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WA0501-SY050412 APPRAISAL BROKERAGE & CONSULTING CO. ill � f C. S. "Chuck" Mullinax, MAI P. 0. Box 794774 Dallas, Texas 75379 A REAL ESTATE APPRAISAL FOR A WATER LINE EASEMENT ACROSS THE SOUTHWEST CORNER OF 152 MEADOWCREEK ROAD COPPELL, DALLAS COUNTY, TEXAS PREPARED FOR KEN GRIFFIN, P. E. DIRECTOR OF ENGINEERING CITY OF COPPELL 255 PARKWAY BOULEVARD COPPELL, TEXAS 75019 AS OF APRIL 12, 2005 REPORT DATE APRIL 12, 2005 REAL ESTATE APPRAISALS . PHONE (972) 380 -0075 . FAX (972) 407 -1518 Cmullinax@aol.com APPRAISAL 4' BROKERAGE & CONSULTING CO. C. S. "Chuck" Mullinax, MAI P. 0. Box 794774 Dallas, Texas 75379 April 25, 2005 Mr. Ken Griffin, P. E. Director of Engineering City of Coppell 255 Parkway Boulevard Coppell, Texas 75019 Re: Water line easement located at 152 Meadowcreek Road, Coppell, Dallas County, Texas. (Lot 2, Block C, Northlake Woodlands 5 Section, Phase 2) [1 Taking] PARTS TO BE TAKEN Parcel # Use Area 1 Water line easement across southwest corner. 1,250 SF. OR 1 Water line easement across southwest corner. 600 SF. Dear Mr. Griffin; As requested, we have appraised the above referenced property. The purpose of the appraisal was to estimate the market value of the fee simple interest or the part to be taken, as they contribute to the value of the whole. The part to be taken does not have a stand -alone economic use. Market value is defined in the following report. The value estimate is subject to the various assumptions and limiting conditions set forth in the following report. This is a Complete Self- Contained Appraisal Report, in accordance with the Uniform Standards of Professional Appraisal Practice, Standard 2, Standards Rule 2 -2. Briefly described, the subject property "whole property" consists of a residential lot of approximately 14,489 SF improved with a residence of 2,075 SF of living area, a garage of 440 SF and a pool. {Lot 2, Block C, Northlake Woodlands 5 Section, Phase 2, City of Coppell, Dallas County, Texas. }The intended use of the appraisal is for the acquisition of above referenced parcel for the construction of a water line. A physical inspection of the residence was not available but the area of the easement area was clearly visible from the street and the construction area northwest of the property. According to tax records the property is owned by Mr. Daavid E. Wortman. Since an inspection of the premises was not available, the appraiser was not able to accurately prepare an REAL ESTATE APPRAISALS . PHONE (972) 380 -0075 . FAX (972) 407 -1518 Cmullinax(aaol. com Page 2 Ken Griffin, P.E. City of Coppell April 25, 2005 appraisal of the "whole" property. However, it is possible to value the impact of the easement on an allocated value of the "whole" property. We will use the 2004 assessed value of the property as a benchmark value for the "whole ". That value is $206,230. /2,00(ob( The accompanying report sets forth most of the pertinent data that was gathered and studied in making this appraisal. We have inspected the subject property from the road and the adjoining property, the neighborhood, and the comparables employed in arriving at the value estimates stated herein. Based on our investigation, the estimated market value of the fee simple interest in the subject property as a whole, as of April 12, 2005 the date of inspection, was: TWO HUNDRED SIX THOUSAND TWO HUNDRED THIRTY DOLLARS $206,230.00 (allocated) The estimated market value of the fee simple interest of the "taking" as of April 12, 2005 is: TWO THOUSAND THREE HUNDRED SEVENTY FIVE DOLLARS $2,375.00 {Scenario 1} or ONE THOUSAND ONE HUNDRED FORTY DOLLARS $1,140.00 {Scenario 2} Damages to the "remainder" are estimated at: $ 0 Total compensation for the "taking" is estimated at: TWO THOUSAND THREE HUNDRED SEVENTY FIVE DOLLARS $2,375.00 or ONE THOUSAND ONE HUNDRED FORTY DOLLARS $1,140.00 Thank you for allowing us to be of service to you in this regard. We appreciated the opportunity to be of assistance to you and hope that you will call upon us again for your valuation needs. If you have any questions, please do not hesitate to contact us. Resp—only, C. S. Mullinax, MAI Tx 1321048 L 040501 -11 A B REAL ESTATE APPRAISALS . PHONE (972) 380 -0075 . FAX (972) 407 -1518 Cmullinax(asbcglobal. net ASSUMPTIONS AND LIMITING CONDITIONS The following general and special assumptions are an integral part of this appraisal: 1. That the title to the individual property shall be good and merchantable and that title is in fee simple. 2. No responsibility is assumed for matters legal or chance, nor is any opinion rendered as to the title to the property which is assumed to be good. The possible existence of any liens or encumbrances have been disregarded, and the property is appraised as though free and clear under responsible ownership and management. 3. No survey of the "WHOLE" property was provided to the appraiser and no responsibility is assumed in connection with such matter as may be disclosed by a property survey. 4. The allocations of value between land and improvements are applied only under the current program of utilization, and must not be used in conjunction with any other appraisal and are invalid if so used. 5. All information contained in this report, if confidential, is submitted strictly for the sole use of the owner of the report. Possession of this report or any copy thereof does not carry with it the right of publication or use. The appraiser will not be required to give any testimony or attendance in court by reason of this appraisal without the prior approval of the appraiser. 6. All information and comments pertaining to this and other properties are the personal opinions of the appraiser formed after examination and study of the subject property. While it is believed the information estimates and analyses herein are correct, the appraiser does not guarantee them, and assumes no liability for errors in fact, analysis, or judgment. 7. Disclosure for the contents of this appraisal report is governed by the By- Laws and Regulations of the Appraisal Institute. 8. Neither all nor any part of the contents of this report (especially any conclusions of value, the identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal Institute or to the MAI or RM designation) shall be disseminated to the public through advertising media, public relations media, news, media, sales media, or any other public means of communication without the prior written consent and approval of the appraiser. 9. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them. III 10 No environmental impact studies were either requested or made in conjunction with this appraisal, and the appraiser hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based upon any subsequent environmental impact studies, research, or investigation. 11 The value is estimated under the assumption that there will be no international nor domestic political, economic, nor military actions that will seriously affect real estate values throughout the country. 12 Real estate values are influenced by a large number of external factors. The data contained herein is all of the data we consider necessary to support the value estimate. We have not knowingly withheld any pertinent facts, but we do not guarantee that we have knowledge of all factors which might influence the value of the Subject Property. 13 Due to rapid changes in the external factors, the Value Estimate is considered reliable only as of the date of the appraisal. 14 On all appraisals, subject to satisfactory completion, repairs, or alterations, the appraisal report and value conclusions are contingent upon completion of the improvements in a workmanlike manner and in a responsible period of time. 15 The Value Estimate assumes responsible ownership and competent management. 16 This appraisal was prepared by Appraisal, Brokerage & Consulting Company and consists of trade secrets and commercial or financial information which is privileged and confidential and exempted from disclosure under 5 U.S.C. 552 (b), (4). Please notify Chuck Mullinax of Appraisal, Brokerage & Consulting of any request of reproduction of this appraisal. 17 No detailed construction /as built plans, modification plans or current survey were available to the appraiser in preparing this report. Therefore, any assumptions made as to construction materials, quality and other items dependent upon those documents are subject to verification and not guaranteed by the appraiser. 18 No current title policy nor title search was available or prepared in compiling this report. Therefore, all assumptions and observations affected by such items are subject to verification and not guaranteed. 19 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 IV 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. Specific Assumptions and Conditions 20 It is specifically understood that we are considering the "fee simple" interest in the project on an "as is" basis. 22 Quantity estimates are believed to be accurate, but are not guaranteed. The appraiser was instructed not to contact the owner of the property therefore the estimates are based on plats, sketches and tax records. The description of the physical improvements on the "whole property" is based on tax records and observations from adjoining properties. 23 Based upon research completed by Appraisal, Brokerage and Consulting of Dallas, it is specifically assumed that the property does not have significant natural, cultural, recreational or scientific value. 24 The appraiser is not qualified to offer a professional opinion regarding possible environmental hazards. In the process of completing this assignment though, we have become quite familiar with the subject, surroundings /competing properties and the neighborhood. From an informal perspective, we assume that there are no external environmental influence or conditions that would negatively affect the subject, its marketability or future potential. 25. Acceptance and /or use of this report constitutes acceptance of these assumptions and conditions. V SUMMARY OF SALIENT FACTS Date of the Appraisal: April 30, 2004 Date of the Inspection: April 22, 2003 and subsequently from the road. Value Estimated: Market Value Property Rights Appraised: "Fee Simple" "As is ". Property Appraised: 152 Meadowcreek Road. A single family residence of 2,075 SF with garage, pool, fence and landscaping constitute the "whole" property. The "taking" will be a water line easement of 1,250 SF or 600 SF dependent upon needs for installation. Property is in the City of Coppell, Dallas County, Texas. Property Zoned: "SF -12" Single Family Residential, City of Coppell. Highest and Best Use: Residential. Property Status: Residence Estimates of Value Value Indication of Whole Property Sales Comparison Approach (allocated) $ 206,230 {assessed value} Income Approach N.A. Cost Approach N.A. Final Value Estimate of Whole Property: $206.230 Final Value Estimate of Part Taken: $ 2,375 {Scenario 1} Final Value Estimate of Part Taken: $ 1,140 {Scenario 2} Remainder Property Scenario 1 Before the Taking $203,855 After the Taking $203,855 Scenario 2 Before the Taking $205,180 After the Taking $205,180 Net Damages $ 0 Total Compensation $ 2,375 {Scenario 1} Total Compensation $ 1,140 {Scenario 2} VI TABLE OF CONTENTS Transmittal Letter I Assumptions and Limiting Conditions II Summary of Salient Facts VI Table of Contents VII Factual Data Ch. 1 Pg. 1 Definition of Market Value 2 Property Rights Appraised 2 History of Property 3 Dallas/ Ft. Worth Metroplex 5 Coppell City Data 20 Neighborhood and Trends 21 Subject Property Ch. 2 Pg.1 The Appraisal Process Ch. 3 Pg.1 Highest and Best Use - Zoning (Feasibility) 2 Market Approach Ch. 4 Pg 1 Conclusions 10 Certificate 15 Qualifications 16 VI' FACTUAL DATA PROPERTY APPRAISED Type of Property: Residence Location: 152 Meadowcreek Road, Coppell, Dallas County, Texas. Owner /Address /Phone: David E. Wortman 152 Meadowcreek Road Coppell, Tx 75019 LEGAL DESCRIPTION The subject property is legally described as being Lot 2, Block C, Northlake Woodlands 5 th Section, Phase 2, City of Coppell, Dallas County, Texas. A sketch describing the "taking" is included in the report. {That "taking" may be 10' wide or 20' wide dependent upon amount needed by City. EFFECTIVE DATE OF THE APPRAISAL The subject property was personally inspected by C. S. Mullinax on April 12, 2005. The property has been viewed from the road and adjoining property on that date. The effective date of the appraisal is the date of April 12, 2005. PURPOSE OF THE APPRAISAL The purpose of the appraisal is to estimate the market value of the fee simple interest of the subject property, "as is ", as of April 12, 2005. No personal property, business equipment, business goodwill, nor non - realty items are included in the value estimate. This is a Complete Self- contained Appraisal Report, in accordance with the Uniform Standards of Professional Appraisal Practice, Standard 2, Standards Rule 2 -2. INTENDED USE OF THE APPRAISAL The intended use of this appraisal is to assist the City of Coppell in the acquisition of the parcel needed for installing and maintaining the water line. Ch. 1 Pg. 1 DEFINITION OF MARKET VALUE The definition of Market Value used by condemning authorities in the state of Texas is: "The price which the property would bring when it is offered for sale by one who desires, but is not obliged to sell, and is bought by one who is under no necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within the reasonable future. 1 PROPERTY RIGHTS APPRAISED Property rights being appraised are for the "fee simple" interest in the subject property. A "fee simple" estate is absolute ownership unencumbered by any other interest or estate, subject only to limitations of eminent domain, escheat, police power and taxation. 2 Easement is defined as "An interest in real property that conveys use, but not ownership, of a portion of an owner's property. Access or right -of -way easements may be acquired by private parties or public utilities. Governments dedicate conservation, open space, and preservation easements." 3 HISTORY OF THE SUBJECT PROPERTY According to tax records, the subject property was conveyed to the current owners by deed on May 26, 1983. The property has been used as a residence since that time. This ownership history should not be relied upon for title matters, and the client should retain a specialist in this field, if desired. STATEMENT OF COMPETENCY The appraiser is competent to appraise the subject property. The appraiser has been appraising real property in the area since 1969. The general education and experience of the appraiser are outlined in his qualifications, which are contained in the Addendum of this report. 1. City of Austin v. Cannizzo, 267 S. W. wd 808 (Tex 1954) 2 Appraisal Institute, The Dictionary of Real Estate Appraisal, Third Edition, (Chicago, Illinios: Appraisal Institute, 1993) Page 110. 3.Appraisal Institute, The Dictionary of Real Estate Appraisal, Third Edition, (Chicago, Illinios: Appraisal Institute, 1993) Page 110. Ch. 1 Pg 2 EXTENT OF INVESTIGATION As part of this appraisal, the appraiser made a number of independent investigations and analyses. He relied on data retained in the office files, which are updated regularly. The investigations undertaken and the major data sources used are listed below. Area and Neighborhood Analysis Examined private and government supplied information for demographic data, land use policies and trends, growth forecasts, and employment data. The neighborhood was physically inspected over the past few years on numerous occasions in conjunction with numerous appraisals in the area. Site Description and Analysis Consulted with various departments of the City ofCoppell for information regarding zoning and building restrictions. The site was viewed from the street and adjoining property on April 12, 2005 and viewed at other times from the road. There was not a survey of the entire property available, therefore the shape and configuration was ascertained from deed records and tax records. PROPERTY LOCATION MAP E --- FI er Mound Leiale e Gra n,Ixe ..•• ` . ..... .. ........... . Lake. ..............:-',1c1.,•• . � 1 2 152 MEADOW REEK RD. Lake `view .t I1 : �° p9 ti, - 2409• , E Sa { Lake , , r , Carrollton , 121: Cappell Be Q r. . �. e Grapevine - _ _ f ad At ,,�` BUS 0 t ' I � ^' �„1 N� ,,,f *+. � A cis ,, .� -. 114 ' 26 North o J __. — .; •., , , 4 Lake 9—i . L } 1 114, (,. a ,� ��S Farmer _ 3 o - g grand 121 k , �� '�' � � itio,/O0( Pa rk �� -:... �' 441 . Ir ving 0.•.ro ° i-',, •t • , -� rY t ' ', . . • ,v,�U,�171m 3ti-?f.L'i_ cm c co. arr1.ni 11 : : -11 rluhl: re:rrx.1. `� if • -% Ch. 1 Pg. 3 Market Data Program Obtained data on vacant property transfers by use of the Roddy Report system. The characteristics of the data search follows: Land Sale Search Dallas County Date of Sale Range Land Area Range 1/01/03- 3/01/05 8,000- 16,000 SF Lots The appraiser researched MLS, Roddy Reports and data from individual developers /builders. In addition, sales from the appraiser's files were used. We contacted buyers, sellers and or brokers of transactions to verify transaction data and ensure that sales were arm's length. Ch. 1 Pg. 4 DALLAS /FORT WORTH METROPLEX DATA LOCATION The Dallas and Fort Worth Standard Metropolitan Statistical Areas were combined in 1983 forming an area referred to as the Dallas /Fort Worth Consolidated Metropolitan Statistical Area (C.M.S.A.) consisting of Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall and Tarrant Counties. This "Metroplex" is located in North Central Texas in the rolling hills that form the upper limit of the Gulf Coastal Plains approximately 250 miles inland from the Gulf of Mexico. This rapidly growing metropolitan complex is at the approximate crossroads between the four largest centers of population in North and Central America - New York on the east, Los Angeles on the west, Chicago on the north and Mexico City on the south. This nine - county area is approximately 30 miles south of the Texas /Oklahoma border; 183 miles west of the Texas /Arkansas and Texas /Louisiana border; 241 miles northwest of the City of Houston, Texas; 282 miles north of the City of San Antonio, Texas; and 647 miles northeast of the City of El Paso, Texas. This North Texas region is located in the south central portion of the United States and is typically referred to as the "Sunbelt" region of the United States. SOCIAL CHARACTERISTICS Social characteristics that influence the metroplex area in either a positive or negative way include population density, educational levels and quality of education available, age levels, employment types and rates as well as quality of medical, social, recreational and cultural services. Population Population growth is a key indicator of an area's success and economic viability. The C.M.S.A., as a whole, has grown very rapidly since 1960. The following chart reflects the growth of the CMSA since 1970. The Dallas /Fort Worth CMSA is comprised of the Dallas PMSA and the Fort Worth /Arlington PMSA including 12 counties. The Dallas PMSA includes Collin, Dallas, Denton, Ellis, Henderson, Hunt, Kaufman and Rockwall Counties. The Fort Worth /Arlington PMSA includes Hood, Johnson, Parker and Tarrant Counties. The following chart tracks the population of the two PMSAs and the CMSA exclusive of Henderson County which was recently added to the CMSA. Ch . 1 Pg . 5 Growth April April April ApriI '90 -'00 1970 1980 1990 2000 Dallas PMSA 1,576,012 1,983,982 2,646,584 3,519,176 31.50 Dallas County 1,327,321 1,558,340 1,852,810 2,218,859 19.76 Fort Worth — Arlington 801,612 990,852 1,361,034 1,702,625 25.10 PMSA Tarrant 715,587 860,880 1,170,103 1,446,219 23.60 DFW CMSA 2,377,614 2,974,834 4,007,618 5,221,801 29.30 1 Source: NCTCOG and U.S. Census Bureau. As of ApriI 2003, NTCOG reported that the CMSA had increased by 152,600 people since 2002 resulting in a population as of that date of 5,714,150. The strongest growth has taken place in Fort Worth, McKinney, Arlington, Dallas and Frisco. Education Both Dallas and Fort Worth have independent school districts as well as the respective suburb Cities within the CMSA. There are more than 113 private and parochial schools available for those desiring private education. There are more than 100 institutions of higher learning, including 23 colleges or universities offering four year degree plans, 17 offering two year associates degrees and more than 75 technical and vocational schools. There are 4 highly respected health related institutions within the Metroplex. Age Levels The stability of an area's labor force can be measured by the quantity of persons in the age bracket for part -time and full -time employment. In the Dallas /Fort Worth C.M.S.A. the largest segment of the population is between the ages of 15 and 59. The 1990 figures estimate the median age for the D /FW CMSA to be 32.1 years which is below the national median of 34.6 years of age. This availability of a large labor force is felt to have a positive effect on the economy of the Dallas /Fort Worth metroplex. Typically, the age group in the labor force, or those of working age, creates the largest demand for goods and services and has a stimulating effect on the area's economy. Housing needs, consumer products, financial services, medical services, etc., are supported a great deal by this (15 -59) age bracket. Employment The mild climate, large available labor force, low cost of living and quality city amenities have attracted a large number of major national companies to the Dallas /Fort Worth area. The Metroplex, and particularly Dallas, has been the leading financial center for many years in the Southwest. A very healthy economic base with wide diversity has developed over the years in spite of the absence of heavy manufacturing and heavy industry. "Clean industries ", Ch. 1 Pg. 6 or those of high technology (i.e., computer design, research, communications, medical research, etc.), have flourished in the metropolitan area. Industries that account for a large percentage of the labor force include durable goods, retail trade, finance, insurance, real estate, construction and manufacturing. Occupations that employ a large sector of the population include executive, administrative and managerial, technical, sales, administrative support, precision production, craft and repair operators. No one industry or occupational sector dominates the economy within the Metroplex, and for this reason, the area felt little impact during the 1980- 1982 and 1992 recession years compared with many other cities in and out of Texas. The Dallas /Fort Worth CMSA reported one of the most diverse economies in the nation in 2000 according to Texas Workforce Commission. Area employment by sector is as follows: wholesale /retail trade (24.6 %), services (30.2 %) manufacturing (13 %), government (11.4 %), finance /insurance /real estate (7 %), transportation /utilities (7.7 %), and construction (5.5 %). This continued diverse employment base is considered one of the Metroplex's greatest assets. Wage levels are good in the Cities of Dallas and Fort Worth and unionization is scarce - another major drawing point for relocating companies. However, the closing of Carswell Air Force Base by the Defense Department resulted in the loss of thousands of jobs in Fort Worth in the late eighties and other defense industries in the area were negatively impacted but the economy has rebounded from those set backs and growing at a healthy pace. The Dallas /Fort Worth CMSA job market started fast in 1999 and then cooled slightly with figures indicating job growth of approximately 89,300 jobs or an increase of 23.3% from 1995 through 1999. Job growth will be in the top 4 in the nation and may end second only to New York City. Job growth in the D /FW CMSA from 1999 to 2000 was 106,300. The decline in the National economy and the downturn in the high -tech industries has resulted in a slowdown in job creation. From 8/99 to 8/00, 75,100 jobs were created. From 11 /00 to 11/01 only 52,500 jobs were created and from 6/02 to 6/03 only 7,300 new jobs were created. The Texas Employment Commission provided the unemployment figures presented in the following chart. Ch. 1 Pg. 7 UNEMPLOYMENT STATISTICS YEAR D /FW TEXAS U.S. 6/94 5.95% 7.20% 6.20% 6/95 5.40 6.80 5.80 6/96 4.60 5.40 5.40 6/97 4.70 5.40 4.80 6/98 3.90 5.70 4.50 6/99 3.60 5.40 4.30 6/00 4.10 5.10 4.00 6/01 4.70 4.60 4.50 6/02 7.40 7.20 6.00 6/03 7.50 7.50 6.50 Major employers and the number of employees is reflected in the following chart. EMPLOYERS # of EMPLOYEES AMR 15,493 EDS 6,700 Lockheed Martin Corp. 15,000 Ft. Worth NAS 11,200 Nortel 9,000 Baylor Medical Ctr. 7,400 Texas Instruments 9,345 Compucom 5,300 U.T. @ Arlington 5,500 Parkland Mem. Hospital 7,406 University of North Texas 7,710 U.T. SW Medical Center 6,530 Source: North Texas Council of Governments. Recreational, Medical and Civic Amenities In addition to the relatively healthy business climate of the D /FW Metroplex, the amenities of the region provide an appealing quality of life for its residents. Within 100 miles of the Metroplex are 31 lakes with over 300,000 surface acres Ch. 1 Pg. 8 of water, over 50 golf courses and over 100 riding clubs for horseback riding. Amusement centers include the famous "Six Flags Over Texas" park that has over two million visitors annually and the State Fair of Texas which attracts an annual attendance of over three million visitors. For sports enthusiasts, the Metroplex includes professional sports with the Dallas Cowboys football team, the Texas Rangers baseball team, the Dallas Mavericks basketball team, the Dallas Stars hockey team and the Dallas Sidekicks soccer team, a national quality auto race track in Fort Worth and Lone Star Park, a quality horse racing track in Grand Prairie. University level sports of all types are provided by Southern Methodist University of Dallas, Texas Christian University of Fort Worth and University of North Texas in Denton. Championship golf is also played in the Metroplex with P.G.A., Colonial National and the Byron Nelson golf tournaments. The Dallas area has become known as a major medical treatment and research center. More than 12,065 beds can be found in some 52 general hospitals ranging from small private hospitals to giant medical centers. The largest of these is Baylor University Medical Center in Dallas. Other major Dallas hospitals include Parkland Memorial Hospital a teaching hospital for UT Southwestern Medical Center - Dallas, Presbyterian Hospital of Dallas, the Veterans Administration Medical Center, St. Paul Medical Center, Medical City Dallas /Humana Hospital and Methodist Hospital Medical Center. The three major Tarrant County hospitals are Harris, John Peter Smith and All Saints Hospital complimented by 18 smaller hospitals. A blend of varying cultural activities are available including opera, theatre, symphonies, museums and art centers. ECONOMIC CHARACTERISTICS Economic considerations involve the financial strengths or weaknesses of a given area. Economic forces interact with social, governmental and physical forces and each is a product of the other by close relationship. Economic forces which have an impact on real estate values in the Dallas /Fort Worth area include income levels, property value levels, development and construction, rent levels and vacancy rates for real property. Income Levels The median household effective buying income for Dallas CMSA was $46,458 for the year 2000. Approximately 48% of the households earn more than $50,000 /year while 25% earn less than $25,000. The balance earns between $25,000 and $49,999. Given the predominant age level of the population in the Metroplex, this income level has created an extremely healthy amount of retail trade and has created demand in the retail sector of the economy as a whole. Ch. 1 Pg. 9 The following chart reflects the concentrations of income levels in the metroplex. This, in turn, has positively benefitted all other real estate sectors - industrial, commercial and residential. The market has recovered from the overbuilding of the 1980s and new retail construction is healthy throughout the metroplex. Median Household Income in 1999 Wain FA3witha1l intern* 440,000 S41001 . a0,000 SW4001 • }211-000 • 5120.001 - 160" 5160.000 Oise Denton CdNn Atria, Tamed n Palo was T Kauu tnan Hoc, • exu gram Source North Texas Council of Governments & U. S. Census 2000 Property Value Levels Real estate values in the Metroplex have historically been on an upward trend in most areas. The high inflation years of the late 1970's and early 1980's proved to be banner years of real estate value escalation. This inflation, along with large demand in most sectors of the real estate market, created rapid property value escalation. In 1988, Dallas /Fort Worth was at the bottom of an economic slowdown. The market recovered slowly at first but at this point in time, all sectors of real estate have recovered with office and retail being the last segments to recover. Multifamily occupancies and values have recovered and are experiencing extensive new construction. Retail power centers have come on strong and overall retail and office values have recovered resulting in new construction in both areas. Retail sales for the CMSA for the year 2000 were $80.9 billion. Development and Construction, Rent Levels and Vacancy In about 1981 or 1982, the nation as a whole showed very slow economic growth reflecting a recession that the country experienced for an approximate two -year time period. This recession did not affect the Dallas /Fort Worth area as drastically as it did the majority of the country. In spite of this national recession, the Ch. 1 Pg. 10 Dallas /Fort Worth economy had maintained moderate growth in specific sectors of the economy. In other sectors, the Dallas /Fort Worth area even managed to prosper during that time of national economic woes. Dallas and Fort Worth combined for a total of $295,956,000 in permits issued in 1990. The chart on the following page summarizes building permit activity for the past 22 years by segment and location. NEW BUILDING PERMITS BY PMSA 22 Year Averages are Indexed at 100 I Dallas Single Family Multi - Family Retail Office Industrial Permits Index Permits Index $,000 Index $,000 Index $,000 Index Mar -01 2,369 180 998 92 Previous 12 Months 25,560 162 7,081 54 2000 25,483 161 6,395 49 1999 22,974 145 12,716 98 _ 1998 22,619 151 17,136 128 1997 19,110 128 14,113 106 1996 18,211 122 10,249 77 1995 15,735 105 10,640 80 $300,318 94 $120,160 33 $162,650 173 1994 15,743 105 9,937 74 $241,687 75 $81,216 22 $48,269 51 1993 15,436 103 4,389 33 $178,926 56 $71,936 20 $47,958 51 1992 14,664 98 1,838 14 $132,016 41 $97,633 27 $6,798 7 1991 11,164 75 3,085 23 $111,813 35 $54,396 15 $12,187 13 1990 9,918 66 4,901 37 $110,369 34 $458,977 125 $12,830 14 1989 9,067 61 538 4 $93,389 29 $152,448 42 $22,868 24 1988 9,015 60 1,467 11 $153,538 48 $92,710 25 $78,857 84 1987 12,476 83 2,492 19 $199,089 62 $110,616 30 $128,471 136 1986 17,425 117 17,281 129 $359,241 112 $238,193 65 $130,733 139 1985 20,048 134 27,807 208 $785,124 245 $953,442 261 $97,622 104 1984 20,339 136 30,998 232 $830,514 259 $937,883 256 $150,628 160 1983 20,806 139 51,725 387 $494,936 155 $431,118 118 $134,462 143 1982 12,160 81 25,221 189 $441,698 138 $724,113 198 $97,278 103 1981 9,254 62 10,670 80 $343,792 107 $1,052,412 288 $131,345 139 1980 11,356 76 10,396 78 $366,090 114 $333,417 91 $152,109 161 1979 14,380 96 12,140 91 $303,193 95 $310,252 85 $187,354 199 1979 -2000 Avg. 15,790 100 13,006 100 $320,337 100 $365,937 100 $94,260 100 Ch. 1 Pg. 11 Fort Worth - Arlington Single Family Multi - Family Retail Office Industrial Permits Index Permits Index $,000 Index $,000 Index_ $,000 Index Mar -01 1,169 186 25 6 Previous 12 Months 11,115 147 2,297 43 2000 10,584 140 2,216 41 1999 9,605 127 2,393 45 1998 9,339 128 5,385 95 1997 7,107 98 3,683 65 1996 7,268 100 3,280 58 1995 6,463 89 2,727 48 $177,516 180 $63,254 73 $34,827 86 1994 6,507 89 1,456 26 $116,899 118 $45,406 53 $90,676 223 1993 5,988 82 504 9 $71,464 72 $31,829 37 $17,858 44 1992 5,347 73 24 0 $99,255 100 $21,042 24 $28,435 70 1991 4,311 59 904 16 $63,974 65 $29,577 34 $37,405 92 1990 4,734 65 328 6 $59,346 60 $17,517 20 $104,471 257 1989 4,967 68 109 2 $66,204 67 $74,567 87 $8,301 20 1988 5,019 69 220 4 $50,817 51 $12,090 14 $54,886 135 1987 6,447 88 784 14 $106,573 108 $92,951 108 $32,652 80 1986 9,214 126 4,003 71 $135,955 138 $107,755 125 $26,589 65 1985 11,411 157 14,342 254 $202,406 205 $135,529 157 $66,493 163 1984 11,911 163 19,807 351 $152,146 154 $125,814 146 $36,219 89 1983 12,455 171 25,956 459 $94,340 96 $148,715 173 $29,555 73 1982 7,078 97 10,549 187 $61,225 62 $81,783 95 $20,065 49 1981 4,845 66 4,762 84 $55,792 56 $125,098 145 $44,707 110 1980 6,558 90 5,536 98 $60,957 62 $282,875 329 $33,795 83 1979 8,756 120 8,618 153 $104,139 105 $67,436 78 $25,297 62 1979 -2000 Avg. 7,542 100 5,345 100 $98,765 100 $86,073 100 $40,719 100 There is typically always an imbalance in supply and demand in the real estate market due to the lag time of construction and the accuracy of measuring population growth, etc. The Metroplex has worked its way out of the slump. The following charts reflect data on the various markets in the metroplex. They are based primarily on data provided from D /FW Realsmart a product of Roddy Information Services. The following trends and forecasts are based upon that data. The single family residential market as of 12/02 is extremely healthy. In spite of record new construction, strong demand combined with moderate mortgage rates, inventories of new homes and lots are extremely low and very healthy. Ch. 1 Pg. 12 Residential NCTCOG Regional Housing Completions 40.000 35.000 20 NC. 25.000 20.000 ■ ■ ■ ■ 15.000 0 91 1 1 1 1 1 1 1 1 19G5 199.3 I' 19;41 Mc 200.) 2001 2002 ■ snglr I wily IRAlWO1 milk The above chart tracks single family and multifamily housing completions from 1995 through 2002. Single family completions are running at approximately 38,000 units per year in the metroplex and single family lot inventories are at approximately two years supply based on that absorption. The decline in apartment construction follows the trend in occupancies over the past three years. Occupancy for apartments has declined from 93.6% in 2000 to 91.6% in 2001 and 89.1% at the end of 2002. At this time, rents for all apartments average $0.85/SF while new units are averaging $1.03 /SF per month. Ch. 1 Pg. 13 Retail Centers OCCUPANCY RATES By Center Type 94% a) 92% 9O% c 88% O. 86% ca � p 84% 82% All Regional Neighborhood Strip Center Type • 1998 0 1999 • 2000 C 2000 C 2002 Source: D /FW Realsmart a product of Roddy Information Services Average rental rates at year end 2002 for all types of retail was $14.48/SF with neighborhood centers averaging $14.95/SF and strip centers averaging $12.44/SF. Occupancy rates for all centers at year end was 89.1% as reflected in the chart above. Ch. 1 Pg. 14 Industrial OCCUPANCY RATES By Building Age Category 100% m 95% �. 90% co EE a sea All 1990 -02 19 80 -89 1970-79 1969- Building Age Category ■ 1998 €l 1999 $ 2000 C7 2001 W 2002 Sour c e . D /FW Realsmart a product of Roddy Information Services The industrial marketplace ended the year with over 402 million square feet and average occupancy in the range of 85% with the typical office warehouse market at 86% and flex space at 83 %. Typical warehouse buildings ended 2002 with average rents of $3.75/SF while flex space averaged $6.10 /SF. Ch. 1 Pg. 15 Office Buildings OCCUPANCY RATES By Class Per Year c) 90% a 85% 75% I 4 ,, 65 °l0 All A B C Building Class • 1998 ❑ 1999 • 2000 0 2001 ¢' 2002 Source: D /FW Realsmart a product of Roddy Information Services Office building occupancies are the darkest area of the commercial real estate industry in the Metroplex. The 2002 year end figures show average occupancy at 77 %. It varies from sector to sector but it has been hurt by the rapid decline of the telecom industry on top of a market which was not strong to start with. The CBD of Dallas is in the 74% range and has not recovered from the real estate decline of the eighties. Average rental rates have fallen from $21.00 /SF average in 1998 to $19.55/SF at the end of 2002. The single tenant market for the Metroplex in 1999 remained strong absorbing approximately 4,153,000 square feet of new buildings. Ch. 1 Pg. 16 GOVERNMENTAL CHARACTERISTICS The continued growth and orderly development within a city is as much a part of the governing policies as of any other economic and social consideration. Without local, state and federal government support and cooperation, growth can be stagnated. The city and county governing bodies that make up the D /FW C.M.S.A. on a whole have been pro business and pro growth. With the exception of a few communities in this area, development is encouraged but in an orderly and well - planned manner. Local building codes and zoning requirements are strict but serve to create a quality end product without creating unjust obstacles for developers. The City of Dallas provides excellent city services with six full- service police stations and 13 storefront stations. There are 2,804 police officers. The City has fifty -four fire stations and 1,576 firemen. Each incorporated city within the C.M.S.A. also has sufficient police and fire protection and is governed in a similar manner as Dallas with a council /manager form of government. City taxes vary depending on the individual community; however, no taxes are so excessive as to have a detrimental effect on future growth. The tax burden is relatively insignificant compared with the quality of services provided. The C.M.S.A., and the City of Dallas as a whole, is felt to positively benefit from the local governments. PHYSICAL ATTRIBUTES The Dallas /Fort Worth Metroplex possesses many quality physical features and characteristics. The general terrain in this region is typified as rolling hills at elevations from about 450' to 550' above sea level. Vegetation is varied depending on the area. Grassland prairies, wooded acreage, agricultural land, etc., can be found within the area. Over 300,000 surface acres of lakes are located within a 100 -mile radius of the Metroplex. The climate is considered one of the most positive physical attributes of the area. The Metroplex lies within the humid subtropical belt that extends northward from the Gulf of Mexico. A climatological summary of the C.M.S.A. provided by the National Climatic Data Center and the National Oceanic and Atmospheric Administration follows: Daily Mean Temperature Annual Average 65.0 °F Hottest Month (July) 86.3 °F Coldest Month (January) 44.0 °F Record Temperatures Ch. 1 Pg. 17 Highest (June 1980) 113.0 °F Lowest (February 1899) -8 °F Days with Freezing Weather 41 Precipitation Annual Total 33.7 Inches Snow and Ice 3 2 Inches Days with 0.01 Inch or More of Rain 78 Relative Humidity January, 12:00 P.M. 61% July, 12:00 P.M 49% The Metroplex generally enjoys clear skies and moderate to tropical weather throughout the year. The 1990 Environmental Protection Agency rated Dallas as having poor air quality on five days and Tarrant County for four days. They rated both as having moderate pollution 75 to 80 days a year and the remainder as "good ". Due to its location the Metroplex has a much higher rating due to airborne natural pollutants such as pollen. Therefore, people with allergies are more subject to problems. Access and transportation are also a major amenity in the area. The Metroplex is located at the hub of seven interstate highway systems and fourteen state and federal highway systems. Access within the Metroplex is provided by quality thoroughfares that are generally maintained in an above average condition. Other means of transportation are provided by six railroads, four off -line, two short -line carriers and DART. DART is Dallas Area Rapid Transit system which includes bus and train services. The Fort Worth Transportation Authority has a bus system which serves Fort Worth and three suburban cities. The Dallas /Fort Worth International Airport has had a major impact on the economy of the Metroplex. The Dallas /Fort Worth International Airport began operations in January of 1974 and immediately made the Metroplex a major air transportation center. This massive facility of some 18,076 acres is approximately nine miles long and eight miles wide at its extremities. It served 60,687,122 passengers in 2000 making it the 5 th busiest airport in the world and third in the nation. Projections are that it will serve more than 104 million passengers per year by 2010. The airport generates approximately $11.2 billion annually for the Metroplex and provides approximately 211,000 area jobs. The Airport plans to spend over $2.6 billion to expand it's facilities in the near immediate future. In addition to the International Airport, Alliance Airport was completed in 1989 at a cost of $31 million by the City of Fort Worth in north Tarrant County on 4,800 acres. The airport provides linkage between air, rail and highway transportation and is designed specifically for air freight and aircraft maintenance. Federal Express has constructed a $300 million cargo sorting hub Ch. 1 Pg. 18 at Alliance which employs 600 people. This facility is capable of sorting 21,000 packages per hour. American Airlines completed a $481 million maintenance facility at Alliance in 1992 and Burlington Northern Santa Fe Railway, constructed a $100 million intermodal freight handling facility in 1994 at this airport. Dallas also utilizes Love Field Airport. Currently, Southwest Airlines makes daily arrivals and departures at an astounding rate. Love Field had over 7.078 million passengers through it in 2000 and is ranked as the 46th busiest airport in the nation. Fort Worth is served by Meacham Field, the city -owned facility that has primarily served the private sector. In the late eighties, the City of Dallas implemented a mass transit program known as Dallas Area Rapid Transit (DART). Service originally was bus transportation while light rail lines were being constructed. The first of those lines are now complete affording Tight rail from the south end of the county, Irving, Park Lane /Central Expressway and Garland areas to the city center. Plans are to provide state of the art commuter transportation facilities by the year 2010 throughout the Dallas Metro Area. The widening of U.S. 75 was completed in early 2000 and has greatly improved traffic flow through that corridor running from Plano to the Central Business District of Dallas. The George Bush Tollway is now complete across the north side of Dallas from Garland on the east to I.H. 35 on the west and construction continues. It will eventually provide rapid access around the north side of the City. Utilities are adequately provided by most cities in the Metroplex. Major utility suppliers include TXU Gas Company, Southwestern Bell Telephone Company, General Telephone of the Southwest and TXU Electric Company. Individual cities provide water and sanitary sewer services. The City of Dallas has water rights to 318.4 million gallons per day in reservoirs and contracts for 10 million gallons per day from the North Texas Municipal Water District. Future water needs have been well planned and several reservoirs are planned or under construction at present in the North Texas region. The CMSA possesses 63,000+ hotel rooms. There were 3,791 conventions in the area in 2000 with more than 4,200,000 delegates. Tourists to the area in 2000 exceeded 20,900,000 people. The Dallas Convention Center with 2,000,000 SF is the largest in Texas. Educational facilities are numerous in the area and curriculum of any type can be readily found. Over forty -eight colleges, community colleges and universities exist within a 100 -mile radius of the Metroplex. They had a 2000 enrollment in excess of 247,000 and 30,000 graduates. In addition, over seventy -five vocational schools are located in the Dallas /Fort Worth area. There are 114 independent school districts in the Metroplex serving 970,000 students with public education through high school. Ch. 1 Pg. 19 Recreational facilities are provided in ample quantity throughout the Metroplex. The City of Dallas alone has over 47,469 acres of parks and open space including land and water, five 18 -hole golf courses, 223 tennis courts and 106 swimming pools. The physical amenities of the Metroplex further add to the economic strength of the area in providing a quality of life that cannot be experienced in many major urban centers. CONCLUSION The preceding data has been presented to establish the present and future outlook for the Metroplex in the categories of social, economic, governmental and physical characteristics and how these factors may affect real estate values. Through this analysis, it is concluded that the Metroplex is one of the nation's most dynamic and growth- oriented urban centers. When compared to 333 other metropolitan areas in the United States for cost of living, jobs, crime, health care and environment, transportation, education, arts, recreation, and climate, to determine a quality of life standard, Dallas ranked #40 or in the top 12% for desirability. The social and economic stability of the area offers excellent job and business opportunities as can be evidenced by the high per capita income. Quality transportation facilities, housing, cultural opportunities, recreational facilities and local government support have created orderly growth. Abundant shopping facilities, schools, religious facilities, hospitals, civic organizations and city services have also contributed greatly to this growth. The economy and growth have rebounded nicely after the overbuilding and glut of the 1980's. The CMSA was previously projected to reach a population of 5,000,000 in the year 2010. It has already exceeded that projection. The strongest growth areas will continue to be in the areas between Dallas and Fort Worth and north of D /FW International Airport as well as Collin, Denton and Tarrant Counties. Time and continued economic growth has cured most of the vacancy problems of the area and the Metroplex will continue to stand out as one of the most dynamic and desirable regions of the country for investment or residency. (12/03) CITY OF COPPELL The City of Coppell is a suburb of Dallas located in the northwest corner of Dallas County with a small portion in Denton County. It occupies approximately 12 square miles north of Irving and south of Lewisville. It is bounded on the west by Grapevine and on the east by Carrollton. It is strategically located approximately 2 miles north of DFW International Airport. It is governed by a council- manager form of government with an elected mayor. Because of its location it has grown to a population of 38,481 as of May 2004. This is an increase of 128% since Ch. 1 Pg. 20 character. It does have some office and retail along the bordering streets and a small amount of industrial along Belt Line but the interior of the neighborhood is single family residential. The subject neighborhood lies in census tracts 0141.19- 0141.20. The median household income in the immediate neighborhood is in the $120,000- $160,000 range but other portions of the neighborhood are lower with some as low as $40,000 to $80,000. Access The perimeter streets afford good access to the neighborhood . Most of the interior streets are classified as feeder streets but the area is bisected north to south by Moore and Mockingbird. It is also bisected east to west by Bethel School Road. Access through the area is currently good. MacArthur Boulevard is a major artery containing a four lane divided boulevard . Denton Tap and Belt Line are similar arteries. Sandy Lake is a variable width right of way with varying number of lanes. For a residential neighborhood, access to and from the area is considered excellent. Neighborhood Development The boundaries of the neighborhood were selected to define an area of homogeneous development. This area is approximately 95% developed at this time. It was originally developed with older homes on acreage but it has evolved over the past ten years into more traditional subdivisions containing homes of higher values. Recent subdivisions in Coppell offer most homes in the $400,000 to $1,000,000 range. The tract immediately north of the subject is currently being developed with a sixteen lot subdivision. Those lots will range in size from 9,800 SF to 15,000 SF and have values allocated to them ranging from $165,000 to $185,000. They will not be offered to the public or other builders. Street homes will build custom and speculative homes on all lots. The area is rolling terrain with Grapevine Creek and its tributaries running through the southwest corner of the neighborhood. There is some land undeveloped along the south side of the neighborhood along the north side of Belt Line Road. The area is bisected by the Cottonbelt railway and the creek area. The natural beauty of the area coupled with its location and access have made this a very desirable location for development. In addition to the access to DFW International Airport enjoyed by the City of Coppell, The subject neighborhood is within 6 miles of Vista Ridge Mall in Lewisville and , the area is within 1 miles of Vista Ridge Mall in Lewisville and three miles of Grapevine Mills Mall in Grapevine. The following chart provides relationships of the neighborhood amenities and driving times to each. Ch. 1 Pg. 22 Amenity Location Traveling Time (Mins.) Schools: Elementary Within Neighborhood 0 Middle /Junior Within Neighborhood 0 Senior High Adjacent Neighborhood 5 Shopping: Neighborhood Adjacent Neighborhood 5 Community Adjacent Neighborhood 5 Regional Adjacent communities; Vista Ridge (Lewisville), 10 -20 Grapevine Mills (Grapevine) Churches Within Neighborhood 5 Parks Within Neighborhood 4 Theaters Adjacent Neighborhood 10 Restaurants Subject & Adjacent Neighborhood 2 Major Highways Adjacent Neighborhoods 5 Airports DFW International 15 & Love Field. 45 Employment Centers Adjacent neighborhoods 15 Conclusion The economy of this neighborhood is so intertwined with the D /FW Metroplex, that it's future growth is dependent upon the metroplex as a whole. The economic reports for the metroplex have constantly exceeded national economic statistics. It is currently slower than in the past due to the National economic slump and the war with Iraq. Residential construction has continued strong during the slump due to low mortgage rates and availability of good financing. The most recent home sales statistics do show a slow down which may impact residential sales in the near term but they should rebound strongly over the short term. Ch. 1 Pg. 23 NEIGHBORHOOD MAP 2001 AERIAL _ >4 .. - a , .$ ` � it— -; ry'l, 7" .. ''':: —..."`" ' ''. ''''''.. .„,-.' 0 ''''-': ,*- 4 '''' ,r7.-4,..- r , i '''.•' ' 4 t 4- "i !'-`?:..": ,-.4 --7,,, , ,, 7 " . '-i; ' ' i , !, 1 1 ' ' r - °•*- - i'-ir.:7-1-'4- , ' 'i' * .,' i -0 .:-' !: %.! '„ .;.' - 1,F.,, , :, 7 . z .� , , li „ ' "',,t,':--4 a t om' t , �>. Wi” " r `TM " .., ' ' ��n ,, ` ''..41'- .' M , x+ • �. • • Ch. 1 Pg. 24 SUBJECT PROPERTY As mentioned previously, the subject "whole" property consists of152 Meadowcreek Road, Coppell, Texas. The tract is improved with a single story single family residence containing 2,075 SF constructed in 1982. The property is currently occupied as a residence. The "taking" is described in detail after the Tax Data Section. Site Analysis Size and Shape The subject parcel is irregular in shape because of the curvature of the street and the drainage ditch along the west side. The reader's attention is directed to the exhibits to understand the shape. It contains approximately 14,500 SF based on the appraisers calculations from the scale. Roadway Frontage and Status According to the plat, the subject has frontage on the north side of Medowcreek Road of 105.85'. It is 100' wide across the rear. It has a depth of 122.37 along the east side and a depth of 171.51 along the west side. The site is approximately 100' north of Maywood Cilrcle and 222' west of Oakcrest Street. Meadowcreek Road is a 50' right of way containing a two lane asphalt road with open drainage ditches on either side. Drives are accessed over culverts supporting concrete drives. Topography/ Drainage The site is above street grade and rises gradually toward the north but it also slopes gradually toward the west toward the drainage ditch. Vegetation The majority of the tract is fenced and cross fenced to facilitate use for horses and other animals. The pastures appear to be in native grasses. The residence is heavily landscaped and planted with trees and flowers. Easements and Encroachments There were no obvious signs of easements on the property which interfere with the use of the property as a residential use. The appraiser assumes that there is a drainage easement along the west side of the property containing a portion of the drainage ditch. There are no encroachments noted which would interfere with any legal use of the property. Flood Hazard Status FEMA Map # 480170 -0010 E dated 4/15/94, shows the subject in Zone "X" . Zone X is not within the 100 year flood zone. The flood zone map is provided below. Ch. 2 Pg. 1 BE TAR . S!C . 1 if ; �. 1 w 490 v. ZONE AE .4 1 i i 4;891 c CO Zi r ZONE 4 x 484 a • "° i ce, ' at X ZONE AE r ,,-- / B LTLIM fiOAt FLOOD PLAIN MAP April 15, 1994 Zoning The subject parcel is zoned for "SF -12" Single Family Residential by the City of Coppell which is a single family lot of 12,000 SF or more. The subject property constructed in 1982 and is in compliance with the zoning. A more detailed discussion of the zoning will be provided in the "Highest & Best Use Section" of this report. Soil Conditions A soil survey was not available for the site. Knowledge of the area indicates that this area is a combination of Blackland and Grand Prairie soils. Ch. 2 Pg. 2 Utility Status /Availability The subject site is served by an 8" water line on the north side of Meadowcreek Road and an 8" sewer line in the street stubs out at the drainage ditch between the subject lot and the lot to the west fronting Maywood Circle. Deed Restrictions The appraiser is not aware of any deed restrictions which impact the property negatively. The appraiser is not qualified to make recommendations relative to title and recommends that the client obtain a title policy to clarify this issue. Adjacent Development The subject is surrounded by residences on the east, west, and south sides. The tract of land due north of the subject is being developed with a new small subdivision which is the reason for the proposed water line easement. The lots in that development will have allocated lot values ranging from $165,000 to $185,000. Homes around the subject range in assessed values from $188,000 to $374,000. Those values are heavily impacted by the size and nature of the respective lots. Some of those lots are creek lots as large as 42,000 SF. Improvements Analysis The subject improvements include a single story brick veneer residence of 2,075 SF with a double car garage of 440 SF. The rear yard has a privacy fence, a patio, and pool. The home is a typical ranch style home constructed in 1982. It has a composition roof and appears to be constructed on a slab foundation. We were instructed not to contact the owner, therefore we cannot comment on the interior condition of the property. We assume it to be in typical condition for a residence of this style and vintage. A brief description of the improvements and building components is as follows based on our visual inspection from the street combined with public data available. Construction Summary Exterior Walks and Curbs All walkways and concrete flatwork on the premises is assumed to be 4" thick 3000 psi concrete with welded wire mesh reinforcement. Foundation and Floor Slabs The foundation is assumed to be a steel reinforced concrete slab with perimeter and crossing beams. Exterior Walls The exterior walls are brick veneer. Structural Support The residence is traditional 2 x 4 wood framing with heavier headers. Roof Framing The improvement features a hip roof with plywood deck supporting a roof of composition shingles. Insulation Ch. 2 Pg. 3 All ceilings and exterior walls are assumed to be fully insulated to meet or exceed minimum energy code requirements. Typical 4" walls will support an R -13 insulation while the ceiling areas would have batt and blown insulation ranging from R -19 to R -30. The windows are single pane aluminum cased windows. Windows The windows appear to be single pane aluminum cased windows. Interior Walls Typical interior walls would be of 1/2" sheetrock taped, bedded and textured. Most houses of this vintage would have a paneled den and ceramic tile floors and wainscotes in the baths. Ceiling Ceilings would be 5/8" sheetrock, taped bedded and textured. Wall Coverings Unknown. Floor Coverings Unknown. Baths Unknown. HVAC The heating and air - conditioning system is a package central system. Plumbing Plumbing is assumed to be to City code for the City of Coppell. Electrical Electrical service is assumed to be compliant with local building codes. Interior Lighting Unknown. Landscaping Extensive landscaping around the residence and pool area. Physical Condition The subject property is assumed to reflect average wear for a residence of this age. History of the Subject Property The subject was constructed in 1982 and conveyed to the current owners in May 26, 1983. They have occupied the property since that date. No other conveyances of the property are noted on the records. Taxes The subject is currently assessed for tax purposes at $206,230 which includes $37,000 for Ch. 2 Pg. 4 lot value. On that basis and the current rates the subject would be liable for taxes of $5,485.52. Description of Parcel Taken Water Line Easement. {Detailed drawings were not available. Engineering was not sure whether they would need a 10' or 20' wide easement. Legal: Either 600 SF or 1,250 SF out of the southwest corner of Lot 2, Block C, Northlake Woodlands 5 th Section Phase 2, City of Coppell, Dallas County, Texas. Type of Taking: Easement for installation of a water line. Highest & Best Use: Residential. Size: Either 600 SF or 1,250 SF. Shape: Rectangular shaped with an oblique angle on the north end. Roadway Frontage and Status: The parcel fronts Meadowcreek Road 10' or 20'. Accessibility /Visibility: The "taking" is a strip of land perpendicular to Meadowcreek Road running on a diagonal to the west property line. Topography /Drainage: The topography of the "taking" appears to be in the low area of the drainage ditch which crosses this section of the yard. Flood Hazard Status: Based upon Federal Emergency Management Agency flood hazard map presented previously, the subject is in Zone X and therefore not in the 100 year flood plain. Zoning: The subject site is affected by an "SF 12" zoning and is in compliance with that zoning. Soil Conditions: The site appears to have soil consistent with the "whole" property. Utility Status /Availability: Same as "Whole" property. Easements /Reservations /Encroachments: None noted. Deed Restrictions: None noted. Adjacent Development: Subject residence "whole" and a residence to the west of the subject "whole" property. Ch. 2 Pg. 5 Apr 01 2005 3:15PM HP LASERJET 3200 p.2 ;4 *a . NA „, C . . . Z 1 / r (111) E W I .... ....,,,.. 1 A arrow - i sk, co . . . , . § , uil i i III pli ::., ; i 11 (1) - 0 IMO , IIMM 0 CD . 4 111\1 § . I Citi 5 5 . . 41116' ,.., I 1 NO 15 , I 8 Alk 0 3 1 CL 0. 0 14 „,... 8 an § - 1 Apr 01 2005 3:15PM HP LASERJET 3200 p.4 il e.) .1 ( (9 . 9 kse.a.. pilook N 041110 A "414,04 ` �J�tv #� YY(l , er31' " is- E 200" 1!!Q' ,• e "GvhN►` *4 r` rtes eve " -- # ~' . rat ,„".'r r � 2 f'; 0,* .. N + • � " r•i0 * lll • / r 1 / 1. _ t r 0 �" ROAD Q - t I i _ -.".. P q rt C r t r `' I t ,�l t f A ■ j 111 ». / I i ! 1 t I t " 0'0 , f q l 1 / 1 1 '• 1 1 * 1 / f / Ai r r 1 l r q 1 r L , r 1 r 1 • ., . v E •w PHOTOGRAPHS k 1 r =wr � ': i ' . .... ' .0 , ;,. I r oo..4„,.,..„,....,...„,„.,_ ....,.... hs-- k , ' r , , 'tom . ; , . y K a 4qM SUBJECT RESIDENCE FRONTING ON MEADOWCREEK ROAD '. r ' y r " 4 ' • • ., t4 _.. f .: 11) ' •. Er n 'rkt4;! . .!- ,, - -... ,, ,r.i.. --, -), - W y' POOL AND REAR OF RESIDENCE Ch. 2 Pg. 8 PHOTOGRAPHS 4 /r Y.' � .. vat ; t o yrh r. j e • t •.. F WEST SIDE OF LOT SHOWING AREA OF "TAKING" "#-"0 F g w u EAST SIDE OF SUBJECT SHOWING GARAGE & SIDE YARD Ch. 2 Pg. 9 PHOTOGRAPHS IF a . STREET VIEW LOOKING EAST FROM SUBJECT x .. a - , i , 4. !WS" 1 .... ,, PROPERTY AND STREET LOOKING WEST Ch. 2 Pg. 10 PHOTOGRAPHS ''' ! �St r . .x e n'?. ,gyp �y ._ . . r, . fly °�� .,.1"" --4, m,d , k. RESIDENCE ACROSS MEADOWCREEK FROM SUBJECT ., . q SUBDIVISION DUE NORTH OF SUBJECT • Ch. 2 Pg. 11 THE APPRAISAL PROCESS There are three techniques which may be utilized, if applicable, for the valuation of real property. In each instance, the experience of the appraiser coupled with objective judgment plays a major role in arriving at conclusions for indicated value. These approaches include the Income Approach, Market Approach and the Cost Approach. Acceptable methodologies defined in REAL ESTATE TERMINOLOGY as sponsored by the American Institute of Real Estate Appraisers (revised edition 1981). The "quality" and "quantity" of available data and the applicability of each approach is very important when comparing the various indications of value and reconciling into a final estimate. The "Income Approach to Value" is that procedure in appraisal analysis which converts anticipated benefits (dollar income /value or amenities) to be derived from the ownership of property into a value estimate. It allows for a comparison of income streams between the subject property and competing marketplace properties. Net income is capitalized at a rate which is commensurate with the rates reflected in the marketplace by investors for similar properties. Completion of the process suggests an income estimate of value. The "Market Approach" is traditionally an appraisal procedure for estimating value based units of comparison derived from sales of similar properties in the marketplace. Those units of comparison are then applied to the subject property in order to derive a range in value and, in instance, a conclusive or final estimate for the subject property. The reliability of this technique is dependent upon the availability of comparable sales data, the appraiser's ability to accurately verify all particulars behind those sales, the degree of comparability or extent of adjustment necessary and the absence of non - typical conditions that might affect sale prices. The "Cost Approach" is that technique in appraisal analysis which is based upon the proposition that the informed purchaser would pay no more than the cost of reproducing a substitute property, with the same utility as the subject. The principle of substitution suggesting that reproduction cost should limit the "upper side" of value. In this approach to value, the appraiser is charged with establishing market value for the site, determining reproduction cost for the improvements and the very subjective estimation of depreciation or obsolescence inherent within the property. Market value for the land parcel, when combined with depreciated reproduction cost for the improvements, suggests an estimate of value per the Cost Approach methodology. The final step in the appraisal process is "Reconciliation" or correlation of the value indicators. In this final analysis the appraiser weighs the relative applicability of the three approaches used, examines the value range and places major emphasis on the approach that appears to produce the most reliable solution to the specific appraisal Ch. 3 Pg. 1 problem. Required value penalties, if applicable, will be addressed in this section of the report. Final comments and a projected marketing term for the property will also be discussed. The subject parcel is an eminent domain parcel to be taken for installation and maintenance of a water line across the southwest corner of the subject lawn. The "Bundle of Rights" theory assumes that all property has several categories of rights including subsurface rights, surface rights, air rights and that those rights can be further disected by legal instruments such as leases or conveyance of mineral rights. The subject of this appraisal is a single family residence on a 14,500 SF residential city lot. The only applicable approach to value in this case is the Market Approach to value. HIGHEST AND BEST USE - ZONING (FEASIBILITY) Highest and Best Use is defined as: 1. The reasonable and probable use that supports the highest present value of vacant land or improved property, as defined, as of the date of the appraisal. 2. The reasonably probable and legal use of land or sites as though vacant, found to be physically possible, appropriately supported, financially feasible, and that results in the highest present land value. 3. The most profitable use. Implied in these definitions is that the determination of highest and best use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to individual property owners. Hence, in certain situations the highest and best use of land may be for parks, greenbelts, preservations, conservation, wildlife habitats, and the like. (The Dictionary of Real Estate Appraisal; American Institute of Real Estate Appraisers, Third Printing 1987; Page 152.) Physically Possible Intended or current use for the "whole" properties must be physically possible. The subject property is currently occupied as a residence. It has frontage on the north side of Meadowcreek Road. The original improvements were constructed in 1982 and it has functioned under it's current use since then. It is therefore deemed to be physically possible under the definition. Legally Permissible Legally permissible uses pertain to those that are allowed under existing zoning Ch. 3 Pg. 2 constraints and deed restrictions. Except for a legally non - conforming property, the first step in determining what is legally permissible is to analyze private restrictions, zoning, building codes, historic district controls and environmental regulations. The City of Coppell has adopted a comprehensive zoning ordinance. The subject parcel is affected by a "SF 12" Zoning Classification. This zoning classification is established "to provide for the development of single family residences on lots of 12,000 SF or more. The restrictions imposed by the classification include: ZONING CLASSIFICATION "SF 12" City of Coppell Restrictions Subject Minimum Lot Area 12,000 SF Compliant Minimum Front Yard 30' Minimum Side Yard 10% of width but not less than 8' Minimum Rear Yard 20' Maximum Building Height 35' or 2.5 stones. Single story. Lot Coverage 35% Compliant Minimum Width 85' Minimum Depth 110' Minimum Parking 2 car enclosed behind building line Other Requirements 80% Masonry. The Subject is determined to be in legal compliance. Conformity The principle of conformity holds, in part, that conformity in use is a highly desirable adjunct of real property since it creates and /or maintains maximum value and it is maximum value which affords an owner maximum returns, the heart of the theory of highest and best use. The subject adjoins other residentially zoned land which has been improved with residences on the east, west and south of the subject. The development to the north is also residential and based on lot value allocations, will be improved with home s of higher value. At the time of construction, the existing improvements were very much in keeping with typical residential construction in the area. The subject remains in conformity with residential development in the area. Because of neighborhood lots which back to the creek, there are some very large lots in the subdivision and those lots have much greater values resulting in wide disparities in values in the neighborhood. Feasibility Feasible uses for the property are those which would provide the highest net return Ch. 3 Pg. 3 to the land. A financially feasible use of a site indicates an income stream or return equal to or greater than the amount needed to satisfy operating expenses, financial obligations and capital amortization. The subject has been occupied as a residence since construction. Single family residences do not lend themselves to analysis as income properties very well. Gross Rent Multipliers can be extracted from the market and applied to projected rentals but this approach is crude at best. The residence functions well for it's intended purpose and is considered feasible. Conclusions The appraiser's analysis indicates that the Highest and Best Use of the subject property at the time of the appraisal is continued use of the "whole" property as a single family residence. Highest and Best Use- Remainder Before the Taking The remainder before the taking has the same highest and best use as the whole: commercial use. The taking does not change the highest and best use of the remainder before the taking. Highest and Best Use- Remainder After the Taking After the taking, the remainder will still be residential use after the taking. The easement and underground water line should have no effect on the continued use of the property. INCOME APPROACH TO VALUE An Income Approach to Value is not applicable for the subject site and will not be applied. MARKET APPROACH TO VALUE The Market Approach to Value is normally based on data provided from recent sales of similar properties that are comparable to the property being appraised. Because the appraiser didn't have access to the interior of the property and the opinions of value are related to land area and have no extended effect on the improvements, we have allocated or assigned a value to the whole property consistent with the assessed value of the property by the local tax assessor's office. We will estimate the value of the lot based on market information available and use that data to determine the value of the "whole" lot and the "taking" to solve this appraisal problem. The reliability of this value indication will depend on the similarities and /or differences between the subject property and the comparable properties. The rationale for the market comparison approach lies in the principle of substitution; an informed investor would never pay more for a property than he would have to pay for a similar property or substitute. Ch. 3 Pg. 4 To the extent that there are differences in size, location, between the subject property and recent sales of comparable properties, adjustments must be made for such differences. In developing the Market Approach to Value, units of comparison for comparable properties in the market area are analyzed and utilized in the development of value for the subject property. The basic units of comparison used on lots or acreage to compare one property with another include the "Price Per Acre" and the "Price Per Square Foot ". The subject appraisal problem is an eminent domain appraisal for acquisition of an easement for construction and maintenance of a water line. Ch. 3 Pg. 5 MARKET APPROACH Site Valuation The Market Approach to Value is based on data provided from recent sales of similar properties that are comparable to the property being appraised. An indication of value can then be obtained by comparing the subject property to these sales. The reliability of this value indication will depend on the similarities and /or differences between the subject property and the comparable properties. The rationale for the market comparison approach lies in the principle of substitution; an informed investor would never pay more for a property than he would have to pay for a similar property or substitute. To the extent that there are differences in size, location and exposure between the subject property and recent sales of comparable properties, adjustments must be made for such differences. In developing the Market Approach to Value, units of comparison for comparable properties in the market area are analyzed and utilized in the development of value for the subject property. The basic units of comparison used by investors in the marketplace to compare one property with another include the "Price per Square Foot" and the "Sale Price Per Front Foot ". Single family residential Tots sold in the marketplace have become a thing of the past in much of the market and especially in Coppell. In stead of a developer preparing a subdivision and selling the Tots to builders and individuals, the subdivisions are developed by the individual builders for their own exclusive use for speculative and custom homes. In checking the market, there were only two Tots offered for sale in the City of Coppell and they did not sell. They are offered on Nash Street and are still on the market. Normally the appraiser would just broaden the search for sales but this change in subdivision development is not prevalent throughout the market and the appraiser noted a wide disparity between lot values in Coppell and other suburbs. Builders do however, allocate values to their respective lots based upon their size and attributes {location, creek or park exposure, etc. }. Because of the lack of market activity, those allocated values are as close to being sales data as exists in the City of Coppell. The appraiser inspected existing subdivisions and obtained the allocated values from builders to use as market comparables in valuing the subject lot and the "taking" for the water line easement. Ch. 4 Pg. 2 =I & wuei ,aw N6 _, n111111ti1 w age a 11141, a im %Iti €4, .cur Ur 41110MILA =s!. o giiMir, aam,... n m Itg=i4m Presented on the following chart is a summary values allocated to various lots by the builders. They are the best indication of value available in this market. Street Homes and Holmes Builders are the two dominant builders who have also developed subdivisions in Coppell. The appraiser omitted creek lots from the following list because the subject is not considered a creek lot. A summary of the respective data is as follows: St. Andrews Manor Lot Size S.F. Description Price Price /SF Lot 1, Blk A 12,460 Entrance $120,000 $9.63 Lot 2, 12,170 Entrance 135,000 11.09 Lot 3 12,428 Entrance 140,000 11.26 Lot 4 14,810 Trees 155,000 10.47 Lot 5 14,626 Tree 140,000 9.57 Lot 6 13,880 Tree 140,000 10.09 Lot 7 13,027 2 Trees 155,000 11.90 Lot 8 12,969 Trees 160,000 12.34 Lot 9 13,653 Trees 165,000 12.09 Lot 10 13,773 Trees 165,000 11.98 Lot 11 13,773 Trees 165,000 12.01 Lot 12 13,917 Trees 165,000 11.86 Lot 13 20,419 Trees 205,000 10.04 Lot 18 13,433 Corner 150,000 11.17 Lot 19 12,945 Corner 150,000 11.59 Lot 20 13,335 Entrance 140,000 10.50 Lot 21 12,239 Entrance 140,000 11.44 Lot 22 12,170 Entrance 135,000 11.09 Lot 23 12,460 Entrance 120,000 9.63 Ch. 4 Pg. 1 , i NI - - id MI a N r = u4_ N UII "NSW NI N d MINIM Nd NAN INN XM 4NMI HI k A !did 44 N.NNId1d 1111 .add UIN d IINktNNINd dd MIN, NINNONMEN Deforest Court Lot Size S.F. Description Price Price /SF Lot 4, Blk A 12,000 Interior Lot $175,000 $15.81 Lot 8, Blk A 12,002 Culdesac $178,000 $12.76 Windsor Estates Lot Size S.F. Description Price Price /SF Lot 2, Blk A 13,835 Corner lot $175,000 $12.65 Lot 4 11,065 Interior lot 175,000 15.81 Lot 17 13,674 Corner lot 179,000 13.09 Lot 3, Blk B 13,354 Corner lot 178,000 13.33 McArthur & Samuel Lot Size S.F. Description Price Price /SF Smallest Lot 9,800 Interior Lot $150,000 $15.31 Largest Lot 18,000 Interior Lot $185,000 $10.28 Hidden VaIIIey Lot Size S.F. Description Price Price /SF Smallest Lot 9,800 Interior Lot $165,000 $16.84 Largest Lot 15,000 Interior Lot $185,000 $12.33 Ch. 4 Pg. 2 SUBDIVISION MAP s Bartonville 407 l k, 121 3 . - 0 - Double --X z e Bus ": � i I R Ie Oak L' _ N 121 --- Hebron '1OLL.uC°� e wl 11 . 0.1 : , I 289 Flower �+M^.IMP 1171 ST ANDREWS MACARTHUR & SAMUEL 5 ' HIDDEN VALLEY �� 1 � 1 553 im ..... .... .............. .. ........ ti� ... 40 Park. • • Add I s°n ' 1 WINDSOR ESTATES + . DEFOREST CT. 1 South! 1709;rn 8 ,i SUBJECT - A L A '''1,1 „. Worth International � 3 Coiie iie � 1 I , irp oft ° � .w 4 11 A -._o ,'Icy 11 _,,-.41. and (4 11 : :u0l , !lei :. II Il..ihI: It: trt.I 77 Discussion and Adjustments The subject is considered to be a 14,500 SF lot with improvements constructed in 1982. Homes in the immediate neighborhood were constructed during the same period. They range in value from a low of $200,000 to $400,000. The primary variation in values is related to lot size. Some of the lots are creek lots with as much as 42,000 SF. The subject is very compatible with surrounding homes in it's neighborhood. Homes in the new subdivisions cited range in price from $400,000 to $1,000,000 +. Typical land to improved property values in this area are from 25% to 30 %. As the homes get progressively larger, the lot ratio declines. All of the new subdivisions have superior improvements including concrete streets with full curb and gutter, gates or identification at the entries and modern styled impressive homes. Although the subject neighborhood is well located geographically, we will allocate adjustments in this category to a location adjustment. The least expensive of the lots cited fall in the range of $10.00 /SF. In our opinion, the location adjustment should be in the range of 50 -60 %. This would result in lot value estimates for the subject in the range of Ch. 4 Pg. 3 , ... 1011,1111it ,ow tOMOMINIIIIA M Notki MNfl L wUlY"' $4- 5.00 /SF. If we then look at the land to improved property ratio discussed above in relation to the assigned value of the improvement at $206,230, the 25 -30% ratio results in a value range of $51,558 to $61,869. Using the $4- 5.00/SF range, we end up with a lot value range from $58,000 to $72,500. The assessed value by the tax assessor's office is $37,000. Considering the activity and lot pricing in the area, we consider the assessed value to be low. Conclusions Considering the improvements in the area and the data available, we estimate the lot if vacant would have a value of $55,000. {$3.79/SF} "Market" Value Estimate "Whole Lot ( $3.79/SF) $55,000 Value Calculations for Parcel and Interests Taken. In this assignment, we are dealing with the appraisal of a parcel to be taken for a water line resulting in a water line easement. Parcel Purpose Rights To Be Acquired Size 1 Water line Easement 1,250 SF OR 1 Water line Easement 600 SF Parcel This parcel which we previously described contains either 1,250 SF or 600 SF dependent upon the needs determined by the engineering staff. The water line will be installed below the surface. The estimate of value above for the "whole lot" is on a fee simple basis. Historically, water lines, gas lines and sewer lines installed below the surface with the surface restored by the condemnor command a value estimate of 50% of the fee. Hence the value for the "taking" would be on a basis of $1.90 /SF for the area taken. The value estimate for the two different options would then be as follows: 1,250 SF X $1.90 /SF = $2,375 OR 600 SF X $1.90 /SF = $1,140 Ch. 4 Pg. 4 Composite Value of Parts Taken Parcel # Use Size Estimate Value 1 Water line Easement 1,250 SF $2,375 OR 1 Water Line Easement 600 SF $1,140 Valuation of the Remainder Before the Taking The value of the remainder before the taking is the value of the whole Tess the value of the parts taken. The Value allocated to the whole was $206,230 rounded. The value of the parts taken totaled $2,375 or $1,140. The indicated value of the remainder before the taking is: Scenario #1 Value of the Whole $ 206,230 Less: Value of Parcels in Taking ($ 2,375) Indicated Value of Remainder Before the Taking $203,855 Scenario #2 Value of the Whole $ 206,230 Less: Value of Parcels in Taking ($ 1,140) Indicated Value of Remainder Before the Taking $205,180 Valuation of Remainder After the Taking After the taking, the remainder is considered as if the taking has occurred and the proposed improvements are in place and the lawn and landscaping has been restored. In the appraiser's opinion, the Value of the Remainder After the Taking will be the same as the Remainder Before the Taking. In our opinion, there would be no further damages to the property. Final Reconciliation and Value Conclusion Only the Sales Comparison Approach was applicable to the valuation of the subject property. It indicated the following values for the whole property, the parts to be taken, and the remainder, before and after the taking. Ch. 4 Pg. 5 ..t.t . ue .41w di,4 .MOMA = " '0144 : -. 1!111 II l-,ASM r4;NMI �n " thXAMSCaif*ka - 'uUW,bl Scenario # 1 Whole Property (allocated) $206,320 Parcel No. 1 $ 2,375 Remainder Before the Taking $ 203,855 Remainder After the Taking $ 203,855 Damages due to non contributory improvements $ 0 Scenario #2 Value of the Whole $ 206,230 Parcel No. 2 ( $ 1,140) Remainder Before the Taking $205,180 Remainder After the Taking $205,180 Damages due to non contributory Improvements $ 0 The Market Approach weighted with Abstraction is considered the best approach to value. It reflects the behavior of buyers and sellers in the acquisition /sale of land similar to the subject property. The data used was good and conclusive. The value conclusions were reasonable and consistent with observations in other markets. Based on the strength of this approach, it is our opinion that the subject property, as a whole, for the parts to be taken and for the remainder, before and after the taking, had an estimated market value, as of the date of the appraisal as shown above. Exposure /Marketing Period The definition of Market Value states that one of the criteria of the "most probable price" is that "a reasonable time is allowed for exposure in the open market." The exposure time is a function of price, time and use, not an isolated estimate of time alone. Exposure time is always presumed to precede the effective date of the appraisal. At the appraised value, it is our opinion that the estimated exposure period for the subject property was twelve months. Marketing time differs from exposure time, which is always presumed to precede the effective date of the appraisal. A reasonable marketing period is an estimate of the amount of time it might take to sell a property interest in real estate at the estimated market value during the period immediately after the effective date of the appraisal. At the appraised value, it is our opinion that the estimated marketing period for the subject property is twelve months. This time frame assumes competent marketing and that if third party financing is not available, that seller financing will be provided at market rates. This is Ch. 4 Pg. 6 consistent with the definition of market value, which states, "Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto" (italic added). Ch. 4 Pg. 7 CERTIFICATE The undersigned do hereby certify that, except as otherwise noted in the appraisal report: - The statements of fact contained in this report are true and correct. - The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial and unbiased professional analyses, opinions and conclusions. - I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. - I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. - my engagement in this assignment was not contingent upon developing or reporting predetermined results. - my compensation for completing this assignment is not contingent upon 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 use of the appraisal. - my analyses, opinions and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. - I have made a personal inspection of the property that is the subject of this report. - as of the date of this report, I, C. S. Mullinax, have not completed the requirements under the voluntary continuing education program of the Appraisal Institute. - no one provided significant real property appraisal ista - to the person signing this certification. /�c> C. S. Mullinax, MAI Tx 1321048 G (6/30/05) Ch. 4 Pg. 8 QUALIFICATIONS C. S. MULLINAX, MAI EDUCATION B.B.A. Degree, Midwestern University, 1964 Southern Methodist University, Post Graduate Courses; Real Estate Fundamentals, Appraisal I and Commercial Construction Appraisal Institute Courses I, II, VI and VII, Valuation of a Going Concern (1981), Standards of Professional Practice (1982) Litigation (1982), Valuation of Historic Properties (1984), Subdivision Analysis (1985), Blue Prints & Commercial Construction (1986), Real Estate Trends (1986), FHLBB R41C (1987), Market Analysis (1987), Federal Income Tax & Real Estate (1988),Case Studies (1988), SPP Update (1989), Reviewing Appraisals (1990), Standards - (1990); The Appraiser's Legal Liabilities (1992); Condemnation (1992); ADA (1992), Litigation (1992),Appraisers Liability (1992),Rates, Ratios, Reasonableness (1992), Fair Lending (1994), ASB Departure /Limited Reports (1994), Effects of EMF's and Power Lines on R.E. (1994), Standards A & B (1997), Standards C (1999), Residential Forms (1999), Standards A (2003), Texas State Certified - General Real Estate Appraiser (thru 6/30/05) Certificate No. 1321048G EXPERIENCE Commercial Loan Officer and Appraiser for Southern Trust and Mortgage Company Vice President /Real Estate Development, First Texas Financial Corporation Real Estate Analyst and Commercial Appraiser, B. F. Saul Real Estate Investment Trust Commercial Loan Officer and Appraiser, Southwestern Life Insurance Company Review Appraiser and Loan Analyst, National Life Insurance Co., Montpelier, Vermont Part -time Instructor: North Texas State (Appraisal of Real Estate) Richland Junior College (Residential Appraising) PROFESSIONAL AFFILIATIONS Appraisal Institute North Texas Chapter of AIREA ( Former Director) International Right of Way Association EXPERIENCE Includes wide diversity from single - family appraisals to condominiums, high -rise offices, hotels and foreign time - sharing condominiums CURRENT STATUS Owner of APPRAISAL, BROKERAGE & CONSULTING CO. (Founded July 1976) REAL ESTATE APPRAISALS . PHONE (972)380 -0075 . FAX (972) 407 -1518 cmullinax ©sbccilobal.net Ch. 4 Pg. 10 Sr. Andew's CDflOR Coppell, Texas Address Description Lot & Block Square Footage Lot Price St. Andrews Entrance Lot Lot 1, Blk A 12,460 $120,000 St. Andrews 2n Entrance Lot Lot 2, BIk A 12,170 $135,000 St. Andrews 3' Entrance Lot Lot 3, BIk A 12,428 $140,000 St. Andrews Trees Lot 4, Bik A 14,810 $155,000 St. Andrews Tree Lot 5, Blk A 14,626 $140,000 St. Andrews Tree Lot 6, Bik A 13,880 $140,000 St. Andrews Two Trees Lot 7, Blk A 13,027 $155,000 St. Andrews Trees Lot 8, Bik A 12,969 $160,000 St. Andrews Trees Lot 9, Blk A 13,653 $165,000 St. Andrews Trees Lot 10, Blk A 13,773 $165,000 St. Andrews Trees Lot 11, Bik A 13,773 $165,000 St. Andrews Trees Lot 12, Blk A 13,917 $165,000 St. Andrews Trees Lot 13, Blk A 20,419 $205,000 St. Andrews Trees, Creek Lot 14, Blk A 23,662 $215,000 St. Andrews Trees, Creek Lot 15, BIk A 29,026 $255,000 St. Andrews Trees, Creek Lot 16, Blk A 19,810 $205,000 St. Andrews Trees, Creek Lot 17, BIk A 20,414 $185,000 St. Andrews Corner Lot Lot 18, Bik A 13,433 $150,000 St. Andrews Comer Lot Lot 19, Bik A 12,945 $150,000 St. Andrews 4 Entrance Lot 20, BIk A 13,335 $140,000 St. Andrews 3 Entrance Lot 21, BIk A 12,239 $140,000 St. Andrews 2n Entrance Lot 22, BIk A 12,170 $135 St. Andrews Entrance Lot Lot 23, Bik A 12,460 $120,000 Notice: Lot Prices and availability are subject to an change at time and without notice. 9 any me Please contact Sammy Brumit for more information. Mobile 469 - 446 -0966 or sbrumit@theholmesbuiiders.com r 9 i` a i , , S Ath irr 4r ,'"1.ae / Ni i 7 And cws .. ' I. s a � II b f, ` !ii , - , „,„ CD Ar)oR ,, :. , .. � it .. i '. ,, CoppdLtc,cs .11,,,i ,:.' 1 , . , ., ... 1 ,i 1 1 e I i'.-, ,. ilk 1 00 1 a_.--4:1 r. �' I _ - - -- ,— - ,! GoR oven 20 ycaRS hotmes BuitdeRs lit I J i a has bRouphr top quACity tu�cuRy Cluing V . a r ; I :jM to the noRth mctROpte)c ma►Rhet! ,_.,,., ; ' � a 1 Saint AndRews Wa►noR 1 I ; 4 cONtiNUes the LRADitioN of Scnncudch i.anc e s lio i ' , ° , h0LMES EXCELLENCE I w-t, IN DesigN AND CRAFZSMANShip 7 1 1 I II .. th ; AS e 3R0 DeCADe $C eNS! j S ; I y ► ° 1 Saint AndRews CTJanoR 1 3 i' k i S 0& g _ 7 - - - -- _ x :� , L homes lRom • • „.' .,. - . . : ` the $600's to 1 C7Jittio + .; '':' ` �► i ; a '''';',1 1_ocatcd 2 blocks east or C1DacARtfiuiR n gt � � 1 , on acr-oacst in Coppat ` <i . I ' 1 , ° additional Inroranation contact: ` "" .. ' y 4 Sammy BRUmir ar 972- 393 -6886 OR ; e a I I i — la , y. ,. 21 621 -3637 I fit � N z / !J ' \ N 0 1 fi x4 E-moA-sb u r ®, h bolmesboliders.com 4 1 : It' lid a ;: i r. a 1 1 14 st 1 ' ''' ''',' FA , .,,, ,,,,, - ,,..,., ,,...,...4, ssCC 1 4 vf 1 4�f L___,,..._, ,,-;, HolmesBuilders .. The Holmes Builders DEFOREST COURT - COPPELL, TEXAS LOT PRICES Address Block Lot Price 611 Deforest A 4 175,000.00 627 Deforest A 8 178,000.00 FOR INFORMATION CALL: SAMMY BR UMIT Mobile: 214 - 621 -3637 *PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE. 11/23/04 2629 Dickerson Parkway Suite 110 Carrollton Texas 75007 972 - 242 -1770 Fax 972 - 242 -2931 www. theholmesbu it dens. com ii) 1 i i \„?. 1 0 I p...., I. -- N T' i ,'I ri ,(Th - r II _ii4„, A, ,i r 1!ililiiiii i 11 itilliii There are only 17, 12,000 sqi building sites in Di7OQfJT CON2T in Coppclll Qality Coppell Schools, convenient location to everything • the metro -plex has to offer and a 10 minute drive to DM-Airport Homes of uncommon quality, brought to you by The Holmes Builders! . You midi rent to hurry! . r ' ': 1 4 ' r" . ' - ' per ... . ... .. r iltri Al l li m p)] Deforest Court 1 r. k 777 r-' -- - - 1 \ 1 I - - - -. o 1 ` .. I - 1 _ mod I I 1 ' I jN x I -1 L 1 I 1 I y . tl113! ___1 L - - -- 1 - -- cm-- Ift (47,1 � � 4%4! For additional i • - information ■;� please call: alliailtait ■ , ii The Holmes Builders Lo o .. 972 2421770 ext /CVO The Holmes Builders WINDSOR ESTATES - COPPELL, TEXAS LOT PRICES Address Block Lot Price 605 St James A 2 175,000.00 613 St James A 4 175,000.00 917 Deforest A 17 179,000.00 620 St James B 3 178,000.00 FOR INFORMATION CALL: SAMMY BR UMIT Mobile: 214-621-3637 *PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE W inOm. Enna Lo . 2629 Dickerson Parkway Suite 110 Carrollton Texas 75007 972-242-1770 Fax 972- 242 -2931 www. theholmesbuildcrs. com W JtaL +1 4nother fine development of quart? homes sure to enhance our commu already solid reputation for quality schools and executive l ux u ry h Come and enjol Windsor Estates in Coppell, texas, 'its a wonderful way ofrfe" Holmes Builders has been building special Common Area Green q e[t homes for special 40 proposed eople for nearly 20 18472 sf .� asm�sa .+ i 44forr a '7Zlj ` ears now and in . 13,09 0 E 11 - if 1 • sf , �3 + `1 ° I 14,503 sf a 12 .' ■ oppell we have 23,673 sf s g ' 4 .84 , ' ; ■ �ti shown our It !� . 8a.,6' 24,620 3 omrnittment to our 10,673 i ��► ` � � � .66 s G wean .` Q , 4 conlnZunit 135.00' s" W 3 13,240 sf ‘ 1 Y 10,980sf -oils 13,354 4 i a • it's citizens b y 1 0 pt t 135.x' �� ® A I co 'nuing to build 13,187 sf 1 4 1e , I 10,800 $: t ' 9 S a o / 14 only the finest 2110 - .. i 13.32 . W 70,839 sf 11,065 sf i '� 1 �a • ; omes in the very • 4 13, • - • . t developments. i 44 ,c? v im " p i ® �' ' 1 0¢ 13,373 sf ,' 13,953'sf 63.89' 930 , � 4 r I 13,835 a For additional 1 e. 2 ♦ ,� I li • • information about rr - 13,288 , �, •,� , l 3sf � ` this and other �iBM '� ,� eve . pments featuring 17 , �' ' N ° ``,4" �. . t olmes Homes � � 13 , 6 74 xi `i 1 U ` v , `� Lam__.._ -, ✓ P ,• 134.23 - -- .. P1; se call Sammyy Brumit •-------- - - - - -- �/Z —bz/ 3i 37w� "Phis site plan is for marketin - �•�• "� -� — '� R purposes only. Where accuracy, is critical, please refer to official plat @ ext.240.