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Agenda 09/14/2010 Item #16A 7 Agenda Item No. 16A7 September 14, 2010 Page 1 of 14 EXECUTIVE SUMMARY Recommendation to approve the purchase of a Perpetual, Non-exclusive, Road Right-of- Way, Drainage and Utility Easement (parcel No. 166RDUE) containing 8,100 square feet, which is required for the widening of Santa Barbara Boulevard between Copper Leaf Lane and Green Boulevard. Project No. 62081- Phase 2 (Fiscal Impact: $9,800.00). OBJECTIVE: To obtain the approval of the Board of County Commissioners to purchase a road right-of-way, drainage and utility easement required for the widening of Santa Barbara Boulevard between Copper Leaf Lane and Green Boulevard. CONSIDERATIONS: The required easement is located on the west side of Santa Barbara Boulevard (Unit 31, Golden Gate Estates) and contains a total of 8,100 square feet or 0.186 acres. Using the most recent, comparative sales data, the Growth Management Division's Review Appraiser, Harry Henderson, SRA, prepared an appraisal of the easement area of the property estimating its current market value at $8,950 ($48,000.00 per acre) including improvements. The 2009 assessed value ofthe parent tract is $48,000 per acre and, based on this value, the value ofthe subject parcel is $8,950.00 inclusive of improvements. On June 14,2010, the property owners' attorney, Bella PateL informed staff that her clients, Mr. and Mrs. Napior, would settle for the amount of $21,200.00 plus $3,000.00 in attorney fees. Through continued negotiations, the owners have agreed to sell the required easement to Collier County for the purchase price of $8,950.00 plus $500.00 for attorney fees. The Easement Agreement was prepared and mailed to Ms. Patel on June 25, 2010. The executed agreement was received was finally received one month later on July 28, 2010. Staff is recommending that the Board of County Commissioners purchase the required easement area from Mr. and Mrs. Napior for the purchase price of $8,950.00, and believes the following are compelling reasons to do so: This is not a distress sale. The property owners can afford to hold out and wait for the market to improve. If we should delay this acquisition for several years until construction is imminent, and be forced to take the easement through condemnation, the cost of doing so would far exceed the owners' asking price. In addition, the owners are cooperating with staff so there are no expert costs. Moreover, if we should forestall this purchase and the market begins to rebound, in three to five years we are likely going to be paying as much or more for the subject property than the owners are seeking today. It is a common expectation of property owners upon the sale of their property to the government, to be paid at least the value upon which they were taxed by the government. The easement Agenda Item No. 16A7 September 14, 2010 Page 2 of 14 agreement was negotiated at the 2009 assessed value prior to the publishing of the preliminary 2010 assessed values on July 15th. FISCAL IMPACT: The fiscal impact is in an amount not to exceed $9,800.00 and includes the $9,450 negotiated purchase price (including an attorney fee for document review in the amount of$500.00), a title search fee, title insurance premium, and recording fees not to exceed $350.00. Source of funds are road impact fees. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office and is legally sufficient for Board action. RNZ RECOMMENDATION: That the Board of County Commissioners of Collier County, Florida: 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. 166RDUE and authorize the County Manager or his designee to record same in the public records of Collier County, Florida; 3. Authorize the payment of all costs and expenses necessary to close the transaction; 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. Approve any and all budget amendments which may be required to carry out the collective will of the Board. Prepared by: Sonja Stephenson, Property Acquisition Specialist, Right-of-Way Acquisitions, Transportation Engineering, Growth Management Division Attachments: Appraisal (1) Easement Agreement with Exhibit "A"; (2) Location Map; (3) Agenda Item No. 16A7 September 14, 2010 Page 3 of 14 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 16A7 Recommendation to approve the purchase of a Perpetual, Non-exclusive, Road Right-of- Way, Drainage and Utility Easement (Parcel No. 166RDUE) containing 8,100 square feet, which is required for the widening of Santa Barbara Boulevard between Copper Leaf Lane and Green Boulevard. Project No. 62081 Phase 2 (Fiscal Impact: $9,800). 9/14/20109:00:00 AM Meeting Date: Approved By Gary Putaansuu Project Manager, Principal Transportation Engineering & Construction Management Date Transportation Division 8/23/20104:01 PM Approv~d By Nick Casalanguida Director - Transportation Planning Date Transportation Division Transportation Planning 8/23/20105:14 PM Approved By Robert N. Zachary Assistant County Attorney Date County Attorney County Attorney 8/24/2010 11 :02 AM Approved By Kevin Hendricks Manager - Right of Way Transportation Engineering & Construction Management Date Transportation Division 8/25/20103:34 PM Approved By Lisa Taylor Management/Budget Analyst Date Transportation Division Transportation Administration 8/26/20107:34 AM Approved By Najeh Ahmad Director - Transportation Engineering Transportation Engineering & Construction Management Date Transportation Division 8/26/20109:23 AM Approved By Norm E. Feder, AICP Administrator - Transportation Date Transportation Division Transportation Administration 8/26/20103:05 PM Approved By Natali Betancur Administrative Assistant Date Transportation Division Transportation Road Maintenance 8/26/20104:14 PM Approved By OMB Coordinator Date County Manager's Office Agenda Item No. 16A7 September 14, 2010 Page 4 of 14 Office of Management & Budget 8/27120102:34 PM Approved By Jeff Klatzkow County Attorney Date Approved By 8131/201011:19 AM Susan Usher Office of Management & Budget Management/Budget Analyst, Senior Date Office of Management & Budget 9/7/201010:24 AM Approved By Michael Sheffield Assistant to the County Manager Date County Managers Office 9/7/20102:45 PM Agenda Item NO.1 A7 September 14, 2 10 Page 5 0 14 PROJECT: 62081 Santa Barbara Boulevard PARCEL No(s): 166RDUE FOLIO No(s): 38229240008 EASEMENT AGREEMENT THIS EASEMENT AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into on this _ day of , 20_, by and between MARLENE M. NAPIOR, an unmarried widow, and ROBERT S. NAPIOR, a married man, as joint tenants with full rights of survivorship, whose mailing address is 5675 Westport Lane, Naples, Florida 34116, (hereinafter collectively referred to as "Owner"), and COLLIER COUNTY, a political subdivision of the State of Florida, whose mailing address is 3301 Tamiami Trail East, Naples, Florida 34112 (hereinafter referred to as "Purchaser"). WHEREAS, Purchaser 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 c:onvey the Easement to Purchaser for the stated purposes, on the terms and conditions set forth herein; and WHEREAS, Purchaser 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 i.s 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. The purchase price (the "Purchase Price") for the Property shall be $9,450 (U.S. Currency) payable at time of closing, subject to the apportionment and distribution of proceeds pursuant to Paragraph 9 of this Agreement (said transaction hereinafter referred to as the "Closing"). Said payment to Owner, payable by wire transfer into the Bella Y. Patel Trust Account, shall be full compensation for the Property conveyed, including 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 cure, including but not limited to the cost to relocate the existing irrigation system and other improvements, and the cost to cut and cap irrigation lines extending into the Property, and to remove all sprinkler valves and related electrical wiring, and all other damages in connection with conveyance of said Property to Purchaser, and includes $500 in full settlement of all attorneys' fees, expert witness fees and costs as provided for in Chapter 73, Florida Statutes. 3. Prior to Closing, Owner shall obtain from the holders of any liens, exceptions and/or qualifications encumbering the Easement, the execution of such instruments which will remove, release or subordinate such encumbrances from the Easement upon. their recording in the public records of Coiiier County, Florida. At or prior to Closing, Owner shall provide Purchaser with a copy of any existing prior title insurance policies. Owner shall cause to be delivered to Purchaser the items specified herein and the following documents and instruments duly executed and acknowledged, in recordable form (hereinafter referred to as "Closing Documents") on or before the date of Closing: (a) Perpetual, Non-Exclusive Road Right-Of-Way, Drainage and Utility Easement; (b) Closing Statement; Agenda Item NO.1 'A7 stea>~er 14, 2 10 l:j" 'page 6 of 14 (c) Grantor's Non-Foreign, Taxpayer Identification and "Gap" Affidavit; (d) W-9 Form; and (e) 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 Purchaser, Purchaser's counsel and/or title company. 4. Both Owner and Purchaser agree that time is of the essence. Therefore, Closing shall occur within ninety (90) days from the date of execution of this Agreement by the Purchaser; provided, however, that Purchaser shall have the unilateral right to extend the term of this Agreement pending receipt of such instruments, properly executed, which either remove or release any and all such liens, encumbrances or qualifications affecting Purchaser's enjoyment of the Easement. At Closing, payment shall be made to Owner in that amount shown on the Closing Statement as "Net Cash to Seller," and Owner shall deliver the Closing Documents to Purchaser in a form acceptable to Purchaser. 5. Owner agrees to relocate any existing irrigation system located on the Easement including irrigation lines, electrical wiring and sprinkler valves, etc., prior to the construction of the project without any further notification from Purchaser. Owner assumes full responsibility for the relocation of the irrigation system 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, the Owner is responsible for their retrieval prior to the construction of the project without any further notification from Purchaser. Owner acknowledges that Purchaser has compensated Owner for the value of the Improvements and yet Purchaser is willing to permit Owner to salvage the 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 Purchaser 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) Purchaser'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 Purchaser 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 Agenda Item No. 16A7 S~Q~er14,2 10 ~~ 'Page 7 of 14 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 Purchaser to such conveyance, encumbrance, or agreement, which consent may be withheld by Purchaser for any reason whatsoever. (e) There are no maintenance, construction, advertising, management, leasing, employment, service or other contracts 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, formal or informal, existing or pending or threatened which affect the Easement 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 Purchaser in writing prior to the effective date of this Agreement. (g) Purchaser 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 Purchaser. (h) 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 Purchaser; 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 Purchaser, 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 shalf survive Closing and is not deemed satisfied by conveyance of title. 8. Owner shall indemnify, defend, save and hold harmless the Purchaser against and from, and reimburse the Purchaser with respect to, any and all damages, claims, liabilities, laws, costs and expenses (including without limitation reasonable paralegal and attorney fees and expenses whether in court, out of court, in bankruptcy or administrative proceedings or on appeal), penalties or fines incurred by or asserted against the Purchaser by reason or arising out of the breach of any of Owner's representations under paragraph 7(h). This provision shall survive Closing and is not deemed satisfied by conveyance of title. 9. Purchaser shall pay all fees to record any curative instruments required to clear title, and all Easement instrument recording fees. In addition, Purchaser may elect to pay reasonable processing fees required by mortgagees 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. Agenda Item No. 1 7 S~Qiaruber14,2 10 ~'" 1='age 8 of 14 10. 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 11. This Agreement and the terms and provisions hereof shall be effective as of the date this Agreement is executed by both parties and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, personal representatives, successors, successor trustees, and/or assignees, whenever the context so requires or admits. 12. 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 pe~ury, 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 Purchaser. (If the corporation is registered with the Federal Securities Exchange Commission or registered pursuant to Chapter 517, Florida Statutes, whose stock is for sale to the general public, it is hereby exempt from the provisions of Chapter 286, Florida Statutes.) 13. 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 Purchaser. 14. 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. 15. 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 PURCHASER: DATED: ATTEST: DWIGHT E. BROCK, Clerk Deputy Clerk BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA BY: FRED W. COYLE, Chainnan , ' Agenda Item No. 16 7 S~~~er14,2 10 '" 'Page 9 of 14 AS TO OWNER: ~~ '71.>1, '. MARL E M. NAP lOR ~ .Itness ( Ignature) ~"':c4 O"CA:40.s ame (Print or Type) Qj,~~ Witne ignature) ffid~ ~~ ROBERT S. NA lOR ~~~~ ~ Ma~~ ame(Print or Type) ,Approved as to form and legal sUfficiency: K.5~~ Assistant County Attorney Last Revised: 6/18/10 . 1 Agenda Item No. 16A7 Sel5tcl'flbcr 11, 2 10 Page 10 of 14 . ' >>0.00' (PLAT) ~ -r-- ~~ o :IS" '00 CRAPHIC SCAl.t 1 ~ EJl/S1INC 6D~ EArf. C::l FOR H.a If. PURPOSES PLA T ~ 1 ~ ! I 109' 1 09.1 ~ ~ ~ SOUTH 180' NORTH 150' ~ 1= co 10F TRACT 109 OF =,109 ~ NON ~ROAD \ ~ Ita.w.. DRAINA~ MID ~ EASEMENT. CI) SIXM/E'"FtET '-i GOLDEN GA1TE 'STATf:S UNIT J1, PLAT 7. PAGE 59 108.1 108 I 110 PARCEL NO. 'XlsnNG SJ' cASEMeNT 'OR ~ O. If. PUR~OSES (PER PLAT, .,.-...-...-.'--' SANTA :Jh, ~ ~ ;'t BLOc/( 152 ~ cAST UNf OF SEen 20 BARBARA BOULEVARD GOLDeN GA TF UNIT 6, PLAT BOOK 5, PAGES 124-1J4 l..ftl ~I 2 3 4 5 6 I' " Ql <.0 - l::l - - i\) GOLDfN GATE: CITY UNIT 5. PLAT BODK 5, PAGE 117-12J BLDc/( 15J l..mAl /JFSCR/PTlDN BflNG THf IIf"ST 54 FrrT OF THE EAST /'07 FEET 'OF THe NORTH ISO FEET OF THE SDUTH 18'0 ITer OF TRACT 1'09. GOLDEN GATE cSTArtS UNIT JI. PLAT BO'OK 7. PAGf 59, COLLIER C'OUNTY, F7,.'ORIOA. CONTAINING 8.100 SQUARe FrrT MORE 'OR LESS. SUBJECT T'O cASEMENTS ct ReSTRICTIONS OF ReCDRD. EXHIBIT A ..... NOT.A SURVEY ... . .. I W>t T. 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D....,pll...\S.b""Il.d\2V92OJ.166.~.Q Agenda Item No. 16A7 September 14, 2010 Page 11 of 14 SANTA BARBARA BOULEVARD - PHASE 2 - 62081 Parcel 166RDUE - Marlene and Robert Napior Predominant Occupancy Single Family Price Range Single Family Age Borrower Owner: Napior Property Address 5675 West ort Lane City Naples County Collier LegalOescription Golden Gate Estates Unit 31 S 180ft otTract 109 Sale Price $ N/A Oate of Sale N/A Loan Term~ yrs. Property Rights Appraised ~ Fee 0 Leasehold Actual Real Estate Taxes $ 4,087.48 (yr) Loan charges to be paid by seller $ N/A Other sales concessions N/A Lender/Client Collier County Gov/Transportation Division Address 2885 South Horseshoe Drive Na les FL 34104 Occupant owner Appraiser Harry Henderson. SRA Instructions to Appraiser Estimate Market Value of land onl . Folio #38229240008 sub'ect ro e is im roved wi1h a sin Ie-famil home which is unaffected b the takin areel. Location Urban Suburban Rural Buitt Up ~ Over 75% 0 25% to 75% 0 Under 25% Growth Rate 0 Fully Dev. 0 Rapid ~ Steady 0 Slow Property Values 0 Increasing 0 Stable C8J Declining Demand/Supply 0 Shortage 0 In Balance C8J Oversupply Marketing lime 0 Under 3 Mos. 0 4-6 Mos. C8J Over 6 Mos. Present Land Use ~% 1 Family --.2% 2.4 Family --.2% Apts. _% Condo---1.Q% Commercial % Industrial 10% Vacant % Change in Present Land Use 0 Not Likely -~ Likely (*j 0 Taking Place (*j (*) From vacant To sinQle-family ~ Owner 0 Tenant _% Vacant $ 150.000 to $ 720,000 PreclominantValue $ 300,000 --1.. yrs. to----1Q.. yrs. Predominant Age 20 yrs. Census Tract 104.08 IMain File ~!ff~llf&(,ft~o. 16A7 File No. ~ ber 14, 2010 Map Reference S29-T49-R2 2 of 14 LAND APPRAISAL REPORT State FL Zip Code 34116 Employment Stability Convenience to Employment Convenience to Shopping Convenience to Schools Adequacy of Public Transportation Recreational Facilities Adequacy of Utilities Property Compatibility Protection from Detrimental Conditions Police and Fire Protection General Appearance of Properties Appeal to Market Good Avg, Fair Poor DC8JDO D~OD O~DD O~DO O~DD O~DD O~OD O~DO O~DO O~OO O~OD O~OD Elec. Gas Water San. Sewer ~NoOYes Zone D Comm#120067415G dtd 11/17/05 The undersigned has recill!d three recent sales of properties most similar and pro~mall! to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those lIems of signllicant variation between the subject and comparable properties. II a signllicant item in the comparable property is superior to or more favorable than the subject property. a minus (,) adjustment is made thus reducing the indicated value of SUbject; II a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value 01 the subject. ITEM SUBJECT PROPERTY COMPARABLE NO.1 COMPARABLE NO, 2 Address 5675 Westport Lane 5765 Hidden Oaks Lane 6250 Cedar Tree Lane NalesFL34116 NalesFL34116 NalesFL34116 Proxim' to Sub'ect 3.81 miles N 1.87 miles NW Sales Price N/ A Price Gross Data Source Date of Sale and lime Adjustment Location SitelView To ra Zeni 50 660/ac 115000 DESCRIPTION N/A GGE 3.34 acres Level/natural Estates COMPARABLE NO.3 W/S of 29th Street SW Na les FL 34117 2.09 miles NE in $/ac N/A Cash or Equiv. Cash or Equiv. Cash or Equiv. I ESTIMATE THE MARIlET VAWE, AS DEFINED. DF SUBJECT PROPERTY AS OF June 24, 2010 to be $ 8,950 o Did 0 Did Not Physically Inspect Property Collier County Govemment Form LND - 'WinTOTAL" appraisal software by a la mode, inc. -1-80D-ALAMOOE [Main File ~g&ffI:iS61If~.r1!Jo. 16A7 September 14, 2010 Page 13 of 14 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under aD conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. imp6c~ in this defin~ion is the consummaMn of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or weD advised, and each acting In what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions' granted by anyone associated With the sale. 'Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a resu~ of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually aD sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party instiMional lender that is not already involved in the property or transaction. Any adjustmenf should not be calculated on a mechanical dollar for doUar cost of the financing or concession but the dollar amount of any adjustmenf should approximate the markers reaction to the financing or concessions based on the appraiser's judgemenf. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND UMITlNG CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser wiD not be responsible for matters of a iegal nature that affect eifher the property being appraised or the titie to~. The appraiser assumes that the IitIe is good and marketable and. therefore, will not render any opinions about the titie. The property is appraiSed on the basis of if being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of ifs size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor. he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separalll valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisaL Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions Oncluding the presence of hazardous wastes, toxic substances, etc.) that would make the property more or iess valuable, and has assumed that there are no such conditions and makes no guaranfees or warranties, express or implied, regarding the condition of the property. The appraiser wii not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the fieid of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the confents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consenf before the lender/client specified in the appraisal report can distribute the appraisal report Oncluding conclusions about the property value, the appraiser's idenfity and profesSional designations, and references to any professional appraisal orgarizations or the firm With which the appraiser is associated} to anyone other than the borrower, the mortgagee or its successors and assigns; the mortgage insurer, consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data coHection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consenf and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Fann 439 6-93 Page 1 of 2 Fannie Mae Form 1004B 6-93 Collier County Govemmenf Form ACR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE IMainFile!*!cl'~I1~llrMlr~o. 16A7 September 14, 2010 Page 14 of 14 APPRAISER'S CERTIFICATION: The Appraiser cert~ies and agrees that 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate 10 the subject properly for consideration in the sales cOll1larison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. "a Significant item in a cOll1larabie property is superior to, or more favorable than, the subject properly, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property Is Inferior to, or less favorable than the subject property, I have made a positive adjus1ment to increase the adjusted sales price of the cOll1larable. 2. I have taken into consideration the factors that have an impact on vaiue in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant intormation from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting cond~ions spec~ied in this form. 4. I have no present or prospective interest In the property that Is the subject to this report, and I have no present or prospective personal Interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the viCinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific resutt, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did oot base the appraisal report on a requested minimum valuation, a spec~ic valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of toose Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimalB I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. J have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketallility of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. " I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed Ily them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, ~ an unauthorized change is made to the appraisal report, I will take no responsillility for it. SUPERVISORY APPRAISER'S CERTIFICATION: "a supervisory appraiser signed the appraisal report, he or she cert~ies and agrees that: J directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree 10 be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 5675 Weslporl Lane, Naples. FL 34116 APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: Name: Date Signed: State Certification #: or State License #: State: Expiration Date of Certification or License: Signature: Name: Harry Henderson, 8RA Date Signed: June 24. 2010 State CertifICation #: RD3475 or State License #: State: FL Expiration Date of Certification or License: 11/30/10 o Did 0 Did Not Inspect Property Freddie Mac Form 439 6.93 Page 2 of 2 Fannie Mae Form 1004B 6.93 Form ACR - "WinTDTAL" appraisal software by a la mode, inc. - 1.800-ALAMODE