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HomeMy WebLinkAbout01-07-2005 1225 Main Street 0 Sebastian, Florida 32958 Telephone (772) 589-5330 [] Fax (772) 589-5570 City Council Information Letter January 7, 2005 Request for Excess Property Transfer by Treasure Coast Area Developer Robert Collins - New Commercial Office Space at Jackson Street and United States Hi.qhway One Staff from my office, the Department of Engineering and the Department of Growth Management recently began discussions with representatives of Treasure Coast developer Robert Collins to address the possibility of 'providing them with excess property currently owned by the City of Sebastian located in vicinity west of United States Highway One and south of Jackson Street. This effort is being pursued to help accommodate the development and construction of a commercial office facility immediately adjacent to this site. Initial staff directives to Mr. Collins and his associates were to commission an appraisal in an effort to ascertain the value of the surplus property in question. As such, the attached report as compiled and delivered by Armfield & Wagner Appraisal & Research, Inc. of Vero Beach indicates a market value of $115,000. Mr. Collins is now therefore interested in compensating the City of Sebastian accordingly (in the form of a cash payment in the amount of $115,000). Both Tracy Hass and David Fisher are currently in the process of reviewing the respective enclosed site plan, an exercise that will yield recommendations to be presented to the Planning and Zoning Commission in the coming months. We also hope to offer more specific presentations regarding the possibility of a transaction during your January 26th session. Reopenin.q of Ea.qles Nest at Sebastian Municipal Golf Course As most of you are aware, the Eagles Nest Restaurant at Sebastian Municipal Golf Course was recently scheduled to reopen this morning. Unfortunately however, as referenced in the attached electronic mail message as compiled and delivered by Greg Gardner, establishment City Council Information Letter January 7, 2005 Page 2 proprietor Teresa Fink's father passed away somewhat unexpectedly two days ago. The cause of his death was apparently attributable to complication from diabetes. As such, reopening is now anticipated to occur Tuesday, January 11th. The facility itself is fully functional and therefore ready for service and operation, including new carpeting, painting, a kitchen prep area and other features. It is therefore safe to say that Capp Customer Builders has performed a yeoman's job relative to reconstruction and repair activities. Student Government Day Just a reminder that the City of Sebastian will host its annual Student Government Day program Thursday, January 20th beginning circa 9:00 a.m. This year's event, rescheduled from October 2004 due to various hurricane recovery and facility transition related issues, will primarily cater to elementary school youth in the community. This focus becomes necessary, as both middle school and high school students will be engaged in midterm examinations during this time. As such, area elementary schools will therefore be able to provide additional pupils to participate in this invaluable experience to assist them in learning more about local government operations, services and decision-making processes. Out of Office As I will be traveling to Las Cruces, New Mexico later next week to begin relocation and living quarters search activities (as well as meetings with various employees, officials and community/civic organizations), please be advised that I will be out of the office both Thursday, January 13th and Friday, January 14th. Due to a scheduled flight early morning January 13th, I may be required to excuse myself from the City Council meeting circa 10:00 p.m. during the prior evening. As is normally the case whenever I am away from Sebastian City Hall, Police Chief Jim Davis will represent me during my absence, as well as to be available to respond to any emergencies that may arise during this time. As the City of Sebastian will be closed for normal operations Monday, January 17th in observance of King Holiday, I will report back to the office the following morning Tuesday, January 18th. No information letter .summary will therefore be delivered next week. I anticipate providing two additional reports before my resignation becomes effective- Friday, January 21st and Friday, January 28th respectively. The City Council Information Letter January 7, 2005 Page 3 final report will likely offer a synopsis regarding outstanding issues, programs and project currently underway, which are also scheduled to continue after my departure. Enclosure(s): Electronic Mail Message from Greg Gardner- Eagles Nest Restaurant Personal Copies: Armi~eld & Wagner Property Appraisal Report and Draft Site Plan ~ Robert Collins Proposal, Jackson Street and US 1 My Documents/In foLetter240 Terrence Moore From: Sent: To: Subject: Greg Gardner Thumday, January 06, 2005 9:48 AM Terrance Moore Greg-Golf course Terrence, As you can read on #3 (D) of my fiscal quarter news, the Eagles Nest Restaurant was slated for reopening on this Friday, January 7th. Yesterday, Teresa Fink's father passed away quietly in his sleep. He had problems with diabetes, blood sugar, etc. This unfortunate news will curtail the reopening of the restaurant until (and this is projected according to Dennis Fink) Tuesday, January 11th. I thought you may want to include this in your information letter to the Council since the issue of when the restaurant is going to open has been some sort of a hot topic. The restaurant is ready to open, everything is completed including carpeting, painting, kitchen prep, etc. Thanks, ( Greg G. also (FYI) I will be out from Saturday, January 8th through Monday, January 10th. Michael will beon site all weekend and he can reach me if there is any kind of emergency. ARMFIELD-WAGNER APPRAISAL & RESEARCH, INC. PETER D. ARMFIELD, MAI ST. CERT. GEN. REA #000024 RICHARD L. WAGNER, MAI ST. CERT. GEN. REA #0000608 DANIEL D. FULLER, MAI ST. CERT. GEN. REA #0000567 1940 10TH AVENUE, P.O. BOX 791 VERO BEACH, FLORIDA 32960 TELEPHONE (772) 662-0532 FAX (772) 778-1121 July 21, 2004 Mr. Robert Collins c/o Mr. Dan Duffell, Realtor Coldwell Bankers, Ed Schlitt L.C. 1209 U.S. #1 Sebastian, Florida 32956 APPRAISAL #37294 Dear Mr. Collins: As requested, we have inspected the three right-of-way parcels adjacent to the commercial parcel at the southwest corner of U.S. Highway #1 and Jackson Street, in the City of Sebastian, Florida. This is for the purpose of providing you with our opinion of the fee simple estate Market Value of this property, as of July 12, 2004. The scope of this appraisal is a Complete Appraisal assignment, which is provided to you in a Summary Report format. The appraisal complies with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice (USPAP) for a Summary Report. The property is physically described in the following report, which explains the analysis of data upon which our opinion of value is based. The opinions expressed in this report and the value conclusion reported below are subject to the general and special limiting conditions. The subject property consists of three road right-of-way parcels that are presently owned by the City of Sebastian, but are being considered for abandonment for use by the adjacent commercial parcel at the southwest corner of U.S. #1 and Jackson Street. The three parcels include the western portion of Jackson Street and Madison Street, along with the Palm Avenue. All three of these road right-of-way areas are currently unimproved and both the Madison Street and Palm Avenue portions include wetlands. They are identified as parcels A, B, and C. Per our calculations, they total approximately 72,281 +- square feet of site area, or 1.66 +- acres. The adjacent commercial parcel is currently owned by Mr. Collins and include all of Block 8 and the western approximately ~ of Block 9, in Ocean Breeze Subdivision. These site areas total approximately 201,774 +- square feet, or 4.63 +- acres, again per our calculations which are subject to confirmation by current survey. Total site area of both the existing parcels and adjacent right-of-way is approximately 274,055 +- square feet, or 6.29 +- acres. This includes approximately 3.50 +- acres of uplands and 2.79 +- acres of wetlands. Mr. Robert Collins c/o Mr. Dan Duffell, Realtor July 21, 2004 Page Two APPRAISAL #37294 Our opinion of the fee simple estate Market Value of the subject property utilized the Sales Comparison Approach. We analyzed sales of commercial acreage parcels in the subject neighborhood area, along with competing areas throughout Indian River County. Current listings were also considered. The average value for the overall parcel was first provided, then allocated to the three right-of-way parcels which included deductions for wetlands and marketability. Based on the data and analysis as presented in this appraisal report, it is our opinion that the Market Value of the fee simple estate to the real property appraised herein (All three right.of. way parcels), as of the date of property inspection on July 12, 2004, is as follows: ONE HUNDRED TWENTY FiVE THOUSAND FiVE HUNDRED DOLLARS This can be reasonably allocated to these three parcels as follows: Parcel A Jackson Street ROW Pamel B Madison Street ROW Parcel C Palm Avenue ROW Total ~ Market Value Conclusion $ 73,000 $ 42,500 L!o,ooo $125,500 We believe the appraisal report to be complete, but any questions you may have are welcomed. Sincerely, Daniel A. Nelson St. Cert. Gen. REA #0000897 REPORTS #37294 Peter D. Armfield, MAI St. Cert. Gen. REA #0000524 _TABLE OF CONTENT,C; COPY OF PLAT MAP COPY OF SITE PLAN PLAT MAP - THREE RIGHT-OF-WAY PARCELS LIMITING CONDITIONS AND UNDERLYING ASSUMPTIONS SPECIAL LIMITING CONDITIONS APPRAISAL SUMMARY INTRODUCTORY COMMENTS SCOPE OF THE APPRAISAL AND FORMAT LEGAL DESCRIPTION OWNER OF PROPERTY AND SALES HISTORY SKETCH OF LEGAL DESCRIPTION LOCATION MAP PROPERTY PHOTOGRAPHS NEIGHBORHOOD ZONING CONCURRENCY UTILITIES TAX INFORMATION FLOOD ZONE CENSUS TRACT SITE DESCRIPTION TABLE OF CONTENTS (continued) HIGHEST AND BEST USE VALUATION PROCESS SALES COMPARISON APPROACH LAND SALES SUMMARY AND ADJUSTMENT GRID ........................... 44 LAND SALES LOCATION MAP MARKET VALUE CONCLUSION - THREE RIGHT-OF-WAY PARCELS ............. 48 MARKETABILITY REASONABLE EXPOSURE TIME CERTIFICATE OF APPRAISAL QUALIFICATIONS OF THE APPRAISER .LIMITING CONDITIONS AND UNDERLYING ASSUMPTION,~; 1. The value given in this appraisal report represents the opinion of the signer as to the Value AS OF THE DATE SPECIFIED. Values of real estate are affected by an enormous variety of forces and conditions will vary with future conditions, sometimes sharply within a short time. Responsible ownership and competent management are assumed. 2. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 3. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 4. The information furnished by others is believed to be reliable. No warranty, however, is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or apparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 1. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is within the boundaries of property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 12. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety. 2 LIMITING CONDITIONS AND UNDERLYING ASSUMPTIONS (continued) 13. The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 14. Neither all nor any part of the contents of this report especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected or any reference to the Appraisal Institute, or the MAI or SPA designations shall be disseminated to the public through advertising, public relations, news, sales, consent and approval of the appraiser, or other media without prior written 15. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the 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 substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that 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. 16. The Contract for the appraisal of said premises is fulfilled by the signer hereto upon the delivery of this report duly executed. 17. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency 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 makes no guarantees, express or implied, regarding this determination. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We 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 we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in estimating the value of the property. 3 _SSPECIAL LIMITING CONDITIONS 1. Based on evidence from nearby properties and from utilities authorities, the subject property is being appraised, as if utilities are available to the site sufficient in capacity to support the Highest and Best Use, at costs that are typical to competing properties. There are no unusual costs in bringing supply lines to the site known to the appraisers. However due to typical uncertainties of engineering and supplying entities, this report s subject to confirmation of this assumption in writing from supplying agencies and by a registered engineer. 2. It is assumed that the subject property does not have any adverse site factors, such as fuel, oil, or other soil or environmental conditions, that are hazardous to the subject property. Further, it is assumed that the site contains wetland areas, per the information provided and discussed within the report. Reportedly, the subject site contains 3.50 +- acres of uplands and 2.79 +- acres of wetlands. Parcel A reportedly contains all uplands with parcel B containing about 75% wetlands and Parcel C reportedly contains all wetlands. 3. The appraisal of the subject property utilized site information provided by the client and the Indian River County Tax Rolls. It is assumed that the subject site is approximately 6.29 +- acres in size, per our calculations. Further, it is assumed that the three right-of-ways have the following parcel sizes. Parcel A Jackson Street ROW 17,661 SF 0.40 Acres Parcel B Madison Street ROW 23,830 SF 0.55 Acres Parcel C Jackson Street ROW 30,790 SF Totals -- .0.71 Acres 72,281 SF 1.66 Acres All of the above site areas and acreage sizes are subject to confirmation by current survey. 4. Reportedly, there is a 20 foot wide utility easement in Parcel C. This easement is designed for water and sewer lines. Per the information provided, this severely restricts the utility of Parcel C for wetland conservation. The appraisal is subject to a Legal Description for the utility easement on Parcel C, as well as a description of utility lines and their location within the easement. 4 Property Type: Property Location: Effective Valuation Date: Date of inspection: Inspected by: Date of Report Preparation: Property Rights Appraised: Purpose of the Appraisal: Use / User of the Appraisal: Appraisal Meets Uniform Siandards of Professional Appraisal Practice of the Appraisal Foundation: Highest and Best Use: Site as Vacant: Property as Improved: Zoning: CLUP: Land: (Overall Parcel) Area: Frontage: (U.S. #1) Average Depth: Opinion of Market Value: Three Right-of-Way Parcels: Parcel A: Parcel B: Parcel C: Jackson Street ROW Madison Street ROW Palm Avenue ROW Totals AP___PRAISAL SUMMARY Three Right-of-Way Parcels Adjacent to the southwest corner of U.S. #1 and Jackson Street, City of Sebastian, Florida July 12, 2004 July 12, 2004 Daniel A. Nelson June 12 - July 21, 2004 Fee Simple Estate Provide our opinion of the Market Value of the subject property. Client use for use in negotiations with the City of Sebastian for possible purchase. Yes, Complete Appraisal in a Summary Report Format. See Report. See Report. CR, Commercial Riverfront District RMU, Riverfront Mixed Use 6.29 +- acres 250 +- feet 600 +- feet $1,500,000 . Overall Parcel ($5.87/8F) Size/SF 17,661SF 23,830 SF ~0,790 SF 72,281SF 0.40 Acres 0.55 Acres 0.71 Acres 1.66 Acres M.~a rket Value $ 73,000 $ 42,500 $125,500 5 I._NTRODUCTORY COMMENT?, PURPOSE OF THE APPRAISAL AND RIGHTS APPRAISEi ~ The purpose of this appraisal is to provide our opinion of the Market Value of the Fee Simple Estate in the real property, as of July 12, 2004. A Complete Appraisal has been made, which is transmitted in a Summary Report format. MARKET VALUE DEFINED Market value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined. A current economic definition agreed upon by federal financial institutions in the United States of America is: The most probable pdce which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated. * 2. Both parties are well informed or well advised, and acting in what they consider their 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 a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. SOURCE: Uniform Standards of Professional Practice of the Appraisal Foundation; and Office of Thrift Supervision Regulation 12 CFR 564.2(0; and the Office of Comptroller of the Currency. DEFINITION OF FEE SIMPLE ESTATF Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. SOURCE - Taken from The Dictionary of Real Estate Appraisal Fourth Editiof ~, sponsored by the Appraisal Institute, 2002 page 113. - REAL PROPERTY F)EFINED All interests, benefits, and rights inherent in the ownership of physical real estate; the bundle of rights with which the ownership of the real estate is endowed. Source - Taken from The Dictiona of Real Estate A raisal Fourth Editio Appraisal institute, 2002 page 234. -, sponsored by the S__CCOPE OF THE APPRAISAL AND FORMAi' The scope of this appraisal is a Complete Appraisal assignment provided in a Summary Report format. The report is designed and prepared to be fully compliant with FIRREA and USPAP. The following descriptions of appraisal types and report formats are used. 1. Complete Appraisal: The act or process of developing an opinion of value or an opinion of value developed without invoking the Departure Provision. 2. Summary Appraisal Report: A written report prepared under Standards Rule 2-2(b) of a Complete or Limited Appraisal performed under Standard 1. (Uniform Standards of Professional Practice, USPAP, 2004 Edition) The summary report format includes the data analyzed support for conclusions, and minimum discussion of analysis with the level of detai more limited than in a Self-Contained Appraisal Report. The appraisal process for improved properties involves gathering market data to support three different market analysis. The data targeted is from properties with similar Highest and Best Use. The three market analyses are commonly referred to as approaches to value, and are identified as the Cost approach, the Income Approach and the Sales Comparison Approach. The subject property consists of three right-of-way parcels adjacent to the commercial parcel at the southwest corner of U.S. Highway//1 and Jackson Street, in the City of Sebastian, Florida. The three road right-of-way parcels are presently owned by the City of Sebastian and total approximately 72,281 +- square feet of site area, or 1.66 +- acres. The adjacent commercial parcel is currently owned by Mr. Collins and include al/of Block 8 and the western approximately ~ of Block 9, in Ocean Breeze Subdivision. These site areas total apProximately 201,774 +- square feet, or 4.63 +- acres, again per our calculations which are subject to confirmation by current survey. Total site area of both the existing parcels and adjacent right-of-way is approximately 274,055 +~ square feet, or 6.29 +- acres. This includes approximately 3.50 +~ acres of uplands and 2.79 +- acres of wetlands. 7 Only the Sales Comparison Approach is used in providing our opinion of the fee simple estate Market Value of the subject property, as of July 12, 2004. The average value for the overall parcel was first provided, then allocated to the three right-of-way parcels which included deductions for wetlands and marketability. The data gathered is limited in area to the real estate market in Indian River County. Primary focus is on data available from within the area described as the subject's neighborhood, or from other neighborhoods felt to be competing, or servicing similar market segments within the county. Data is gathered and then analyzed to interpret trends of the market participants. The analyzed data is then applied to the subject property for a value indication. Data sources for sales, include public recording of real estate sales transferred by warranty deed, general knowledge of sales that are publicized in the news media, or that are made known by real estate market partidpants, including brokers, bankers, buyers, sellers, and attorneys. Our office data sources include the Clerk of the Court, Property Appraiser, and Multiple Listing Service (MLS). Our opinion of the fee simple estate Market Value of the subject property utilized the Sales Comparison Approach. We analyzed sales of commercial acreage parcels in the subject Sebastian neighborhood area, along with competing areas throughout Indian River County. Current listings are also considered, These sales are analyzed based on the price paid per square foot and per acre. This valuation analysis is provided in the following summary report. LEGAL DESCRIPTION The following Legal Descriptions were provided by the client per sketches of Legal Descriptions provided by Masteller, Moler & Reed. The appraisal is subject to confirmation of the total site area for each of these parcels along with a Legal Description and acreage size for the overall parcel. These calculations should also include a delineation between the upland and wetland parcel sizes, as well as any easements. Please See Special Limiting Condition #3. ,OWNER OF PROPERTY AND SALES HISTORY Current Owner of Property: Robert R. & Shirley Collins Based on the public records reviewed by the appraisers, there have been no sales of the subject property within the past three years. However, the subject property has been listed for sale for $1,750,000, reportedly including the adjacent commercial parcel along with the three road right-of-way areas. No current offers were indicated. A location map of the subject property follows the Legal Descriptions on the next few pages, then followed by photographs of the property. Area Data for the City of Sebastian and Indian River County is retained in our office files. ~SKETCH OF LEGAL DESCRIPTION ]Exhibit "A " Sketch °f Legal Description for llth Street Right-of- Way Abandonment L ' ndian River County, Florida Sheet I of 2 NOt Valid Wtthout All $l~eet$ ~rl~C~ L i~ OESC_RIP~rION~.. BEING A PORTION OF lltlt STREETAS DEPICTED ON THE AMENDED PLAT OF OCEAN BREEZE HEIGHTS AS SltOI~N ON THE PLAT THEREOF RECORDED IN PLATEOOK 2, PAGE 9 OF THE PUBLIC RECORDS OF INDIAN RIVER COUNTY, FLORIDA, LOCATED WEST OF THE FOLLOWING DESCRIBED LINE. BEGINNING A T THE NORTIIEAST CORNER OF LOT 9, BLOCK 8 OF SAID AMENDED PLA T OF OCEAN BREEZE HEIGHTS; THENCE N25°13'12"~VA DISTANCE OF 80.00 FEET TO THE SOUTHEAST CORNER OF £OT ll, BLOCK 7. _NOrmS: 0 THE BE~Na BASIS lS THE NORTHLZNE or ~zoc~ s as DEP1CIED ON 2 ~ THIS SffETC~D LEG~ D~CRIPTIO~ 9 THIS S~TCHE~STS SOLELY FOR TIlE PU~OSE OF ILL UST~ T~G TIlE LEGAL DESCIPTION TO ~ICII IT IS ~ TTA CHED. $) ALL DIMENWlONX A~ CALCULATED UNLESS OTHER~SE NO TED. 0 THI3' SI~TCHMEETS THE MIN[~M TEC~I~L STAND~s AS SET FORTH BY THE FLO~DA BOA~ OF PROFESSIONAL L~D SURVEYORS IN CHAP2ER 61Gl 7-6, FLORIDA ADMIN~TATI~ CODE, PU~UANT TO SECTION 472.027, FLO~DA STA TUTE~ Exhibit Sketch °f Legal Description for 1Jth Street Right-of'Way Abandonment Indian River County, Florida Sheet 2 of 2 Not Valid ~Vithout All Sheets \ 10 Exhibit "A " Sketch of Legal Description for 10th Street Right-of-Way Abandonment Indian River County, Florida Sheet 1 of 2 D~ESC~Ri.P!7ON_A Not Valid }Fithotct AIl~Vheets ~L:>t4Aof_~-/_' ~ ~EmG A PORTION Or ~0~,, SrREET AS ~e~cr~ o~ roe vWL~c n .-- ~r ~oor 2, ma eco~s or'~ , ~ 9 He LOCaTeD west or ran ~,~[{~(~en cov~r~ eLOm~, BEGINNING '~ ~"~°WING DESCRIBED LINE. gT TltE NORTH~ST CO~ER OF LOT d, BLOCK 9, OF 8glD ~MENDED PL~ T OF 0~N B~EZE HEIGHTS, TIfENCE N25W3~12"~ DISTANCE OF 80.00 ~ET TO THE~VOUTHE~ST CORNER OFLOT 1~, BLOCK 8. 0 THE ~mN¢.BAS~S ~S THe SOVr~Lme OFZ~OcX s ~s DEPICTED ON THIS SKETC~ AND LEGAL DESCRIPTIO~ ILLUSTraTING Ttte LEGAL DESCIPTION TO WHICH filS' A TTA CHED. 3) JLL DIMENSIONS ~RE C~CUL~TED UNLESS OTHERI~ISE NOTED. 0 THIS SKETCH MEETS THE MINI~M TECHNICAL STANDA~S AS SET FORTH BY THE FLO~DA BOARD OF PROFESSIONML L~ND SUR VE~ORX IN CHAPTER 61 GJ 7-6, FLO~ ~DMINIST~ TIVE CODE' PUR STATUTES. , novnivl' JO SECTION ~72.02~ FLORIDA Exhibit '~ ,, Sketch of Legal Descril~tion for loth Street Right-of. FFay ~4bandOnment Indian River Count, Florida ~l~eet 2 of 2 J¥ot Falid [Fithout All Sheets 11 12 Exhibit '~ " Sketch of LegaI Description for Palm Avenue Right-of-Way Abandonment Indian River County, Florida Sheet 1 of 2 Not Valid PVithout All ~Vheets _DESCRIPTION( ALL OlV PALM ,4 VENUE AS DEPICTED ON TI:I~ AMENDED PL4 T OF OCEAN BREEZE HF-gGIITS AS SHOWN ON THE PLA T THEREOF RECORDED IN PLAT ROOK 2, PdIGE 9 OF THE PUBLIC RECORDS OF INDI.,4N RIVER COUNTY, FLORIDA, NOTES: l) THE BEARING B,~J'IS IS THE WEST LINE OF PA£M AVENUE AS DEPICTED ON THIL~ SKETCH AND LEG,IL DESCRIPTION, 2) TItIS SKETCH EXISTS SOLE£ y I~OR ~ ILLUSTRATING ?'lie PURPOSE OF ATTACHED. THE LEGAL DESCIPIlON TO WHICH IT IS 3) ALL DIMENSIONS ARE CALCULATED UNLESS OTHERWISE NOTED. 4) THIS SKETCH MEETS THE AS SET I~'ORTH BY MINIMUM TECItNICAZ STANDARDS TItE FZORIDA BOARD OF PROP'ESSiONA£ LAND SURVEYORS IN CHAPTER 62G17-6, FLORIDA ADMIN1STA TIVE CODE, PURSUANT TO SECTION 472.027, FLORIDA STATUTES. 13 Exhibit "A " Sketch of Legal Description for .Palm A venue Right-of- Way Abandonment Indian River County, Florida ,¥heet 2 of 2 Not Valid ~tthottt All Sheets lc< \ \ \ \ \ GRAPHIC SCALE ]4 LOCATION MAP 15 PROPERTY PHOTOGRAPHS TAKEN JULY 12, 2004 WESTERLY VIEW OF PARCEL A RIGHT-OF-WAY ALONG UNIMPROVED JACKSON STREET. (99D-1). SOUTHERLY VIEW ALONG PARCEL C RIGHT-OF-WAY (PALM AVENUE) FROM NEAR NORTHWEST CORNER OF SITE. (99D-2). SOUTHWESTERLY VIEW ACROSS U.S. #1 & JACKSON STREET INTERSECTION OF SUBJECT OVERALL PARCEL. (99D-4). SOUTHERLY VIEW ALONG U.S. #1 FROM JACKSON STREET INTERSECTION. SUBJECT PROPERTY ON RIGHT, (99D-5). NORTHWESTERLY VIEW OF OVERALL PARCEL AND PARCEL B UNIMPROVED MADISON STREET FROM U.S. #1. (99D-9). NORTHERLY VIEW ALONG U.S. #1 FROM ADJACENT TO SUBJECT PROPERTY ON LEFT. (99D-8). WESTERLY VIEW OF EXISTING JACKSON STREET RIGHT-OF- WAY FROM EASTERN EDGE OF PARCEL A. (99D-3). NEIGHBORHOOD A neighborhood may be defined as follows: A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises. Source - Taken from The Dictionary of Real Estate Appraisal Fourth Edition, sponsored by the Appraisal Institute, 2002 page 193. The subject property is located within a commemial strip neighborhood along the U.S. #1 Commemial Corridor that extends from just south of the City of Sebastian northward to the unincorporated Town of Roseland. The subject is located in the north central portion of the overall neighborhood along the west side of U.S. #1 adjacent to Jackson Street. It is located just north of the established downtown City of Sebastian area, but adjacent to the commemial stdp associated with Walmart to the north. The neighborhood boundaries are the Indian River Drive/U.S. #1 intersection to the south and the Sebastian River Bridge to the north. Uses along the east and west sides of U.S. #1 create the east and west boundaries, with the Florida East Coast Railway along the western limits. Thus, the subject neighborhood consists of a narrow strip along both sides of U.S. #1, approximately four miles in length, from just south of the City of Sebastian northward to the Sebastian River Bridge. The primary neighborhood artery is U.S. Highway #1. In most of the subject neighborhood, U.S. #1 is a four-lane highway with a landscaped or concrete median. This median is provided with deceleration lanes for left tums and U-turns. It has been recently improved with new paving and landscaping, along with brick areas in the medians. Portions of U.S. #1 in the City of Sebastian also contain an additional lane for parking. Overall, the neighborhood is approximately 50% developed. The majority of the development is located either at the north end of the neighborhood, which is in the Walmart to Roseland Shopping Center Area, or the downtown area of the City of Sebastian. Uses vary from commercial to older single family structures. Increased demand for commercial uses along U.S. #1 has made it feasible to convert some of these residential uses to commercial use. Commercial U.S. #1 uses within the City of Sebastian-U.S. #1 corridor include strip centers, office buildings, banking facilities, restaurants, two auto parts stores, funeral home, restaurants, and numerous other commercial properties. This section of the neighborhood is over 70% developed with a mixture of older residential, older commercial, and newer commercial uses. There has been some new office buildings constructed over recent years, along with renovation of older buildings. New improvements include the Key West Inn motel adjacent to Captain .Hiram's and the Villages, a phased good quality commercial project. A new Best Western Motel ~s under construction in this portion of the neighborhood, along the west side of U.S. #1, approximately 400 feet south of Davis Street. 20 The southern neighborhood area includes a bar, car wash and service station, along some restaurant uses. The large Sebastian Square Shopping Center is the most significant improvement in this neighborhood area. It consists of a large neighborhood shopping center, which originally included a Walmart store, but closed about 5 years ago. The store area was then sub-leased to Beall's Outlet, but is currently vacant. The shopping center local space has also had significant vacancy over the years. BJ's B-B-Q Restaurant to the north has also closed and is currently unoccupied. This southern neighborhood area has had little new construction over recent years, except for a small owner occupied office building. The northern portion of the neighborhood has benefitted with the construction of the Walmart Superstore, northwest of U.S. #1 and Jackson Street. This is a large Superstore that includes a full service grocery store. Adjacent commercial development has begun and more is anticipated for the area of U.S. #1 around the Walmart store. The Sebastian River Medical Center has been the primary development factor north of Roseland Road. A large frae standing Kmart store was constructed just south of Riverwalk Plaza shopping center in 1994. This store has since closed, along with other non-performing storas as part of a corporate downsizing. Most likely the adjacent Walmart Superstora contributed to the less than optimal business at this store. However, the adjacent Riverwalk Shopping Center, Roseland Plaza Shopping Center, Walgraens, Riverside Bank, Ruby Tuesday Restaurant, and other commercial uses have fared better around the U.S. #1/Roseland Road intersection. Further, the former Kmart store was racently purchased and is being demolished for a new Home Depot. A car wash facility, along with a medical office building have been completed over the last 3 to 5 years, as well as new fast food facility with Taco Bell, KFC, and Pizza Hut. A new bank branch for World Savings was completed about 2 years ago, just southeast of Walmart. Two new retail strip centers wera constructed last year, one just south of World Savings and the other across U.S. #1 to the east. Lease-up has vaded with the one new strip center containing Blockbuster Video and the Dollar Store almost fully leased, but the other center was still attempting to find tenants as it completed construction, it has since been converted to a medical office condominium and sold out under this arrangement. A new retail/office building of about 9,000 square feet is currently under construction along the west side of U.S. #1, about 1 block south of Jackson Straet. Ruby Tuesday opened a new rastaurant along the west side of U.S. #1, just north of Roseland Road. Other fast food national restaurants are scattered throughout the neighborhood. These include Wendy's and former Kentucky Fried Chicken, in the northern portion of the City of Sebastian, as well as McDonalds and Checkers in the Roseland area. Kentucky Fried Chicken had closed, as they moved to the new facility at the northwest corner of U.S. #1 and Jackson Street that they share with Pizza Hut and Taco Bell. However, Papa John's then purchased this facility and completed renovations, although since closed, but recently purchased and planned for Ay Jalisco Restaurant. Other local restaurants also service the Sebastian area, including some along the Sebastian River. Wendy's is located along U.S. #1 in the northern portion of the downtown area. Economic factors related to real estate had not been ideal, during the period between 1990 and about 1995/1996, but have slowly improved each year over the last five to seven years. Oversupply conditions have improved and new construction is occurring at a steady pace. Long term outlook for the neighborhood is positive, due to the limited supply of commercial land in the Sebastian area, and the forecast increased residential growth. The subject property is located along the west side of U.S. #1, adjacent to the southwest corner of Jackson Street. It is convenient located between the downtown area ofthe City of Sebastian to the south and Walmart Superstore to the north. Future outlook is for continued commercial development in the subject neighborhood area. ZONING The zoning authority for the subject property is the City of Sebastian. The subject property is presently zoned Commercial Riverfront (CR), which is a relatively new zoning that has been adopted by the City of Sebastian. Also, the new Comprehensive Land Use Plan (CLUP) designation is Riverfront Mixed Use (RMU), which is the new CLUP designation for this area of Sebastian. The RMU CLUP designation information is summarized below, followed by the CR, zoning information: Riverfront Mixed Use (RMU) The Riverfront Mixed Use designation is intended to provide a mixture of residential, commercial, recreational, and institutional uses in the Riverfront District. The City of Sebastian anticipates by 2020 the mix of uses in RMU shall be 25% residential uses, 20% institutional uses, and 55% commercial uses. The allowable residential uses are single family, duplexes, multiple family up to 8 units per acre, and commercial resort residential uses. Institutional uses are child care services and facilities, marine related educational, cultural or civic activities, etc. Commercial uses include business and professional offices, medical services, wet or dry storage of boats, boat sales and rentals, marine power sales, marine fuel sales, bait and tackle shops, restaurants (excluding drive-ins and fast food services) fish markets, madne related specialty retail sales and services, marine accessory uses, farmer's markets, yacht clubs, bars and lounges, waterfront general commercial activities, indoor theaters and other enclosed commercial amusements, plant nurseries, hotels, motels, transient quarters, and parking lots without a building on the lot. There are also other residential, institutional and commercial uses, which are listed as _ conditional uses. Commercial Riverfront Zoning (CR) The purpose and intent of the CR zoning district is to provide a management framework for implementing Comprehensive Plan objectives and policies for the Riverfront Mixed Use designation illustrated on the Future Land Use Map. The zoning district is intended to provide for a mixture of uses and a variety of opportunities for recreational and commercial uses while protecting the environment. Permitted uses include most of the same uses, as previously summarized for the Riverfront Mixed Use (RMD) Comprehensive Land Use Plan designation. The specific permitted uses for the new CR, Commercial Riverfront zoning district are summarized below: Cultural or Civic Facilities Educational Institutions Administrative Services Clubs & Lodges Business & Prof. Offices Medical Services Commemial Retail Gasoline Sales, Retail Restaurants Wet or Dry Storage of Boats Home Occupations Madne Related Trade & Skilled Services Madne Power Sales and Service Boat Sales 8, Rentals Hotels & Motels Bait & Tackle Shops Yacht Clubs Accessory Uses to Permitted Uses Parking Lots Without a Building on Lot All Uses Permitted in the RM-8 Zoning DJstdct * Restaurants exclude drive-thru facilities and commercial retail is limited to less than 10,000 SF. There are also other uses that are considered as Conditional Uses including vehicular service and maintenance, per the City of Sebastian Planning and Zoning Department. However, the subject property is most likely grand-fathered in under its present service garage use, although the grand-fathering rights can be lost if the property is vacant for over 6 months. Size & Dimension Criteria Maximum FAR: Maximum Height: Maximum Building Coverage: Minimum Open Space: Maximum Impervious Surface: 50% 35 feet (25 feet for property located east of Indian River Drive) 30% 25% - Non-Residential 8O% Minimum Lot Size: Minimum Lot Width: Minimum Lot Depth 10,000 SF 80 Feet 125 Feet 23 Minimum Setbacks: (Commercial Uses) Front Yard: Front Yard: None required, with sidewalk, curb & gutter 10 feet required without sidewalk, curb & gutter Side Yard: 5 feet, increasing to 10 feet when abutting a residential district or use. Rear Yard: 10 feet, increasing to 30 feet when abutting a residential distdct or use. Parking requirements for various uses are summarized below: Parking Requirements Business & Professional Office: 1 space per 200 SF of office space. Retail Sales Stores: 1 space per 150 SF, up to 5,000 SF, then 1 space per 200 SF, between 5,000 SF and 10,000 SF, followed by 1 space per 250 SF, for building over 10,000 SF. Restaurants (Sit-Down): 1.5 spaces for each 100 SF of gross floor area, excluding food preparation area, but including outside customer service areas. Restaurants (Take-Out Only): 3 parking spaces, plus 1 spaces for each 200 SF of gross building area. Restaurants (Delivery Only): I space for each 200 SF of gross building area. Auto Repair: 2 spaces for each bay and (1) space for each 400 square feet of office or sales area. Residential development is also allowed up to a maximum of 8 units per acre. It has slightly different setback and open space requirements. Obviously, the subject overall parcel including the platted lots in Blocks 8 and 9 of Ocean Breeze Subdivision, along with the three adjacent right-of-way parcels will have this same CR, Commercial Riverfront zoning. It is very similar to the previous CG, Commercial General Zoning district, but was designed for the new dverfront overlay distdct which includes some additional requirements on building design and appearance. 24 CONCURRENCY Concurrency is the comparison of any proposed development's impact on public facilities and the capacity of the public facilities that are, or will be, available to serve the proposed development. Compliance with concurrency is required of all proposed new development in Indian River County. This is a requirement for public facilities and services to be available concurrent with the impacts of development. Components considered in the concurrency requirement include traffic and transportation facilities, sewage collection facilities, potable water facilities, drainage, park and recreation facilities, etc. Typically, concurrency is most applicable to roads and traffic capacity. Thus, if a project is proposed, its impact must not exceed the capacity levels of current infrastructure, or the plan must propose the expansion of the infrastructure and the source of funds required to construct these improvements. There are no known concurrency issues, that affect the subject property, based on our observations. Site plan and other approvals will be required for development of the subject property. UTILITIES Utilities available to be provided to the subject site are as follows: Electricity: Water: Sewer: Telephone: Trash: Florida Power & Light Company Indian River County * Indian River County * Bell South Private Carrier * Neither county water or sewer service are currently provided to the subject property. Presently, there is county water service located along the east side of U.S. #1, adjacent to the subject property. County sewer service is located to the west adjacent to the FEC Railroad Tracks reportedly in the utility easement on Parcel C. These services were reviewed per the county utility maps. Costs of line extensions, hookups and metering, as well as impact fees are typically the responsibility of the property owner. Based on evidence from nearby properties and from utilities authorities, the subject property is being appraised as if utilities are available to the site sufficient in capacity to support the Highest and Best Use at costs that are typical to competing properties. See Special Limiting Condition #1. 25 TAX INFORMATION The taxing authority is indian River County. Taxes are based on Just Values that are calculated by the Indian River County Property Appraiser and on milage as set by the Tax Collector using various taxing districts' approved budgets. Taxes are assessed in arrears based on valuations as of January 1st of the tax year. Tax bills are sent out in November and become payable January 1st of the new year. The 2003 Indian River County Tax Roll reports the following information for the subject property. Tax Parcel Number 30-30-38-00001-0080-00001.0 (Block 8) 30-30-38-00001-0090-00004.0 (Block 9) Totals Assessed Value 2003 Taxes $515,040 $11,585.14 $ 75,640 $ 1,787.86 $590,680 $13,373.00 The subject property is assessed as two individual parcels, consisting of all of Block 8 and the approximately westem half of Block 9. These two parcels are indicated to contain a total of 4.84 acres, per the county tax rolls. Additionally, there is the additional three parcels of right-of-way included in the subject property appraised, although currently not assessed as they are owned by the City of Sebastian. Florida's Constitution requires all property to be appraised at Just Value. While this concept is not adequately defined in the Constitution nor in Flodda Statutes, numerous court decisions have held that it approximates Market Value as defined herein, less normal seller expenses of sale, estimated at fifteen percent (15%). While this represents the level of the property appraiser, it has been found that assessments produced by mass appraisal techniques vary considerably and are not good indicators of Market Value. FLOOD ZONE According to the Federal Emergency Management Agency National Flood Insurance Program Map #12061C0076E, dated May 4, 1989, the subject property appears to be located in Flood Zone X. Flood Zone X is an area outside the 100 to 500 year flood zone and flood insurance is not required. CENSUS TRACT The subject is designated as being within Census Tract 508.01, based on Census Tract Map #-061 for Indian River County, Florida, as prepared by the U.S. Department of Commerce for 2000 census data. 26 SITE DESCRIPTION The subject property consists of three road right-of-way parcels that are presently owned by the City of Sebastian, but are being considered for abandonment for use by the adjacent commercial parcel at the southwest corner of U.S. #1 and Jackson Street. The three parcels include the western portion of Jackson Street and Madison Street, along with the Palm Avenue. All three of these road right-of-way areas are currently unimproved and both the Madison Street and Palm Avenue portions include wetlands. They are identified as parcels A, B, and C. Per our calculations, they total approximately 72,281 +- square feet of site area, or 1.66 +- acres, with the calculations shown below: Parcel Ri(3ht-of-Way Parcel A Jackson Street Parcel B Madison Street Parcel C Palm Avenue Totals Effective Dimensions 80' x 227.765' 80' x 297.875' 40.56' x 759.11' 17,661 SF 23,830 SF 30.790 SF 72,281 SF 0.41 Acres 0.55 Acres 0.71 Acres 1.66 Acres The adjacent commercial parcel is currently owned by Mr. Collins and includes all of Block 8 and the western approximate ~ of Block 9, in Ocean Breeze Subdivision. These site areas total approximately 201,774 +- square feet, or 4.63 +- acres, again per our calculations which are subject to confirmation by current survey and are summarized below: Please See Special Limiting Condition #3. Parcel Effective Dimensions Block 8 250' x 595.66' 148,915 SF 3.42 Acres Block 9 250' x 211.435' ...52,859 SF 1.21 Acres Totals 201,774 SF 4.63 Acres Site Area/SF Total site area of both the existing parcels and adjacent right-of-way is approximately 274,055 +- square feet, or 6.29 +- acres. This includes approximately 152,500 +- square feet, or 3.50 +- acres of uplands and 121,555 +- square feet, or 2.79 +- acres of wetlands, per the information provided and our calculations. Overall Parcel Size Blocks 8 and 9 201,774 SF 4.63 Acres (3) Right of Way Parcels 72 281 SF .1.66 Acres Totals 274,055 SF 6.29 Acres A copy of the county tax plat map is shown on the next page. A reduced copy of the site plan provided follows the plat map. 2'7 COPY OF PLAT MAP 28 COPY OF SITE PLAN \ \ ? EXIS'IINO WETLAN 2,79 7OTAL ACRES WETLANDS !MPACTED !.71 TOTAL ACRES WEll. ANDS CONSER\~O LOG TOTAL ACRES PRi'LIMINARY PLAN \ \ · \ Parcel A consists of the Jackson Street (a/k/a 11th Street) road right-of-way on the northwest portion of the subject overall parcel. The eastern portion of the Jackson Street right-of-way is currently improved with a paved roadway that provides access to the Walmart Super Center to the north along with other commercial businesses. The western portion of this roadway has never been improved and is reportedly being considered for abandonment, along with parcels B and C, by the City of Sebastian, It is located adjacent to the north of lots #9 thru #11, in Block 8 of Ocean Breeze Subdivision. This parcel has 80 feet of north/south frontage and 227.765 feet of average depth, as the north property line is indicated at 241.72 feet and the south property line at 199.81 feet. The west property line is 90.31 feet with the effective frontage projected at 80 feet. The site area is mostly cleared and level and reportedly consists of all uplands. Total site area is calculated at 17,661 square feet, or .41 acres. Parcel B consists of the Madison Street (a/k/a 10th Street) road right-of-way on the west central portion of the subject overall parcel. Madison Street is currently unimproved to the west of U.S. #1. Parcel B consists of the western portion of the road right-of-way that is being considered for abandonment. It is located adjacent to the north of lots ~N. thru #7 in Block 8 and adjacent to the south of lots 13 thru 19 in Block 9. This parcel also has 80 feet as the effective north/south dimension and 297.875 feet of average depth (effective east/west dimension). The north property line is indicated at 318.93 feet and the south property line.at 276.92 feet. The west property line is 90.31 feet with the effective frontage at 80 feet. The site area is wooded and reportedly consists of about 75% wetlands and 25% uplands. The upland portion consists of the eastern edge of Parcel B with dimensions of about 80 feet by 75 feet, or a total of 6,000 square feet. Total site area is calculated at 23,830 square feet, or .55 acres, indicating about 17,830 square feet of uplands. Parcel C consists of the Palm Avenue road right-of-way along the western edge of the subject overall parcel. This roadway has never been improved and is located adjacent to the east of the FEC Railroad Tracks. It reportedly consists of all wetlands and has forecast effective dimensions of 40.56 feet by 759.11 feet, or a total of 30,790 square feet, which equates to 0.71 acres. This parcel reportedly has a 20 foot utility easement for water and sewer lines. Overall Site The subject overall site consists of an irregular shaped parcel, located adjacent to the southwest comer of U.S. #1 and Jackson Street. It has 255.08 feet of diagonal frontage along the west side of U.S. #1 and 635.81 feet along the south side of Jackson Street, although the western approximate 200 feet is unimproved. Effective frontage along U.S. #1 is indicated at 250 feet. The southwest portion of the overall site lacks U.S. #1 frontage. Total site area is calculated at 375,055 square feet, or 6.29 acres. 30 PLAT MAP - THREE RIGHT-OF-WAY PARCEl, ,g 3] The northeastern portion of the site has good visibility and commercial exposure from both U.S. #1 Jackson Street. This portion of the site is elevated above the surrounding roadways and then slopes downward to the west and the FEC Railroad Tracks. The site is heavily wooded and access was restricted to the adjacent roadways. The wetland areas are located on the western portion of the site, as shown on the site plan provided on a previous page. Per our calculations and the information provided, the subject site contains a total of 3.50 acres of uplands and approximately 2.79 acres of wetlands. U.S. Highway #1 provides access and commercial exposure to the subject site. U.S. #1 is a four-lane highway with a landscaped or concrete median. The intersection of U.S. #1 and Jackson Street has a traffic light and turn lanes. Access to the subject site will most likely be restricted to Jackson Street, per the preliminary site plan provided. This roadway consists of a two lane paved access roadway which provides access to the Walmart Super Center and other commercial parcels to the north. The subject site is being considered for an aggressive wetland mitigation plan that will allow for a commercial development containing three buildings. Two of the buildings are one story and contain 11,500 square feet and 12,600 square feet, with a third two story building also being considered totaling 27,600 square feet. However, this site plan is very preliminary in nature and was pdmadly designed to facilitate wetland permits and mitigation, per the information provided. Surrounding improvements include the FEC Railroad Tracks to the west and U.S. #1 to the east. Jackson Street is located to the north along with commercial buildings and Walmart. South of the subject is the Sebastian Senior Center along with a used car sales facility. A new retail/office building is being constructed adjacent to the southeast of the subject, with an older residence located behind this new building currently under construction. In summary, the subject property appraised consists of three road right-of-way parcels that are presently owned by the City of Sebastian, but are being considered for abandonment for use by the adjacent commercial parcel at the southwest corner of U.S. #1 and Jackson Street. The three parcels include the western portion of Jackson Street and Madison Street, along with the Palm Avenue. All three of these road right-of-way areas are currently unimproved and both the Madison Street and Palm Avenue portions include wetlands. They are identified as parcels A, B, and C. Per our calculations, they total approximately 72,281 +- square feet of site area, or 1.66 +- acres. The adjacent commercial parcel is currently owned by Mr. Collins and includes all of Block 8 and the western approximate ~ of Block 9, in Ocean Breeze Subdivision. These site areas total approximately 201,774 +- square feet, or 4.63 +- acres, Total site area of both the existing parcels and adjacent right-of-way is approximately 275,055 +- square feet, or 6.29 +- acres. This includes approximately 3.50 +- acres of uplands and 2.79 +- acres of wetlands, per the information provided, which is all subject to confirmation by current survey. Please See Special Limiting Condition #3. HIGHEST AND BEST USE Property market value trends can be analyzed through a study of the forces which drive this market activity. These forces are referred to as supply and demand, substitution, balance and external interference. The term "Highest and Best Use" refers to the optimum use of a property, considering the impact of all of these market forces on a specific property. The value of real property is directly related to the use to which it can be put. A parcel may have several different value levels under alternative uses. The property appraised herein is appraised under its Highest and Best Use, as defined below: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that ~'esults in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability," Source: The Dictionary of Real Estate Appraisal - 3rd Edition, sponsored by the Appraisal Institute, 1993, Page 171. In each appraisal of improved property there are two considerations of Highest and Best Use: one for the land considered as though vacant and one for the property as improved. Within each analysis four sets of use constraints are considered: legally permissible, physically possible, economically feasible, and maximally productive. Legally permissible restrictions include private restrictions, zoning, building codes, historic district controls, and environmental regulations. Physically possible uses are determined by the size, shape, area, topography and accessibility of a parcel of land. Included in this analysis are the risk of natural disasters, capacity and availability of public utilities, and the physical components of the improvements. Financial feasibility considers uses that are legally permissible and physically possible, and determines which ones produce a positive return. A maximally productive use is the financially feasible use that produces the highest residual land value. The Highest and Best Use of land assumes than the site is vacant and that the site could be utilized at the Highest and Best Use which is determined in this analysis. The Highest and Best Use of the site as improved correlates the current improvements with improvements that would be made at the optimum development of the site; as determined in the Highest and Best Use of the vacant land. 33 Three Right.of-Way Parcels The subject property consists of three road right-of-way parcels that are presently owned by the City of Sebastian, but are being considered for abandonment for use by the adjacent commercial parcel at the southwest corner of U.S. #1 and Jackson Street. The three parcels include the western portion of Jackson Street and Madison Street, along with the Palm Avenue. All three of these road right-of-way areas are currently unimproved and both the Madison Street and Palm Avenue portions include wetlands. They are identified as parcels A, B, and C. Per our calculations, they total approximately 72,281 +- square feet of site area, or 1.66 +- acres. They have narrow shapes with both Parcels A and B being about 80 feet by 220 to 300 feet in size and Parcel C being about 40 feet by 759 feet. Physically, these parcels have little if any independent utility due to the narrow shapes and irregular sizes, along with the wetlands on parcels B and C. Only parcel A is felt to have potential for independent utility as it is located adjacent to the western edge of Jackson Street and reportedly consists of all uplands. Further, Parcel C reportedly has a 20 foot utility easement for water and sewer lines. Highest and Best Use of these parcels is either for use as originally designed as road right-of- way or abandonment and assemblage with adjacent parcels. The adjacent commercial parcel is currently owned by Mr. Collins and includes all of Block 8 and the western approximate ~ of Block 9, in Ocean Breeze Subdivision. These site areas total approximately 201,774 +- square feet, or 4.63 +- acres. Total site area of both the existing parcels and adjacent right-of-way is approximately 275,055 +- square feet, or 6.29 +- acres. This includes approximately 3.50 +- acres of uplands and 2.79 +- acres of wetlands, per the information provided. Highest and Best Use of these right-of-way parcels is considered in conjunction with the adjacent commercial parcel, as discussed under the overall parcel Highest and Best Use discussion beginning below. Overall Parcel Physically, the subject overall site is characterized good commercial U.S. #1 location in the northern portion of the City of Sebastian. It is located adjacent to the southwest corner of U.S. #1 and Jackson Street, between the Walmart Super Center and associated commercial development to the north and the downtown U.S. #1 area of the City of Sebastian to the south. The site consists of an in irregular shaped corner site, with effective dimensions of about 250 +- feet along U.S. #1 and 600 +- feet of effective depth. The southwestern portion of the site lacks U.S. #1 frontage. Total site area is indicated at approximately 6.29 +- acres, including the three adjacent road right-of-way parcels. 34 Overall, the subject site has adequate frontage, depth, and size to accommodate an independent commercial use. It has frontage along both U.S. #1 and Jackson Street, both providing commercial exposure. Exposure and access, as well as surrounding improvements support commercial uses. Legally, the subject property is presently zoned Commercial Riverfront (CR) by the City of Sebastian. The Comprehensive Land Use Plan (CLUP) designation is Riverfront Mixed Use (RMU). The CR, Commercial Riverfront zoning is very similar to the previous CG, Commercial General Zoning district, but was designed for the new riverfront overlay distdct which includes some additional requirements on building design and appearance. Permitted uses include commercial uses such as business and professional offices, along with residential uses, such as single family residences, duplexes, multiple family up to 8 units per acre, motels and hotels, along with commercial resort residential uses. It is assumed that the three road right-of-way parcels will have this same zoning designation. To be financially feasible a use should return a positive net income to the investor. Development trends in the immediate area of the subject have been good with much new commercial development to the north. Most development in the neighborhood has been in the ,form of retail commercial or office buildings. Current occupancy levels of retail/office space Js better than prior years, with fewer vacancies noted in the commercial buildings along U.S. #1. There has been some new construction and renovation of commercial buildings and office buildings over recent years. A new motel (Key West Inn) has been constructed with another Best Western Motel currently under construction. Further, a retail/office building is currently under construction adjacent to the subject property. A maximally productive use is a use that returns the greatest value to the site. In the case of the subject neighborhood, these uses have been pdmadly in the owner-occupied market segment, along with some commercial investment oriented properties. Generally, the most successful uses in the subject neighborhood have been owner occupied, relatively small improvements. Financial feasibility of these uses is more dependent upon success of the owner's business, than tenant demand and prevailing rental rates. Nevertheless, there have been some successful commercial investment type strip centers also developed. In summary, the subject site has a good commercial location along U.S. #1 in the City of Sebastian. The site is adequate in size for independent commercJal use and there have been some new commercial retail and office buildings constructed over recent years. Motel improvements are also being developed. Our opinion of the Highest and Best Use of the subject, as if vacant, is for future commercial development of the subject site with some type of full or at least partial owner occupied use, in say the retail or professional office type categories. Construction quality should be average to good and an intensive building design and building to land ratio should be planned, along with adequate parking. Alternatively, the subject may be held as vacant, or consider commercial investment development if lease-up demand is adequate to warrant construction of a multi-tenant retail/office project. VALUATION PROCESS For most parcels of vacant land, only one of the traditional three approaches to value is useful. This, of course, is the Sales Comparison Approach. In this approach, the subject property is compared to parcels which have been involved in recent transactions, and adjustments are made to the unit prices derived from those sales, to recognize differences between the subject and the sales. The Income Approach is not generally used since most parcels of vacant land are not producing income, and the Income Approach consists of capitalizing net income at a market rate, to indicate value. When sales of vacant parcels are not available for comparison, which often is the case in built-up areas, the residual income from a hypothetical highest and best use building may be capitalized to indicate land value. This was not the case here, since recent sales throughout the community are available, and this approach was not used. The Cost Approach, the third of the traditional approaches, is by definition not useable for vacant land. Accordingly, we have made use only of the Sales Comparison Approach. SALES COMPARISON APPROACH The subject property appraised consists of three right-of-way parcels that are presently owned by the City of Sebastian, but are being considered for abandonment for use by the adjacent commercial parcel at the southwest corner of U.S. #1 and Jackson Street. The three parcels include the western portion of Jackson Street and Madison Street, along with the Palm Avenue. All three of these road right-of-way areas are currently unimproved and both the Madison Street and Palm Avenue portions include wetlands. They are identified as parcels A, B, and C. Per our calculations, they total approximately 72,251 +- square feet of site area, or 1.66 +- acres. The adjacent commercial parcel is currently owned by Mr. Collins and include all of Block 8 and the western approximately ~ of Block 9, in Ocean Breeze Subdivision. These site areas total approximately 201,774 +- square feet, or 4.63 +- acres, again per our calculations which are subject to confirmation by current survey. 36 Total site area of both the existing parcels and adjacent right-of-way is approximately 275 055 +- square feet, or 6.29 +- acres. This includes approximately 3.50 +- acres of uplands and 2.79 +- acres of wetlands. Our opinion of the fee simple estate Market Value of the subject property utilizes the Sales Comparison Approach. We analyzed sales of commercial acreage parcels in the subject neighborhood area, along with competing areas throughout Indian River County. Current listings were also considered. The average value for the overall parcel was first provided, then allocated to the three right-of-way parcels which included deductions for wetlands and marketability. Six comparable land sales are used in the valuation analysis of the subject property. The sales are compared to the subject on the basis of price paid per square foot and per acre, with the per square foot valuation used for the three right-of-way parcels. The first adjustments considered are for financing and conditions of sale. Other adjustments are made or considered for time, location/access, size, shape/depth, and topography. Financing for each sale was analyzed for unusual conditions which might have an effect on sale pdces. No sale was found to have unusual financing. Thus, no financing adjustments are made. Conditions of sale adjustment takes into account the motivations behind a particular transaction, such as assemblage and other factors. No adjustments for conditions of sale were made, unless described in the individual sale descriptions. A time adjustment of plus 1% per month or 12% per year is used, as land values have been increasing over the last year. The most recent sales are generally given most weight, or at least the date of sale is considered in the weighing of each sale. Location adjustments are based on limited sales comparison analysis, but primarily on the appraisers judgement considering observed unit pdce variances, among historical sales, based on the different attributes of each location. Access and exposure are also considered in the location adjustments made, as the subject site has a good commercial corner location. Size adjustments are applied as noted, as larger sites tend to sell for less per unit than smaller sites and visa versa. The subject site is around 6.29 +- acres in total size, although only including about 3.50 +- acres of uplands and approximately 2.79 +- acres of wetlands. 37 Adjustments are made for shape/depth, as sites with less depth tend to sell for more per unit of comparison, while sites with greater depth having less utility sell, for less per unit of comparison. Further, sites with irregular or narrow shapes also tend to sell for less per square foot, based on our observations. The subject site has an irregular shape, but has good U.S. #1 and Jackson Street frontage and adequate depth, in our opinion. Topography (Wetlands). An adjustment was considered for topography for any additional or unusual clearing or fill requirements, including wetlands. No similar sales of commemial sites with wetlands were found, thus we have used these commercial sales and adjusted downward for the subject wetlands. The subject property contains approximately 3.50 +- acres of uplands and approximately 2.79 +- acres of wetlands, or the wetlands consist of roughly 44% of the overall site area. The subject wetlands are obviously forecast to provide less value per square foot than the uplands. An adjustment of minus 30% is made for the subject wetlands for topography. On the following pages are discussions of the six commercial land sales analyzed, followed by a Land Sales Summary and Adjustment Grid and a location map of these land sales. 38 LAND SALE #1 Type of Property: Location: Grantor: Grantee: Commercial Land West side of U.S. #1, just south of new World Savings Bank Branch (Sebastian Commons). Commerce Investment Company of Shawnee, Inc. Sebastian Venture #1 Zoning: Highest and Best Use: CR, Commercial Riverfront Improve with a retail/commercial use. Date of Sale: Amount of Sale: Recorded: Tax I.D.#: November, 2001 $615,000 OR Book 1445, Page 2649 21-30-38-00001-0000-00027.0 30-30-38-00009-0000-00001.0 Legal Description: Part of Lot 27, Town of Wauregan, Indian River County, Florida. Site Size: Frontage: 295 +- feet Street: U.S. Highway #1 Average Depth: 345 +- feet Size: 101,948 +- SF Unit Price: $6.03 / SF ($262,775/Acre) Financing: None indicated, appeared to be all cash to seller. Comments: This sale consists of a commercial parcel, located just Southeast of the Walmart and new World Bank facility that was developed with the Sebastian Comers Shopping Center. It is located adjacent to the south of Walmart and north of Jackson Street, along the west side of U.S. #1. This parcel consists of two sites, one that was declared surplus by the City of Sebastian and another adjacent parcel. The overall assembled site is slightly irregular in shape with dimensions of about 295 feet by 345 feet. Total land area is calculated at 101,948 square feet. This parcel has since been developed with the Sebastian Corners Shopping Center containing Blockbuster Video and the Dollar Store as anchor tenants. This land sale is somewhat older and adjusted upward plus 32% for time. It is felt similar in location but superior in shape/depth. Further, a minus 30% adjustment is made for topography (wetJands). This land sale indicates an adjusted price per square foot of $5.18. LAND SALE #2 Type of Property: Location: Vacant commercial site Southwest corner of U.S. #1 and Barber Street, Indian River County, Flodda Grantor: Grantee: Nelson C. & Marie Delores Hyatt Walgreens, Co. Zoning: Highest and Best Use: CG, General Commercial Improve the site with a commercial use, as demand warrants. Date of Sale: January 8, 2002 Recorded: Amount of Sale: $825,000 OR Book: 1458 Page: 940 Tax I.D.#: Legal Description: 21-31-39-00000-3000_00001.0 Part of Section 21, Township 31 South, Range 39 East, Indian River County, Florida. Site Size: Frontage: 340 +- feet 2.61 acres Depth: 330 +- feet 113,691 SF Unit Price: $7.26/SF Financing: All cash to seller, no financing indicated. Summary of Sale: This is a sale of the commercial corner site adjacent to the southwest corner of U.S. #1 and Barber Street, just southeast of the City of Sebastian. This property was purchased by Walgreens for future development of a drug store. The new Indian River Publix Shopping Center is located adjacent to the north on the northwest corner of U.S. #1 and Barber Street and the subject property is located to the south. The corner location of this sale is felt slightly superior to the subject and adjusted minus 10%. Size is smaller overall, but similar to the subject upland area and not adjusted. The subject wetlands are adjusted minus 30% under topography. Net adjustment is minus 40%, indicating an adjusted price per square foot of $5.66, or $246,553 per acre. 40 LAND SALE #3 * Type of Property: Location: Vacant commercial site West side of U.S. #1, south of Davis Street Sebastian, Florida Grantor: Grantee: Minos E. & Norma C. Givens Sebastian Hotel Investment Zoning: Land Use: Highest and Best Use: CR, Commercial Riverfront C/I, Commeroial Industrial Node Improve the site with an intensive retail commercial use, as demand warrants. Date of Sale: July, 2003 Recorded: Amount of Sale: $249,000 OR Book: 1612 Page: 2994 Tax I.D.#: Legal Description: 21-30-38-00001-9999-00033.0 Part of Town of Wauregan, Section 2 I, Township 30 South, Range 38 East, Indian River County, Florida. SiteSize: Frontage: 175 +- feet 1.40 acres Depth: 356 +- feet 60,907 SF Unit Price: $4.09/SF Financing: All cash to seller, no financing indicated. Land Sale ff..-3 is the land sale for the Best Western Motel commercial site, which is located along the west side of U.S. #1, just south of Davis Street, in the northern portion of the City of Sebastian. The site has approximately 175 feet of frontage and 356 feet of depth. It is an intedor site located in the nodhern portion of the City of Sebastian. It contains a total of 60,907 square feet and originally sold in July 2001, for $180,000. More recently it sold in July 2003, for $249,000. This commercial site was purchased for the new 54 room Best Western Motel at a price of $249,000, which appears somewhat low, in our opinion. The sale is adjusted upward for time and location, but downward for size and topography (wetlands). It provides an adjusted value of $3.43 per square foot. 4] LAND SALE #4 Type of Property: Vacant commercial site Location: East side of U.S. #1, north of 82nd Street, Indian River County, Florida. Grantor: Grantee: Hobart Landing II Joint Venture Orchid Landing LLC Zoning: Highest and Best Use: CL, Limited Commercial Improve with a commercial development as demand warrants. Currently, hold as vacant Date of Sale: Sales Pdce: February, 2004 $1,647,700 Tax I.D. #'s: Legal Description: 33-31-39~00000-1000-00027.0,28.0 & 33-31-39-00003-0030-00002.0 Part of Section 33, Township 31 South, Range 39 East, Indian River County, Florida. Site Size: Frontage: 735 +- feet Street: U.S. #1 Depth: 950 +- feet Size: 611,452 Sq. f. (14.04 +- acres) Id:nit Price: $2.69/SF ($117,383/Acre). Financing: None indicated, appeared to be all cash to seller. This sale consists of a 14.037 +- acre commercial parcel of land located adjacent to the .no. rtheast corner of U.S. Highway #1 and 82nd Street, in Indian River County, Florida. The site Is irregular in shape and contains 735.48 +- feet of diagonal frontage along U.S. Highway #1. Depth along the north property line is indicated at approximately 1,230 +- feet, with the south property line at 642.79 feet. The site has a good, but secondary commercial location in central Indian River County, approximately I/4 mile south of County Road 510. The property is zoned CL, Limited Commercial District. The property includes some older building improvements, but they are not forecast to contribute any value to the property at the current time. The sales price of $1,647,700 equates to $2.69 per square foot, or $117,383 per acre. The sale is adjusted plus 5% for time and plus 25% for location. Size is larger and adjusted upward plus 25%. The topography is adjusted minus 30% for the subject wetlands. This sale provides an adjusted price of $3.40 per square foot, or $147,902 per acre. 42 Type of Property: LAND SALE #5 Vacant commercial site Location: Grantor: Grantee: Zoning: Highest and Best Use: Date of Sale: Sales Price: South side of 45t" Street, east of U.S. #1, Indian River County, Florida. Orange Island LLC Harbor Trade Center LLC CH, Heavy Commercial Improve with a commercial development as demand warrants. Currently, hold as vacant May, 2004 $850,000 Tax I.D. #: Legal Description: Site Size: Frontage: 420 +- feet Depth: 330 +- feet 26-32-39-00000-3000-00001.0 Part of Section 26, Township 33 South, Range 39 East, Indian River County, Florida. Street: 45t~ Street Size: 150,718 SF (3.46 +- acres) Unit Price: $5.64/SF ($245,664/Acre). Financing: None indicated, appeared to be all cash to seller. Sale #5 is a sale of a commercial site located along the south side of 45t~ Street, east of U.S. #1. This property is essentially rectangular in shape with 420 feet of frontage and 330 feet of depth. It consists of a former citrus grove that is located just east of U.S. #I and sale #6. Total site area is indicated at 150,718 square feet, or 3.46 acres. The sale occurred in May 2004, for $850,000. Indicated price per square foot is $5.64. This sale is adjusted plus 25% for location, minus 5% for size and minus 30% for topography. Indicated adjusted price per square foot is $5.18. 43 Type of Property: LAND SALE #6 Vacant commercial site Location: Grantor: Grantee: Southeast corner of U.S. #1 and 45t~ Street, Indian River County, Florida. Mildred Seligson (Tr) Orange Island LLC Zoning: Highest and Best Use: Date of Sale: Sales Pdce: CH, Heavy Commercial Improve with a commercial development as demand warrants. Currently, hold as vacant August, 2003 $55O,OOO Tax I.D. #'s: 26-32-39-00000-3000-00002.0 Legal Description: Part of Section 26, Township 33 South, Range 39 East, Indian River County, Florida. Site Size: Frontage: 310 +- feet Street: U.S. #1 Depth: 235 +- feet Size: 78,884 SF (1.81 +- acres) UnitPrice: $6.98/SF ($78,844/Acre). Financing: None indicated, appeared to be all cash to seller. Sale #6 is a sale of a commercial corner site, adjacent to the southeast corner of U.S. #1 and 45t~ Street. This property was purchased by the adjacent property owner to the east providing for U.S. #1 frontage. However, he has since sold the adjacent parcel (sale #5). This site consists of a slightly irregular shaped parcel with about 310 +- feet of frontage and 235 +- feet of depth. Total site area is indicated at 78,884 square feet, or 1.81 acres. The sale occurred in August 2003, for $550,000. Indicated price per square foot is $6.97, adjusted upward to $7.74 per square foot for time. This sale is adjusted minus 5% for size and minus 30% for topography. Indicated adjusted price per square foot is $5.03. A Land Sales Summary and Adjustment Grid is provided onthe next page, followed by a location map of the land sales used. LAND SALES SUMMARY AND ADJUSTMENT GRID 44 37294L/SHF_ETS LAND SALES SUMMARY AND ADJUSTM~NT ~RI9 GRANTOR GRANTEE SUBJECT SALE #t SALE #2 SALE #3 SALE #4 SALE #5 SALE f~ ROBERT COMMERCE NELSON MINOS HOBART ORANGE MILDRED COLLINS INVEST. CO. HYATT GIVENS LANDING II iSLAND LLC SELIGSON SEBASTIAN WALGREEN SEBASTIAN ORCHID HARBOR ORANGE VENTURE #1 COMPANY HOTEL INVEST LANDING LLC TRADE CENTRE iSLAND LLC DATE OF SALE CURRENT Now01 Jan-02 Jul.03 Fei>04 May-04 Aug-03 O.R. BOO'K/PAGE JULY, 2004 t44.5/2649 1458/940 1612/2994 I689/1798 1735/037 1832/800 FRONTAGE 259 295 300 175 735 420 310 AVEI:;~.GE DEPTH 600 345 450 356 950 330 235 SIZE -SF 274,055 10'~,948 'H 3,691 60,907 6'il,452 150,718 78,844 SIZ~ - ACRES 6.29 2,34 2~§1 1.40 14,04 3.46 1.81 ZONING CR CR CG CR CL CH CH SALE ANALYSI8 -- SALE PRICE $1,7§0,000 PRICE PER SQUARE FOOT $6.39 PRI(;E PER ACRE $278,156 TIME,ADJUSTk.~NT @ 1% PER MONTH CURRENT PRICE PER SF CURRENT PRICE PER ACRE $615,000 $825,000 $249,000 $1,647,700 $8~,000 $550,000 86.03 $7.26 $4.09 $2.68 $5.~ $6.98 $262,775 $316,094 $t78,082 $117~383 $245,6~4 $303,866 32% 30% 12% 5% 2% 11% $7.96 $9.43 $4.58 $2.83 $5.75 $7.74 $346,863 S410,922 $199,452 $123,252 $250,577 $337,29I ADJUSTMENT~ FOR DIFFERPhJCE~ LOCATION/ACCESS 0% -10% 10% 2:5% 25% 0% SIZE 0% 0% "5% 25% 0% 0% SHAPE/DEPTH -5% 0% 0% 0% -5% TOPOGRAPHY {WETLANDS) -30% -30% -30% .30% -30% TOTAL ADJUSTMENT -35% -40% -25% 20% -10% -35% ADJUSTED PRICE ! SF $5.18 $5.66 $3.43 $3.40 $5.18 $5.03 ADJUSTED PRICE 1 ACRE $225,461 $246,553 $149,589 $t47,902 $225,520 $219,239 CONCLUSION - $1,500,000, OR APPROXIMATELY $5.47 PER SQUARE FOOT. 45 LAND SALES LOCATION MAP 46 Summary and Conclusion of Land Value After adjustments, the six land sales analyzed indicate the following adjusted values per square foot and per acre for the subject overall parcel: Adjusted Adjusted Sale # Value per SF Value Per Acre 1. $ 5.18 $ 225 2. $ 5.66 $ 246 3. $ 3.43 $149 4. $ 3.40 $147 5. $ 5.18 $ 225 6. $ 5.03 $ 219 461 553 589 902 520 239 The six land sales indicate a range of adjusted prices per square foot from $3.40 to $5.66, or from about $148,000 to $246,500 per. Without sales #3 and #-4, the range tightens considerably to about $5.03 to $5.66 per square foot, or $219,000 to $246,500 per acre. Sale #1 is felt most similar in terms of location and is given substantial weight, along with sales #2 and #6. Sale #5 is also given some consideration, with sale #3 felt to have sold somewhat Iow in terms of current land values. Sale//4 is much larger and provides a lower land value indication. Currently, the subject property has an asking price of $1,750,000, which equates to $6.39 per square foot. Other sales and listings were also taken into consideration, but the above sales are felt most similar to the subject overall site. A land value conclusion is made in the upper portion of the range indicated by these sales for the subject overall parcel. Based on the analysis made, the Market value of subject overall property, as of the date of property inspection on July 12, 2004 is concluded at $1,500,000. This equates to approximately $5.47 per square foot. LAND VALUE CONCLUSION (Overall 6.29 Acre Parcel) $1,500,000 ($5.47 Per SF) Obviously, the above average value per square foot of $5.47 for the subject overall parcel includes both uplands and wetlands. Further, the uplands are located on the front portion of the site with the wetlands on the rear. Based on our calculations and the information provided, the subject property contains approximately 152,500 SF of uplands and 121,555 square feet of wetlands. The uplands are forecast to have a land value of approximately $8.00 to $8.50 per square foot, concluded at $8.25 and the wetlands are forecast to contribute approximately 25% of this amount or around $2.00 per square foot. 47 The above overall land value and price per square foot can be reasonably allocated between the uplands and wetlands, as follows, in our opinion. Uplands 152,500 SF @ $8.25/SF = $1,258,125 Wetlands 121,555SF@ $2.00/SF = $ 243,110 Total Overall Land Value $1,501,237 Roundedto $1,500,000 Next, these average land values are used to provide the value indications for the subject parcels A, B, and C. However, a deduction of minus 50% is made for marketability, due to the narrow shape and rear location of these parcels when considered as independent parcels. Obviously, their Highest and Best Use is to assemble with adjacent properties, however there is only a limited number of available parcels including the subject as the most likely user. Thus, a 50% deduction is felt reasonable due to these factors. Parcel A consists of the Jackson Street (11th Street right-of-way) adjacent to the northwest corner of the overall site. It reportedly consists of all uplands and is calculated at the average upland value of $8.25 per square foot for the 17,661 square feet, reduced by 50% for marketability. The calculations are shown below: Parcel A Site Area Value Per SF Marketability Indicated Value Uplands 17,661 SF x $ 8.25/SF x 50% = $ 72,852 Parcel A - Rounded to $ 73,000 Parcel B consists of the Madison Street (10th Street ROW) that is located on the west central portion of the overall site. It reportedly contains approximately 75% wetlands and 25% uplands, per the information provided. The uplands are located on the eastern portion and total approximately 6,000 square feet with the wetlands consisting of the remaining 17,830 square feet. The uplands are calculated at the average upland value of $8.25 per square foot with the wetlands at $2.00 per square foot. Both of these values are then reduced by 50% for marketability. The calculations are shown below: Parcel B Site Area Value Per SF Marketability Indicated Value Uplands 6,000 SF x $ 8.25/SF x 50% = $ 24,750 Wetlands 17,830 SF x $ 2.00/SF x 50% = $17,830 Total - Parcel B $ 42,580 Parcel B - Rounded to $ 42,500 48 Parcel C consists of the Palm Avenue right-of-way adjacent to the western edge of the overall site. It reportedly consists of all wetlands and is calculated at the average wetland value of $2.00 per square foot for the 30,790 square feet, reduced by 50% for marketability. Further, this parcel is reduced another 35% for the existence of the 20 foot wide utility easement for water and sewer. Reportedly, water and sewer lines are located in this easement and severely limit the functional utility of this parcel for wetland conservation, as well as possible development. Thus, an overall deduction of say 85% is applied for Parcel C, indicat ng only a 15% value contribution. However, this is considered reasonable, in our opinion, based on the information provided by George Kulcycki, President of G.K. Environmental, Inc, as to the limited utility of this parcel, as well as our forecasts. The calculations are shown below: Parcel C .Site Area ~/a ue Per SF ~ Indicated Value Wetlands 30,790 SF x $ 2.00/SF x 15% = $ 9,237 Parcel C - Rounded to $10,000 MARKET VALUE CONCLUSION - THREE RIGHT-OF-WAY PARCEL8 The subject property appraised consists of three right-of-way parcels that are presently owned by the City of Sebastian, but are being considered for abandonment for use by the adjacent commercial parcel at the southwest corner of U.S. #1 and Jackson Street. The three parcels include the western portion of Jackson Street and Madison Street, along with the Palm Avenue. All three of these road right-of-way areas are currently unimproved and both the Madison Street and Palm Avenue portions include wetlands. They are identified as parcels A, B, and C, as discussed above. First, the Market Value of the overall parcel was made and then allocated to the individual parcels as discussed above. These three parcels include both uplands and wetlands, per the information provided, thus adjustments were made for these factors along with marketability. Based on the analyses made, the fee simple estate Market Value of the subject three right-of- way parcels, as of July 12, 2004, is concluded at $146,500, allocated as follows: Parcel A Jackson Street ROW Parcel B Madison Street ROW Parcel C Palm Avenue ROW Total - Market Value Conclusion $ 73,000 $ 42,5OO $ 10,000 $125,500 49 MARKETABILITY The subject property consists of three road right-of-way parcels that are presently owned by the City of Sebastian, but are being considered for abandonment for use by the adjacent commercial parcel at the southwest corner of U.S. #1 and Jackson Street. The three parcels include the western portion of Jackson Street and Madison Street, along with the Palm Avenue. They are identified as parcels A, B, and C. Per our calculations, they total approximately 72,281 +- square feet of site area, or 1.66 +- acres. These three parcels ail have narrow shapes with both Parcels A and B being about 80 feet by 220 to 300 feet in size and Parcel C being about 40 feet by 759 feet. These parcels are forecast to have little if any independent utility due to the narrow shapes and irregular sizes, along with the wetlands on parcels B and C. Only parcel A is felt to have potential for independent utility as it is located adjacent to the western edge of Jackson Street and reportedly consists of all uplands. Highest and Best Use of these parcels is either for use as originally designed as road right-of- way or abandonment and assemblage with adjacent parcels. Obviously, these potential use scenarios limit the marketability of these parcels significantly due to the number of potential purchasers or users (demand). Obviously, the adjacent commercial parcel that is currently owned by Mr. Collins is one of the most likely potential users. He currently owns all of Block 8 and the western approximately ~ of Block 9, in Ocean Breeze Subdivision. These site areas total approximately 201,774 +- square feet, or 4.63 +- acres. Total.site area of both the existing parcels and adjacent right-of-way is approximately 274,055 +- square feet, or 6.29 +- acres. This includes approximately 3.50 +- acres of uplands and 2.79 +- acres of wetlands. Under this arrangement, these right-of-way parcels have utility for future commercial development. Considering the subject's property physical location, shape, and size, the subject's marketing time is projected to be somewhat extended in the range Of 6 months to 3 years, with a marketing time of around 2 years currently forecast. The forecast marketing period is considered to be longer than typical and does effect our opinion of the Market Value, as provided herein. REASONABLE EXPOSURE TIMF Reasonable exposure time is assumed to precede the effective date of the appraisal. Exposure time, per USPAP, may be defined as follows: The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at Market Value on the effective date of the appraisal; a retrospective opinion based upon an analysis of past events assuming a competitive and open market. The reasonable exposure time estimate takes into consideration the pdce, time, and use, of the property appraised. The reasonable exposure time, for the subject property, is also projected at 6 months to 18 months, with 9 to 12 months forecast. 50 CERTIFICATE OF APPRAISAl The undersigned do hereby certify to the best of our knowledge and belief: a) The statements of fact contained in this report are true and correct. b) The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. c) We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the padies involved. d) We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. e) Our engagement in this assignment was not contingent upon developing or reporting predetermined results. f) Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. g) Our analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. h) This appraisal report has been made in conformity with and is subject to the requirements of the Codes of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute. That Daniel A. Nelson made a personal inspection of the real property that is the subject of this report. j) No one provided significant professional assistance to the person signing this report. k) Peter D. Armfield, #0000524 and Daniel A. Nelson, #0000897 are currently State of Florida Certified General Real Estate Appraisers. I) As of the date of this report, I, Peter D. Armfield, MAI, SRA, have completed the requirements under the continuing education program of the Appraisal Institute. CERTIFICATE OF APPRAISAL (continued) 51 m) n) The use of this report is subject to the requirements of the Appraisal Institute and the State of Florida Real Estate Appraisal Board relating to review by its duly authorized representatives. The real property which is the subject of this appraisal is valued, as of July 12, 2004, as follows: ONE HUNDRED TWENTY FIVE THOUSAND FIVE HUNDRED DOLLARS ($125,500) The above Market Value Conclusion can be reasonably allocated as follows, in our opinion. Parcel A Jackson Street ROW Parcel B Madison Street ROW Parcel C Palm Avenue ROW Total - Market Value Conclusion $ 73,000 $ 42,500 $ 10,000 $125,500 Daniel A. Nelson St. Cert. Gen. REA #0000897 Peter D. Armfleld, MAI St. Cert. Gen. REA #0000524 52 QUALIFICATIONS OF THE APPRAISER DANIEL A. NELSON Bachelor of Business Administration in 1977 from Stetson University with a Degree in Accounting. Appraisal Courses Successfully Completed SREA Course 101 - Principals of Residential, 1978 SREA Course 201 - Principals of Income Property, 1979 Amedcan Institute of Real Estate Appraisers (AIREA) Course 1B-A- Capitalization Theory and Techn. Part A, 1985 Course 1B-B - Capitalization Theory and Techn. Part B, 1985 Standards of Professional Practice, 1986 Case Studies in Real Estate Valuation, 1987 Valuation Analysis and Report Writing, 1987 Standards of Professional Appraisal Practices, Part A&B, 1992 Complete Review Seminar, 1993 Professional Membership & Affiliations Registered Real Estate Broker-Salesperson, 1980, #BL 0312098 State-certified General Real Estate Appraiser, #0000897, 1991 Work~ StaffAppraiser, Armfield-Wagner Appraisal & Research, Inc., Vero Beach, Florida, 1982 to Present Staff Appraiser, Security Federal Savings and Loan, Vero Beach, Florida, 1977 to 1982 Types of Appraisals Completed Vacant Land Residential Condominiums Multiple Family Multiple Family Land Commercial Land Light Industrial Land Offices Retail Commercial Restaurants Shopping Centers Subdivisions Golf Courses Motels Light Industrial Warehouses Airplane Hangars Leased Property Mobile Home Parks Citrus Groves Engaged in the valuation of Real Estate in Indian River, Brevard, and St. Lucie Counties since October, 1977. 53 QUALIFICATIONS OF THE APPRAISER PETER D. ARMFIELD, MAI Education Graduate University of FIodda Master of Business Administration, 1972 Bachelor of Business Administration, 1970 Florida Resident Since 1953 Registered Real Estate Broker, Florida Professional Memberships Member Appraisal Institute (MAI) -Appraisal Institute Senior Residential Appraiser (SPA) - Appraisal Institute Realtor Member - Veto Beach Board of Realtors State-certified General Real Estate Appraiser, #0000524 Work Experience 1984 - Instructor of Appraisal Course for the Society of Real Estate Appraisers 1981 - President, Armfield-Wagner Appraisal & Research, Inc., Vero Beach, Florida 1979-1980 Staff Appraiser, Armfield, Sherman & Associates Real Estate Appraisers & Consultants Veto Beach, Florida 1979 - 1982 Instructor of Appraisal and Real Estate Courses, Indian River Community College, Ft. Pierce, Florida 1976 - 1978 Employed with John S. Sherman, Jr. as StaffAppraiser, Vero Beach, FJodda 1976- Real Estate Sales, Fayetteville, North Carolina Engaged in the valuation of Real Estate in Indian River and St. Lucie Counties since December, 1976. Qualified as an expert witness for real property valuation in the Circuit Courts of St. Lucie County and Indian River County, Florida. 54 QUALIFICATIONS OF THE APPRAISER Peter D. Armfield Page 2 R~eal Estate Appraisal Made for the Following: City Federal Savings & Loan of Palm Beach Savings of America Florida Federal Savings & Loan United Savings of Amedca Florida First National Bank of Vere Beach SunTrust Lomas & Nettleton Ford Motor Credit Merrill Lynch Relo. Gulf & Western Corp. City of Veto Beach Indian River County Gulf Oil Corporation Exxon Corporation St. Lucie County Equitable Relocation American Hospital Mgmt. Corp. Attorneys and individuals Chumh of Latter Day Saints Kentucky Life Insurance Co. American Petrofina Corp. Federal National Mortgage Assn. FL Dept. of Natural Resources Bank of Amedca Tropicana Corporation Residences Airplane Hangars Warehouses Commercial Insurable Value Offices Leased Property .................... -¥a ca nt-ga~d ............... C trus_Gro~ves Shopping Centers Residentia Improved Pasture Service Stations Landlocked Golf Courses Light Industrial Condominiums Mobile Home Parks Utility Easements Health & Rec. Clubs Casualty Loss Estimates Partial Interests Articles Subdivision Commercial Industrial Wetlands Social Clubs Motels Citrus Packing Houses Apartments (Including Low Income Housing Involving Section 8; Tax Credit) 'Unusual Appra~sa Ass gnments - Problems and Solutions", by Peter D. Armfield winning article in the 1981 manuscript competition sponsored by the Society of Real Estate Appraisers Foundation; published in the Real Estate Appraiser and Analyst- Spring, 1982. "Casualty Loss Valuation" by Peter D. Armfield, published in the Appraisal Journal of the American Institute of Real Estate Appraisers, October, 1982. "Computers in Appraising - Strategies for Success" by Peter D. Armfield and Stephen Armfield, winning article in the 1983 manuscript competition sponsored by the Society of Real Estate Appraisers Foundation.