devos,MM, SRA Golden Gate Boulevard East PCL 221 Page 23 Packet Page -963- 10/14/2014 16.A.23. AERIAL PHOTOGRAPH TOTAL PARENT TRACT li;.L - a� -� w, '' . ',, 1/4,„:;''''''' s - _ �" '" �4� - to W .. ;.,�, ,• 1 Ay;'ir [4 4 y- , � i� M ice.^".1 ���� � � � s >' ,'.4;--:r * '" 4 ' r {i '�k .L^ a ie , _ , -..., . 1°1 . Y:-.....-.7":. - Ailv,"44- .-,;,,,,,'"::. ,t,..i,Y....„,../0 '. a� t '. dg ,f r "P ' 4 S, bx+4 f T -r''''''' Y "" W i- is :'N ,:::-..,p,„.4, s ' ° .f.'6. sF- L- 1,-`7-i: .' 14 E sou e :L ,, f,�,°' aaa,�y : ' "7, „r" `.�`- a" ', ^ '',.;,.• +'� � 1.1"-i--;� ,tom �'x. ,�" r.*L- ' ,�wG ,�, �g _ i� .�� :,f "7R,rvt.,"i.'""a' j, � �'p� �$"�` -�'"'r� ".cam .�«c "AS 'Gir t •PL` +c?, F :u. c toe , ,a . .-- .-:1,..:4477.-,:.up...4,:vi "..*:.,-::•,. 1, -..'"ic7,',..':',.4.,.':17 iiii,.,,,,,....:.:,::::::77 :u r ; n a.n F+n _":t ...z. �' aI' r. a,. � 'w:, Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 24 Packet Page -964- 10/14/2014 16.A.23. SITE DATA Location: This property is an estate residential zoned tract of land currently vacant. It is located 660 feet east of the northeast corner of Golden Gate Boulevard East and 12th Street NE. This property is in Section 2, Township 49 South, Range 27 East. Land Area: The property which is considered as the Parent Tract for this appraisal contains an area of 2.81 acres of land, as shown on the Collier County Property Appraiser's files. Shape: The site is rectangular Dimensions: The site is 180' wide (on the northern and south property lines),680' on the west and the eastern property lines(as taken from the Collier County Property Appraiser's map). Frontage: The site has frontage on Golden Gate Boulevard East on its southern property line(180'). Topography: Based on a physical inspection as well as topographic maps for the property,the site appears to be level and about at grade with adjacent roadways. Drainage: On site drainage is to the south to the roadway on that side of the site. Soil Characteristics: Based upon an inspection of the site,the soil a combination of gray sand with some coral rock and shell.This is typical of this area and should allow its use as estate residential. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 25 Packet Page -965- 10/14/2014 16.A.23. SITE DATA(CONTINUED) Utilities: Electric and telephone are available at the tract. Water is provided by on-site well. Sanitary waste is handled by septic system. Trash is handled by private service. Police and fire protection are provided by the Collier County. Easements: A road easement of 50 feet along the southern property line. This is the northern half of the current right of way for Golden Gate Boulevard East. DESCRIPTION OF THE IMPROVEMENTS The subject property is vacant and wooded. FIXTURES As this estimate deals with vacant land,this section is not applicable. USE HISTORY This property,as well as much of the surrounding land, can be used for estate residential purposes, specifically single family houses. This site currently is vacant. There is no evidence that any other use has been made of this property. SALES HISTORY The most recent transfer of this property was via a Warranty deed in October 1977. This sale is considered not pertinent to the estimate of land value as is presented here due to the length of time since the sale. Kenneth R. Devos, MM, SRA Golden Gate Boulevard East PCL 221 Page 26 Packet Page -966- 10/14/2014 16.A.23. RENTAL HISTORY Since the subject is vacant and rentals of vacant land, especially residential, seldom reflect the underlying value,the rental status is not relevant to this appraisal. ASSESSED VALUATION AND TAXES: The assessed value for this estate residence with 2.81 acres of land in 2013 was$14,893. Taxes for that year were$177.71. This amount has been paid. ZONING: E,Estate Residential by Collier County. This classification allows for single family houses on estate tracts. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 27 Packet Page -967- 10/14/2014 16.A.23. HIGHEST AND BEST USE—BEFORE ACQUISITION As defined in The Appraisal of Real Estate. 13th Edition, Highest and Best Use is: "the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported,and financially feasible,and that results in the highest value."(Page 277-78) An analysis of the Highest and Best Use of a property is the most important part of the appraisal process because it is in terms of highest and best use that market value is estimated. This study and selection of highest and best use is based on available data about what uses are legal, possible, appropriate and feasible for the site. HIGHEST AND BEST USE: Based on this discussion of uses which are legal, physically possible, appropriately supported and financially feasible, it is my opinion that the Highest and Best Use of this property is as estate residential. Based upon the existing and anticipated development along this portion of Collier County, such a use pattern is consistent with existing and anticipated growth in this part of the county. LEGAL USE: This property is zoned E, which allows for estate residential uses. The subject is a vacant estate residential property. The use of the property as estate residential is consistent with the legal uses as well as other development in this part of Collier County. POSSIBLE USE: This site presently has sufficient physical characteristics of size, shape, access, public utilities and infrastructure to be physically and functionally adequate for its most immediate use of estate residential. This is consistent with the development pattern present or anticipated for this area. The fact that some nearby properties include this use is ample evidence that the use is possible. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 28 Packet Page -968- 10/14/2014 16.A.23. HIGHEST AND BEST USE(CONTINUED) FEASIBLE USE: Based on the neighborhood data,as presented earlier, the demand estate residential properties in this area has been steady, although restricted by recent economic conditions. The current pressure for estate residential uses in these portions of the Collier County suburban area has remained reasonably strong and has been progressing due to the area's location and the relative ease of access to and from this area from throughout southwest Florida. The long term outlook for the overall trends in this area is favorable. Considering the neighborhood demand factors, the future trends are expected to be a return to an increasing level of demand. PROBABLE USE: In keeping with the current development of properties near the subject as well as those is being completed within this area, the most probable use for these properties is estate residential. The experience of other existing properties in this area indicates that such a use is most reasonable. Kenneth R. Devos,MM, SRA Golden Gate Boulevard East PCL 221 Page 29 Packet Page -969- 10/14/2014 16.A.23. APPROACH TO VALUE—BEFORE ACQUISITION The appraisal process is a systematic method of gathering data regarding sociological, physical, economic and governmental forces to analyze and interpret their influence, in terms of value, on a specific real property. In this process three basic approaches are used: Cost, Sales Comparison and Income. Each is based on the principle of substitution;that an informed purchaser would pay no more for the rights in a particular real property than the cost of acquiring,without undue delay,an equally desirable one. COST APPROACH In the Cost Approach,the site is valued as if vacant and available to be put to its highest and best use. The reproduction cost new of the improvements is estimated less accrued depreciation from all causes, physical, functional and locational. This depreciated value of the improvements is added to the site value for an indication of the subject's value by the Cost Approach. SALES COMPARISON APPROACH In the Sales Comparison Approach, sales of similar properties are ascertained as to their price,terms and condition of sale. These sales are then compared directly to the subject by an applicable unit of comparison and adjusted for any differences in time, location, and physical characteristics. The resulting adjusted sales values indicate a range of value for the subject. INCOME APPROACH The Income Approach estimates the present worth of all future benefits,either in money or amenities, anticipated through ownership of the real estate. In this process,I estimate the Potential Gross Income from market rentals. From this I subtract the market derived allowance for vacancy and collection loss. The result is the effective gross income. Based upon market data, I estimate the expenses as anticipated for the property and subtract them from the Effective Gross Income to arrive at a Net Operating Income. By using the appropriate method and rate, I convert the Net Operating Income into a value estimate via the appropriate method(s)of capitalization. THE RECONCILIATION AND FINAL VALUE ESTIMATION: The reconciliation is essentially a weighing of the three approaches so that the final value estimate will reflect the reliability of the data in each of the three approaches. The reconciliation must also reflect the proportionate degree to which each of the three approaches reflects the reaction of typical users and investors in the market. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 30 Packet Page -970- 10/14/2014 16.A.23. APPROACH TO VALUE—BEFORE ACQUISITION APPLICABLE APPROACHES This property has been valued using one of the three Approaches. Since I am focusing the analysis on the estimate of land value and some minor site improvements,one of the three approaches typically is applicable. This is the Sales Comparison Approach. Since this type of property frequently is sold, the Sales Comparison Approach can be applicable. While such land sometimes is rented or leased, the rent usually is a means of paying the minimal taxes and to allow for the upkeep of the property rather than a true return on investment. For that reason,the Income Approach is not considered to be applicable. The degree of agreement among the indicated estimates of value demonstrates the focus of the market. I will consider these estimates in the correlated final estimate of value. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 31 Packet Page -971- 10/14/2014 16.A.23. SALES COMPARISON APPROACH—BEFORE ACQUISITION To complete this analysis, I have researched and investigated sales of several estate residential sites located in the east Naples suburban portion of Collier County. There have been sufficient sales of such properties considered to be arms' length and open market sales involved unrelated private parties. I have used several of these sales to estimate the value of the subject property. I have used three sales, all of them estate residential sites like the subject. The specific information for these sales is presented in the sales sheets in the addenda of this report. Sale 1 is the February 2014 transfer of a 2.73 acre tract located on the east side of 5'h Street NW just north of Golden Gate Boulevard West. The property sold for $38,000 or $13,919 per gross acre. Although the recent economic situation in Collier County has resulted in decreases in prices of this type of property over the time period prior to this sale,based upon the most recent sales data I have not made an adjustment to the price of this sale property for this factor. As the most recent sale of vacant estate residential land used in this appraisal,I have concluded that no adjustment for this factor is applicable. This site is located on a side street while the subject is located on Golden Gate. The sale's location on a less heavily traveled roadway is seen within the market as being more desirable. I have estimated that the subject location on the more heavily traveled Golden Gate Boulevard results in a negative price increment of 20%. Therefore, I have applied an adjustment of minus 20%to the price of this sale for location. No other adjustments appear to he indicated. Sale 2 is the February 2014 transfer of a 2.73 acre tract located on the east side of 7`h Street NW,north of Golden Gate Boulevard West. The property sold for$33,000 or$12,088 per gross acre. Although the recent economic situation in Collier County has resulted in decreases in prices of this type of property over the time period prior to this sale,based upon the most recent sales data I have not made an adjustment to the price of this sale property for this factor. As a recent sale of vacant estate residential land used in this appraisal.I have concluded that no adjustment for this factor is applicable. This site is located on a side street while the subject is located on Golden Gate Boulevard. The sale's location on a less heavily traveled roadway is seen within the market as being more desirable. I have estimated that the subject location on the more heavily traveled Golden Gate Boulevard results in a negative price increment of 20%. Therefore,I have applied an adjustment of minus 20%to the price of this sale for location. Kenneth R. Devos, MAL SRA Golden Gate Boulevard East PCL 221 Page 32 Packet Page -972- 10/14/2014 16.A.23. SALES COMPARISON APPROACH(CONTINUED) The price of this tract appears to have been affected negatively by the amount of wetland found there. According to the broker,about'/to 1/3 of the property,in the western frontage area,is wetland. Based upon my comparison of the price of this and the other two sale properties,a plus adjustment of about 10%is appropriate. No other adjustments appear to be indicated. Sale 3 is the January 2014 transfer of a 1.14 acre tract located on the west side of 10th Street NW just north of Golden Gate Boulevard West. The property sold for $16,000 or $14,035 per gross acre. Although the recent economic situation in Collier County has resulted in decreases in prices of this type of property over the time period prior to this sale,based upon the most recent sales data I have not made an adjustment to the price of this sale property for this factor. As a recent sale of vacant estate residential land used in this appraisal, I have concluded that no adjustment for this factor is applicable. This site is located on a side street while the subject is located on Golden Gate Boulevard. The sale's location on a less heavily traveled roadway is seen within the market as being more desirable. I have estimated that the subject location on the more heavily traveled Golden Gate Boulevard results in a negative price increment of 20%. Therefore,I have applied an adjustment of minus 20%to the price of this sale for location. No other adjustments appear to be indicated. ANALYSIS: Each of the sales presented here is an estate acreage tract available for estate residential purposes. The first adjustment will consider the effects of Market Conditions. Earlier sales indicate that Market Conditions declined from 2009 through 2011. More recent market activity, however, seems to indicate a leveling of prices,especially in these most recent sales. For this reason,I have not applied any adjustments to the prices of these sales for this factor. Based upon these comparisons,this seems to be reasonable. The next factor is the effects of location on price. All of the properties have locations on lightly traveled side streets, while the subject is located on heavily traveled Golden Gate Boulevard East. For this reason, I have estimated that the difference in location results in adjustment of minus 20%. Based upon these comparisons,this also seems to be a reasonable adjustment. The subject property consists of 2.81 acres. From a size standpoint, the differences between the subject and the sale properties used here appear not to have an effect on price. For this reason,I have not applied adjustments for this factor. Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 33 Packet Page -973- 10/14/2014 16.A.23. SALES COMPARISON APPROACH(CONTINUED) ANALYSIS: (CONTINUED) Finally, one of the sale (#2) includes a significant amount of wetland area. This appears to have resulted in a slightly lower price than those indicated for the other two properties. Based upon a comparison of the prices of these three properties, I have applied an adjustment of plus 10% to the price of this sale property. PARCEL 221 # SUBJECT 1 2 3 LOCATION GGBE 5th St NW 7th St NW 10th St NE DATE 3/5/14 2/14/14 1/31/14 1/29/2014 PRICE $38,000 $33,000 $16,000 SITE AC 2.81 2.73 2.73 1.14 ZONING E E E E $/AC $13,919 $12,088 $14,035 CASH EQUIVALENCY $0 $0 $0 $13,919 $12,088 $14,035 MARKET CONDITIONS $13,919 $12,088 $14,035 ADJUSTMENTS FRONTAGE -$2,784 -$2,418 -$2,807 -20% $11,136 $9,670 $11,228 WETLAND $0 $967 $0 10% $11,136 $10,637 $11,228 ADDITIONAL MARKET DATA: In order to consider the current perspective of real estate participants (i.e. owners and their brokers), the following is a brief list of some Golden Gate Estate tracts in this immediate area which are listed for sale. Generally, their prices are consistent with the prices of the three sales presented above. # OFFER 1 OFFER 2 OFFER 3 OFFER 4 LOCATION 12th St NE 16th St NE 18th St SE 18th St SE DATE CURRENT CURRENT CURRENT CURRENT PRICE $ 24,900 $ 29,901 $ 28,901 $ 25,901 SITE AC 2.73 2.34 2.73 2.27 ZONING E E E E $/AC $9,121 $12,778 $10,586 $11,410 Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 34 Packet Page -974- 10/14/2014 16.A.23. SALES COMPARISON APPROACH(CONTINUED) ANALYSIS: (CONTINUED) The result of this adjustment process, as shown in the chart above, is a price range from $10,637 to $11,228 per acre. I have placed equal weight on all of the sales and recognized the similarity in the adjusted prices of the three. The indicated price is supported by the prices of the sales. Therefore, I have estimated the value of the subject as the rounded amount of$ $11,000 per acre. With 2.81 ac, this is an indicated value of$30,900. (2.81 ac X$11,000 per acre=$30,910, SAY$30,900) RECONCILIATION: Each of the sales presented here is a vacant estate residential site located in eastern Naples, Florida. The subject property consists of a tract containing 2.81 acres. I have adjusted the prices of the sale properties to allow for the differences in location and wetland. Based upon the available information, I have estimated the value of the subject land, via the Sales Comparison Approach,as of March 5,2014 as follows: THIRTY THOUSAND NINE HUNDRED DOLLARS ($30,900) Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 35 Packet Page -975- 10/14/2014 16.A.23. RECONCILIATION AND FINAL VALUE ESTIMATE—BEFORE ACQUISITION Reconciliation is the application of the process of evaluating alternative conclusions and selecting from the indicators of value derived from each of the approaches utilized in the appraisal problem to arrive at the final estimate of value. The relative value derived from each approach is weighed and the most weight and reliance is placed upon the approach which, in the appraiser's judgment, best approximates the value being sought in the appraisal. The indications below provide the reasoning for the final value estimate presented in this report. COST APPROACH TO VALUE: NA The Cost Approach to Value is most reliable when the property appraised is a site improved to its Highest and Best Use with a new improvement. This approach to value normally is most applicable in instances of new or recent construction. In the case of the subject is vacant and this approach is not applicable. As vacant land is the only item considered in this estimate of value, I have not used this approach to value INCOME APPROACH TO VALUE: NA The Income Approach to Value is a reliable indication of value for income producing properties. The credibility of this approach is enhanced by the quality and quantity of the income information upon which the approach is based. In this instance, since the subject is not improved, the Income Approach is not applicable. I have not used this approach to estimate the value of the subject property. Kenneth R. Devos, MAI, SRA Golden Gate Boulevard East PCL 221 Page 36 Packet Page -976- 10/14/2014 16.A.23. RECONCILIATION AND FINAL VALUE ESTIMATE—BEFORE ACQUISITION (CONTINUED) SALES COMPARISON APPROACH: $30,900 In the appraisal of vacant land, the reliability of the Sales Comparison Approach is affected by the quality and quantity of sales of closely similar properties. In this instance, there have been sufficient sales of vacant estate residential sites. These sales require adjustment for two factors: location and wetland. These increments are based primarily upon market data from the sales. I have recognized the differences between these sale properties and the subject. The estimate of market value for the subject is supported by the market data. FINAL VALUE ESTIMATE: The Market Value of the subject property has been considered on the basis of the rentals and sales of similar properties. I have estimated the final value based upon the majority of the data,with the values as indicated in Sales Comparison Approach being in close agreement. From this data, the estimated value of the subject, as of the Date of Value, March 5,2014,was: THIRTY THOUSAND NINE HUNDRED DOLLARS ($30,900) Kenneth R. Devos, MAI, SRA Golden Gate Boulevard East PCL 221 Page 37 Packet Page -977- 10/14/2014 16.A.23. ACQUISITION ANALYSIS SKETCH OF PROPOSED ACQUISITION AREA WEST 180. OF TRACT 107 S BECKMAN UBIAUT OR 714/1382 OR 3984/1207 TRACT 74 TRACT 107 + TRACT 108 GOLDEN GATE ESTATES UNIT 49 PLAT BOOK 5 PAGE 80 N Vv 1 c PROPOSED ROADWAY EASEMENT PARCEL 221 RDUE T.60C SG. I 20 / _ – — 108+00 107 00171 GC� 111400 12400 113+0C - I II I 1 I I I I I f GOLDEN GATE BOULEVARD (CR 875) ` I OR OTrOCIAI RECORDS (HOOK/PAGE) [T' PROPOSED ROADWAY, DRAINAGE AND UTILITY EASEMENT (RODE) EY!STING ROADWA e EMSIc D DI- YEE C HE °LRPL DIAL USE .n T-1. P,FLIC f[R 1,41 w0Y E PACE 80 LEGAL DESCRIPTION FOR PARCEL 221 ROUE TUITION OF TRACT 1D7, GOLDEN GATE ESTATES, UNIT 49 55 RECORDED IN 9LAT BOOK 5, PAGE NO OE THE R_CDR7 E COWER CO'LINIY, ,RID, L11.G 'N SECTION S. TOWNSHIP 49 SOUTH, HANOI 77 LAST, CDLLIYR COUNTY, El ORIDA. 9115G MORE:'A4TICUJ.RLY DESCRIDE. r,5 YO i OWS, THE NO5'H DC FEET OF THE SOUTH 70 "LET OF THE WEST 13 TEES 07 SAID TRACT 1/97, CSNTAIN;NG 3,500 COIIARE FEET, MORE OR LESS. / //�/�/ 0 40 BO 150 / /n y/, '' "�--� s / ortssa SVP9911:a u.PPCI, SKETCH & DESCRIPTION ONLY .n.atasv:'MI+, -e, uc s , NOT A BOUNDARY SURVEY SCALE 60 '0'" �J>(��CJO FOk:COL.,_R cowry 00.'ERN MCI 9DARI::F 503NTY COMMISSIONER:: r nauw a,..L 5 R osuuc.5u/rvfls,PM,s 57.5 VALID 51,0 lr GOLDEN GATE BOULEVARD DUTA-t SKETCH & DESCRIPTION OF, PROPOSED ROADWAY EASEMENT CONS U IN 1 Cyril Prpoceia, PARCEL 221 RDUE 55101110.Pam Rr.0 6ueo 200 COLLIER COUNTY, FLORID', j ��P-0��1� wre:lzm se7ac;r.14n:125s1507-M75 L8 N::695: JJ NT)),,' 7,i E:SIUI: 11Jr: -0N'N 11-1_L I S J'.L 1144145 91 FILE NYC SHEET c Kenneth R. Devos,MM, SRA Golden Gate Boulevard East PCL 221 Page 38 Packet Page -978- 10/14/2014 16.A.23. RECAPITULATION-LAND The proposed acquisition area will serve for the expansion of the Golden Gate Boulevard East right of way. It will allow expansion of Golden Gate Boulevard from two to four travel lanes, along with sidewalk and drainage structures. As was described in the earlier sections of this report, the estimated value of the property Before Acquisition is$11,000 per acre. Based upon this analysis,the fee value of the property being acquired is estimated at$11,000 per acre. With 0.083 acres (3,600 sf) this is an estimated fee value of$909. (0.083 AC X$11,000 per acre= $909) This amount, however, is for the fee simple interest in the proposed right of way. The acquisition, however,is a permanent easement. Although not all of the rights to the land area are to be transferred, from a practical standpoint,virtually all use of that area will be vested in the new roadway. The only practical use of the proposed right of way by the fee owner is in the calculation of building area possible to be constructed in the property. Since the land area,even in the unencumbered remainder, already allows for a house with a size in keeping with others in the neighborhood,such a use probably has little value. For this reason, I have concluded that there is a minimal remaining value to the fee owner for the land needed for this new right of way. I have estimated a nominal value of about 1% of the fee simple value estimated above. This would indicate a value for the permanent easement rights for the new right of way, 3,600 sf,as$900. ($909 X.99= $900.) ESTIMATE OF VALUE FOR ACQUISITION PARCEL 221 RDUE Land $ 900 TOTAL ESTIMATED COMPENSATION $900 Kenneth R. Devos,MAI, SRA Golden Gate Boulevard East PCL 221 Page 39 Packet Page -979-