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Res 2022-12-1342 Purchase of Right of Way at 510 Hackberry Dr
CITY OF ANNA, TEXAS RESOLUTION NO. 26 - A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF AGREEMENT AND ASSOCIATED DOCUMENTS, IN A FORM APPROVED BY THE CITY ATTORNEY, FOR THE PURCHASE OF A PORTION OF REAL PROPERTY LOCATED AT 510 HACKBERRY DRIVE, ANNA, TEXAS 75409; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The City of Anna Capital Improvement Plan includes proposed improvements to Hackberry Drive from State Highway 5 to Bamborough Drive; and, WHEREAS, the City of Anna is seeking to purchase a portion of real property located at 510 Hackberry Drive for use as public right-of-way; and, WHEREAS, the property owner has agreed to the terms as shown in the attached Memorandum of Agreement; and, WHEREAS, the City has determined it to be in the public interest for the City to purchase a portion of the property for public road improvements; and, WHEREAS, the City Attorney shall review and approve all agreements and contracts for the purchase of the property prior to execution by the City Manager; and, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: Section 1. Recitals Incorporated The recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Authorization of Agreement and Funding. That the City Council of the City of Anna hereby authorizes the City Manager to execute a Memorandum of Agreement and associated documents for the purchase of property at 510 Hackberry Drive in the amount of $97,327. That funding for the purchase shall come from Roadway Impact Fees. PASSED AND APPROVED by the City Council of the City of Anna, Texas on this day of December 2022. ATTEST: APPROVED: City Secretary, Carrie Land * l:� yor, Nate Pike 1913 Exhibit A rMioxarmuni of arxMIEvr / Fm Tizzy Ward po W 92 Amm, T1X 75409 RE; Hachberry Dr Street Improvements Dear Property Qww, The negotiations to secure Right of Way from you have progressed to the point that you have indicated a wdlingoess to sign the City of Amw's Social Wan", Dad for light of Way in retom far payment as agreed to in this l The rights being pmhased have been a Whmedby the right of way.agmt, Mathew Hutto. Camapeosation will be paid in the amount of $9, 7,327.00 Qftety-Seven Thousand rnw Hundred TwentrSes en Dollars and Zero Cents) by the City of Anna, as fair and just sation for dedication of the Right of Way dedication with Temporazy Construction easement descnimd and depicted in B&Nt A of the Specialty Wazranty Deed for Right of Way. The payment of the amount him stated and the terms listed oa the lines provided constitute thee only promises, consideration and conditions of his purchase; and no other promises, considerations or conditions have been aigmfied oriz#a 1) Payaa<nt in the amaunt of $97J27.00 (Mu"% ren Thouuand Three Hundred Twenty Seven Dollars and Zero Cents) to Grantor by Cnantee. as fair and hM easation for the Right of WU dedicatiaa� 2) go= will exernte the attached special Y61ma Deed for Rift of Wad* 3) Cnantar will provide an executed copy of a W-9_ Ramig for Tag= Identification Number Iq d Certification. Suety, ailtdL-Nxwm Specialty Land Services. LLC 903-7144018 mdthee @spedaltylandcom Page 1 of: ACCEPTED: Landorner Pape! of: A-mrny & Terry 6111ard 41251202 EXHIBIT "A" FIELD NOTE DESCRIPTION PERMANENT RIGHT-OF-WAY CITY OF ANNA, TEXAS Parke! Na Collin Cour►ry Being a 0.08 acne tract of land for permanent right-of-way in the Henry Brantley Survey, Abstract, No. 071. City of Anna, Collin County, Texas, and being part of a called 0.30 acre tract of land. conveyed Jimmy and Terry Gillard, by deed nxorded in Volume 168Z Page 693, Deed Records of Collin Coty Texas (D.K.C.CT.), said right-of-way being more particularly described as follows: BEGINNING at a point for corner: said point being on the southeast property comer of said 0.50 acre Gill" tract and also being on the southwest property corner ofa called 0.4395 acretract of land, conveyed to James. and Lori Rivera, by deed recorded in. Instrument Number 20080801000936340, said point bears N 84013'25" W. a distance of 451.659 feet, from a 112-inch iron rod found on the northwest property corner of Lot 1, Block 1,ULAJ Addition, an addition to the City of Anna byplat recorded in Instrument Number 20080328010001220,PRCCT, said point also bears N 82025'42" W, a distance of 389.58 feet from a 112-inch iron rod found on the northeast property corner of a 0.36 acre Lot 5 of the Stater Hollow Phase I Addition to the City. of Anna, conveyed to Ely Bennett, by deed recorded in Instrument Number 20100713000715550, PRCCT; THENCE, N 881332" W, along the south property line of said 0.50 acre Gillard tract, a distance of 75.03 feet to a point for comer, said -point being on the southwest property corner of said 0.50 acre Gillard tract, and _also being on the cast right-of-way line of Hackbcrry Drive, (called 80-foot R.O.W.) as shown on the 70.25% acre West Crossing Phase I addition dedicated to the City of Anna, by plat recorded in Instrument Number 20060123010000130, PRCCT; THENCE, N 03°09'40" E,.along the west property line -of said 0.50 acre Gillard tract, and along the east right-of-way line of said Hac4berry Drive, a, distance of45.75 feet to a point'fnr corner, said point, being a 1/2-iron rod set with yellow cap stamped " BHC" on the new north right-of-way line of Hackberry haste (variable width R.O.W.); THENCE,, S W43' 16" i:., along the new north right-of-way line of said Hackberry Lane, a distance of 75.09 feet to a point for corner, said point being a 112-'iron rod set with yellow cap stamped "BHC" on the east property line ofsaid 0.50 acre Gillard tract, and also being on the west property line of said 0.4395 acre Rivera tract. H-era«Wuaa013)Q e3oaennkh"&,uaye1t0W "ztM srm�+ rsasusci_n�as cuu�►wa�a3= Page l of Jimmy & Tersy Gillard ,9r2512022 Parcel Na 2 Collin County THENCE, S 03*(W38" NV,, along the east property line of said 0.50 acre Gillard tract, s distance of 47.29 feet to the POINT OF BEGD4NTNG, containing 0.080 acres (3,488-square feet) of land, more or less. Also, a tempoiatycanstruction easement 5-feet in width and being immediately adjacent to. € and.north of the north leg of the above described Permanent Right-Of-Alay and containing 0.009 acres (375 square feet) of.land more or less. Notes: 1. Bearings, and distances cited in this field note description are bused on the Texas State Plane Coordinate System, NAD-83, Texas North Cantral Zone 4202. 2. Field survey concluded on 03l0=022. 3. A Flat of even date herewith accompanies this Field Note Description. Gary C. Hendricks, P.E., R.P.L.S. Texas Registration No. 5073 Birkhoff, Hendricks 8t Carter, 1. LY. TBPELS Finn No.1003 19-00 11910 Greenville Avc., Suite 600 Dallas, Texas 75243 + seiat� a ak tr D, RW&"Cn at_ v.zt m tMIX 4=d— Par 2 oj'3 rr rr JIMMY & TERRY GUARD 1 HiB1T, A VOL 1682. M 693 jwm � :mum OM ACRES 1 AM q * e Ma 20MMIOM931M Lost V. sWA 5' 7 ,470RA FaS111/FNT ! sDGaoeor000e3awo t dow AM (375 S.F.) $WA" wut % ocmaa WA K, & Nam svmw s l ,lT—IMF— 1 I I a In 9000MOMM 1 aRMUNAa e*r�rr. Sr.) asr c" mm o0 oro� 3/c utr r/r U s. Rw w Gum NWISZ r - �ar.ca• W �' t s'uw - seo�er om Saarti !�' ter. sear' sm Mum ffm I HEWY BEGINNING W— a. m v SURVEY #asp= al Na. i, aeeQO°ie I PARCEL NO. 2 OF CITY OF ANNA, TEXAS WM co=x � � JIMMY & TERRY GILLARD an"MOON .'° PERMANENT RIGHT-OF-WAY 073 mm ow swo ow 9 ° sa+o� pQ' BIRKHOFR, HENDRICKS & CARTER, L.L.P. re �� s�AvMUMNAy. MWINE �.�, APRIL 4. A mo mm � or so WITS l�� � TWC firm N6. 52k 711PLS rntm Ka tQ011M 2022 IUMMM ERW i IN.CH a � �T IIVlOc�mvEAcAvs.svtreaoo pr�lu.TruilTs3s3 (2i4y361-7gap O Hackberry Drive Project Location Map "cn An Appraisal Report of A Proposed Partial Acquisition of A 0.500 Acre Tract of Land Located Along the North Line of Hackberry Lane, West of Powell Parkway Anna, Collin County, Texas 75409 TPA File #: 22.0317.2 As of July 21, 2022 Prepared for Specialty Land Services, LLC Attention: Mr. Buddy Minett 1341 South Preston Road, Suite A Little Elm, Texas 75068 Prepared by T P A Real property Fnalyttt, Inc. 2301 Ohio Drive, Suite 150 Plano, Texas 75093 (214) 297-9000 www.ToddPropertyAdvisors.com t Todd Property Advisors Real Property Analysts, Inc. August 5, 2022 Mr. Buddy Minett Specialty Land Services, LLC 1341 South Preston Road, Suite A Little Elm, Texas 75068 RE: An appraisal regarding the potential acquisition of a right-of-way acquisition and a temporary construction easement on a 0.500 acre tract of land located along the north line of Hackberry Lane, west of Powell Parkway in, Anna, Collin County, Texas 75409. Dear Mr. Minett: We have personally inspected the above -referenced property and have prepared an opinion of value in accordance with your request. The purpose of this appraisal is to provide an opinion of market value of the fee simple estate of the subject property in "as is" condition and recommended compensation for the parts to be acquired and damages to the remainder, if any, as of the effective date of appraisal. The potential acquisition involves a right-of-way acquisition and a temporary construction easement by the City of Anna. All data considered pertinent to the preparation of this appraisal has been investigated and analyzed and the results of the analysis together with our conclusions may be found within the following report. Mitchell B. Todd, MAI and Michael A. Keane, MAI have performed numerous appraisals on similar properties and are sufficiently competent to complete this assignment. This appraisal involves an appraisal report in compliance with the Scope of Work Rule of the 2020-2021 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) (Effective January 1, 2020 through December 31, 2022) as provided by the Appraisal Foundation. It involves the application of the Sales Comparison Approach to value, as well as a Certification. Additionally, please note the Assumptions and Limiting Conditions located at the end of this report. For purposes of this report, we have only been asked to provide an opinion of market value. All methodology utilized to arrive upon the opinion of market value can be found in The Appraisal of Real Estate, Fifteenth Edition, as published by The Appraisal Institute. This appraisal report sets forth the identification of the subject property, information regarding the subject property and its surrounding area, comparable sales data, the results of the investigations and analyses, and the reasoning leading to our conclusions. The appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. 2301 Ohio Drive, Suite 150 A Plano, Texas 75093 ♦ www.ToddPropertyAdvisors.com TELEPHONE: (214) 297-9000 A E-MAIL: mitchell@toddpa.com Mr. Buddy Minett August 5, 2022 Page Two In our professional opinion, and after careful consideration of the various factors influencing this appraisal, the following illustrates the "as is" market value for the subject property and the recommended compensation, as of the effective date of appraisal, July 21, 2022: Opinions of Recommended Compensation Value of the Whole Property: $134,843 Value of the Part Acquired (0.080 Acre Right -Of -Way): $3,686 Remainder Before Acquisition: $131,157 Remainder After Acquisition: $131,157 Enhancements: $0 Damages: $90,000 Cost to Cure: $3,576 Value of the Part Acquired (0.080 Acre Right -Of -Way): $3,686 Recommended Compensation (0.009 Acre TCE): $65 Total Recommended Compensation: $97,327 Extraordinary Assumption: An extraordinary assumption has been made that the acquisitions by the City of Anna will not permanently limit ingress/egress to and from the subject property. The use of this assumption could affect the results of this assignment and if found to be incorrect could necessitate re -analysis. Further, these opinions of value are contingent upon the subject property being free of any hazardous wastes deposited thereupon by the present or previous owners/tenants of the site which would adversely affect the value of the property. The existence of any such materials was not observed upon the physical inspection of the property. However, we are not qualified to detect these substances and it is recommended that an expert in this field be obtained if the client has suspicion of these materials and substances existing on the property. It is also assumed there is full compliance with all requirements of Title III, of the Americans with Disabilities Act (ADA) which became effective January 26, 1992. No responsibility is assumed by the appraisers for any such conditions, or for any expertise of arch itectural/design knowledge and cost required identifying such non-compliance. Mr. Buddy Minett August 5, 2022 Page Three There was no information required or deemed pertinent to the completion of this appraisal, which was not available to the undersigned unless otherwise stated in this report. Additionally, the value conclusions found within this report are exclusive of any personal property, fixtures, or intangible items that are not real property. Thus, the reported values within this report pertain to the real property only. In order for the opinion of value set forth herein to be considered valid this letter of transmittal must not be considered separately or independently of the attached appraisal report, and this appraisal report must be used in its entirety and must not be separated into parts. Should any questions regarding this appraisal arise, please contact us. Respectfully submitted, Mitchell B. Todd, MAI President State Certification #TX-1323514-G mitchpell�ll�@toddpa.com ,�f Mk /; - Jonathan D. Martin Appraisal Associate State Certification #TX-1381200-G jonathan@toddpa.00m n,Z'"uG Michael A. Keane, MAI Senior Vice President State Certification #TX-1380384-G michael@toddpa.com TABLE OF CONTENTS Section 1- Introduction ExecutiveSummary ........................................................................................................2 Identification of the Property............................................................................................5 Objectiveof the Appraisal................................................................................................6 Identification of the Appraisal Problem ............................................................................6 Dateof Value Opinion.....................................................................................................6 Dateof Report .................................................................................................................6 AppraisalReport Option.................................................................................................. 6 Intended Use/Intended User............................................................................................6 Statement of Prior Services Rendered ............................................................................ 6 PropertyRights Appraised...............................................................................................7 Definition of Market Value...............................................................................................7 Statement of Ownership.................................................................................................. 7 Scopeof Work.................................................................................................................7 Covid-19 Statement.........................................................................................................9 History of the Subject Property........................................................................................9 Estimate of Exposure Time.............................................................................................9 Estimate of Marketing Time...........................................................................................10 Section II — External Influences RegionalAnalysis..........................................................................................................12 City/Neighborhood Analysis..........................................................................................22 Section 111 - Factual Descriptions and Analyses Site Description and Analysis........................................................................................ 28 Zoning and Land Use Restrictions.................................................................................34 TaxAnalysis.................................................................................................................. 36 Subject Property Photographs.......................................................................................37 Highest and Best Use Analysis.....................................................................................40 The Appraisal Process..................................................................................................43 Section IV — Land Valuation LandValuation..............................................................................................................45 Comparable Land Sales Presentation........................................................................... 46 LandSales Analysis...................................................................................................... 51 Conclusion of Land Value.............................................................................................56 Section V - Valuation Conclusion FinalOpinion of Value................................................................................................... 60 HomeSales Analysis....................................................................................................68 Conclusion of Land Value.............................................................................................73 Section VI — Certification & Assumptions & Limiting Conditions Assumptions and Limiting Conditions............................................................................80 Section VI - Addendum Qualifications & Certifications of the Appraisers Prescriptive ROW Surveys SECTION I ..INTRODUCTION: SALIENT FACTS & CONCLUSIONS Property Appraised: Property Type: Location: Date of Inspection: Date of Valuation: Date of Report: Property Rights Appraised Ownership: TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. EXECUTIVE SUMMARY A 0.500 acre (21,780 square feet) tract of land improved with a single family residence and other site improvements. The source of the land size is the Collin Central Appraisal District (Collin CAD). According to the surveys provided by Birkhoff, Hendricks & Carter, LLP, the portions of the site from which property rights will potentially be acquired involve a 0.080 acre (3,488 square foot) right-of-way acquisition and a 0.009 acre (375 square foot) temporary construction easement. Land improved with single-family residence 510 Hackberry Lane, Anna, Collin County, Texas July 21, 2022 July 21, 2022 August 5, 2022 Fee Simple Estate Jimmy & Terry Gillard 22.0317.2 2 TODD PROPERTY ADVISORS REAL PROPERTY ANALYST8, INc. Land Size: Total Land: 0.500 acres (21,780 square feet) Right-of-way Acquisition: 0.080 acres (3,488 square feet) TCE: 0.009 acres (375 square feet) Status of Property: As of the date of the appraisal, the subject property consists of a 0.500 acre (21,780 square feet) tract of land improved with a single family residence and other site improvements. The subject is physically located along the north line of Hackbeny Lane, West of Powell Parkway in Anna, Collin County, Texas, and has a municipal address of 510 Hackberry Lane, Anna, Texas. According to the surveys provided by Birkhoff, Hendricks & Carter, LLP, the portions of the site from which property rights will potentially be acquired involve a 0.080 acre (3,488 square foot) right-of-way acquisition and a 0.009 acre (375 square foot) temporary construction easement. The subject property currently has access to all public utilities from the City of Anna. Zoning: HIGHEST AND BEST USE: As If Vacant: SCOPE OF WORK Appraisal Problem Identification: Objective of the Appraisal: Intended User: Client: Valuation Approaches Used: SF-1, Single Family Residential Residential Development To provide an opinion of market value of the fee simple estate of the subject property in "as is" condition and recommended compensation for the parts to be acquired and damages to the remainder, if any, as of the effective date of appraisal (July 21, 2022). To provide an opinion of market value of the fee simple estate of the subject property in "as is" condition and recommended compensation for the parts to be acquired and damages to the remainder, if any, as of the effective date of appraisal (July 21, 2022). It is our understanding that this opinion of value will be utilized by the client to assist in determining compensation regarding the potential acquisitions by the City of Anna. Specialty Land Services, LLC, and The City of Anna Specialty Land Services, LLC Sales Comparison Approach 22.0317.2 3 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. CONCLUSION OF VALUES Opinions of Recommended Compensation Value of the Whole Property: Value of the Part Acquired (0.080 Acre Right -Of -Way): Remainder Before Acquisition: Remainder After Acquisition: Enhancements: Damages: Cost to Cure: Value of the Part Acquired (0.080 Acre Right -Of -Way): Recommended Compensation (0.009 Acre TCE): Total Recommended Compensation: $134,843 $3,686 $131,157 $131,157 $0 $901000 $39576 $3,686 $65 $979327 22.0317.2 4 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSIS, INC. IDENTIFICATION OF THE PROPERTY As of the date of the appraisal, the subject property consists of a 0.500 acre (21,780 square feet) tract of land improved with a single family residence and other site improvements. The subject is physically located along the north line of Hackberry Lane, West of Powell Parkway in Anna, Collin County, Texas, and has a municipal address of 510 Hackberry Lane, Anna, Texas. According to the surveys provided by Birkhoff, Hendricks & Carter, LLP, the portions of the site from which property rights will potentially be acquired involve a 0.080 acre (3,488 square foot) right-of-way acquisition and a 0.009 acre (375 square foot) temporary construction easement. The part to be acquired includes the single-family residence located on the subject property. According to the Collin CAD, the improvements were constructed in 1940 and comprise 992 square feet. The subject property currently has access to all public utilities. A summary of the legal description of the subject tract is located below followed by an aerial photograph of the subject property. Being a tract of land situated in the Henry Brantley Survey, Abstract No. 071, City of Anna, Collin County, Texas, and being part of a tract of land, conveyed to Jimmy and Terry Gillard, by deed recorded in Volume 1682, Page 693, Deed Records of Collin County, Texas (D.R.C.C.7). `Aerial photograph provided by the Collin CAD webske (www.colllncad.org). The purple lines depict the boundaries of the subject tract The red lines depict the boundaries of the right-of-way acquisition. The orange lines depict the boundaries of the temporary construction easement. Boundaries are approximations based on the surveys provided and may not be exact. 22.0317.2 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. OBJECTIVE OF THE APPRAISAL To provide an opinion of market value of the fee simple estate of the subject property in "as is" condition and recommended compensation for the parts to be acquired and damages to the remainder, if any, as of the effective date of appraisal (July 21, 2022). It is our understanding that this opinion of value will be utilized by the client to assist in determining compensation regarding the potential acquisitions by the City of Anna. IDENTIFICATION OF THE APPRAISAL PROBLEM The appraisal problem of this report is to provide an opinion of the market value of the fee simple estate of the subject tract and recommended compensation for the parts to be acquired and damages to the remainder, if any, as of the date of appraisal (July 21, 2022). DATE OF VALUE OPINION An inspection of the property was conducted on July 21, 2022. The effective date of valuation is July 21, 2022. DATE OF REPORT The transmittal date of this appraisal is August 5, 2022. APPRAISAL REPORT OPTION This is an Appraisal Report that complies with the reporting requirements set forth under Standards Rule 2-2 (a) of the Uniform Standards of Professional Appraisal Practice (USPAP). As such, it presents sufficient information to enable the client and other intended users as identified to understand it properly. The depth of discussion contained in this report is specific to the needs of the client and the intended use of the appraisal as noted herein. INTENDED USE/INTENDED USER This appraisal report has been prepared for and is intended to be used by Specialty Land Services, LLC. The intended use of this appraisal report has been identified by the appraisers based on communications with the client, at the time of the assignment to assist in determining compensation regarding the potential acquisitions by the City of Anna. Therefore, the intended user of this report is Specialty Land Services, LLC and the City of Anna. Use of this report by others is not intended by the appraisers. No one other than the intended users should rely on the opinion of value or any other conclusions contained in this report. STATEMENT OF PRIOR SERVICES RENDERED Todd Property Advisors, Mitchell B. Todd, MAI, Michael A. Keane, MAI, and Jonathan D. Martin have rendered no services as an appraiser or in any other capacity regarding this property within the three-year period immediately preceding acceptance of this assignment. 22.0317.2 6 TODD PROPERTY ADVISORS REAL PROPERTY ANALYsTs, INC. PROPERTY RIGHTS APPRAISED The fee simple estate is defined as "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the govemmentai powers of taxation, eminent domain, police power, and escheat"' This differs from the leased fee estate. "In appraisal practice, the lessor's, or landlord's, position is referred to as the leased fee. The rights of the lessor (the leased fee owner) and the lessee (leaseholder) are specified by contract terms contained in the lease". 2 Easement ownership is defined as `the right to use another's land for a stated purpose". 3 The fee simple estate has been appraised due to the subject not being currently encumbered by any long-term lease agreements. This ownership interest is subject to any zoning ordinances, easements, restrictions of record and other applicable codes and ordinances of record. DEFINITION OF {MARKET VALUE The appropriate definition of market value for this assignment is as follows: "Market Value" is the price the property would bring when offered for sale by one who desires to sell, but is not obliged to sell, and is bought by one who desires to buy, but is under no necessity of buying, taking into consideration all those 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. City of Austin v. Cannizzo, 267 S.W. 2d 808 (Tex, 1954) STATEMENT OF OWNERSHIP According to information provided by the Collin CAD and the vesting deed records, title of the subject is vested in Jimmy & Terry Gillard. SCOPE OF WORK The scope of work is defined as the type and extent of research and analysis in an assignment. The scope of this appraisal assignment is to provide a credible opinion of the market value of the subject property in "as is" condition as of the effective date of appraisal (July 21, 2022). In compliance with the 2021-2022 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) (Effective January 1, 2020 through December 31, 2022), and upon the request of the client, an appraisal report has been prepared utilizing the Scope of Work Rule. The Scope of Work Rule within USPAP emphasizes the requirements for problem identification, determining the appropriate scope of work, and disclosure of the scope of work that was 1 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 90. 2 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 62. 3 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 71. 22.0317.2 7 TODD PROPERTY ADVISORS REAL PROPERTY ANALym, INC. performed in appraisal, appraisal review, and appraisal consulting assignments. The following is a discussion of the scope of work undertaken within the context of this report. The scope of work for this appraisal was determined by the complexity of the assignment and the reporting requirements of this appraisal report type, including: the definition of market value, real property interests valued, assumptions and limiting conditions, and certifications. The appraisers considered this scope of work to be adequate to complete a credible appraisal of the subject property. The appraisers believe that this scope of work would meet the expectations and needs of parties who are regular intended users for similar assignments and that this scope of work is substantially similar to what an appraiser's peers actions would be in performing the same or similar assignment. Based upon our education and experience appraising similar properties for right-of-way acquisition purposes and our knowledge of the local market, we are competent to complete this appraisal assignment. The subject appraisal research began with a review of the three year history of the subject property prior to the date of appraisal by conducting research of the Collin County public records. This research was facilitated by several on-line resources including CoStar.com, the Collin CAD, and Loopnet.com, as well as several other resources including owners, buyers, lenders and other parties knowledgeable of the subject property. The Regional, City, and Neighborhood Analyses are presented in a summarized format and include information gathered through inspection of the areas, review of published secondary data, such as that provided by the North Central Texas Council of Governments, and a variety of resources available from the Cities of Fort Worth, Dallas, and other surrounding communities comprising the Metroplex. The site analysis included an inspection by the appraisers and a review of FEMA flood insurance rate maps, and aerial photographs via satellite. The property inspection included a visual survey of the subject on July 21, 2022. The applicable zoning ordinance of the subject property was verified with the zoning records of the City of Anna. The tax rates, assessed values, and information regarding the subject's tax debt were verified by the Collin CAD and the individual taxing jurisdictions via the appraisal district's website (www.collincad.org). Primary data regarding the subject submarket and the immediate surrounding area was verified by the appraisers through an inspection of the area, and interviews conducted with owners, real estate brokers, and management company representatives. To complete this appraisal assignment, the Sales Comparison Approach was considered and utilized. The exclusion of the Income and Cost Approaches to value is considered reasonable due to the fact that no leasing information was available to the appraisers, the fee simple estate has been analyzed, and that the subject was constructed in 1940 and have an actual age of 82 years according to the Collin CAD. All data gathered within this approach regarding properties similar to the subject have been previously verified with either the Grantor, the Grantee, or their representatives through their respective sources. A more detailed explanation of the methods and techniques employed in these approaches is located in the Valuation Process section of this report. 22.0317.2 8 TODD PROPERTY ADvisORs REAL PROPERTY ANALYSTS, INC. COVID-19 STATEMENT This report does not portend to fully quantify the impact of the COVID-19 pandemic and its potential impact on local and/or national economic conditions. Todd Property Advisors continues to strive to understand the potential impacts of COVID-19 on real property values. In performing due diligence in these extraordinary times, we have referred to the Appraisal Institute's Guide Note 10, Appraising in the Aftermath of a Disaster, and Guide Note 12, Analyzing Market Trends. Many of the suggestions within these two guide notes have been considered and applied when relevant within this appraisal. Given that an appraisal report's credibility relies on current market conditions, the coronavirus pandemic's impact on market conditions must be considered. However, in most markets it is not yet clear to what extent, if any, market conditions are affected. Related and complicating factors include continued high demand for some product types in geographic submarkets as well as investor demand for stabilized investment properties and historically low mortgage interest rates and abundant equity capital pursuing yields and stability. Our client is encouraged to conduct their own due diligence and analysis regarding current market conditions which could be impacted by the COVID-19 pandemic and how these potential impacts may relate to the subject property and their interest in it. HISTORY OF THE SUBJECT PROPERTY The subject property sales history was researched through a search available from the Collin CAD property records, CoStar.com, and Loopnet.com among various other sources. According to the Collin CAD and the vesting deed records, title of the subject is vested in Jimmy & Terry Gillard. No arm's length conveyances have been uncovered regarding the subject during the last three years. ESTIMATE OF EXPOSURE TIME A reasonable exposure period is the amount of time necessary to expose a property to the open market in order to achieve a sale. According to USPAP 2021-2022 (Effective January 1, 2020 through December 31, 2022), exposure time is defined as, "an estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal." It is our opinion that a period of six to nine months, with a contract period of 90 days is reasonable. This results in a total exposure time until closing at a title company of nine to twelve months. We performed due diligence in estimating the exposure period for the subject property by surveying the marketing period for comparable properties which had recently sold or were placed under contract. Additionally, the brokers contacted in verifying the comparable improved sales within this report generally indicated that exposure times during the last twelve months have typically ranged from six to twelve months. 22.0317.2 9 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. It was observed that properties are often marketed for several months or years with very little interest shown in the property. However, they eventually sell after significant price reductions. A common tendency among the majority of these sales is that once these properties experience price reductions, which are believed to bring them into alignment with the rest of the market, their exposure time was typically less than one year. The price reductions and recognition of market derived values is reflected in the comparables' sales prices. This is to the extent that the sales price as represented by the value conclusion for the subject is attractive to an investor today. Thus, this attractive price should result in a normal exposure of less than one year. Therefore, it is our opinion that had the subject property been marketed at or very near the "as is" value conclusion contained herein, it would have been sufficiently attractive to entice an investor to purchase the property within a nine to twelve month exposure period. ESTIMATE OF MARKETING TIME Marketing time is defined as "an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal."4 Thus, marketing time is an estimate of the amount of time necessary to sell a property after the date of appraisal, which differs from exposure time which is a retrospective estimate of the amount of time necessary to achieve a sale prior to the effective date of appraisal. ' EXPOSURE TIME I EFFECTIVE DATE I MARKETING TIME , It is our opinion that a marketing period of six to nine months, with a contract period of 90 days is reasonable. This results in a total marketing time until closing at a title company of nine to twelve months. We performed due diligence in estimating the marketing period for the subject property by surveying the marketing period for comparable properties which had recently sold or were placed under contract. A common tendency among the majority of the sales is that once these properties experience price reductions which are believed to bring them into alignment with the rest of the market, their marketing period is typically less than one year. For example, properties are often marketed for several years with very little interest shown in the property. However, they eventually sell after significant price reductions. The price reductions and recognition of market derived values is reflected in the comparables' sales prices. This is to the extent that the sales price as represented by the value conclusion for the subject is attractive to an investor today. Thus, this attractive price should result in a normal marketing period of less than one year. Therefore, it is our opinion that if the subject property is marketed at or very near the value conclusion contained herein, it will be sufficiently attractive to entice an investor or user to purchase the property within a twelve month marketing period. 4 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 140. 22.0317.2 10 SECTION II - EXTERNAL INFLUENCES TODD PROPERTY ADVISORS REAL PROPERrY ANALYSrs, INC. REGIONAL ANALYSIS Real Estate is an immobile asset, which is dependent upon the exterior environment for economic viability. The economic climate in which a property is located is both general (the region or area in which a property is located) and specific (the neighborhood). Four forces continually exert influence on real estate values within any environment: social, economic, environmental and governmental. The purpose of this section is to consider all pertinent forces that will have an effect on the use and value of the subject property. rn t wake G Om �� XwJ sw. ad.rm S+apn r . Subject Property p a e..pepnn �,;.� } J awn O 4V MClkrvky PVMn W9q w.a t,k Fln F,iMw fa,mrmllk Pmtlrn .. FN.. Fri Xcnn aYa Aral• L1 > NM as O dWJ .,unn IIagAY }Y, •al L Y 4c L>Otlo Mllli Wi01"e C � Lewlzmlle � .n•k'-•• 'flpv, Vn,d PI0a0 XLupav wylu m dnsE.. Nwm1a mX.h aW„ sam5ion L G QjO Ca11.11Cn © y�5 Roy:<cnr Q 5 Plrl,ertlzon y' Fuu a Nel'm G,BpPVIa _ Fa r'paekwyl y, Lanm Yk Wa. 0 fi d,dll(I to �pwu w Vim' Ilvinq wwlrw. © Dallas MecpJte w.wl.nve u. �un+m^ F� WOFU ,ow, GmrN Rena ® � Atlmg oon a rmrx. ® Wrv. ,.ernWa•v J.msr�,.e ,:vcl:m:. Supnl'.a Pwr C:ikd'J9e © [«r:6a11 1°J' 0 hN Lary pa'n ley CN.r Xili C �® o mn ......r WbLonbea N«la,.m Wimsan I.ranafelJ C,e«a, 0`unewn NMC,4 F ��Oa4 Grtre a O a " Pr:moak. M:blcll.m Varvf P,law f� Go,&My Mapm Ik.. n The Dallas -Fort Worth -Arlington Consolidated Metropolitan Statistical Area (CMSA) encompasses approximately 9,289 square miles in north central Texas. The Dallas -Fort Worth - Arlington CMSA is comprised of 12 counties: Collin, Dallas, Denton, Tarrant, Johnson, Kaufman, Parker, Rockwall, Hunt, Wise, Delta and Ellis. This CMSA, which is also referred to as the D/FW area or Metroplex, is located 203 miles northeast of Austin, 240 miles northwest of Houston and 206 miles south of Oklahoma City. On a national level, the Metroplex is located in the southern central sector of the country. The Dallas/Fort Worth area is located approximately equidistant from both coasts and from the four major concentrations of population in North America: New York, Chicago, Los Angeles and Mexico City. The following is a discussion of the aforementioned forces that exert influence on property value. 22.0317.2 12 TODD PROPERTY ADvisoRs REAL. PROPERTY ANALYSTS, INc. Environmental The Dallas -Fort Worth climate is humid subtropical with hot summers. It is also considered to be continental, characterized by a wide annual temperature range. The amount of precipitation usually varies and ranges from less than 20" to more than 50". D/FW winters are somewhat mild, but occasionally there are sudden drops in temperature. Periods of extreme cold that occasionally occur are short-lived, so that even in January mild weather occurs frequently. During the summer, the high temperatures are associated with fair skies, westerly winds, and low humidity's. Average high and low temperatures range from 37 F in January to 98 F in August. Rainfall occurs throughout the year, but usually occurs more frequently during the night and also during the spring. Usually, periods of rainy weather last for only a day or two, and are followed by several days with fair skies. Moderate hail may occur on about two or three days a year, only causing slight and scattered damage. However, windstorms occurring during thunderstorm activity may be destructive. Snowfall is rare. The average length of the warm seasons (freeze -free period) is about 249 days, or about 8 months. Thus, the local climate is very conducive of real estate development. The area's topography is basically level in the northern sector to gently rolling in the southern portion. The rolling terrain of the southern sector is due to a geologic formation known as the escarpment. This escarpment consists of a chalky soil that rests on top of shales causing unstable building foundations. The shale soil presents shrink -swell problems for the foundations of buildings that are constructed on it, and the chalk is an unstable soil that crumbles easily, resulting in minor landslides. Transportation As stated above, on a national basis, the Dallas/Fort Worth Metroplex is centrally located, which has resulted in the development of a major transportation network that connects the Metroplex with the rest of the country. This network consists of major thoroughfares, railroad lines and air carriers. In regards to roadways, the Dallas/Fort Worth region is located at the convergence of four Interstate Highways: north -south access is provided by Interstate Highways 35 and 45 (IH- 35 and IH-45); east -west access is provided by IH-20 and IH-30. Two major outer loops provide internal accessibility to the region. LBJ Freeway (IH-635) surrounds Dallas, and IH-820 encompasses Fort Worth. Both of these arteries connect with the interstate highways as well as local streets, thus affording the cities regional as well as internal access. In recent years, greater access and mobility have been expanded to the Metroplex's surrounding communities. The President George Bush Toll Road (SH-190) is a loop encircling IH-635 that connects IH-30 in Garland/Rockwall to IH-20 in Grand Prairie traversing the communities of Rowlett, Mesquite, Garland, Richardson, Plano, Carrollton, Coppell, Irving, Arlington and Grand Prairie. Additionally, the North Texas Tollway Authority (NTTA) recently opened the Chisholm Trail Parkway connecting the Downtown Fort Worth Business District with communities to the south including Benbrook, Crowley, Joshua and connecting with SH-67 in Cleburne. 22.0317.2 13 TODD PROPERTY ADvisORs REAL PROPERTY ANALYSTS, IHc. Two additional toll roads which serve the Metroplex are the Dallas North Tollway and the Sam Rayburn Tollway (SRT). SH-121(located north of SH-190) has expanded to incorporate and become the SRT. While SH-121 continues to run east -west from Fort Worth to McKinney connecting DFW Airport to other areas of the Metropolitan area, the SRT has provided a larger artery for traffic to flow between the communities of Grapevine, Coppell, Carrollton, Plano, Frisco, Allen and McKinney. The Dallas North Tollway connects downtown Dallas to the rapidly growing areas of Frisco and Prosper. The Sam Rayburn Tollway connects central Collin County to the vicinity of the DFW International Airport. Reference may be made to Mobility 2040 which was adopted by the Regional Transportation Council in March of 2016. This long range strategic plan aims to define the vision for the Region's transportation system and identify solutions and options. The goals of the plan are to improve mobility, quality of life, and air quality concerns for the cities of Dallas and Fort Worth as well as the surrounding areas. In addition, properties located along or near new or improved thoroughfares should benefit from this plan through better access and exposure. It is worthy to note that the region is also serviced by multiple public transportation services including bus, rail and light rail. These services include Dallas Area Rapid Transit (DART), DART Light Rail, the Fort Worth Transportation Authority (FWTA or The T), the Trinity Railway Express (TRE), and the Denton County Transportation Authority (DCTA). In addition to the various modes of ground transportation, the Metroplex is serviced by a major international airport as well as several other local and regional airports. D/FW International Airport, located midway between Dallas and Fort Worth, has the 2nd largest land area of any other airport in the nation with 17,207 acres and the fourth largest in the world. In 2016, D/FW was responsible for 65,670,697 passengers reaching their destinations, making it the world's 11 th busiest airport in number of passengers, with service provided by 9 international and 11 domestic airlines. As of December 2018 DFW Airport provides transportation to more than 244 destinations including 62 international and 182 domestic destinations with the number of daily flights just under 3,000 including passenger and freight. Additionally, DFW is one of 3 domestic airports and 11 globally providing service to more than 200 destinations around the world. The City of Dallas owns and operates Dallas Love Field. The airfield is located six miles northwest of the downtown central business district and is managed by the City's Department of Aviation. Southwest Airlines is the predominant user of Love Field; however, Alaska Airlines and Delta Airlines also utilize Love Field. In 1963, several airlines had all agreed to seek full repeal of the Wright Amendment; which restricted direct flights to other states from Love Field. In 2008, the airport handled approximately 8,060,000 passengers. On October 13, 2014, the Wright Amendment had been repealed and new non-stop service to several cities began. This has led to significant increases in passenger traffic. Southwest Airlines added numerous other cities in the beginning of 2015. In 2016, the airport handled approximately 15,563,000 passengers. To accommodate the increase in traffic construction on a new parking garage was constructed and opened in 2018. 22.0317.2 14 TODD PROPERTY ADvisORs REAL PRQPERTYANALYSTS, INC. Commercial air freight service is provided to the region by the Alliance International Centre which is the first development of its type in the world. This Fort Worth based facility comprises a 3,000- acre cargo airport/industrial park. Meacham Field (Fort Worth), Addison Airport (North Dallas) and several other municipal airports, provide for the area's general aviation needs. Social According to The Appraisal of Real Estate, Fifteenth Edition, social forces studied by appraisers primarily relate to population characteristics. Because the demographic composition of the population reveals the potential demand for real estate, proper analysis and interpretation of demographic trends are required. Real property values are affected not only by population changes and characteristics, but also by the entire spectrum of human activity. The total population, its composition by age and gender, and the rate of household formation and dissolution strongly influence real property values. Social forces are also manifest in attitudes toward education, law and order, and lifestyle options. This section of the report will identify all social forces that may have an effect on the value of the subject property. According to the North Central Texas Council of Governments (NCTCOG) 2021 population estimates, North Central Texas estimated that the region had added approximately 1,335,000 new residents between 2010 and 2021 for a total population of 7,874,950. A chart detailing the individual county growth rates is located below included the most recent year over year data. County Name 2010 Est. 2011 Est. 2012 Est. 2013 Est. 2014 Eat. 2015 Est. 2016 Est. 2017 Eat. 2018 Fat. 2019 Fat. 2020 Est. 2021 Est. Pop. Pop. Pop. Pop. Pop. Pop. Pop. Pop. Pop. Pop. Pop. Pop. Apr.1 Jan.1 Jan.1 Jan.1 Jan.1 Jan.1 Jan.1 Jan.1 Jan.1 Jan.1 Jan.1 Jan.1 Jan. 2020 to Jan. 2021 Abs. Change Jan. 2020 to Jan. 2021 % Change Collin 7BZ341 792,150 795.390 827.780 851.920 873.840 901.170 932,530 969.780 1,010.330 1,039.540 1.082,760 43,220 4.16% Dallas 2.368.139 2,380,510 $383,790 $415.060 2,435,8W 2,455,050 2AM970 2,502,270 2,529.150 2.554,770 2,593,570 2,619,040 25.470 0.98% Denton 662.614 689.930 677,880 714.000 736.900 761,040 784.840 814.560 644.260 874.240 90$190 933.220 31,W0 3.44% ails 149.610 151,030 152,570 168.070 161.200 166.010 IM690 173.410 163.360 189,820 198,640 206.810 8,170 4.11% Erath 37.890 38.340 38.340 40.700 41.010 41,460 43.640 43.860 44.200 44,700 45,670 48.180 510 1.12% Hood 51,182 51,420 53,670 58.8W 61.680 64,400 64,820 64,840 85.060 65.960 68,890 66.920 30 0.04% Hunt 88.129 86.860 87.840 90.070 91.240 92,530 93.110 94.350 95.960 97,410 99,300 101.510 Z210 2.23% Johnson 150.934 151.440 151.790 155,240 156.710 158.680 161,670 164.970 169.160 173,700 178,260 185.180 6.920 3.88% Kaufman 103.350 103.440 104,050 106,400 108.120 109,300 113,530 116,140 119,670 124.850 126.520 132,250 3,730 2.90% Navarro 47.735 47,940 47,940 48,470 48,590 48,9W 49,030 49.170 49,740 60,250 60,870 51,670 800 1.57% Palo Pinto 28,111 28,180 28.290 28,420 28,590 28,710 28.660 28,660 28.710 28,820 28,9W 29.360 400 1.38% Parker 116.927 117,570 118.040 120,640 121,830 124.630 127.9W 130.150 131.210 134.620 136,600 139,180 2.580 1.89% Rockwall 78.337 78.990 79,570 83AW 85.900 88.200 90,570 93.130 97.990 101.020 107,760 113,350 5.570 5.17% Somervell 8.490 8.550 8,560 8,690 818W 8,950 9,230 9.420 9.840 9.820 91980 10,190 210 2.10% Tenant 1,809,034 1.818.240 1.832.660 1,876,930 1,899,900 1,927,470 1,945,320 1.966,440 1,989.810 2,024.030 2.064,340 2,091,320 28,980 1.31% Wise 1 59.127 59.540 59.600 60,920 61.690 61,970 62,240 62.460 02,700 64.060 65,300 66,010 710 1.09% 116-CountyRogloni 6.539 950 6,584.130 6.619.970 6.792,670 6,699.680 7,005,340 7.123,170 7.246.350 7.390 400 7,648 400 7,716,410 7,874.960 158.540 2.05% According to NCTCOG's 2021 Population Estimates document: "The estimated January 1, 2021 population for the NCTCOG region is 7,874,950. Last year the region added 158,540 people. Even though the north central Texas region, as well as the rest of the country faced a big challenge due to the pandemic, the region still managed to grow by almost the same amount as it did in 2019. In 2020, 12 cities grew by 10% or more. Fort Worth led the region in growth, adding almost 17,000 people last year while Frisco added close to 16,000, followed by McKinney with 6,100 and Dallas with 5,560. Collin, Denton, Dallas, and Tarrant Counties each added more than 25,000 people last year, with Collin County leading the way with 43,000 new residents. The region has added more than 1.3 million new residents since 2010." 22.0317.2 15 TODD PROPERTY ADvIsORs REAL PROPERTY ANALYSTS, INC. Economic Economic forces have a direct and obvious effect on property values. The condition of an area's economy in great measure determines the growth or decline of the population, as well as its purchasing power, which affect the demand for goods and services. If an area's economy is in a growth stage, construction of new housing, retail centers and expansions of employment centers occur to accommodate the needs of the population. Conversely, as the unemployment rate rises because of an area's declining economy, some residents move from the area, and those who remain may have decreased disposable incomes, both of which result in a diminished demand for housing as well as goods and services. As occupancy rates for housing, retail facilities, and employment centers decrease, demand for new construction either decreases or may even cease altogether. Characteristics that are considered to be demand -oriented include employment levels, the number and size of basic industries, and the availability of mortgage credit. Economic characteristics that are considered to be supply -oriented include the stock of available vacant and improved properties, occupancy rates, and rental rates. Apartment markets continue to fare better than expected, with occupancy and rents improving in most Texas metros. According to the 1st Quarter 2022 CoStar analytics report, the Dallas/Fort Worth area apartment asking rent has increased approximately 15.5% (YOY). Additionally, Costar reports uThe Dallas -Fort Worth apartment market set record -level performances over the past year. Demand for multifamily units surged, roughly double pre -pandemic norms, due to pent- up demand coming out of the pandemic. With rising absorption, rents have accelerated, establishing a new high-water mark for growth. The trend is pervasive across asset classes and communities in urban and suburban settings." The D/FW Metroplex has an excellent transportation network, a good central U.S. location, and a relatively low cost of living compared to other parts of the U.S., which attracts major corporate employers. D/FW is a major product distribution center and it is a major trade hub with Mexico and other sectors across Latin America. The Emerging Trends in Real Estate markets -to -watch survey for 2018 revealed the Dallas/Fort Worth market as the number -five market to watch. The area is considered to continue strong growth due to projected population increases and corporate relocations. Multiple survey respondents and interviewees mentioned the strong job growth driving the local economy. (Emerging Trends in Real Estate, United States and Canada 2018, PricewaterhouseCoopers LLP and Urban Land Institute). D/FW is also known for its large technology influence, and provides business services such as advertising, data processing, telecommunications, and other computer services. As mentioned previously, the transportation industry will continue to play an important part of the economy, due to D/FW International Airport's large influence. According to the NCTCOG Forecast 2040, total employment for the region is anticipated to grow in excess of 2,750,000 jobs between 2010 and 2040. Dallas County alone is expected to encounter over 1.3 million new jobs during this time period accounting for more than 45% of the projected growth. Collin and Denton counties will account for 18% of the region's total growth by 22.0317.2 16 TODD PROPERTY ADvisORs REAL PROPERTY ANALYSTS, INC. adding approximately 314,000 and 196,000 new jobs respectively between 2010 and 2040. Tarrant County is anticipated to add approximately 713,000 new jobs during this time period as well. Employment is expected to increase tremendously over the next 20+ years which will only continue to contribute to the growing economy of the region. The following page contains an economic snapshot of the Dallas -Fort Worth -Arlington Metropolitan District (Dallas, Tarrant, Collin, Denton, Rockwall, Johnson, Ellis, Hunt, Kaufman, Wise, Parker, Hood, and Somervell Counties). This information was provided by the Texas Workforce Commission from their May 2022 Economic Profiles and is currently the most recent available. 22.0317.2 17 TEXAS Labor Market InforTnation MSA E= — I — I m TODD PROPERTY ADVISORS REAL PROPERTY ANl ms, INC. fft4AT .. _ _ .. ... .. -._,_. r.nn�na�r+naea n a � p ,.tea{6 a RR�6 rR .11 z-.sE ETalas■ US Dallas -Fort Wonh-Arlington hoax U :•L% � sa:alx uwwressvav wnx+NAssn mAm.nsrarlar��rcom.m�sa.us.'re —10-le :lax toov.,a a«:asax�, ia<+a:wxf O°" re.n�mre.eq fe,.ezm 13l� �alm:e�x / �1W&8 :12!% :Apb93:9]%� �25PdW :BI% amml Orawth Role Total MMMMMM� Non,agrlcullural �.nns«»s.n.msm , �.�euuumsa.mam wcxeoww J �-vaoni.m�s2xam awres5m+sf185M9 � FLvvi IAMWsiB.11a-01 employment �v`ac`ea a�hm3 l�e �dm t'e r�6 ■ Rate morm.e inn. v.r %V—ly Pape i of 1 RI! RRR__r _..R (mama.ltll%\ raiN.tlarN Nc72% 9sWar33%� / "We�ig>2x e My la 103% �- J®® BM UtlMb]15% Fduax�N Hag° eaN®11.]96 Pr�M1natxlerd \InMreSFl Y.tx &uNO SNm 1B.R% � FWD /Wib B.B% 52MM 2:MM PM 22.0317.2 18 TODD PROPERTY ADvisoRs REAL PROPERTY ANALYSTS, INC. Governmental Although the Metroplex is governed by state and county agencies, the most direct influence on properties lies with the municipalities. The majority of the cities within the nine county area have council-manager forms of government. County and city governments are financed by a combination of property taxes, sales taxes, and miscellaneous taxes, fees, and fines. Property taxes are collected by the various taxing districts based upon market value assessments determined each year by county appraisal districts. No personal or corporate income taxes are levied by any city or county in the CMSA. The state of Texas does impose Franchise Taxes which are an indirect form of corporate income tax. The City of Dallas has a council-manager form of government with the mayor selected at -large, 14 single member district council members, and one city manager. In a council -city management form of government, council members represent the people in their geographic districts. The City Manager is responsible to the council for the administration of business policies that the council has established. Services provided by the city include complete fire protection, police protection, water, sewer and garbage disposal. Electric service is provided by Oncor Electric Company while natural gas is provided by Atmos Energy. Telephone service is provided by AT&T. Fort Worth, like Dallas, utilizes a Council -City Management form of government. The Fort Worth City Council consists of an appointed City Manager, an at -large elected mayor and eight council members. The City manager is the Chief Administrator of the city and is appointed by and accountable to the council. Also, like Dallas, water, sanitation, sewer services, and police and fire protection, as well as street and bridge maintenance are all provided by the City government. The other utility carriers of electricity, gas and telephone are all provided by the companies serving Dallas. Conclusion Following a May over -the -month increase of 74,200 jobs, Total Nonagricultural Wage and Salary Employment reached a new high for the seventh consecutive month by reaching 13,357,100 positions. Since January 2022, 250,800 jobs were added which outperformed all other years in series history. The private sector gained 74,800 jobs, while the Government sector shed 600. Eight of 11 major industries exceeded February 2020 pre-COVID employment levels, including Construction, Manufacturing, and Leisure and Hospitality in May. On an annual basis employment expanded by 762,400 jobs, accelerating to an annual rate of 6.1 percent. Leisure and Hospitality employment surpassed the pre-COVID level for the first time with the contribution of a May over -the -month increase of 27,600 jobs. Professional and Business Services led all major industries in recovery terms as employment moved to 109.1 percent of the pre-COVID job count. Trade, Transportation, and Utilities employment expanded by 11,700 jobs in May, which contributed to a series -high 40,300 positions added since January. The Texas unemployment rate decreased over the month by 0.1 percentage points from 4.3 to 4.2 percent in May. This marked the lowest unemployment rate since the February 2020 pre- COVID level of 3.5 percent. Since May 2021 the Texas unemployment rate decreased by 1.7 22.0317.2 19 TODD PROPERTY ADviSORS REAL PROPERTY ANALYSTS, INC. points from a reading of 5.9 percent. The U.S. rate was unchanged for the third consecutive month at 3.6 in May, but remained at the lowest point since a pre-COVID rate of 3.5 percent. Annually, the U.S. unemployment rate decreased 2.2 percentage points from a May 2021 level of 5.8 percent. The Texas civilian labor force reached new highs in 18 of the last 20 months after reaching a May level of 14,516,100 persons. The over -the- month increase of 56,700 persons marked the seventh largest increase in series history. The employed population increased by 69,100, while the number of unemployed decreased by 12,500. Civilian Labor Force Estimated for Texas and the United States Seasonally Adjusted (In Thousands) TX Labor Force Statistics US Labor Force Statistics Yearly Yearly M -22 A r 22 Ma -21 Change M -22 A r-22 M -21 Chanas Civilian Labor Force 14,516,071 14,459,425 14,194,328 321,743 Civilian Labor Force 164,376,000 164,046,000 160,801,000 3,575,000 Employed 13,907,823 13,838,703 13,353,800 654,023 Employed 158,426,000 158,105,000 151,550,000 6,876,000 Unemployed 608,248 620,722 840,528 -232,280 Unemployed 5,950,000 5,952,000 9,251,000 -3,301,000 ,Unemployment Rate 4.2% 4.3% 5.9% -1.7% Unemployment Rate 3.6% 3.6% 5.8% -2.2% Texas Employment by Industry Seasonally Adjusted (In Thousands) INDUSTRY TITLE Q4 2021 % of Total 032021 % of Total 042020 % of Total Quarterly Yearly Employment Employment Employment Change Change Total Nonagricultural 12.934,458 100.0% 10,214.087 100.0% 12,200,391 100.0% 26.6% 6.0% Total Private 12,470,194 96.4% 9,746,980 95.4% 11,728,298 96.1°% 27.9% 6.3% Goods Producing 1,926,865 14.9% 1,891,784 18.5% 1,848,398 15.2% 1.9% 4.2% Natural Resources and Mining 245,895 1.9% 238.437 2.3% 231,707 1.9% 3.1% 6.1% Construction 786,725 6.1% 774,018 7.6% 756,352 6.2% 1.6% 4.0% Manufacturing 894,245 6.9% 879,329 8.6% 860,339 7.1% 1.7% 3.9% Service Providing 11,007,593 85.1% 8,322.303 81.5% 10,351,993 84.8% 32.3% 6.3% Trade, Transportation, and Utilities 2,772,892 21.4% 265,156 2.6°% 2,644,299 21.7% 945.8% 4.9% Information 223,673 1.7% 217.916 2.1% 203,904 1.7% 2.6% 9.7°% Financial Activities 841,005 6.6% 822,613 8.1% 790,168 6.5% 2.2% 6.4% Professional and Business Services 2,013,926 15.6% 1,936,610 19.0% 1,816,128 14.9% 4.0% 10.9% Education and Health Services 2,985,387 23.1°% 2,880,161 28.2°% 2,895,695 23.7% 3.7% 3.1% Leisure and Hospitality 1,365,709 10.6°% 1,366,068 13.4% 1,214,404 10.0°% 0.0% 12.5% Other Services 340,737 2.6% 366.672 3.6% 315,302 2.6°% -7.1% 8.1°% Public Administration 464,2641 3.6%1 467,1071 4.6%1 472.093 3.9% -0.6% -1.7% As illustrated in the recent statistics, the Dallas -Fort Worth -Arlington Metroplex continues to be one of the fastest growing areas of the United States prior to the COVID-19 pandemic. This trend is expected to continue in the future and through the year 2030, as population is expected to reach 9.1 million. More employers are expected to migrate to D/FW, and therefore provide an increased number of jobs. Dallas/Fort Worth accounts for over 30 percent of the State's gross regional product and is a national leader in the creation of new jobs, corporate relocations, and technology -related businesses. One of the primary factors in maintaining this employment growth is excellent access to the area provided by a well -developed highway system and D/FW International Airport, as well as an extensive rail transportation system. Since the late 1990s, the D/FW economy has shown good signs of growth and stability. Many experts are guardedly optimistic about the current economic outlook as it compares favorably to a softening national 22.0317.2 20 TODD PROPERTY ADvlsoRs REAL PROPERTY ANALYSTS, iNc. economy and the last two years of erratic energy prices. Dallas/Fort Worth is larger today in population than 27 states, and is a major economic, social, and political center of both Texas and the United States. Due to the changing demographics, the regional economy in general, and the continued stability of the local government, expectations for the region's future are optimistic. At the beginning of 2020, the Dallas/Fort Worth region had been impacted positively by a resurgence in the national economy since the Great Recession of 2008. The resurgence appears to have continued into 2022, despite the impact of the COVID-19 pandemic, as the D/FW market in general has gained economic growth and remained attractive for investment opportunities. Given this, indications are that market conditions within this region are moving in a positive direction; however, the forgoing is subject to the COVID-19 statement discussed previously in this report. It remains our contention at this time it is impossible to fully quantify the impact of the COVID-19 pandemic, subsequent lockdowns and economic disruptions on the commercial real estate market. However, it is our opinion that if there were to be a quick rebounding of the local and national economies post COVID-19, it would result in only a minimal loss in value, if any, to the subject, due to the strong Dallas/Fort Worth economy leading into the pandemic. 22.0317.2 21 TODD PROPERTY ADVISORS RE PROPERTY AN ysrrs, INC. CITY/NEIGHBORHOOD ANALYSIS A neighborhood is defined in The Appraisal of Real Estate, Fifteenth Edition, published by the Appraisal Institute, as a group of complementary land uses. 5 Land uses within a neighborhood are not necessarily homogeneous, as in a district, but are related in that property values are affected by the same factors. Neighborhood boundaries identify the physical area that influences the value of a subject property. These boundaries may coincide with observable changes in prevailing land use or occupant characteristics. Physical features such as the type of structures, street patterns, terrain, vegetation, and lot sizes tend to identify land use districts. Transportation arteries, bodies of water, and changing elevation can also be significant boundaries. To identify the neighborhood boundaries, we have followed the following four steps (summarized), as recommended within The Appraisal of Real Estate: 1) Examine the subject property,' 2) Examine the area's physical characteristics, 3) Determine preliminary boundaries on a map, and 4) Determine how well the preliminary boundaries correspond to the demographic data. R $BQPIIfl 4 prvu ® Subject Property 't?Eez: west.'Imr Weston i. s" i Chfl.nersdule 'y VBltlasta tee Moos The following neighborhood description will include a definition of the boundaries of the subject neighborhood, a discussion of the primary thoroughfares, types of improvements along these 5 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 138. 6 Ibid. page 141-142. 22.0317.2 22 TODD PROPERTY ADvisORs REAL PROPERTY ANALYsTs, INC. thoroughfares, the density of development, secondary street infrastructure, and a discussion of the type of commercial uses within the neighborhood. The subject neighborhood, as defined herein, is considered to be the immediate competing trade area for the subject property, taking into account the various types of land uses present or reasonably probable in the neighborhood, patterns and rates of growth, traffic patterns and density, and the density of land use, among other factors considered in the previously suggested steps. All of these factors are considered influential in the determination of the value of the subject. Neighborhood Boundaries The subject site is physically located along the north line of Hackberry Lane, West of Powell Parkway in Anna, Texas. The neighborhood boundaries are defined as follows: North: Collin County Line West US Highway 75 South: State Highway 121 East FM 3133 Location The subject property is located in Anna, Collin County, Texas. The site is heavily influenced by the Dallas/Fort Worth Metroplex. The subject property is located approximately 40 miles northeast of the Dallas Central Business District. Primary north/south roadways within the neighborhood include the following: US Highway 75, Powell Parkway, and Ferguson Parkway. Primary east/west roadways include the following: State Highway 121, Collin County Outer Loop, and FM 455. Population As can be seen in the following charts provided via the Site to do Business, the 2022 population estimate was 39,716. The population has grown at a relatively rapid rate of 8.17 percent annually since 2010. Population between 2022 and 2027 is expected to grow at a relatively rapid rate of 3.01 percent annually. The charts for population and household growth are located below. Poppattbri. 2010 Population 14,622 2020 Population 32.079 2022 Population 39,716 2027 Population 46,062 2010-2020 Annual Prate 8.17% 2020-2022 Annual Prate 9.96% 2022-2027 Annual state 3.01% 2022 Male Population 49.3% 2022 Female Population 50.7% 2022 Median Age 33.4 In the Identified area, the current year population Is 39,716. In 2020, the Census count In the area was 32,079. The rate of change since 2020 was 9.96% annually. The five-year projection for the population In the area is 46,062 representing a change of 3.01% annually from 2022 to 2027. Currently, the population Is 49.3% male and 50.7% female. 22.0317.2 23 TODD PROPERTY ADVISORS REAL PROPEm Afuu. B s, INC. 2010 Households 4,720 2020 Households 9,895 2022 Households 12,253 2027 Households 14,239 2010-2020 Annual Rate 7.68% 2020.2022 Annual Rate 9.97% 2022-2027 Annual Rate 3.05% 2022 Average Household Slze 3.24 The household count in this area has changed from 9,8951n 2020 to 12,253 In the current year, a change of 9.97% annually. The five-year projection of households Is 14,239, a change of 3.05%annually from the current year total. Average household size is currently 3.24, compared to 3.24 in the year 2020. The number of families in the current year is 9,792 in the specified area. 2022-2027 Annual Growth Rate 4.5 4 3.5 c 3 2 no "e 2.5 d 2 6 1.5 1 0.5 U population Households Median Household Income Owner Occupled Housing Units Income According to the Site to do Business, the 2022 median household income within the neighborhood was $103,368, which is above the national average of $72,414. Income is projected to grow at a relatively rapid rate of 3.20% over the next five years. Located below is a chart detailing the median, average and per capita income for the subject neighborhood. 2022 Median Household Income $103,368 2027 Median Household Income $114,564 2022-2027 Annual Rate 2.08% Average Household Income 2022 Average Household Income $124,741 2027 Average Household Income $146,039 2022-2027 Annual Rate 3.20% Per Capita Income 2022 Per Capita Income $38,615 2027 Per Capita Income $45,308 2022-2027 Annual Rate 3.25% Households by Income Current median household income is $103,368 In the area, compared to $72,414 for all U.S. households. Median household Income is projected to be $114,564 in five years, compared to $84,445 for all U.S. households Current average household income is $124,741 in this area, compared to $105,029 for all U.S. households. Average household income is projected to be $146,039 In five years, compared to $122,155 for all U.S. households Current per capita income is $38,615 in the area, compared to the U.S. per capita Income of $40,363. The per capita Income Is projected to be $45,308 in five years, compared to $47,064 for all U.S. households 22.0317.2 24 TODD PROPERTY ADVISORS REAL PROPERTY At ytrrs,INC. Employment According to the Site to do Business, employment was relatively low with an unemployment rate of 2.5%. The main industries within the city include Services and Retail Trade. Approximately 69.8% of residents work in white-collar jobs. Civilian Population 16+ 19,514 Population 16+ Employed 97.5% Population 16+ Unemployment rate 2.5% Population 16-24 Employed 11.1% Population 16-24 Unemployment rate 9.2% Population 25-54 Employed 71.6% Population 25.54 Unemployment rate 1.7% Population 55-64 Employed 15.1% Population 55-64 Unemployment rate 1.7% Population 65+ Employed 2.3% Population 65+ Unemployment rate 0.0% 2022 Employed Population 16+ by Indus" Total 19,022 Agriculture/Mining 1.1% Construction 6.4% Manufacturing 6.8% Wholesale Trade 3.1% Retail Trade 13.7% Transportation/Wlities 6.5% information 2.0% Finance/lnsurarce/Real Estate 10.2% Services 46.1% Public Administration 4.1% 2022 Employed Population 16+ by Occupation Total 19,020 White Collar 69.8% Management/Business/Financial 20.7% Professional 27.2% Sales 9.2% Administrative Support 12.7% Services 11.4% Blue Collar 16.8% Fanning/Forestry/Fishing 0.0% Construction/Extraction 4.4% Installation/Maintenance/Repair 2.4% Production 2.4% 22.0317.2 25 TODD PROPERTY ADvison REAL PROPERTY AMALYSTs, Mc. Conclusion At the beginning of 2020, the neighborhood had been impacted positively by a resurgence in the national economy since the Great Recession of 2008. The resurgence continued throughout 2019 and was anticipated to continue into the near future. The D/FW market in general gained economic growth and remained attractive for investment opportunities. Given this, indications were that market conditions within this neighborhood were moving in a positive direction; however, the forgoing is subject to the COVID-19 statement discussed previously on Page 7. It is our opinion that if there were to be a quick rebounding of the local and national economies post COVID-19, it would result in only a minimal loss in value, if any, to the subject, due to the strong Dallas/Fort Worth economy leading into the pandemic. 22.0317.2 26 SECTION III - FACTUAL DESCRIPTIONS AND ANALYSES TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. SITE DESCRIPTION AND ANALYSIS Site description consists of comprehensive factual data, information on land use restrictions, a legal description, other title and record data, and information on pertinent physical characteristics. Site analysis goes further. It is a careful study of factual data in relation to the market area characteristics that create, enhance, or detract from the utility and marketability of specific land or a given site as compared with other sites that it competes with. 7 Location and Legal Description The subject is physically located along the north line of Hackberry Lane, West of Powell Parkway in Anna, Collin County, Texas. The following is a summarized legal description for the subject site. Being a tract of land situated in the Henry Brantley Survey, Abstract No. 071, City of Anna, Collin County, Texas, and being part of a tract of land, conveyed to Jimmy and Terry Gillard, by deed recorded in Volume 1682, Page 693, Deed Records of Collin County, Texas (D.R.C.C.7). Size and Shape The subject consists of a tract of land totaling 0.500 acres (21,780 square feet). The tract is rectangular in shape. According to the surveys provided by Birkhoff, Hendricks & Carter, LLP (located below), the portions of the site from which property rights will potentially be acquired involve a 0.080 acre (3,488 square foot) right-of-way acquisition and a 0.009 acre (375 square foot) temporary construction easement. 7 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 165. 22.0317.2 28 JIMMY & TERRY GILLARD VOL 1682, PG. 693 0.50 ACRES %. arc OFARIA W. No. 2010100500108 m V'oi I" (J75 S.f) 4NA9VT RNHT-6 0.090 ANff (3,488 SF.) 3/4' I. 1/2- COST. ROW ,WIIED RM AM HENRY BRAN*W BE SURVEY ABSTRACT 071 1. INEARINIDS AIV DtST� OTEI) W M FLAT DESORIFIRAN ARE VISED ON THE TOAS STATE PIAIIE COORDPIATE SYSFEIA NAD-83, � � � 4202. I FIELD WIRVOS ONOIDDED M 03/D2/2=. 3. 1/2' IRS. - 1/2' M ROD SET YELLOW CAP STAMPED 'W' 4. A FIELD NOTE DESCIOPRON OF EMI DATE HHEFO M PANES THIS MITT EXHIBIT "All PAGE 3 OF 3 IRILf 2 uww DO!" MIT% & NELDA W. NO. 2019053DODDINW730 2r lmlNADE E5161T. PROPOSED " 1/2- IRS. PROPOSm RON RUTROICE BEAROID W13'25'W - 451.65'--'N 1/2- IRF.— �jj I I L� SLATER IOLLKAN MIME 1 LOT 7A ITS is, Y S. PG. " PARCEL NO. 2 ST� 1+ CITY OF ANNA, TEXAS JIMMY & TERRY GILLARD PERMANENT RIGHT-OF-WAY ............... 0 40 BIR KI 101F. I ILNDR ICKS & CAWFER. L.L.P. PROI 'SS ONAI. I:N(dN[ I R: I APRIL 1 INCH 40 FEET I DIVIL I nii Nt!� 52�, 1 13PIAS I ii,n N,, 114)111G¢cn,ill, \,I.S 0111 ixioa,. 2022 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTs, INc. Access and Exposure The subject parcel can be accessed from most areas of the Metroplex by traveling north along US 75 and exiting FM 455 towards Powell Parkway. The motorist would then travel north along Powell Parkway and turn west onto Hackberry Lane. The motorist would continue on Hackberry Lane until reaching the subject to the north. Given the subject propertys location, access and exposure to the site is considered to be good. Parcel Map l Ina Anna ISD Sot. N :RY Subject Property Topography The topography of the subject tract has a near level topography. Furthermore, the topography should not limit the use of the property. Environmental Concerns The existence of any hazardous substances or materials was not observed upon the physical inspection of the tract. However, we are not qualified to detect these substances. It should be noted that the opinions of value found within this report are contingent upon the subject property 22.0317.2 30 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. being free of any hazardous wastes deposited thereupon by the present or previous owners/tenants of the sites, which would adversely affect the value of the property. Flood Zone Our analysis of flood plain considerations was conducted through a review of Community -Panel Number 48085C0160J, dated June 2, 2009, as prepared by the Federal Emergency Management Agency (FEMA) National Flood Insurance Program. A copy of the FEMA map for the subject property is located as follows. After careful inspection of the property and analysis of flood plain maps, it appears that none of the subject lies within the 100-year flood plain. National Flood Hazard Layer FIRMette FFEMA Lepnd „_. Zone Ar f�+'"�•i�. m�ee.n'•x»• FLOODWAV • ,i � mwnuwa `a - ytl p �7 �1 nw»ww� NIOYL{ tlOSMY,..Id1Ws•wr. ' Q•LOrveAe CB[xu _—_- ewLu.n.Y.nvw Vivilco,75Mnif W 480130 tinsnsrzo'� 1 FEET .1= AREA OF UINIMPI FLOOOD.WZARD .� �aa•"^+'� 3f 6�`' pp0 ,O * urvw — MYorsrxe�n • LI FLOODWA'� ly •, Y _ Y.ununwu wuowm.wutl. I . M� �S[G'PI.E • • } ��.Mf11rj ��'p � ;-:�: 1 ..� �I �.�yw,...rw.w�....w Yn,OrVnwnlOY,.w.isbNrtl - ^ G2FM 11�\ i YWYegY_�Y,.O,pY,wwnq µ+ � p { t Be7 2FEET•• .i - ,. _ rT { w ' • '-i i yy. � rqW YM. Wre�OYrtl_r„romme ma.wrr�.rrwgmu �.... .•.Yeva��assuw c ear ' , (^�'� � •� w_ I ,rveyr_rtlrrrww_wm.H •rYwaw�s.wrwrrY.... i '1s'4 erwyn.wMr•uww wV . l LIIt.AEI i tl �. I�"I�� i TY=YM•wY.YYb_Y.IYYYVw jTFE6t1E, i . Y_6b,laiYNw~•,•.�Y�_fw�i ue,rs w r®V�.bYr 0 250 500 1,000 1,500 2ppp %_.,�•z �scs n,l.-,.,1. o:aum,�>q_r:aol.naxno.,mx.xm Subject Property Strict attention should be taken to the soils, insofar as preliminary site work preparation and excavation is concerned, as damage may occur to improvements if proper precautions are not undertaken. However, these soil characteristics are very common throughout the region and should not seriously hinder the development potential of the site, provided proper site preparation and planning is undertaken. Based upon the extent of development in the subject neighborhood, 22.0317.2 31 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INc. there is no anticipated difficulty with improvements built upon these subsoil conditions, assuming proper design and workmanship. Surrounding Land Uses The land usage surrounding the subject property primarily consists of residential uses with some commercial uses scattered throughout. Residential uses are located in immediate proximity to the subject in all directions. An aerial photograph depicting the subject in relation to surrounding properties is located as follows. Residential Subject Property Easements According to the surveys provided, it appears that a portion of the subject lies within the prescriptive right-of-way along Hackberry Lane. Aside from the aforementioned, no adverse easements appear to be located on the subject property. We were not furnished, and it is beyond the defined scope of our assignment to obtain title work for the subject property. For purposes of this analysis, we are assuming that only typical utility easements exist and that they would not, and/or have not adversely affected development of the subject property. If this assumption is not correct it could necessitate re -analysis. 22.0317.2 32 TODD PROPERTY ADvisORs REAL PROPERTY ANALYSTS, INc. Utilities and Public Services The subject property appears to have access to all public utilities from the City of Anna. Telephone service is available to the area as well as police and fire protection. Conclusion The subject property is located in the City of Anna in Collin County. The site is comprised of 0.500 acres (21,780 square feet), is rectangular in shape, and has access to all public utilities. The site has good access/exposure characteristics for a residential -oriented property. The topography of the subject tract is near level and should not limit the use of the property. Additionally, the subject does not appear to be adversely affected by the presence of flood plain. However, a portion of the subject does appear to lie within the prescriptive right-of-way along Hackberry Lane. Soil and subsoil conditions are not anticipated to severely restrict the development potential of the site. 22.0317.2 33 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. ZONING AND LAND USE RESTRICTIONS The subject tract is within the corporate limits of the City of Anna. The tract is currently zoned SF- 1, Single Family Residential District. According to the Anna Code of Ordinances, the SF-1, Single Family Residential District is "designed to accommodate the standard single-family residential development. The district can be appropriately located in proximity to multifamily residential areas and certain neighborhood local retail and office uses". This zoning district allows for single family residential uses. There are no other known deed restrictions, either public or private, that would further limit the utilization of the subject property. This statement should not be taken as a guarantee or warranty that no such restrictions exist. Deed and title examinations by a competent attorney on the property appraised is recommended if any questions regarding such restrictions should arise. Deed restrictions are matters legal in character within the State of Texas, and only title examination by a qualified attorney can result in an informed opinion. Should there be a question regarding the compliance with any existing deed restrictions, we recommend a title examination by a licensed and qualified title attorney to the extent assurances to this matter are desired. A copy of the City of Anna zoning map as well as zoning requirements for the subject can be found following this paragraph. Zoning Map i 510 506 404 320 �7 n"i�, u 322 323 322 313 Subject Property 22.0317.2 34 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. AG SF-E SF-20.0 SF-14.5 SF-12.0 SF-10.5 SF-84 SF-72 SFA SF-60 SF-2 Maximum 35 35 35 35 35 35 35 35 35 35 35 height (feet) Side yard, 15 15 10 (a) 9 (a) 8 (e) 8 (a) 10 (c) (c) (c) (c) interior (feet) Side yard, 25 25 15 15 15 15 15 15 15 15 15 corner lot, street side (feet) Rear yard (feet) 25 25 25 25 25 25 25 25 25 25 25 (d) Front yard (feet) 35 25 30 30 30 25 25 25 25 25 25 Lot area (feet) 43,560 43,560 20,000 14,500 12,000 10,500 8,400 7,200 7,200 6,000 6,000 Min. lot width 75 75 100 90 80 80 70 60 60 50 50 (feet) Min. lot depth 120 120 150 135 130 120 120 120 120 120 120 (feel) Max. lot 40% 40% 35% 35% 40% 40% 35% 40% 40% 45% 45% coverage (%) Building size 2400 2400 2500 2200 2200 2200 2000 1800 1800 1600 1600 (square feet) Masonry (%) 80% 80% 80% 80% 80% 80% 80% 80% 0% 80% 80% 22.0317.2 35 TODD PROPERTY ADVISORS REAL PROPERTY ANALYST$, INC. TAX ANALYSIS The Texas legislature has provided for a unified system of taxation for the assessment and collection of real property taxes. In each county an appraisal district is established for the purpose of listing and assessing all real estate within the county. Real property is presumably assessed at 100 percent of market value. Once the taxable value of the property is established by the appraisal district, each of the individual taxing authorities within the county set their own tax rates. The subject property is assessed by the Collin CAD. The following table depicts the taxing jurisdictions and historical property tax rates pertaining to the subject property: Collin County Tax Rates Tax Authority 2017 2018 2019 2020 2021 Compound Rate of Change 2017-2021 Collin County $0.1922460 $0.1807850 $0.1749510 $0.1725310 $0.1680870 -3.30% City of Anna 0.6012880 0.5912880 0.5912880 0.6830000 0.5695000 -1.35% Anna ISD 1.6700000 1.6700000 1.5683500 1A746000 1A603000 -3.30% Collin County Community .College 0.0798100 0.0812220 0.0812220 0.0812220 0.0812220 0.44% Total Tax Rate $2.50344 $2.523295 $2.415811 $2.311353 $2279109 •2.71% As the above table indicates, the overall tax rate for property located within this portion of Collin County have been decreasing by 2.71 percent per year during the five year period. Tax rates are anticipated to remain relatively flat in subsequent years. The subject account number and 2022 assessed value are as follows: Tax Summary Tax Authority Tax Rate Per$100 Assessed Value Homestead Cap Loss Taxable Value Estimated Taxes Collin County $0.168087 $146.118 $54,723 $93,395 $157 City of Anna $0.569500 $148,118 $54,723 $93,395 $532 Anna ISD $1.460300 $148,118 $54.723 $93,395 $1,364 Collin County Community College $0.081222 $148,118 $54,723 $93,395 $76 Total Taxes: $2,129 The subject has a 2022 assessed value of $148,118. However, the subject currently has a homestead exemption in place. Upon deducting the subject's homestead exemption, a taxable value of $93,395 results. This equates to a tax expense of $2,129 based upon the 2021 tax rate of $2.279109/$100 of assessed value. The land portion of the subject appears to be reasonably assessed. 22.0317.2 36 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. SUBJECT PROPERTY PHOTOGRAPHS Exterior view of the subject's main improvements Viewing east across the proposed acquisition area 22.0317.2 37 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. SUBJECT PROPERTY PHOTOGRAPHS Viewing west across the proposed acquisition area Viewing east down Hackberry Lane from subject 22.0317.2 38 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. Viewing west down Hackberry Lane from subject 22.0317.2 39 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. HIGHEST AND BEST USE ANALYSIS The economic principles which affect the market value of real property also play a significant role in forming the property's highest and best use. In all valuation assignments, value opinions are based upon use. The highest and best use of a property provides the foundation for a thorough investigation of the competitive positions of market participants. Consequently, highest and best use can be described as the foundation upon which market value rests. The highest and best use of a property.is defined as follows: The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, rinancial feasibility, and maximum productivity. S With regard to vacant land, the highest and best use is generally regarded as that use among all reasonable, alternative uses, which yields the highest present land value, after payments are made for labor, capital, and coordination. It is to be recognized that in cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. Analysis of the highest and the best use of a property as improved implies that the existing improvement should be renovated or retained as is so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one. Furthermore, the existing use will continue, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. Implied within this definition is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization of individual property owners. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of most probable selling price (market value) another appropriate term to reflect highest and best use would be most probable use. The most probable use is defined as follows: 1 } The use to which a property will most likely be put based on market analysis and the highest and best use conclusion. The most probable use is the basis for the most probable selling price of the property 2) Highest and best use in the context of market value. 9 8 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 109. 9 Ibid. page 152. 22.0317.2 40 TODD PROPERTY ADvisORs REAL PROPERTY ANALYSTS, INC. To test for the most feasible or the highest and best use for land as vacant all logical and feasible alternatives must be analyzed. All alternative uses must meet four criteria. The criteria are as follows: 1) The legal use of the site — what uses of the site are permitted under applicable zoning ordinances and other legal restrictions. 2) The physical use of the site — what potential uses of the site are physically possible. 3) The feasible use of the site — what possible and legally permissible use of the site will produce a positive return. 4) The maximum productive use of the site — among the highest financially feasible uses, the use that provides the highest rate of return, or value (given a constant rate of return), is the highest and best use. While some investors/developers seek to maximize their returns, most seem to operate on the belief that the available information is too imperfect to permit optimization or maximization. It appears that the typical investor is satisfied if their investment can be expected to return a yield that will meet their standards. Thus, it is possible for more than one single use to be feasible for a site if the uses meet an investment criteria of the typical investor/developer for a property. Generally accepted professional appraisal practice dictates that in appraising improved property, the highest and best use be estimated under two different premises. First, the highest and best use of the site "as vacant and available" must be estimated. The second analysis estimates the highest and best use of the property "as improved or proposed to be improved." Highest and Best Use of the Site As If Vacant The first question to be answered, What uses are legally permissible? requires a review of the zoning restrictions applicable to the site. As indicated in the Zoning and Land Use Restrictions section of this report, the tract is currently zoned SF-1, Single Family Residential District. According to the Anna Code of Ordinances, the SF-1, Single Family Residential District is "designed to accommodate the standard single-family residential development. The district can be appropriately located in proximity to multifamily residential areas and certain neighborhood local retail and office uses". This zoning district allows for single family residential uses. Addressing the second question, What uses of the site are physically possible? requires a review of the physical characteristics of the site. The subject tract is rectangular in shape and is physically located along the north line of Hackberry Lane, West of Powell Parkway in Anna, Texas. The subject property consists of 0.500 acres. The size of a parcel of land is important in terms of feasible development alternatives, and, ultimately, the value of the land. Optimal size is that which allows the highest marginal returns on investment after development. A tract of land which is too large is worth more in subdivided parcels whereas a tract which is too small for development is worth more when combined with contiguous sites. A less than optimally sized small tract may be 22.0317.2 41 TODD PROPERTY ADVISORS REAL PROPERTY ANALYST,, INC. further constrained if contiguous tracts are currently developed to their highest and best use. In such a case, assemblage may not be a viable alternative. The immediate surrounding area is predominantly residential uses. This 0.500 acre site would be physically feasible to develop due to its shape and size. The site is generally level which is beneficial for most urban types of development. Additionally, none of the subject appears to lie within the flood plain. A portion of the subject does appear to lie within the prescriptive right-of-way along Hackberry Lane. Furthermore, the topography of the site does not significantly limit its use. Therefore, residential development is a physically possible use for the subject. Answering the third and fourth questions, What uses are rrnancially feasible? and What uses are maximally productive? requires an analysis of potential income based on demand that could be expected from all physically possible and legally permissible uses. Upon inspection of the surrounding neighborhood, the current land sales within the subject neighborhood have been acquired for either speculative investments or residential development. Given the subject's location along a primarily residential thoroughfare, a residential -oriented use appears to be the most likely potential use of the site. Therefore, the highest and best use of the site, as if vacant, is for residential use. Highest and Best Use, as Improved The preceding analysis is for the subject site, as if vacant. This section treats the highest and best use of the property as improved. The site is improved with a single-family residence and site improvements. Therefore, considering the highest and best use, as vacant, the improvements do contribute to property value above and beyond the value of the underlying land. Furthermore, an alternative use of the property would likely not result in a higher value than the current use as a single family residence. Therefore, the continued operation of the existing residence results in the highest overall value considering the alternatives. In our opinion, the highest and best use of the site, as improved, is for continued use of the current residential improvements. The proposed acquisitions do damage the improvements as setback requirements will not be met from the new right-of-way. Additionally, the proposed right-of-way acquisition and temporary construction easement appears to encroach upon the improved portion of the subject. Thus, the highest and best use after the proposed acquisition is to raze the existing residence for redevelopment of the site with a residential use as demand warrants. 22.0317.2 42 TODD PROPERTY ADVISORS REAL. PROPERTY ANALYSTS, INC. THE APPRAISAL PROCESS The appraisal process represents a logical analysis of the factors that bear upon the present value of real estate. In this process, three basic approaches are typically used by appraisers: 1) the Cost Approach, 2) the Income Capitalization Approach, and 3) the Sales Comparison Approach. The Cost Approach is based upon the proposition that an informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the subject. First, the subject's site is valued (as if vacant) by comparing it to the sale of similar sites using the Direct Sales Comparison Approach. The reproduction cost new is then estimated for the subject improvements, and from this, an amount is deducted for depreciation from all causes to arrive at a value via the Cost Approach. The Sales Comparison Approach is based upon the proposition that an informed purchaser would pay no more for a property than the cost to him of acquiring a similar property with the same utility. In this approach, similar properties that have recently sold are compared to the subject. Notable differences in the utilized comparables are adjusted to the subject in the process. Comparisons are made and are typically based upon the terms of sale, age, location, size, financing, and physical characteristics. The adjustments are abstracted from and/or otherwise supported to represent the actions of buyers and sellers in the market. The value range that is indicated by the adjusted comparable sales is correlated or reconciled into a final value opinion via this approach. The Income Capitalization Approach is the process in which the anticipated flow of future benefits (dollar income or amenities) is discounted to a present worth figure through a capitalization or direct discount procedure. All expenses attributable to the real estate are deducted from an effective gross income estimate to arrive at forecasts of applicable net income streams. The net income streams are then "capitalized" or discounted into value by market abstracted rates. The purpose of ownership is to generate income and provide to the owner a sufficient return on his/her investment to make the purchase of such a property attractive. The subject property consists of 0.500 acres of land improved with a single family residence and other site improvements. Therefore, we have provided a value of the site via the Sales Comparison Approach utilizing comparable land sales. 22.0317.2 43 SECTION IV -- LAND VALUATION TODD PROPERTY ADvisoRs REAL PROPERTY ANALYsTs, INC. LAND VALUATION "Sales comparison is usually the preferred methodology for developing an opinion of site value. When this method is used, most of the techniques for selecting comparable sales and making adjustments that are described in Chapter 20 [of The Appraisal of Real Estate, Fifteenth Edition] can be applied to site valuation. When there are not enough sales of similar parcels for the application of sales comparison, alternative methods such as market extraction, allocation, land residual analysis, and various income capitalization techniques may be used."10 All of these land valuation procedures, which are summarized below, are derived from the three traditional approaches to value. — Sales Comparison — Sales of similar, vacant parcels are analyzed, compared, and adjusted to provide a value indication for the land being appraised. — Market Extraction —An estimate of the contributory value of improvements is deducted from the total sale price of a property to arrive at an indicated land value for the comparable. The indicated land values of the comparables are then compared to provide a value indication for the land being appraised. — Allocation —A ratio of site value to property value is extracted from comparable sales in competitive locations and applied to the value of the improved subject property or comparable properties to develop the site value. — Direct Capitalization: Land Residual Analysis — The net operating income attributable to the land is capitalized or the cost to construct an improvement is deducted from the value as if completed to produce an indication of the land's contribution to the total property. — Direct Capitalization: Ground Rent Capitalization —A market -derived capitalization rate is applied to the ground rent of the subject property. — Yield Capitalization: Discounted Cash Flow Analysis -Subdivision Development Analysis — Direct and indirect costs and entrepreneurial incentive are deducted from an estimate of the anticipated gross sales price of the finished lots or units, and the net sales proceeds are discounted to present value at a market -derived rate over the development and absorption period. If entrepreneurial incentive is not deducted as a line -item expense, then the discount rate must reflect the full effect of any profit. When sufficient market data is available, the best method of site valuation is the Sales Comparison Approach. This method calls for comparison weighing and relating sales data to the site being appraised. The data can be analyzed and the indications of adjustments for time, location, physical utility and conditions of sale, can then be applied so as to result in a meaningful value opinion for the subject site. For a sale to be truly comparable, the highest and best use of the comparable land should be the same or similar to the appraised site. This is the method of site valuation, which will be utilized in this report. 10 The Appraisal Institute, The Angraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, pages 339. 22.0317.2 45 TODD PROPERTY ADVISORS REAL PROPENTy ANAL-"m, INC. COMPARABLE LAND SALES PRESENTATION The subject market was searched for sales of tracts of land most comparable to the subject. After sales were selected for more analysis, the public records were researched and verification of the details of the sales was obtained from parties knowledgeable concerning the sales. We then analyzed the specific differences and made appropriate adjustments, abstracting these adjustments from the market whenever possible. The final reconciliation of these adjusted sales indicated a value of the subject property. A map depicting the location of the sales in comparison to the subject property is located below. Anna Hlgn SO.N9 vSlaycer Creek Park L 4 ¢ Anna MlddleS 66.1© YS 0tr _ F r3 iY ER at Ann,9 Anna OO S Y i4 Wmal ® B f SVrings Park L- m d' 8 ® -T — J3. n Map Comparable Summary Map # Date Size of Sale (Acres) Sales Price/SF 1 5/13/21 0.955 $2.16 2 5/4/21 0.657 $2.10 3 7/24/20 1.132 $1.72 4 12/13/19 0.331 $2.36 © 0.500 Subject 22.0317.2 46 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. COMPARABLE LAND SALE NUMBER 1 WERTY IDENTIFICATION Location (Physical): SWC Butler St & Powell Pkwy Anna, TX ..r . I Legal Description: Lot 28, Block C, Tara Farms Addition: - AA NSACTION DATA Grantor: Thomas & Rebecca Boling Grantee: Victor Zacarias Date of Sale: May 13, 2021 Sales Price: $90.000 Recording Information: Doc #20210514000977480 Participant's Sale Terms: Cash to Seller Property Rights Conveyed: Fee Simple Estate Cash Equivalent Price: $90.000 Conditions of Sale: Arm's Length Transaction Intended Use: Residential 'SICAL CHARACTERISTICS Road Frontage: Configuration: Flood Plain: Topography: Zoning: Contact Person: Position: Butler Street & Powell Parkway Size of the Tract: Near Triangular 0 % Improvements: Level Utilities: PD-R, Planned Development Residential UNITS OF COMPARISON Actual Sales Price Per Sq. Ft.: Cash Equivalent Price Per Sq. Ft.: Lisa Biddle Listing Agent 0.955 acres 41,595 square feet None All Available $2.16 $2.16 Telephone Number: 972-333-0301 is located at the southwest corner of Butler Street and Powell Parkway in Anna, Texas. The property reportedly sold for 2.16 per square foot. 22.0317.2 47 'ROPERTY IDENTIFICATION Location (Physical): W Lim Riggins St, S of White St Anna, TX Legal Description: Lot 7, Cunningham Estates Addition TRANSACTION DATA Grantor: Tommy Cunningham Grantee: Arturo Garcia Date of Sale: May 4, 2021 Recording Information: Doc #20210506000918250 Property Rights Conveyed: Fee Simple Estate Conditions of Sale: Arm's Length Transaction TODD PROPERTY ADVISORS REAL PROPERTY ANALysrs, INC. r 7 a m : V Sales Price: $60,000 Participant's Sale Terms: Cash to Seller Cash Equivalent Price: $60,000 Intended Use: Residential 1HYSICAL CHARACTERISTICS Road Frontage: Riggins Street Size of the Tract: 0.657 acres Configuration: Rectangular 28,619 square feet Flood Plain: OM Improvements: None Topography: Level Utilities: All Available Zoning: SF1, Single Family Residential Contact Person: Position: UNITS OF COMPARISON Actual Sales Price Per Sq. FL: Cash Equivalent Price Per Sq. Ft.: Sandra Prieto Listing Agent $2.10 $2.10 Telephone Number: 214-2744699 erty is located along the west fine of Riggins Street, south of White Street in Anna, Teas. The property reportedly sold for or $2.10 per square foot. 22.0317.2 48 TODD PROPERTY ADVISORS REAL PROPERTY ANALYsrs, INC. 'ROPERTY IDENTIFICATION Location (Physical): S Line Taylor Blvd, W of Quanl Creek Rn Anna, TX Legal Description: Lot 2, Block A, Quail Creek Run Place Addition TRANSACTION DATA Grantor: Kurtis & Amanda Clifton Grantee: David Aguilera & Brisa Covarrublas lip j - Date of Sale: July 24, 2020 Sales Price: $84,900 Recording Information: Doc #20200724001169660 Participant's Sale Terms: Cash to Seller Property Rights Conveyed: Fee Simple Estate Cash Equivalent Price: $84,900 Conditions of Sale: Ards Length Transaction Intended Use: Residential 2HYSICAL CHARACTERISTICS Road Frontage: Taylor Boulevard Size of the Tract: 1.132 acres Configuration: Rectangular 49,310 square feet Flood Plain: 0% Improvements: None Topography: Level Utilities: Electric 8 Water Zoning: Unzoned UNITS OF COMPARISON Actual Sales Price Per Sq. Ft.: $1.72 Cash Equivalent Price Per Sq. Ft.: $1.72 Contact Person: Steve Depriest Position: Listing Agent Telephone Number: 972-948-3122 We property is located along the south line of Taylor Boulevard, west of Quail Creek Run in Anna, Terms. The property reportedly sold for �84,900, or $1.72 per square foot. 22.0317.2 49 PROPERTY IDENTIFICATION Location (Physical): Legal Description: COMPARABLE N Line 8th St, E of Easton Or Anna, TX Gwynn Morrison Survey, Abstract No. 559 TODD PROPERTY ADVISORS REALPROPERTYANAL ,INC. NSACTION DATA Grantor: Dennis & Theresa Murphy Grantee: Scott Krcher & Paula Barnett Date of Sale: December 13, 2019 Sales Prim: $34,000 Recording Information: Doc #20191216001597030 Participant's Sale Terns: Cash to Seller Property Rights Conveyed: Fee Simple Estate Cash Equivalent Price: $34,000 Conditions of Sale: Arms Length Transaction Intended Use: Residential SICAL CHARACTERISTICS Road Frontage: Configuration: Flood Plain: Topography: Zoning: Contact Person: Position: 8th Street & Easton Drive Size of the Tract: 0.331 acres Rectangular 14,418 square feet 0% Improvements: None Level Utilities: All Available SF1, Single Family Residential UNITS OF COMPARISON Actual Sales Prim Per Sq. FL: $2.36 Cash Equivalent Pdce Per Sq. FL: $2.36 Peggy Robinson Telephone Number: 972-65BA855 Listing Agent Tis property is located along the north line of 8th Street, just east of Easton Drive in Anne, Texas. The property reportedly sold for $34,000. it $2.36 per square foot. 22.0317.2 50 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. LAND SALES ANALYSIS The process of comparing similar market sales to the subject property is fundamental to the sales comparison approach, and usually provides the most credible and reliable indication of value. If a comparable property has an element of comparison that is superior to the subject property, a downward adjustment is made to the comparable sale. If the element of comparison is inferior, then an upward adjustment is made. The adjustment process is not an exact science. Experience, knowledge and objectivity are required on the part of the appraiser for the application of the appropriate level of adjustment. Competent analysis leads us to a narrow range of variance among the adjusted comparable sales, and to a high degree of confidence in reconciliation. The analyses of the adjustments we considered relevant are found in the following paragraphs. Summary of Comparable Sales Sales Sale L .Uon Data Site Flood PH. No. (Physical) of Sale Aces Utilities Zaalng T.Ponvaphy Plain PSF Intended Use 1 SWC BWer St a Powell P" 5flW1 0.05 Nl Available PD , Planned Devebpnnent Residential Level 0% $2.16 Rasld.ndal Anne, TX 2 W Une Rigglns St. S of White St WH l 0. 5 At Available SFi. Single Fanity Residential Level 0% $2.10 ResideMal Anna, TX 3 S Lire Taybr BW, W of Ouanl Creek Re MIM 1.132 BeNic&Water Uwned Level 0% $1.72 Residential Anne, TX 4 N Line eth St E of Easton Dr 1VIN19 0.331 Al Available SF1, Single Fanity Residential Level 0% S2.35 Residential Mna, TX Subject N tdna Haakbwell any Ln. W of PoP" - 0.500 All Available SFt, Single Family Residential Level Mna TX Financina Terms All of the comparable land sales were consummated with the sellers effectively receiving cash in exchange for their consideration in the property; therefore, no adjustments were required for advantageous seller financing. Property Rights Conveyed This adjustment involves the type of real property interest that is conveyed in a sales transaction. All of the comparable transactions conveyed fee simple ownership rights; thus, no adjustments were required for this factor. Conditions of Sale Adjustments for this item usually reflect the motivation of the buyer and seller involved with a transaction. Adjustments would be necessary for transactions where the seller wants to quickly liquidate his assets or where there is an atypical financial, business, friend or family relationship between the principals involved which affect the selling price of the property. All of the Comparables had similar conditions of sale to that of the subject and will not be adjusted. 22.0317.2 51 TODD PROPERTY Ao%gsORs REAL PROPERTY ANALYSTS, INC. Expenditures After Sale This adjustment accounts for any expenses the purchaser of the property occurs immediately after the purchase of the property. Some examples of these items could include environmental clean-up, demolition costs, deferred maintenance, HVAC replacement/repair, renovations, parking lot repair/replacement, cosmetic upgrades, etc... Adjustments for this item usually reflect the motivation of the buyer and seller involved with a transaction. Adjustments would be necessary for transactions where the buyer is aware that such expenditures after the sale must occur in order to operate the property sufficiently. Any necessary adjustments for Expenditures After Sale have been made within the individual Comparable write-ups. Therefore, no further adjustments are necessary. Market Conditions This adjustment is generally made after the other transactional adjustments have been made (property rights conveyed, financing, conditions of sale, and expenditures after sale). This adjustment addresses potentially differing market conditions between the subject property (date of appraisal), and the sales dates of the Comparables. As a test, the sales adjusted prices when compared to the subject were chronologically arrayed by sale date and only adjusted for the appropriate physical conditions in order to determine if adjustments for changing market conditions is warranted. The table below depicts the Price/Sq. Ft. for each comparable which has been adjusted for the other transactional adjustments (property rights conveyed, financing, conditions of sale, and expenditures after sale). The % Physical Adjustment column indicates the total adjustments made for all physical characteristics (location, size, corner, utilities, topography zoning, flood plain, etc.) as shown in the adjustment grid at the conclusion of this section of the report. The Adjusted Price/Sq. R. is calculated by applying the % Physical Adjustment for each sale to its Price/Sq. R. By analyzing the comparable sales adjusted prices per square foot after all other adjustments have been made, trends in land prices over the time period may become apparent. However, given the small sample size, the appraisers' judgment is also relied upon based upon knowledge gained from experience in the market over this time period. 22.0317.2 52 TODD PROPERTY ADVISORS Rau PRovaary ARa.vsrs, tac. Market Conditions Comparison Comparable Number Date of Sale Unadjusted Price/Sq. Ft.* Physical % Adjustment Adjusted Price/Sq. Ft. Comparable 1 May 13, 2021 $2.16 5% $2.27 Comparable 2 May 4, 2021 $2.10 2% $2.14 Comparable 3 July 24, 2020 $1.72 16% $2.00 Comparable 4 December 13, 2019 $2.36 -3% Inclusive of any necessary transactional adjustments In closely analyzing the market Comparables, there appears to be an upward trend in sales prices. Additionally, market participants indicate that market conditions have been improving for this property type. Therefore, each Comparable will be adjusted upwards by 5 percent per year. This is subject to the COVID-19 statement discussed previously in this report. Therefore, in our opinion, the market conditions adjustments are considered reasonable. Location/Access The axiom that"location is the most important physical characteristic of real estate" suggests that this component warrants paramount consideration in the adjustment process. Therefore, the locations of the Comparables are the first of the physical characteristics to be considered. The sales researched and included herein involve properties with similar highest and best uses as that of the subject. The subject property is physically located along the north line of Hackberry Lane, West of Powell Parkway in Anna, Texas. All of the Comparables are located in similar areas of development and along similar residential roadways as the subject. Therefore, no adjustments will be made. Size The subject has a total land size of 0.500 acres. Typically, smaller tracts sell for more per unit than larger sites. In reviewing market trends and the data set, the market appears to recognize a difference in price for tracts substantially different in size. A market observation witnessed throughout the Texas market area and most metropolitan adjustment of 5 to 15 percent for each halving/doubling adjustment for each halving/doubling in size will be utilized. areas in the southwest supports an in size. In this instance a 5 percent 22.0317.2 53 TODD PROPERTY ADVISORS REAL PROPERTY AN ysrs,INC. Indicated Size Adjustments with a 5% Adjustment per Doubling / Halving Variance of Comp Indicated Adjustment from Subject Range 0% - 25% 0.00% - 1.25% 25% - 50% 1.25% - 2.50% rn 50% - 100% 2.50% - 5.00% 100% - 200% 5.00% - 7.50% 200% - 300% 7.50% - 10.00% 300% - 500% 10.00% - 12.50% 0% - 25% 0.00% - -2.50% 25% - 50% -2.50% - -5.00% m 50% - 75% -5.00% - -10.00% rn 75% - more than -10.00% - or more The following table illustrates the size adjustments based upon a market derived 5 percent adjustment per each doubling/halving in size for the land market in the vicinity. Adjustment for Size Comparable Number Comparable Size (Acres) Subject Size (Acres) % Difference In Size Adj. Per Halving/Doubling Indicated Adjustment Comparable 1 0.955 0.500 91% 5% 5% Comparable 2 0.657 0.500 31 % 5% 2% Comparable 3 1.132 0.500 126% 5% 6% Comparable 4 0.331 0.500 -34% 5% -3% Corner A tract of land with corner influence can, in many cases, command a higher price per unit than a tract without corner influence. Corner influence typically becomes a more significant factor on price with retail and commercial properties situated along two primary thoroughfares in significantly developed urban areas. Given that the subject and the Comparables are located along secondary residential thoroughfares, benefit from comer influence is considered minimal. Therefore, no adjustments will be made. Utilities The next consideration is for the location and adequacy of utilities. The subject currently has access to all public utilities. Comparables 1, 2, and 4 have access to public utilities like the subject and will not be adjusted. Comparable 3 has access to electric and water utilities only and will be adjusted upward 10 percent. 22.0317.2 54 TODD PROPERTY ADvisORs REAL PROPERTY ANALYSTS, INC. Topography This adjustment takes into consideration the topography (terrain) of the subject property and how developable the site is. The subject has a near level topography. All of the Comparables have similar topographical considerations and no adjustments will be made. Zoninq The zoning classification a property possesses dictates the legally permissible uses that a site can be developed with, and hence, has a major influence on the value of a property. The subject site is currently zoned SF-1, Single Family Residential District. All of the Comparables have similar zoning restrictions compared to the subject, allowing similar developments and will not be adjusted. Flood Plain The next consideration is for the adverse influence of a tract being situated within the 100 or 500 year flood plain. The subject tract and all of the Comparables are located outside of the flood plain and will not be adjusted. 22.0317.2 55 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. CONCLUSION OF LAND VALUE Located below is an adjustment grid for the subject tract, followed by the range, mean (average), and standard deviation of the adjusted sales prices per square foot. Adjustment Grid for Comparable Sales Sale Number 1 2 3 4 Sales Price/SF $2.16 $2.10 $1.72 $2.36 Financing Terms 0.00 0.00 0.00 0.00 Property Rights Conveyed 0.00 0.00 0.00 0.00 Conditions of Sale 0.00 0.00 0.00 0.00 Expenditures After Sale 0.00 0.00 0.00 0.00 Market Conditions 0.13 0.13 0.17 0.31 Conditions Adj. Price/SF $2.29 $2.23 $1.89 $2.67 Location 0% 0% 0% 0% Size 5% 2% 6% -3% Corner 0% 0% 0% 0% Utilities 0% 0% 10% 0% Topography 0% 0% 0% 0% Zoning 0% 0% 0% 0% Flood Plain 0% 0% 0% 0% Total Adjustment 5% 2% 16% -3% Adjusted Price/SF $2.40 $2.27 $2.19 $2.59 $/SF Range Mean (Average) Standard Deviation Data Without All Data High and Low Extremes $2.19 - $2.59 $2.27 - $2.40 $2.36 $2.34 $0.17 $0.09 Data with Absolute Adjustments < 5% $2.27 - $2.59 $2.42 $0.16 22.0317.2 56 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. All of the Comparables had a mean of $2.36 per square foot, while the mean of data without high and low extremes is $2.34 per square foot, and the data with the least absolute adjustments (<= 5%) had a mean of $2.42 per square foot. Comparable 2 is the least adjusted Comparable and has an adjusted sales price of $2.27 per square foot. Therefore, considering the foregoing analysis and giving emphasis to the Comparable 2, a market value opinion of $2.25 per square foot is considered to be reasonable for the subject tract. However, as mentioned previously, a portion of the subject lies within the existing prescriptive right-of-way. According to survey provided by the client (located in the Addendum Section), approximately 1,947 square feet of the subject lies within the prescriptive right-of-way. The Easement Valuation Matrix located as follows provides a guide for allocating value of the fee simple interest between the easement estate (dominant estate) and the landowner's estate (servient estate). This exhibit was provided by an article entitled "Valuation of Easements" by Donald Sherwood, SR/WA, published in the November/December 2014 edition of Right of Way Magazine. Easement Valuation Matrix 90%-100% Severe impact on surface the Overhead elleotrx, flawege easements, Comvyance or future uses railroad right of way, initiation cana$ exclusive aeteaa eWtTrenh 79%,99% Wt or imyact on sueface use Overhead e9ectric, pipelinet drainage Cotweyanm or future race e-rnents, railroad right orway, flowage easements 91%,-74% So- impact on wrfare use npeCm % scenic easements Conteyance or irgremtegress rights 90% Balanced use by both ~m and Water of ewer lines, came Gres, ame:nent holder lelecosnmunicafiam 26*6-0% Locution along a property line Water or sewer lint, cable fetes location ors non -usable land area 11%-29% subsurface at Ali lights With tMimat Air rights, water or sewer line effect an we and utility location Withal dusk 0%- w0% Nominal effect on use and utft Small sUbsurr.. easement This easement is assumed to permit ingress/egress by the property owner; however, the owner would not be permitted to construct any improvements within the easement area. The easement is not located across a non -usable area of the tract, and the use rights of the easement tract are considered to be almost entirely weighted towards the easement holder. Therefore, the prescriptive right-of-way is considered to comprise 95 percent of the fee simple value of the encumbered land, leaving 5 percent of its fee simple value for the subject. Thus, the "as is" market 22.0317.2 57 TODD PROPERTY A DvisORs REAL PROPERTY ANALYSTS, INC. value opinion for the subject property, land only, as of the effective date of the appraisal is calculated below: Outside Prescriptive ROW: 19,833 square feet x $2.25 per square foot = $44,624 Inside Prescriptive ROW: 1,947 square feet x $2.25 per square foot x 5% = $219 Total: 21,780 square feet = $44,843 Therefore, the market value of the whole property, including the contributory value of the improvements (calculated in the damages section), was $134,843 ($90,000 + $44,843). 22.0317.2 58 SECTION V - VALUATION CONCLUSION FINAL OPINION OF VALUE VALUE OF THE WHOLE PROPERTY TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. The subject property consists of 0.500 acres (21,780 square feet) of land improved with a single family residence and other site improvements. The market value of the whole property, before the proposed acquisitions as of the effective date of appraisal (July 21, 2022) was: "As Is" Market Value ($134,843) VALUE OF THE PARTS TO BE ACQUIRED The portions of the site from which property rights will potentially be acquired involve a 0.080 acre (3,488 square foot) right-of-way acquisition and a 0.009 acre (375 square foot) temporary construction easement. As mentioned previously, according to survey provided by the client (located in the Addendum Section), approximately 1,947 square feet of the subject lies within the prescriptive right-of-way. Therefore, approximately 1,541 square feet of the proposed right-of-way acquisition is located outside of the prescriptive right-of-way. Additionally, the prescriptive right-of-way is considered to comprise 95 percent of the fee simple value of the encumbered land, leaving 5 percent of its fee simple value for the subject. Value of Proposed Right-of-way Acquisition: The portion of the property proposed to be acquired for a right-of-way involves 0.080 acres (3,488 square feet). The portion of the site to be acquired is considered to have the same value per square foot as the remainder of the subject tract. Therefore, applying the per square foot value of the whole subject tract to the part to be acquired results in a value of the part to be acquired for a street right of way calculated as follows: Outside Prescriptive ROW: 1,541 square feet x $2.25 per square foot = $3,467 Inside Prescriptive ROW: 1,947 square feet x $2.25 per square foot x 5% = $219 Total: 3,488 square feet = $3,686 Value of Proposed Temporary Construction Easement: In addition to the proposed easements, the City of Anna also intends to acquire a temporary construction easement on the subject property consisting of 0.009 acres (375 square feet). According to the client, the construction period is estimated to be twelve months. Therefore, the recommended compensation for the temporary construction easements will be calculated by applying an appropriate land capitalization rate to the fee simple value of temporary construction 22.0317.2 60 TODD PROPERTY ADvisORs REAL PROPERTY ANALYSTS, INC. easements, which results in an annual rental rate. The value of the temporary construction easements is calculated as follows: 375 square feet (0.009 acres) x $2.25/square foot = $844 The appropriate overall rate for land will be derived from the 1st Quarter 2022 Investor Survey performed by RealtyRates.com. The following table taken from this survey indicates land lease capitalization rates. 0- Apartments - 2.04% Golf ^_ �-2260% _Health CarelSenior Housing 2.26% I Industrial ! 226% Lodging 1 2.26%I Mobile H omefRV Park 2.06% Office - - ; 226% Restaurant i _ - --- 2.65% Retail 2.26% Self -Storage 2.20% Special Purpose -T 2.su 8.87%; 6.00% _4.64%i 9.37% 7.00% 14.76%j 8.23%I_4.86%j 15.26% 9.23% 10.06%1Y 6.55Y. .--- J 9.41% 6.30% 4.86% 10.56Y. 4.86% j 9.9W. 4.86%': 14.56% 7.55% 7.30% • 7.83•. 14.06%, 6.83% 1 11.96% ' 7.09% 926% 6A6%1^ 14.54Y. _ 7.87% f 4.66% t_MS/. 4.86Y.' 9.76Y.1--7.06% 525%', 15.04% &09% 8.87% 10.46% i 6.47%1 9.66Y. 7.36%1 4.88% 10.96Y. 7.47% 8.36% 4.88%{ 10.16Y. 16.16%1 8.30%! 6.05Y.! 17.49% j 8.72% All Properties 2.04% F 16.16% 7.01%J 4.64%; 1526% 7.88% •4th Mar to 2021 Dot* Copyright 2022 Rcsltoht-mcom" All property types had capitalization rates ranging from 2.04% to 16.16% percent with an average of 7.01 %. Considering the temporary nature of the easements, a capitalization rate of 7.75% will be applied for the subject property, and the recommended compensation for the temporary construction easement is calculated as follows: Value of Temporary Construction Easement 1: Land Value: x Overall Rate: Equals: Annual Rent: MonthsNear: Equals Monthly Rent: x 12 Months (Term of Temporary Construction Easement): Equals: Recommended Compensation (Temporary Construction Easement 1): $844 7.75% $65 12 $5 12 $65 22.0317.2 61 TOM PROPERTY ADvisORs REAL PROPERTY ANALYSTS, INC. DAMAGES/ENHANCEMENTS State law requires that enhancements to a remainder property in a condemnation acquisition be determined and used as an offset to any damages to the remainder property to calculate net damages. Improvements Damages The highest and best use, as vacant, is for residential use. Furthermore, the subject is improved with a single-family residence. Therefore, considering the highest and best use, as vacant, the improvements do contribute to property value above and beyond the value of the underlying land. Furthermore, an alternative use of the property would most likely not result in a higher value than the current use as a single family residence. Therefore, the continued operation of the existing residence results in the highest overall value considering the alternatives. In our opinion, the highest and best use of the site, as improved, is for continued use of the current residential improvements. The proposed acquisitions do damage the improvements as setback requirements will not be met from the new right-of-way. Additionally, the proposed right-of-way acquisition and temporary construction easement appear to encroach upon the improved portion of the subject. Thus, the highest and best use after the proposed acquisition is to raze the existing residence for redevelopment of the site with a residential use as demand warrants. 22.0317.2 62 TODD PROPERTY ADVISORS RE PROPER ANA Ts,[NC. COMPARABLE HOME SALES In order to estimate the damages from loss of the improvements, contributory value of the improvements will be estimated utilizing the following home comparables within the area. A map depicting the location of the sales in comparison to the subject property is located below. Ir e la '9 >s • 11 ID r Anna w wNne y� W wh"-SI 3 SPiings Park O 0) 9•] 3 <191 • . ]036 r Harlow • Elementary School® � i a as z J6fi Map Comparable Summary Map # Date of Sale Size (SF) Sales Price PSF 1 3/14/22 1,360 $73.90 2 12/21/21 1,356 $85.55 3 8/20121 1,323 $98.26 4 9/20/19 1,560 $96.79 © - 992 Subject 22.0317.2 63 PROPERTY IDENTIFICATION Location: Legal Description: 709 N Sherley Ave Anna, TX Henry Brantley Survey, Abstract 71 TRANSACTION DATA Grantor: William Chesser Jr. B Made Pinkston Grantee: Daniel Javier 8 Matthew Perez C Data of Sale: March 14, 2022 Recording Information: Doc #20220317000432590 Property Rights Conveyed: Fee Simple Estate ` Conditions of Sale: Anns Length Transaction Estimated Site Value PSF: Sales Price: $18,750 Total Estimated Site Value: Participant's Sale Tennis: Cash to Seller Contributory Sales Price: Cash Equivalent Price: $187.500 PHYSICAL CHARACTERISTICS Type of Construction: Wood Siding Gross Livable Area: Condition and Appearance: Good land Area: Year of Construction: 1950 Amenities Bedrooms/Bathrooms: 312 Driveway Garage: WA OF COMPARISON Sales Price PSF: Contributory Sales Price PSF: $137.87 $73.90 TODD PROPERTY ADVISORS REAL PROPERTY ANALYars, INC. $2.00 $87,000 $100,500 1,360 square feet 1.000 acres Shed Gravel Contact Person: Stacy Collinsworth Telephone Number: 469-952-0269 Position: Listing Agent COMMENTS This property is located along the west line of North Shedey Road, north of Fast First Street in Anna, Texas. 22.0317.2 64 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. OPERTY IDENTIFICATION Location: 805 N Powell Pkwy Anne, TX Legal Description: Henry Brantley Surrey, Abstract 71 kNSACTION DATA Grantor: Michael, Larry, & Thomas Montgomery �i Grantee: Joseph Mojamad & Nocole Lu Date of Sale: December 21, 2021 Recording Information: Doc #20220106000032240 Property Rights Conveyed: Fee Simple Estate Conditions of Sale: Arm's Length Transaction Estimated Site Value PSF: $2.60 Sales Price: $155,000 Total Estimated Site Value: $39,000 Participant's Sale Terms: Cash to Seller Contributory Sales Price: $116,000 Cash Equivalent Price: $155.000 YSICAL CHARACTERISTICS Type of Construction: Brick Gross Livable Area: 1,356 square feet Condition and Appearance: Good Land Area: 0.359 acres Year of Construction: 1946 Amenities NIA Bedrooms/Bathrooms: 311 Driveway Gravel Garage: WA OF COMPARISON Sales Price PSF: Contributory Sales Price PSF: $114.31 $85.55 Contact Person: David Montgomery Telephone Number: 214-5854063 Position: Seller/Agent MMENTS s property is located along the west line of Powell Parkway, north of Hackberry Lane in Anna, Texas. 22.0317.2 65 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. OPERTY IDENTIFICATION Location: 204 Worlham St Anna, TX Legal Description: Gwyn Morrison Survey, Abstract 559 ANSACTION DATA ■ - Grantor: Robbie Rollins Grantee: Cynthia Scibelli Date of Sale: August 20, 2021 Recording Information: Doe#20210823001699950 Property Rights Conveyed: Fee Simple Estate Conditions of Sale: Arms Length Transaction Estimated Site Value PSF: $2.50 Sales Price: $175,000 Total Estimated Site Value: S45,000 Participant's Sale Terms: Cash to Seller Contributory Sales Price: $130,000 Cash Equivalent Price: $175.000 YSICAL CHARACTERISTICS Type of Construction: Wood Siding Gross Livable Area: 1,323 square feet Condition and Appearance: Good Land Area: 0.410 acres Year of Construction: 1953 Amenities Fenced Yard Bedrooms/Bathrooms: 312 Driveway Greve] Garage: Carport ITS OF COMPARISON Sales Price PSF: $132.28 Contributory Sales Price PSF: $98.26 RIFICATION Contact Person: Mickey Cody Telephone Number: 972-987.3800 Position: Listing Agent property is located at the southwest comer of 5lh Street and Wortham Drive in Anna, Texas. 22.0317.2 66 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. COMPARABLE SALE NUMBER 4 }} PROPERTY IDENTIFICATION Location: 3122 CR 422 , Al Anna, TX Legal Description: G Stark Survey, Abstract 798 TRANSACTION DATA Grantor: James & Linda Garvey Grantee: James Penny Date of Sale: September 20, 2019 Recording Information: Doc #20190923001175690 Property Rights Conveyed: Fee Simple Estate Conditions of Sale: Arm's Length Transaction Sales Price: $216,000 Participant's Sale Terms: Cash to Seller Cash Equivalent Price: $216,000 PHYSICAL CHARACTERISTICS Type of Construction: Wood Siding Condition and Appearance: Good Year of Construction: 1959 Bedrooms/Bathrooms: 3l2 Garage: 2 Car Attached OF COMPARISON Sales Price PSF: Contributory Sales Price PSF: Estimated Site Value PSF: $1.50 Total Estimated Site Value: $65,000 Contributory Sales Price: $151,000 Gross Livable Area: 1,560 square feet Land Area: 1.000 acres Amenities WA Driveway Gravel $138.46 $96.79 Contact Person: Lisa Biddle Telephone Number: 972-333-0301 Positlon: Usting Agent :OMMENTS Phis property is coated along the west line of County Road 422, north of Foster Crossing in Anna. Texas. 22.0317.2 67 TODD PROPERTY ADVISORS REAL PROPERTY ANALVsrs, INC. HOME SALES ANALYSIS The process of comparing similar market sales to the subject property is fundamental to the sales comparison approach, and usually provides the most credible and reliable indication of value. If a comparable property has an element of comparison that is superior to the subject property, a downward adjustment is made to the comparable sale. If the element of comparison is inferior, then an upward adjustment is made. The adjustment process is not an exact science. Experience, knowledge and objectivity are required on the part of the appraiser for the application of the appropriate level of adjustment. Competent analysis leads us to a narrow range of variance among the adjusted comparable sales, and to a high degree of confidence in reconciliation. The analyses of the adjustments we considered relevant are found in the following paragraphs. Summary of Comparable Sales Adjusted Contributory Sale Location Date Year BRI GLA Amenities Sales Sales No. Address of Sale Built BT SF Price PSF Price PSF 1 709 N Shedey Ave March 14, 2022 1950 3/2 1,360 Shed $137.87 $73.90 Anna, TX 2 805 N Powell Pkwy December 21, 2021 1946 311 1,356 N/A $114.31 $85.55 Anna, TX 3 204 Wortham St August 20, 2021 1953 3/2 1,323 Fenced Yard $132.28 $98.26 Anna, TX 4 3122 CR 422 September 20, 2019 1959 312 1,560 N/A $138.46 $96.79 Anna, TX Subject: 510 Hackberry Ln - 1940 2/1 992 Shed - - Anna, TX Financing Terms All of the comparable land sales were consummated with the sellers effectively receiving cash in exchange for their consideration in the property; therefore, no adjustments were required for advantageous seller financing. Property Rights Conveyed This adjustment involves the type of real property interest that is conveyed in a sales transaction. All of the comparable transactions conveyed fee simple ownership rights; thus, no adjustments were required for this factor. Conditions of Sale Adjustments for this item usually reflect the motivation of the buyer and seller involved with a transaction. Adjustments would be necessary for transactions where the seller wants to quickly liquidate his assets or where there is an atypical financial, business, friend or family relationship 22.0317.2 68 TODD PROPERTY ADvisORs REAL PROPERTY ANALYSTS, iNc. between the principals involved which affect the selling price of the property. All of the Comparables had similar conditions of sale to that of the subject and will not be adjusted. Expenditures After Sale This adjustment accounts for any expenses the purchaser of the property occurs immediately after the purchase of the property. Some examples of these items could include environmental clean-up, demolition costs, deferred maintenance, HVAC replacement/repair, renovations, parking lot repair/replacement, cosmetic upgrades, etc... Adjustments for this item usually reflect the motivation of the buyer and seller involved with a transaction. Adjustments would be necessary for transactions where the buyer is aware that such expenditures after the sale must occur in order to operate the property sufficiently. Any necessary adjustments for Expenditures After Sale have been made within the individual Comparable write-ups. Therefore, no further adjustments are necessary. Market Conditions This adjustment is generally made after the other transactional adjustments have been made (property rights conveyed, financing, conditions of sale, and expenditures after sale). This adjustment addresses potentially differing market conditions between the subject property (date of appraisal), and the sales dates of the Comparables. As a test, the sales adjusted prices when compared to the subject were chronologically arrayed by sale date and only adjusted for the appropriate physical conditions in order to determine if adjustments for changing market conditions is warranted. The table below depicts the Price/Sq. Ft. for each comparable which has been adjusted for the other transactional adjustments (property rights conveyed, financing, conditions of sale, and expenditures after sale). The % Physical Adjustment column indicates the total adjustments made for all physical characteristics (location, size, corner, utilities, topography zoning, flood plain, etc.) as shown in the adjustment grid at the conclusion of this section of the report. The Adjusted Price/Sq. Ft. is calculated by applying the % Physical Adjustment for each sale to its Price/Sq. Ft. By analyzing the comparable sales adjusted prices per square foot after all other adjustments have been made, trends in land prices over the time period may become apparent. However, given the small sample size, the appraisers' judgment is also relied upon based upon knowledge gained from experience in the market over this time period. 22.0317.2 69 TODD PROPERTY ADVISORS REAL PaOPEm AmLYsrs, INC. Market Conditions Comparison Comparable Number Date of Sale Unadjusted Price/Sq. Ft.* Physical % Adjustment Adjusted Price/Sq. Ft. Comparable 1 March 14, 2022 $73.90 2% $75.38 Comparable 2 December 21, 2021 $85.55 7% $91.54 Comparable 3 August 20, 2021 $98.26 -8% $90.40 Comparable 4 September 20, 2019 $96.79 -12% $85.18 'Inclusive of any necessary transactional adjustments In closely analyzing the market Comparables, there appears to bean upward trend in sales prices. Additionally, market participants indicate that market conditions have been improving for this property type. Therefore, each Comparable will be adjusted upwards by 5 percent per year. This is subject to the COVID-19 statement discussed previously in this report. Therefore, in our opinion, the market conditions adjustments are considered reasonable. Location The axiom that "location is the most important physical characteristic of real estate" suggests that this component warrants paramount consideration in the adjustment process. Therefore, the locations of the Comparables are the first of the physical characteristics to be considered. The sales researched and included herein involve properties with similar highest and best uses as that of the subject. The subject property is physically located along the north line of Hackberry Lane, West of Powell Parkway in Anna, Texas. Comparables 1, 2, and 3 are located in similar areas of development and along similar residential roadways as the subject. Therefore, Comparable 1, 2, and 3 will not be adjusted. Comparable 4 is located in a more rural area of the City of Anna and will be adjusted upward 5 percent. Aae/Condition The subject improvements have an effective age of 35 years. As with any asset, as the useful life decreases, the value follows. The Comparables were compared to the subject property based upon their respective effective ages. The difference in the age of the improvements was divided by their effective life (50 years) in order to determine the difference in the useful life of the rents 22.0317.2 70 TODD PROPERTY ADVISORS REAL PROPERLY ANALYSTS, INC. vis-a-vis the subject property. The following calculations were done to arrive at a percentage adjustment for differences in the effective ages of the Comparables and the subject property. Adjustment for Age/Condition of the Improvements Comparable Number Comparable Eff. Age (CA) Subject Eff. Age (SA) Age Difference (CASA=AD) Econ. % Life (Yrs) Difference (EL) (AD+EL=PD) %Attributable to Building (PAB) Indicated Adjustment (PD x PAB - LA) Comparable 1 35 35 0 50 0.00% 100% 0% Comparable 2 35 35 0 50 0.00% 100% 0% Comparable 3 30 35 -5 50 -10.00% 100% -10% Comparable 4 25 35 -10 50 -20.00% 100% .20% Quality of Construction The subject building is constructed of a wood frame, wood paneling exterior walls, with a pitched composition shingle roof. All of the Comparables have similar qualities of construction to the subject and will not be adjusted. Amenities The next consideration is for amenities. The subject has a shed. Comparable 1 has a shed like the subject and will not be adjusted. Comparable 3 does not have a shed but does have a fenced yard. Overall, Comparable 3 is considered similar to the subject and will not be adjusted. Comparables 2 and 4 have inferior amenities to the subject and will be adjusted upward 5 percent. Size The subject has an improvement size of 992 square feet. Typically, smaller improvements sell for more per unit than larger improvements. In reviewing market trends and the data set, the market appears to recognize a difference in price for properties substantially different in size. A market observation witnessed throughout the Texas market area and most metropolitan areas in the southwest supports an adjustment of 5 to 15 percent for each halving/doubling in size. In this instance a 5 percent adjustment for each halving/doubling in size will be utilized. 22.0317.2 71 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. Indicated Size Adjustments with a 5% Adjustment per Doubling / Halving Variance of Comp Indicated Adjustment from Subject Range 0% - 25% 0.00% - 1.25% 25% - 50% 1.25% - 2.50% rn 50% - 100% 2.50% - 5.00% 100% - 200% 5.00% - 7.50% 200% - 300% 7.50% - 10.00% 300% - 500% 10.00% - 12,50% 0% - 25% 0.00% - -2.50% 25% - 50% -2.50% - -5.00% m m 50% - 75% -5.00% - -10.00% 75% - more than -10.00% - ormore The following table illustrates the size adjustments based upon a market derived 5 percent adjustment per each doubling/halving in size for the home market in the vicinity. Adjustment for Size Comparable Number Comparable Size (SF) Subject Size (SF) % Difference In Size Adj. Per Halving/Doubling Indicated Adjustment Comparable 1 1,360 992 37% 5% 2% Comparable 1,356 992 37% 5% 2% Comparable 3 1.323 992 33% 5% 2% Comparable 1,560 992 57% 5% 3% Garage The next consideration is for the presence of a garage. The subject does not have a garage. Comparables 1, 2, and 3 do not have garages like the subject and will not be adjusted. Comparable 4 has a garage and will be adjusted downward 5 percent. 22.0317.2 72 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. CONCLUSION OF LAND VALUE Located below is an adjustment grid for the subject, followed by the range, mean (average), and standard deviation of the adjusted contributory sales prices per square foot. Adjustment Grid for Comparable Sales Sale Number 1 2 3 4 Sales Price/SF $73.90 $85.55 $98.26 $96.79 Financing Terms 0.00 0.00 0.00 0.00 Property Rights Conveyed 0.00 0.00 0.00 0.00 Conditions of Sale 0.00 0.00 0.00 0.00 Expenditures After Sale 0.00 0.00 0.00 0.00 Market Conditions 1.48 2.57 4.91 13.55 Conditions Adj. Price/SF $75.38 $88.12 $103.17 $110.34 Location 0% 0% 0% 5% Age/Condition 0% 0% -10% -20% Quality of Construction 0% 0% 0% 0% Amenities 0% 5% 0% 5% Size 2% 2% 2% 3% Garage 0% 0% 0% -5% Total Adjustment 2% 7% -8% -12% Adjusted Price/SF $76.89 $94.29 $94.92 $97.10 $/S F Range Mean (Average) Standard Deviation All Data $76.89 - $97.10 $90.80 $9.35 Data Without High and Low Extremes $94.29 - $94.92 $94.61 $0.45 Data with Absolute Adjustments < 15% $76.89 - $94.92 $88.70 $10.23 22.0317.2 73 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. All of the Comparables had a mean of $90.80 per square foot, while the mean of data without high and low extremes is $94.61 per square foot, and the data with the least absolute adjustments (<= 15%) had a mean of $88.70 per square foot. Therefore, considering the foregoing analysis, a contributory value opinion of $90.00 per square foot is considered to be reasonable for the subject. Thus, the contributory value of the improvements is as follows: 992 square feet x $90.00/SF = $89,280 Rounded to: $90,000 COSTS TO CURE Costs to cure involve the contributory value of the site improvements acquired and costs to relocate site improvements which can be salvaged. As discussed previously, the highest and best use after the proposed acquisition is to raze the existing residence for redevelopment of the site with a residential use as demand warrants. Therefore, demolition costs will be estimated. According to our research of building demolition costs as provided by various demolition companies and publications such as Riders Digest and Marshall & Swift, the cost to raze similar buildings range from $2.00 to $10.00 per square foot depending on the type of construction. The demolition costs for brick veneer buildings typically range from $2.00 to $5.00 per square foot, while demolition costs for higher technology construction can range up to $10.00 per square foot. The following demolition cost comparables indicate a range of demolition costs of $2.75 to $18.36 per square foot. The size and type of construction of the building can significantly impact the cost per square foot. Demolition Cost Comparables No. Location Building Size Building Type Year Built Construction Demo Cost/SF la Dallas 52,600 Auto repair/Office 1953/1960/1975 Steel Frame/Conc. Block $7.73 * lb Dallas 52,600 Auto repair/Office 1953/1960/1975 Steel Frame/Conc. Block $5.93 2a Dallas 43,845 Office 1956/1969 Concrete $9.44 * 2b Dallas 43,845 Office 1956/1969 Concrete $5.02 2c Dallas 43,845 Office 1956/1970 Concrete $2.75 3 Dallas 17,748 Church 1970 Wood Frame $3.94 4 Dallas 4,803 Med. Office/Rest. 1950's/1960's Conc. Block/Brick $18.36 5 Richardson 2,400 Restaurant 1960's Conc. Block/Brick $5.00 6 Amarillo 8,571 Retail Center 1963 Concrete/Brick $3.04 * Included Asbestos Abatement Given the wood siding residential construction of the improvements, a demolition cost estimate near the low end of the range of comparables or $3.00 per square foot is likely. Therefore, the demolition cost estimate of the single-family residence equals $2,976. Furthermore, based upon aerial measurements, the shed is estimated to comprise approximately 200 square feet, which would equal demolition costs of $600. Therefore, the total cost to cure is estimated to be $3,576. 22.0317.2 74 TODD PROPERTY AwsORs REAL PROPERTY ANALYSTS, iNc. Opinions of Recommended Compensation Value of the Whole Property: Value of the Part Acquired (0.080 Acre Right -Of -Way): Remainder Before Acquisition: Remainder After Acquisition: Enhancements: Damages: Cost to Cure: Value of the Part Acquired (0.080 Acre Right -Of -Way): Recommended Compensation (0.009 Acre TCE): Total Recommended Compensation: $134,843 $3,686 $1319157 $131,157 $0 $90,000 $3,576 $3,686 $65 $97,327 22.0317.2 75 SECTION A - CERTIFICATION & ASSUMPTIONS & LIMITING CONDITIONS TODD PROPERTY ADvisoRs REAL PROPERTY ANALYSTS, INC. CERTIFICATION The undersigned hereby certifies that, to the best of their knowledge and belief: 1) The statements of fact contained in this report are true and correct. 2) The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are the personal, impartial unbiased professional analyses, opinions, and conclusions of the undersigned. 3) Neither the undersigned, nor any associate of the appraiser, have any present or prospective interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved. 4) The undersigned have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5) The engagement of the undersigned in this assignment was not contingent upon developing or reporting predetermined results. 6) All analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 7) All analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with Title A of the Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and its regulations; in conformity with the Interagency Appraisal and Evaluation guidelines issued by the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervisions (OTS), and the National Credit Union Administration (NCUA) on December 2, 2010. 8) The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 9) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10) No one provided significant real property appraisal assistance in the preparation of this appraisal report to the person(s) signing this certification. 11) As of the date of this report, Mitchell B. Todd, MAI and Michael A. Keane, MAI have completed the continuing education program for Designated Members of The Appraisal Institute. 12) The undersigned's compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 22.0317.2 77 TODD PROPERTY ADvisORs REAL PROPERTY ANALYSTS, INC. 13) The appraisal report was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 14) Neither the undersigned nor any associate of the appraisers considered race, color, religion, sex, national origin, handicap, or familial status in determining the value of the subject property. 15) Todd Property Advisors, and Mitchell B. Todd, MAI, Michael A. Keane, MAI, and Jonathan D. Martin have rendered no services as an appraiser or in any other capacity regarding this property within the three-year period immediately preceding acceptance of this assignment. 16) Michael A. Keane, MAI and Jonathan D. Martin made a personal inspection of the property that is the subject of this report on July 21, 2022. Mitchell B. Todd, MAI did not conduct a physical inspection of the property. 17) In our opinion, and after careful consideration of the various factors entering into this appraisal, the following illustrates the "as is" market value for the subject property and the recommended compensation as of the effective date of appraisal, July 21, 2022: Opinions of Recommended Compensation Value of the Whole Property: $134,843 Value of the Part Acquired (0.080 Acre Right -Of -Way): $39686 Remainder Before Acquisition: $131,157 Remainder After Acquisition: $131,157 Enhancements: $0 Damages: $90,000 Cost to Cure: $39576 Value of the Part Acquired (0.080 Acre Right -Of -Way): $39686 Recommended Compensation (0.009 Acre TCE): $65 Total Recommended Compensation: $979327 18) Extraordinary Assumption: An extraordinary assumption has been made that the acquisitions by the City of Anna will not permanently limit ingress/egress to and from the subject property. The use of this assumption could affect the results of this assignment and if found to be incorrect could necessitate re -analysis. 22.0317.2 78 Respectfully submitted, Mitchell B. Todd, MAI President State Certification #TX-1323514-G mitch�414 ellll@t'o1ddppa.com Jonathan D. Martin Appraisal Associate State Certification #TX-1381200-G jonathan@toddpa.com TODD PROPERTY ADVISORS RMPROPER ARAL s,IRc. n/C ""/- Michael A. Keane, MAI Senior Vice President State Certification #TX-1380384-G michael@toddpa.com 22.0317.2 79 TODD PROPERTY ADVISORS REAL. PROPERTY ANALYSTS, INC. ASSUMPTIONS AND LIMITING CONDITIONS 1) No responsibility is assumed for matters legal in character or nature, nor matters of survey, nor of any architectural, structural, mechanical or engineering nature. No opinion is rendered as to the title of the subject property, which is presumed to be good and marketable. The legal description is assumed to be correct as used in this report. 2) The property is appraised as though free and clear of any or all liens or encumbrances unless stated. 3) The property is assumed to be under responsible ownership and competent management. 4) The appraisers have not independently verified all of the information furnished or assumptions made with respect to the appraisal unless otherwise indicated and therefore is not responsible for their content or their effect on the market value of the property. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5) All engineering is assumed to be correct. The maps or other illustrative materials included in this report are intended only to depict spatial relationships. They are not measured surveys nor measured maps, and the appraiser is not responsible for cartographic or surveying errors. Dimensions and areas of the subject property and of the comparables were obtained by various means and are not guaranteed to be exact. 6) The appraisal Is based on there being no hidden, unapparent, or apparent conditions of the property site, subsoil, or structures or toxic materials which would render it more or less valuable. No responsibility is assumed for any such conditions or for any expertise or engineering to discover them. 7) The appraisal is based on the premise that there is full compliance with all applicable federal, state and local environmental regulations and laws unless otherwise stated in this report. 8) This appraisal is based on the assumption that all applicable zoning, building, and use restrictions for all types have been complied with, unless a nonconformity has been stated, defined, and considered in report. 9) The assumption has been made that all required licenses, consents, permits or other legislative or administrative authority, local, state, federal and/or private entity or organization have been or can be obtained or renewed for any use considered in the value estimate. 10) Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraiser become aware of such during the appraiser's inspection. The appraisers have no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraisers, however, are not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde, foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is not such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in the field of environmental impacts upon real estate if so desired. 11) This appraisal is based on the assumption that the use of the land and improvements is within the boundaries of the subject property and there is no trespass or encroachment unless otherwise noted in the report. 12) The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 13) Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for other than its intended use. The Bylaws and Regulations of the Appraisal Institute require each Member and Candidate to control the use and distribution of each appraisal report signed by such Member or Candidate; this appraisal report shall not be given to third parties without the prior written consent of the signatory of this appraisal report. Neither all nor any part of this appraisal report shall be disseminated to the general public by use of advertising media, public relations, news, sales or other media for public communication without the prior written consent of the appraisers. 22.0317.2 80 TODD PROPERTY ADVISORS REAL PROPERTY ANALYsTs, INC. 14) The appraisers are not obligated to provide any other services, including but not limited to, testimony in court or before any other body charged with interpretation of enforcement of the appraisal. 15) No portion of the appraisal may be reproduced in whole or in part without the prior written consent of the appraisers. The validity of the appraisal is expressly conditioned upon consideration of its entirety. 16) Due to the nature of real estate valuation and the complexities of external and internal factors which dictate the market value of any real estate, and the rapid changes and fluctuations with respect to the valuation of real estate, the opinion of the appraisers set forth in the appraisal concerning the market value of the property is reliable as of the effective date and should not be considered as reliable at any time thereafter. 17) The appraisers make no guarantee or warranty, whether implied or expressed, concerning the market value set forth in the appraisal. The appraisal merely sets forth the appraisers opinion of such market value based upon Information obtained by the appraisers and assumptions made by the appraisers with respect to the property. 18) The appraisers assume no responsibility for any costs or consequences arising due to the need, or the lack of need for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for flood hazard insurance. 19) Subsurface Rights (minerals and oil) were not considered in this appraisal unless otherwise specifically stated. 20) The State of Texas does not have full disclosure laws regarding real estate transactions. Therefore, the appraisers necessarily confirmed all sales and rental comparables with brokers, property managers, mortgage brokers, grantors, grantees and other parties familiar with the transaction. The appraiser's data Is limited by the accuracy of the information supplied by the aforementioned individuals. Whenever possible, the information was verified by county records. 21) The value conclusion within this report is contingent upon the site being in full compliance with city codes, and that no contamination has occurred at the site. A Phase I Environmental Study was not provided, and the appraisers accept no responsibility as to the current status of property with respect to environmental contaminants. It is recommended that if a Phase I study has not been performed, that an expert in this field be engaged to identify any hazardous materials and substances existing on the property. 22) It is assumed there Is full compliance with all requirements of Title III, of the Americans with Disabilities Act (ADA) which became effective January 26, 1992 unless non-compliance is stated, defined, and considered in the appraisal report. No responsibility is assumed by the appraisers for any such conditions, or for any expertise or architectural/design knowledge and cost required to identify such non-compliance. 23) As used in professional appraisal practice the term "inspection" is "a personal observation of the exterior and/or interior of the real property that is the subject of an assignment. The purpose of an appraiser's inspection is to identify the property characteristics that are relevant to the assignment, such as amenities, general physical condition, and functional utility." Inspection is considered a term of art in the appraisal profession and does not have the same meaning as it might have in other professions such as engineering or architecture or in other design or construction related professions. Additionally, it does not infer any obligation to investigate. 24) Extraordinary Assumption: An extraordinary assumption has been made that the acquisitions by the City of Anna will not permanently limit ingresslegress to and from the subject property. The use of this assumption could affect the results of this assignment and if found to be incorrect could necessitate re -analysis. 22.0317.2 81 SECTION A. -:ADDENDUM QUALIFICATIONS OF MITCHELL B. TODD, MAI EXPERIENCE 1 /94 to Present President — Todd Property Advisors, Real Property Analysts, Inc.; Dallas, Texas 7/92 to 1/94 Vice President - Beer -Wells -Vaughan, Commercial Property Analysts; Dallas, Texas 6/86 to 7/92 Vice President - Noyd & O'Connell, Inc.; Real Estate Appraisers & Consultants; Dallas, Texas (2190-7192); Houston, Texas (6/86-1 /90) During Mr. Todd's tenure as a real estate appraiser, he has prepared numerous valuations on a variety of high profile and complex income producing real estate developments. Additionally, Mr. Todd has been involved in the valuation of numerous single family and multi -family residential properties during his career. These assignments required analytical, communication, and problem -solving skills which Mr. Todd has continually enhanced since his inception into the profession. During the last several years, as the Dallas/Fort Worth residential market has expanded and mortgage interest rates have been at attractive levels, Mr. Todd has gained significant experience in the appraisal of single family residential properties for the purpose of obtaining mortgage financing. Some of the more complex assignments in which Mr. Todd has completed appraisals involve numerous parcels assembled by the City of Dallas for the American Airlines Center and the new performing arts center in the Arts District; Reunion Arena and adjacent parking facilities, The Grand Hotel and the Mercantile Complex in the Dallas CBD; the proposed Bank One Building in the Fort Worth CBD; the Hughes Aircraft Facility in Las Cruces, New Mexico; the Stephens Graphics Manufacturing Facility in Dallas, Texas; the Radisson Inn Tulsa Airport in Tulsa, Oklahoma, the Trophy Club Development (all remaining lots, acreage, and disputed acreage) of Denton County, Texas; the Eldorado Subdivision (all remaining lots and acreage) in McKinney, Texas; the Stonebriar Community Church in Frisco, Texas; the Trinity Terrace Retirement Center in Fort Worth, Texas; the San Antonio Savings Association Headquarters Building in San Antonio, Texas and numerous portfolios of credit tenant retail projects, office buildings, charter schools, full service carwashes and extended stay lodging facilities across Texas and the United States. PROFESSIONAL LICENSE AND AFFILIATIONS Designated member of The Appraisal Institute - MAI #9379. State Certified General Real Estate Appraiser Texas Certificate # TX-1323514-G Oklahoma Certificate # 1287CGA Arkansas Certificate # CG3379 Registered Property Tax Consultant, State of Texas (Registration #00002555). Licensed Broker by the Texas Real Estate Commission (License #0364803) Member - Society of Texas A&M Real Estate Professionals EDUCATION Master's Degree - Land Economics and Real Estate, Texas A&M University, 1986. Bachelor of Science Degree - Agricultural Economics, Texas A&M University,1984. The Land Economics and Real Estate curriculum at Texas A&M University is one of only three degree programs in the United States which have been sanctioned by The Appraisal Institute for post -graduate studies in commercial real estate appraisal. During his pursuit of the Master's degree, Mr. Todd served as a graduate teaching assistant for several undergraduate courses, including real estate appraisal curriculum. Mr. Todd received the Master's degree in May 1986. Prior to his post -graduate studies, Mr. Todd received a Bachelor of Science Degree in December 1984, graduating with Magna Cum Laude honors. The Appraisal Institute courses completed by Mr. Todd include: Standards of Professional Appraisal Practice, Principles of Appraisal, Basic Valuation, Capitalization Theory - Part A, Capitalization Theory - Part B, Case Studies in Real Estate Valuation, Report Writing and Valuation Analysis, and received a passing grade on both the Comprehensive Examination and the Demonstration Report. Mr. Todd was awarded the designation of MAI in May 1992. The Appraisal Institute conducts a program of continuing professional education for its designated members. MAI and SRA members who meet the minimum standards of the program are awarded periodic educational certification. Mr. Todd is currently certified under this program. Mr. Todd serves on the Region 8 Ethics and Counseling Regional Panel of the Appraisal Institute. Other college level real estate courses and seminars completed by Mr. Todd include: Real Estate Development Analysis, Real Property Valuation, Building Construction Practices, Rural Real Estate Appraisal, Understanding Limited Appraisals and Reporting Options, ASB Informational Meeting, and Texas Property Tax Law. TALCB TEXAS APPRAISER LICENSING 8 CERTIFICATION BOARD Certified General Real Estate Appraiser Appraiser: Mitchell Brian Todd License #: TX 1323514 G License Expires: 08/31/2022 Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser Chelsea Buchholtz For additional information or to file a complaint please contact TALCB commissioner at www.talcb.texas.gov. QUALIFICATIONS OF MICHAEL A. KEANE, MAI EXPERIENCE 8/15 — Present Senior Vice President — Todd Property Advisors, Real Property Analysts, Inc.; Frisco, Texas 10/12 — 8/15 Senior Appraiser — Todd Property Advisors, Real Property Analysts, Inc.; Frisco, Texas 10/09 —10/12 Appraisal Associate — Beer -Wells -Todd, Real Property Analysts, Inc.; Frisco, Texas During Michael's tenure as a real estate appraiser and appraisal research assistant, he has assisted in the preparation and market research for numerous valuations on a variety of commercial real estate developments. These properties consisted of various single and multiple tenant industrial, general office, medical office, and retail facilities as well as residential subdivision developments, multifamily developments, and user specific and special purpose properties such as automotive repair/service, full and self -serve car wash facilities, airplane hangars, fixed base operations, flight schools, marinas, ice skating rinks, and bill board properties. Michael has also appraised properties for eminent domain/partial taking purposes. Michael's responsibilities involve performing property inspections as well as analyzing market trends, collecting and analyzing market data, analyzing subject property income and expense information, estimating reproduction costs and depreciation as well as utilizing all aforementioned data to perform real property appraisals. PROFESSIONAL LICENSE AND AFFILIATIONS Designated Member of The Appraisal Institute - MAI State Certified General Real Estate Appraiser Texas Certificate # TX-1380384-G EDUCATION Master's Degree - Land Economics and Real Estate - Texas A&M University, 2008 Bachelor of Science Degree — Sport Management - Texas A&M University, 2007. Minor in Business Administration The Land Economics and Real Estate curriculum at Texas A&M University is one of only three degree programs in the United States which have been sanctioned by The Appraisal Institute for post -graduate studies in commercial real estate appraisal. During his pursuit of the Master's degree, Michael completed various real estate and financial oriented courses including Real Property Valuation I & II, Real Property Finance, Real Estate Development, Financing Real Estate Investments, Money and Capital Markets, and Commercial Real Estate Law. Michael received the Master's degree in December 2008. Prior to his post -graduate studies, Michael received a Bachelor of Science Degree in August 2007. Texas Appraiser Licensing and Certification Board certified courses completed by Michael include: Appraisal Principles, Appraisal Procedures, Sales Comparison Approach, Income Approach Parts 1 & 2, Finance Statistics and Valuation Modeling, Site Valuation and Cost Approach, Business Practices and Ethics, and Uniform Standards of Professional Appraisal Practice receiving a passing grade on all course examinations. TALCB TEXAS APPRAISER LICENSING & CERTIFICATION BOARD Certified General Real Estate Appraiser Appraiser: MICHAEL ANDREW KEANE License #: TX 1380384 G License Expires: 11/30/2022 Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser ChelseaBuchholtz For additional information or to file a complaint please contact TALCB Commissioner at www.taicb.texas.gov. Certified General TALCB Real Estate Appraiser TEXAS APPRAISER LICENSING & CERTIFICATION BOARD Appraiser: Jonathan David Martin License #: TX 1381200 G License Expires: 06/30/2024 Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser Ce ���-- Chelsea Buchholtz For additional information or to file a complaint please contact TALCB commissioner at www.talcb.texas.gov. JIMMY & TERRY GILLARD VOL 1682, PG. 693 0.50 ACRES I 0.009 ACRE (375 S.F.) CITY OF ANNA INST. NO. 20101OG5001068790 Approximately 1,947 SF of prescriptive right of way in use. 4CK951111 W REMOVE EXISTING 16" C. M. P. 1/2' I.R.S. PROPOSED ROW HENRY BRAT TLEY SURVEY ABSTRACT 071 NOTES: a L BEARINGS AND DISTANCES CITED IN THIS PLAT DESCRIPTION ARE BASED ON THE TEXAS STATE 333£ PLANE COORDINATE SYSTEM, NAD-83, TEXAS NORTH CENTRAL ZONE 4202. I 2. FIELD SURVEYS CONCLUDED ON 07/08/2021. v 3. 1/2' I.R.S. = 1/2' IRON ROD SET WITH YELLOW CAP STAMPED 'BHC' 3 4. A FIELD NOTE DESCRIPTION OF EVEN DATE HHEREWRH ACCOMPANIES THIS EXHIBIT. I — (),; I, A86'MVV POINT OF 2L RANCH, LLC-RED BARN SERIES INST. NO. 20171206001610990 CALLED 7.7869 ACRES JAMES P. & SPOUSE, LORI V. RNERA TRACT i INST. NO, 200BOB010DO936340 PROPOSED ROW —1/2' I.R.S. nI I EXHIBIT "AT' I V 1 I PAGE 3 OF 3 ,j�VI I JAMES & LORI RNERA R 00BOTPAC2 INST. N0. 20080801000936340 R SAW MARTIN, DONNA MARTIN, & NELDA I STANLEY i INST. NO. 20190530000609730 ROW REFERENCE N84'13'25'W - — SS09J8'1Y REFERENCE BEARING N8725'42W - 389.58' 471e' --tom- - -- 1/2' I.R.F.— , _ P R E L I M I N A R Y 40.0 NTHIS DOCUMENT NOT BE EOFOR ANY PURPOSE AND SHALL NOTT BE BE USED OR VIEWED OR RELIED UPON AS A FINAL SURVEY DOCUMENT. GARY C. HENDRICKS, R.P.LS. 1 INCH = 40 FEET NO. 5073 DATE DECEMBER 2021 SLATER HOLLOW PHASE I LOT 7A & 88 VOL 6, PG. 27 1/2' I.R.F.J